Archive for the ‘Blog’ Category

A case of expensive “air”

Tuesday, October 3rd, 2017

Vast amounts of money are wasted each year shipping air in corrugated boxes. Even two years after major commercial shippers implemented game-changing “dimensional weight pricing” across the board, many companies still inexplicably ship products in oversized boxes.

What? You say? Most consumers, particularly those not in the freight or e-commerce business, likely have never heard of dimensional weight pricing, but they probably are starting to notice the boxes coming from Amazon and other online merchants filled with less “packing material.” That’s because many of the items they’re buying online are close to the size of the container they’re shipped in.

For those who may not fully understand dimensional weight pricing, it’s basically this: Before dimensional weight pricing, you could ship a brick in a microwave-sized box and another in a brick-shaped box for basically the same price. That’s because freight costs were mostly calculated on weight, not size.

Put another way, “dimensional weight is a pricing technique used by the transportation industry that measures the amount of space a package occupies compared to the actual weight to determine billable weight,” according to National Fulfillment Services (NFS).

UPS representatives told Small Business Trends that U.S. DIM weights are essentially calculated by multiplying the container’s length by height by width and dividing by 166 if the result is greater than 5,184. The billable weight would then be the greater of the DIM weight or the box and its content’s actual scale weight, according to Small Business Trends.

The reasons for the change weren’t as simple as most thought. Some said the freight industry did it to cut down on fuel costs, which doesn’t entirely make sense because DIM pricing would lead to more products of identical weight in each truckload. Others held DIM made shipping more efficient, which is indisputable.

While retailers and wholesalers didn’t embrace the new pricing methodology at first, it didn’t take long for most to understand how wasteful prior practices were. Yet today, many companies still are paying good money to ship air, as well as the additional weight for things like the air pillows and foam pellets used to fill the void inside corrugated boxes and other containers. It adds up. Big time.

Dealing with DIM

There are several steps you can take.

National Fulfillment Services offers a few tips, including consolidating your shipments with carriers to leverage the greater volume and gain better pricing. Regional providers or consolidators are another option, according to NFS.

Most importantly, implement right-sized packaging. Yes, there’s always a need for padding materials, but choose boxes that most closely resemble the dimensions of the content you’re shipping. The best solution is custom packaging, which virtually eliminates costly dead space (air).

Custom sizing, high quality printing latest box trends

Tuesday, June 6th, 2017

It’s no secret corrugated boxes are among the most versatile containers on the planet. Beige Market Intelligence, for example, reports they are the most popular “secondary” packaging type because of their relative low cost and weight, strength and rigidity, durability and flexibility.

Processed foods and beverages and electronics are among the fastest growing applications for board and corrugated packaging, and it’s most prominent in developing Asia-Pacific regions where consumer spending is exploding, Beige and Persistence Market Research recently reported.

But two exciting emerging trends worth noting include the growth in demand for high impact graphics and custom-sized boxes to serve multiple purposes. Both are being fueled largely by big box retailers and the Internet.

As we discussed in our previous blog, retailers are increasingly asking companies to provide large dual-purpose boxes for both shipping and dispensing products. Through high quality printing and size customization, this provides additional opportunities to display features and benefits to consumers while minimizing stocking time for workers.

As Persistence notes in a recent report, growing and emerging industrial activity is fueling the need for better packaging techniques to protect and transport goods. But e-commerce is what’s really exploding the demand for and innovation in corrugated and solid fiber packaging, according to Cleveland-based Freedonia Group.

Internet sites like Amazon are among the biggest consumers of corrugated. Globally, e-commerce packaging demand is expected to boom by 10% or more to a $1.1 billion market by 2020, according to Freedonia. In 2015 alone, boxes accounted for nearly a third of all e-commerce packaging. Another industry – third-party logistics – will likely post the “fastest gains” given the edge they already have from serving the e-commerce markets, Freedonia adds.

Set-up boxes, also called “subscription” boxes, make up only 5% of current box demand, but are fueling new innovations in corrugated applications. Such containers are used to ship specialty items like pet food samples on a monthly basis, and companies are seeking innovative ways to distinguish them with imaginative graphics, according to Freedonia.

