Net Weight

Net weight is the weight of the merchandise, unpacked, exclusive of any containers. For many companies, the net weight is an important number to track because it can have a direct impact on the cost of goods sold (COGS). By accurately tracking and reporting net weights, logistics professionals can help their organizations save money and optimize inventory levels.

There are two main ways to determine net weight:

  1. by using a scale,
  2. by using volume-based methods.

Scales are the most common and accurate method for determining net weight, but they can be slow and expensive to use for large shipments. For this reason, many companies use volume-based methods to estimate net weight. These methods are not as accurate as scales, but they are much faster and can be used for larger shipments.

There are two main types of net weight:

  1. Gross net weight. It is the total weight of the merchandise, including packaging and containers.
  2. Tare net weight. It is the weight of the merchandise without packaging or containers. In most cases, tare net weight is used to calculate COGS because it provides a more accurate representation of the actual product weight.

Businesses should use whichever method is best suited for their needs. Scales are best for accuracy, while volume-based methods are best for speed and efficiency.

Whatever method is used, it is important to track and report net weights accurately to optimize inventory levels and save money on COGS.

Related Links

Gross Weight Vs. Net Weight in Shipping
What is net weight?
net weight – Wiktionary

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