Utilising automated dimensioning system to Fight dimensional weight pricing

Utilising automated dimensioning system to Fight dimensional weight pricing

Summary

The shift to dimensional weight pricing has pushed small-business shippers to reconsider how they can streamline their delivery processes to prevent large spikes in shipping prices.
FedEx and UPS’s recent decision to expand the coverage of dimensional weight pricing has piqued the attention of fulfilment executives, especially those in companies that ship a high volume of small packages.
To adjust to these dimensional weight price spikes, distribution administrators are looking at ways for streamlining their packing and distribution processes by deploying an automated dimensioning system into the workspace to minimize shipping costs for overweight packages.
In this blog post, we share with you ideation of how we can utilise automated dimensioning systems 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

At present, for all the ground shipments, the dimensional weight (DIM) pricing systems have become an obligatory process which is 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. Companies like UPS and FedEx have a minimal amount of real estate, where every inch of their trailers and delivery vehicles are precious. 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 DIM weight of the package:

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.
The following are six critical questions to remember when deciding how dimension and weight data will significantly reduce the surging Dim-weight price structure:

Why is it imperative for shippers to know the dimension and weight information of their parcels at present?

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.

How can automated dimensioning equipment assist shippers?

We can deploy an automated dimensioning system to the shipper’s workspace to record precise dimensioning measurements and weight details on any package. With these automated dimensioning systems, 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 shipment rapidly.

How are shippers reacting to these new modifications?

Many shippers approach their carriers for advice about brace for the impending transition to minimize the detrimental effect of dim weight changes. They’re still contacting cubing device vendors directly to see how automatic dimension scanning equipment can support them.

What kind of information does dimensioning equipment produce?

By deploying suitable automated dimensioning equipment, we can extract various details like the parcel’s ID/license plate number and the parcel’s range, distance, height, and weight. All of this information is distributed electronically and integrated with WMS and ERP software.

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.

Additional benefits of having accurate dimensional and weight information?

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. 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, and 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 your top priority when devising a strategy to tackle the current
dim-weight shipping regulations.

Conclusion

Fulfilment 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 an appropriate automated dimensioning system to your vertical, you can rapidly uplift the productivity and effectively fight the dimensional weight pricing.

Introducing Intelligence to Dimensioning with vMeasure Parcel Pro - Automated dimensioning system

AI-enabled automated dimensioning systems are built from the ground up to replace the traditional dimensioning approach. The vMeasure Parcel Pro dimensioning solution comes in two types such as parcel dimensioner and pallet dimensioner. These automated dimensioners accurately calibrate dimensional data such as range, breadth, height, and width of various size products in less than two seconds. In addition, with vMeasure Parcel Pro, we can integrate other devices, such as barcode scanners, weighing scales, label printers, and WMS and ERP software.

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