How Custom Boxes Can Reduce Shipping Costs by Optimizing DIM Weight Efficiency
Understanding the significance of custom boxes compared to regular shipping packaging for cost reduction relies on the semantics of calculating shipping costs. For example, the shipping cost is determined by the weight and dimensions of a package. Most carrier companies apply (DIM) dimensional weight pricing. DIM refers to considering a package’s dimensions and actual weight to calculate the shipping fee. It is a formula, designed to discourage lightweight packages that are big and take up a significant amount of space in the cargo; this is why most carrier companies have standard shipping boxes that come in various sizes to accommodate the different weights and sizes of the contents. However, they often fail to provide a snug fit, and any additional space inside is considered a part of the package, inadvertently increasing the volume and leading to higher DIM-based shipping charges.
Custom boxes as opposed to the standard shipping box allow for a tailored fit for the products. The area and dimensions of the boxes are customized and particularly constructed to accommodate the product’s requirements. Making them space and cost-efficient.
What are The Benefits of Custom Boxes
- Optimal DIM Weight:
Custom boxes are designed to reduce extra space and allow product-fit dimensions, hence lowering the DIM weight charges, eventually resulting in lower shipping fees.
- Material Efficiency:
Customized packaging eliminates the need for excessive filler materials, reducing waste and the cost of packaging material.
- Enhanced Product Protection:
Custom boxes offer a snug fit, reducing the risk of product damage during transit, and lowering the return rate.
- Branding Opportunity:
Custom packaging allows for extensive customized branding techniques, enabling brand recognition. From weight and size to the type of printingor finishing including embossed or debossed logos etc. and brand-centric color pallets.
Types of Customized Packaging:
- Customizable Mailer boxes
Mailer boxes are easy-to-assemble paperboard boxes with interlocking flaps and wings that don’t require an adhesive. The dual-layered side walls make them more durable and safe for transport than other paperboard packaging.
- Mylar bags
Made from polyester resin, Mylar bags have archival properties and are used for long-term storage. They provide excellent protection against external factors like humidity and air transfer, making them ideal for storing edible contents.
- Collapsible rigid boxes
Collapsible rigid boxes are as sturdy as rigid packaging and can be smoothly flattened out when not in use. They are usually lined with magnetic walls that align together to shape the box. Collapsible rigid boxes have a lot of advantages to offer and can be customized however.
Custom Boxes (A Cost Effective Packaging Solution)
Customizable Mailer Boxes
For businesses looking to explore cost optimisation, custom mailer boxes are versatile and efficient given their lightweight and sturdy structure that can withstand the shipping process while maintaining its integrity and structure. Mailer boxes also allow customizations to fit the product’s dimensions. Other benefits include:
- Ease of Assembling and Secure Closure: Customizable mailer boxes eliminate the need for adhesive tape often featuring interlocking tabs, simplifying the packing process.
- Branding: The boxes can be branded with logos, colors, or text etc.
- Eco-Friendly Materials: Customizable mailer boxes also come in recyclable or compostable materials, catering to environmentally conscious consumers while reducing waste disposal costs.
These features make them ideal for e-commerce companies dealing in cosmetics, apparel, electronics, accessories, etc. Mailer boxes can be fully customized as per the product’s dimensions, which will eliminate the need for additional filler materials to fill the space inside the package. Potentially reducing the cost for filler materials and the regular charges calculated for a standard shipping box. Not only is it cost-effective but also time-saving, as it can streamline the packing, enabling a smooth, hassle-free packaging and shipping process. Without the additional labor of adding fillers to secure the product and fill up the extra space. Shipping-safe
Mylar Bags
Mylar bags are lightweight, durable packaging solutions that resist moisture and odour. They are an excellent choice for businesses that sell edible items, electronics, and basically every product that might require airtight protection.
- Lightweight and Compact: Mylar bags weigh significantly less than custom boxes, helping reduce shipping costs.
- Protection against Elements: Mylar bags provide excellent protection against external factors like moisture, etc., providing an airtight envelope while preserving the integrity and quality of the contents, regardless of environmental conditions. Ensuring a long-term shelf life.
- Customizable Sizes and Shapes: Mylar bags can be tailored to specific product dimensions.
- Sustainable Options: Many manufacturers now offer recyclable and biodegradable Mylar options.
These bags are ideal for companies to ship small, delicate, or perishable items. Mylar bags, in contrast to box packaging, are more cost-saving.
3. Collapsible Rigid Boxes
Collapsible rigid boxes are a great solution for premium products requiring extra protection. Given their sturdy structure, rigid boxes have a high-quality feel. Their collapsible feature allows them to be flat-packed with great ease when not in use, saving additional storage space and making warehouse management easy.
