Shipping costs have historically been calculated based on weight alone. By charging only by weight, lightweight, low-density packages become unprofitable for freight carriers due to the amount of space they take up in trucks, aircraft, and ships in proportion to their actual weight. By using dimensioning technology to calculate an item's dimensional weight, carriers are able to charge based on either volume or weight, depending on which is greater.
In the warehousing industry, dimensioning is used to provide an overview of the volume items in stock which can reduce the costs of materials, return handling, shipping and manpower. It can also be used to determine capacity limits for storage to determine if additional storage requirements are needed at some point.
The main reasons that companies choose to invest in automated dimensioning systems include reduced operational costs, revenue recovery, increased throughput, reduced returns and quality control.[2]
Dimensioning systems are used not only by the biggest companies in the industry such as DHL Express, United Parcel Service, FedEx and TNT but also by postal companies, shipping retailers, and small handling companies around the world