What Is Dimweight?
Dimensional (DIM) weight, also known as volumetric weight is a pricing technique for commercial freight transport. This method uses an estimated weight that is calculated from the length, width, and height of a package. The air freight industry initially created DIM weight measurement. Low-weight packages that took up a lot of space were costing carriers revenue. To solve this problem dimensional weight was created which bases weight on the volume of the container. This is known as charging by dimweight.
The Formula Looks Like This:
(L x W x H) / DIM
A growing number of ground trucking companies have adopted dimweight. If you are considering fulfilling e-commerce orders through a carrier that utilizes DIM weight, it is vital to get the measurements correct. To get the biggest bang for your buck, you would be wise to spend time analyzing box sizes, and also researching which products fit into which container.
The Cost Of Not Dimensioning:
Chargebacks are the main driver for incorporating dimensioning solutions with the overall SLAM system (as well as weigh, scan, print/apply). As carriers/shippers have incorporated stricter rules, there are added costs for packages that exceed certain lengths as well as weights and chargebacks for inaccuracies. Chargebacks exceed the costs associated with just doing it right the first time.
UPS charges an additional $1 fee per package if the inaccuracies on the total of your packages in a given shipment pickup amount to over $5 average per package. A traditional fishing pole example – it’s super lightweight but very long. If shipped based on weight alone, there would be a carrier chargeback. For more details on these costs, check out this post from ShipWorks, a multi-carrier software provider.
How Can You Streamline This Process?
Getting the data correctly is a must for optimizing costs and fulfillment, but what happens if you get it wrong? The short story is you get charged. As the e-commerce industry evolves so does the cost related to fulfilling these orders. Increased prices cut into the margins for sales which means mistakes are now a direct cost to the shipper.
Capturing all of this data and getting it correct is time-consuming and stressful. If you are now asking yourself, “How do I solve this problem?”, You are in the right place. StreamTech has successfully designed and implemented systems that not only weigh but dimension and get it right every time.