AA Global Industries Turns To Custom Packaging To Offset Rising Shipping Costs

COCKEYSVILLE, MD -- The world's two largest parcel shippers will be shaking up the way bulk vending and amusement supplies are delivered. Earlier this year, FedEx announced that "dimensional weight" rules would apply to all of its shipments, and UPS followed suit. Now, FedEx and UPS are determining the cost of a ground shipment by using a dimensional weight formula.

In response to the changes, A&A Global Industries came up with a custom-packaging program aimed at reducing the shipping costs for its bulk vending and amusement machine merchandise. The supplier is now shipping its products in the smallest-possible containers, which often involves custom box sizes fabricated for specific shipments.

Dimensional weight, or DIM weight, is calculated by using a formula that includes the measurements of a package. To arrive at the assigned DIM weight, the carriers multiply the length by width by height of a package, and subsequently divide that number by a standard dimensional factor. Although the package weight still impacts the shipping cost, especially in regard to fuel, a bulky item can cost freight companies even more, as there is only so much room in their trucks, planes and containers.

While the new policy is designed to boost the bottom lines of the two parcel giants, it will not benefit vending operators who receive their confectionery, plush and bulk supplies by FedEx and UPS. They will pay higher freight costs for many lightweight packages as a result of DIM weight pricing, so A&A is trying to reduce that hit.

"Our shipping department makes custom boxes to reduce the size and minimize empty fill to decrease dimensional shipping costs," said A&A executive vice-president Steve Kovens. "Customers can save between 10% and 14% on freight and they could save more, depending on what they're shipping."

A&A is also encouraging customers to adopt their own strategies for reducing shipping costs. It suggests placing larger orders, or using less than truckload (LTL) or full truckload (FTL) shipping. With these options, customers order more products less frequently, saving both time and money.

"We are committed to providing a level of service to our customers that sets us apart," said Kovens. "We work hard to ensure that their shipments arrive safely and on time."

Founded in 1939 and still family-owned, A&A Global Industries distributes capsuled, flat and prize merchandise for the bulk vending and amusement channels. It also produces vending equipment, parts and accessories, and ships from distribution centers in Baltimore and Los Angeles.

PACK'EM UP, LOAD'EM OUT:A&A Global Industries is responding to dimensional pricing policies with custom packages that can hold orders in the smallest possible containers.