According to research, most D2C parcel shipments are 50% dead air, and up to 64% air in some product categories. There are several reasons for this, including fast-paced fulfillment environments and inadequate box selections.
Taking air out of every shipped package is a great way to reduce costs and SCOPE-3 emissions. But we can go further.
To truly optimize shipments for cost, you have to incorporate external cost structures into the box selection. Labor costs, material (fill and corrugate), and negotiated carrier rate tables all affect the best box(es) to use for any given shipment.
This level of optimization at the packing step has a ripple effect. Most importantly, it reduces the number of trailers required for the same number of shipments. In this way, right-sizing provides resiliency against capacity constraints.
“The cost to value ratio is off the charts. I've never seen anything like it.”
- Rick Gemereth, CIO at Lionel LLC