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Parcel Shippers Facing a Challenging Market

Over the past few years, the parcel shipping industry has changed unimaginably. The arrival of COVID, lockdowns, and stimulus cash led to an online shopping boom in every possible sector. E-commerce levels increased substantially, placing the supply chains under considerable strain. Nowadays, even though people can shop at brick-and-mortar stores and shopping malls, their shopping habits have changed, possibly for good, as they have discovered the ease of shopping online and having items delivered to their door. While parcel carriers are enjoying increased earnings and growth, the picture isn’t entirely rosy.

Current Problems Facing Shippers
Challenges include rising inflation and interest rates, increased living costs, and record-breaking gas prices. The supply chains still aren’t back to normal, with long waits for numerous everyday items remaining very common. Problems are exacerbated by increased COVID cases in China, resulting in a lockdown of many ports and a subsequent delay in shipping. There is also the worry that as fall approaches, an increase of COVID cases in North America could disrupt the supply chain further, particularly if it starts impacting warehouse workers and others who help ensure parcels are packed and dispatched efficiently.

Forcing a More Innovative Approach to Shipping Parcels
Despite these problems, shippers are finding innovative ways to help keep supply chains moving and hopefully continue to enjoy the growth they have seen in this industry. However, everyone seems to agree that shipping rates will increase and that the fuel surcharges are here to stay for the foreseeable future. As a result, shippers are doing everything they can to avoid awkwardly shaped or ugly shipments that are trickier and more expensive to package and transport. One problem is that a large and ugly shipment can mean there is little or no room left for smaller parcels. As a result, parcel carriers are trying to ensure that bigger and bulkier shipments can generate the same revenue as the smaller parcels that are much easier to pack and ship efficiently.

Another way shippers are addressing these concerns is by trying to forecast their need for containers, railcars, and ULDs more accurately, maximizing every cubic foot of space. They are increasingly turning to technology to ensure loads are packed correctly and accurately and are directing resources to areas where they can realize the highest returns.

Excessive packaging remains a concern, with shippers often cubing out a load well before they reach anything approaching maximum weight. This is due to products being packed inefficiently, wasting expensive space and packaging materials, and shipping capacity.
Staffing problems are still a major issue throughout the supply chain. Even when new staff are hired, retaining them isn’t easy. Churn can frequently mean companies must spend precious resources on hiring and training staff who then leave within a short while. The cost of hiring warehouse workers and other skilled staff has increased but persuading customers to accept higher prices isn’t easy.

Facing the Challenge
MagicLogic has over a quarter of a century of experience helping companies ship products more economically and safely. Over the years, we have helped thousands of companies worldwide achieve substantial savings on shipping costs. Our software minimizes expensive ‘dead’ space in cartons and trucks, shipping containers, railcars, and ULDs.

How We Can Help
Our innovative software solutions optimize loads efficiently, accurately, and safely, whether you are a small company shipping only a few containers each month or a large multinational shipping thousands of parcels worldwide every day of the year. Our solutions are easily scalable and can grow with your company as you expand your business. We have considerable experience in packing ‘ugly’ or oddly shaped loads more cost-effectively, for example, when shipping furniture or perishable goods. We also offer custom solutions for many industries that have specific packing requirements.

Planning Your Loads More Efficiently with Cube-IQ
Cube-IQ is an affordable load optimization program. It allows companies to plan loads efficiently, making it easier to predict the need for specific-sized containers weeks or months in advance so they can be ordered well ahead of time. Our intuitive loading rules meet even the strictest requirements, such as axle weights, while ensuring loads are packed securely and stably and arrive in perfect condition. Our load optimization software optimizes fill rates, and we were among the first to introduce a drag-and-drop graphical user interface that is easy and intuitive. Step through the loading plans, print them out, or send them to your warehouse team for accurate and faster packing.

The software helps reduce the need for costly fill materials and avoids shipping empty and very expensive space. It is also perfect for companies seeking to achieve greener credentials.

We have deliberately designed a user interface that immediately looks familiar, and with our expert training, we can get people up and running competently within an hour. We offer an excellent support contract to ensure your load planning continues to run smoothly, year after year. You won’t need to worry if your load planner retires or churn because we can ensure their replacement is soon up to speed.

High-Speed Cartonization and Palletization with BlackBox
Our Windows-based service integrates quickly and easily with any existing or new ERP/WMS. Our experienced integrators can ensure it is up and running in a few days. It is ideal for e-commerce, providing optimal carton selection in real-time so that shipping prices can be calculated at checkout.
Customers requiring palletization will find no better product on the market. We can actually do true mixed case palletization and do it well. BlackBox supports manual and robotic pack stations.

Put Us to the Test
If better load optimization software is on your shopping list, we invite you to put us to the test. We offer a free evaluation of our products, and our experienced project managers can help you set up test loads and demonstrate the product to you and your team.
Contact us for more information and take the first step toward better load optimization today.

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