cartons on a conveyor belt in a warehouse

What Is Cartonization? Tools and Techniques

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A leading subscription box company, FabFitFun, was having some cartonization issues. They send quarterly boxes of products to their subscribers. When they started offering their customers the ability to customize the boxes, cartonization became more complicated. They turned to MagicLogic to solve the problem, and they ended up saving millions of dollars each quarter. 

Understanding cartonization

Why would cartonization optimization help a company save millions of dollars? Great question. Cartonization is the process of placing products into a box (or carton), but it’s not just about finding any box that fits. Optimized cartonization means you use the right-sized box for the products with minimal wasted space and a reduced need for filler material.

Have you ever received an online order with a very small product in a box ten times too big? That’s overboxing. To simplify a complex issue, using bigger boxes than needed will cost more money in shipping charges. Obviously there’s more to it. Keep reading. 

Types of cartonization

Let’s start by understanding various types of cartonization relevant to logistics. Each type offers unique benefits depending on the complexity of your product offerings, the volume of your orders, and the level of optimization within your fulfillment process. Knowing which type of cartonization is right for your business will improve efficiency and reduce costs. 

    • Manual cartonization: Exactly as it sounds, manual cartonization means workers manually select the appropriate box size based on their experience or predetermined guidelines. It’s more labor-intensive than other methods and can lead to wasted space, wrong box sizes, and wasted time.  
    • Fixed-size cartonization: A step above manual cartonization, fixed-size cartonization means a specific set of box sizes is used, and products are automatically assigned to the closest matching size. This can be faster than the fully manual process, but it may not result in the most efficient solution, as variations in product dimensions and packing needs are not fully accounted for. 
    • Dynamic cartonization: With dynamic cartonization, algorithms and data are used to automatically select the most optimal box size based on product dimensions and packing requirements. This method ensures the best use of space while reducing material costs and improving shipping efficiency. 
    • Multi-product cartonization: If you need to pack multiple items in a box, that’s multi-product cartonization. For this method, the size and shape of each item must be taken into account to determine how to arrange the products into the box for the most efficient use of space. As FabFitFun found, this can be complicated.  
    • Robotic cartonization: This advanced form of cartonization puts robots to work to automatically select and pack items into cartons. Robotics can significantly speed the process, improve accuracy, and be more efficient, especially in high-volume warehouses and fulfillment centers. 
    • Layered cartonization: This method is particularly good for oddly shaped or delicate items that need to be packed with extra care. Placing the products in layers can improve stability and keep the products safe during shipping.  

 

The cartonization process

The cartonization process can be broken down into the following steps: 

1. Assess your products

Start by taking a good look at your products. Are they large and boxy, small and fragile, or somewhere in between? Understanding the size, shape, and nature of each item is key to figuring out the best way to pack it. 

2. Select the optimal box size

Once you know exactly what you’re packing, it’s time to channel your inner Goldilocks and find the perfect box. Not too big, not too small. Your goal is to fill the space with products to minimize wasted space but make sure it all fits snugly to keep things safe. Also keep in mind that smaller boxes can be less expensive to ship, so the optimal box size can save you money. 

3. Arrange the products in the box

Are you a Tetris aficionado? If so, this is your moment to shine! The key here is to arrange your products in a way that maximizes space and keeps everything secure. That generally means put heavier things on the bottom with fragile items on top, and use filler to keep things secure. 

4. Fill the empty space with padding

You’ll probably have a bit of extra space left, and that means it’s time to add a bit of filler so things don’t shift around too much. You can use anything from crumpled paper to bubble wrap, foam peanuts to air pillows. For especially fragile items, molded pulp is a great option, especially if you want to be environmentally friendly. 

5. Finalize for shipment

Whew, you’re almost there! Next, seal up the box with tape, slap on a shipping label, and give it a quick once-over to make sure everything’s good to go. Now it’s ready for delivery, whether it’s across town or on the other side of the world. 

