KeHE’s Compliance Program

In this article, learn about:  

• Transportation and scheduling at KeHE 

• Labeling and shipping document requirements 

• Packaging and shipping requirements 

• KeHE’s compliance program and fees 

 ——————————————————————————————————————————Just like many other large retailers and distributors, KeHE has developed a compliance program to keep the logistics of their supply chain coherent and consistent. This program is outlined in their KeHE Distributors Inbound Routing Guide & Product Handling Requirements document, often referred to just as the Inbound Routing Guide.  

It can be helpful to think of KeHE Compliance as falling under a few categories: 

• Transportation and Scheduling 

• Labelling and Shipping Documents 

• Packaging and Shipping Requirements 

• Performance Fees and Charges 

Transportation and Scheduling 

Getting the timing and logistics right for transportation and scheduling is key to maintaining a good compliance score and relationship with a distributor like KeHE. That being said, suppliers are still given the opportunity to try to maximize their transportation methods to best suit their needs. 

KeHE’s Transportation Options 

KeHE breaks down their shipping and transportation options into two main categories:  

• Supplier Delivered or Prepaid Shipping 

• KeHE Pickup (FOB Origin, Subject to Case Count)  or Collect Shipping  

These are the rough KeHE equivalent of what are often referred to as Collect and Prepaid shipping in other parts of the retail industry.  

To inquire about KeHE Pickup, reach out to freightrequests@kehe.com for more information about Collect shipping and KeHE’s proven carriers.  

If suppliers opt to use Supplier Delivered or Prepaid shipping, KeHE provides a list of preferred carriers: 

KeHE lists some benefits of using their preferred carriers: 

• No trapped freight 

• Increased inbound visibility 

• Familiarity with KeHE receiving and appointment scheduling 

• Fewer OSDs (overages, shortages, and damages) 

How to Schedule a Delivery Appointment with KeHE 

Every truckload delivered to KeHE requires an appointment scheduled through C3 Online Scheduling.  

At KeHE, scheduling starts at the Distribution Center (DC). Suppliers must contact receiving DCs to obtain the User ID for that particular DC before scheduling a shipment. Each KeHE DC has a separate User ID that is required for each shipment.  

C3 also requires suppliers to have a PO Number, Load Type, and delivery Date & Time. These appointment requests must be made at least 3 days before the “Ship To Arrive” date. After an appointment request is made, the supplier will receive a reservation number. Each request must be confirmed by KeHE via email before the appointment can be approved.   

Suppliers will be charged a fee if they make a change to the scheduled appointment within 3 days of the appointment.  

An appointment is not required for parcel shipments (i.e., shipments of a few cases weighing less than 150 lbs.), but lumper fees will apply.  

Related Reading: What Are Lumper Fees at Walmart? 

For scheduling KeHE pickup and other transportation questions, email ibtrans@kehe.com.  

To change your delivery method, submit a ticket at the Freight Requests Fresh Desk. 

Labeling and Shipping Documents 

Beyond transportation formalities, it’s essential for suppliers to keep their labeling and documents compliant. Failure at this juncture almost always results in avoidable revenue loss.  

BOL Requirements 

KeHE requires two Bills of Lading (BOLs) for each shipment. This document functions as a contract between the supplier and KeHE, and it contains all of the essential information pertaining to the parties involved with the shipment.  

At a minimum, these documents must contain: 

• Ship From Address 

• Ship To Address & Contact Information 

• Date Shipped 

• PO Information (including the PO Number, number of cases, weight, handling unit, and more) 

• Ship To Arrive Date (this can be found in the KeHE PO) 

• Carrier Name 

• Freight Payment Terms 

• Carrier Information 

  • Handling Unit (quantity and type) 

  • Package (quantity and type) 

  • Grand Total of Handling Units, Cases and Weight of Shipment 

  • National Motor Freight Classification 
  • Seal Number 
  • Temperature and Requirements 
  • Special Instructions  

Related Reading: LTL Shipping: What is an NMFC Number? 

For Supplier Delivered (Prepaid) shipments, suppliers should add “All unloading, sorting and segregating charges to be billed to the Supplier” to the BOL.  

Packing List Requirements 

In addition to the two copies of the BOL, KeHE requires that all shippers have a Packing List detailing all the amounts contained in the shipment for comparison with the ordered amounts.  

