Increase Your Revenue And Keep A Clear Conscience

Increase Your Revenue And Keep A Clear Conscience

Just as we were beginning to appreciate the importance of reducing our carbon footprint and taking action to prevent an environmental catastrophe, the financial crisis hit. Many companies were forced to cut back and this presented a dilemma, as the green way isn't always the cheapest way.

The transport industry has been hit hard by the economic crisis. Fuel prices continue to rise while the volume of packages being sent has decreased. At the same time carrier companies find themselves in an environmental predicament. There is increasing pressure to find solutions that will help to offset their high level of emissions. But is it possible to be green and still save money?

Optimize Space and Reduce Emissions

A straight forward way for transport companies to cut down emissions is to reduce the number of vehicles on the road or in the sky. This can be achieved through optimization of space. By knowing the exact dimensions of the parcels and pallets you transport, you are better able to fill a vehicle to its full capacity. What's more, by including the dimensions in the price, you will be paid according to the actual space an item occupies rather than just its weight, increasing your revenue.

Dimensional Weight

Typically a truck is designed to hold three pallets sideways. However if one pallet is overloaded with boxes or if there are objects sticking out, there will not be enough room in the truck for the third pallet, and a second truck will be required. Dimensional weight pricing allows carriers to charge for this waste of space. The customer will be invoiced based on the actual size his pallet takes up, compensating for unused space. By knowing the exact dimensions of each item, the carrier will know what type of objects can be used to fill up the extra space.

Encourage denser packing and less waste

A dimensional weight pricing structure means that customers of large, lightweight items are invoiced according to the relatively large amount of space their shipment requires. It is therefore in the interest of your customers to condense consignments as much as possible. It is typical that deliveries arrive in boxes that are too big; fragile goods may be wrapped in excessive bubble wrap and frequently outer cartons are filled mostly with air. Being somewhat penalised for such items will encourage denser packing and reduced use of packaging materials. Carriers won't then be accused of moving air' which is not cost effective and has a negative impact on the environment. Denser packing also means less movement of goods within the boxes, reducing the risk of damage during handling.

Get paid properly for the space you provide

When taking both volume and weight into consideration for invoicing, a price based on volumetric weight may be much higher than one calculated on weight alone. Imagine your customer is a shipper of popcorn. Un-popped popcorn kernels are heavier than popped popcorn. If you were to ship five kilos of un-popped popcorn and five kilos of popped popcorn the two shipments would need very differently sized boxes.

As you can see, the dimensional weight of the popped popcorn is much greater than its actual weight. By charging for dimensional weight you get paid for the space it takes up in your vehicle.Your customer may then be motivated to send the popcorn un-popped, reducing the volume of his shipment and freeing up space in your truck, or eliminating the need for an extra truck.

An Environmental Investment

We are constantly being asked to evaluate the environmental impact of our actions. While the challenges faced by the transport industry in this regard don't end here, by switching to automatic dimensioning you are increasing efficiency while doing your bit to reduce emissions. An automatic dimensioning solution is an investment you can make to increase revenue, while keeping your conscience clear.

METTLER TOLDEO can offer advice on optimizing space in the transport industry. Contact us now for a free consultation.

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