Dim weight pricing changes by major carriers will significantly impact shipping costs for unprepared companies. Dim weight is calculated based on a package's volume, not actual weight, and will be the basis for shipping charges beginning in 2015. Packaging optimization can help reduce these costs. Sealed Air testing found that using smaller, more efficient packaging can save over 20% in shipping and materials costs compared to less dense packaging that wastes space. Solutions like Instapak foam and Korrvu packaging provide protection while minimizing package size.
Shipping carriers now use dimensional weight (DIM) pricing to determine shipping costs, charging customers the greater of actual weight or DIM weight. DIM weight is calculated by multiplying the package height, length and width. To control costs under DIM pricing, shipping customers should closely monitor packaging, comparison shop carriers, and consider changing packaging procedures or carriers. The adoption of DIM pricing has increased costs for most shipping customers.
The document discusses supply chain optimization through packaging. It argues that packaging decisions typically do not consider supply chain impacts and there are opportunities to reduce costs by optimizing packaging for warehousing and transportation. Supply Chain Optimizers helps companies analyze packaging and implement changes to reduce costs through lower material usage, less wasted space, improved palletization, and reduced freight expenses. The process aims to synchronize packaging with warehousing and transportation for the lowest total supply chain costs.
The Future of Packaging: Technology and Packaging in 10 Years and BeyondPakFactory
This document discusses trends in packaging over the next 10 years and beyond. It predicts that packaging will become more specialized, sustainable, and technologically advanced. Dissolvable, space-saving, and smart packaging utilizing printed electronics, nanotechnology and augmented reality will provide enhanced product interaction and information. E-commerce growth will increase demand for corrugated and automated delivery solutions. Changes in manufacturing like 3D printing, AI automation, on-demand warehousing, and blockchain technology will make operations more efficient. Overall, the future of packaging will revolutionize customer experience and environmental protection.
SUSTAINABLE PACKAGING
Packaging protects and promotes food, beverage, and consumer products across the globe. Packaging is expected to grow at an average rate of 3.4% over the next decade (according to Smithers Pira), and most producers of consumer goods are seeking ways to enhance their sustainability initiatives. This presentation will cover trends in sustainable packaging, and how adhesives can enhance and enable your package designs.
Get more on our packaging solutions @ www.hbfuller.com/packaging-solutions
We at CPP recognize that there are environmental costs to packaging that go beyond the factory price. Keeping this close to our hearts, we work with a manufacturer on the leading edge of sustainability to minimize negative environmental impact through thoughtful design and material selection. Consumers want to make sustainable choice. Help make it easier for them
Geami WrapPak is a recyclable paper packaging solution that can be used to:
1) Create a unique unboxing experience for customers by packaging items like gifts.
2) Communicate a company's sustainability focus as it is made from paper and friendly to the environment.
3) Easily handle seasonal peaks in warehouse operations by quickly and flexibly wrapping products.
The document summarizes information about Origami India, a leading producer of paper disposables in India. It provides details on Origami's product range, clients served, locations, vision, and analyses including PEST, Porter's Five Forces, SWOT, and resource-based reviews. Origami manufactures paper products from recycled waste or sustainable sources. It supplies various sectors including retail, exports, corporates, housekeeping, hospitals, and hotels. Various analyses highlight factors like competitive rivalry, bargaining powers, and how Origami can achieve sustained competitive advantage through valuable, rare, in-imitable, and non-substitutable resources.
Ziffy Packaging Solutions By Ziffypack Packaging Private Limited, Gurgaonindiamartsupplier
We Ziffypack Packaging Private Limited, a Private Limited Company, established 2015, at Gurgaon, Haryana, India. With industry rich experience and knowledge in Flexible Packaging, Primary Packaging, Industrial Packaging Solution, we are engaged in manufacturing and trading an in-depth range of Jewellery Packaging Boxes, Corrugated Boxes, Packaging Boxes, Corrugated Cartons, etc.
Shipping carriers now use dimensional weight (DIM) pricing to determine shipping costs, charging customers the greater of actual weight or DIM weight. DIM weight is calculated by multiplying the package height, length and width. To control costs under DIM pricing, shipping customers should closely monitor packaging, comparison shop carriers, and consider changing packaging procedures or carriers. The adoption of DIM pricing has increased costs for most shipping customers.
The document discusses supply chain optimization through packaging. It argues that packaging decisions typically do not consider supply chain impacts and there are opportunities to reduce costs by optimizing packaging for warehousing and transportation. Supply Chain Optimizers helps companies analyze packaging and implement changes to reduce costs through lower material usage, less wasted space, improved palletization, and reduced freight expenses. The process aims to synchronize packaging with warehousing and transportation for the lowest total supply chain costs.
The Future of Packaging: Technology and Packaging in 10 Years and BeyondPakFactory
This document discusses trends in packaging over the next 10 years and beyond. It predicts that packaging will become more specialized, sustainable, and technologically advanced. Dissolvable, space-saving, and smart packaging utilizing printed electronics, nanotechnology and augmented reality will provide enhanced product interaction and information. E-commerce growth will increase demand for corrugated and automated delivery solutions. Changes in manufacturing like 3D printing, AI automation, on-demand warehousing, and blockchain technology will make operations more efficient. Overall, the future of packaging will revolutionize customer experience and environmental protection.
