Understanding CPG: A Deep Dive into Shipping Dynamics

Consumer Packaged Goods: How CPG Shipping Works

Posted on:
Feb 28, 2023

As one of the most shipped items through LTL shipping, consumer packaged goods (CPG) continue to set the standard for freight services offered worldwide. CPG is common to transport, but there are still conditions that need to be met by the client and their LTL providers to ensure a successful pickup and delivery. 

 In this article, we will get to know Consumer Packaged Goods, the types of CPGs available, and the types of packaging you will need if you also plan on transporting CPGs via freight services.  

What is Consumer Packaging? 

To start, let’s get to know CPGs or Consumer Packaged Goods. These are primarily made up of goods that consumers often use and replace. Some examples of CPGs are personal hygiene products, food, beverages, and cosmetics. CPGs often have a limited shelf life since these are goods that we all purchase for immediate use. 

Many CPG brands pop up every year. Companies that supply manufacturers often face intense competition. That is why many brands invest millions – if not billions into their marketing to ensure their products keep selling out. 

How CPG Shipping Works 

CPG shipping is slightly different from other forms of shipping goods. Because CPG items aren’t particularly large, companies can typically pack them inside crates and in bulk. These types of goods are also meant to be consumed almost immediately, so CPGs are usually shipped in massive quantities to meet the consumer’s demands.  

Sometimes, some CPG goods also require special considerations or practices during transportation. This is especially true for specialty goods. Conditions such as the freight container’s temperatures and the care exercised during loading and unloading are carefully considered when transporting specialty goods. 

This is why the freight company you choose to work with must be able to meet all your transportation needs – whatever that may be.  

The 4 Types of CPGs 

Consumer habits, price, and product characteristics affect how products are categorized. There are four types of Consumer-Packaged Goods (CPG):  

Convenience Goods 

Convenience goods are products consumers repeatedly buy without needing to weigh the pros and cons. Think shampoos, milk, sugar, and toothpaste.  

Shopping Goods 

Shopping goods are products bought less frequently than convenience goods. These are products consumers only buy after some research and comparison. Examples of goods under this category are shoes, dresses, cars, jewelry, and perfumes.  

Specialty Goods 

Specialty goods, on the other hand, refer to products that are the only one of their kind in the market. Companies that produce specialty goods often don’t have to convince their consumers that they are better than their competitors. They already know.  

One such example is a Rolls Royce.  

Unsought Goods 

Unsought goods are products we usually buy out of necessity and not necessarily for “pleasure.” Consumers typically purchase unsought goods out of a sense of security. 

Some examples would be flashlights, fire extinguishers, and pepper spray. 

Challenges of CPG Fulfillment 

From the global pandemic of 2020 to the continuing recession of 2023, there are a lot of challenges CPG manufacturers will have to overcome in the coming years.  

Your manufacturing and freight teams may be running optimally. However, if you cannot answer customer queries, smoothen out complaints, or manage your stock, you can put your business at risk of losing profit.  

Here are some of the biggest challenges in CPG fulfillment: 

Inventory Management 

Items that have been out of stock for weeks, inventory shrinkage caused by theft or mismanagement of stock, and items considered “out of date” are all challenges manufacturers and retailers face when it comes to inventory management

Data Collection 

Accurate data collection is essential for managing your stocks and satisfying your customers. You don’t want your shelf empty for too long, as this can turn away loyal customers and deter any potential buyers. 

Overstocking is also an issue, as there is a possibility that your goods will pass their “shelf life” and wind up getting discarded.  

Employee Turnover 

The rate of employee turnover can significantly affect organizations. Yes, even large companies shudder at the thought of mass resignation. A high turnover rate will mean additional hiring costs, training costs, a decline in customer satisfaction, negative effects on staff morale, and more. 

Current CPG Industry Trends 

New year, new CPG trends. As we start 2023, we are noticing some recent CPG trends that manufacturers need to catch up to fast.  

Private Label Brands 

Owning your e-commerce storefront is one of the best ways to increase profits and foster customer relationships. But owning your brand gives you better control over product development, is more attractive to retailers, and has proven to see better margins in profit. 

Focus on Convenient Delivery 

Convenience is one of the best ways to ensure customer satisfaction. Creating a system that streamlines your ordering, fulfillment, and delivery services is a surefire way to foster loyal clients.  

Implementing Omni-Channel Shopping 

Another trend that’s been rising in 2023 is omnichannel shopping. This refers to streamlining your clients’ shopping and purchasing experience across devices and shops. 

For example, Sephora installed tablets in their physical stores so customers could access their saved items and make purchases there.  

Multi-Channel Marketing 

SEO advertising, TV ads, and PR packages are some of the best ways to introduce your products to the masses. But the rise of influencer marketing has also been making waves in the marketing industry. 

Strategically working with relevant influencers in your niche is a powerful way to boost your sales and get more eyes to look at your brand. 

Tips & Tricks for CPG Companies Shipping LTL Freight 

Damages, delays, and delivery errors during LTL freight can cost a hefty price. For many small businesses, this is not something they can afford to have happen. 

Fortunately, there are ways you can lower the risk of damage and wrong deliveries. Here are a few tips: 

  • Get the measurements as accurately as possible, and don’t forget to round up to at least one inch. This helps LTL carriers calculate the proper rates for your cargo. 
  • Preparing your documents ahead of time prevents delays and hefty late fees or fines. 
  • Make labels legible and visible, so your LTL carriers know which items need more care during loading, unloading, and transportation. This also sets your items apart from other goods being delivered in the freight. 
  • Wasted pallet space is wasted money and an invitation for accidents. As much as possible, you will want to fill your pallets edge to edge so your goods stay in place during transit. 

How GoShip Helps CPG Companies with Fulfillment 

Managing a business and keeping up with consumer demands can be a handful. Adding order fulfillment to the mix can quickly turn into a nightmare. Outsourcing your fulfillments to GoShip.com is a strategic move to improving your sales, customer satisfaction, and delivery times. Plus, you can now pour most of your focus into scaling your business and reaching new goals. 

Get your free LTL quote using GoShip.com’s calculator now! 

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