Why Parcel Shippers Are Suddenly Focused on Packing Efficiency
Unboxing should be exciting, but sometimes, it can be a disappointment. A massive box filled mostly with air, void fill, and, somewhere inside, the product that was actually ordered. This frustrating experience is a clear sign of a growing problem. Excessive packaging isn’t just wasteful; it’s expensive, damaging to a brand’s reputation, and leaves customers dissatisfied.
Today, parcel shippers are rethinking the way they pack. This shift is driven by rising costs, changing customer expectations, and a growing need for sustainability. Businesses are realizing that packaging efficiency isn’t just a nice-to-have but a strategic necessity.
The Rise of Consumer Expectations
Gen Z and millennials are reshaping the way brands think about packaging. These shoppers are tech-savvy, environmentally conscious, and very vocal. With 32% of Gen Z shopping online daily, their purchasing power is undeniable. More importantly, 72% of Gen Z believes companies should be held accountable for their environmental impact. Not afraid to act, Gen Z will boycott brands that fail to align with their values or share bad unboxing experiences on social media. Poorly packed shipments have gone viral, garnering thousands of views and turning packaging mistakes into public relations nightmares.
Glossier, the Gen Z favorite makeup brand, learned this the hard way. Customers took to social media platforms, including Instagram and Reddit, to criticize the brand's excessive use of cardboard and plastic in their packages. This backlash tarnished Glossier’s reputation as an environmentally conscious brand and ultimately contributed to the discontinuation of an entire product line.
Excessive packaging, once a minor annoyance, has become a business-critical issue. It’s no longer just about cost savings. Companies are shifting focus to protect brand reputation and ensure customer loyalty in a highly competitive market.
Climbing Costs for Shippers
Shipping inefficiencies both frustrate customers and drain resources. Rising material costs, such as corrugated and void fill, have already squeezed margins. Add to that two consecutive years of record-high general rate increases (GRIs) from major carriers, 6.9% in 2023 and 5.9% in 2024, and the financial burden becomes significant. Dimensional weight pricing (DIM) amplifies these challenges. When boxes are larger than necessary, carriers charge shippers for wasted space. For e-commerce brands managing tight margins, these penalties add up quickly, making inefficient packing a direct threat to profitability.
Automation-Induced Bottlenecks
Warehouse automation has made a significant impact on the supply chain and logistics industry, especially in e-commerce fulfillment. Technologies like Autonomous Mobile Robots (AMRs) and Goods-to-Person (G2P) systems have made picking faster and more efficient, helping businesses keep up with demand. However, this boost in throughput has created a new challenge: bottlenecks at packing stations. The increased throughput is overwhelming packing operations, exposing inefficiencies that now require smarter solutions.
Pressure for Sustainable Packing
The average parcel is half-empty, and every year, 2.5 billion corrugated boxes go to waste. That’s equivalent to cutting down 16.6 million trees or producing 100 million tons of CO2 emissions.
With environmental concerns rising, stakeholders, shareholders, customers, and employees demand greener practices. The EU is introducing stricter emissions regulations, with the U.S. following closely behind. Materials like corrugated boxes and void fill are under increased scrutiny, leaving businesses with little choice but to adapt.
Optimizing packing efficiency presents an enormous opportunity for businesses to align with global sustainability goals while reaping financial rewards.
The Path Forward: Better Packing
Is there one solution for all these packing inefficiencies? Yes, cartonization. This process identifies the best box or boxes for a shipment, and its sophistication can range widely. Cartonization can be as simple as reading a Post-it note with packing instructions to advanced algorithms that optimize every aspect of the process.
Most Warehouse Management Systems (WMS) use a basic liquid fill approach, which calculates the total cubic volume of an order and compares it against available box sizes. If the volume fits, it’s assigned to a box. It’s practical but far from optimized.
A step up from this is 3D cartonization. This method generates 3D images that help packers visualize how to fit items into a box more effectively. While this improves packing accuracy, it doesn’t solve cost and efficiency challenges. Modern cartonization technology has taken cartonization even further.
Today, 3D cost-aware cartonization is the new standard for smarter, cost-efficient packing. These solutions go beyond just fitting items into a box. Parcel packing intelligence platforms like Paccurate incorporate negotiated carrier rate cards and packing rules to determine the most efficient and cost-effective packing strategies. This approach can make the difference between a profitable and unprofitable e-commerce shipment.
Paccurate calculates the optimal pack by accounting for factors like dimensional weight (DIM), split shipments, and negotiated rate cards. This not only reduces transportation costs but eliminates wasted materials. Businesses use Paccurate’s 3D cost-aware cartonization technology to gain a competitive advantage. Better packing means lower material and transportation costs, a better unboxing experience for customers, and reduced environmental impact.
Now picture the ideal delivery: a right-sized box filled with your order. Less air and less void fill. Inefficient packing is a solvable problem. By embracing smarter packing practices, businesses can reduce costs, improve sustainability, and enhance the customer experience.
Want to learn more about 3D cost-aware cartonization? Let's talk.