Diverseco are licensed NMI verifiers
Diverseco, as a company, as well as many of our technical staff are licensed by the Australian National Measurement Institute and ‘SPRING’ in Singapore to verify approved weighing and dimensioning instruments and have deep expertise regarding legal for trade parcel and pallet freight measurement systems and requirements.
What does ‘revenue leakage’ and ‘revenue recovery’ mean in the transport industry – and why is dimensioning important to this? Revenue leakage is a critical challenge in transport industry – particularly in the less-than-truckload (LTL) and less-than-container load (LCL) sectors. Specifically, when a customer (a shipper) declares that a parcel or pallet’s dimensions and/or weight are less than they actually are then the shipping service provider will ‘leak revenue’ that would otherwise be due to them were the correct declarations made originally. Click here to read ‘Is Your LTL Freight Depot Leaking a Million Dollars a Year in Revenue?’ (note. links to blog content are current urls)
Revenue recovery occurs when the parcel is measured by a legal for trade instrument and its true dimensions and weight are captured and recorded and used to amend the shippers original declarations so that the shipper is charged correctly for either the weight or space (ie the Dim Weight) that is used as the basis for the shipping fee. Use of the legal for trade measurement systems is part of an overall revenue assurance process.
How is Dimensioning Automation Part of Industry 4.0? Dimensioning automation is fundamental part of digitization in the supply chain; that is, in the creation of the digital supply chain ecosystem. SKU, parcel, or pallet weight and dimensional data are captured, tracked, traced, and otherwise processed in real time, eliminating manual measurement or manual data entry and further ensuring data integrity. It is the transition from analogue processes to digital processes supported by the internet and/or stakeholder digital networks. Dimensioning and weighing automation is a key part of ‘smart warehousing’.
The digital supply chain, as some have envisioned it, consists of eight key elements: integrated planning and execution, logistics visibility, Procurement 4.0, smart warehousing, efficient spare parts management, autonomous and B2C logistics, prescriptive supply chain analytics, and digital supply chain enablers.
Companies that can put together these pieces into a coherent and fully transparent whole will gain huge advantages in customer service, flexibility, efficiency, and cost reduction; those that delay will be left further and further behind. For some supply chain companies dimensioning automation plays a critical part in the digital transformation of their businesses.