Top 10 Insights from Cartonize 2025
Cartonize 2025 may have only been one day, but it was packed with valuable insights shared by leaders from across the supply chain ecosystem. From packaging optimization, fulfillment efficiency, and logistics innovation, keynote speaker Nabil Malouli and Paccurate Enabled™ partners shared fresh perspectives on common supply chain challenges. This blog captures the most valuable takeaways from each key session.
1. Supply Chain Volatility is the New Normal
Nabil Malouli, SVP of eCommerce and Returns at DHL, kicked off the event by examining the macro environment facing supply chain professionals today.
Key Takeaway: Supply chain volatility is the new normal, requiring businesses to develop adaptive strategies rather than waiting for stability to return.
Malouli identified several major forces reshaping supply chains:
Global Market Volatility: Tariff fluctuations, geopolitical tensions, and inflation are creating persistent uncertainty.
eCommerce Growth: Despite already significant penetration, eCommerce continues to expand and is expected to reach $14-20 trillion by 2040.
Accelerating Digitalization: Technologies that seemed futuristic are now entering mainstream adoption, from autonomous vehicles to warehouse robotics.
Companies are responding with diversified sourcing strategies, including:
Wait-and-see approaches for non-urgent procurement
Front-loading deliveries before tariff implementation
Shifting production to regions with favorable trade relationships
Utilizing free trade zones and customs consolidation
Malouli emphasized that companies should focus on solutions that improve multiple dimensions simultaneously: "How do we make sure that whatever we deploy actually serves this purpose... in multiple dimensions, not only in a single dimension."
2. Personalized Checkout Experiences Dramatically Reduce Cart Abandonment
Avi Moskowitz, CEO of PrettyDamnQuick (PDQ), demonstrated how AI and automation are transforming the e-commerce checkout experience.
Key Takeaway: Personalized, intelligent checkout experiences significantly reduce cart abandonment while increasing average order value and customer loyalty.
Moskowitz highlighted that abandoned checkouts represent approximately $270 billion in lost sales annually, largely because online shoppers lack the confidence of in-store purchases:
"In e-commerce, when you purchase something... you're actually paying money but leaving it at the counter. And that leap of faith that customers are required to make... means that there are a lot of checkouts that are abandoned."
PDQ's solution collects over 1,600 data points to create personalized checkout experiences based on:
Customer segments (first-time vs. returning customers)
Cart value and composition
Inventory location relative to the customer
Carrier capabilities and transit times
When integrated with Paccurate, the system ensures that upsells are both relevant and profitable by confirming items will fit in the same box.
Real results for businesses include:
Underoutfit: $640,000+ in additional revenue
Jones Road Beauty: $1.5+ million in added contribution margin
Laura Geller Cosmetics: Nearly $800,000 in incremental revenue
3. Rules-Based Order Management Protects Margins While Enhancing Customer Experience
Joe Henderson, Senior Director of Technology Alliances at Deposco, explained how modern Order Management Systems (OMS) are critical for meeting customer expectations in the e-commerce era.
Key Takeaway: Rules-based order management is essential for protecting margins while delivering consistent customer experiences across multiple channels.
Henderson highlighted the radical transformation of retail:
eCommerce has grown at 13% CAGR over 10 years (vs. 3% for overall retail)
Online's share of retail has grown from 6% to 21%
90% of shopping journeys now begin online
Yet customer tolerance for errors is minimal:
32% of customers never return after one error
80% never return after two errors
Customers tell 9-15 friends about negative experiences
Modern OMS addresses these challenges through:
Intelligent Inventory Allocation across channels to prevent stockouts
True Available-to-Promise calculations incorporating all inventory sources
Cross-Channel Synchronization to maintain accurate availability
Companies implementing these systems, like Altitude Sports and Psycho Bunny, have seen substantial improvements in operational efficiency and delivery times, resulting in:
10-point increase in customer satisfaction
4-10% increase in sales
20% reduction in pick time and 30% increase in productivity
4. Data Normalization is the Foundation for Both Current Operations and Future AI
AK Schultz, CEO of SVT Robotics, assessed the risks in implementing new supply chain technologies and the importance of data normalization.
