Maximizing Fulfillment Efficiency: The Benefits of Pairing ASRS/GTP Systems with Automated Packaging

By Cameron Stout

In today’s fulfillment landscape, speed, accuracy, and sustainability are no longer optional — they are essential. As e-commerce demand continues to rise and consumers push for same-day or next-day delivery, distribution centers must seek smarter ways to optimize operations. Strategically pairing Automated Storage and Retrieval Systems (ASRS) and Goods-to-Person (GTP) technologies with On Demand Packaging® solutions can completely transform how orders move from picking to outbound shipping.

The Role of ASRS and GTP in Modern Fulfillment

ASRS (Automated Storage and Retrieval Systems) and GTP (Goods to person) systems are engineered to eliminate inefficiencies in traditional warehouse picking operations. With ASRS, items are automatically retrieved from storage and brought to an operator or packing station, eliminating the need for workers to walk through the aisles. GTP systems build on this by intelligently directing items to workers, allowing them to pick and pack faster with far less movement.

Key benefits include:

• Maximized storage density

• Reduced labor requirements

• Increased picking speed

• Greater inventory accuracy

Maximizing Competitive Advantage With Right-Sized Packaging On Demand®

While ASRS and GTP technologies optimize how items are picked, On- Demand Packaging revolutionizes how those items are packaged.

Traditional packaging relies on pre-stocked box sizes, often resulting in oversized boxes, excess void fill, and higher dimensional weight (DIM) shipping charges. Automated packaging technology solves this with on-demand, right-sized boxes created in real time for each order’s specific dimensions.

Benefits of Integrating an Automated Packaging Solution

Elimination of excess packaging materials:

Automated packaging systems precisely measure and tailor packaging to fit each product, reducing (and often eliminating) the need for void fillers and reducing the size of boxes by an average of 40%. This eliminates waste by ensuring that only the necessary amount of packaging material is used. By minimizing excess materials, companies can lower supply costs and streamline inventory management.

Reduced DIM weight shipping costs:

One of the ways shipping carriers calculate rates is based on dimensional (DIM) weight, which considers the size of a package as well as its actual weight. Automated packaging creates smaller, right-sized boxes, helping to minimize package dimensions. As a result, businesses can significantly reduce shipping costs by avoiding charges for wasted space.

Smaller, more efficient packages:

Through automation, packages are designed to fit products snugly, maximizing space efficiency throughout the supply chain. This not only allows more packages to fit on delivery trucks and opens up warehouse storage space, but it also leads to fewer damages during transit due to reduced product movement within the box. Overall, right-sized packaging automation improves operational efficiency and lowers transportation and warehousing costs.

Improved customer unboxing experience:

Customers appreciate receiving packages that are easy to open and free from excess materials. Automated packaging ensures a cleaner and more professional presentation, enhancing the overall brand image. Plus, right-sizing reduces the chance of damaging products during transit, ensuring they make it to the final customer in one piece.  

Reduced environmental impact:

Using less packaging material translates to fewer resources consumed and less waste generated. Automated packaging supports sustainability by cutting down on cardboard, plastic, and filler usage, as well as reducing the overall carbon footprint from shipping smaller, lighter packages. This aligns with growing consumer demand for environmentally responsible business practices, and in some states and countrie helps meet new legislative requirements around sustainability in packaging.  

Packaging Labor Reduction:

Automation streamlines the packaging process, reducing the need for manual labor and repetitive tasks. This allows employees to be reallocated to higher-value activities, improving overall productivity and increasing employee satisfaction. Additionally, it lowers labor costs, minimizes human error, and helps businesses scale efficiently during periods of high demand.

The Power of Integration: ASRS/GTP + Packaging Automation

Pairing ASRS and GTP systems with automated packaging creates a streamlined, high-efficiency fulfillment process—moving orders seamlessly from storage and picking to right-sized packaging and outbound shipping. In operations without On-Demand Packaging, items picked into totes typically flow to manual packing stations, where throughput averages just 45 cartons per hour, often resulting in bottlenecks and increased labor demands. By integrating these technologies, businesses can dramatically boost throughput and reduce packaging labor by up to 90%. Notably, packaging automation tends to deliver a faster return on investment (ROI) than ASRS or GTP systems, thanks to lower upfront costs and immediate operational savings. As a result, automating packaging can accelerate overall project ROI; often shaving months or even years off the payback timeline.

Technical Breakdown: Box First vs. Box Last with ASRS/GTP Systems

Choosing between a “box first” or “box last” workflow is key to maximizing efficiency, as many operations optimize picking but still face packaging bottlenecks when using totes.

