This blog was contributed by Alex Kinkade, Sales & Marketing Director at StreamTech Engineering, a trusted ProShip partner

Warehouse fulfillment automation is an ever-growing industry, following consumers’ growing appetite for e-commerce. When most people think of automation, they imagine a large warehouse space filled with robots, conveyor belts, and other complex pieces of machinery. While this is true – there’s also a quieter, equally powerful form of automation that warehouses can leverage: making decisions in real-time and putting them into action. Though not as visible as a fleet of robots on the floor, the long-term benefits of this kind of “software plus hardware” automation can have just as much impact on warehouse operations and deliver tremendous cost savings.

Software + Hardware Can Be Powerful

A great example of this kind of hybrid hardware-software automation can be found in rate shopping the different carriers. This type of automation is the perfect fit for both hardware and software. With an automated shipping and parcel sortation system, packages can be labeled and diverted into various lanes by carrier – but without the software in place to cross-reference the rates in real time, the hardware is meaningless.

With the right combination of robust shipping software and advanced hardware shipping systems, warehouses can automate not only the search for the best rates for each package, but also their scanning, labeling, and sorting. This is exactly the kind of “invisible automation” that adds value and allows true scalability of the operation.

Let’s take a quick look to see how this integration works. This is just one of the benefits of the right hardware and software solution, but it may be one of the most powerful.

Don’t Leave Money on the Table: How Rate Shopping Works

Rate shopping is an essential component of modern shipping automation. The idea is to automatically compare carrier rates for any given package and select the most cost-effective option at the labelling stage.

Rate shopping works because different carriers will price shipments differently. For example, one carrier might use a different Dimensional Weight (DIM weight) formula than another. Or one carrier might service a local area exclusively, meaning lower rates in that area. How the carrier divides zones, and the locations to which the package will be sent, also affects prices.

Automated rate shopping takes advantage of these differences. When an order is ready for shipment, the hardware system gathers key data—like weight and dimensions—and sends the data to a multi-carrier shipping software. This software instantly compares rates from multiple carriers, such as national, regional, and final mile, taking into account delivery speed and service levels. With the right shipping software, the rate tables can be built directly into the software, doing the shopping locally without having to bounce off every carrier server, delivering almost instantaneous feedback.

It can even factor in historical data to predict the most efficient routes, ensuring the business is always getting the best price. For example, if a package needs to arrive overnight but the shipping address is in the next town over, it can recommend a cheaper ground shipment that will still get the package where it needs to go, on time (instead of putting an expensive overnight label on it).

The Hardware Side of Automated Rate Shopping and Fulfillment

Automated rate shopping requires a sophisticated software component to function effectively. However, true automation is achieved when this software seamlessly integrates with specialized hardware. This integration allows for real-time data capture and processing, streamlining the entire shipping process.

StreamTech’s Shipping Automation Systems exemplify this concept by streamlining the process. These systems are designed to convey, gather dimensions and weights, and manifest shipments in conjunction with shipping software, where rate shopping happens. The equipment can then automatically label and sort parcels downstream according to carrier and/or service level.

The process with StreamTech’s shipping automation equipment looks like this:

• Convey the packages
• Scan (induct) an LPN or UPC barcode
• Measure dimensions
• Measure weight (weigh scale)
• Create the Shipping Manifest (StreamTech’s WCS software connected to ProShip)
• Print/apply the appropriate label
• Scan to verify accuracy
• Sort by carrier or service level

Many systems are also often designed with an in-line semi-automatic box sealer and may also employ other verification technologies such as checkweighing or camera image capture systems to add accountability to the process.

Having a system built to do these tasks provides several advantages:

• It reduces labor for non-value add tasks. For example, it eliminates the need for hand weighing or keying in dimensions. Team members who traditionally did these tasks can now be re-allocated to more important tasks.
• It drastically reduces errors and inefficiencies. Carriers have been known to apply chargebacks when, say, the wrong DIM weight is given for a package. An automated system virtually eliminates these errors while guaranteeing that items are shipping at the best rates.
• It allows scalability. These systems can handle high volumes, anywhere from 15 CPM (cartons per minute) to 60+ CPM. Bringing on new clients, navigating peak season, or offering new products can now be done without doubling the manpower or building a new warehouse.

The Future is in Integration

Today’s warehouses are much more complex than they once were – and should have robust software stacks running in the background. Various pieces of equipment can integrate with each other, gather data, make decisions, and execute on those decisions, doing so at a rate that is much faster than what a human team can do. Combining systems like StreamTech with a leading multi-carrier shipping software, like ProShip, can also deliver valuable solutions such as rate shopping by service level, shipping label address verification, customized exception management, checkweighing, and multi-carton order processing within one order.

The most successful fulfillment automation comes from systems designed with entire processes in mind, with integrated hardware and software creating seamless workflows. Investing in these kinds of systems will mean efficiency, scalability, and long-term profitability.

Learn more about StreamTech Engineering and how they can help you achieve greater efficiency and profitability by visiting www.streamtecheng.com.

About the Author:

Alex Kinkade is the Sales & Marketing Director at StreamTech Engineering. With over 18 years of B2B marketing experience, at StreamTech Alex has become a student of the Material Handling industry. Alex enjoys collaborating closely with the Engineering team, asking questions and exploring how advanced systems, controls programming, and software integration work together to drive efficiency in warehouse fulfillment. This deep technical understanding enables StreamTech to translate complex systems into clear, practical messaging that resonates with customers.

For Alex, the most rewarding part of his role is working with customers—seeing projects flow from concept to completion through the company, witnessing the customer’s vision become reality, and sitting down with them to celebrate the measurable success of their automation solutions. The best part is that in many cases, a successful automation project is an opportunity to watch a customer’s career blossom, and share in a small part of their success story.