PACKAGING 101: How to Reduce 2-Day Air Upgrades
In the blog post "PACKAGING 101: How to Reduce 2-Day Air Upgrades," we explore a case study of a frozen pie shipper that initially relied on a simple rules-based approach for shipping: using dry ice to manage temperatures over different shipping durations. This approach often led to costly upgrades from 3-day ground to 2-day air shipping, adding approximately $15 per box due to higher shipping fees and dry ice hazard costs. To tackle this issue, the pie shipper implemented Keep It Cool's thermal modeling software, which uses predictive route and weather analysis to provide real-time, optimized coolant recommendations. The software considers factors such as weather conditions, route, time in transit, box size, insulation, and product thermal mass. This data-driven approach helped the company better differentiate between shipments that could safely use 3-day ground shipping and those needing faster air service. The results were significant: the company reduced its 2-day air upgrades by 50%, decreasing from 40% to 20% of shipments, and saved $30,000 per week on 10,000 shipments. This case study underscores the benefits of using advanced analytics in the shipping industry to optimize costs and maintain product quality.
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