KSP Blog

Size Matters (Dimensions)

Written by KSP Staff | Aug 9, 2023 10:31:37 PM

The gathering of dimensional data of customer SKUs (Stock Keeping Units) is of paramount importance for third-party logistics (3PL) providers. Dimensional data refers to the accurate measurements and weight information of each SKU, and it plays a crucial role in optimizing various aspects of the logistics and supply chain process. Here are some key reasons why 3PLs should gather dimensional data of customer SKUs: 

Space Optimization: By knowing the exact dimensions and weight of each SKU, 3PLs can efficiently allocate storage space in their warehouses. This optimization ensures that the available storage capacity is used most effectively, minimizing wasted space, and reducing overall warehousing costs. 

Packaging and Shipping Efficiency: Accurate dimensional data helps 3PLs select the appropriate packaging materials and methods for each SKU. This leads to optimized packaging, reducing the risk of damage during transit and minimizing shipping costs due to the correct sizing and weight of packages. 

Freight and Transportation Cost Management: Transportation costs are often influenced by the dimensional weight of shipments. By having precise dimensional data, 3PLs can accurately calculate freight charges, choose the most cost-effective shipping methods, and negotiate better rates with carriers based on accurate volume and weight information. 

Load Planning and Optimization: Knowing the dimensions and weight of each SKU allows 3PLs to plan and optimize the loading of trucks and containers. This can lead to increased capacity utilization, reduced transportation costs, and improved delivery times. 

Inventory Management: Accurate dimensional data aids in better inventory management. 3PLs can identify high-demand products and ensure sufficient stock levels based on their size and weight characteristics, avoiding stockouts or overstock situations. 

Compliance and Regulatory Requirements: Different regions and carriers may have specific rules and regulations regarding the dimensional weight of shipments. Gathering and providing accurate dimensional data helps 3PLs comply with these requirements and avoid potential penalties or delays in the supply chain. 

Enhanced Customer Service: When 3PLs have accurate dimensional data, they can provide more accurate shipping quotes and delivery estimates to their customers. This transparency and reliability contribute to improved customer satisfaction and loyalty. 

Return and Reverse Logistics: In cases of product returns or reverse logistics, having precise dimensional data allows 3PLs to handle the process more efficiently, reducing processing time and costs associated with returned items. 

Overall, gathering dimensional data of customer SKUs empowers 3PLs to operate more efficiently, reduce costs, and provide better service to their clients. It enhances their ability to meet customer expectations and gain a competitive edge in the logistics industry.