Food Entrepreneur Forum

shipping estimates

New to the forum but filled with good and useful comments. As with others am also doing a food start-up. For budgetary (bus plan) purposes trying to get some benchmarks around shipping of product from plant(s) to retailer warehouses. We will likely be using 3 plants to cover the US, and will be using a national broker who covers virtually all classes of trade. Understand shipping is retailer's to bear, but also know we must float the receivable until paid. Is there any way to estimate shipping cost, preferably on a per oz basis, so we can extrapolate to cases and pallets.

 

Note: we do have a career Frito-Lay operations guy helping us, but his input is that DSD and warehouse chipping costs are within a couple of points of each other at around 23-25% of cost.  Assume “cost: is cost of total BOM versus just materials.

 

Any comments anyone?

 

Chris

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