Smarter supply chain solutions.

Shippers! It is time to rethink your strategy on packaging

The Problem: Shipping too much air

Air is the number one item shipped in the U.S. and by a staggering number. For e-commerce shipments, the amount of air in packages is OVER 50%.

  1. How much air are YOU shipping?
  2. What is your average cost per cubic foot shipped?
  3. Are the dimensions in your product item master accurate?
  4. Are your package dimensions deadly accurate or are they “close enough”?
  5. Can you quickly see how packaging changes are impacting your freight costs?
  6. How much would you save by reducing air shipped by 10-50%?
  7. What is your sustainability initiative? Can you measure it?
  8. What is the experience your customers get from your packaging?

Quit reading if you can answer these questions.

The Solution: Packaging & Data

Packaging and data can have a profound and everlasting impact on your shipping costs and customer experience. Shipping is already your number one expense, and it keeps going up. An estimated +10% for small parcel already for 2023. Wow. This is not sustainable as a large, or even small, shipper. Your packaging expense is only a small fraction compared to your transportation spend. Quit thinking of packaging as an expense and necessary evil and put it to work with ROI and EBITDA.

Reducing air in your packs will dramatically reduce your shipping costs; a conservative 10% can be saved on small parcel shipping alone by reducing the amount of air you ship by 50%. (And that still leaves 25% air in the pack). Acquiring and managing accurate package dimensions can lead to additional savings. You will eliminate shipping charge corrections from your carriers and you will be able to finally see IF you are being overcharged based on pack size. It happens! Create the source of truth and you will change your relationship with your carrier for the better. Ship less air, reduce your packaging & dunnage spend and improve customer experience. You win on all fronts.

Guess what? Your carriers get additional capacity, so THEY WIN too.

Staggering numbers to reinforce where you should focus:

US Secondary Packaging Industry $63 Billion

(Boxes, bags, equipment)

FedEx & UPS Annual Revenue $192.9 Billion

US Transportation Industry $1.7 Trillion 8.9% of US GDP

Last Question: Do you want to spend time bidding on your packaging or refocus your strategy?

John is responsible for company efforts to drive value and differentiation in packaging for fulfillment, e-commerce, and manufacturing customers. He has 25 years of packaging leadership experience and has served at the helm of IQpack since early 2013.