Monday, April 21, 2014

How to Save Money on Shipping - Part 2: Bundling and Shipments

Weight Matters
Freight and parcel carriers care primarily about two things - weight and size.  What they are generally not concerned with are the number of pieces being shipped.  This is another area where you can create significant savings.

Each item that requires a label qualifies as a "shipment."  Your shipping rates are determined based upon the size and weight of that shipment.  The charts below will illustrate the difference between shipping multiple single packages as individual shipments, or bundled packages as one shipment.  The red bar indicates the price to ship 1-6 boxes, each as an individual shipment (each has its own shipping label).  The green bar indicates the price to ship one bundle of 1-6 boxes as one shipment (only one shipping label is used, and all boxes are bundled together as one).
 
Shipment A - 11" x 14" x 4", 3lb Package(s)
Shipment B - 6" x 10" x 5", 6lb Package(s)

Shipment C - 13" x 16" x 6", 15lb Package(s)

Shipment D - 10" x 14" x 12", 19lb Package(s)
Depending upon the size and weight of each package, the shipment costs differ dramatically.  You'll notice that the per package price increases far more dramatically than does the cost when the same number of packages are bundled together to ship as one.  With Shipment A, a very lightweight package, the cost barely changes between 1 and 6 packages when they are bundled together, but increases significantly when they are processed as individual shipments.  As the packages get heavier, the difference eventually narrows, but is still significant.

As long as the bundle isn't so big that it warrants dimensional weight, oversize, or overweight charges (addressed in Part 3), bundling multiple boxes together as one shipment can be a significant means of saving shipping dollars.

How to Bundle
UPS and FedEx are very specific about how they want you to safely bundle your packages.  There are three ways to accomplish this.

Bundling with Strapping
The image to the right illustrates how the carriers recommend you strap your packages when bundling them.  They suggest two straps in each direction.  They also discourage the strapping from being used as handles.  This can lead to weakened or broken seals which can result in problems in shipping.

The most common material for these purposes is polypropylene strapping.  This material is available in a variety of widths and break strengths.  The strapping can be applied and sealed with manual tools, battery operated hand-held tools, pneumatic tools, or semi-automatic machines.  For more information about selecting the right strapping, visit our post on How to Select the Right Strapping Product.

Bundling with Tape
For those who will bundle infrequently, tape is an easier option than strapping.  It requires no special tools and is easily applied.  Parcel carriers still suggest that the tape be applied in the same pattern as the strapping example above.

While some carton sealing tapes will suffice, it is highly recommended that filament MOPP tape be used.  This tape most often comes in the form of filament or tensilized tapes.  Filament tape is simply a standard tape but with nylon filament threads running the length of the tape to give it added strength when bundling.  Tensilized tape is similar in construction, but the filaments are manufactured in to the tape and not visible, and they run both the width and length of the tape.  As with most tapes, it's important to use the appropriate thickness based upon the weight of the product being bundled.

Bundling with Stretch Wrap
Stretch wrap is similar to tape, but does not have any adhesive quality so it will not leave any residue or mar the boxes.  Bundling stretch wrap comes in widths of 2", 3" and 5".  It also should be applied like the strapping, with the stretch wrap being applied in both directions.  Bundling stretch wrap is probably the easiest to apply of the three methods suggested here.  Stretch wrap strength is measured by gauge, or thickness, with the higher number indicating the thicker wrap, and subsequently that which is applicable for heavier weight bundling operations.  Lightweight bundling applications can use lower gauge wraps.

There are three handle types available with bundling wrap.
  • Standard Core - Comes on a 3" core and ships with one plastic plug-in handle per box
  • Extended Core - Comes on a 1" extended core so that each roll has its own built-in handle
  • QuikWrap - Comes on a 1-3/4" core and a specialized plug-in handle that swivels around its own core
No matter which of these bundling wraps you choose, the actual wrap is the same - only the core and handle are different.  More information on stretch wrap and bundling wrap can be found on our post, How to Select Stretch Wrap.

No matter which method you choose, depending upon your unique needs, bundling your shipping is a clear way to save a potentially significant amount on your shipping.  If you have multiple pieces going to the same destination, this is an option you will want to consider.

If you have any questions about which option may work best for you, or what product will work best, please contact us and we will be happy to help you.

For other ways to save money on shipping, look at How to Save Money on Shipping - Part 1: Service Level and Part 3: Surcharges and Other Charges.


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