Edition 1 • 2022
All things food supply chain.
GOOD HELP IS
HARD TO FIND FOOD SHIPPERS OF AMERICA OPTION 1
HOW TO NAVIGATE THE LABOR SHORTAGE BY UNDERSTANDING GENERATIONAL DIFFERENCES
What the Infrastructure Bill Means to Food Chains
INSIDE:
TOP
Food Chain Pros to Know
How to Create a Competitive Supply Chain Advantage during Disruptive Times The Voice of the Food Shipper: Our Biggest Challenges
Tee’d Up
Trailer Bridge is to Serve All Your Supply Chain Needs
From domestic transportation throughout North America to ocean shipping around the globe. We offer a single point of contact for our customers and tailor a solution that prioritizes reliability and safety for your fresh, frozen, and processed food and beverage freight. WE MAKE IT HAPPEN FOR YOUR
1.844.TB.SHIPS
|
F&B Freight!
TRAILERBRIDGE.COM
Look for your TB Poker Chip in your Golf Tournament swag bag to enjoy a drink on us!
Scan a QR code to schedule a meeting today!
www.foodshippersofamerica.org |
1
Your routing guide looks like your pantry. Your routing guide is full of stuff you don’t use. Last month’s rates are rejected 25% of the time and are as useful as the old expired spices, stale chips, and mystery canned goods in the back of your pantry. Ditch the stockpiling. Opt for clean, instant freight booking. Add Loadsmart’s dynamic pricing to your TMS and access instant capacity at the real-time market rate.
FREE TMS INTEGRATION
INSTANT CAPACITY
WWW.LOADSMART.COM
REAL-TIME MARKET RATE
FOOD CHAIN Digest
Edition 1 • 2022
EDITION 1 • 2022 Published three times a year for: Food Shippers of America 1144 East State Street, Suite -288A Geneva IL 60134 847-302-1496 executivedirector@foodshippersofamerica.org www.foodshippers.org Published by: MindShare Strategies, Inc. Ponte Vedra Beach, FL 32082 USA 952-442-8850 x201 www.MindShare.bz
All things food supply chain.
IN THIS ISSUE FOOD SHIPPERS OF AMERICA OPTION 1
8
Billing Address: MindShare Strategies, Inc. P.O. Box 843 Springfield, TN 37172 USA Group Editorial Director and Publisher: Brian Everett, ABC 952-442-8850 x201 brian@mindshare.bz Editorial Content This Edition: Faith Boone Conrad Winter Brian Everett Cassidy Haley Courtney Bloom Advertising Sales: Cassidy Haley 952-442-8850 ext. 215 cassidy@mindshare.bz
COVER STORY
Design/Production Manager: Todd Pernsteiner 952-841-1111 todd@pernsteiner.com Accounting/Administration/Circulation: Karen Everett 952-442-8850 x203 karen@mindshare.bz
8
Good Help is Hard to Find: How to Navigate the Labor Shortage by Understanding Generational Differences
MESSAGES 4
What’s In A Brand? By Brian Everett, Publisher
©2022 MindShare Strategies, Inc. All rights reserved. Contents may not be reproduced by any means, in whole or in part, without the prior written permission of the publisher. The opinions expressed in this publication are not necessarily those of MindShare Strategies, Inc., nor Food Shippers of America. Printed in USA.
