With over 68,937 third-party logistics providers (3PLs) in the U.S. and more entering the market every year, standing out is imperative. The most successful 3PLs find ways to increase efficiency while adding value for their clients. Investing in automation such as automated storage and retrieval systems (ASRS) or autonomous mobile robots (AMRs) to speed up order fulfillment is en vogue. But there’s another competitive advantage that’s gaining traction: Cartonization.

It’s not just any cartonization, such as liquid fill, the kind built into most warehouse management systems (WMS), but advanced 3D cube cartonization. The 3PLs adopting this technology are not only improving efficiency, but also winning new business by offering smarter, more cost-effective processes. Let’s break down why modern cartonization is becoming a must-have for 3PLs.

Meeting Client Requirements With Flexibility

With every client comes different packing and packaging needs. Some ship fragile products, while others deal with hazardous materials or oversized items. And some even want their orders packed in custom branded boxes with branded inserts. Managing these requirements can be especially challenging for multi-client 3PLs.

Legacy cartonization often results in poor packing recommendations, increased damage risk, wasted materials, and even violated client service level agreements (SLAs). Working with a 3PL to build a cartonization solution for each customer could be an option, but this can be time-consuming and expensive. 3D cube cartonization allows 3PLs to offer tailored solutions without exhausting internal resources to build a product that already exists.

As client requirements evolve, so should your cartonization logic. Instead of rebuilding packing rules from scratch, advanced cartonization lets you scale with your customers. Using an advanced API, you can easily incorporate rules into packing requests. That means packing decisions aren’t just based on weight and dimensions, but on real-world operational constraints. Need to ensure items ship in a specific orientation? Done. Have SKUs that require their own packaging? No problem. Want to prioritize branded boxes? You can easily set that as a rule. Every pack is optimized every time.

Faster Order Throughput

Implementing automation in fulfillment, such as for picking, is a major step toward efficiency. However, it often shifts bottlenecks downstream to packout. As picking speeds and order volumes increase, the packing zone can quickly become overwhelmed, leading to delays, inefficiencies, and errors.

Advanced 3D cube cartonization eliminates the guesswork from packing. Instead of packers manually deciding which box to use or how to arrange items, intelligent cartonization ensures optimal box selection and packing configurations in real time. This streamlines the process, allowing packers to pack fast and accurately while ensuring items are properly protected for shipment. By removing bottlenecks at packout, businesses can improve efficiency, meet SLAs, and keep fulfillment running smoothly—especially crucial for 3PLs that face penalties for missed deadlines.

Fewer Returns, Happier Customers

Returns are a major challenge for retailers, with 34% of product returns caused by damage. Without proper packing considerations, products are more likely to shift, collide, or break during transit. This directly impacts customer satisfaction and threatens your clients' long-term business success.

Damaged products due to poor packing continue to drive up return rates, cutting into margins and increasing the workload for 3PLs. Right-sizing boxes helps prevent these issues, ensuring customers receive their items intact. This not only improves client satisfaction, but also strengthens long-term partnerships. Cartonization platforms like Paccurate help businesses right-size their shipping cartons in real-time with their modern APIs while also simulating the ideal box lineup to minimize costs and reduce waste.

Sustainability Is Becoming Non-Negotiable

Brands are under increasing pressure to ship more sustainably. Consumers expect it, and regulations are making it a requirement. As a result, brands are seeking 3PLs that are prioritizing sustainability and can help them meet their ESG goals.

3PLs play a critical role in reducing packaging waste through optimized cartonization. Advanced 3D cube cartonization eliminates wasted space in packages, reducing void fill and enabling trucking assets to be used more efficiently. With less air in each box, fewer trucks are needed to move the same volume of orders, decreasing scope 3 emissions.

New regulations, like those introduced in the EU and New Jersey, target shippers with poor volume utilization and push businesses to rethink their packing strategies. Shippers using boxes more than twice the size of the item inside could face substantial fees of $200–$500 per occurrence in New Jersey, adding significant unexpected costs to each shipment. 3PLs offering cartonization solutions to keep shipments compliant and optimized for volume utilization are in a stronger position to retain and attract customers.

Reducing Transportation Costs for Clients

Carrier rates keep climbing, and general rate increases (GRIs) are making it harder for shippers to control costs. Surcharges on shipments such as oversized goods and same-day delivery have skyrocketed. 3PLs that can help clients pack more efficiently to lessen the blow of these increasing expenses provide a major competitive advantage.

Paccurate’s cartonization engine can factor in negotiated carrier rates, ensuring that every order is packed in the most cost-effective way. Instead of focusing on volume reduction alone, it can factor in the counterintuitive incentives from your negotiated rate cards. Helping customers spend less on shipping strengthens relationships and makes your services even more valuable.

Visibility into Packing Analytics

Many 3PLs struggle to see the full impact of their packing decisions. How much are inefficient packs costing you and your clients in excess materials, wasted space, and higher shipping costs? Without tracking and analytics, it’s hard to know.

PacHealth, part of the Paccurate platform, is a dashboard that provides real-time analytics on packing performance, cost savings, and sustainability impact. 3PLs can benchmark efficiency, spot recurring inefficiencies, and make informed improvements for clients. With detailed reporting, clients can get more visibility into their fulfillment operations, helping them reduce costs, reduce waste, and meet sustainability goals.

Beyond efficiency, these insights give 3PLs a competitive edge. Clients are more likely to stay with a provider that helps them optimize costs and meet sustainability goals. As packaging regulations tighten, having clear data to show supports compliance and can prevent exposure to costly fines down the road.

The Bottom Line for 3PLs

Clients expect more from their 3PL partners, and those who modernize their packing processes today will be better positioned for long-term success. Upgrading legacy cartonization isn’t just a “nice to have”—it’s a necessity for staying competitive.

Ready to optimize your packing strategy? Learn how Paccurate can help.