How AI Parcel Dimensioning Helps Increase Revenue for Logistics Businesses

V3 Smart Technologies Pte Ltd.

AI is fast becoming a technology no business can do without in the future. However, not many businesses are utilising AI to their fullest potential. In the logistics industry, AI parcel dimensioning is one such underutilised technology. When implemented, it can save freight forwarders, warehouse service providers and e-commerce businesses time and money, as well as ensure revenue recovery for mislabelled or damaged parcels.

Learn how AI parcel dimensioning is revolutionising operations for logistics businesses.


What is AI Parcel Dimensioning?

AI dimensioning technology uses computer vision to accurately measure and analyse physical dimensions of a parcel. It can automate the measurement process, reduce human error and guarantee the accuracy of parcel dimensions. With automated parcel dimensioning, you can cut down the time spent on manual measurements per parcel, and ensure your warehouse or freight space is fully utilised to maximise your bottom-line.


How Is AI Parcel Dimensioning Being Used & What Are Its Benefits?

AI parcel dimensioning is a huge game-changer in the world of logistics. Since shipping is no longer charged solely by weight, but in cubic dimensions of a parcel, shippers have to ensure that parcel dimensions are labelled correctly so as to avoid disputes and additional charges.

Underutilising warehousing or carton space can result in storage space wastage, which is critical to warehouse service providers and freight forwarders. Additionally, labour efficiency is significantly slower with manual measurements.

With AI parcel dimensioning, businesses can stay ahead of the competition by optimising their inbound and outbound operations, as well as maximise space utilisation.

1. E-commerce

Nowadays, e-commerce faces high demand for customer order fulfilment. With warehousing costs rising and the introduction of dimensional weight pricing, businesses have to find ways to minimise parcel sizes, optimise space usage, and maintain labour efficiency at low costs.

AI parcel dimensioning cuts down the time spent on measuring parcels from minutes to seconds, including odd-sized parcels which are more time-consuming. Manual errors are also eliminated, enabling businesses to avoid shipping chargebacks from incorrect parcel sizes. In turn, this reduces labour costs, avoids delays and speeds up last-mile shipping, while allowing staff to deliver improved customer service.

2. Freight Forwarding

Freight forwarders need to constantly verify that the correct parcel details are filed, including parcel dimensions. Parcel measuring is a time-consuming process and can be costly if charges are incurred for exceeded parcel dimensions due to incorrect measurements.

Switching to automated parcel dimensioning can save freight forwarders a lot of costs that result from incorrect documentation and many man hours spent on rectifying these issues. What’s more, AI dimensioning can optimise the use of freight container space, increasing the number of parcels which can be sent out per day, while avoiding delays from repacking when load capacity is exceeded. This provides huge cost savings and improved delivery times, which is a significant competitive advantage for businesses. Additionally, image capture with AI dimensioning is a highly useful tool for reducing damage claims.

3. Warehousing

In warehousing, accurate measurements and space optimisation are essential to efficient goods distribution and storage. For warehouse service providers, having full visibility on warehouse space management will allow for greater revenue opportunities.

AI parcel dimensioning enables warehousing staff to accurately and quickly record down dimensions of incoming freight. This allows warehouse managers to slot items efficiently and truly utilise every inch of space in their warehouse. In addition, the increased speed of parcel dimensioning makes sure that WMS records are always up-to-date. Other than speed and accuracy, AI parcel dimensioning helps to optimise carton and pallet packing for outbound logistics, and even during warehouse relocating.



AI parcel dimensioning is revolutionising packing and transport operations for shippers, carriers, warehousing service providers, and e-commerce businesses. It automates manual parcel dimensioning to reduce labour cost and time, eliminates human errors that can result in extra charges, and also increases efficiency to maximise profit.

Top logistics businesses and early adopters of AI parcel dimensioning solutions are already benefiting from it and using it to stay ahead of competition. Soon, it becomes only a matter of time before AI parcel dimensioning is commonplace in the world of supply chain and logistics.

If you are interested in using AI parcel dimensioning for your business, talk to us to know more.