Key Takeaway: Data normalization is essential for both today's operations and tomorrow's innovations—especially AI implementation.
Schultz categorized innovation risks into two primary buckets:
Operational Risk: Will the technology achieve ROI through improved cost and performance?
IT Risk: Can the technology be supported, integrated, and secured within the existing environment?
He emphasized that data integration approaches often create "black pipes" that make information difficult to access: "When you hook two things together... these pipes are not clear tubing. They are black pipes. And once they're connected, it's really hard to do stuff with that data afterwards."
"Data is useless unless it can be converted into information," Schultz explained, highlighting that many companies collect vast amounts of data that never generate actionable insights.
The solution is to normalize data at the integration layer, which:
Makes it easier to connect systems
Creates reusable data patterns
Enables better analytics and eventual AI implementation
Schultz cautioned that despite AI hype, many organizations aren't ready: "We're all talking about AI, but we can barely do data analysis... We have decades of technical debt that have created a state where the data is not AI-ready."
5. Right-Sized Packaging Delivers Triple Benefits: Sustainability, Cost Savings, and Customer Experience
Cameron Stout, Senior Director of Strategic Partnerships at Packsize, made a compelling case that sustainable packaging initiatives deliver measurable financial returns.
Key Takeaway: Right-sized packaging delivers a triple benefit of sustainability improvements, cost savings, and enhanced customer experience.
Stout shared data from 38 million parcel audits demonstrating the impact of optimized packaging:
43% reduction in cubic volume
32% increase in fill rate
84% less void fill use
4% reduction in total cartons shipped
These improvements translate to significant financial benefits:
$0.50 per order in outbound logistics savings
$0.40 per order in packing labor savings
$0.07 per order in void fill savings
$0.13 per order in material savings
Beyond immediate cost benefits, Stout highlighted increasing regulatory pressure:
Six US states have implemented Extended Producer Responsibility regulations
The EU's Packaging and Packaging Waste Regulation (PPWR) requires packages to be over 50% full
6. Guided Packing with Built-In Verification Dramatically Reduces Errors While Improving Speed
Kris Pazhayanoor from Aptean demonstrated how their Pack-Verify module, integrated with Paccurate, addresses critical challenges in order fulfillment accuracy and efficiency.
Key Takeaway: Guided packing with built-in verification dramatically reduces errors while improving speed.
Pazhayanoor highlighted significant business problems:
23% of returns result from shipping wrong items
65% of order errors occur during fulfillment
Average error cost: $25 including customer dissatisfaction and reshipping
Their Pack-Verify solution combines barcode scanning with Paccurate's cartonization to create a guided packing experience that:
Verifies each item belongs to the order being packed
Recommends the optimal carton for the order
Guides the packer through the best packing arrangement
Confirms the correct carton is used
In a real-world implementation, this approach reduced packing time from 32 to 12 seconds per carton—equivalent to one full-time employee—while dramatically reducing errors.
Future enhancements include RFID-based verification to further accelerate the process while maintaining accuracy.
7. Cartonization Creates Exponential Value Throughout the Fulfillment Process
TJ Fanning, VP of Sales at Kardex, explained how Paccurate's technology enhances AutoStore implementations by optimizing both storage density and shipping efficiency.
Key Takeaway: Cartonization technology creates exponential value when applied throughout the fulfillment process, from storage bin optimization to outbound shipping.
Fanning demonstrated how Paccurate's technology helps improve warehouse optimization beyond just outbound shipping:
Determining optimal AutoStore bin sizes for inventory profiles
Creating variable compartment configurations within bins
Maximizing cube utilization inside each bin
Optimizing order staging and consolidation
Selecting the ideal outbound carton
This comprehensive approach delivers multiple benefits:
Up to 20% improvement in AutoStore storage density
Fewer bins and smaller grid requirements
Reduced robot travel time
More efficient order staging
Optimized shipping costs
The integration of Paccurate with Kardex's FulfillX software creates "a true differentiation on the market" by optimizing the entire fulfillment process rather than just individual components.
