Fraunhofer Institute Develops Software for More Sustainable E-Commerce
3/11/2024 Sustainability New Paths Article

Fraunhofer Institute Develops Software for More Sustainable E-Commerce

The Fraunhofer Institute for Material Flow and Logistics IML has launched CASTN (Carton Set Optimization), a software that online retailers can use to optimize the carton sets for their products. The research team is also exhibiting at FACHPACK 2024.

Two men standing in front of container filles with shipping cartons. With the help of the CASTN optimization software, shipping companies can select the optimal carton set for each item and order structure.
Products ordered online are often shipped in oversized cartons. The types of packaging are becoming increasingly diverse, but the bottom line is that they are still too bulky. Items that require little packaging, such as fragrances, cosmetics, and jewelry, continue to end up in oversized boxes. This is mainly due to the fact that packaging is not selected on the basis of changing product and order requirements such as dimensions and weight, explain researchers at Fraunhofer IML. To change this, they have developed the CASTN (Carton Set Optimization) software, which was funded by the Fraunhofer Center for Excellence in Logistics and IT. The software puts together the optimum order-to-carton combination for each customer order. Smart algorithms calculate the best carton utilization based on the article and order structure.
Lukas Lehmann from Fraunhofer IML speaks on FACHPACK 2022. Expert Lukas Lehmann from Fraunhofer IML in Dortmund spoke at FACHPACK 2022 about optimization possibilities in logistics. The IML will also be represented at FACHPACK 2024.
CASTN puts together “the optimum box set” for the individual item and order structure for shipping companies. “If a retailer wants to use a set of ten different boxes at its packing stations, these must be adapted to the order and item structure in order to achieve the best possible volume utilization. The products must fill as large a volume of the box as possible so that as little padding as possible is required,” explains Lukas Lehmann, a scientist at Fraunhofer IML. To achieve this, the Fraunhofer IML development team enters customer data (order, article master, and packaging specification data) into CASTN. To map a representative period, including seasonal fluctuations, the data usually spans an entire year. Based on these input parameters, two interlinked software algorithms jointly calculate the optimum carton set. Both customer requirements, such as minimum or maximum parcel sizes, and the needs of the logistics service provider are taken into account.

Sustainability in E-Commerce

CASTN works with two algorithms: The first uses an evolutionary approach to create different box sets based on parameters such as the number of boxes allowed or the maximum and minimum dimensions. The second – a bin-packing algorithm – ensures that orders are packed efficiently into the selected cartons. The aim is to minimize the packaging volume and achieve the smallest possible total volume. At the end of this process, the software evaluates each box in a set and checks how well the internal volume is filled by the order it contains. This information is fed back into the evolution algorithm, which uses the evaluation of each box to create new, better sets. This continues until better volume utilization can no longer be achieved.

70 Percent Air in the Box

“Customers are often unaware of the volume utilization of their packaging, which is often only around 30 percent. They have no idea how much air they are sending. Our software calculates this,” says Lehmann. Once the optimization is complete, the results are analyzed together with the customer in order to select the right carton set.

According to the researchers, several industrial partners, each with their own online retail business, have already benefited from this carton set optimization, increasing their volume utilization by 35 to 45 percent.

In the next step, Lehmann and his team want to expand the functionality of the software to include complex article shapes and additional article properties. “We want CASTN to increase sustainability in logistics. Packaging and padding material can be saved thanks to optimally coordinated carton sets. This leads to better truck loading and lower CO2 emissions and can also avoid wasted space,” says Lehmann.

The Fraunhofer Institute for Material Flow and Logistics IML is one of the exhibitors at FACHPACK 2024.

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