Did you know it costs more to ship 100 pounds of feathers, than 100 pounds of bricks? Shipping costs are determined by volumetric weight, a pricing technique for commercial freight transportation which uses an estimated weight that is calculated from the length, width, height of a package. A less dense item generally occupies more volume of space, in comparison to its actual weight – so when you are transporting items you are essentially paying for the space your product is occupying in the airplane or truck carrying it.
ON Semiconductor has found a way to increase packing density, in order to decrease the volumetric weight with our tape and reel packing process. Tape and reel involves several surface mounted devices (SMDs) being placed on a tape and wound on a reel for easy transportation. By doubling the amount of reels in a box, the company is able to increase our packing density. Not only does this lower transportation costs to the company, but also reduces CO2 emissions (less trucks and planes needed for transport) and an estimated 375,000 kilograms (roughly 826,733 pounds) of yearly packing materials not going to landfills. In addition to being more cost effective, this adjustment poses no impact to our customers and has the potential to take up much less space in customer stockrooms.