SUSTAINABLE PACKAGING
Packaging protects and promotes food, beverage, and consumer products across the globe. Packaging is expected to grow at an average rate of 3.4% over the next decade (according to Smithers Pira), and most producers of consumer goods are seeking ways to enhance their sustainability initiatives. This presentation will cover trends in sustainable packaging, and how adhesives can enhance and enable your package designs.
Get more on our packaging solutions @ www.hbfuller.com/packaging-solutions
We at CPP recognize that there are environmental costs to packaging that go beyond the factory price. Keeping this close to our hearts, we work with a manufacturer on the leading edge of sustainability to minimize negative environmental impact through thoughtful design and material selection. Consumers want to make sustainable choice. Help make it easier for them
Geami WrapPak is a recyclable paper packaging solution that can be used to:
1) Create a unique unboxing experience for customers by packaging items like gifts.
2) Communicate a company's sustainability focus as it is made from paper and friendly to the environment.
3) Easily handle seasonal peaks in warehouse operations by quickly and flexibly wrapping products.
The document summarizes information about Origami India, a leading producer of paper disposables in India. It provides details on Origami's product range, clients served, locations, vision, and analyses including PEST, Porter's Five Forces, SWOT, and resource-based reviews. Origami manufactures paper products from recycled waste or sustainable sources. It supplies various sectors including retail, exports, corporates, housekeeping, hospitals, and hotels. Various analyses highlight factors like competitive rivalry, bargaining powers, and how Origami can achieve sustained competitive advantage through valuable, rare, in-imitable, and non-substitutable resources.
Ziffy Packaging Solutions By Ziffypack Packaging Private Limited, Gurgaonindiamartsupplier
We Ziffypack Packaging Private Limited, a Private Limited Company, established 2015, at Gurgaon, Haryana, India. With industry rich experience and knowledge in Flexible Packaging, Primary Packaging, Industrial Packaging Solution, we are engaged in manufacturing and trading an in-depth range of Jewellery Packaging Boxes, Corrugated Boxes, Packaging Boxes, Corrugated Cartons, etc.
How to choose the right custom packaging company for your business updatedPakFactory
So, you’ve decided to delve into custom packaging for your business!
Let’s look into services within the industry for you to consider before pursuing your custom packaging desires.
It’s important to understand exactly what services your company requires to execute your product launch effectively.
Here we aim to lay out important considerations when choosing a custom packaging company for your business.
UPS and Fedex Change Will Impact Everyone - Even YOU!Sean Robinson
UPS and FedEx changed their shipping rules in 2015 to charge packages based on dimensional weight rather than just actual weight. This means packages will be charged based on whichever is greater - actual weight or a calculated dimensional weight which considers the package dimensions. This affects retailers and shippers who will now pay higher rates, and consumers who may see increased online shopping costs as companies pass on these higher shipping fees. To adapt, businesses need to invest in technology to better optimize package sizes and collect shipping data, while consumers should shop smarter and understand the true costs of shipping items.
Parcel Aug 2011 E Lombard Three Fundamental Actions Holiday Shipping SeasonELombard
The document discusses three fundamental actions businesses should take to prepare for the upcoming holiday shipping season. They are: 1) Evaluate shipping processes to ensure efficiency and reduce bottlenecks, 2) Understand package details to optimize sizes and reduce costs, and 3) Fully analyze carrier invoices and spending to identify savings opportunities. Taking these steps will allow businesses to make improvements before the holidays and position themselves for success.
[Webinar] Shedding a Light on Dim Weight Pricing Changes for Parcel ShipmentsChainalytics
In the boldest move in parcel shipping rates since 1995, both FedEx and UPS will be implementing new pricing schemes for parcel shipments beginning in 2015. Precisely how much this affects shipping rates depends on the weight and size of each parcel, but increases could be as high as 30% for some shippers based on early estimates.
This educational webinar explores ways to mitigate your risks in 2015 and beyond and how to get plans into place now avoid costly mistakes later.
The transport packaging experts at Chainalytics will cover;
- How to mitigate your risks in 2015
- Ways to right-size your packaging
- Tactics for reducing small parcel costs
- Shipping alternatives to consider now to avoid costly mistakes later
For more information on how you can optimize your packaging, call tel: +1 (612) 260-7845 to speak with an expert, or simply email packaging@chainalytics.com.
Packaging optimization can significantly reduce supply chain costs by improving how products are packaged for shipping. The efficiency of the supply chain depends on both the network of movement as well as the physical characteristics of the product. By designing packaging to better fit pallets and trucks, companies can impact key shipping rate factors like density and reduce logistics expenses. Through packaging assessments and cost-benefit analyses of improvement options, optimization programs can be developed to streamline packaging systems, lower costs, and enhance supply chain efficiencies. Examples of opportunities include reducing package weight and size, improving density, and designing packaging that better withstands distribution damage.
