Research·October 22, 2026 at 7:00 AM EDT·1 source
Late, short deliveries cost food and CPG makers $100 billion
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News
Estimated annual total costabout $100 billion
Indirect losses$85 billion to $90 billion
Potential recovery from OTIF improvement$11 billion to $23 billion
Direct costs$10 billion to $11 billion
What happened
- Cleo estimates late and incomplete deliveries cost North American food and CPG manufacturers about $100 billion annually.
- Direct costs account for $10 billion to $11 billion, while indirect losses total $85 billion to $90 billion.
- Cleo says improving OTIF performance by 5 to 10 percentage points could recover $11 billion to $23 billion across the market.
Estimated annual total cost
about $100 billion
Direct costs
$10 billion to $11 billion
Indirect losses
$85 billion to $90 billion
Potential recovery from OTIF improvement
$11 billion to $23 billion
Why it matters
The estimate highlights material hidden margin and revenue leakage for food and CPG manufacturers, particularly midsize companies, and supports investment in supply-chain planning, logistics and chargeback management.
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Timeline
- EarlierOct 21Eternal’s Profit Trails Estimates on Higher Quick Delivery Costs
- EarlierOct 21Trump Hands Out $8 Billion to Farmers; Kroger Targets Earnings Growth
- EarlierOct 21While Amazon blocks AI agents, Walmart rolls out the welcome mat
- First reported by FreightWavesOct 22Late, short deliveries cost food and CPG makers $100 billion
Who is involved
Late, short deliveries cost food and CPG makers $100 billionCleoWalmartWMTAmazonTargetTGTKrogerKRCostcoPublixMahesh Rajasekharan
CompanyPerson
Sources (1)
- FreightWavesOct 22Late, short deliveries cost food and CPG makers $100 billion
Related
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- Oct 22 · Kroger CFO: We Are an Agent for the Consumer
- Oct 21 · While Amazon blocks AI agents, Walmart rolls out the welcome mat
- Oct 21 · Trump Hands Out $8 Billion to Farmers; Kroger Targets Earnings Growth
- Oct 21 · Eternal’s Profit Trails Estimates on Higher Quick Delivery Costs
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