Shipping Lessons from Christmas 2013

With the Holiday season in full swing, we figured it’d be a good time to revisit the fiasco that was last year’s Christmas delivery backlog. As a quick recap, shipping companies couldn’t keep up with demand during the last holiday season, resulting in an unknown number of furious consumers who didn’t receive their packages in time for Christmas.

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No, there isn’t an excuse for oversized boxes any more.

Packsize’s On Demand Packaging® has allowed companies to carry an infinite number of box sizes while still reducing corrugated inventory up to 60 percent for 12 years now. Quite a few companies are able to get a custom fitting box every time they need one thanks to Packsize.

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A manufacturer’s guide to On Demand Packaging®

Manufacturers these days live in a world where their customer wants more for less, and they want it fast. They often have to make small or custom runs of products in a short amount of time. This is the cost of doing business today, but it can take a heavy toll on a manufacturer’s packaging costs.

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Not sure if you’ll get hit with dimensional weight charges? Check this handy chart!

By now you have probably heard that major shipping companies are going to drastically increase prices at the beginning of 2015. Logistics and Distribution Centers are about to feel the pinch as both carriers drop their 3-foot cubic allowance and begin charging dimensional pricing on smaller packages.

The information below will help you understand how carriers will calculate dimensional weight as well as provide some tips for saving money in our new shipping environment. It is more important than ever for you gain full control of your shipping process before the new pricing structure goes into effect on January 1st, 2015.

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The Dimensional Price Increase: Did We Bring This on Ourselves?

Back in January, Brandon Brooks—VP of Strategy and Marketing—wrote an article for our blog about the differences between e-Commerce and fulfillment, and how it was affecting the shipping industry. You may or may not remember, but the big packaging news story at the time was the huge number of last-minute Christmas gifts that were unable to be delivered in time. In a lot of ways, the big two shipping companies got a bum rap whole fiasco.

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How Does Dimensional Weight Work Anyway?

In a surprising move, the biggest shipping companies in the US have announced that they will be applying dimensional pricing to all packages starting in 2015. Previously, only large packages (over three cubic feet in size) would get DIM charges. This new change could potentially lead to the biggest shipping price increase in over a decade.

Since we’re all going to start paying for dimensional weight pretty soon, it might be important to learn how to actually calculate dimensional pricing.

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How Bongo International Cut Their Shipping Costs By 20%

Bongo International lets consumers and businesses ship items to any location across the globe in three days on average. The company was founded in 2007 by CEO Craig Turnbull. As the company grew, packaging become a larger problem. “With over 160,000 customers utilizing our service worldwide, we recognized the need to find a more efficient packaging solution for international deliveries,” said Turnbull. This led the company to start researching Packsize’s On Demand Packaging®.

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What dimensional price increases mean for your business.

A recent article in the Wall Street Journal is reporting that a major shipping company is planning to add dimensional charges to all ground shipments starting in January, 2015. Before this change, only packages measuring three cubic feet or more were priced this way (boxes that are 3 cubic feet in size are about 17″ x 17″ x 17,” by the way). All air express packages are already priced by size plus weight. What does this mean for your business?

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How Does On Demand Packaging® Cut Your Inventory Costs?

When potential customers first hear about our packaging solutions, they like to immediately start thinking about all the ways that On Demand Packaging® will save them money. There are a bunch that immediately come to mind (and that we’ve written about extensively in the past)—less corrugated spend, smaller dimensional charges, less waste from damaged products, reduced void fill, etc.

But one of the less obvious ways Packsize saves you money is the tremendous effect on your inventory costs.

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Four Side Effects of Packsize Packaging That You Might Not Know About

We talk quite a bit about the obvious benefits of On Demand Packaging®. It’s obvious that smaller boxes reduce the amount of corrugated cardboard that you’ll use, and that using less material is a good move for sustainability.

But there are quite a few other benefits that Packsize offers that aren’t quite as conspicuous, and that you might not have immediately thought of after hearing our value proposition. Here are a few for you to consider…

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