These Packing Lists must be connected to a pallet and easily identifiable. KeHE requires a one-to-one Packing List to PO ratio.  

At a minimum, Packing Lists must have: 

• Supplier Contact Information 

• PO Number 

• Date Shipped 

• Pallet Count 

• Item Number(s) 

• Item Description 

• Unit of Measure (from KeHE PO) 

• Quantity on Pallet 

• Total Quantity Ordered (from KeHE PO) 

• Total Quantity Shipped 

• Expiration Date 

This is the Packing List Example used in the Inbound Routing Guide: 

Labeling 

As well as a Packing List, supplier shipments must also include a detailed external label attached to the case. Without these, the receiving teams are not capable of differentiating items in identical casings.  

These labels must include: 

• Detailed Item Descriptions 

• Unit Barcode/GTINs/GS1-128 Barcodes (see Attachment 4 of the Inbound Routing Guide for an example) 

• Product Expiration Date Codes 

• Random/Catch Weight 

Pallet Requirements 

KeHE only accepts Consumer Brands Association (CBA) pallets from their suppliers. CBA used to be called Grocery Manufacturers’ Association (GMA) before they rebranded in January 2020. Suppliers should expect to receive fines for non-CBA pallets and/or broken or poor quality pallets.  

The basic criteria for CBA pallets are: 

• 48” by 40” dimensions 

• All-side (four-way) forklift entry 

• Standard 3 stringer pallets 

• 2,500 lbs. load bearing capacity 

• The boards on the top and bottom must be 5/8” thick 

Packaging and Shipping Requirements 

Along with compliance around shipment messaging (like barcodes and labels), KeHE also has compliance regulations surrounding packaging and shipping standards. 

Stacking and Pallet Labeling Requirements 

KeHE requires that similar products in the same PO be packaged together as much possible for the supplier. KeHE also requires that pallets comprised mostly of the same SKU be stacked on the bottom in order to reduce re-handling at the DC.  

Tape, twines, bands, and nylon rope are not allowed for pallet wrapping. Instead, suppliers are required to wrap their pallets in a secure stretch wrap strong enough to hold the items together in transit.  

Pin-wheeled pallets are not allowed. Pallets should not exceed a total stack height (HI) of 72”.  

Each pallet should also be labelled with a Pallet Placard. The example Pallet Placard from Attachment 3 of the Inbound Routing Guide is: 

Lock, Seal, and Temperature Control Requirements 

As a major food distributor, KeHE makes health and safety requirements an essential part of their compliance program. But lock and seal requirements apply to shipments as well as food storage/transportation. All transport equipment must be secured by seals on all openings. This precaution prevents theft and misunderstandings around shipping amounts.  

Items requiring temperature control must be kept at the required temperature. Refrigerated items should be kept between 34 and 40 degrees Fahrenheit. Protein items should be kept between 28 and 40 degrees Fahrenheit, and frozen items should be kept between –20 and 0 degrees Fahrenheit.  

If an item in a shipment requires temperature control, this must be indicated on the BOL. Otherwise, the supplier may be liable for losses or damages that result. 

Performance Fees and Charges 

Suppliers can expect fees for all instances in which they fall out of compliance with KeHE’s policy. The two primary compliance fines that KeHE suppliers are bound to encounter are Inbound Fill Rate & On Time Performance. Elsewhere in the industry, these two are familiarly called On Time and In Full fines or OTIF.  

For Inbound Fill Rate fines, KeHE will issue a 3% fee to the amount of shorted product below the 98% fill-rate threshold. This fine is deducted from the a future supplier invoice.  

For On Time Performance fines, KeHE will send fines quarterly. There is a 92% minimum on time performance threshold.  

KeHE suppliers should also expect regular Lumper Fees. These are not generally considered to be “compliance” or “performance” related charges, but they will come in regularly along with them, as KeHE prefers to do the lumping and unloading of shipments themselves at their DCs. 

How to Dispute Compliance Fines at KeHE 

KeHE suppliers can dispute compliance deductions by submitting a claim with vendorperfromance@kehe.com. This claim should include:  

• Relevant EDI records that are time-stamped appropriately 

• A signed BOL 

• Any other relevant communications with KeHE and/or photographic evidence that could pertain to the shipment in question 

For general deductions from payment questions contact: vendorsupport@kehe.com. 

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