The role of warehouse management systems in cartonization

When it comes to automating your cartonization, your Warehouse Management System (WMS) isn’t just a bystander—it’s the behind-the-scenes wizard making sure everything runs smoothly. Your WMS plays a starring role when combined with cartonization software:

    • Integrating cartonization software with your WMS: Think of your WMS as the mastermind orchestrating the perfect packing process. By integrating cartonization software directly into your WMS, the cartonization system can automatically select the right box for each product. No more guesswork or last-minute decisions. It’s like having a packing pro on hand 24/7!
    • Real-time data synchronization
      Imagine trying to pack a box without knowing what’s in it—chaos, right? WMS ensures real-time synchronization of all inventory and order data. This means cartonization decisions made by your cartonization software are based on the most up-to-date information, making sure you never over-pack (or under-pack) and always use the most efficient box size for each order.
    • Operational efficiency with WMS When it’s paired with cartonization software, your WMS does more than keeping track of your inventory. It boosts your operational efficiency by automating the carton selection and arrangement process, speeding up packing times, reducing human error, and maximizing warehouse space. The result? More efficient operations with fewer boxes wasted (and everyone’s happier). 

Why cartonization matters

Automating your cartonization is a game-changer for your entire logistics process. Why? It will lower your shipping costs and improve packing efficiency, sustainability, and customer satisfaction. Bold claims, you say? Let me explain:

Lower shipping costs

When it comes to shipping, size matters—literally. When you optimize your cartonization, you’re using the smallest box that fits the product while keeping it secure, and that reduces excess weight and volume (especially if your carrier uses dimensional weight to calculate rates). That reduces shipping costs because you’re not paying to ship empty space. It’s like getting a discount for packing smarter. 

Improved packaging efficiency

Warehouse workers who have to do all the thinking for themselves take valuable time to choose the right size box, try to fit the products in it, and add in the proper amount of packing material. Let’s do some simple math: A warehouse worker may pack 150 packages an hour, which translates to 24 seconds spent on each. If it takes two to four seconds for them to make these decisions, automated cartonization software will save each worker five to ten minutes in an hour. Out of an eight-hour work day, that’s over an hour of their time. Multiply that by 10 warehouse workers, and it starts to add up—especially when you consider that warehouse worker pay has increased by 48% in the last seven years. 

More eco friendly

Optimizing your cartonization will save you more than just money—you’ll also be saving the planet. Using the right-sized box means you’ll cut down on fillers, reducing material waste and reducing your environmental footprint. FabFitFun, the company mentioned at the beginning of this article, reduced their carton packing material by 30% to 35% when they started using cartonization software. It’s packing with a purpose, and it’s good for business (and the Earth). 

Increased customer satisfaction

At the end of the day, customers care about two things: the condition of their products and the speed at which they arrive. Efficient cartonization ensures their products arrive safe and sound, with no unnecessary waste. Customers appreciate receiving their orders in a perfectly packed box with no damage, no excess, and have a great unboxing experience. (Note: Unboxing videos are still going strong. If your brand shows up in an unboxing video, make sure it’s a good experience.)

Innovations in Cartonization

Like everything else in logistics, cartonization is changing rapidly. It’s not just about using the right box, it’s about using the smartest tools available. Watch for these innovations that will change the way we box up our shipments in the coming months and years: 

Advanced robotics

Robotic systems are already making waves in warehouses, and the next frontier will include more intelligent and autonomous robots that can not only pack products but also assess product characteristics in real time. The robots will be adaptable to work with fragile goods to irregularly shaped products and more, with minimal human intervention. This will improve packing speeds, reduce labor costs, and improve accuracy in packing. 

Cloud-based solutions 

The cloud makes cartonization easier and more accessible than ever. A cloud-based cartonization solution allows you to access the needed tools from anywhere, at any time, with no hassle. Whether you’re working from a tablet on the warehouse floor or tracking metrics from the comfort of your office, cloud technology connects it all for smoother, more efficient operations. 

3D scanning and visualization

Warehouses will soon be able to use 3D scanning technology to create digital models of each product, providing precise measurements for cartonization. This will help determine optimal packing methods based on shape and size down to the millimeter. 

