The Impact of Dimensional Weight Pricing

2015 saw the implementation of Dimensional Weight Pricing (DIM) on ground packages smaller than three cubic feet by FedEx and UPS.  DIM is calculated by multiplying length by width by height (all in inches) and dividing the result by a “DIM factor,” which is currently 166 for domestic shipments for FedEx and UPS.  Previously, the rate ground parcels smaller than three cubic feet was based on actual weight – given that its estimated that up to 75% of the most used box sizes fall into this category, some industry experts expect an average increase of approximately 30% fro

m the change to DIM pricing.  And that’s on top of the 4.9% annual increase taken for 2015 by FedEx and UPS!

So what if you don’t have a plan to manage the impact from Dimensional Weight Pricing?  Or you’re not sure the plan you have is actually working?  It’s not too late to take action – and if you don’t have the expertise in-house to manage all the factors, as noted by Kevin Fletcher, SVP for Kenco Transportation Services, “A logistics partner with expertise and success in engineering parcel solutions might be an option. The right partner will have comprehensive analysis resources and tools, a solid grasp of the market from both carrier and shipper perspectives, deep understanding of parcel-pricing models, senior-level relationships with carriers, and robust dashboard and reporting capabilities.”¹  And that is where Vision can help – this is what we do, day in and day out, optimizing solution options to build the best combination to meet the needs of our partners.

Vision Consumer Products Fulfillment has decades of experience and industry expertise in consumer products fulfillment services.  

No matter who your customer is, we treat your customer as our own.  We know what makes a raving fan out of an individual customer, as well as what makes a business partner trust you with their business.  Call or email us to learn how.  We’re certain we’ll be the best fulfillment warehouse partner you have ever had!

http://visioncpf.com

CPFSales@VisionMediamgmt.com