Ship or SinkAmerican Cheese Society

2014 Conference

SMUSHED

CRACKED

SPILLED

CRUSHED

SCARY?

SMASHED

BROKEN

SAD

Who Are We?

Robert Aguilera, Fromagex

Amanda Cascadden Morra, Periship

Jerry Van Sickle, FedEx

Moderator: John Antonelli, Antonelli’s Cheese Shop

FedEx Express: When it has to get there by a certain time.

• Delivery of documents, packages and palletized freight

• Reach every U.S. business and residential address

• We have a service for when you need it:

– Same-day and overnight options for urgent deliveries

– Two-day and three-day services when you have time to plan

• Our portfolio of services offers you flexibility to fit your budget, control to meet your schedule and peace of mind with a money-back guarantee*

* For details on the FedEx Money-Back Guarantee, see Our Services at fedex.com.

Overview of Perishable Shipping Industry

First Primary Shipping OptionComingled Pallets (Business to Business):

More Comingled Pallets

Second Primary Shipping Option

Insulated boxes with cold packs (usually water based) via Common Carriers (Business to Consumer):

What does the industry look like? Why ship my cheese?

E-commerce is everywhere. E-commerce is becoming more and more prevalent - E-commerce sales in 2012 ($225.5 billion) accounted for 5.2 percent of total sales, and jumped to 17% in 2013.

Unprocessed cheese has increased by 4% in sales in 2013, and so there is a strong rise in demand for unprocessed, small batch, artisanal cheese.

With the rise of the sustainability trend, coupled with the ease and accessibility created by e-commerce, why shouldn’t your cheese be available at the click of a mouse?

What to Ask Before Shipping?

Amanda

Don’t put that cheese in a box yet! Ask yourself:

Do I understand my distribution environment?

What audience am I looking to capture?

How will I package my product?

How will I monitor my shipments?

How do I factor in the emotional value of my product to my customers?

Do I have an e-commerce pricing strategy?

Robert

Prior to shipping, ask yourself:

Where and to whom am I selling my cheese to?

What are those clients expectations and are they reasonable?

What is their commitment to my product?

Cost vs. Protection Paradigm

How do you make the best shipping decisions for your business.

Are there effective ways to reduce costs?

Increase protection?

How to Keep Products RefrigeratedDuring Transit – Gel Coolants

How to Keep Products RefrigeratedDuring Transit

• Freeze the coolants according to the manufacturer’s guidelines.• Precool the insulated container, if possible.• If your shipment contains liquid or perishable products that could contain liquids, double-bag the products using minimum 2-mil watertight plastic bags and line the inside of the foam container with a minimum 2-mil plastic liner and absorbent material.• Arrange products inside the insulated container, allowing space for coolants.• Place a sufficient number of coolants on top of and around the product.• Fill all void space with dunnage such as loosefill peanuts to prevent product movement.• Close the liner bag securely.• Place the insulated container inside a corrugated outer box.• Close and securely seal the corrugated box with pressure-sensitive plastic tape. Apply the tape over all box flaps and seams.• Gel coolants are preferable to wet ice.

Cost versus Protection

Types of Packaging Materials Packaging

TypeCost Effective

EnvironmentallyFriendly

Durable

Mylar

Polystyrene

CorrugatedCardboard

Volcanic Ash

Dry Ice

Gel Paks

AirLiners

Cost vs. Protection

• Share the ideal of how you the maker would like the cheese to be enjoyed.

• Give examples of how the product may arrive and levels of acceptability with recommendations upon arrival

• Continue to improve packaging methods on site for box shipping. – Timing of packaging

– Products kept as cold as possible during packaging

• Look into shipping with other perishable items to further locations.

How Do We Test Success?

New Packaging Lab

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Grand Opening on May 14, 2014.

State of the art lab that supports FedEx

Express, Ground, and Freight package

testing.

Facility Highlights:

• 31,792 square feet

• Supports freight testing for both FXE

and FXF up to 6,000 lbs

• 5-ton gantry crane

• Pit mounted vibration table

• Forklift course

• Humidity & temperature control

• Temperature chamber

• Emergency generator

• PHONE: 1-800-633-7019• EMAIL: PKGFIELD@CORP.DS.FEDEX.COM

Testing for Success

•What type of cheese am I shipping – does it require special handling

•Min/Max size of order or shipment

What am I shipping?

•What type of service can I use if I am shipping regionally or nationally?

Where am I shipping? •Environmentally

friendly materials•Durable boxes•Proper coolant products and amounts

What am I shipping in?

