Keeping costs low while still providing the best services and solutions to customers will always be the priority of any business. Sometimes, unfortunately, new policies can make cutting costs a lot more difficult.
In an effort to update their value analysis for the space on their trucks and prevent ‘cubing out’ (when a truck runs out of space before it reaches its weight capacity), FedEx and UPS have both made the switch to dimensional weight practices, or dim-weight. This means that all boxes, not just the ones above 3 cubic feet, will be charged for either the actual weight of the package, or the dimensional weight – whichever is greater. This means that all boxes leaving your warehouse have to be measured as well as weighed, adding a whole new element of labor to your shipping process.
Dimensional weight is easy to figure out. Take the length, width and height of a package and divide it by 166 if the package is being shipped domestically and 139 if it is being shipped internationally. The equations look like this:
Although they seem simple enough, these equations can mean bad news for businesses that use UPS and FedEx to ship products to their customers. Unless you’re using a packaging method that actively works to reduce the size of packages without sacrificing the safety and value of your product, you can be sure that prices to ship your inventory will go up.
All companies need to make sure that their shipping departments are aware of this change and knowledgeable about how to help decrease the dimensional weight of packages exiting the warehouse. Another thing to be aware of is bulging. If a box bulges due to poor handling on the shipper’s part, new fees can be incurred due to the dimensional change. If you have had issues with either a disproportionately large dimensional weight or package bulging when you are shipping, a new packaging solution is essential for your company to keep costs down.
There are a number of solutions to the issues imposed by this new policy, and the main one is to use more efficient, low weight packaging. Alternative packaging methods like bags, Surface Guard cohesive packages, and smaller cartons with less air are just a few examples of necessary solutions that will reduce your headache.
Click here to see all of the different solutions from different industry leading packaging companies that R.V. Evans has to offer. You can also visit our contact us page, or schedule a site needs analysis with one of our professional representatives.