Managing operations can feel like juggling a never-ending list of priorities. Finding ways to optimize, stay competitive, and reduce costs is a constant challenge. Deciding what area to focus on first can be difficult in itself.

Packing is an area of operations that is often overlooked yet has a significant impact on your overall efficiency and bottom line. In fact, the way you're packing right now could be costing you more than you realize.

Cartonization is becoming increasingly important to shippers looking to save on costs, increase operational efficiency, and improve customer satisfaction. What worked for cartonization technology in the past won't cut it anymore as more advanced solutions emerge. The shift from legacy liquid fill to 3D cubing and cost-aware cartonization is paving the way for smarter, more efficient packing decisions.

Liquid Fill: The Legacy Approach

Liquid fill has become the go-to cartonization approach used in most Enterprise Resource Planning (ERP), Warehouse Management System (WMS), and Order Management System (OMS). How does it work? It sums up the total cubic volume of items in an order and “pours” them into the smallest box possible. This cost-effective approach emerged in the early days of modern logistics when computing resources were limited. Fitting 3D blocks together, especially with rotations and other variables, was computationally demanding, making more advanced methods unpractical.

Liquid fill cartonization struggles to meet today’s packing demands. For example, oddly shaped items, like a hockey stick, or a large but lightweight product, often are packed in oversized boxes with excess wasted space. Although some systems attempt to tackle hard-to-ship items, they fail to address critical factors like crushable items, hazardous materials, or specific stacking requirements. This inefficiency translates to higher DIM weight charges, dissatisfied customers, and unnecessary expenses. To address these shortcomings and meet modern packing demands, a more advanced solution emerged.

3D Cube: A Step in the Right Direction

The introduction of 3D cubing was a major improvement in cartonization. Using structured algorithms, it logically fits items together, like the game Tetris. This improves packing density and ensures right-sized packages.

A step up from liquid-fill, 3D cubing can be costly from a computational perspective and resource-intensive. It also doesn’t address cost-related factors like DIM rates, material costs, or negotiated rate cards. That’s where cost-aware cartonization comes into play.

Cost-Aware Cartonization: The Future of Parcel Packing

3D cube + cost-aware cartonization builds on the foundation of 3D cubing by factoring in the financial variables that impact shipping costs. This includes:

- Material Costs: Minimizing the amount of corrugated material used.
- Rate Card Breakpoints: Leveraging shipping rate thresholds to save money.
- Operational Constraints: Accounting for real-world challenges, such as splitting orders into multiple boxes to avoid handling surcharges.

Advanced parcel packing intelligence platforms utilize patented algorithms that take all these variables into account to recommend the most cost-effective packing strategy. By analyzing variables like DIM weight, material costs, negotiated rate card breakpoints, and operational realities, these platforms enable smarter packing decisions that directly improve margins.

For businesses, the impact is clear. Smaller, efficiently-packed boxes can cut transportation costs by 6–8%, reduce corrugated material usage/expenses by 14–24%, and save 24–34% on void fill. Beyond saving money, smarter packing improves the customer experience. With less wasted space, products are less prone to damage, and unboxing becomes more enjoyable. This not only builds stronger customer loyalty but also enhances your brand’s reputation.

KAO Brands Right Sizes Packaging

KAO Brands, supported by their 3PL provider Barrett Distribution Centers, faced rising shipping costs and sustainability pressures as their e-commerce business expanded. By easily implementing Paccurate’s parcel packing intelligence platform, Barrett Distribution Centers optimized KAO’s packing strategy and achieved:

• 5.9% reduction in transportation costs

• 33% reduction in corrugated material usage

• 34% reduction in DIM weight

These improvements not only reduced costs but also helped KAO reach their sustainability goals while keeping customers happy.

Evaluate Your Packing Process

Cartonization has come a long way, and legacy approaches are no longer enough to keep up with today’s challenges. By embracing advanced, cost-aware cartonization solutions like Paccurate, shippers can unlock new levels of efficiency, reduce costs, and deliver better customer experiences, all while improving their bottom line.

Ready to leave outdated cartonization in the past and pack smarter? Let’s talk.