Retail-Specialized Processes for CPG Brands
For the last 16 years, we have worked exclusively with consumer-packaged goods (CPG) brands to strategically optimize their retail supply chains and eliminate out-of-stocks.
Zipline processes were built specifically to resolve the most critical logistics challenges faced by CPG brands shipping into retail. We tailor strategies to reduce overall transportation spend, optimize retail performance, and beat out the competition for shelf space. 97% of our orders end up on retailer’s shelves such as Walmart, Costco, Bath & Body Works, Whole Foods, and Best Buy.
Our national network of 38,000+ carriers are uniquely qualified to haul retail goods specifically, minimizing delays, fees, and headaches.
Most freight we manage is time sensitive. With this comes a critical need for our team members to be adaptable, offer creative solutions, and proactively communicate. Account teams are trained to work as an extension of your network and are evaluated and compensated based on their ability to reach customer performance metrics.
Consider the direct hit your gross margin takes when your product is out-of-stock and replaced with a competing brand. Brands can grow their gross margin just by increasing their on-time delivery performance to Zipline’s 95% average.
How does on-time delivery impact gross profit?*
|Annual Revenue||On-Time Delivery Performance||Gross Profit|
*This example assumes your product has a 45% gross margin.
The difference between hitting retail suppliers’ average performance (77%) and hitting the performance retail buyers expect (95% or better) is $810,000 in margin. CPG companies usually budget 7-9% of their gross profit toward transportation spend. For a $10MM company, that’s between $700,000-and $900,000. If they master on-time delivery, that margin savings completely or nearly covers that cost altogether.
A true logistics partner will help you spend right, not more.