Getting your products on the shelves of a big-box retailer is an extremely exciting time. It can increase brand awareness dramatically and open up many opportunities. While it’s easy to get swept up in the excitement, it’s important to remember that these retailers will have very specific operating procedures that you may not be used to. Different retailers have different procedures and protocols, too, so Costco deliveries won’t follow the same rules as shipping to Walmart.
There’s a lot to be aware of, and getting things right the first time is crucial. That’s why we’ve put together this guide with tips for getting your Costco logistics right.
Costco is a huge operation with very specific ways of doing things, including strict delivery standards to ensure all the products they sell are ready to go directly onto the shop floor. Failing to adhere to their delivery requirements could result in rejected loads, delays, and financial losses.
Following these tips will help you get your products on Costco’s shelves smoothly and maintain a healthy business relationship.
As a bulk warehouse store, Costco logistics work differently than most big box stores. Rather than unpacking pallets before moving your product to the shop floor, all the goods Costco sells remain on the pallets they were shipped on from their suppliers. Costco refers to this as a “no touch” policy, with pallets requiring no additional handling to go out on the shop floor. This means you need to ship your goods on the correct pallets and stack your products in a specific way.
Here are the details of the pallets you need to use for Costco deliveries:
Costco operates an incredibly strict delivery schedule, and late trucks are often turned away. They operate on an appointment basis and your goods need to arrive on time to ensure shelf space gets filled.
Shipments to Costco need to be planned in advance, sometimes as far ahead as two weeks, and they do not offer same-day appointments. To make an appointment, you will need:
Most Costco distribution centers will stop receiving deliveries in the early afternoon, so you will need to plan your shipment to arrive in the first half of the day to ensure you keep your appointment.
Your shipment will likely be turned away if you miss your delivery appointment. Costco offers a 30-minute grace period after your appointment time, but this isn’t guaranteed and depends on how busy the distribution center is.
If your shipment is turned away, make-up appointments can be made 24 to 48 hours later, but, again, this depends on how busy the center is.
Now that you’re aware of what Costco expects from your shipments, you can use this information to guide your choice of transportation partner. Key things to look for in a freight partner for Costco logistics include the ability to pack and transport your goods securely and punctuality. These two qualities will ensure you maintain a good relationship with Costco and avoid delays or chargebacks.
As with any form of logistics, delays due to peak seasons, holidays, extreme weather, and more can affect Costco shipments. You should be aware of these factors and plan accordingly to ensure goods still arrive during your appointment window.
You will be responsible for any chargebacks due to shortages, rejected shipments, or missed appointments, regardless of the carrier used. This means you need to be sure you can trust the carrier you choose to work with.
Costco’s logistics guidelines are extremely specific, with little room for error. This can be overwhelming for any business, so partnering with logistics professionals like DTS can take a huge weight off your shoulders.
At DTS, our expertise can help you get your products shipped to Costco and other big box retailers efficiently. Contact us to learn how we can help with Costco logistics.
Whether you're a company looking to improve one facet of your supply chain, your entire supply chain, or simply looking for a transportation and logistics consultation, we can help.
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