Package Size Optimization

One Size Does NOT Fit All!

Have you ever had a package delivered, and been surprised by how large the shipping box was compared to the item that you ordered? For example, a shoe box packed inside a box that could have held a small refrigerator.  To the average person, a scenario like this might be laughable and somewhat entertaining. But, the company that shipped the package should definitely not feel the same sentiment. Actually, they should be crying. 

When this happens in my house, my wife usually calls this to my attention. I normally hear something like, “look at this! What were they thinking!” or “how did this happen?” Given my long term experience in the Transportation industry, I know exactly what happened. More importantly, I know why it shouldn’t happen, as well as how to help prevent these types of costly, wasteful, and brand damaging scenarios. 

First let’s get to the “How this happens”. There are a number of things that drive improper carton utilization. 

1. With the growing popularity of Omni-Channel shipping, more shipments are being Fulfilled from Retailer’s stores. Stores often lack the right resources, material, and training to properly pack E-commerce orders. After all, a store is not a Distribution Center. Stores sometimes reuse boxes that they received store inventory in to pack individual customer E-Commerce orders. 
2. Lack of training or focus on packaging processes at the Distribution/ Fulfillment Centers. Many companies are so focused on getting orders shipped out quickly and accurately, that they overlook the importance of proper packaging. Companies sometimes limit the variety of box sizes they order for shipping, which can lead to their packers being forced to use shipping cartons that are much larger than the product being shipped. 

Now, let’s discuss the ramifications of poor carton utilization or the “WHY this shouldn’t happen.”

1. As described above in the ship from store scenario, stores often reuse boxes to send out consumer orders. Although this might help save on corrugated and carton disposal costs, it drives up shipping expenses and could damage customer’s perception of the brand. There is also the increased potential for damage to the shipment due to the fact that reused cartons can have their structural integrity compromised from their initial trip to the store.
2. Sustainability is a hot topic for all companies today. Using the wrong size cartons to ship product has a negative impact on the environment. Besides the corrugated waste associated with non-optimized cartons, there is also a negative impact on carriers CO2 emissions. The more space, or air that shippers leave in their boxes, the less amount of packages carriers can move on their equipment. So, this contributes to an increase in the number of vehicles that carriers need to put on the road, which obviously increases CO2 emissions. 
3. The biggest and most impactful reason why shippers should use appropriate shipping carton sizing is Cost. Dimensional Weight is often used over Actual Weight when determining shipping cost.  For example, if a pair of shoes is shipped in properly optimized box measuring 14” x 10” x 7”, the dimensional weight of the box would be 6 Lbs. However, if a shipper used a box that measured slightly larger at 16” x 12” x 9”, the dimensional weight increases to 9 lbs. The increase in published shipping cost can increases by as much as 15% with this minor increase in package size. Additionally, the cost of the box itself would be greater since corrugated suppliers usually charge more for larger containers. When you consider the increase in cost that a shipper could incur across hundreds or thousands of packages that are not properly optimized, the amounts could be staggering! 

So, finally, let’s get to the most important part of this article- “HOW TO STOP THIS FROM HAPPENING!”

The answer is very simple; Reach out to ICC Logistics Services to find out how we have helped drive significant cost savings and improved bottom lines for many companies with our Packaging Optimization Services.  A typical engagement starts with a baseline assessment of the end-to-end packaging process, starting with product item master accuracy through shipping. Often, the process targets a narrowly defined problem. After establishing a track record of success, services can expand with increasing ROI – even exceeding 1,000%! 

Save money, Protect Your Brand, and Protect the environment- seems like a no-brainer!