There is provided a system that automatically delivers, monitors and replenishes a string of packaging cushions to hoppers located at multiple packing stations through an elongated cushion delivery duct having a series of intermediate outlets to permit the string of cushions to drop into the hopper located below the delivery duct and above the packing station. A blower is positioned near the inlet of the elongated duct to provide air flow in the duct to carry the string of cushions through the duct to one of the outlets. When the hopper is full of cushions sensors signal the controller to close the diverter and the string of cushions is delivered to another packaging station. The system may include a knife assembly to cut the string of cushions holding pins and the tension-relief diverter it is located at the inlet of the duct to hold tension on the string of cushions while the string is being separated. The tension release gate also has the purpose of relieving tension on the machine producing cushions during the machines feed/fill cycle.