Scenario: Dimensional weight factor and volume threshold for carrier services

Various carrier services prefer the shipping cost calculations based on dimensional (DIM) weight. They aim to maximize profitability by encouraging dense packaging and maximize the number of packages that are shipped per truck volume.

Dimensional weight (DIM) is an industry standard to evaluate shipping cost. Not every carrier uses the same criteria, some define specific criteria based on weight to determine which DIM will be used.

The following examples demonstrate how you can configure dimensional weight factor and volume threshold to cater to carrier services that have special shipping criteria.

Example 1: Dimensional weight calculation

The following scenario demonstrates the standard calculation of shipping weight determination.

Scenario: A dimensional volume threshold is not defined

When the dimensional volume threshold is not configured, then the standard DIM weight calculation applies.

If there are two packages with the following specifications,

Package volume = Length (L) x Width (W) x Height (H) =10 L x 6 W x 7 H = 420

DIM factor = 139

DIM weight = DIM volume / DIM factor= Dimensional weight is 420/139 = 3.02 Lb

Weight that is considered for shipping cost calculations = Max (DIM weight, actual physical weight)

If the item weight is 4 lb, then 4 lb is used.
If the item weight is 1 lb, then DIM is used 3.02 lb.

The goal is to encourage a minimum package size for the weight of the item.

Example 2: Single package shipment

Assume that the fulfillment manager sets an individual dimensional weight factor and volume threshold for various carrier services. In this example, Carrier service 1 and Carrier service 2 cost calculations for a package shipment are selected based on the actual physical weight and the DIM weight for shipping. As per the United States Postal Services (USPS), the DIM factor and thresholds for two of the carrier services are as follows.

Carrier service 1: DIM factor air = 139; DIM factor ground = 166; Dimensional volume threshold (cu in) = 799

Carrier service 2: DIM factor air = 139; DIM factor ground = 166; Dimensional volume threshold (cu in) = 1728

DIM weight calculation for ground transportation method: DIM Weight = [Length (L) x Width (W) x Height (H)]/ Dimensional factor ground

Length (L)	Width (W)	Height (H)	Volume (V)	DIM weight: Carrier service 1	DIM Weight: Carrier service 2
9	7.5	2	135	Use physical weight	Use physical weight
10	6	7	420	Use physical weight	Use physical weight
12	8	8	768	Use physical weight	Use physical weight
12	12	8	1152	7	Use physical weight
16	10	8	1280	8	Use physical weight
17.5	11.25	11.25	2215	13	11
24	13	13	4056	24	21

You can see in the preceding table that Carrier service 1 and Carrier service 2 consider only packages with volumes greater than dimensional weight factor and volume threshold to calculate DIM weight. In these cases, Carrier service 1 considers the packages with volumes over 799 and divides the volume by 166 as the DIM factor ground to calculate the DIM weight. Similarly, Carrier service 2 considers the packages with a volume over 1728 and divides the volume by 166 as DIM factor ground to calculate the DIM weight.

If the mode of transport selected by shoppers is air transport, then the DIM factor air is considered for DIM weight calculations. In that case, the volume is divided by 139 to calculate the DIM weight.

Note: The DIM weight and dimensional volume threshold must be configured at each carrier service level. For more information about setting DIM thresholds for each carrier service, see Configuring carrier services.

Example 3: Multi-package shipment

If there is a split shipment or a shipment with multiple packages, Sterling Intelligent Promising performs various computations. The DIM weight computations for various scenarios are as follows.

Scenario 1: The dimensional volume threshold is set to 799: Package 1 volume = 12 x 8 x 8 = 768; Package 1 actual physical weight = 3 lbs; Package 2 volume = 12 x 12 x 8 = 1152; Package 2 actual physical weight = 5 lbs; DIM factor = 166; DIM weight = DIM volume / DIM factor; Weight that is considered for shipping cost calculations of Package 1 = Actual physical weight of the package 1; Weight that is considered for shipping cost calculations of Package 2 = DIM weight = 1152/166 = 7

Note: In Scenario 1, the Package 1 volume (768) is lesser than the dimensional volume factor and threshold (799). Therefore, Package 1's actual physical weight, which is 3 lbs, is considered for shipping cost calculations. The volume of Package 2 is 1152, and is greater than the dimensional weight factor and volume threshold of 799. Also, the DIM weight (7) is greater than the Package 2 weight (5). Therefore, DIM weight of the package is considered for shipping cost calculations.

Scenario 2: The dimensional volume factor and threshold is set to 799 for excessively heavy package shipment: Package 1 volume = 12 x 8 x 8 = 768; Package 1 actual physical weight = 1000 lbs; Package 2 volume = 12 x 12 x 8 = 1152; Package 2 actual physical weight = 1000 lbs; DIM factor = 166; DIM weight = DIM volume / DIM factor; Weight that is considered for shipping cost calculations of Package 1 = Package 1 actual physical weight (1000 lbs); Weight that is considered for shipping cost calculations of Package 2 = Package 2 actual physical weight (1000 lbs)

Note: In Scenario 2, the Package 1 volume (768) is lesser than the dimensional volume factor and threshold (799). Therefore, the Package 1 actual physical weight (1000 lbs) is considered for shipping cost calculations. The Package 2 volume (1152) is greater than the dimensional weight factor and volume threshold (799). However, the DIM weight (7) is less than Package 2's actual physical weight of 1000 lbs. In this case, Package 2 actual physical weight is considered for shipping cost calculations.