Weigh In as a Light-Weight: Counter the New Dimensional Weight RulesGSO2015
These slides are from a webinar presentation by GSO (Golden State Overnight) about the changes in the Dimensional Weight Rules implemented by the National Carriers. GSO is a Regional Carrier providing next day Ground and Overnight services throughout the states of California, Arizona, Nevada, and New Mexico. We have had numerous customers and prospective clients ask us about the new DIM weight rules. GSO has not changed its policies. Dimensional weight only applies if a package reaches a cubic size of 5,184 inches. Once a package reaches the threshold of 5,184 cubic inches, you'll need to divide that number by the U.S. dimensional factor of 166 to determine dimensional weight. You would then compare the DIM weight to the Actual weight and take the greater of the two numbers to determine billable weight. With the National Carriers, every package is now subject to Dimensional weight.
1. The document discusses dimensional weight pricing, a strategy where shipping companies charge customers based on the volume of packages rather than just weight alone.
2. It argues that dimensional weight pricing ensures companies are properly compensated for space taken up in vehicles and that customers receive fair invoices.
3. Automatic measuring equipment is recommended to provide accurate dimensional data, maximize revenue potential, and build customer trust through transparency.
5 ways outsourcing logistics can benefit your businessManuel Gallego
Order Fulfillment Outsourcing Makes Growing Globally Easier
Order fulfillment helps your business grow by letting you:
1) Explore New Geographic Markets And Reach New Customers
2) Reduce Customs Hassles For International Shipments
3) Cut Costs By Storing Inventory in Europe
4) Refocus Your Efforts On Selling, Not Shipping
5) Increase Profit Margins
http://spainbox.com
Since 2007, we’ve been known for our top-notch packaging and branding skills, our passion for meshing strategy with creativity, and our willingness to take risks.
We don’t believe in cookie-cutter packaging and branding solutions and our service is truly customized to meet the unique needs of each client. We thrive when we are able to grow alongside our clients and watch them succeed.
5 ways outsourced order fulfillment can benefit your businessShipwire
5 Ways outsourced order fulfillment can benefit your business.
Order fulfillment outsourcing makes growing globally easier.
You’ve learned from experience as a growing business that initial logistics woes are manageable at the beginning. As your brand grows and sales increase, you may find yourself scaling your business to meet global demands.
Most small sellers and startup businesses just don’t have the expertise to get effective carrier rates, employ the necessary staff to manage a warehouse or have the know- how for the numerous shipping restrictions, taxes, customs each country has. Using outsourcing shipping tactics from Fortune 500 companies is beneficial so you can spend more time channelling your efforts to your strengths: sales.
Here we explore the 5 ways your business can benefit from outsourcing your warehousing and shipping.
The document discusses how companies can improve sustainability and reduce costs by replacing pre-printed boxes and outdated coding equipment with more efficient direct-to-case coding equipment. This allows companies to use generic boxes for all products and print variable information like batch codes directly onto the boxes with high-resolution inkjet printing. For one candy manufacturer, making this switch reduced box inventory costs, changeover times, and labor costs, saving over $140,000 annually per production line after a payback period of just over 10 weeks. The document advocates that thinking differently about packaging solutions, like this outside-the-box approach, can significantly improve sustainability and business operations.
Packaging is important for attracting consumer attention and conveying messages about products. Firms may update packaging through repositioning to make products seem new and appeal to different audiences. For example, a coconut ice cream company rebranded after 10 years to seem new to customers and compete with other brands. Packaging can also help suppliers reduce costs by decreasing product amounts per package.
Georgia Business Works Expo, LEED, Carbon Footprint, Green CompaniesBillStankiewicz
The document discusses the benefits of green initiatives for Shippers Warehouse, a logistics and transportation company. It outlines how going green can boost efficiency, lower costs, increase customer satisfaction and employee productivity. Specific initiatives discussed include installing light-colored rooftops, capturing rainwater, using local suppliers, and implementing ready rooms in packaging operations. The company is also a member of the EPA SmartWay Transport Partnership to improve its transportation footprint.
4 The Upside of Packaging Sustainability White Paperdiggum3
Packaging Sustainability is maturing. Product manufacturers, distribution experts, and consumers are driving substantial changes in raw material sourcing, manufacturing, packaging, and distribution practices.
Boxon Packaging Projects AB specializes in developing packaging solutions to lower customers' total supply chain costs in Europe. They conduct supply chain analyses and design customized packaging solutions that increase packing efficiency through higher filling ratios. Their solutions often replace standard packaging and increase the number of parts per pallet through innovations like injection-molded trays that secure parts without added weight. They aim to deliver projects with short lead times and high service levels through partnerships along the supply chain.
The document summarizes the evolution and challenges of online grocery delivery in the United States. It discusses how early innovators like Webvan and Peapod pioneered the concept but faced difficulties in maintaining product quality and efficient delivery. Consumer preferences have also shaped the market, demanding low prices, minimal fees, and fast, high-quality service. While online grocery sales continue growing, companies must overcome challenges like meeting consumer expectations for flawless delivery of fresh products.
