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Go Beyond One Size Fits All for Better Warehouses and Happier Customers
Every company is searching for the right packaging solution. But every packaging solution, no matter what a salesperson says, is not right for every company.
Some brands and 3PLs need sustainable packaging solutions that work with their existing processes. Others want to move toward fully automated packaging solutions.
Either way, the right packaging strategy needs to start with accurate product dimensions. That allows distribution to select the right box. Customers no longer receive small items in huge boxes full of packaging waste. Companies save money on shipping and enhance customer satisfaction.
But right-sized boxes do more than save on shipping costs. For 3PLs and brands that handle their own distribution, right-sized boxes help clean up messy, inefficient warehouses, distribution centers or fulfillment centers.
Floor space utilization improves. Companies use way fewer corrugated SKUs. And Tompkins Ventures has seen productivity skyrocket, sometimes topping 100%. Because packaging optimization improves every aspect of warehouse planning and distribution.
ROIs routinely range from 400-600%. And one client had an astounding 1,736% ROI.
And those are solutions that just improve existing processes. We know that some companies want to move toward automated packaging systems. Integrating machine intelligence and robotics into the process can improve supply chain efficiency. Automation can set retailers up for the future, creating scalable efficiencies and measurable sustainability gains.
The same for 3PLs. And for 3PLs, either path can give them a sharper competitive edge, retaining customers in a notoriously difficult sector. Brands won’t risk walking away from 3PLs that deliver compelling savings.
Whether companies want to improve packaging efficiency or field entirely new, automated systems, Tompkins Ventures can find the right solution.
Packaging Optimization Drives Warehouse Efficiency
Tompkins Ventures knows that packaging optimization is the cornerstone of operational efficiency. We have seen companies that invest in smarter packaging solutions reap rewards that go beyond reducing shipping costs.
They have improved cube utilization for more efficient warehouse operations. Optimized packaging makes inventory easier to move, store and ship, all while reducing product damage and lowering return rates. These advantages cascade into every stage of fulfillment, from inbound receiving to outbound delivery.
Warehouse managers see higher throughput, reduced bottlenecks and better space utilization. Finance leaders appreciate leaner shipping bills. Marketing and brand leaders notice happier customers and fewer embarrassing “air in the box” moments circulating online. Optimization makes packaging a value driver, not just an expense line item.
In some cases, Tompkins Ventures has seen the following results:
- Floor space utilization improved by 84%.
- Corrugated SKUs reduced by more than 90%.
- Productivity increases sometimes top 100%.
Those are numbers that will make anybody in the packaging industry proud.
Competitive Advantage Through Packaging Data
Every shipper, brand and 3PL has seen the problem. Big boxes. Small items. Customers making fun of the waste in YouTube videos.
To solve that problem, companies often need help. Do you have your item masters completed? Do you have perfectly accurate dimensions and weights for all the products you ship? The answers are usually no and no.
Because too often, brands and 3PLs lack accurate product dimensioning data. The wrong numbers drive the wrong algorithms, leading to boxes that are far too large.
Average ROI just on finding accurate dimensions and weights can range from 400-600%. Beyond the extra shipping costs, warehouses must fill that excess “air in the box” with packaging material – which also costs money.
“Air in the box” can decline from 60–75% down to 30–40%. That translates into millions saved on freight, better unboxing experiences for consumers and stronger renewal rates for 3PL contracts.
Packaging Optimization Retains Customers in the 3PL World
That’s right. For most brands, 3PL shopping is all about price. Without reliable data, freight costs balloon, making it more difficult for 3PLs to renew contracts.
For 3PLs, contract renewals mean survival. Retaining existing customers always costs less than acquiring new ones. And in the hyper-competitive 3PL market, renewals are far from guaranteed. Brands demand measurable cost savings and environmental responsibility, and they expect their logistics partners to deliver both.
3PL operators that own their clients’ product dimensions own those savings. That’s a huge competitive edge. Brands that move away from their 3PL can lose millions in freight efficiency gains.
That kind of value is difficult for competitors to replicate. And it can position 3PLs as indispensable partners in a brand’s growth strategy.
Customer Success Story: 1,736% ROI
Numbers speak louder than promises.
We mentioned 1,736% ROI up above. That case involved a large eCommerce retailer that sold fishing tackle D2C. They faced parcel cost increases of 35% year-over-year.
A viral YouTube video of a man lying inside a box used to ship a fishing rod made matters worse. The 4 million-plus views mocked their wasteful packaging.
Working with a Tompkins Ventures Commercial Partner, the retailer underwent a complete baseline assessment. This included product dimensions, shipping air content, CO2 footprint, damaged product returns and throughput. New, accurate product item masters transformed the packaging process.
The results were staggering:
- 22% reduction in shipping costs
- 10% reduction in packaging costs
- 30% reduction in CO2 emissions
- Monthly continuous improvement driven by our Commercial Partner
At a cost of $12,000 per month, the company saved $2.5 million annually in freight, packaging and labor. That’s a 1,736% ROI. Proof that the right packaging solution is not an expense but an engine of profitability.
Automated Packaging Solutions Move Toward the Future
For many companies, right-sizing is only the beginning. Automated packaging solutions deliver even greater efficiency by integrating machine intelligence and robotics into the process. These systems select – and sometimes make – the right-sized box, reducing void fill and optimizing labor usage.
Automation allows businesses to scale quickly, reduce manual errors and ensure consistent quality. In fact, Tompkins Ventures partners have implemented more than 2,500 unique automated solutions worldwide, tailored to specific industries and workflows. These systems improve throughput, reduce carbon footprints and help brands keep pace with growing consumer expectations.
The results of automated packaging solutions speak for themselves. Companies have realized:
- $.70 average saved in packaging costs per order
- Up to 20% less labor required for packing
- 30% less material used overall
- 15% fewer returns due to product damage
- 31% increase in fill rate
- 42% reduction in cubic volume; 80% less void
These metrics demonstrate how automation can reshape cost structures, labor allocation and sustainability outcomes.
A Packaging Solution Must Be More than a Box
No two businesses are identical. That’s why the Tompkins Ventures ecosystem can match companies with a variety of right-sized packaging systems. With our decades of experience, we know which solutions deliver better customer experiences, high-quality operations and savings. And, even more important, we know which ones break down and don’t work.
From finding accurate dimensions and weights to fully automated multi-machine systems, we can find the right path to efficiency, sustainability and long-term cost savings.
Because packaging is much more than a box. It is an opportunity to reduce waste, strengthen brand image, improve sustainability and drive operational excellence. Connect with Tompkins Ventures and discover the right packaging solution for your company’s operations.
Related Reading
- Packaging Solutions that Don’t Leave a Warehouse Mess
- Why Are You Wasting Money and Inviting Customer Ridicule?
- 4 Ways 4PLs Cut Your Logistics Costs – No. 3 is Gold!
Tompkins Ventures matches your enterprise’s challenges with our network of 1000s of Commercial Partners, Capital Partners and Consulting Partners. Our toolbox is unlimited, as every Tompkins Ventures Partner has decades of experience helping companies address the five major factors for business success: Leadership, Capital, Technology, Supply Chain/Facilities and Procurement. In today’s business environment of continual disruption, even the best companies do not do everything great. Your core competency is your business. Our core competency is selecting the right Partner(s) to work with your executive teams to make good companies great. Business strategy and supply chain expert Dr. James A. Tompkins founded Tompkins Ventures in 2020. Our network is based in the U.S. but operates on all continents except Antarctica.
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