Why Using CBM Cuts Costs in Inventory Replenishment

Replenish Stock Smarter: CBM Vs. Traditional Truck Size Pricing

Struggling with high shipping costs? Discover how CBM pricing optimises your stock replenishment and saves your business money on freight.
5 mins read

If you’re still using outdated logistics methods, you’re wasting money. 

In Malaysia’s highly competitive business environment, logistics managers are increasingly confronted with the challenge of managing inventory replenishment costs.

Traditional pricing models, which rely on truck size and distance, are proving inadequate as they often result in inflated costs, undermining business efficiency.

The shift to Cubic Meter (CBM) pricing, which charges based on the volume of goods, offers businesses a much better option with efficient, cost-effective solutions for inventory replenishment.

But, how far does CBM pricing significantly optimise inventory replenishment efforts? 

Let’s find out!

What is CBM and Its Role in Inventory Replenishment?

Ninja Van delivery service ensuring efficient inventory replenishment for businesses in Malaysia.
Ninja Van delivery service ensuring efficient inventory replenishment for businesses in Malaysia.

CBM, or Cubic Meter, is a practical measurement used to gauge the volume of goods in logistics. This metric is crucial for inventory replenishment because it allows businesses to evaluate shipping costs based on the space occupied by their products.

To calculate the CBM for one box:

CBM = Length x Width x Height
CBM = 1m x 0.5m x 0.4m = 0.2 cubic meters (CBM)

If you have 100 boxes, the total CBM would be:
Total CBM = 0.2 CBM x 100 boxes = 20 CBM

By grasping the importance of CBM, you—as logistics managers—can make informed decisions that positively impact their bottom line.

Imagine you’re a Malaysian business needing to ship goods that take up three cubic meters of space. 

With CBM pricing, you’d only pay for that exact volume, saving you a lot of money compared to traditional methods, where you’d be charged for an entire truckload, even if you’re not using all the space.

Switching to CBM pricing helps businesses manage costs better, especially with rising logistics prices.

More logistics providers in Malaysia, like Ninja Van with its B2B inventory restocking, are jumping on board to help businesses make smarter shipping choices.

“Maximize Profit, Minimize Costs” — Top 3 Financial Benefits of CBM Pricing in Inventory Replenishment

Ninja Van's stock replenishment service ensuring timely delivery and efficient stock transfer.
Ninja Van’s stock replenishment service ensuring timely delivery and efficient stock transfer.

1. Efficient Space Utilisation

One of CBM pricing‘s most significant advantages is its ability to promote efficient space utilisation within a truck

Companies are increasingly adopting volume-based pricing for transportation, where charges are determined by the actual volume of goods—minimising wasted space and enables businesses to optimize their logistics.

A Ninja Van truck transporting goods for stock replenishment in Malaysia.
A Ninja Van truck transporting goods for stock replenishment in Malaysia.

According to industry studies, businesses implementing CBM pricing can achieve shipping cost reductions, making it an appealing option for those looking to streamline expenses.

With emphasised volume considerations, logistics providers using CBM pricing ensure that ships and trucks are loaded optimally—preventing costly unused space and encouraging better cargo loading practices for more efficient operations.

2. Optimising Shipment Planning

Ninja Van facilitating fast inventory replenishment with efficient stock transfer across Malaysia.
Ninja Van facilitating fast inventory replenishment with efficient stock transfer across Malaysia.

CBM pricing saves costs and allows businesses to optimise their shipment planning. 

Businesses can replenish stock more frequently and strategically by providing the flexibility to adjust shipment sizes according to real-time volume requirements.

For instance, if a business experiences an unexpected surge in demand for a specific product, CBM pricing enables it to respond quickly by increasing shipment size without incurring unnecessary charges. 

This responsiveness is vital when customer demands can change rapidly and significantly impact operations.

3. Cost Savings on Partial Loads

Ninja Van helping businesses with inventory replenishment and stock transfer across Malaysia.
Ninja Van helping businesses with inventory replenishment and stock transfer across Malaysia.

