Field guide · New supplier onboarding
For CPG brands entering KeHE distribution for the first time.
The first 90 days set the patterns your operation will run on for years. This guide walks through every fee, deadline, system credential, and operational checkpoint from item setup through your first remittance — so you build the right habits before the wrong ones take root.
Direct answer
The first 90 days set the patterns your operation will run on for years. Every fee, credential, EDI connection, and compliance check you handle now determines whether your KeHE account runs smoothly or generates avoidable deductions month after month. This guide covers three phases: item setup and EDI (days 1-30), first shipments (days 31-60), and first remittance and deductions (days 61-90).
New suppliers who follow this timeline typically see their deduction rate stabilize 2-3 months faster than those who discover these requirements reactively. The compliance guide covers the full fee schedule. The DTC-to-wholesale guide covers the broader operational shift.
Days 1-30 · Item setup & EDI
The first month is paperwork and system setup. Every item must be registered, every fee must be paid, and your EDI connection must be tested before the first PO can flow. Six steps, in order.
Pay the new item setup fee
KeHE charges $50 per item plus $50 per distribution center for every new SKU. A five-SKU launch across four DCs costs $1,250 in setup fees alone. Budget for this before you sign the Terms Form. The fee is non-refundable and due before the item goes live in the system.
Negotiate the introductory allowance
KeHE requires a minimum 15% introductory allowance on new items. This is a promotional discount deducted from every invoice during the introductory period. Some categories negotiate higher. Understand that this 15% comes off every dollar from day one — it is not optional, and it is not a one-time fee.
Select an EDI provider and complete 850/855/856 testing
KeHE requires EDI for all order processing. You need an EDI provider (SPS Commerce, TrueCommerce, or similar) capable of sending and receiving the three core transaction sets: 850 (purchase order), 855 (acknowledgment), and 856 (advance ship notice). Testing takes 2-4 weeks. Do not wait until the first PO arrives.
Enroll in SPINS IX-ONE (mandatory)
SPINS IX-ONE enrollment is mandatory for all KeHE suppliers. This is the syndicated data service that tracks your retail sales through KeHE. Enrollment connects your UPCs to the SPINS reporting system. Without it, your items cannot be properly tracked and you lose visibility into sell-through performance.
Pay the publication listing fee
KeHE charges $450 per brand for the publication listing. This covers your brand presence in the KeHE CONNECT catalog that retailers browse. The fee is per brand, not per item. If you have one brand with ten SKUs, it is $450. Two brands cost $900.
Set up your KeHE CONNECT Supplier portal access
KeHE CONNECT is the supplier portal for order management, item maintenance, and reporting. Request credentials early. You will need portal access to manage item data, view POs, check inventory levels at each DC, and eventually access K-Solve for deduction review.
Days 31-60 · First shipments
Your first shipments establish your reputation with every DC receiving team. Appointment scheduling, pallet compliance, and ASN accuracy all get measured from the start. There is no grace period for new suppliers.
C3 Reservations is the appointment scheduling system. You receive separate credentials for each distribution center you ship to. Do not assume one login works across all DCs. Request credentials as soon as your items are active in the system — scheduling delays cascade into late delivery fees.
KeHE requires delivery appointments to be scheduled through C3 Reservations at least 7 days before the delivery date. Your first shipment sets the operational tone. A missed scheduling window means the DC cannot receive your product. No-show fee: $250. Same-day cancellation: $250.
KeHE requires CBA (Chep Block A) pallets — standard GMA 48x40 inches, 4-way entry. Maximum stack height is 60 inches including the pallet. Non-compliant pallets trigger extra handling fees: $25-$75 for tiered unloading, $85-$160 for sort and segregate. Get this right on the first shipment.
The advance ship notice must include lot-level detail for FSMA 204(d) traceability. The ASN is what the DC uses to verify the incoming load against the PO. A missing or inaccurate ASN causes receiving delays, discrepancy reports, and sets a poor pattern with the DC receiving team.
KeHE measures fill rate from your first shipment. The 95% threshold applies immediately — there is no grace period for new suppliers. Fill rate below 95% triggers a 3% service level fine on the shortage amount. Ship complete on your first orders or the fees start on day one.
Days 61-90 · First remittance & deductions
Your first remittance reflects every fee, allowance, and compliance charge from the first two months. This is normal, but it is also where new suppliers either learn the system or start reacting emotionally to contractual deductions. Five things happen in this phase.
Your first remittance arrives
KeHE remits payment on a standard cycle. Your first remittance will be smaller than expected because it reflects deductions for the introductory allowance, MCB processing fee, customer spoilage allowance, and any compliance charges from the first shipments. Do not panic — but do reconcile every line.
Introductory allowance deductions appear on every invoice
The 15% (or higher) introductory allowance is deducted from every invoice during the introductory period. These are contractual — they follow the terms you agreed to. Verify the percentage matches your Terms Form. Disputing a contractual allowance wastes time and credibility.
