APPLICATION ARTICLE
The New DIM Weight Rules You Need to Know How companies are using automated packaging solutions to combat increased shipping costs. Shippers have been dealing with DIM weight for over five years, but now new rules are being implemented by one of the largest carriers: the United States Postal Service (USPS). Just last month, USPS began a new DIM weight policy that applies to all parcels over one cubic foot and traveling less than 600 miles. This means packages that were exempt from USPS’ DIM weight will now be charged either DIM weight or actual weight, whichever is largest. Adding to the bad news, the divisor of the USPS DIM weight formula (length x width x height / carrier-specified divisor) has lowered from 194 to 166. This keeps pace with other major carriers like FedEx and UPS, but it increases costs to shippers. While some say this new policy change was done to compensate for the increased costs of delivering larger items, it is apparent this update will greatly incentivize shippers to use the smallest parcel necessary for all customer orders. Shippers will also begin prioritizing the reduction or even the elimination of void fill materials. Turn to Automated Packaging Solutions The average e-commerce shipper uses just 65% of box capacity, wasting a lot of parcel space and requiring the use of void fill materials like bubble wrap, paper and air pillows. This equates to higher shipping and material costs. So how should shippers combat these new DIM weight rules while saving on costs? The answer: automated packaging solutions. These systems measure, construct, seal, weigh and label each order in a custom-fit parcel in as little as seven seconds using only one operator. Some solutions, like the CVP Automated Packaging Solution, also auto-box single- or multi-item orders
as well as produce parcels for soft or hard goods without any additional equipment or operator. This proven auto-boxing technology generates highly effective packaging and optimizes all steps of parcel fulfillment while saving on labor, shipping and material costs. These systems can also be utilized in a variety of industries, including e-commerce, retail, third-party logistics (3PL), wholesale and manufacturing. Boost Business The shippers that have already turned to the CVP to combat DIM weight have found a 32% decrease in shipping and DIM weight costs as well as a 50% reduction in shipping volume. They have also used 29% less corrugated material, saving even more on shipping materials. There have even been 88% savings in packaging labor, helping to offset the current packaging labor shortage. This innovative packaging technology will automate order fulfillment and streamline the supply chain, all while conquering DIM weight and the new carrier rules or changes happening yearly. It’s your turn to expand your business with automated packaging technology. Contact us now for more information about our autoboxing solutions and the ROI opportunities that can save your business on labor, DIM weight, shipping and material costs.
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