To help reduce the impact of the new dimensional weight pricing strategies that will soon be implemented by major carriers, supply chain software developer Datex recently upgraded versions of its popular solutions for cartonization and shipping management. By January 1, 2015, both UPS and FedEx will change their existing pricing strategies and charge based on the dimensional weight of packages. End customers and businesses throughout the supply chain including distribution centers, fulfillment operations and third party logistics carriers will be impacted by dimensional rate pricing on shipments. Carriers hope that the new dimensional weight pricing will encourage shippers to optimize their packaging practices. Shippers can exercise greater control over shipping costs, packaging and materials costs and labor using Datex software tools. Datex recently provided a series of brief videos and media coverage on dimensional weight shipping costs to explain dimensional weight pricing and provide some ideas for how to control shipping costs.
In order to keep dimensional weight shipping costs under control, shippers should focus on optimizing packaging by ensuring that the smallest size box is used. Improper box selection and poor packing typically result in carriers transporting boxes that are much larger than necessary to ensure the safe delivery of products. Dimensional weight shipping costs are influenced by both the size and weight of the packages.
Datex FootPrint® WMS Cartonization Module enables businesses to maintain greater control over shipping costs including those based on dimensional weight pricing strategies. The cartonization module works in concert with the Datex warehouse management system to ensure that waste and inefficiency are minimized and can be used either manually or system directed. Cartonization systems optimize packaging based upon the dimensions, weight, position, fragility and other factors of the products being shipped. The cartonization system executes during shipment processing, determines if the shipment will be split into one or more containers and applies the appropriate cartonization strategy. After considering the dimensions, fragility, position requirements and other factors of each item in the order, the cartonization module determines how each item must be properly packaged for optimal space efficiency, safety and parcel compliance. The Datex Cartonization Module relies on Microsoft Workflow Foundation to automate the process using business logic and a series of rules and can be configured without making costly, time consuming changes to source code. Using the Datex cartonization module can provide faster turnaround and result in higher customer satisfaction rates. In addition, cartonization decreases order returns and damages and lowers labor, material and freight costs.
The Datex FootPrint® WMS Shipping Management Module can also be used to reduce dimensional weight shipping costs and resolves the challenge of integrating and automating parcel information with carriers. The Datex Shipping Management System streamlines shipping operations, generates carrier compliant labels and documentation, provides instant access to shipping company tracking information and provides current shipping rates for carriers.
Datex provides flexible, reliable supply chain technology solutions to make businesses more profitable. In successful operation since 1978, Datex has helped companies operate more efficiently and productively using state-of-the-art technology including Microsoft based supply chain software, mobile devices and services including EDI and mobile device management services. For more information on Datex supply chain technology solutions, please visit the Datex website.
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