COLLECT VS. PREPAID DELIVERY

What should I choose?

First of all, what’s the difference?

Prepaid

Commonly referred to as delivered pricing, pricing starts with a landed cost for your manufactured goods, then adds the cost to move the merchandise through a 3PL provider like RJW to a retailer DC for the final cost. Once a final cost is determined, the supplier can add margin to determine factory pricing to the retailer. 

Collect

Commonly referred to as customer pick-up, the supplier’s factory price with the retailer includes transportation costs to be assumed by the retailer. In this model, the supplier is responsible for incorporating landed cost for their goods, plus warehouse costs (managed in-house or outsourced), plus margin to determine factory pricing to the retailer.

Optimal Delivery Performance

3PLs like RJW are held to a much higher on-time standard than the retailer’s collect program. A prepaid program must meet or exceed 98% on-time delivery, while the collect program is held to a different delivery standard by the retailer. This means that – as long as you have a reliable logistics partner that meets this requirement – your products stand a much stronger chance of being consistently on-shelf which of course leads to higher sales.

  RJW averages 98%+ On-Time and 99%+ In-Full

Lessen Your Lead Times

Prepaid shipping offers much shorter lead times and greater flexibility because you control your production and inventories. With shorter lead times to the shelf, your products are more frequently in-stock and available to shoppers both in-store and online, leading to increased sales and more opportunities to convert new consumers.

  RJW averages 7-10 days lead time

Clear Supply Chain Visibility & Control

With prepaid shipping through a 3PL, especially an asset-owned 3PL like RJW, suppliers have visibility into their supply chain operations and control over what’s happening. This transparency affords you valuable insights to make data-driven decisions that inform and move the business forward.

  RJW owns and controls its own assets, putting you in the driver’s seat

Effortless, Streamlined Compliance

At RJW, we offer our suppliers access to many services under one roof to ensure you’re compliant with the strict and differing requirements of many retailers. Value-Added Services like packaging, re-packaging, labeling, bar coding, point-of-sale displays, and much more allow you to move your products through the middle mile efficiently and with as few outside vendors as possible – all with the streamlined supply chain visibility you need.

  RJW has an expansive suite of Value-Added Services to keep you compliant with strict retailer requirements

Know Your Costs

Hidden fees from 3PL providers can drastically change your budget and make it hard to plan. RJW uses a straightforward, transparent pricing model that includes all fuel surcharges and administrative fees so you can more easily determine your freight factor and make better bottom line business decisions.

  RJW’s transparent pricing model keeps things simple so you know what to expect

Multi-Day Review

How do they compare?

Determining your freight factor can help you decide which is the best option for you. Need Help?