Sustainable packing solutions

As the world moves toward sustainability, we will see a greater need for biodegradable and recyclable packing materials. Innovations in compostable packing peanuts, paper-based air pillows, and molded pulp will figure more prominently, and plant-based plastics may become more mainstream. This will produce less waste and a lower carbon footprint for those who embrace these innovations. 

Predictive analytics

Predictive analytics looks at historical data and trends and forecasts future packing needs, helping you anticipate demand and optimizing packing strategies. It’s like having a crystal ball for your warehouse, ensuring you’re always one step ahead in managing packaging and shipping processes. 

Implementing Cartonization With MagicLogic

Want help automating your cartonization? MagicLogic’s Cube-IQ is the most powerful and advanced solution on the market. Here’s why: 

    • Unrivaled speed: Our carton selection response speed is under 100 milliseconds, allowing you to process 100 orders per second with real-time shipment evaluations before the customer clicks. 
    • Customizable solution: Our solution is fully customizable to fit your unique needs, providing the flexibility to adapt to even the most complex requirements. 
    • High-quality coding: Our industry-leading coding ensures top-tier performance and seamless operation. 
    • Adaptive handling of unique-shaped parcels: You can tailor your packing strategies for parcels of all shapes and sizes. 
    • Seamless integration: MagicLogic integrates easily with your existing WM, ERP, and other systems for a smooth transition and continuity in your operations. 
    • Graphical user interface (GUI): Our comprehensive user interface has drag-and-drop functionality with 3D graphics for creating loading jobs.
    • Trusted by the biggest brands: Leading brands like Honeywell, Starbucks, Nestle, P&G, Johnson&Jonson, and The Home Depot use MagicLogic. 
    • 24 years in the industry: We’ve demonstrated enduring reliability and continuous innovation in load planning. 

 

Oh, and one more thing, you can take it for a test drive for free. In fact, many MagicLogic users started with a free trial and found that the savings and efficiency gains easily justified the investment. Optimize your cartonization and start saving today!

How to Read a Box Certificate for Secure Shipping

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Customers take it for granted that their items will arrive properly packaged and, most importantly, in the right box. However, choosing the correct box for every shipment relies on understanding the Box Certificate, or Box Manufacturer’s Certificate, found on the base of most cardboard boxes.

The certificate contains a wealth of information about the specifications of the box, relating to its size, construction, and weight limits. A Box Certificate will tell you if your chosen carton is adequate for shipping a specific order and can provide enough protection for the contents. So, what can you expect to learn from this certificate?

Box construction

The Box Certificate tells you how the box is constructed, for example, if it has a single, double or triple wall of corrugated board.
If you choose a single wall carton, it has a fluted medium inserted between two layers of liner board. In comparison, a carton with a double wall box has two fluted mediums between three liner boards. A triple walled carton has three fluted mediums held between four layers of liner board.

Box weight

The basis weight of the box is given as pounds per thousand square feet and relates directly to the strength of the box. A box with a higher basis weight has greater tensile strength.

Box strength

The box strength weighting relates to burst strength, which is the tensile and tearing strength and is given as pounds per square inch. The burst strength refers to how well the material can contain its contents when under stress. Strength weighting also measures the edge crush strength, which is the compressive strength is measured from top to bottom.

Boxes that need a greater burst strength require a greater basis weight. Boxes that need a better edge crush value will achieve this through the vertically oriented flutes of the corrugated cardboard, allowing manufacturers to lower the basis weight. As a rule of thumb, heavier or denser items need packaging with a greater burst strength, whereas items that need more protection against becoming crushed need a greater edge crush value.

Carton size

The size of the carton indicates the maximum outside dimensions of the completed box when you add together its length, width, and depth. Generally, as the box size increases, its contribution to overall strength decreases.

Gross weight

The gross weight listed on a carton indicates the maximum weight the carton can contain, but this doesn’t necessarily mean contents loaded up to the gross weight will arrive in perfect condition. This depends on several factors that include the product characteristics and the way it is transported.

Usually, the weight limits are more applicable for items that are palletized and which are transported in freight shipments as opposed to those shipped via smaller carriers.

Do I need a Box Certificate?