The document provides various ideas to reduce shipping costs, including using FedEx prepaid stamps, USPS flat rate boxes, free USPS packaging, carrier packaging labs, negotiating fuel surcharges and supplemental charges, converting air to ground shipments, auditing bills, and leveraging parcel consolidators for residential deliveries. It also recommends defining package characteristics, using third-party insurers instead of carrier insurance, and pre-purchasing options to avoid additional fees.
The document summarizes changes to USPS shipping services that took effect on January 4, 2010, including price increases for services like Express Mail, Priority Mail, and international shipping. It recommends strategies for leveraging the changes, such as implementing multi-carrier solutions to optimize costs, restructuring package sizes, and taking advantage of Priority Mail Commercial Plus pricing programs. Specific opportunities for savings with Priority Mail Commercial Plus cubic pricing and half-pound pricing are presented.
Decathlon is an international sporting goods retailer with over 70,000 employees seeking to make sports accessible to all. The Decathlon location in Schwetzingen, Germany saw packaging needs increase from 200-400 boxes per day to over 9,000 as online shopping grew. Previously using air bags, they switched to Ranpak's paper-based FillPak and PadPak systems to gain flexibility, reduce costs by over 20%, and meet environmental goals of using recyclable materials. The new systems provided protection during transport while being easy for packers to use.
The document discusses key levers for implementing green logistics practices. It identifies network optimization, green warehousing, standardization, and green packaging as the four main levers.
Network optimization strategies discussed include warehouse network design, transportation optimization through distribution and route planning, modal mix changes, green fleets, and green pallets. Green warehousing strategies focus on warehouse design elements like daylighting and efficient lighting systems, as well as operations improvements through inventory tracking, efficient equipment, and temperature control. Standardization and green packaging round out the discussion of levers to reduce environmental impact across the supply chain.
More Related Content
Similar to Sealed Air_Dim Weight_White Paper_FINAL
How to choose the right custom packaging company for your business updatedPakFactory
So, you’ve decided to delve into custom packaging for your business!
Let’s look into services within the industry for you to consider before pursuing your custom packaging desires.
It’s important to understand exactly what services your company requires to execute your product launch effectively.
Here we aim to lay out important considerations when choosing a custom packaging company for your business.
UPS and Fedex Change Will Impact Everyone - Even YOU!Sean Robinson
UPS and FedEx changed their shipping rules in 2015 to charge packages based on dimensional weight rather than just actual weight. This means packages will be charged based on whichever is greater - actual weight or a calculated dimensional weight which considers the package dimensions. This affects retailers and shippers who will now pay higher rates, and consumers who may see increased online shopping costs as companies pass on these higher shipping fees. To adapt, businesses need to invest in technology to better optimize package sizes and collect shipping data, while consumers should shop smarter and understand the true costs of shipping items.
Parcel Aug 2011 E Lombard Three Fundamental Actions Holiday Shipping SeasonELombard
The document discusses three fundamental actions businesses should take to prepare for the upcoming holiday shipping season. They are: 1) Evaluate shipping processes to ensure efficiency and reduce bottlenecks, 2) Understand package details to optimize sizes and reduce costs, and 3) Fully analyze carrier invoices and spending to identify savings opportunities. Taking these steps will allow businesses to make improvements before the holidays and position themselves for success.
[Webinar] Shedding a Light on Dim Weight Pricing Changes for Parcel ShipmentsChainalytics
In the boldest move in parcel shipping rates since 1995, both FedEx and UPS will be implementing new pricing schemes for parcel shipments beginning in 2015. Precisely how much this affects shipping rates depends on the weight and size of each parcel, but increases could be as high as 30% for some shippers based on early estimates.
This educational webinar explores ways to mitigate your risks in 2015 and beyond and how to get plans into place now avoid costly mistakes later.
The transport packaging experts at Chainalytics will cover;
- How to mitigate your risks in 2015
- Ways to right-size your packaging
- Tactics for reducing small parcel costs
- Shipping alternatives to consider now to avoid costly mistakes later
For more information on how you can optimize your packaging, call tel: +1 (612) 260-7845 to speak with an expert, or simply email packaging@chainalytics.com.
Packaging optimization can significantly reduce supply chain costs by improving how products are packaged for shipping. The efficiency of the supply chain depends on both the network of movement as well as the physical characteristics of the product. By designing packaging to better fit pallets and trucks, companies can impact key shipping rate factors like density and reduce logistics expenses. Through packaging assessments and cost-benefit analyses of improvement options, optimization programs can be developed to streamline packaging systems, lower costs, and enhance supply chain efficiencies. Examples of opportunities include reducing package weight and size, improving density, and designing packaging that better withstands distribution damage.
Weigh In as a Light-Weight: Counter the New Dimensional Weight RulesGSO2015
These slides are from a webinar presentation by GSO (Golden State Overnight) about the changes in the Dimensional Weight Rules implemented by the National Carriers. GSO is a Regional Carrier providing next day Ground and Overnight services throughout the states of California, Arizona, Nevada, and New Mexico. We have had numerous customers and prospective clients ask us about the new DIM weight rules. GSO has not changed its policies. Dimensional weight only applies if a package reaches a cubic size of 5,184 inches. Once a package reaches the threshold of 5,184 cubic inches, you'll need to divide that number by the U.S. dimensional factor of 166 to determine dimensional weight. You would then compare the DIM weight to the Actual weight and take the greater of the two numbers to determine billable weight. With the National Carriers, every package is now subject to Dimensional weight.