CBM pricing shines especially for businesses that require irregular or smaller stock orders. 

Under traditional pricing models, companies often pay for unused truck space.

The CBM model addresses this concern by basing costs on the actual volume of goods transported.

Consider a small manufacturer needing to ship a few pieces of equipment for a specific project. 

Using CBM pricing, they can ship only the necessary volume without worrying about paying for a full truckload

This flexibility reduces shipping costs and allows businesses to invest in other critical areas.

Comparing CBM Pricing to Traditional Models

Pricing ModelChallengesHow CBM HelpsBenefits of CBM
Truck Size PricingBusinesses overpay for transportation when shipping smaller quantities, leading to inefficiencies and wasted space.CBM aligns costs with actual volume, ensuring businesses only pay for what they use.Fewer budget overruns, more predictable cost structure, and space-efficient logistics.
Distance-Based PricingBusinesses shipping lower-volume loads tend to overpay due to distance-based calculations.CBM pricing helps businesses pay based on actual volume rather than distance, improving cost alignment.Enhanced forecasting, better budget management, and more accurate financial planning by focusing on volume.

The Advantages of CBM for Variable Stock Replenishment Needs

#1. Flexibility in Replenishing Stock

CBM Malaysia: The key metric for businesses managing inventory and stock replenishment needs.
CBM Malaysia: The key metric for businesses managing inventory and stock replenishment needs.

CBM pricing is a game-changer for businesses grappling with variable stock replenishment needs. It provides the flexibility to adjust shipment sizes based on real-time demand. 

Such adaptability is critical in today’s dynamic business environment, allowing companies to remain agile and responsive to challenges.

For example, a retailer facing sudden changes in customer preferences can quickly modify their order quantities without being locked into rigid truck size or distance commitments. 

This ability to pivot ensures that businesses can always meet customer expectations, enhancing customer satisfaction and loyalty.

#2. Lower Storage and Shipping Costs

Stock transfer logistics powered by Ninja Van for seamless inventory replenishment.
Stock transfer logistics powered by Ninja Van for seamless inventory replenishment.

Adopting CBM pricing also reduces storage costs. 

It allows businesses to replenish stock more efficiently, mitigates the risk of overstocking, and allows companies to tailor their shipments based on actual volume requirements. 

Thus, companies can maintain optimal inventory levels without incurring unnecessary warehousing expenses.

Moreover, the focus on volume inherent in CBM pricing promotes more frequent, smaller deliveries. 

This strategy ensures that businesses carry only the necessary inventory, thus minimising storage costs and the challenges of managing excess stock.

Why CBM is the Future of Efficient Stock Replenishment

Streamlining stock replenishment through Ninja Van’s inventory management and transfer solutions.
Streamlining stock replenishment through Ninja Van’s inventory management and transfer solutions.

In summary, transitioning to CBM pricing allows organisations to navigate the complexities of modern logistics challenges with agility and efficiency. 

As companies rely more on data-driven decision-making and seek sustainable solutions, CBM pricing emerges as a viable strategy that aligns with broader trends in the logistics and supply chain sectors.

So, What Do We Think? Traditional Logistics Pricing No Longer Works!

Ninja Van ensuring the smooth transfer of goods for inventory replenishment, optimizing supply chains.
Ninja Van ensuring the smooth transfer of goods for inventory replenishment, optimizing supply chains.

As logistics challenges grow, businesses must adapt to modern, cost-efficient solutions.

Traditional pricing models based on truck size and distance often lead to inefficiencies and inflated costs.

Ninja Van’s Ninja Restock service addresses this by offering CBM-based pricing, where businesses only pay for the volume of goods transported, not wasted space.

💡 With Ninja Restock, companies can replenish stock flexibly, adjusting shipment sizes based on demand without incurring extra costs.

The service reduces storage expenses by enabling smaller, more frequent deliveries while ensuring accurate cost forecasting and better inventory control.

Agility in replenishment starts here.

Get in touch today to revolutionize your stock management with Ninja Restock.

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