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Packaged Goods Shippers Urged to Quantify Hidden Logistics Costs

Packaged goods companies are losing margin to unmeasured exceptions that strain labor, warehouse capacity and operational coordination, industry analysis shows. G3 Logistics released a framework for identifying and valuing these hidden costs, recommending shippers align sales, operations and finance teams to address recurring workarounds. The Exception to Value Framework guides companies through four options when facing service requests: absorb costs, redesign processes, implement pricing adjustments, or decline the business. Shippers that quantify these exceptions can protect margins while maintaining customer relationships, according to the guidance. This approach transforms ad-hoc accommodations into deliberate commercial decisions grounded in financial reality.