Dimensional weight factor and volume threshold

IBM® Sterling Intelligent Promising uses dimensional weight factor and volume (DV) thresholds that are provided as carrier service configuration parameters to improve shipping cost calculations and optimize carrier selection. The dimensional weight factor and volume thresholds determine whether the physical weight or the dimensional weight (DIM), based on the volume of the shipping package, should be used for shipping cost calculations.

These parameters consider the length, width, and height of the package that you are shipping. Each carrier service defines a dimension weight factor that is used to determine the package rates and transit durations. For more information about the unit of measure (UOM) for the dimension weight factor and volume threshold, see Tenant settings.

You can input the Volume threshold, which uses the unit of measure that is equivalent to the Dimension factor. The Volume threshold is considered during cost optimization. If the volume of the package exceeds the Volume threshold, then shipping charges are applied according to either the dimensional weight or the physical weight of the package, whichever is greater. Otherwise, the shipping charges are applied according to the physical weight of the package.

As a fulfillment manager, you can set the dimensional weight factor and volume threshold by using the Order Hub UI. Sterling Intelligent Promising considers the dimensional weight factor and volume threshold during carrier selection and cost optimization. For more information about setting DIM weight factor and volume thresholds for each carrier service, see Configuring carrier services.

Note: Familiarize with the following concepts:
  • The dimensional volume of the package is calculated as Length (L) x Width (W) x Height (H).
  • Dimensional weight (DIM) is an equation that is provided by the carrier service to determine the shipping cost by itself against the physical weight. The DIM is calculated as follows by using a carrier provided dimensional factor.

    DIM weight= [Length (L) x Width (W) x Height (H)]/ Dimensional factor

To improve flexibility for carrier setup, Sterling Intelligent Promising supports customization of DIM weight applicable based on the package volume. Certain carrier mandates package volume smaller than a threshold, then the physical weight is used for shipping. Alternatively, when package volume is above the threshold then the standard DIM computation takes place.

The package volume calculations are as follows:

  1. Determine Package Volume (For example, cubic inch)

  2. If the Package volume is less than the dimensional volume threshold, package weight is used for shipping.

  3. If the package volume is more than dimensional volume threshold, then standard DIM calculations place.

DIM calculations:

  1. Calculate the DIM weight.

    DIM weight= [Length (L) x Width (W) x Height (H)]/ Dimensional factor

  2. Compare DIM weight and physical weight, use whichever is greater.

For more information about dimensional weight factor and volume threshold and DIM weight calculation in real-time scenarios, see Scenario: Dimensional weight factor and volume threshold for carrier services.