USING DIMENSIONAL DATA IN YOUR 3PL TO LOWER YOUR OVERALL ECOMMERCE Costs

Introduction

In the dynamic landscape of third-party logistics (3PL), precision is paramount. As e-commerce burgeons, the demand for efficient warehousing solutions intensifies. One of the most pivotal innovations in this domain is the integration of volumetrics within Warehouse Management Systems (WMS). This feature isn't just about measuring space; it's about optimizing costs at every turn.

Decoding Volumetrics

Volumetrics, in essence, pertains to the measurement of an item's dimensions and weight. When incorporated into a WMS, this seemingly simple data becomes a potent tool, streamlining various warehouse processes and significantly impacting the bottom line.

The Financial Impact of Volumetrics in WMS

1. Optimized Storage: Accurate dimensions lead to smarter slotting decisions. Items can be stored in spaces tailored to their size, maximizing warehouse space utilization and minimizing storage overheads.

2. Streamlined Picking Routes: With volumetric insights, a WMS can devise the most efficient picking routes, ensuring minimal travel distance, saving time, and reducing labor costs.

3. Accurate Shipping Estimates: Precise volumetric data translates to more accurate shipping cost predictions, eliminating unexpected expenses and enabling competitive pricing.

4. Enhanced Inventory Management: Volumetrics aids in demand forecasting. Recognizing which products (and their sizes) are popular allows 3PLs to make strategic decisions about restocking, storage, and carrier negotiations.

Volumetrics and Modern Freight Costs

One of the most significant areas where volumetrics has a profound impact is in freight costs:

1. Dimensional Weight Surcharges: Carriers often employ a pricing technique based on dimensional weight, which considers both the weight and volume of a package. If a package occupies a lot of space but is light, carriers might charge based on its dimensional weight rather than its actual weight. Accurate volumetric data ensures that e-commerce retailers aren't hit with unexpected surcharges.

2. Right-Sized Packaging: Shipping in a box larger than necessary not only wastes packaging materials but also inflates shipping costs. Volumetrics ensures products are shipped in the most cost-effective, appropriately sized packaging. This optimization directly reduces the e-commerce retailer's single highest cost: shipping.

3. Sustainability and Cost: Oversized packaging isn't just a financial drain; it's environmentally detrimental. Volumetrics promotes sustainability by ensuring minimal wastage, which in turn can lead to cost savings in the long run.

The Role of Volumetrics in Modern Fulfillment Processes

Modern fulfillment isn't just about storage and shipping. It's about delivering value throughout the supply chain:

1. Custom Packaging: With the increasing importance of unboxing experiences, brands seek custom packaging solutions. Volumetrics ensures products are presented optimally, enhancing the customer experience.

2. Efficient Returns Management: Returns are a reality in e-commerce. Volumetrics streamlines this process, ensuring products are efficiently restocked.

In the competitive realm of e-commerce, 3PLs need to do more to lower Client freight costs. A WMS equipped with volumetrics is more than just a feature; it's a game-changer. Yet it’s not enough to simply spend the money for software. An entire organizational change must be made to ensure systems are filled with true and good data. Properly maintains, a volumetric-aware WMS not only streamlines operations but directly impacts costs, especially in the realm of shipping.

At Amplifier, we recognize the transformative power of volumetrics and are dedicated to leveraging its capabilities to offer unparalleled service to our clients.