MCB processing fee begins: 8% with $130 minimum per DC per month
The MCB (Manufacturer Chargeback) processing fee is 8% of promotional funding routed through KeHE, with a minimum of $130 per distribution center per month. If you are not enrolled in the AAP (Administrative Allowance Program), this fee applies. AAP enrollment exempts you from MCB. Evaluate AAP before the first MCB charge arrives.
Complete your first K-Solve review
K-Solve is KeHE's supplier-facing deduction and dispute portal. Log in and review every deduction line from your first shipments. Classify each line: is it contractual (introductory allowance, spoilage deposit) or potentially disputable (shortage, compliance charge)? Understanding your baseline now prevents confusion later.
Establish your baseline deduction rate
Your first-quarter deduction rate sets the benchmark for everything that follows. A typical new supplier sees 18-25% of gross revenue consumed by deductions in the first quarter (introductory allowance, MCB, spoilage, setup fees). This percentage should decrease as introductory terms expire and operations stabilize.
What you will see
These are the most common charges that appear on a new supplier’s first remittances. Some are one-time setup costs. Others are ongoing and contractual. Know the difference before your first K-Solve review.
For the complete fee schedule, see the KeHE compliance guide. For prefix code definitions, see the full 111-code reference.
Avoid these
Every one of these is preventable. Every one costs real money or dispute position. The common thread: they all stem from not setting up systems before the first PO arrives.
The EDI 855 (purchase order acknowledgment) must be sent within 24 hours of receiving the 850. Missing this window does not carry a direct fee, but it blocks the EDI 810 invoice and signals to KeHE that your operation may not be managing orders systematically. Set up automated acknowledgment from day one.
Set up auto-acknowledgment before the first PO arrives
KeHE requires CBA pallets. Shipping on non-standard pallets, grocery pallets, or damaged pallets triggers unloading fees ($25-$75 per tier) and sort-and-segregate charges ($85-$160+). Your 3PL may default to whatever pallets are available. Specify CBA in your fulfillment instructions explicitly.
Add CBA pallet requirement to your 3PL SOP
The Administrative Allowance Program (AAP) exempts suppliers from the MCB processing fee. If you are running any promotional funding through KeHE and are not enrolled in AAP, you are paying 8% (minimum $130/DC/month) unnecessarily. Evaluate AAP enrollment before your first promotional period begins.
Evaluate AAP enrollment before the first promo period
When KeHE issues an Unloading Discrepancy Report (UDR), you have 48 hours to respond with counter-evidence. Miss the window and the DC count becomes the official record. New suppliers often do not know to watch for UDRs. Set an alert for every delivery and check within 24 hours, not 48.
Set delivery alerts and check for UDRs within 24 hours
K-Solve is the only accepted channel for filing deduction disputes with KeHE. If you do not have K-Solve access when the first deduction appears on your remittance, you are already behind. Request access during onboarding, not after the first remittance arrives. The 180-day dispute clock starts at the deduction date.
Request K-Solve access during onboarding setup
Frequently asked
For a typical launch with five SKUs across four DCs, budget approximately $2,000-$2,500 in setup fees: $1,250 in item setup ($50/item + $50/item/DC), $450 for the publication listing, and SPINS IX-ONE enrollment. This does not include the ongoing introductory allowance (15%+ of every invoice), MCB fees, or spoilage deposits that appear on your first remittance.
The introductory allowance is a promotional discount KeHE deducts from every invoice during your introductory period. The minimum is 15%, but KeHE may request higher depending on your category and the retailers requesting your product. The rate is set in your Terms Form. You can negotiate, but going below 15% is rare for new suppliers.
EDI setup typically takes 2-4 weeks from provider selection through testing. You need the three core transaction sets: 850 (purchase order inbound), 855 (acknowledgment outbound), and 856 (advance ship notice outbound). Some providers also set up the 810 (invoice) and 753 (ready to ship notice). Start EDI setup the moment you sign with KeHE — do not wait for your first PO.
Set up K-Solve access during your onboarding period, before any shipments go out. K-Solve is the only channel KeHE accepts for deduction disputes, and the 180-day dispute clock starts at the deduction date. If you wait until deductions appear on your first remittance, you have already consumed weeks of your dispute window.
New KeHE suppliers typically see 18-25% of gross revenue consumed by first-quarter deductions. This includes the introductory allowance (15%+), MCB processing fees, customer spoilage deposits, and any compliance charges from early shipments. This rate should decrease as introductory terms expire and your operations stabilize, typically settling to 8-14% for well-managed accounts.
Evidence boundary: This guide is an operating framework for new KeHE suppliers, not a substitute for current KeHE documents, your specific Terms Form, or a determination that any specific fee is avoidable. Fee amounts and thresholds are sourced from KeHE’s published P&P Fee Schedule (Rev Jun 2026) and Supplier Technology Guide. Always verify current terms, deadlines, and fee schedules through the KeHE CONNECT Supplier portal.
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