•Time•Temperature•Durability•Monitoring•Recipient expectations

How am I testing?

Testing Method

Paper Packaging Test

-Analyze current method vs. new method

-Weigh, take photos of products unwrapped.

-Check temperature in all cheeses prior to shipping.

-Send cheese on the same day, at same speed.

-Upon reception, take temperature and photos of cheese, wrapped and unwrapped.

-Evaluate cheese using spider graphs.

Testing Method

How to work with packaging and the transit system to positively

impact your product.

Understand Shipping Risk

Issues for Insulated boxes

A closed box that will trap moisture.

Boxes travel in ambient temperatures and varying humidity.

Support from carriers can be little to none due to lost time in shipping, lost boxes, mishandling.

Can be expensive due to shipping costs associated with the dimensions of the box and not just the weight.

Calculating DIM weight• Multiply your package’s length by width by height in inches, and

divide by 166 (for U.S. and Puerto Rico shipments), or by 139 (for international shipments):

• U.S. shipments: (L x W x H ) ÷ 166

• International shipments: (L x W x H) ÷ 139

• Round dimensions of one-half inch or greater to the next whole number; round dimensions less than one-half inch down.

• Round the final calculation up to the next whole pound.

• Compare your package’s dimensional weight to its actual weight. Price your shipment based on the greater of the two values.

• A suite of options that gives your U.S. residential recipients the ability to customize their home delivery experience.

• It’s free for residential recipients to sign up. Once enrolled, they can access the following delivery and visibility options.1

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Schedule Your Delivery ($$)Request a delivery date and/or time that works for you.

Deliver to Another Address ($$)Request to have packages delivered elsewhere.

Hold at FedEx LocationRequest to have your package held at a nearby FedEx location and pick it up on your schedule.

Sign for a PackageProvide your signature online for delivery authorization. (Only for Indirect Signature packages)

Provide Delivery InstructionsGive specific instructions for all deliveries to your home address.

Request Vacation HoldChoose a range of dates to suspend all deliveries to your home address. (Up to 14 days)

What is FedEx Delivery Manager℠.

$$: Indicates it is a fee option. Fee options are paid by the recipients via credit card at the time of the requests.

FedEx Delivery Manager℠ (FDM) has had an outstanding performance since its launch on April 2013

• By the end of June 2014, FDM had over 1.5M enrollees and over 2.6M requests from recipients.

• Most popular option is redirect to hold at a FedEx location.

• The most popular fee options is evening delivery.

Product RequestsPercent of Total

Requests

Redirect to Hold at FedEx location 60.81%

Delivery Instructions 23.72%

Signature Release 7.72%

Vacation Hold 3.96%

Scheduled Delivery - EVENING 1.55%

Reroute Delivery 1.20%

Scheduled Delivery - DATE_CERTAIN 0.67%

Scheduled Delivery - APPOINTMENT 0.38%

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FedEx Delivery Manager℠ can help you lower your costs. When recipients can manage their delivery experience, you can save time and money.

• Decrease “Where is my package?” calls. So you can focus on revenue-generating calls instead.

• Decrease returns or the need for replacements due to missed or late deliveries.

• Give companies and their employees more time to focus on matters that grow your business.

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Customers promoting FDM ex: Sugar Memories

Knowing Internal/External Distribution Environment

Key to success:

Knowing your internal distribution procedures

Understand travel patterns and transit zones

Be aware of changing seasons and weather variability

Manage emotional value of customers

Insider Tips

Insider Tips

• Pack on the day of shipping.

• Pack smaller batches at a time if process in at room temperature and possible high humidity.

• Reusable cold gel packs that come on a roll and or “Sweat Proof” gel packs

• Ship boxes with return slips to minimize the cost of shipping materials, possibly with the cold packs if they are reusable.

Key Points to successful Cheese delivery – Fedex

• Packaging

• Periship

• Delivery Options – get it delivered in the first attempt

• Ship Express

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Insider Tips

• Once you have a method of shipping chosen, test it!

• A closed box traps moisture as the temperature rises.

• A box with holes heats up faster.

The Happiest Cheese

Wishing your cheeses safe and happy travels!

FedEx Discount Program

• Program Discounts

– Up to 26% off select FedEx Express US shipments*

– Up to 20% off select FedEx Express Intl services

– Up to 12% off select FedEx Ground services

– Up to 10% off select FedEx Home Delivery Services

– Sign up for FREE, contact the ACS office at 720-328-2788 to enroll.

• All discounts includes a 5% Automation Kicker

Managed by PartnerShip LLC

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