1. The document discusses dimensional weight pricing, a strategy where shipping companies charge customers based on the volume of packages rather than just weight alone.
2. It argues that dimensional weight pricing ensures companies are properly compensated for space taken up in vehicles and that customers receive fair invoices.
3. Automatic measuring equipment is recommended to provide accurate dimensional data, maximize revenue potential, and build customer trust through transparency.
5 ways outsourcing logistics can benefit your businessManuel Gallego
Order Fulfillment Outsourcing Makes Growing Globally Easier
Order fulfillment helps your business grow by letting you:
1) Explore New Geographic Markets And Reach New Customers
2) Reduce Customs Hassles For International Shipments
3) Cut Costs By Storing Inventory in Europe
4) Refocus Your Efforts On Selling, Not Shipping
5) Increase Profit Margins
http://spainbox.com
Since 2007, we’ve been known for our top-notch packaging and branding skills, our passion for meshing strategy with creativity, and our willingness to take risks.
We don’t believe in cookie-cutter packaging and branding solutions and our service is truly customized to meet the unique needs of each client. We thrive when we are able to grow alongside our clients and watch them succeed.
5 ways outsourced order fulfillment can benefit your businessShipwire
5 Ways outsourced order fulfillment can benefit your business.
Order fulfillment outsourcing makes growing globally easier.
You’ve learned from experience as a growing business that initial logistics woes are manageable at the beginning. As your brand grows and sales increase, you may find yourself scaling your business to meet global demands.
Most small sellers and startup businesses just don’t have the expertise to get effective carrier rates, employ the necessary staff to manage a warehouse or have the know- how for the numerous shipping restrictions, taxes, customs each country has. Using outsourcing shipping tactics from Fortune 500 companies is beneficial so you can spend more time channelling your efforts to your strengths: sales.
Here we explore the 5 ways your business can benefit from outsourcing your warehousing and shipping.
The document discusses how companies can improve sustainability and reduce costs by replacing pre-printed boxes and outdated coding equipment with more efficient direct-to-case coding equipment. This allows companies to use generic boxes for all products and print variable information like batch codes directly onto the boxes with high-resolution inkjet printing. For one candy manufacturer, making this switch reduced box inventory costs, changeover times, and labor costs, saving over $140,000 annually per production line after a payback period of just over 10 weeks. The document advocates that thinking differently about packaging solutions, like this outside-the-box approach, can significantly improve sustainability and business operations.
Packaging is important for attracting consumer attention and conveying messages about products. Firms may update packaging through repositioning to make products seem new and appeal to different audiences. For example, a coconut ice cream company rebranded after 10 years to seem new to customers and compete with other brands. Packaging can also help suppliers reduce costs by decreasing product amounts per package.
Georgia Business Works Expo, LEED, Carbon Footprint, Green CompaniesBillStankiewicz
The document discusses the benefits of green initiatives for Shippers Warehouse, a logistics and transportation company. It outlines how going green can boost efficiency, lower costs, increase customer satisfaction and employee productivity. Specific initiatives discussed include installing light-colored rooftops, capturing rainwater, using local suppliers, and implementing ready rooms in packaging operations. The company is also a member of the EPA SmartWay Transport Partnership to improve its transportation footprint.
4 The Upside of Packaging Sustainability White Paperdiggum3
Packaging Sustainability is maturing. Product manufacturers, distribution experts, and consumers are driving substantial changes in raw material sourcing, manufacturing, packaging, and distribution practices.
Boxon Packaging Projects AB specializes in developing packaging solutions to lower customers' total supply chain costs in Europe. They conduct supply chain analyses and design customized packaging solutions that increase packing efficiency through higher filling ratios. Their solutions often replace standard packaging and increase the number of parts per pallet through innovations like injection-molded trays that secure parts without added weight. They aim to deliver projects with short lead times and high service levels through partnerships along the supply chain.
The document summarizes the evolution and challenges of online grocery delivery in the United States. It discusses how early innovators like Webvan and Peapod pioneered the concept but faced difficulties in maintaining product quality and efficient delivery. Consumer preferences have also shaped the market, demanding low prices, minimal fees, and fast, high-quality service. While online grocery sales continue growing, companies must overcome challenges like meeting consumer expectations for flawless delivery of fresh products.
The document provides various ideas to reduce shipping costs, including using FedEx prepaid stamps, USPS flat rate boxes, free USPS packaging, carrier packaging labs, negotiating fuel surcharges and supplemental charges, converting air to ground shipments, auditing bills, and leveraging parcel consolidators for residential deliveries. It also recommends defining package characteristics, using third-party insurers instead of carrier insurance, and pre-purchasing options to avoid additional fees.
The document summarizes changes to USPS shipping services that took effect on January 4, 2010, including price increases for services like Express Mail, Priority Mail, and international shipping. It recommends strategies for leveraging the changes, such as implementing multi-carrier solutions to optimize costs, restructuring package sizes, and taking advantage of Priority Mail Commercial Plus pricing programs. Specific opportunities for savings with Priority Mail Commercial Plus cubic pricing and half-pound pricing are presented.
