Finished Goods Transportation

[Stumpy's]

I was just curious how you are all handling shipping to wholesalers in non-control states. What methods of transportation, certain carriers, load boards, private vehicle, etc? I currently work in Transportation Engineering at a large bev-alc producer and am in the process of opening a distillery on our family farm. As I am getting closer to construction I find that my view on some topics is skewed to the side of big business because of prior experience. Hoping to get some honest and relevant opinions on this very important (and expensive) topic.

[TetonDistillery]

http://www.uship.com/

We put our pallets out for bidding to truckers that have less than a full load. We get great rates that way.

[kkoch]

For finished goods (e.g. alcohol), it is customary for your wholesaler to secure their own shipping/trucking firm (and pay). You would be responsible for pick/pack, loading it on a pallet, and wrapping. Only time I've seen it different is when the manufacturer uses a consolidator and then they pay to move the product to this interim spot.

[Stumpy's]

Thank you for the replies. Its interesting to hear two different stories. Here (at our LARGE bev-alc company), the brewer assumes all transportation costs. I figured most people did something along the lines of what teton is doing.

Kkoch, did your wholesalers give you an option to ship or bake their transport cost into their cut? Don't feel obligated to answer if you feel it is too personal...i was just curious.

[TetonDistillery]

Our non-control states do pay for the shipping also. However we typically help them get a good quote since our distillery is off the beaten track of the most common long haul truck shipping routes.

[kkoch]

Thank you for the replies. Its interesting to hear two different stories. Here (at our LARGE bev-alc company), the brewer assumes all transportation costs. I figured most people did something along the lines of what teton is doing.

Kkoch, did your wholesalers give you an option to ship or bake their transport cost into their cut? Don't feel obligated to answer if you feel it is too personal...i was just curious.

The wholesales made their own arrangements with shippers/consolidators and just worked with the manufacturer/warehouse to coordinate pick/pack/load dates and times. Other than "samples" the wholesalers took possession (and responsibility for all costs) at the dock and owed for freight and product. If a wholesaler is trying to get you to pick up freight, they are trying to get deeper discounts from you than what I've seen as "normal".