Packaging & Pallets: Infrastructure Decisions That Compound

The box you choose today becomes a recurring cost on every shipment tomorrow. Dimensional weight turns air into money. These are not glamorous decisions-but they determine your cost structure for years.

In Part 2, we talked about systems-and how adopting heavy software too early creates hidden costs. But infrastructure decisions are even more foundational. You can change software. Changing your packaging ecosystem is harder. And the wrong pallet choice can lock you out of carriers entirely.

The Dimensional Weight Problem

Every major carrier charges based on either actual weight or dimensional weight-whichever is higher. Dimensional weight is calculated from the size of the box, not what is inside it.

This is not a minor adjustment. For lightweight products-apparel, accessories, supplements, many consumer goods-dimensional weight can double or triple your shipping costs if packaging is not optimized.

The cruel part: once you have standardized on a box size, ordered thousands of them, trained your team to use them, and integrated them into your workflow, changing is expensive. The wrong box becomes a recurring tax.

Box Sizing: The Fundamentals

Most businesses make one of two mistakes with box sizing:

Mistake #1: Too Few Box Sizes

Simplicity is appealing. “Let’s just use two or three box sizes for everything.” The problem is that every product that does not fit those boxes perfectly is paying a DIM weight penalty. A small item in a medium box is shipping air.

Mistake #2: Too Many Box Sizes

The opposite extreme creates its own waste. Inventory management becomes harder. Pickers need to make more decisions. Training takes longer. Storage space fills with half-empty cartons of rarely-used sizes.

The Right Approach

Analyze your actual order profile. What are your most common items and combinations? What box sizes minimize DIM weight for 80% of your shipments? Build your box ecosystem around that reality-not around what is easiest to order or what looks neat on a shelf.

Protection vs. Waste

Packaging serves two purposes: protection and presentation. Both matter, but they need to be balanced against cost.

Over-Protection

Some businesses pack like they are shipping crystal across an earthquake zone. Triple-walled boxes, excessive void fill, wrap-upon-wrap. This is usually fear-based-someone had a damage claim once, and now everything is over-protected.

The cost is not just materials. It is labor time, box size creep, and DIM weight increases.

Under-Protection

The opposite failure is cheaper packaging that leads to damage. Damage costs show up in:

• Replacement product costs
• Re-shipping costs
• Customer service time
• Brand reputation damage
• Lost repeat business

A damage claim that costs $50 to resolve wipes out the savings from hundreds of “cheaper” shipments.

Right-Sized Protection

Understand what your products actually need. A hardcover book needs different protection than a ceramic mug. A folded t-shirt needs different protection than a framed print. Match protection to the product, not to fear or habit.

The Pallet Question

For businesses that receive or ship freight, pallet selection is surprisingly consequential.

GMA Pallets: The Standard That Matters

Grocery Manufacturers Association (GMA) pallets are the industry standard: 48” × 40”, four-way entry, specific construction requirements. Most carriers, warehouses, and retailers expect GMA-spec pallets. Anything else creates friction.

• Carrier acceptance - Non-standard pallets may be refused or reclassified
• Warehouse handling - Equipment is sized for GMA pallets
• Retail requirements - Big retailers mandate GMA specs
• Stacking and storage - Inconsistent pallet sizes waste vertical space

Wood vs. Plastic: A False Economy

Plastic pallets seem attractive: they are lighter, cleaner, and reusable. But they often create more problems than they solve:

• Higher upfront cost - 3-5x the price of wood
• Carrier friction - Some refuse them or charge extra
• Compatibility issues - May not work with all equipment
• Recovery challenges - If you are shipping out, you are unlikely to get them back

For most operations, quality wood pallets from a reliable supplier are the right choice. They are universally accepted, competitively priced, and disposable when necessary.

Pallet Quality: What Actually Matters

Not all pallets are equal, even within GMA spec. Quality issues that cause problems:

• Broken deck boards - Creates instability and safety hazards
• Split stringers - Pallet can collapse under load
• Protruding nails - Damages product and injures handlers
• Inconsistent dimensions - Does not fit equipment properly
• Contamination - Previous contents can affect your product

Cheap pallets are not a savings if they cause damage, delays, or refused shipments. A reliable pallet supplier-even at slightly higher cost-eliminates an entire category of operational friction.

Labeling and Marking: Small Details, Big Consequences

Warehouse infrastructure includes how things are marked and labeled. Poor labeling practices compound over time.

Product Labels

• Scannable barcodes in consistent locations
• Human-readable identifiers for backup
• Lot/batch numbers if tracking is required
• Consistent sizing and placement across SKUs

Location Labels

• Clear bin/shelf identification
• Logical numbering that matches pick paths
• Durable materials that do not fade or peel
• Consistent height and placement for scanning

Shipping Labels

• Clear, high-contrast printing
• Proper placement (not over seams or curves)
• Protection from moisture and abrasion
• Redundant labels on multiple sides for palletized freight

These details seem trivial until a shipment goes to the wrong destination, a pick takes three times longer than necessary, or a carrier refuses a shipment because the label is unreadable.

Staging and Flow

How product moves through your space is infrastructure too. Poor staging creates hidden costs.

Receiving

Where does inbound product land? How quickly is it inspected, counted, and put away? Product sitting in receiving is inventory you cannot sell.

Storage

Is high-velocity product accessible? Are pick paths logical? Is vertical space utilized? Poor storage layout adds steps to every pick.

Packing

Are packing materials within reach? Are commonly-used box sizes restocked automatically? Is there enough space to work efficiently without crowding?

Shipping

How does packed product move to carriers? Is there clear staging for different carriers and service levels? Can pickups happen without disrupting other work?

None of this is glamorous. All of it affects cost and speed every single day.

The Compound Effect

Infrastructure decisions compound because they affect every unit, every day.

• A box that is 10% too large costs 10% more in DIM weight-on every shipment
• A pallet that gets refused costs re-handling-every time it happens
• A label that is hard to scan adds seconds-to every pick
• A staging area that is too small creates bottlenecks-during every rush

These are not one-time costs. They are recurring taxes on your operation. And unlike software, which can be changed with effort, infrastructure decisions often become embedded in physical reality-boxes ordered by the thousand, pallets stacked in the yard, labels printed by the roll.

Getting It Right

The good news: infrastructure decisions can be made well. The approach:

1. Analyze before standardizing - Understand your actual order profile, not your assumptions
2. Calculate total cost - Include DIM weight, labor, damage risk, not just unit cost
3. Start with standards - GMA pallets, industry-standard box sizes, proven materials
4. Test before committing - Trial runs before ordering thousands
5. Review regularly - Products change, volumes change, carriers change

The goal is not perfection. It is thoughtfulness. Most infrastructure problems come from decisions that were never really made-defaults accepted, habits inherited, shortcuts that became permanent.

What’s Next

In Part 4, we will look at shipping choices-service selection, carrier strategy, and why “fastest” is often not the same as “best.” Infrastructure determines what is possible; shipping choices determine what you actually pay.