Decathlon is an international sporting goods retailer with over 70,000 employees seeking to make sports accessible to all. The Decathlon location in Schwetzingen, Germany saw packaging needs increase from 200-400 boxes per day to over 9,000 as online shopping grew. Previously using air bags, they switched to Ranpak's paper-based FillPak and PadPak systems to gain flexibility, reduce costs by over 20%, and meet environmental goals of using recyclable materials. The new systems provided protection during transport while being easy for packers to use.
The document discusses key levers for implementing green logistics practices. It identifies network optimization, green warehousing, standardization, and green packaging as the four main levers.
Network optimization strategies discussed include warehouse network design, transportation optimization through distribution and route planning, modal mix changes, green fleets, and green pallets. Green warehousing strategies focus on warehouse design elements like daylighting and efficient lighting systems, as well as operations improvements through inventory tracking, efficient equipment, and temperature control. Standardization and green packaging round out the discussion of levers to reduce environmental impact across the supply chain.
Similar to Sealed Air_Dim Weight_White Paper_FINAL (20)
1. How to Optimize Packaging to Minimize
the Financial Impacts of Dim Weight
Pricing and Deliver a Better e-Commerce
Customer Experience
Dimensional Weight:
Don’t Let It
Weigh You Down
A Sealed Air White Paper
2. Sealed Air | Dim Weight White Paper | November 2014
Background Page 3
• Overview of dim weight pricing
• Calculating dim weight
Impacts of Dim Weight Pricing on Manufacturers and Retailers Page 5
Solutions for Increased Protection in Decreased Dimensions Page 6
• Test results from Sealed Air’s Package Design Centers
• Packaging solutions
Beyond Dim Weight: Why Packaging Matters Page 10
• New research on packaging for e-Commerce success
Conclusion Page 11
• Ten tips for dim weight packaging success
• Additional resources to prepare for dim weight changes
Table of Contents
Sealed Air | Dim Weight White Paper | November 2014
Page 2
3. Sealed Air | Dim Weight White Paper | November 2014
In 2015, a new era in shipment pricing will go into effect when major carriers including FedEx, UPS and
DHL implement dimensional (“dim”) weight pricing for all ground packages regardless of their size. For
quite some time now, carriers have been using dim weight pricing for all of their air service shipments
and ground shipments over three cubic feet. Beginning in 2015, packages shipped by ground service that
are less than three cubic feet will be subject to dimensional weight pricing. It is important to note that
the majority of cartons shipped are less than three cubic feet and will be subject to dim weight pricing in
2015. To better visualize approximately three cubic feet, imagine a medium sized microwave oven or a box
measuring 17” on each side. This pricing change could have major financial implications for unprepared
manufacturers and retailers.
What is dim weight pricing? Essentially, it is a method of determining price based on volume versus actual
weight of shipments. The reason for this dimensional weight policy change is due to a growing number
of packages from e-Commerce that are not being packed with regard to density of packing. Shipping
containers are relatively large and light weight when compared to the items being shipped inside the
container. This can fill up FedEx, UPS and DHL delivery vehicles before any weight limitation is hit, in
shipping terms, cubing out before weighing out, and this costs the carrier money.
Calculating Dim Weight and Determining Billable Weight:
Dim weight is calculated by determining the cubic size of a package – multiplying its length by width by
height and dividing by 166 (for domestic shipments) or 139 (for shipments to Canada). When measuring,
be sure to use the longest measurement in each dimension if the object is not cube-shaped. When dividing
by 166 or 139 to get the dimensional weight, any fraction is rounded up to the next whole. The billable
weight is the weight that is used to determine the shipping charge. Beginning in 2015 with the three cubic
feet exemption no longer applicable, the billable weight is the greater of either the actual weight or the
dimensional weight regardless of the volume of the shipment.
Background
Sealed Air | Dim Weight White Paper | November 2014
Page 3
Dimensional Weight
(lbs)
L = Length in inches
W = Width in inches
H = Height in inches
Source: UPS
L x W x H
166
=
L
W
H
HOW TO CALCULATE DIM WEIGHT
4. Sealed Air | Dim Weight White Paper | November 2014
Page 4
Benefits of dim weight pricing range from better use of space on trucks to reducing fuel and transportation
costs to more efficient packaging. Drawbacks for manufacturers and retailers, however, could include
significantly increased shipping costs.
The good news is that by taking a proactive approach to evaluating packaging based on dim weight pricing
changes, companies can not only keep shipping costs down, but also potentially improve product protection,
sustainability and customer service through optimized packaging solutions.
This paper explores the following topics:
• Impacts of dim weight pricing changes on manufacturers and retailers
• Packaging for dim weight test results from Sealed Air’s Package Design Centers
• Information on specific packaging solutions that help optimize packaging to keep costs
down while keeping customer satisfaction up
• Top tips for dim weight packaging
• Additional resources to help you prepare for dim weight pricing changes
5. Sealed Air | Dim Weight White Paper | November 2014Sealed Air | Dim Weight White Paper | November 2014
Page 5
For manufacturers and retailers, the impacts of dim weight pricing changes include both financial and
operational considerations.
