UNFI and KeHE Distribution: What CPG Brands Need From a 3PL Before the First Distributor PO

Short answer: Once UNFI or KeHE carries your product, orders stop looking like ecommerce orders. They arrive as EDI purchase orders for cases and pallets that must reach a distribution center on a scheduled appointment, labeled and built to the distributor's rules, with fees for late, incomplete or non-compliant shipments. Before the first PO, make sure your 3PL can handle the EDI documents (or work with your EDI provider), case and pallet labeling, compliant pallet builds, delivery appointments, lot and expiration tracking, and LTL or truckload freight.

What are UNFI and KeHE?

UNFI and KeHE are two of the largest distributors of natural, organic and specialty products to grocery retailers in North America. A retailer that agrees to carry your product often buys it through one of them rather than directly from you, so the distributor becomes your customer on paper. KeHE, for example, operates 19 distribution centers serving more than 31,000 retailer partners, according to SPS Commerce's summary of its compliance program. UNFI supplies retailers through several divisions, including Fresh, Conventional, Natural, Tony's and Albert's. Many brands end up selling through both, depending on which retailers they win.

How is a distributor order different from a DTC order?

If wholesale is new for your brand, our overview of B2B fulfillment services explains the basics.

Which EDI documents do UNFI and KeHE use?

EDI (electronic data interchange) is how distributors send orders and receive confirmations, ship notices and invoices. If the acronyms are new, start with our EDI guide. UNFI's recent EDI expansion, as summarized by SPS Commerce, names documents including:

• 850/875 purchase order
• 855 purchase order acknowledgment
• 860/876 purchase order change
• 856 advance ship notice (ASN), plus a GS1-128 pallet label
• 810/880 invoice
• 852 product activity data, 824 application advice and 864 text messages

KeHE adds specific timing rules. According to SPS Commerce:

• Suppliers must send an 855 within 48 hours of receiving an 850.
• For KeHE Pick Up (FOB) orders, an EDI 753 ready-to-ship notice must go out three business days before the shipment is ready for pickup.
• As of July 1, 2026, suppliers must be able to send and receive the 860 PO change and 812 credit/debit memo.
• KeHE applies a $150 fee to any invoice it does not receive by EDI, and its compliance program carries a 2% fee on non-compliant purchase orders.

What are KeHE's shipping and pallet requirements?

KeHE publishes these rules in its Inbound Routing Guide (Version 16 is dated July 1, 2026). Highlights from SPS Commerce's summary:

• Appointments: truckloads need an appointment in KeHE's C3 scheduling system, requested at least 7 days before the ship-to-arrive date. Changes within 3 days of the appointment carry a fee.
• Pallets: only Consumer Brands Association (CBA) pallets, 48" x 40", four-way entry, with a maximum loaded height of 72".
• Pallet build: stretch-wrap from top to bottom including the pallet; no tape, bands or pinwheel stacking; group like products with the dominant SKU on the bottom.
• Labels: a GTIN-12 (UPC) on each unit, and an ITF-14 or GS1-128 on each case.
• Documents: two bills of lading per shipment and one packing list per PO, attached to a pallet.
• Temperature: refrigerated product at 34–40°F and frozen at -20–0°F unless the bill of lading states otherwise.
• On time: deliveries must arrive by the PO date. Suppliers must keep an 85% on-time rate each calendar quarter, or each late shipment in that quarter costs $250.

These rules change, so always work from the current guide the distributor gives you. For a broader look at how retail fines work, see our guide to retail compliance and chargebacks.

How much can non-compliance cost?

The fees add up quickly for a small brand. Suppose you send ten KeHE deliveries in a quarter and two arrive late. That is 80% on time, below the 85% threshold, so both late shipments carry $250 each, or $500. Add one invoice that went out by email instead of EDI ($150) and a rescheduled appointment inside the 3-day window, and a single quarter's fees can exceed the margin on a small opening order. Deductions are also usually taken from what the distributor pays you, so they show up as short payments rather than separate bills.

Who does what: the brand, the 3PL or the EDI provider?

• Brand: owns the distributor relationship, item setup, pricing and the decision to accept a PO.
• EDI provider: connects to the distributor and translates documents. Some 3PLs provide this through a partner; others connect to the EDI provider you already use.
• 3PL: picks and packs cases, applies case and pallet labels, builds compliant pallets, books freight and appointments, sends shipment data for the ASN, and tracks lots and expiration dates.

Write this split down before the first PO. Most first-order problems come from a step everyone assumed someone else owned, such as who books the C3 appointment.

What should you ask a 3PL before the first distributor PO?

1. Which EDI documents can you send and receive for UNFI and KeHE, and who maintains the trading-partner setup?
2. Can you print and apply GS1-128 case and pallet labels that match the ASN?
3. Do you stock CBA-grade pallets and build to the distributor's height and wrap rules?
4. Who books delivery appointments, and how do you track appointment changes?
5. Do you book LTL and truckload freight, and can you handle KeHE Pick Up orders?
6. Can you track lot numbers and expiration dates and ship first-expired, first-out? (See lot tracking and expiration management.)
7. Do you offer temperature-controlled storage if your product needs it?
8. What is your chargeback rate on retail and distributor shipments, and how do you handle deductions you caused?

How does Atomix support distributor orders?

Atomix runs DTC and B2B/retail fulfillment from the same inventory in Milwaukee, Salt Lake City and Baltimore. Retail EDI and compliance run on RetailReady, and Atomix also provides lot tracking, domestic freight booking and temperature-controlled storage at its Milwaukee facility. Atomix reports a chargeback rate under 1%. For CPG brands balancing grocery distribution with ecommerce, our post on omnichannel fulfillment for CPG brands covers how to keep both channels stocked from one pool.

Frequently asked questions

Do I need EDI to sell through KeHE or UNFI?

In practice, yes. Both work through EDI, and KeHE charges $150 for each invoice it does not receive by EDI.

Can my 3PL handle EDI for me?

Many 3PLs can, either directly or through an EDI partner. Confirm who owns the connection, who monitors incoming POs, and who fixes rejected documents.

What pallets does KeHE require?

CBA-grade 48" x 40" four-way pallets, loaded no higher than 72" and stretch-wrapped from top to bottom, per KeHE's Inbound Routing Guide.

What happens if a KeHE delivery is late?

If your on-time rate falls below 85% in a calendar quarter, each late shipment in that quarter carries a $250 fee.

Getting ready for your first distributor PO? Talk to Atomix about B2B and retail fulfillment.

Sources: SPS Commerce, The Supplier's Guide to EDI at UNFI (updated September 2026); SPS Commerce, KeHE's Compliance Program: Inbound Routing Guide Overview; SPS Commerce, Ready to Ship at KeHE: From EDI 855 to EDI 753; Atomix service information (atomixlogistics.com, accessed October 2026).