The performance & productivity of distribution centers is often measured in the number of orders shipped daily.

Packing is directly related to this.

Cutting down on package handling time and getting them ready for shipping faster directly contributes to the number of orders that can be handled in a set timeframe.

In this blog, we'll explore how data-driven assistance in packing can boost warehouse productivity and cost-effectiveness through cartonization.

What Is Cartonization

Cartonization is the process of selecting the most appropriate carton sizes and packing items efficiently to maximize space utilization while minimizing shipping and packaging costs.

It's an approach to packaging that takes into account several factors, such as item size, quantity, and carrier rates to optimize the arrangement of products within a container and decrease shipping costs.

Types of Cartonization

Single item cartonization

Single-item cartonization solution considers orders that consist of just one item or SKU. This method recommends a packaging solution that matches the item's dimensions with an appropriately sized carton box.

Multi-item cartonization

Multi-item cartonization proposes a packing solution that fits multiple items of different sizes & weights and other possible constraints. If the order requires or exceeds more than one type of box, it can suggest a packing solution involving multiple boxes.

Custom cartonization

In more complex scenarios, distribution centers will want to define additional cartonization rules, taking into consideration carrier rate structures to increase the cost-efficiency of shipping or define additional constraints for sensitive or fragile products such as "this side up" information.

This method can be used to program custom rules for different SKUs, providing packers with instructions when packing items for shipment.

The Underlying Principles of Cartonization

At the heart of cartonization solutions lie algorithms that evaluate various parameters to make optimal packing decisions.

The goal of cartonization is to balance customers' goals of either maximizing fill-rate within a shipping box, using the least amount of boxes, or decreasing the amount of shipping costs.

• Maximizing the fill-rate aims to efficiently use available space within containers, ensuring that as many items as possible are packed into each container.
• Using the fewest number of boxes or containers can reduce handling and storage requirements. Fewer bins mean less space needed for storage in the warehouse and fewer containers to manage during the packing process.
• Achieving minimal cost involves consideration of carrier rates & packaging material.

Balancing Trade-Offs

The challenge lies in finding the right balance that suits your specific business needs and goals. The trade-offs arise when attempting to optimize one aspect while not compromising the others.

• When focusing on maximal fill-rate, you use various box sizes to accommodate different product dimensions, increasing carton costs.
• Prioritizing the minimal number of bins leads to using larger containers, which can be wasteful if smaller orders are frequently shipped, resulting in inefficient space usage and higher shipping costs.
• Prioritizing minimal cost can lead to standardizing box sizes, but this may not always result in the most efficient space utilization or optimal fill-rates.

Finding The Right Solution

Cartonization logic solutions do not all possess the same level of quality or effectiveness.

Manual Packing

Manual packing is led by human intuition, where packers themselves rely on their judgment to choose the most suitable shipping box size and item configuration within a box.

In cases where warehouses handle a low volume of orders, manual packing can be a feasible solution as it does not require specialized equipment or software, making it adaptable for small-scale or variable operations.

However, it will not result in the most optimized choices regarding carton selection and item arrangement.

It's worth noting that manual packing can be labor-intensive, and an increase in order volumes can have an exponential impact on the handling time of orders.

Liquid Cubing

Liquid cubing solution checks if the total item volume and weight fit in the box, not taking into account 3D shapes and carrier rates.

This approach overlooks the actual 3D shapes and dimensions of individual items. As a result, it may propose packaging solutions that are physically impossible or impractical in the real world.

Additionally, it does not take into account transport rates in the packing decision.

3D Cartonization

3D cartonization takes packaging optimization a step further by considering the three-dimensional space requirements of items.

It optimizes the arrangement of items within boxes, ensuring that all available space is used effectively, considering the possible scenarios.

3D Cost-Efficient Cartonization

3D cost-efficient cartonization focuses on choosing the right carton sizes based on specific objectives.

The user specifies these objectives which can include maximizing fill-rate, minimizing the number of boxes used, or reducing shipping costs by aligning the packaging to your carrier network. It can also involve finding a balance among all these factors.

Cartonization performance comparison

Conclusions

If data-driven assistance can come in handy in achieving higher productivity of a distribution center, why not explore a quick win that can result in businesses not overpaying 5 - 20 % on packaging and shipping?

Optioryx represents a reliable choice for exploring 3D cost-efficient cartonization software solutions.

Average savings of our customers with respect to manual cartonization

Get assistance in your packing operations.

Now that you know what a cartonization system is, get your items packed in a box with ease.

Grab your API key for Optioryx’s bin-packing algorithm and test it with your own data.

Learn more about the use cases of cartonization!