Summary
The shift to dimensional weight pricing has pushed small-business shippers to reconsider how to streamline their delivery processes to prevent large spikes in shipping prices.
The recent decision by FedEx and UPS to expand their coverage of dimensional weight pricing has grabbed the attention of fulfillment executives, particularly those in companies that ship a lot of small packages.
With these dimensional weight price spikes, distribution administrators are looking at ways to streamline their packing and distribution processes by deploying automated dimensioning equipment into the workspace to minimize shipping costs for overweight packages.
This blog post explains how we can utilize automated dimensioning equipment to Fight dimensional weight pricing.
Written for:
- Warehouse Automation Manager:
Incorporating and managing security activities and ensuring efficient and secure warehouse equipment utilization.
- Business Strategist:
Effectively analyzes the daily operations, managing systems, and optimizing day-to-day warehouse tasks.
- Operations Specialist:
Sets an organizational benchmark for meeting yearly milestones and monitors the staff. Also, responsible for developing structural and cost-cutting strategies for the organization’s development.
An Introduction To Dimensional Weight (DIM) Pricing
Presently, dimensional weight (DIM) pricing systems are mandatory for all ground shipments, causing a terrible problem with parcel deliveries. A few years before, UPS and FedEx reported that all shipments would be subject to the latest Dim-weight charges. This DIM pricing would have a direct effect on ground freight shipments of oversized and lightweight packages.
So, here’s the point where we need to understand the necessity of the DIM weight pricing. UPS and FedEx, for example, have a minimal amount of real estate, and every inch of their trailers and delivery vehicles is valuable. Currently, space has become heavy prized as the volume of goods continues to soar. However, the growth of eCommerce is increasing each year, and space becomes a more valuable asset.
It’s no wonder that carriers’ shipping containers and delivery trucks are small in space. DIM assists them in maximizing delivery fees by measuring the area occupied by a package rather than the total weight. In this way, a lighter package would not always mean a lower shipping cost (and neither does a small heavy box).
So, how do you calculate the dimensional weight pricing?
Below is the formula for calculating the packages DIM weight:
Dimensional (DIM) weight = (Length x Width x Height) / DIM factor
DIM pricing provides freight carriers with several benefits and rewards. The most notable advantage is that it helps them to incorporate volume-based pricing into their shipping processes. As a result, the income generated from the space available on trucks and shipping containers is maximized while completing the deliveries is reduced (for example, fuel costs).
Dimensional weight also assists sellers in choosing the appropriate box to transport their goods. They can drop shipping costs using boxes with dimensions within the product’s minimum requirements. These minimum requirements should include extra stuffing or bubble wrap for fragile items.
Here are six critical questions to keep in mind when deciding how to reduce the surging Dim-weight price structure:
1. Presently, why is it essential for shippers to know the dimensions and weight of their parcels?
Shippers must use the parcel’s dimensions and weight information when processing ground shipments after UPS and FedEx introduced dimensional-based shipping charges on ground freight parcels in recent years. If they don’t, their carrier would almost definitely slap them with significant “back-charges,” which they won’t be allowed to pass through the products to the customer’s doorstep.
2. How can automated dimensioning equipment assist shippers?
We can deploy automated dimensioning equipment to the shipper’s workspace to record any package’s precise dimensioning measurements and weight details. With these automated dimensioning equipment, we can perform various operations like measuring the small and large parcel dimensions, effectively capturing parcels’ images, and printing invoices by integrating the dimensioners with the label printers. We can also incorporate other devices like barcode scanners, weighing scales, and ERP/WMS software. With all this dimensional information, shippers can complete their shipments rapidly.
3. Is the behavior of shippers changing in response to these modifications?
Many shippers approach their carriers for advice about brace for the impending transition to minimize the detrimental effect of dim weight changes. However, they’re still contacting cubing device vendors directly to see how an automated parcel dimensioning system can support them.
4. What kind of information does automated dimensioning equipment produce?
We can extract details like the parcel’s ID, range, distance, height, and weight by deploying suitable automated dimensioning equipment. All of this information is distributed electronically and integrated with WMS and ERP software.
5. How do the dimensional and weight data assist in negotiating carriers' "back-charges"?
If the dimensioning equipment is registered legal-for-trade, the shipper could likely settle billing conflicts by providing a package that is measure by certified dimensioning equipment.
6. Aside from providing accurate dimensions and weights, what are the additional benefits?
The ability to use accurate dimensional data to optimize packaging and allow shippers to ship in smaller boxes with less void fill and the air is perhaps the most significant benefit of having accurate dimensional data. The only way to quickly minimize the adverse cost effects of the UPS and FedEx dim-weight adjustment is to ship smaller boxes. Therefore, the shipper must provide correct dimensional information about the objects shipped to choose a suitable package size to carry in smaller crates.
With the relevant dimensioning and weight information, we can track the flow of inventory—these dimensioning data aids in improving the workflow. With the right dimensioning system, we can also produce real-time products information, which would be more beneficial to generate the products’ forecast reports.
Render dimensioning equipment is your top priority when devising a strategy to tackle the current dim-weight shipping regulations.
Conclusion
Fulfillment is an essential aspect of both marketing and consumer engagement strategies. When people see your brand, it determines how they see you. To summarise, dimensional weight pricing is a method used by major shipping firms to measure packages based on their size and their actual weight. So, if you’re transporting lightweight but heavy packages, you might demand to pay a higher shipping price if the freight carrier uses DIM weight pricing.
By deploying appropriate automated dimensioning equipment to your vertical, you can rapidly uplift productivity and fight dimensional weight pricing.