At Corrbox, our design and sample rooms have large-scale capability to develop an integrated packaging system to protect your product completely during shipping, and design it in a way that also maximizes your product’s marketing exposure. There are countless examples here at Corrbox of clever designs that serve highly practical purposes while reinforcing your company’s logo and corporate branding.

Contact us today at for more information at (949) 248-5880 or drop us a note at info@corrbox.com.

Unwrapping the business of boxes

Friday, December 30th, 2016

Boxes come in an almost infinite array of sizes, shapes, colors and materials. Companies like yours depend on these inexpensive containers to be sturdy and stand up to the demands of shipping and the multiple handoffs that typically occur from your plants to customer loading docks.
While their primary function is the ability to transport mass quantities of identical products (usually in smaller boxes), boxes also can serve a number of other equally important purposes like advertising and display.
Big box retailers (pardon the pun) like Wal-Mart, Costco, Lowe’s and Home Depot often rely on companies to provide large dual-purpose boxes – first serving as a shipping container for large quantities of their product while later allowing a means to dispense individual units directly to consumers. This provides additional opportunities to display features and benefits to consumers while minimizing stocking time for workers.
There are countless examples of clever designs that serve highly practical purposes while reinforcing a company’s logo and corporate branding.

At CorrBox, we’re passionate about containers. Our buyers are constantly sourcing the highest quality raw materials while striving to keep our prices as competitive as possible. Our teams of engineers work around-the-clock to ensure we have the latest state-of-the art machines to not only streamline and constantly improve the speed of production, but also ensure our boxes are made to withstand the rigors of shipping. And our design teams work tirelessly to create customized, innovative and colorful packaging to meet the growing demands of retailing and branding. No project is too great or too big. See more about all we have to offer here.
Indeed, everyone here at CorrBox is constantly challenged to think “outside the box.”
We thought you’d enjoy watching this brief video that shows how simple sheets of heavy-duty paper are transformed into basic boxes and in some cases, works of art.

Keep an eye out for our next blog, which will explore increasing demands for custom-designed boxes.

Wishing all of you a Happy New Year!

 

Good news keeps coming

Friday, July 29th, 2016

Emerging research continues with positive news about the American corrugated box market. All in all, the $63 billion global corrugated box market is expected to soar to nearly $77 billion over the next five years, reports MarketsAndMarkets. Primary growth factors include surging recycled content demand, electronics and food and beverage industry growth, and consumer demand. According to a report by IndexBox Marketing, the U.S. is the global leader in corrugated and solid fiber box commerce. Its 17% world market share is followed by Germany (14%) and China (11%), according to a published news release. Most of the U.S. exports of corrugated boxes are going to so-called “traditional” North America trading partners. Meanwhile, researcher Technavio reports that compostable box demand is surging in the $105 billion global e-commerce packaging market and will continue over the next four years. Box suppliers are answering the call through better ways of paper pulp extraction and enhanced graphics, the firm noted.

A new report paints an optimistic future for corrugated boxes over the next five years

Tuesday, June 21st, 2016

A new report by market researcher IBIS World paints an optimistic future for corrugated boxes over the next five years. Sales as a percentage of industry revenues are forecast to rise nearly 64% largely because of overall improved economic conditions and manufacturing output, according to the report. Another market researcher, Report Buyer, is forecasting the global corrugated packaging market to have a compound annual growth rate of 4.6% through the year 2020.

It’s likely a good chunk of those sales will come from Wal-Mart. According to circulatenews.org, the world’s largest retailer uses close to 3 million tons of cardboard annually.

Which brings to mind the ever-growing interest in sustainable materials used in corrugated boxes and other packaging. (WalMart’s annual consumption represents about 6% of the country’s total amount of recycled cardboard, according to circulatenews.org.) The website reports in a recent article that a new material called “ECOR” is rapidly gaining traction among interested buyers in global brands and retailers. The material, developed in conjunction with the U.S. Department of Agriculture’s Forest Products Lab, is described as “a diverse collection of high performance building materials and products that are made from 100% recycled waste sources and is free of the toxic glues and chemical binding agents.”