DC Velocity - December 2014

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As we approach the close of another year, it is natural for us to ponder recent challenges and to anticipate outcomes for market strategies already in play. By month’s end, we are also sure to be talking about whether retailers and logistics companies were able to meet the ever-increasing order count and shipping demands of the growing online shopping community.

But, what we do know today and what we can count on moving forward is that the case for custom or right-sized packaging is building from a groundswell of support by businesses that make or distribute packaged goods in a variety of industries. There are several reasons for this, such as cost control, product protection, sustainability, and other supply chain factors.

Uppermost among these is the capricious rise of e-commerce and uncertainties that will cause many to find solutions in On Demand Packaging®. This will occur, for example, when domestic dimensional weight pricing changes take place in early January. Not yet prepared, some shippers will soon realize just how much it will cost to ship one cubic foot. If a company’s shipments typically weigh more than 10 pounds per cubic foot or are larger than three cubic feet, this will likely be a non-event. However, the average e-commerce retailer today ships product in a box representing 40 percent air; essentially a product surrounded by 40 percent in lost profit.

The e-commerce industry will have three choices once
this pricing goes into effect: to eat the extra cost; to
pass the extra cost on to the customer; or to modify their
packaging and shipping practices. The most satisfactory
answer—as many Packsize customers that have already
adapted to these changes in the marketplace have
found—will be to adopt a right-sized and right-weighted
system such as On Demand Packaging®.

In addition to avoiding high parcel charges, custom boxes also save money in other areas such as storage space, box inventory management, reduced labor and infrastructure, and improved product protection.

Custom boxes for variable-sized products also produce greater packaging efficiencies for shippers. By reducing shipping volume by 40 percent, fleet efficiency can be increased by 66 percent. And by more intelligently managing corrugated material, a company can save on its raw material costs, address its reliance on void fillers, and reduce its packaging’s overall environmental impact on the planet. The resulting reduced fuel consumption for fewer trucks and airplanes is most certainly a positive outcome for all.

Through On Demand Packaging®, Packsize customers are today realizing customer satisfaction that has measurably improved across several data points. They are achieving supply chain sustainability by creating a perfectly shaped box for every item, and for SKU counts in the thousands. Packsize takes seriously its role in providing smart packaging for a healthy planet and looks forward to meeting the challenges and expectations that a new year brings.