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one example of an out-of-the-ordinary delivery requirement that required clear advance communication. One of his company’s customers, a national consumer electronics chain, had hired people to set up merchandising displays for a new product so it would be ready for sale on the same day at all of the retailer’s stores. “They were going to have people ready and waiting to set that up on a specific day, so it was critical that we get to the local stores on time,” he recalls.

There’s universal agreement that the more information about the new product the motor carrier has in advance, the greater the likelihood that deliveries will go smoothly. Whether a product is brand-new to the market or only incrementally different from its predecessors, the carrier and 3PL need to know all the details, including how it differs from products they’ve handled for the shipper in the past, Moses says. For example, new products often have different packaging shapes and sizes from items the carrier has previously transported, which affects carton, case, and pallet size and weight as well as how much product can fit in a truck.

“We need to properly document the new SKU’s [stock-keeping unit] characteristics so when orders come along, we can build that load accurately,” he explains.

One often-overlooked aspect of new products is the commodity’s value. If a new product has a higher value than is typical of the shipper’s products, it’s important to convey that to carriers so they can determine whether their normal liability will cover the shipment, Frederick says.

3Work with your providers to antic- ipate the new product’s impact on operations and costs. Even small
changes in things like routing, timing,
volumes, and packaging can have a big
impact on efficiency and costs. Sharing all
of the product and shipment details with
the carrier and 3PL allows them to advise
the shipper on the likely impact as well as
on mitigation strategies. If a new version of
a product requires an increase in packaging
size, for example, it might mean that fewer
items can be loaded in a truck, requiring
overnight,” advises Andy Moses,
senior vice president, global prod-
ucts, for Penske Logistics. This is
particularly important in times of
tight capacity, he notes.

2Clearly communicate require- ments and expectations. Nobody can meet expectations if they don’t know what they are. Carriers and 3PLs need to know exactly what the shipper requires in terms of delivery deadlines, locations, and procedures as well as service levels, responsibilities, and pricing. All of that is subject to discussion with all parties, of course; service providers will want to verify that they can meet those requirements before they sign on the dotted line.

In many rollouts, there will be
new suppliers, new origin points,
new customers, and new geogra-
phies, all of which affect outbound
routing and will require careful
advance planning by the carrier
and 3PL, Monkmeyer points out.

When new suppliers are involved, they should be included in discussions about shipping plans with the carrier and/or 3PL, he adds.

The experts we consulted recommend that shippers, carriers, 3PLs, and perhaps suppliers schedule regular calls to share progress reports and updates. Because product launches are anything but routine, the experts also suggest that the customer and carrier communicate more often than usual and establish a procedure for addressing problems well before the rollout.