A parcel processing system and method. A method includes inducting a plurality of parcels in a non-machinable parcel stream by a non-machinable parcel processing system. The method includes recording physical characteristics of each of the parcels. The method includes comparing the recorded physical characteristics of each parcel to machinable requirements. The method includes identifying machinable parcels based on the comparison. The method includes sorting the identified machinable parcels to an automation discharge. The method includes transporting all non-machinable parcels to workstations, by the non-machinable parcel processing system, for manual processing.