There are a LOT of errors in the packaging process driving massive shipping cost. IF you can harness good data, make it understandable and execute to it, those savings can be yours.
For the most part, ecom packaging is still being done the same way as it was in the 1990s. Orders are routed to the pack stations and associates decide which carton or bag to use for the order.
The closer you get to the packaging in the operation the more you will see management by Microsoft Excel and the further you get from integrated software systems. Packaging is a block hole. There is a lot of data floating around, but it is NOT being harnessed and systems are not talking to each other. There is excellent cartonization software available, but it is ineffective without accurate product dimensions in the item master.
We all agree that shipping too much air is not good for sustainability, materials spend, and labor. And shipping air is malpractice from a shipping perspective given the “Dimensionalization of Freight” in parcel and LTL.
If you can answer these questions, then you have it figured out and are enjoying massive shipping savings:
- Do you have accurate product item master dimensions (and weights)?
- Do you know exactly how much air you are shipping?
- Do you know your freight cost per pound or cost per cubic foot?
- Can you identify cause and effect? (This change=this result).
- Have you identified your worst box or bag offenders? In dimensional cost? In assessorial spend?
- Can you effectively measure the result of a change in packaging to
- Shipping cost?
- Material cost per pack?
- Labor cost per pack?
- Co2 footprint
Guess what… your carriers can probably answer more of these questions than you can. They have the data they have the power.
Visit IQpack if you would like to learn more about how you can reverse the trend, gain the leverage, and lower your shipping costs.