Does your logistics company use automated dimensioning systems yet? If not, it will soon! The industry is evolving rapidly, and as businesses strive to optimize their operations enough to survive in a sector based on tight margins, this technology has proven to be a game-changer, revolutionizing how warehouses manage inventory, ship products, and calculate freight charges.
Automated dimensioning systems, which accurately measure the length, width, height, and weight of items and pallets, gained a lot of traction in recent years. However, their importance is set to skyrocket due to several emerging trends in the freight industry. Here’s why:
1. Shifting Freight Charge Calculations
Effective from the first quarter of 2025, a pivotal update will see the NMFTA shifting to a density-based classification system for all carriers, 3PLs, and manufacturers. These industries are urged to immediately incorporate density measurements into their shipping processes, with many already receiving official notifications.
Looking ahead, industry experts predict a complete transition to density-based pricing within the next few years across all logistics-adjacent industries. This method will calculate freight charges by dividing the weight of a shipment by its cubic dimensions, providing a more accurate reflection of the space it occupies in a trailer.
2. The Advent of eBOL
Another significant development is the introduction of electronic Bills of Lading (eBOL). This digital system aims to streamline communications and automate data sharing for less than truckload (LTL) shipments between shippers and carriers.
The eBOL process covers the entire shipping journey, from initial rate quotes to pickup requests, in-transit visibility, invoicing, and even conflict resolution. While still in its early stages, eBOL is poised to become the industry standard, further emphasizing the need for accurate dimensioning data.
3. Increased Freight Auditing
Carriers are becoming more vigilant about auditing freight to ensure accurate billing. By some estimates, 35% of audited freight is found to have been misclassified due to inaccurate weight or dimensional measurements. These discrepancies often result from manual measurements, highlighting the need for automated dimensioning systems like those offered by Cargo Spectre.
The Benefits of Embracing Dimensioning Systems
When you embrace the future and adopt automated dimensioning from Cargo Spectre, you’re going to see some immediate benefits:
- Optimized Storage Space: Accurate item data is crucial for efficient slotting in warehouses. By knowing the exact dimensions of each item, warehouse managers can optimize storage space, potentially delaying or eliminating the need for costly expansions.
- Improved Load Planning: Having accurate weight and dimensional data early in the planning process allows for better trailer cube optimization. This can lead to reduced trailer count over time and even allow for the use of smaller trailers in some cases, resulting in significant cost savings.
- Enhanced Packaging Efficiency: There’s a growing push to right-size shipment packaging. Accurate dimension and weight data simplify the process of selecting the most appropriate packaging for each order, reducing waste and shipping costs.
- Streamlined Shipping Processes: In the “last 100 feet,” weight and dimension data simplify the shipment process of scanning, labeling, and creating the manifest. In many cases, it can eliminate the need for human involvement while increasing shipment accuracy.
Change doesn’t have to be scary! Automated dimensioning systems are already eliminating a lot of the headaches that logistics companies have to deal with—including reclasses and reweighs!
Get Started Today
As the freight industry evolves, embracing dimensioning systems is no longer just an option—it’s a necessity for warehouses looking to stay competitive. These systems not only improve accuracy and efficiency but also prepare businesses for upcoming changes in freight pricing and documentation.
By investing in dimensioning technology now, warehouses can optimize their operations, reduce costs, and position themselves for success in the rapidly changing world of logistics and e-commerce. As we move towards density-based pricing and electronic documentation, the role of accurate dimensioning will only become more critical. Don’t let your warehouse fall behind—embrace the future of efficiency with dimensioning systems today. Contact the international experts at Cargo Spectre to get started!