AI Technology Makes Shipments More Cost Effective and Eco-friendly
DHL Supply Chain, the contract logistics specialist within Deutsche Post DHL Group, is now offering its commercial customers on-demand packaging solutions to make shipments more cost-effective and environmentally friendly. The AI solution OptiCarton helps to optimize the filling volume of boxes from an existing, pre-configured set of cartons and can even suggest the splitting of an order into several consignments to make individual shipments more cost-effective or reduce their carbon footprint.
Customer research conducted by DHL Supply Chain revealed that 24 percent of e-commerce package volume is empty space. Using sophisticated carton optimization algorithms combined with an on-demand approach to packaging within the distribution center helps brands and retailers produce the right package at the right time for each shipment, driving down transportation costs, minimizing waste, and ensuring the product is protected. With OptiCarton, DHL is not only responding to the current shortage in cardboard boxes and packaging materials in the market, but initial pilots also indicate that the solution offers customers additional benefits in the shape of shipping-cost savings of up to 35 percent and with an average of 15 percent.
According to initial calculations, an optimally pre-configured and well-utilized set of cardboard boxes can save as much as 50 percent in superfluous shipment space. This greatly reduces the number of truckloads, allowing commercial customers to save costs not only with regard to oversized cartons and filling material, but also shipping, by eliminating unnecessary transports. Furthermore, the solution can provide recommendations as to whether and how an order should be split up to optimize the shipment configuration, making the solution particularly end-consumer friendly.