10: Operations
Freight for CPG Brands
Shipping and logistics can make or break your CPG brand. Get it right, and your products will reach consumers fresh and on time. Get it wrong, and you’re dealing with delays, damage, and unhappy customers. Let’s break down what you need to know about freight options and strategies for your CPG products.
Common Carriers
USPS, FedEx, and UPS: These guys are the go-to for small parcel shipments. They’re reliable, fast, and can handle most of your shipping needs, especially for direct-to-consumer (DTC) sales.
- USPS: Best for lightweight packages and offers options like First-Class Mail and Priority Mail. It’s often the cheapest but not always the fastest.
- FedEx: Offers a range of services from ground to express. Known for speed and robust tracking.
- UPS: Similar to FedEx, with multiple shipping options and reliable delivery times. Great for both small and large packages.
These carriers are ideal for sending products directly to consumers or small retailers, ensuring that your items arrive in perfect condition.
Pricing varies based on shipping volume, so you should setup a business account with UPS and Fedex to start getting some of those discounts. If you’re just starting I recommend using a shipping software to leverage the shipping discounts they have by sending millions of packages.
Shipping Software
Print shipping labels using a shipping software will make your life easier + leverage their negotiated discounts. Some of the most common ones are:
Shopify – Easiest to use as it’s built into your e-commerce platform
Shipstation – Robust features but paid software
Pirate Ship – Free software
Veeqo – Free software (owned by Amazon)
LTL (Less-Than-Truckload) Shipments
LTL Shipping: When your shipment isn’t big enough to fill an entire truck, LTL is the way to go. It’s cost-effective and flexible.
- Benefits: By consolidating your shipments with others, you maximize truck space usage, leading to significant cost savings and reduced transportation resource consumption.
- Considerations: Longer transit times and more handling, which can increase the risk of damage. Packaging needs to be robust to handle the extra handling.
Lift Gates: Lift gates are crucial for LTL shipments, especially when the delivery location lacks a loading dock.
- Benefits: Simplify loading and unloading heavy items. Reduce labor costs and improve safety.
- Considerations: Additional costs but worth it for heavy or bulky shipments. Ensure that your carrier offers lift gate services if needed.
Pallet Configurations for LTL: Proper pallet configurations can maximize space utilization and ensure the safe delivery of products.
- Standard Pallets: Typically 40 x 48 inches, they can hold up to 4,600 pounds. Widely used and accepted.
Stacking and Wrapping: Proper stacking and securing with shrink wrap or stretch wrap ensures your products stay put during transit.
Truckload Shipments
Full Truckload (FTL): When you’ve got enough products to fill an entire truck, FTL is your best bet.
- Benefits: Faster transit times since the truck goes directly from origin to destination. Less handling means lower risk of damage.
- Considerations: – **TL shipping can be less flexible and more costly if you don’t fill the truck, but spot loads offer flexibility. Vet carriers carefully to reduce fraud and ensure reliability.
Refrigeration and Freezing
Temperature-Controlled Freight: Shipping refrigerated or frozen products presents unique challenges and considerations, especially for food and beverage brands. Ensuring the products arrive in optimal condition requires meticulous planning and execution. Here are some key considerations and watch outs when using common carriers or LTL shipments for refrigerated or frozen goods:
Refrigerated Trucks: Keep temperatures between 33°F and 39°F. Perfect for fresh produce and dairy.
Freezer Trucks: Keep things below 32°F for frozen foods.
Temperature Control and Stability
Consistent Temperature Maintenance: Ensure that the carriers you choose can maintain a consistent temperature throughout the journey. Fluctuations can compromise product quality and safety.
Temperature Monitoring: Use temperature loggers or sensors to track the temperature during transit. This helps in verifying that the products were kept at the required temperature.
Packaging
Insulated Packaging: Use high-quality insulated containers to protect products from external temperature changes. Materials like Styrofoam, thermal bubble wraps, and gel packs can help maintain the required temperature.
Dry Ice and Gel Packs: Dry ice is commonly used for frozen goods, but it needs to be handled carefully due to its hazardous nature. Gel packs are effective for refrigerated products.
Compliance and Regulations
Food Safety Regulations: Ensure compliance with food safety regulations such as the Food Safety Modernization Act (FSMA) in the U.S., which sets standards for the safe transportation of food.
Carrier Compliance: Verify that the carrier adheres to these regulations and has the necessary certifications for transporting perishable goods.
Cost Implications
Higher Costs: Shipping refrigerated and frozen products is generally more expensive due to specialized equipment and handling. Budget accordingly.
Insurance: Consider purchasing insurance to cover the higher risk associated with transporting perishable goods.
Contingency Planning
Backup Plans: Have contingency plans in place for delays, temperature excursions, and other unforeseen issues. This might include having backup carriers or additional insulated packaging ready.
Freight logistics aren’t just about getting your products from point A to point B. They’re about doing it efficiently, cost-effectively, and in a way that keeps your products safe and your customers happy. Whether you’re shipping with USPS, FedEx, UPS, using LTL or FTL, or dealing with refrigerated trucks, understanding your options and choosing the right strategy is key to your success.
Do you want to minimize costly logistical challenges?
(Sponsor)
Resilient Freight works with emerging food and beverage brands to make sure your shipments move smoothly between your ingredient suppliers, manufacturer, warehouse, and retailers.
They even specialize in working with KeHE and UNFI to avoid shipping related chargebacks. So reach out when you need to send your next LTL or Truckload shipment to avoid all the headaches.