8. Flexible Technology Enables 3PLs to Quickly Adapt to Market Changes
This panel discussion featuring Justin Kramer from ProShip and Doug Varga from Barrett Distribution explored how 3PLs use technology to differentiate their services and drive customer growth.
Key Takeaway: Flexible technology enables 3PLs to adapt quickly to market changes and optimize carrier selection as a business decision rather than a technical constraint.
Insights from the panel:
Barrett Distribution focuses technology investments on business outcomes rather than infrastructure management
Technology is a key differentiator in RFPs, but must be well-implemented.
AI implementation is most valuable when embedded in specific use cases like robotics and process automation
On carrier volatility, Varga explained that their technology makes selecting or changing carriers a pure business decision without technical complications. They can freely choose the best carrier for each situation based on service levels and costs, without worrying about complex integration work. As he put it, they're not restricted by technical limitations when carriers enter or exit the market - they just need to know delivery timeframes and customer impact to make informed decisions.
Kramer added that the carrier market is experiencing "our own small industrial revolution" with new options beyond traditional national carriers, making flexible technology even more crucial.
9. Decision Intelligence is Replacing Pure Automation as the Supply Chain Priority
Bob Malley, CEO of Sendflex, and Brad Davis, VP of Operations for NRS, shared strategies for controlling shipping costs in an increasingly complex parcel market.
Key Takeaway: Intelligent decision-making throughout the order journey is now more critical than operational automation for protecting margins.
Malley highlighted the industry's shift from operational automation to decision intelligence: "The trend today is decision intelligence. It's almost like automation is the table stakes, decision intelligence is what shippers want today to make better decisions to control cost."
Davis shared NRS's implementation results:
16.3% reduction in shipping cost per package
Reduced packaging material expenses despite 15% volume growth
Added revenue through strategic shipping offers in their shopping cart
Their approach integrated decision intelligence across multiple touchpoints:
Using Paccurate to determine optimal carton selection
Applying carrier selection rules based on service requirements and cost
Offering expedited shipping options for a small upcharge
Continuously analyzing performance to identify additional savings
Davis emphasized the importance of carrier diversity: "It started with us understanding our data and picking a platform that could handle different carriers."
10. Successful Innovation Requires Specific Business Focus and Incremental Implementation
Throughout multiple sessions, speakers addressed practical approaches to innovation and technology implementation in supply chain operations.
Key Takeaway: Successful technology implementation requires a focus on specific business problems, incremental approach, and organizational alignment.
Common themes across sessions included:
Focus on specific business problems:
"What business you're in, what should those rules look like... taking a full 360 view is where you would start." — Doug Varga, Barrett Distribution
"If there isn't a problem to soolve, the solution is actually going to get in the way." — Joe Henderson, Deposco
Incremental implementation over "big bang" projects:
"Instead of trying to design the perfect solution set, let's put the right products, the right algorithms, and the right software in place." — TJ Fanning, Kardex
"The most common barrier is really just lack of wanting to go box first, but maybe not having all your product dimensions." — Cameron Stout, Packsize
Alignment with operational realities:
"WMS is not built for that kind of complexity... They route you through the warehouse utilizing pick waves based on productivity, which is great... but when it came time to package, it's just 'hey, we can produce a label for you.'" — Brad Davis, NRS
"Just because it looks cool doesn't mean we should do it. There could be a simpler option that's just as effective, if not better." — TJ Fanning, Kardex
Conclusion
Cartonize 2025 demonstrated that supply chain optimization has entered a new era—one where intelligent decisions about packaging, carrier selection, and inventory allocation directly impact both customer experience and the bottom line.
The insights shared across sessions reveal that cartonization technology has evolved from a narrowly focused solution to a critical component in an integrated decision intelligence ecosystem. Companies implementing these technologies are seeing measurable improvements in storage density, labor efficiency, shipping costs, and customer satisfaction.
As parcel costs continue to rise and customer expectations increase, the competitive advantage will go to companies that implement these intelligent optimization solutions throughout their fulfillment operations. To dive deeper into each topic, watch Cartonize on-demand.