Determining whether you need a Box Certificate depends on the type of products you are shipping and the shipping methods you use. Consider the following key factors:

Product fragility: If you’re shipping fragile or expensive items, a certified box ensures that the packaging can handle the required protection during transit.

Shipment weight: Heavy items require boxes with higher weight capacity ratings, which are indicated on the Box Maker’s Certificate.

Shipping regulations: Certain industries, such as pharmaceuticals or food products, require certified boxes to meet regulatory standards.

Shipping volume: Businesses handling large-scale shipping operations benefit from using certified boxes to maintain consistency in packaging quality and reduce the risk of damage.

Environmental impact: If sustainability is a priority, using certified boxes ensures that you’re selecting packaging materials that comply with environmental standards.

How to read a Box Certificate

Understanding the information on a Box Maker’s Certificate can be essential for selecting the right packaging. This guide will help you interpret the main sections of the certificate:

Box type: Identifies the type of box, such as single-wall or double-wall, indicating the strength of the box.

ECT/Burst rating: Specifies the compression or burst resistance of the box, helping you select boxes that meet your specific needs.

Manufacturer details: Includes information about the manufacturer to confirm the box’s source and quality.

Box grade: Provides a numeric or letter grade that reflects the quality of the corrugated material.

Selecting the optimal carton

When it comes to excellent cartonization, you can rely on MagicLogic’s BlackBox. The main features of this clever, easy-to-integrate software include cartonization and mixed palletization. The best boxes are selected from your stock order after order, providing near real-time responses that are ideal for use during checkout in e-fulfilment. It supports complex mixed pallet stacking, including robotics, ensuring delicate items are never crushed.‍

Contact us to discover how BlackBox will streamline your cartonization and palletization processes.

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Parcel Shippers Facing a Challenging Market

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Over the past few years, the parcel shipping industry has changed unimaginably. The arrival of COVID, lockdowns, and stimulus cash led to an online shopping boom in every possible sector. E-commerce levels increased substantially, placing the supply chains under considerable strain. Nowadays, even though people can shop at brick-and-mortar stores and shopping malls, their shopping habits have changed, possibly for good, as they have discovered the ease of shopping online and having items delivered to their door. While parcel carriers are enjoying increased earnings and growth, the picture isn’t entirely rosy.

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Current Problems Facing Shippers

Challenges include rising inflation and interest rates, increased living costs, and record-breaking gas prices. The supply chains still aren’t back to normal, with long waits for numerous everyday items remaining very common. Problems are exacerbated by increased COVID cases in China, resulting in a lockdown of many ports and a subsequent delay in shipping. There is also the worry that as fall approaches, an increase of COVID cases in North America could disrupt the supply chain further, particularly if it starts impacting warehouse workers and others who help ensure parcels are packed and dispatched efficiently.

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Forcing a More Innovative Approach to Shipping Parcels

Despite these problems, shippers are finding innovative ways to help keep supply chains moving and hopefully continue to enjoy the growth they have seen in this industry. However, everyone seems to agree that shipping rates will increase and that the fuel surcharges are here to stay for the foreseeable future. As a result, shippers are doing everything they can to avoid awkwardly shaped or ugly shipments that are trickier and more expensive to package and transport. One problem is that a large and ugly shipment can mean there is little or no room left for smaller parcels. As a result, parcel carriers are trying to ensure that bigger and bulkier shipments can generate the same revenue as the smaller parcels that are much easier to pack and ship efficiently.

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Another way shippers are addressing these concerns is by trying to forecast their need for containers, railcars, and ULDs more accurately, maximizing every cubic foot of space. They are increasingly turning to technology to ensure loads are packed correctly and accurately and are directing resources to areas where they can realize the highest returns.

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Excessive packaging remains a concern, with shippers often cubing out a load well before they reach anything approaching maximum weight. This is due to products being packed inefficiently, wasting expensive space and packaging materials, and shipping capacity.
Staffing problems are still a major issue throughout the supply chain. Even when new staff are hired, retaining them isn’t easy. Churn can frequently mean companies must spend precious resources on hiring and training staff who then leave within a short while. The cost of hiring warehouse workers and other skilled staff has increased but persuading customers to accept higher prices isn’t easy.