Box First Workflow

1. Order is received and analyzed: The system determines the required items and their dimensions.

2. Box is Produced: Based on the order data, a right-sized box is generated before items are picked.

3. Items Delivered: ASRS/GTP delivers items to picking port where right-sized box is ready

4. Operator picks items directly into the box: Items are placed straight into the shipping container.

5. Box is sealed, labeled, and shipped.

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Advantages:

• Direct picking into the final shipper minimizes handling and speeds up packing.

• Especially efficient for multi-line orders or when order dimensions are highly predictable.

• Simplifies downstream consolidation.

• Reduction in overall labor requirements to pick and pack

• Provides an open box for value added services or protective packaging additions post picking

Challenges:

• Requires highly accurate item data; any discrepancies can lead to fit issues.

• Less flexible if substitutions or changes occur after the box is made.

• Picking into the final shipper can reduce pick rates at the picking station vs. picking into standard totes

Box Last Workflow

1. Order is received: System determines required items for order

2. Order Released: ASRS/GTP retrieves and delivers items to a picking or consolidation station.

3. Items Consolidated: Order items are staged together in totes or bins

4. Dimensions Measured: Items are scanned or measured together for combined size after picking

5. Box Produced: Packsize creates a custom, right-sized box for order

6. Items are packed, sealed, labeled, and shipped.

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Advantages:

• Boxes are tailored to the actual picked items, ensuring perfect fit and minimizing void fillers.

• Handles substitutions, exceptions, and variable SKUs with ease.

• Reduces risk of shipping errors due to mismatched packaging.

Challenges:

• Adds handling step: Items must be transferred from totes/bins to the custom box.

• Requires fast and reliable dimensioning/scanning at the packing station to avoid bottlenecks.

• Potential for packing bottlenecks if box-making speed lags behind picking throughput.

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Impact on Outbound Shipping and Logistics

The benefits of this integration extend beyond the warehouse. Here are just a few of the ways that pairing ASRS/GTP with right-sized packaging automation impacts outbound shipping and logistics:

Right-sized packages allow more boxes to fit on a truck or pallet, reducing the number of shipments.

Automated packaging systems create custom-fit boxes for every order, eliminating wasted space around products and reducing box sizes by an average of 40%. This allows about 33% more packages to be loaded onto each truck, pallet, or shipping container. By optimizing space utilization, businesses can consolidate shipments, decrease the frequency of outbound trucks, and improve overall logistics efficiency.

Lower shipping volume translates into reduced transportation costs and carbon emissions.

Smaller packages take up less space and weight, directly reducing shipping costs charged by carriers. Fewer trucks on the road and more efficient use of transportation resources help companies save on fuel and operational expenses. Additionally, the reduction in shipping volume leads to a smaller carbon footprint, supporting sustainability goals and meeting regulatory and customer expectations for greener operations.

Uniform packaging streamlines carrier scanning and sorting, reducing delays and damage.

Automated systems produce standardized, consistent packages that are easier for shipping partners to handle. Uniform box sizes and shapes speed up the scanning, sorting, and stacking processes at distribution centers and during last-mile delivery. This consistency minimizes the risk of errors, shipping delays, and product damage, ensuring orders arrive accurately and intact.

By eliminating unnecessary package space, businesses maximize the amount of product shipped per load and decrease inefficiencies throughout the supply chain. This leads to quicker delivery times and a more dependable shipping process, ultimately enhancing both operational performance and customer satisfaction.

In short, you ship less air and more products — faster and more reliably.

Real-World Results: A Fulfillment Multiplier

Companies adopting this integrated approach have reported:

• 30–40% reduction in cubic volume of shipments

• 5-15% reduction in parcel shipping costs

• 20–30% decrease in packaging material use

• Up to 50% faster pack-out times

• Improved order accuracy and lower returns

For 3PLs, e-commerce brands, and retailers with high SKU variability, these gains add up to millions in annual savings and a significantly smaller environmental footprint.

Future-Proofing Fulfillment

As labor costs rise and sustainability becomes more critical, automation is not just an advantage—it’s a necessity. Pairing ASRS and GTP systems with Packsize’s On-Demand Packaging creates a fully integrated, intelligent fulfillment engine that drives down costs, speeds up operations, and positions your business for the demands of tomorrow.

Conclusion

Integrating ASRS/GTP systems with right-sized packaging automation unlocks a new level of fulfillment efficiency. Whether your operation favors a “box first” or “box last” workflow, this synergy streamlines every step; from picking to packing to shipping. The result is faster throughput, reduced labor demands, and meaningful cost savings. For businesses striving to deliver smarter, faster, and more sustainable fulfillment, this end-to-end automation isn’t just an upgrade; it’s a strategic imperative.

Ready to transform your fulfillment operations? Start evaluating which process flow—box first or box last—fits your business best, and unlock the full potential of your automation investments.

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