Why Volume Utilization Isn't Always King
When it comes to parcel shipping, businesses are perpetually searching for ways to reduce costs even as UPS and FedEx increase their general rates on a yearly basis. This has companies evaluating all aspects of the process, from packaging and packout optimization to reducing materials waste and carrier diversification.Let’s think inside the box. Cartonization is the step in the packing process where associates select the appropriate shipping box for the orders being packed. When cartonization is completed manually, it usually involves associates ‘eyeballing it’ with a best guess and some tribal knowledge. For a more efficient approach, you’ll need software that understands the item dimensions, available box dimensions, and any packing rules.As shippers explore more efficient – and sometimes automated – methods, maximizing volume utilization tends to be an obvious first approach. It’s usually a quick fix, but not guaranteed to be the most cost effective.Let’s explore the drawbacks of focusing solely on volume utilization and present alternative cartonization strategies that can save you more money while still ensuring the safety of your products during transit.