Optimizing every step of the fulfillment process is essential in today's competitive shipping landscape. One often-overlooked area where businesses can drive savings is packaging. Cartonization transforms the way you pack and ship orders by determining the most efficient box for each shipment based on key parameters like dimensions, weight, and utilization requirements.
By leveraging cartonization, businesses can significantly lower shipping costs, reduce waste, and enhance sustainability—all while achieving a strong return on investment. On average, cartonization reduces total shipping expenses by 10–20%, equating to $192,000 per year for mid-size shippers and up to $1.92 million per year for high-volume operations.
Cartonization is the process of optimizing how items are packed by evaluating the best fit for shipping boxes based on several factors:
In addition to cartonization, Smart Packaging enhances your shipping operations by addressing the unique challenges of SKUs requiring separate handling, including items that qualify for SIOC (Ships in Own Container) or SIPP (Ships in Product Packaging). While cartonization optimizes box selection for most items, Smart Packaging ensures specialized items are handled with precision and care.
Efficient cartonization delivers measurable benefits:
Shipping carriers charge based on dimensional weight when a package's size exceeds a certain threshold, even if it’s lightweight. By minimizing void space, cartonization helps ensure smaller package dimensions, reducing these fees.
Example:
A package with 30% void space may incur DIM fees of $10. Optimizing the package to a smaller box could eliminate those fees entirely.
For 1,000 shipments per month, this could save $10,000/month or $120,000/year.
By consolidating items into fewer, well-optimized boxes, businesses can reduce the total number of shipments.
Example:
Shipping 10,000 orders/month at $8 per package = $80,000.
If cartonization reduces box usage by 15%, monthly costs drop to $68,000—a savings of $12,000/month or $144,000/year.
Efficient box selection reduces the use of oversized cartons and unnecessary fillers like bubble wrap, packing paper, or foam.
Example:
Reducing filler usage by 20% for 10,000 shipments could save $0.50 per package = $5,000/month or $60,000/year.
Properly packed items are less likely to be damaged in transit, reducing the costs associated with refunds, replacements, and expedited reshipping.
Example:
If damage claims account for 2% of 10,000 monthly shipments at an average cost of $50/claim, this equates to $10,000/month in claims. Reducing damages by 50% saves $5,000/month or $60,000/year.
By combining savings from DIM fees, shipping costs, packaging materials, and reduced damage claims, businesses using cartonization typically see total cost reductions of 10–20% in shipping expenses.
The savings from cartonization are substantial, particularly for businesses with high shipping volumes. By optimizing box usage, reducing DIM fees, and minimizing material waste, cartonization can deliver a robust return on investment while improving operational efficiency and customer satisfaction.
techSHIP takes cartonization to the next level by automating box selection during the import process.
Here’s how it works:
Define your available box types, specifying dimensions, weight limits, and minimum utilization parameters. techSHIP supports client-specific configurations, allowing flexibility for varying needs.
Input the dimensions and weight of each SKU in your inventory. This critical information helps techSHIP accurately calculate the best fit for each item or group of items.
During the import process, techSHIP automatically evaluates all predefined box options. It chooses the box that:
Example:
Imagine you have four predefined box sizes—Small, Medium, Large, and Extra Large. techSHIP evaluates your shipment and selects the smallest box that satisfies all the criteria. A box too small won’t fit the items, while a box too large could fail the volume utilization check. This precision ensures the most efficient choice every time.
When specific SKUs need separate handling, techSHIP's Smart Packaging automatically removes these items from the WMS's original packaging setup and treats them as individual packages. If cartonization is applied, these items are repacked into boxes matching their specific dimensions, ensuring efficient packing. Meanwhile, items qualifying for SIOC or SIPP are shipped in their original packaging, bypassing unnecessary repacking steps, while the remaining SKUs are cartonized as usual.
Imagine a SKU qualifying for SIOC due to its sturdy product packaging. Smart Packaging identifies this during the import process and ships it in its original packaging without additional repacking. Simultaneously, other SKUs are cartonized for optimal space utilization and cost savings. For fragile or custom items that don't qualify for SIOC or SIPP, Smart Packaging repacks them in boxes tailored to their dimensions.
By integrating Smart Packaging with cartonization, and incorporating SIOC or SIPP protocols, techSHIP delivers a comprehensive solution. This approach empowers fulfillment centers to meet customer demands, optimize shipping costs, reduce waste, and maintain operational excellence.
Cartonization is more than just a feature—it’s a game-changer for businesses looking to optimize their shipping operations. With techSHIP’s cartonization capabilities, you can reduce costs, improve sustainability, and enhance customer satisfaction, all while streamlining your packing process.
For a detailed walkthrough on setting up cartonization in techSHIP, check out our [Step-by-Step Guide].
Ready to save time, money, and resources? Explore how techSHIP can transform your shipping operations! Schedule a call today!