On the financial side, it’s estimated that companies could pay up to $550 million per year more in shipping
costs based on dim weight changes. To help avoid this scenario, companies should re-evaluate their
packaging practices. First, companies will need to have more container sizes on hand and reconsider the
packaging they are using to protect shipments. Having the right packaging materials is essential to provide
adequate protection during shipping, while taking up the least amount of space.
Looking at dim weight changes from an operational perspective, the pricing changes add another layer
of complexity to many of the challenges that have come with the rise in e-Commerce. These challenges
mainly lie in the areas of processing and packaging shipments for online orders. According to new data from
the Sealed Air 2014 Packaging for e-Commerce Success Survey, conducted by Harris Poll, 87 percent of
Americans purchased items online in the past year, and 78 percent of Americans believe their orders should
be processed in 24 hours or less.
To meet increasing e-Commerce demands, many retailers try to fulfill orders quickly and package density is
being sacrificed for speed of packaging. Small or lightweight items often are placed in larger-than-necessary
containers with little thought to the protective packaging around the item. The adoption of dim weight pricing
will have a significant impact on these operations if companies don’t address their packaging prior to the shift.
How much of an impact? The Wall Street Journal estimates that under the new pricing model, the cost to ship
a two-slice toaster between 601-1000 miles will increase 35 percent.
Consumers returning packages and retailers offering free returns need to be aware of these changes too.
Consumers often do not take the time to find an ideal box for their return shipments and most use the same
box in which they received their original order. However, if they’re only returning one item from a multiple
item order delivered in a large container, they’ll be paying much more than they need to when they return
that item. This could impact their experience and overall satisfaction with retailers if they believe they are
paying too much for returns. It could also drive up costs for retailers offering free shipping.
Impacts of Dim Weight Pricing on Manufacturers and Retailers
6. Sealed Air | Dim Weight White Paper | November 2014
Sealed Air recently conducted a packaging analysis in its Package Design Centers to identify opportunities
to optimize packaging for some commonly shipped items to keep shipping costs down when dim weight
billing is implemented. The analysis demonstrates that by using a smaller container and more efficient
packaging, companies can realize significant savings.
Sealed Air | Dim Weight White Paper | November 2014
Page 6
Solutions for Increased Protection in Decreased Dimensions
With a 10 lbs item packed in a 14” cube box (14” inner dimensions), the dimensional weight is
19 lbs when taking into account the thickness of the carton wall. Using a Sealed Air packaging
solution that enables denser packaging while maintaining packaging protection would allow us
to reduce the carton size to a 12” cube box. Doing so would save 20.1% when considering the
reduction in cost for the shipping carton and the ground shipping charge.*
Even if increased cost were incurred with packing material, the savings are still compelling.
If switching from 50 cents of a low-performance packing material to $1.00 of Instapak®
foam
or Korrvu®
packaging in order to enable a reduction in carton size, shipping and carton savings
would greatly outweigh these increased packaging costs. If a company were shipping 250 of
these cartons per week, this would still result in a 16.1% savings equating to $31,200 annually.
*Reference prices for Uline single wall C-Flute boxes and FedEx website for 2014 ground shipping charges for zone 5.
EXAMPLE 1
7. Sealed Air | Dim Weight White Paper | November 2014
Korrvu®
packaging uses a strong, highly resilient, low-slip film to surround products, protecting them from
shock, vibration and impact. Its transparent film enables the packaging to serve as both a protective shipper
and an effective display merchandiser, which is visually appealing. Korrvu®
packaging also stores flat and
contains at least 30 percent recycled content, an attribute that is highly appealing to consumers.
Korrvu®
Retention Packaging Korrvu®
Suspension Packaging
Sealed Air | Dim Weight White Paper | November 2014
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Instapak®
Foam Packaging Instapak Quick®
Foam Packaging
Thinking Inside the Box: A Look at Dim Weight Packaging Solutions:
Sealed Air offers several types of packaging solutions that can help companies protect products and
bottom lines with the advent of dim weight pricing. Two of these include Sealed Air’s Instapak®
foam and
Korrvu®
packaging, which provide significant product protection during shipping while taking up minimal
space in the container.
Instapak®
foam expands in seconds to form protective cushions quickly and provide heavy-duty blocking
and bracing because it forms to the item and eliminates void in the container. There are a variety of on-
line Instapak®
systems to provide on-site production, and Instapak Quick®
foam packaging provides the
same protection for smaller operations that do not require an on-line packaging system.
8. Sealed Air | Dim Weight White Paper | November 2014
The Ultipack®
system is similar to the I-Pack®
system in the way the tray is formed, but it uses a
corrugated wedge to secure the items in the tray before placing the lid on the container. The Ultipack®
wedge increases box strength by adding product protection, and the wedge cost is half that of traditional
void-fill material.
