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DKSH’s D-Pack system optimizes packing and minimizes environmental impact

DKSH’s D-Pack delivery cube is an innovative packing system that helps the environment by minimizing the usage of plastic and reducing waste in the packing and distribution process. It also optimizes material usage and provides protection for goods stored inside the box.

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Business Units

Healthcare

Business Lines

OTC and Consumer Health, Pharmaceuticals

Services

Distribution and logistics

Markets

Thailand

Challenge

Previously, when transporting certain goods, we used storage boxes with fixed dimensions that resulted in unused space inside each box. We then had to use plastic air pouches to fill up the void space inside. As the inner cubic volumes were not fully optimized, it had impacted DKSH’s transportation costs.

Using the standard size boxes previously, less boxes were able to be transported on each trip. As warehouse processes are often labor intensive with complex processes involved, we felt that there was a potential to improve on this and better streamline the process.

Approach

To better optimize the void space inside the storage box, we initiated the use of D-Pack as an innovative packing machine. The D-Pack packing system features an innovative machine that scans and identifies the maximum height for the products to fit into the box and proceeds to use that information to automatically close and seal the storage box.

This ensures that there is no void space and eliminates the need for air pouches. The information is then processed through sensors to map the designated transport route of the boxes by automatically affixing forwarding labels on the same box.

Result

With the inner cubic volumes fully optimized, the transportation fleet can carry more boxes thereby increasing the transport load utilization for each vehicle. Better space utilization leads to reduced operating space and, of course, a reduction in the carbon footprint of our logistics and transport services.

As the D-Pack enables higher fulfillment velocity, it helps to improve business productivity. When compared to the previous practice, the output of the packing machine is twice as faster compared to manual packing.

This is an important automation project for DKSH in Thailand as we are moving away from being a labor-intensive warehouse services provider. With these latest technologies, we want to make our warehouses less complex, leaner and more efficient. This also greatly helps the environment, reduce our customers’ carbon footprint and, importantly, provide better quality healthcare services to patients in Thailand.

John Clare, Vice President Healthcare, Thailand and Indochina

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