Warehouse Management Optimization and Cost Control

Express Cube Systems - A Division of Global Sensor Systems

Warehouse managers are increasingly using dimensional cubing machines integrated to warehouse management systems for optimization and cost control.

Accurate calculation of "dimensional weight" has become a front and centre issue for warehouse managers. Since introducing the ExpressCube dimensioning device, we have worked with a growing group of efficiency- and cost-conscious companies that are feeling the pain from the high cost of inaccurate dimensioning. They have installed ExpressCube for outbound cubing and weighing to cut shipping costs. Even more importantly, they are using the device integrated with their warehouse management software to optimize their warehouses' operations.

Dimensioning System Background

Dimensional weight is used by parcel carriers to ensure that lightweight but bulky items pay for the space they take up in trucks and planes. This is the key reason for ExpressCube's focus on Featherweight GoldTM. To calculate the correct rate for a parcel, the shipper should determine the package's weight and its dimensions, and then check the carrier's rate schedule to calculate the correct charge. Major carriers have all invested heavily in dimensioning systems in their hubs. They can dimension weigh every package to determine the correct rate. If there is a discrepancy from the customer's rating, a back charge on the customer's bill will be generated. That is, a direct penalty on the inaccuracy of the customer's warehousing and shipping process. We repeat: it is a penalty!

"Dimensional weight" or "DIM weight" is determined by dividing the volume of a package in cubic inches by a constant, typically 194 for domestic or 166 for international shipments. The greater of either the DIM weight or the scale weight must be used for rating the package. For large, light boxes, the DIM weight rate will almost always be higher. As the volume of packages subject to DIM weight rates increases, so will the need to obtain precise information on the weights and dimensions of packages. For thousands of boxes, this creates a complex -- and costly -- warehouse management challenge.

The Featherweight Gold™ Inventory

It is not good enough for warehouse and shipping workers to make an inaccurate calculation package by package at the shipping dock using a scale. Smart warehouse managers are using our mobile device to pre-weigh and dimension packages as they enter a warehouse. This involves conducting what we are calling a Featherweight GoldTM package inventory for boxes already in inventory. Considered strategically, in the world of small parcel shipping and warehousing, the concept of "dimensional weight" can be a central point of leverage for WMS systems and other tools used to run a modern, efficient warehouse.

There's only so much space on a truck and in your warehouse. The same economics apply. You must pay as much attention to the dimensioning issue as your carriers do and for the same reasons.

We have built a fully mobile and self-powered ExpressCube warehouse solution especially to help you conduct a Featherweight Gold™ inventory. We have also developed the Featherweight Gold™ inventory protocol with our prestigious partner, Agile.

Contact us today to bring the set of best practices, metrics and technology to your warehouse.

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