What is right-sized packaging for the warehouse?

Have you ever received a package that you could hear? The sound of a small object rattling loose within a shipping box many sizes too large is unfortunately still common enough to be relatable for most online shoppers. That example of poorly sized packaging is exactly what right-sizing packaging automation is designed to prevent. This type of automation combines product data with solutions including cartonization software, void measurements, and computer vision to adjust package sizes to match their order contents.

Why is right-sizing packaging important?

Right-sized packaging delivers significant benefits across a range of important metrics for operations and for end-customers, such as controlling shipping costs through the reduction of dimensional (DIM) weight, a metric that is widely used to calculate freight costs.

According to a 2024 Industry Report published by STIQ, the fact that packing accounts for 13% of the costs related to warehouse activities is partly to blame for the fact that this area has lagged in the implementation of automation efforts relative to investments in ASRS solutions (storage, retrieval, and picking automation). However, despite wider adoption, that approach doesn’t properly account for the productivity benefits earned from improving downstream efficiency prior to upstream.

Another factor that increases the importance of right-sized packaging is the fact that impending regulations in key markets will put pressure on brands to right-size their packaging, making it much more efficient to be proactive. The EU Packaging Waste Directive is a critical piece of legislation that has set a specific void limit of no more than 50% of package volume for shippers by a deadline of 2030.  

The use of automation to right-size packaging improves outcomes in several ways. The most obvious benefits are related to throughput, where it’s possible for end-of-line automation solutions like those offered by Ranpak to fully automate box erection, height-reduction, lid application and even printing on the top of the box at the speed of 15 boxes per minute, which can result in an operation that is 4-5X faster than manual packing.

Finally, by controlling the size of packages, businesses can keep emissions from shipping to a minimum, use less packaging materials, and provide better protection for the items that they are shipping. These sustainability benefits add on to the productivity and cost benefits that right-sizing delivers, making it even more compelling for businesses that are looking to improve their sustainability performance.

What kinds of right-sizing strategies are there for packaging automation?

Ranpak’s end-of-line automation strategy is focused on the combination of findings from a Precube’it! analysis, which can calculate an optimal range of box footprints based on the dimensional information of product SKUs, combined with 1D height-reduction applied through a Cut’it!™ EVO machine. The addition of an up-front analysis means that the solution processes boxes that have already been “solved” for right-sizing based on their footprints. The final dimension of height-reduction allows the outcomes of this right-sizing method to be comparable to 3D systems at a fraction of the cost.

Instead of solving for box footprints and then applying height-reduction, 3D right-sizing systems will instead form a box directly around items to be shipped. Typically, these will use a liquid volume conversion to arrive at appropriate dimensions and then create a box to fit the order.

It’s also possible to leverage 1D height-reduction without analysis, simply taking advantage of one dimension of right-sizing, however the addition of optimized box footprints from SKU analysis is what allows these machines to shine, achieving up to 25% more parcels on a pallet.

Challenging misconceptions around automated height-reduction solutions.

The idea that 1D height-reduction is a strategy that is best employed when dimensional master data for products is not available is only partially correct. It’s true that height-reduction leaves space within boxes, enabling pickers to place items directly inside. This means that as long as employees on the packing line do not overfill boxes, they will be able to pass through automation. That said, the most effective use of an automation solution like the Cut’it!™ EVO machine is when it is paired with a technology-driven approach that does leverage master product data.

Another key point to consider is how the chosen EOL solutions will impact upstream processes. For example, which packaging automation solutions are selected will have an impact on the picking and packing strategies employed in the warehouse. Because 1D height-reduction systems work with erected boxes and adjust to the highest point of filling, it is possible to adopt a pick-to-shipper strategy where items are picked directly into boxes, removing the need for intermediate plastic totes. By contrast, 3D systems typically will pack around items, which must be assembled so that the box can be formed around them.

Exploring how an automated end-of-line packaging setup can create better unboxing moments and improve packaging quality.

In addition to right-sizing, packaging automation can provide other improvements to packaging to surprise and delight end-customers. Standardized appearances may already be an improvement over haphazardly taped parcels, but doing away with excessive void fill and cushioning materials is another boon for customers who no longer need to dispose of things that they did not intend to come with their orders.

The materials that are included in the box make a difference, as well. Replacing plastic films and airbags with easy-to-recycle and renewable paper can provide a positive impression, especially when paper is used to offer additional protection for fragile items, like the pads inserted by the Pad’it!™ automated pad insertion solution.

Boxes can be equipped with easy-to-open tear-strips, making it that much easier to enjoy the moment when unboxing an eagerly awaited purchase. And, if it happens that the items inside do not live up to expectations, these same easy-to-open boxes can be resealed to facilitate returns.