This guide is for consumer packaged goods (CPG) brands that sell dry food, shelf-stable beverages or beauty products and are choosing a 3PL. You will get a plain list of what these products need in a warehouse, and what to ask before you sign.

What “CPG fulfillment” means

CPG fulfillment is storing and shipping packaged products that people buy again and again. Think of shelf-stable snacks, sauces, drink mixes, canned or bottled beverages, and personal care items. Orders come from several places at once: your online store, marketplaces, and retail or wholesale buyers.

That mix is what makes CPG different from general merchandise. The same stock often fills a single parcel for a shopper and a full pallet for a retailer. Many items also have a lot number and an expiration date, so the warehouse has to track more than a SKU count.

Dry and ambient only: what fits

A 3PL for ecommerce works best with products that store at normal room conditions. At our Vernon, CA warehouse, ecommerce fulfillment is for dry and ambient products. That covers the products below.

• Shelf-stable packaged food: snacks, pantry items, sauces, seasonings, baking mixes.
• Shelf-stable beverages and drink mixes in cans, bottles, pouches or sachets.
• Beauty and personal care in sealed packaging.

If your product needs a temperature-controlled chain, a general ecommerce 3PL is not the right fit. Be honest about this when you ask for quotes. It saves everyone time.

Lot and expiration tracking

A lot (or batch) number ties a group of units to one production run. If a problem is found with a run, a lot record lets you find where those units went. An expiration or best-by date tells the warehouse which stock must leave first.

Ask any 3PL how it records these at the point of receiving, because that is where it starts. Here is what good looks like:

• The lot number and date are captured when each pallet or case is received, not later.
• Stock with different lots or dates is kept in separate locations, not mixed in one bin.
• Every order records which lot shipped, so you can trace it forward.
• You can see lots and dates in your inventory reports without asking for a special export.

Lot codes are often printed in barcodes that follow the GS1 standard. If you sell to retailers, they may ask for lot and date data on cartons or pallets. Our post on retail EDI compliance, ASNs and GS1-128 labels explains how those labels work.

FEFO vs FIFO: which one to use

FIFO breaks down when a newer shipment has a shorter date than an older one. That can happen when two production runs have different dates. FEFO fixes it by picking on the date, not the arrival day.

Many retailers set a minimum remaining shelf life when they receive product. If your stock is picked by arrival day, an order could go out with less shelf life than the buyer accepts. Ask your 3PL whether it can pick by date for retail orders and by date for parcels.

Case-pack, inner-pack and each

CPG products move in layers: the single unit (each), the inner pack, the master case and the pallet. The warehouse needs to know how they relate. For example: 1 case holds 12 units, and 1 pallet holds a set number of cases.

• Send a clear item list with units per case and cases per pallet.
• Barcode every layer you want to sell, or tell the 3PL how to label them.
• Decide if parcel orders can be picked from broken cases and if retail orders must ship full cases.
• Keep case labels readable and the same on every shipment.

Good case-pack data makes receiving faster and cuts picking mistakes. Poor data is one of the most common causes of inventory counts that do not match.

Packaging, kitting and promo packs

CPG brands often sell variety packs, sampler boxes and seasonal sets. A 3PL can assemble them from your base SKUs, which is called kitting and labeling. Plan the kit’s own SKU, its barcode and how its lots will be recorded when units from different lots go into one box.

For glass, cans and liquids, tell the warehouse how each product should be protected. A few details help: the case orientation, the stacking limit, and any item that must stay upright.

Beauty products: extra checks

Some beauty items, such as aerosols or items with alcohol, can be classed as regulated for shipping by carriers. Check your product’s safety data sheet and the carrier’s rules before you send stock. Tell your 3PL about any product like this before it arrives so it can be set up correctly.

Multichannel orders from one pool of stock

Most CPG brands sell parcel orders and larger wholesale orders from the same inventory. A good setup shows one stock count across every channel. It avoids the problem of selling the same unit twice.

The ecommerce fulfillment service covers the parcel side. When retail buyers send routing guides and want ASNs, see retail and B2B EDI fulfillment. Pallets waiting for orders sit in pallet storage and warehousing.

Returns and damaged stock

Food and beauty returns need rules. A returned sealed item may be fine to restock. An opened or damaged one usually is not. Set the rules with your 3PL before launch: what is inspected, what is restocked, what is held and what is destroyed. Our returns processing page explains the general flow.

Why location matters

If your goods arrive by ocean container, a 3PL near the ports saves transit time and handling. Our Vernon, CA warehouse is about 20 miles from the Ports of Los Angeles and Long Beach. See our Los Angeles 3PL page for more on that area.

Questions to ask a CPG 3PL before you sign

• Do you record lot numbers and expiration dates at receiving?
• Can you pick FEFO, and can I see the rule in writing?
• How do you handle a lot hold or a stock removal if I need one?
• What are the receiving requirements for case labels and pallet labels?
• Can you build kits and promo packs from my SKUs?
• How do you treat returns and damaged units?
• Which products do you not accept?

FAQs

What is CPG fulfillment?

It is the storage, picking, packing and shipping of consumer packaged goods for online and retail orders, usually with lot and date tracking.

What is the difference between FEFO and FIFO?

FIFO ships the oldest arrival first. FEFO ships the stock with the earliest expiration date first. FEFO is the safer choice for dated products.

Can a 3PL ship frozen or refrigerated food?

Not every 3PL can. Our ecommerce fulfillment is for dry and ambient products only.

Do I need lot tracking for shelf-stable products?

If your product carries a lot code or a best-by date, tracking it is good practice. It also helps when a retailer asks for lot data.

Ready to talk through your products? See our fulfillment customers page or contact our team.