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Facing the Challenge

MagicLogic has over a quarter of a century of experience helping companies ship products more economically and safely. Over the years, we have helped thousands of companies worldwide achieve substantial savings on shipping costs. Our software minimizes expensive ‘dead’ space in cartons and trucks, shipping containers, railcars, and ULDs.

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How We Can Help

Our innovative software solutions optimize loads efficiently, accurately, and safely, whether you are a small company shipping only a few containers each month or a large multinational shipping thousands of parcels worldwide every day of the year. Our solutions are easily scalable and can grow with your company as you expand your business. We have considerable experience in packing ‘ugly’ or oddly shaped loads more cost-effectively, for example, when shipping furniture or perishable goods. We also offer custom solutions for many industries that have specific packing requirements.

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Planning Your Loads More Efficiently with Cube-IQ

Cube-IQ is an affordable load optimization program. It allows companies to plan loads efficiently, making it easier to predict the need for specific-sized containers weeks or months in advance so they can be ordered well ahead of time. Our intuitive loading rules meet even the strictest requirements, such as axle weights, while ensuring loads are packed securely and stably and arrive in perfect condition. Our load optimization software optimizes fill rates, and we were among the first to introduce a drag-and-drop graphical user interface that is easy and intuitive. Step through the loading plans, print them out, or send them to your warehouse team for accurate and faster packing.

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The software helps reduce the need for costly fill materials and avoids shipping empty and very expensive space. It is also perfect for companies seeking to achieve greener credentials.

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We have deliberately designed a user interface that immediately looks familiar, and with our expert training, we can get people up and running competently within an hour. We offer an excellent support contract to ensure your load planning continues to run smoothly, year after year. You won’t need to worry if your load planner retires or churn because we can ensure their replacement is soon up to speed.

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High-Speed Cartonization and Palletization with BlackBox

Our Windows-based service integrates quickly and easily with any existing or new ERP/WMS. Our experienced integrators can ensure it is up and running in a few days. It is ideal for e-commerce, providing optimal carton selection in real-time so that shipping prices can be calculated at checkout.
Customers requiring palletization will find no better product on the market. We can actually do true mixed case palletization and do it well. BlackBox supports manual and robotic pack stations.

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Put Us to the Test

If better load optimization software is on your shopping list, we invite you to put us to the test. We offer a free evaluation of our products, and our experienced project managers can help you set up test loads and demonstrate the product to you and your team.
Contact us for more information and take the first step toward better load optimization today.

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Answers to 15 Common Load Optimization Problems

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1. Our shipping costs are too high, and containers/pallets are never properly filled.

MagicLogic specializes in high-efficiency container and pallet loading. From railcars to trucks to pallets to ULDs and small parcels. Typical savings are in the 5-20% range and are easily calculated and tracked.

2. We get fined and turned around because our trucks are too heavy or improperly balanced.

Our software can calculate loads taking into account weight distribution front/back and left/right, and can also balance weight across axles, meeting all state regulations and avoiding those pesky fines that mount up so quickly.

3. Our products arrive damaged due to poor loading, resulting in high returns.

Poorly loaded products are the leading cause of damage during transit, as is a lack of support, bracing, and dunnage. As a result, approximately 1 in 10 eCommerce packages arrive damaged, significantly impacting the bottom line. Our customizable loading rules ensure products are loaded according to specified orientation, stacking, etc., ensuring even fragile items are protected and arrive in perfect condition.

4. We rely heavily on tribal knowledge for our loading – what happens when that person leaves or retires?

Our software removes the risk of tribal knowledge by installing an easy-to-use system that will provide consistent results no matter who uses it, and if someone leaves or you take on new staff, we can provide staff training. With the proper training, we can get them up to speed in just an hour or so.

5. We have a high staff turnover – it’s taking too long to train them how to load properly.

Churn / Inexperienced staff who don’t have a clue how to load or stack safely and effectively are trained quickly to use Cube-IQ. Our software is deliberately designed to be intuitive to use, with a loading screen that already looks and feels like an Excel document. With the help of our support team, we can get even the most inexperienced user loading like a pro within a couple of hours at most.

