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Non-food Consumer Goods
WHY ‘RIGHT-SIZING’ YOUR PARCEL PACKAGING IS GOOD FOR THE PLANET, AND THE BOTTOM LINE
2024-07-23
Every day, retailers and businesses waste massive amounts of money shipping boxes that often are more than half filled with air. As consumers, we are all but addicted these days to home delivery of all types of products. U.S. carriers alone delivered 58 million packages every day in 2022.
Worldwide, 161 billion parcels were shipped in 2022, according to Pitney Bowes. In its latest Parcel Shipping Index, the global shipping and mailing company says that works out to more than 5,100 parcels per second. The vast majority of those –– perhaps up to 90 percent –– ship in corrugated cardboard packaging.
And yet, notes Paccurate Inc., “the average shipment contains up to 64 percent air in some product categories, far higher than the mere 25 percent of empty space per package which e-commerce executives have estimated in a recent survey.” This practice costs everybody in the value chain –– retailers, shippers, consumers –– money and it negatively impacts the environment.
And the problem is only likely to get worse. Pitney Bowes states: “We forecast global parcel volume to most likely reach 225 billion by 2028, with a 6 percent compound annual growth rate (CAGR) from 2023–28.”
SUPER-CHARGING CARTONIZATION
Paccurate (www.paccurate.io), based in Brooklyn, N.Y., develops APIs, or application programming interfaces, that interact with software designed to optimize the size of shipping boxes to maximize efficiency and minimize waste. The technical term is “cartonization.
The company, which describes itself as the leading cartonization platform for shipping and fulfillment optimization, says its patented technology is different. “Unlike legacy solutions that only utilize 3D simulation and limited variables, Paccurate accounts for critical external factors like labor, material and complex carrier rates to create a truly cost-optimal packing solution. With a lightweight API, Paccurate is an easy drop-in upgrade to existing systems, supplying users with dynamic, real-time suggestions in a short time.”
“Cartonization,” explains Paccurate, “refers to a step somewhere in an order lifecycle where the correct box configuration is determined for optimal shipping. It's a piece of the supply chain puzzle that's becoming more and more critical as e-commerce explodes and parcel carriers struggle with capacity.”
It says users can access its 3D cartonization engine via two different but related products –– Paccurate API and PacSimulate. The firm notes that typically three things are required to implement cartonization: item dimensions; box dimensions; and item/business rules and constraints.
“Adding any kind of automated cartonization to your fulfillment process can have dramatic effects on your bottom line,,” Paccurate says, “but you may find that not all solutions are created equal.”
If legacy cartonization software was a tricycle, the company states on its website, newer cost-aware cartonization is the Harley-Davidson of packing optimization. “It uses full 3D cube logic like the best-in-class of the previous generation, but adds extensive business rules, accommodates complex item requirements, and most importantly optimizes for cost directly.”
But shipping a lot of air isn’t the only factor.
PACKAGES ARE ALSO PROBLEMATIC
“It’s not just delivery,” the firm says; “the packages themselves are also part of the problem.” Carton production for packaging emits 718 pounds of CO2 per ton, and roughly 17 million tons of such materials go to landfill each year. Despite increased recycling trends, the average American still uses the equivalent of seven trees each year in paper and cardboard products.
Paccurate praises the growing use of electric vehicles by delivery companies to reduce emissions but insists there are other measures that can have more of an impact, and faster.
“Retailers must look at what they can change –– right-sizing a box is the most impactful way to reduce its carbon footprint. Simply reducing the size of packages by limiting the amount of empty space in each box leads to multiple benefits to everyone throughout the supply chain, including the customer.“
To further reduce emissions, it’s vital to reduce the number of delivery vehicles on the road. Paccurate says the best way to do that is to calculate the most efficient packing method. Doing so can reduce the average box size by 14 percent, it estimates. This change alone would save an average of 1 square foot of cardboard per carton.
REDUCE PACKAGE SIZE, SAVE A TREE
If all packages in the U.S. were cartonized using its technology, claims Paccurate, it would save the equivalent of 1.98 square miles per day –– enough to cover New York’s Central Park 1.5 times. The simple step of removing air from boxes, it adds, could reduce cardboard production requirements enough to save one tree for every 19 people in the United States.
The company continues: If a standard pallet contains 60 boxes, right-sizing these boxes would allow for an additional eight boxes to fit on a single pallet, scaling up to an additional 80 boxes (or 1.3 pallets worth) per container. “By making better use of the space available, we can greatly reduce the requirements of the highest CO2 emitting factor –– the transportation network. With the forecast growth of shipping volumes, reducing the size of boxes would save 40,895,737 tons of global CO2 emissions in 2026.
Paccurate maintains that using available technology to right-size parcel boxes isn’t just about saving the planet; it’s about saving money.
“For a business fulfilling 25,000 orders per month, Paccurate’s cartonization platform can save an estimated $714,000 per year. Smaller packages mean more boxes per truck, which means fewer trucks on the road, and lower operational costs for vehicles and staff –– in addition to the lower emissions and reduced cost of packaging materials.
Customers who receive 14 percent smaller boxes via delivery also will help to reduce the 17 million tons of packaging material that currently goes to landfill each year. More sensible packaging also may help retailers avoid the wrath of social-media-savvy consumers who post viral “unboxing” video clips online lambasting the stupidity of overpackaging.
Paccurate maintains that advanced cartonization systems that integrate into current warehouse and fulfillment systems can make a tangible difference in protecting the planet, while making businesses more sustainable, cost-efficient and provide a better end product to customers.
“The best things come in small packages,” it concludes, “and making every package a smaller package is now achievable for any business.”
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