PACKAGING 101: How to Reduce 2-Day Air Upgrades

PACKAGING 101: How to Reduce 2-Day Air Upgrades

Case Study: Frozen Pie Shipper

Shipping perishable items like frozen pies across the country requires careful planning and precise execution. Initially, our customer, a frozen pie shipper, used a straightforward set of shipping rules:

• 1 Day Ground: 5 lbs of dry ice
• 2 Day Ground: 10 lbs of dry ice
• 3 Day Ground: Upgrade to 2 Day Air with 10 lbs of dry ice

While this rules-based approach was simple, it often led to costly upgrades to 2-day air shipping for 3-day ground routes. This not only increased shipping costs but also added extra fees due to dry ice regulations. In this blog post, we'll explore how a data-driven solution can help reduce these unnecessary upgrades and save money.

The Problem: Costly 2-Day Air Upgrades

Upgrading shipments from 3-day ground to 2-day air was expensive, with each upgrade costing approximately $15 more per box. This included a ~$10 difference between 2-day air and 3-day ground shipping costs, plus an additional ~$5 per box for dry ice hazard fees.

The Solution: Predictive Route and Weather Analysis

To address these challenges, the frozen pie shipper implemented Keep It Cool's thermal modeling software, which offers real-time recommendations based on several key factors:

1. Predictive Route and Weather Analysis:
   • The software can forecast shipment routes and weather conditions, allowing for more accurate planning and resource allocation.
2. Optimal Coolant Recommendations:
   • It provides customized recommendations for the amount of dry ice needed, optimizing for both safety and cost-effectiveness.
3. Distinguishing Shipping Needs:
   • The system helps distinguish between shipments that can safely go via 3-day ground and those that require the faster, but more expensive, 2-day air option.
4. Peace of Mind:
   • By using advanced data analysis, the shipper can ensure that products are maintained at the appropriate temperature throughout their journey, reducing the risk of spoilage and customer dissatisfaction.

Implementation Details

Keep It Cool's software considers multiple variables to provide accurate recommendations:

1. Weather: Analyzes forecasted temperatures along the route.
2. Route: Considers the specific paths and stops the shipment will take.
3. Time in Transit: Evaluates the expected duration of the shipment.
4. Box Size: Takes into account the dimensions and insulation properties of the packaging.
5. Product Thermal Mass: Assesses how much thermal energy the frozen pies can absorb before their temperature rises to unacceptable levels.

Results

The implementation of Keep It Cool's technology led to a significant reduction in 2-day air upgrades. In 2024, the pie shipper saw a 50% decrease in these costly upgrades, dropping from 40% to 20% of shipments going via air. With a volume of 10,000 shipments per week, this change resulted in weekly savings of $30,000.

This case study highlights the importance of using data-driven solutions in the shipping industry. By leveraging predictive analytics and thermal modeling, companies can optimize their shipping strategies, reduce costs, and ensure product quality. Keep It Cool's technology provided the frozen pie shipper with the tools they needed to make informed decisions, resulting in substantial savings and greater efficiency.

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