Ultipack®
System Ultipack®
Packaging
Sealed Air | Dim Weight White Paper | November 2014
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I-Pack®
System I-Pack®
Packaging
In addition to the environmentally responsible Korrvu®
packaging, Sealed Air’s automated void fill
systems, the I-Pack®
and Ultipack®
systems, make packages made of 100 percent corrugated material
that are “curb-side” recyclable. They are designed for fulfillment operations where the goal is to minimize
costs – shipping, consumables, and operating – while optimizing productivity.
The I-Pack®
system creates more compact packages by removing the unused void. The container forms
around the contents, which ensures the containers fit the items and space is maximized to reduce
shipping costs. This system also produces packages with appealing finished appearances to maximize
customer satisfaction.
9. Sealed Air | Dim Weight White Paper | November 2014
The Mailer Advantage:
Another way to save money with dim weight shipping is to use mailers whenever possible. Because dim
weight shipping charges more for mailing a container than a flat envelope, it makes sense to mail books,
DVDs and other small items that do not require a lot of protection in mailers versus other packaging.
Sealed Air manufactures the most complete line of cushioned, non-cushioned and rigid protective
mailers in the industry, which can be used for a wide range of applications. Jiffy Mailer®
products reduce
shipping weight by eliminating the need for dunnage material, void fill or cushioning.
Another option for companies that like the idea of using Jiffy Mailers®
but prefer a more automated
solution is the PriorityPak®
system. This system is a high-speed product containment and protective
packaging solution with advanced sensor technology that makes it the perfect solution for fluctuating
volume and variable packaging requirements. It creates a compact, custom package that reduces postage
costs compared to packaging with corrugated containers and void-fill materials.
PriorityPak®
System PriorityPak®
Packaging
Sealed Air | Dim Weight White Paper | November 2014
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10. Sealed Air | Dim Weight White Paper | November 2014
Our recent study referenced earlier in this paper – the Sealed Air 2014 Packaging for e-Commerce Success
Survey, conducted by Harris Poll – shows that packaging is playing an increasing role in consumers’ overall
experience with retailers. According to our survey findings, nearly seven in 10 (68 percent) Americans say
they are more conscious of packaging materials and design today than they were five years ago.
Survey findings demonstrate the importance of packaging in the e-Commerce customer experience. Dim
weight pricing changes add another challenge to keeping customers happy while keeping costs down. The
key is to determine ways to maximize packaging efficiency while still delivering on customer expectations
for packages that are visually appealing, reflect the value of and protect the products inside and, in many
cases, also protect the environment.
How much of an impact does packaging have? Additional survey findings revealed that:
• Consumers believe that packaging tells them how much a retailer cares about them and their order
(66 percent)
• Consumers say their relationship with a retailer would be impacted in some way if they received a
broken or damaged online order (58 percent)
– Almost two in five (38 percent) say they would consider purchasing from a competitor
before purchasing from the retailer again
– One in five (20 percent) say they would never use that retailer again
• Consumers feel that packaging reflects the value of the shipment – the better the packaging, the
better the product inside (48 percent)
– This viewpoint is more prevalent in younger purchasers – nearly three in five (59 percent)
between 18 and 34 years
• Packaging is also seen as reflecting a retailer’s environmental commitment (34 percent)
Sealed Air | Dim Weight White Paper | November 2014
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Beyond Dim Weight: Why Packaging Matters
Packaging Reflects on Retailer Packaging Conveys Value of Shipment
18-34Age Range: 35-44 45-54 55-64 65+
66%
48%
34%
Retailer Cares
Value of Shipment
Environmental Commitment
59%
48%
40%
44% 45%
11. Sealed Air | Dim Weight White Paper | November 2014
Dim weight pricing changes do not have to weigh heavily on manufacturers and retailers from a financial or
an operational perspective. By taking proactive steps to prepare for the pricing changes up-front, companies
can help ensure that they are protecting their customers’ products, their reputations and their bottom lines.
Below are ten tips for dim weight packaging success:
1. Remember that size matters: choose the appropriate package based on the size of the item,
and don’t forget mailers as an option.
2. Always use high-quality materials for your package, considering strength, cushioning, durability
and, critical for dim weight pricing, space consumption.
3. If paying based on actual weight rather than dim weight, be conscious of heavy packaging
materials increasing the weight of your package and shipping cost.
4. Optimize your packaging, using only what you need and relying on Sealed Air Package Design
Centers for help.
5. Blocking and bracing items is essential. If your item is stationary and unable to move during
shipping, it will be less likely to sustain damage.
6. Remember that “Fragile” and “Handle with Care” labels do not replace careful packaging.
7. Measure the actual outside length, width and height of the container after packaging when
determining dim weight, as the measurements provided by a box manufacturer are inside
dimensions of the container and do not reflect exterior dimensions of a package.
8. Talk to your carrier representative and examine your agreement to understand your particular
dimensional weight pricing.
9. Keep track of your total shipping charges monthly to make sure you’re not being incorrectly
charged the dimensional weight price.
10. Don’t forget the returns process. Educate your customers that if they are returning one item
from a multi-item order, they should find a smaller package for that one item versus using the
original packaging.
For more information on how to prepare for dim weight
pricing changes, please contact your local Sealed Air
packaging professional or call 800-648-9093.
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Conclusion