Start Right Sizing Your Packaging for DIM Weight ChangesPosted on June 11th, 2014 by leamancontainer
FedEx Ground services will now apply dimensional (DIM) weight pricing to ALL packages starting January 1, 2015. Currently DIM weight pricing is only applied to packages measuring three cubic feet or greater.
What is dimensional weight, you ask? Dimensional weight is the volume of your package = (L x W x D) / 166. If the dimensional weight is greater than the actual weight of the package, you get charged for the dimensional weight.
Below are 2 examples of the cost impact.
In order to reduce these costs, it is critical to start evaluating your packaging before the changes take effect in January. “Product and parcel packaging evaluation is becoming a critical portion of our solution’s portfolio. Businesses need technical box manufacturers with not only analytical and design skills, but also short lead times and the ability to run smaller lot sizes, so their customers can have the proper assortment of boxes required to mitigate DIM Weight penalties.” said Jason Kruger at Leaman Container, a Dallas-Fort Worth based corrugated box manufacturer.
In additional to shipping cartons, it is also critical to look at the packaging for the product itself. Reviewing the inner pack and void fill along with the product presentation can reduce the size the box and thus provide DIM Weight and packaging savings.
A shipping manual with documented processes and procedures on how to package and ship products is also recommended. Training of the shipping team is extremely important to keep costs in check.
No longer will companies be able to afford ground shipments that look like the picture below. Before, all this air space would often cost them a few extra dimes in extra corrugated box material and air pillows, but going forward they may be paying extra dollars for that extra air they are shipping.
That being said, this doesn’t have to be all doom and gloom, there is a way out or to at least minimize this cost increase. It all starts with right sizing and/or optimizing your packaging and over packaging strategies
The below link will take you to a DIM Weight Calculator provided by Leaman Container Inc.