- Sturdy Hardcover: Collapsible rigid boxes are a perfect choice for custom shipping boxes as they are crafted from rigid cardboard material and provide excellent coverage for fragile items.
- Space Efficiency: These boxes can be collapsed and stored into a flat shape when not being used, utilizing minimum storage space, and an advantage over traditional rigid boxes.
- Easy Assembly and Secure Structure: Collapsible rigid boxes are easy to assemble and secure for shipping.
- Cost-effective: Constructed of a single sheet of cardboard or rigid paperboard and despite their various benefits they are considered a cost-effective packaging solution over typical shipping boxes.
- Customizations: Collapsible rigid boxes can also be customized with wrapping paper, and printing coatings like UV embossing, debossing, foil stamping, and other unique finishes.
Brands dealing in luxury apparel, jewelry, electronics, etc. can benefit from using customized collapsible rigid boxes as a shipping method. While they may be slightly more expensive than traditional packaging options, the benefits they offer outnumber the slight price margin making them cost-effective. In addition to this, the added protection and branding potential can justify the initial investment.
Implementing Custom Packaging Solutions to Reduce Shipping Costs via Practical Strategies
Use Data to Optimize Package Sizes
By studying patterns of product dimensions and weight through the analysis of historical data, companies can determine the optimal box sizes for shipments, replacing traditional ones with custom boxes like the mailer box, collapsible rigid boxes, or Mylar bags.
Utilise Software for Integrated Management and Automated Workflow
Many companies use packaging software and integrated management information systems offered by software companies like Epicor or Hiflow. Hiflow MIS and MES allow packaging manufacturers to automate their workflow. For example, they offer thoroughly customized box design and imposition tools for converters or printers for various dimensions. This can help companies optimize box sizes and reduce additional space in the parcel, impacting the DIM charges.
Invest in Customised Multi-Size Packaging Solutions
Multi-size packaging solutions allow for flexible customizations hence, businesses with a wide inventory of various product sizes can efficiently benefit from this. Having a variety of products that fit custom-sized mailer boxes, collapsible rigid boxes, or mylar bags can prevent the need for basic box packaging that takes more space, increasing the shipping fee. Additionally, automated packaging machines can adapt to various product sizes on demand, streamlining the packaging process through a smart automated workflow algorithm.
Collaborate with Packaging Suppliers and Couriers for Best Prices
Teaming up with packaging suppliers can design options for specific shipping requirements. The custom packaging manufacturer should be ranked on their talent and ability to produce the best quality boxes before any other element. In addition to this some suppliers also offer packaging consultations to help businesses identify the most efficient yet cost-effective solutions and free shipping. Seek courier companies like FedEx or DHL for a partnership to offer competitive shipping prices.
Manage longer shipping lead times
Air freight is approximately 12 to 15 times more expensive than via sea and the cost margin can increase given the weight of the cargo (the bigger the cargo, the more it’s going to cost). The charges of air freight are also impacted by general factors like weight, volume, the nature of goods being transported, destination and the time of year. However air freight requires 4 to 5 days for delivery and sea freight takes longer around 10 to 15 days. The typical International air freight rates are calculated between $3 and $7 per kilogram, while ocean freight rates cost around $2 to $4 per kilogram. Ocean or sea freight is generally the cheapest option for goods over 200 kilograms. Conclusively, ordering in advance can help brands save a lot.
Prioritise Sustainable Materials and Practices
Eco-friendly packaging is high in demand, followed by environmental awareness, and many carriers now provide discounts for companies using lighter and recyclable materials. Eco-friendly custom boxes can not only reduce costs but also enhance the brand’s reputation while attracting environmentally-conscious consumers. Apart from a successful business move it is also a responsible choice for environmental safety.
Follow the 5 principles of Lean Manufacturing
For a smooth hurdle hurdle-free process:
- Define value
- Understand the customer’s needs and their willingness to pay for a particular product or service. Focus on the features and and functions the customer values, eliminate the unnecessary.
- Map the value stream
- Map the workflow from product to delivery, and remove steps that do not add value to streamline the process.
- Create flow
- Ensure a smooth flow for value-added activities without bottlenecks, waste is reduced by creating a continuous workflow, and the product or service reaches the customer faster.
- Eestablish pull
- Avoid forecast manufacturing and production by the demand. Minimizing overproduction will reduce inventory costs.
- Pursue perfection
Keep refining the processes to avoid waste and increase value. Lean is a journey
For ongoing improvement, the idea is to strive for perfection in meeting customer
Needs with minimal waste.
Businesses can significantly reduce shipping costs by implementing customized packaging solutions, optimizing box sizes, and partnering with suppliers and shipping companies. This strategic approach will not only save money but also enhance the brand’s reputation. By streamlining packaging processes, companies can stay competitive in the market while boosting their bottom line.
