Shyp: the science of the packaging process

For logistics to fulfill its role perfectly, it is necessary that the product arrives at the desired place, within the promised period and in an appropriate manner. To ensure this last aspect, nothing is as important as packaging. What good is it for a customer to receive a product quickly if it arrives crumpled or broken?

Just over 3 years ago, ILOS carried out an interesting experiment to evaluate the logistical performance of some of the main online stores in Brazil. Six large e-commerce retailers were asked to deliver a glass bowl to different addresses throughout São Paulo and Belém. Between delays and order cancellations, many damaged products also arrived. Among the cases, a company that, instead of sending the only glass requested and charged, sent a package with 6 units, of which 3 were broken. Was it an attempt to guarantee that at least one of the products would come out perfect? Wouldn't it be better for the company to invest time and resources in ensuring the correct packaging of the product instead of wasting products and space in the vehicles transporting products that the customer did not order?

In your most recent post, Maria Fernanda commented on the opportunities to increase logistics efficiency through the redesign of packaging. Because an American startup located in Silicon Valley seems to have thought about that when creating its business.

Just as uber rush, Shyp promises convenience by quickly picking up the order and making it arrive correctly at its destination. All requested through an application on the smartphone or tablet (Figure 1). The similarities, however, stop there. At Shyp, the person responsible for packaging the product is the company itself and the product is delivered by a carrier.

Figure 1 – Shyp application

Source: Tech Crunch

The service works as follows: the customer accesses the company's application and takes a photo of the product he wants to ship. Within 20 minutes, a Shyp professional picks up the product on site and takes it to the company's warehouse. And that's where the science happens. Specialists carefully analyze each product, identifying the weakest points that are susceptible to damage during the order's transport, and develop a customized package for the item. Using special wrappings and a machine designed to create cardboard boxes with the desired dimensions, each package is made considering the size, weight and peculiarities of each product. The result is well-protected orders and compact packaging for the most diverse types of products.

Next, Shyp selects, among the main carriers in the country, such as UPS, FedEx and USPS, the one that offers the cheapest shipping considering the dimensions and weight of the package, distance to the recipient and delivery speed desired by the customer. This, in turn, monitors and tracks the entire process through its application.

In addition to freight paid to the carrier, Shyp charges US$5 for its service, which includes insurance of US$100 in cases of theft or damage to the product. For small or medium and non-fragile products, packaging is free. For the others, there is still a small extra fee, defined on a case-by-case basis.

The service is promising. For customers, the ability to ship a package without having to worry about properly packing the item and having to look for the cheapest carrier to do so. For carriers, a great opportunity to gain efficiency: in addition to picking up several orders in a single place (Shyp's warehouse), the correct packaging process allows maximum use of vehicle capacity and avoids air transport.

The downside? While orders can be delivered worldwide, the pickup service is currently only available in San Francisco, New York, Los Angeles and Chicago.