Explain the concepts of unitization and cube utilization. how are they related to benefit reducing transportation costs?

Business

1 answer:

Sliva [168]1 year ago

6 0

Cube utilization is the calculation which determines the total space used in storage.

Cube utilization is expressed as a percentage between 0% - poor and 100% - excellent, accordingly. So if you have filled every available spot in your warehouse with product, then you have 100 percent warehouse cube utilization.

Cube utilization is related to benefit reducing transportation costs, as effective cube utilization significantly lowers freight and supply chain costs. Cubing and weighing equipment helps companies make better use of their warehouse space, cut shipping costs and reduce errors.

Hence, in order to improve cube utilization, products should be shipped in bulk form to avoid packaging.

To learn more about transportation costs here:

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