Did you know that it is estimated that today, only half of the volume of a package is occupied by the product? But what about the rest? Emptiness, padding and that takes up space. At the same time, reducing transport costs is one of the challenges for businesses. There are a large number of tips for this, such as reducing dimensional weight. But what is dimensional weight exactly? How do you calculate and reduce it? Let's find that out together.
For carriers, the dimensional weight is a calculation method based on the volume of a package. When a package is too light and takes up too much space, the rate is no longer calculated according to its real weight, but in relation to a fictional so-called volumetric weight. This system is used in e-commerce companies or road or air transport companies. Carriers charge very dense packages (not bulky, but heavy) in relation to their real weight. Packages with medium to very low density (therefore light or very light) will be invoiced by the method of calculating the dimensional weight.
Calculating the dimensional weight is not difficult; there is a very simple formula. Multiply the length with the width and the height. Then, divide the result by 5000 (being the volume factor): (L x W x H in centimeters) /5000. example :Suppose you want to send a package whose actual weight is 3 kg. Now, it is a very light object that fits in a cardboard 50 cm long, 30 cm long, 30 cm wide and 30 cm high. Applying the formula, you will have:Volumetric weight = 50 x 30 x 30 cm/5000 = 9So you get a volumetric weight of 9 kg. So, the actual weight (3 kg) is less than the dimensional weight (9 kg). Thus, for this package, the rate applied for the billing of its transport will be based on the latter. However, if the package weighed 10 kg for the same volume, the rate applied would be based on this real weight.
GOOD TO KNOW: The volume factor may vary from one carrier to another and from one mode of transport to another (boat, road, plane). It is important to inquire well in advance.
All sectors of activity could use this dimensional weight calculation system. However, in general, e-commerce (or online sales) is the first to be concerned with dimensional weight. Indeed, it represents a considerable part of express transport. Just like industries that operate on a just-in-time basis such as the medical field, very expensive equipment such as those in the aeronautical field. This is also the case for international parcel delivery. These sectors are systematically invoiced on the basis of dimensional weight.
Now, the selection of packaging in order to reduce the void, lighten and control the cost is becoming an issue. The type of product, its fragility, its size and its real weight are all criteria to consider. Packaging manufacturers quickly revised and diversified their offer by offering increasingly compact cartons by suggesting flat, modular packaging, envelopes and flexible pouches. The latter have an additional advantage, that of slipping into the letterboxes. In addition, the choice of filling materials each lighter than the other has greatly expanded. The weight of the packaging as well as that of the padding have a significant impact.
In any case, the more tightly wrapped a product is by its packaging, the less it will cost to transport it, especially when the rate is based on dimensional weight.
Once you understand how to calculate the dimensional weight, you can reduce the weight of your package to minimize transport costs. To do this, you can proceed in four steps:
You saw above that billing based on dimensional weight is mandatory when you opt for express or international delivery. You must therefore make sure that you really need this delivery service. This is certainly unequivocal when it comes to international delivery. The question does not arise if your business takes place outside the national territory. But in the case of express delivery, you must think carefully about the need for this service.
By thinking back to the real needs of the recipient, it is possible to save money in terms of transport budget. Just don't make excessive use of express delivery.
This second step consists in reducing the cost of your goods. To do this, it is necessary to manage the dimensional weight carefully. You need to analyze your parcel shipping habits in order to adopt a more rational practice. First, you need to analyze the dimensions and weight of your packaging. Consider the dimensional weight of each of them, and calculate how often you send them. Then, break down the shipments by billed weight group. The best way to do this is to stick to the rate schedules that carriers suggest. In general, this is a range of 500 g to 1 kg. Once drawn up, this table will allow you to identify the weight ranges that carriers apply to your invoices.
After these two steps, you can focus on the most important part of your optimization of dimensional weights. This is your packaging range. After this slice analysis, you need to find intermediate packaging dimensions. The objective is not to exceed the various density weight ranges that carriers offer. To do this, you need to know the following tips:
There is a very wide choice of pouches. They can be made of plastic, quilted, kraft paper or cardboard. Ultra light, they can be upholstered on your products to reduce the volume to be shipped. Provide high-capacity pouches for high-volume items. They also exist for larger items such as shoeboxes.
Flat packaging boxes provide more effective protection than pouches. In addition, they allow packages to be sent by minimizing their weight/volume ratio.
The adaptable cases have grooves that you can easily cut to make adjustments. You can thus cut the goods it contains in order to reduce the volume of the package to a minimum.
You should favor standard format packaging. It is an effective basic tip to make your freight budget more rational.
In addition to optimizing the weight and volume ratio of your packages, you can go even further by reorganizing your storage system. Indeed, carriers have a more suitable range of packaging thanks to this optimization. As a result, order preparation, packaging and stock management are becoming more complex. For everything to be flawless, you need to optimize the operators' workstation.You need to provide team training for calculating the ratio of weight and occupied area. This optimization will be successful provided that the decision taken is good in terms of size and weight. To do this, operators must have some knowledge of dimensional weight in order to be effective in reducing transport costs. To do this, do not hesitate to use concrete figures, this will give them a more precise idea.
In short, reducing the dimensional weight of your packages contributes very significantly to the reduction of your transport budget. Choice of delivery, analysis by batch of shipments, choice of packaging and reorganization of warehousing are the keys to this reduction in costs based on dimensional weight. Also discover 5 effective actions to reduce your packaging costs in this article.