Why Packaging Matters in Modern Warehousing

Warehouse efficiency depends on more than just fast picking and packing; it’s about making smart decisions at every stage of the process. One area with a profound impact is right-sized packaging — using packaging that fits the shipped items exactly, without wasting space or materials. This approach reduces costs, increases warehouse throughput, and supports sustainability efforts.

In a recent episode of the Warehouse Automation Matters podcast, Greg Walls, Vice President of Revenue at Paccurate, shared insights on how right-sized packaging is transforming the logistics industry. As Walls put it, “Right-sizing your packages can save upwards of 30 to 50% of your corrugated waste versus maybe a standard suite of boxes. For those two reasons — cost and sustainability — we’re seeing a big explosion of interest in this space.”

What is Right-Sized Packaging?

Right-sized packaging is the practice of using the smallest possible box that securely fits the items being shipped. Instead of relying on standard box sizes, which often result in wasted space and excess materials, right-sized packaging tailors each package to the specific dimensions of the items inside.

Walls explained the concept during our podcast: “It’s always about utilizing a box with the minimum necessary dimensions to fit the product and maximize volume utilization.”

There are two critical components to this process:

• Cartonization Software: This software determines the optimal box size for each order, ensuring that space is maximized and materials are minimized.
• Custom Box Creation: Systems like those from Packsize physically create the right-sized boxes on demand, ensuring the exact dimensions are produced for each shipment.

When these components work together, businesses can minimize shipping costs and reduce waste while ensuring products arrive safely.

Dimensional Weight: The Hidden Cost of Oversized Packaging

Many businesses are adopting right-sized packaging to avoid the penalties associated with dimensional weight. Carriers like FedEx and UPS charge based not only on the weight of a package but also on the space it occupies. If a business uses a box that’s too large for its contents, it’s penalized through dimensional weight pricing, leading to inflated shipping costs.

“FedEx and UPS actually penalize you quite heavily when you ship small, light items in a bigger-than-necessary box,” Walls said. “We've seen scenarios where dimensional weight leads to almost a 20 to 30% increase in transportation costs.”

By using right-sized packaging, companies can reduce dimensional weight charges and keep their shipping expenses in check.

How Right-Sized Packaging Boosts Warehouse Efficiency

Right-sized packaging doesn't just cut shipping costs; it also has a significant impact on warehouse operations. By automating the packaging process and using cartonization software, warehouses can operate more efficiently and increase throughput.

“Optimizing parcel size and being confident in the cartonization process saves time at the packout station,” Walls explained. “Instead of workers guessing which box to use, the system tells them. The items fit, the process is faster, and the whole operation is more efficient.”

Here are some ways right-sized packaging drives warehouse efficiency:

• Increased Throughput: With more optimized packaging, fewer boxes are needed per order, and these smaller boxes can fit more efficiently on carts, conveyor belts, and even autonomous mobile robots (AMRs). As Walls explained, “More product on an AMR means higher units per hour, higher ROI.”
• Reduced Waste: Using the right amount of packaging materials, whether corrugated cardboard or void fill, reduces overall waste. Walls emphasized, “Right-sizing your packages can save up to 50% of your corrugated waste.”

The Role of Cartonization Software

At the heart of right-sized packaging is cartonization software. Paccurate’s solution integrates directly with warehouse management systems to determine the optimal box size and exactly how to pack every order. This not only ensures that items fit securely in the box but also that every inch of space is utilized effectively.

Walls touched on how this technology works: “It’s really simple. For a standard packout, you send us the data on what needs to be packed, and we send back the lowest-cost box or set of boxes to use. For right-sizing automation, we have an infinite box generator that will send back the perfect carton dimensions in milliseconds. It's modern architecture that’s easy to integrate, even with older WMS systems.”

By taking the guesswork out of packing, cartonization software streamlines the packing process and ensures that no space is wasted inside the box or on the truck.

Sustainability: A Key Benefit of Right-Sized Packaging

Sustainability has become a growing priority for many companies, and right-sized packaging directly supports these efforts. As more businesses look to reduce their environmental impact, minimizing packaging waste is one of the most straightforward ways to achieve their goals.

Walls highlighted this during the podcast: “Right-sized packaging reduces corrugated waste and void fill, usually by 20 to 30 percent and sometimes even upwards of 50 percent with a full solution in place.”

Moreover, reducing packaging waste contributes to a company’s carbon footprint. Smaller boxes mean less material used, fewer trucks on the road, and more efficient use of transportation resources. Plus, with Paccurate, you’re reducing your SCOPE-3 emissions by at least 14%.

Real-World Examples: Savings and Success Stories

In our conversation, Walls shared several examples of companies that have seen real benefits from adopting right-sized packaging. One notable example involved a large U.S. apparel retailer. By implementing right-sizing strategies, they achieved a 12% savings on their transportation costs. “When your transportation bill is upwards of $50 million, that’s a massive savings,” Walls explained.

Another example involved a healthcare and beauty brand that, through right-sizing, reduced dimensional weight and corrugated usage by 34%. “They saved about 6% on transportation costs, and that led to a three- to four-month ROI,” Walls said. These types of results demonstrate the power of right-sizing in driving both cost savings and sustainability efforts.

Packaging Optimization as a Competitive Advantage

Adopting packaging optimization solutions like those from Paccurate can be beneficial to both your business and to your customers. As Walls summarized, "Packaging automation isn’t just about saving on shipping — it's also about the customer experience. Customers notice when their items are packed well, with less waste, and it reflects positively on your brand."

The connection between packaging optimization and customer satisfaction should not be underestimated. By reducing oversized, wasteful packaging, companies not only save money but also improve their reputation with eco-conscious consumers.

Right-sized packaging and cartonization are no longer just operational upgrades; they’re essential strategies for cutting costs, increasing warehouse efficiency, and driving sustainability. As Walls noted, “The industry is beginning to understand that cartonization and cubic optimization drive higher returns—not just for the warehouse, but for the entire supply chain.”

To learn more about the impact of right-sized packaging on warehouse operations, we encourage you to listen to the full episode of Warehouse Automation Matters featuring Greg Walls. You’ll hear firsthand insights on how Paccurate is helping businesses around the world improve their operations, reduce costs, and meet their sustainability goals.