6. We have no idea if our guys are loading products correctly.

With our software, anyone can read the easy-to-follow loading plans. They show step by step how a container needs to be loaded, ensuring it is cubed out correctly and items arrive in perfect condition.

7. We need to automate – we receive thousands of orders daily and need something to tell our team how to pack fast.

Our loading programs can process orders in near real-time, telling packers which carton to use and how to pack items leaving minimum void space.

8. Our new or existing WMS or ERP system is giving poor results- we think we can do better

MagicLogic software integrates seamlessly with new and existing WMS and ERP systems. Often these systems only include a loading program as an add-on, realizing that many users will not utilize it. In comparison, we do nothing but loading software and have dedicated the last quarter of a century to developing our loading software and are still refining and improving it.

9. We have difficulty finding software to meet our unique constraints or requirements.

Our loading rules are fully customizable to meet even the most exacting requirements, ensuring every load is fully compliant and safe. For example, do you have fragile items that can only be packed on top? No problem! Simply specify that in the loading rules. The same goes for other awkward to load items that perhaps can only be loaded in one orientation. Our comprehensive loading rules cover most operational requirements, but if you need something customized we can also customize rules to suit.

10. Our company policy is to become greener – we need to reduce our carbon footprint.

We have all been in that situation where we have received items in oversized cartons, packaged with excessive dunnage to prevent them from moving around during transportation. Our software utilizes the dimensions and weight of items to select the right sized carton, order after order, minimizing fill material while still ensuring items arrive perfectly presented and packaged for the customer.

11. How can we select containers or cartons more efficiently?

Our loading software automatically selects the right containers or cartons for orders. So you don’t need to worry about selecting them or that they won’t be filled correctly. You can even have additional fill items packed to cube out a load when necessary, avoiding paying for empty space in an expensive container.

12. We need to quote shipping costs more quickly.

Once our software receives the order, it immediately calculates the best-sized carton for each order and the shipping costs. It is perfect for busy eCommerce sites.

13. We are struggling with HAZMAT / Liion shipping rules.

HAZMAT and Liion shipping rules are complicated, but Cube-IQ handles them with ease. Our customizable loading rules ensure all hazardous or combustible products are loaded safely, so once packed, then you can ship with confidence; there is no need to check or repack cartons.

14. Our guy spends hours each day planning shipments.

Planning intricate and large loads is time-consuming, even for experienced planners. With our software, all items, their dimensions, and their weight are already imported into the program. It is simply a matter of selecting items and the number required, and the load optimization software does the rest, saving hours of labor costs and packing loads more efficiently. You can even save popular load plans for reuse.

15. We need to order containers well in advance, but it is taking too long to plan loads.

Many of our customers plan loads months ahead, using our software, so they know exactly how many containers of each size to order. With the recent increase in shipping costs, these calculations are even more important than before and ensure customers receive products when expected.Do these problems sound familiar? Contact us to discover more about our load optimization solutions and an online demo.

Accelerating eCommerce Driving Demand for Greener Packaging

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Environmentalists have been urging everyone to choose greener and more sustainable options for a long while, but the increased demand for eCommerce over the past few months has seen their voice grow in stature.
Since Covid-19, consumers have become increasingly sensitive toward packaging. Excess packaging is difficult and cumbersome to recycle, and manufacturers and consumers are increasingly asking for more renewable materials, reflecting the growing aversion toward single-use plastics globally.

Many companies have already risen to the challenge by adopting more sustainable packaging practices and eliminating the need for unnecessary fill material. By ensuring they send out a product in the proper size container, these companies increase customer satisfaction while helping the environment.

Adopting More Environmentally Friendly Packaging Solutions

Usually, eCommerce companies will have a limited range of boxes, adapting these to fit whatever needs packaging. Consequently, they often need substantial filler material such as packing peanuts, paper or plastic. But it is a solution that is becoming increasingly outdated. Nowadays, more companies are using software to pick the right size of the carton for the order.

