Inbound Logistics | January 2022


Reducing Small Parcel Shipping Costs: Here’s Where to Begin

Q What do I need to implement Cartonization software efciently? A To get the best results, you need two things. First, you need to automate the process. Our software connects seamlessly with anyWMS/ERP and functions almost like a “plug-in” giving you access to advanced Cartonization capabilities that support an unparalleled number of rules and operational constraints. Secondly, you need accurate product dimensions and weights. When we receive good quality data from customers and run it through our software, we can achieve extremely good, predictable results. Unfortunately, many companies fail to realize the importance of using proper dimension- ing equipment and how this will ultimately reduce their costs. For example, dimensioning equipment scans andweighs items to provide accurate data but can often provide other inter- esting and vital information such as whether a product can be compressed or folded or nested. These factors canmake a tremendous differ- ence in achieving substantial savings. Q Your software runs with any existing WMS, but how can I integrate it? A Our BlackBox software for high-speed Cartonization runs as aWindows service and supports many industry-standard APIs for easy integration intoWMS, TMS, ERP, and even legacy systems. BlackBox can be configured to operate with any systemavailable that generates data to a standard schema and can be running and providing savings within a very short timeframe.

Q The cost of shipping small parcels is constantly increasing, so how can I reduce and control these expenses more easily? A Global supply chains are still being impacted by COVID-19, and will likely remain volatile for the foreseeable future. Unprecedented volume is also a huge contributor to these costs. According to, the global parcel shipping volume in 2020was more than 131 billion parcels, a figure they predict will double in less than six years, reaching 266 billion parcels by 2026. So, providing accurate shipping costs, and managing these costs effectively, is more important than ever before. If you cannot, you will likely paymore than you need, and often a huge part of the problem is due to incorrectly sized and/or poorly packed cartons. We frequently find companies have a limited selection of cartons that are outdated for the products currently shipped, resulting in items being packed in cartons that are too big. Consequently, the cartons are packed out with costly dunnage, and shippers pay to transport empty space. Good Cartonization software eliminates this problem, using the weight and dimensions of objects to select the correct sized carton, assisting with accurate shipping cost calculations in near real-time when the customer places an order, essential for any e-commerce site. At the same time, packers are shown how to pack the items properly, requiringminimal fill while ensuring items arrive in perfect condition.

Tim Smith CEO MagicLogic Optimization Inc. 206-274-6248

66 Inbound Logistics • January 2022

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