Understanding Dim Weight

Keeping costs low while still providing the best services and solutions to customers will always be the priority of any business. Sometimes, unfortunately, new policies can make cutting costs a lot more difficult.

In an effort to update their value analysis for the space on their trucks and prevent ‘cubing out’ (when a truck runs out of space before it reaches its weight capacity), FedEx and UPS have both made the switch to dimensional weight practices, or dim-weight. This means that all boxes, not just the ones above 3 cubic feet, will be charged for either the actual weight of the package, or the dimensional weight – whichever is greater. This means that all boxes leaving your warehouse have to be measured as well as weighed, adding a whole new element of labor to your shipping process.

Dimensional weight is easy to figure out. Take the length, width and height of a package and divide it by 166 if the package is being shipped domestically and 139 if it is being shipped internationally. The equations look like this:

dim weight domestic

Domestic

dim weight international

International

Although they seem simple enough, these equations can mean bad news for businesses that use UPS and FedEx to ship products to their customers. Unless you’re using a packaging method that actively works to reduce the size of packages without sacrificing the safety and value of your product, you can be sure that prices to ship your inventory will go up.

All companies need to make sure that their shipping departments are aware of this change and knowledgeable about how to help decrease the dimensional weight of packages exiting the warehouse. Another thing to be aware of is bulging. If a box bulges due to poor handling on the shipper’s part, new fees can be incurred due to the dimensional change. If you have had issues with either a disproportionately large dimensional weight or package bulging when you are shipping, a new packaging solution is essential for your company to keep costs down.

There are a number of solutions to the issues imposed by this new policy, and the main one is to use more efficient, low weight packaging. Alternative packaging methods like bags, Surface Guard cohesive packages, and smaller cartons with less air are just a few examples of necessary solutions that will reduce your headache.

Click here to see all of the different solutions from different industry leading packaging companies that R.V. Evans has to offer. You can also visit our contact us page, or schedule a site needs analysis with one of our professional representatives.

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4 Ways to Reduce Packaging Costs and Increase Productivity

“Stretch wrappers are one of the easiest pieces of machinery to cost justify, use, and maintain,” Mark Collins, Vice President of Sales at Orion Packaging, said. A majority of the cost justification comes from both material and labor cost savings. Stretch film is designed and engineered to be stretched (obviously). The interesting part is just how much stretching can save you. By elongating the stretch film, the material becomes much more puncture and tear resistant. Not only does it make the material stronger, but it also increases the load holding ability of the stretch film. Material and labor cost savings are not the only benefit of the right stretch-wrap machine, though.

            •           Material Cost Savings

In terms of material savings, today’s high-performance machines pre-stretch the material by 250 percent or more. This means that every foot of stretch film you use on a role can cover two-and-a-half times as much area that it normally would. A material savings this astronomical is a large contributing factor to cost justification and the great ROI that stretch-wrap machines have. This 250 percent increase often outweighs the 10-20 percent material increase that is seen from hand wrapping or even from some older machines. A majority of stretch-wrap machines often pay themselves back in a year or two, and some in as little as seven months, simply as a result of these material cost savings.

            •           Labor Cost Savings

Another side of cost savings is the reduced labor rates from fully automating your stretch wrap process. Manual hand wrapping involves 100 percent direct labor. This is often time-consuming and leaves room for the element of human error. The next step is semi-automatic wrapping which involves the worker attaching the stretch wrap to the pallet load, starting the machine and then cutting the film tail at the end of the process. This is a little bit less direct labor and allows the worker to perform other duties during the wrapping process. Finally, there is fully automatic wrapping equipment that requires almost no direct manual labor. A conveyor system delivers the load to the automatic wrapping system which wraps and cuts the load, weighs down the film tail, and transports the wrapped load to the staging area for pickup.

            •           Productivity Gains

The productivity that is gained from a fully automated process is something that is harder to measure. Though it is less tangible, it is still very valuable. With less direct labor involved in the wrapping process, workers are able to perform other value adding duties. This lowers labor costs while increasing efficiency in the process.

            •           Customer Relationship

Customers satisfaction is something that is essential to any company. By fully automating the stretch wrapping process, there is a decrease in damaged goods during shipping. This means that the product shows up at the customer’s door in the condition that was promised, improving their trust and satisfaction. A fully automatic stretch-wrap machine also provides a level of quality and consistency that will improve the reputation of your business with customers. When a client is assured and confident that their product will be delivered in a quality wrapped pallet load, consistently, they are more likely to continue doing business with you.

These are just a few of the many reasons why a stretch-wrap machine can benefit your application and provide cost justified savings to your process. To find out more about which stretch-wrap machine would work best in your application contact the R.V. Evans Company at http://www.rvevans.com or send us an email at sales@rvevans.com

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source: http://rvevans.com/Packaging-Solutions/PDF/orion-specifying-stretch-wrap-machine-for-application.pdf