Choosing the right size carton reduces the need for corrugated cardboard and reduces the filler used to package the item. Also, choosing the correct sized cartons makes the best use of warehouse space and space on the delivery truck. Overall, the company’s carbon footprint size reduces. Using the proper size of the box helps to ensure the product arrives in perfect condition. When a product is packed into an oversized box, it can arrive damaged, increasing costs and resulting in unhappy and dissatisfied customers.

When plastic is needed as packing material, solutions are available, and which help promote recycling. Some companies are now using reusable packing materials and are looking into innovative ways to repurpose plastic waste materials. Companies that use repurposed or recycled content are seen as greener by consumers, something that helps to increase the feel-good aspect of buying a product.

More consumers are demanding companies become more sustainable, without wishing to lose the convenience of ever-faster delivery times, which is where our software can help.

High-Speed Cartonization with BlackBox

Our BlackBox software is the result of years of R&D, cumulating in a list of features that make the system an integrator’s dream. It includes our state-of-the-art loading algorithm, ensuring the best carton is selected from your stock, order after order in near real-time. A lightning-fast response means BlackBox is ideal for use during checkout and pick carton selection and fulfilment. The software uses true 3-D placement of every item, ensuring an optimal solution.

Because items are packed accurately, they are more likely to arrive in perfect condition without creating a cardboard mountain. Find out how BlackBox can help your eCommerce company achieve a lower carbon footprint, without compromising quality or delivery times by contacting us today.

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Overcoming the Challenges of Last Mile Deliveries

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Effectively managing last mile deliveries has always been challenging, but never more so than during the past year. It is one of the fastest-growing and often the most complicated part of a supply chain.

Challenges Facing eCommerce Companies

Demand for all types of goods delivery has increased exponentially, creating major headaches for shipping companies trying to satisfy their customers. A considerable part of the demand has come from the huge increase in e-commerce, and these consumers want faster fulfillment and faster last mile deliveries.

Nowadays, more companies offer online shopping, and consumers have a considerable choice as to how they shop, which places more pressure on brands and retailers to ensure they can adequately meet these demands. Increasingly, companies are offering free shipping for a minimum spend which is often quite low, further eating into the all-important bottom line. Then there is the question of ensuring an adequate supply of inventory to meet consumer demand. The pressure is on to create more efficient delivery premises and to have a good logistics network in place, including transportation for last mile deliveries, and which can meet expansion plans.

Ensuring Your Logistics Network is Ready to Meet Demand and Expand

It is important to know your customer base and understand their needs, so you can meet demands and expand when the time is right. These include product selection and delivery times. You may have some products that consistently outsell others. Think about how best to prioritize this inventory and fulfill orders quickly.

Inventory

While you need an adequate inventory, it can be risky to tie up large amounts of capital with a product that may fail to sell promptly, especially given the fickle nature of consumer demand. Work out the percentage of sales from best-selling inventory and identify items that may be slow to move but need to remain in stock.

Smaller Fulfilment Centers

Adding smaller fulfillment centers nearer to high-density areas can reduce costs and ensure faster delivery for best-selling items. Although adding more fulfillment centers can increase warehousing costs, it will reduce transportation costs and increase sales through more efficient last mile deliveries to customers.

Efficient Packaging

Another important part of the logistics network is the packaging. Inefficient packaging can increase costs greatly, especially for companies that choose to offer free or low-cost shipping. It can also be extremely irritating for customers to receive a poorly packaged item. They may be left with an excess of packing material to dispose of, or the item is more likely to arrive damaged.

This is where MagicLogic can help. One of the main applications of our BlackBox® software is Cartonization. It selects the correct box for eFulfillment orders in near real-time, order after order. Maximum fill rate is its main objective, and it is lightning fast so that the results can be used during checkout. Add sophisticated loading rules into the mix, and you can be sure customers receive well-packaged items in properly sized cartons in perfect condition. Your company saves time and money in packaging costs and fewer returns due to damaged goods.

BlackBox is compatible with any WMS/ERP system, and minimal work is needed to achieve integration. Many companies are already leveraging the power of BlackBox, including multiple Tier 1 logistics service providers. To get an idea of how we could help you, read our case study on Toysmith here.

Contact

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info@magiclogic.com

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