Zipline Logistics surveyed retail buyers at major grocers to gain a better understanding of the pressures they face and how CPG vendors can stand out in a competitive environment.

1. R E T A I L B U Y E R
I N S I G H T S
Survey shows logistics performance is essential
to retail buyer relationships and success
S U R V E Y A N D R E P O R T P R E P A R E D B Y
April 2019

2. Competition for grocery and retail shelf space is at an all-time high as new consumer
products hit the market at record speed. Since 2013, food and beverage start-ups have
raised $9.5 billion across 2,100 deals globally, according to CB Insights, pushing the
pace of food innovation to an all-time high.
E-commerce has also greatly impacted the market, further increasing competition and
the need to have product on the shelf. In fact, shoppers are experiencing out of stocks
33% of the time, turning to online alternatives to buy the products they need.
As a result, retailers have increased the stringency of vendor compliance programs,
building in fees for under performance. These programs exist to encourage on-time
delivery of goods to prevent against out of stocks and loss of revenue to online
competitors.
INTRODUCTION:
Hoping to gain a better understanding of the pressures
retailers face, and how vendors can stand out in a
competitive environment, Zipline Logistics surveyed retail
buyers directly.

3. Communication and on-time delivery both emerged as essential themes within
survey responses. Retail buyers stated that they preferred working with vendors who
communicated clear status updates and delivered product on time.
100% of respondents said that a vendor's ability to deliver product on-time impacted
their willingness to work with them, and 73.33% of respondents said they have ended
vendor relationships over delivery issues. Retailers want to work with reliable brands.
Logistics has never been more important for consumer product manufacturers. In an
increasingly competitive environment - where 54.33% of buyers oversee 6 or more
competing brands in one category - successful transportation is a clear advantage
and differentiator. If a brand under performs when it comes to logistics, they can
easily be replaced by another hot product.
73.33% of respondents reported working directly with their logistics colleagues at
least once per week, with 40% of retail buyers doing so every day. Respondents called
out that, "LOGISTICS IS EXTREMELY ESSENTIAL."
FINDINGS:

4. Buyers also reported that they are willing to negotiate minimum order quantities
(MOQs). The majority prefer for this conversation to happen at the start of a vendor
relationship, but many shared that they are "Always willing" or "Very willing" to
discuss MOQs and that this conversation can happen "Whenever minimums, sales,
and shelf life do not work out."
Retailers want their suppliers to deliver product on time, in full, so if renegotiating
MOQs helps achieve this goal and increase profitability, they are interested in
exploring the solution.
Specific to communication, buyers called out that proactive, thorough, and timely
updates are essential. They like having a trustworthy point of contact that can provide
status updates on orders and help solve issues if they arise.
FINDINGS:
CONTINUED

5. I N S I G H T S G A I N E D F R O M R E T A I L
B U Y E R S A T B I G - B O X S T O R E S :
A N D M O R E

6. OF RETAIL BUYERS
SAID YES WHEN ASKED,
"DOES A VENDOR’S ABILITY TO
DELIVER PRODUCT ON-TIME
IMPACT YOUR WILLINGNESS TO
WORK WITH THEM?"
100%

7. OF RETAIL BUYERS
SAID YES WHEN ASKED,
"HAVE YOU EVER ENDED A
VENDOR RELATIONSHIP OVER
DELIVERY ISSUES?"
73.33%

8. H O W C L O S E L Y D O Y O U
W O R K W I T H Y O U R
L O G I S T I C S
C O L L E A G U E S ?
Every
dayA
few
tim
es
a
w
eekAboutonce
a
w
eek
A
few
tim
es
a
m
onth
O
nce
a
m
onth
Less
than
once
a
m
onth
N
ever
40
30
20
10
0

9. H O W W I L L I N G A R E Y O U T O N E G O T I A T E
O R D E R M I N I M U M S W I T H V E N D O R S ?
W H E N S H O U L D T H I S D I S C U S S I O N O C C U R ?
"Somewhat. this occurs early in the discussion."
"When introducing a new product or for upcoming promos."
"Discussion must occur up front."
"Yes, if there are cost savings are associated with this and if it will
allow the supplier to make more timely deliveries."
"Very willing. It would occur at the beginning of the negotiations."
"Always."
"That's part of every introductory meeting."

10. H O W W I L L I N G A R E Y O U T O N E G O T I A T E
O R D E R M I N I M U M S W I T H V E N D O R S ?
W H E N S H O U L D T H I S D I S C U S S I O N O C C U R ?
"Very willing, it should occur at set-up, but open to any time that
there are benefits to be made."
"When minimums, sales and shelf life do not work out."
"Willing, but this should be done before bringing in a vendor."
"Very willing. At time of initial offering and at category review."
"We are willing to renegotiate minimums based on customer needs
to benefit both our customers and our vendors."
"It depends on the commodity, and the discussions occur prior to
agreeing to do business."
C O N T I N U E D

11. H O W M A N Y D I R E C T L Y
C O M P E T I N G B R A N D S
A R E Y O U S E L E C T I N G
F R O M I N A G I V E N
C A T E G O R Y ?
1-5 6-10 11-20 Other
40
30
20
10
0

12. T H I N K O F O N E O F Y O U R F A V O R I T E
V E N D O R S . W H A T S E T S T H E M A P A R T F R O M A
P U R C H A S I N G A N D C U S T O M E R S E R V I C E
S T A N D P O I N T ?
"Response time."
"They are always ready to help. They communicate their needs in
advance. They support us when needed."
"Communication and reliability"
"Over-communication on order status from receipt of PO to delivery."
"Good communication and transparency"
"Willing to think out of the box and find solutions. On time delivery.
Value, Timing, Right item."

13. T H I N K O F O N E O F Y O U R F A V O R I T E
V E N D O R S . W H A T S E T S T H E M A P A R T F R O M A
P U R C H A S I N G A N D C U S T O M E R S E R V I C E
S T A N D P O I N T ?
"Great cost. great service at rep/broker and customer service point
of contact."
"In Stock conditions, Accurate picking."
"On time delivery, proactive information about late and cut items."
"Communication."
"Communication- it's always good to know about something before
it becomes an issue and communicating potential problems is key."
"On-time deliveries, thorough and punctual communication, no
rejections, flexibility with emergency orders."
C O N T I N U E D

14. R E T A I L A N D G R O C E R Y T R A N S P O R T A T I O N I S
C O M P L I C A T E D - Z I P L I N E L O G I S T I C S C A N H E L P .
With competition for shelf-space rising and retail vendor guidelines tightening, successful
shippers are those that take control of their logistics and find partners that can execute against
strict service requirements.
Zipline Logistics is comprised of retail logistics experts who can help shippers of consumer
products ace transportation into customer stores or distribution centers. Our retail-trained
operations teams and service-first culture can help you hit on-time delivery standards and
establish optimal levels of communication with buyers.
Additionally, our carrier network was built specifically to meet the needs of consumer product
brands. That means access to carriers that are FSMA compliant and drivers that have familiarity
with retail facilities and understand the importance of on-time delivery.
www.ziplinelogistics.com | 614.458.1144 | 2300 W. 5th Ave. | Columbus | OH | 43215