6
Listening to Shippers to Bring More Value By David Domencic, Incoming FSA President, ARMADA Supply Chain Solutions
Food Shippers of America Board
FEATURE STORIES
Food Shippers of America Executive Director Paul Newbourne
Board Advisors Motor Carrier: Mary Kearney Tucker Freight Lines
12
Brands Leading the Charge How to Create a Competitive Supply Chain Advantage During Disruptive Times
President Steve Stein Danone NA
Railroad: Lyle Hayes BNSF Railway
20
The Voice of the Food Shipper: Our Biggest Challenges
22
Top Food Chain Pros to Know 2022
Vice President David Domencic ARMADA
3rd Party Logistics: Pete Roessle Americold Logistics
Secretary Mike Marquardt Birchwood Foods
Technology Advisor: Jim Mueller Food Shippers of America
Treasurer Earnie Seibert Food Shippers of America Board Chair Kelly Stoeckigt Palermo’s Pizza Board Members Darica Schneider Hormel Foods Lori Lammers Hostess Brands LLC Peter Andrews Schreiber Foods
Media Advisor: Chris Wilkes Celtic International FSA Media Committee Renee Nielsen Transportation Consultant Stace Knabel Promise Delivered Chris Wilkes Celtic International
TOP
Food Chain Pros to Know
24
MARKET INTELLLIGENCE 24
Infrastructure Bill to Fortify Food Industry for the Long Run
30
The Future of Truck Automation is Here
34
Now's the Time to Consider Your Pallet Strategy
36
BUYER’S GUIDE
30
Rob Lyall Tyson Foods www.foodshippersofamerica.org |
3
LETTER FROM THE PUBLISHER
Brian Everett, Publisher Senior Partner, MindShare Strategies 952-442-8850 x201 brian@mindshare.bz
What’s in a Brand? A brand is a name, term, design, symbol or any other feature that identifies an organization. Take it a step further and a “brand experience” is the sum of all the value you gain through your involvement in an organization. When this involves a long-standing industry association like Food Shippers of America (FSA), your brand experience involves many “touch points,” whether it be your participation at a conference or webinar, as you engage in online dialogue with your peers through social media engagement, or consume market intelligence through the association’s various channels. So prepare yourself for a new brand experience with Food Shippers of America (FSA) through this first edition of Food Chain Digest, the redesigned official magazine of FSA. Our goal with this new magazine is to bring you more relevant content, more perspectives from supply chain subject matter experts, and more best practices and case studies on a more frequent basis. The changes reflected in the newly launched Food Chain Digest were enabled when FSA secured the services of my firm, MindShare Strategies, a full-service association management and marketing firm that specializes exclusively in the
FSA’S NEW BRAND TRULY LIVES UP TO ITS NEW TAGLINE: “ALL THINGS FOOD SUPPLY CHAIN.”
4
| FOOD CHAIN DIGEST • EDITION 1 • 2022
transportation, logistics and supply chain industry. All of these changes have been driven by a primary goal: to provide more value to you – the supply chain, transportation and/or logistics professional in the food and beverage industry. After all, that’s what the Food Shippers of America brand is all about. The brand experience is also intended to help amplify an experience that makes involvement with an association unique. Clearly FSA brings to the table very unique attributes as it’s the only professional association of its kind to focus on the supply chain, logistics and transportation professional specifically practicing in the food industry. FSA’s new
brand truly lives up to its new tagline: “All things food supply chain.” So enjoy the enhancements and experiences you’ve seen from FSA in recent months. There’s much more to come. And if you’d like to share your unique perspectives on an industry topic or challenge, or provide a case study or success story of something your company has recently accomplished, reach out to me. My team and I are here to serve.
www.foodshippersofamerica.org |
5
MESSAGE FROM THE INCOMING PRESIDENT
David Domencic Vice President, ARMADA Supply Chain Solutions
Listening to Shippers to Bring More Value BY LISTENING TO OUR KEY STAKEHOLDERS, WE FOUND THEY ARE HUNGRY FOR MORE INFORMATION, MORE MARKET INTELLIGENCE, MORE BEST PRACTICES, MORE CASE STUDIES, AND MORE PERSPECTIVES ON HOW TO DO THEIR JOBS BETTER AND BRING MORE VALUE TO THEIR ORGANIZATIONS AND CUSTOMERS. Since 1955, Food Shippers of America (FSA) has been providing unique networking opportunities and knowledge to those involved in the food industry. While the phrase “supply chain” wasn’t even recognized as a term back then, let alone a formal business strategy, there were enough professionals with common interests in the creation and selling of food products that a trade association was formed. Fast forward nearly 70 years later to an industry association that’s flourishing, even through a global pandemic. Never before have there been more challenges – and opportunities – for supply chain, operations, transportation, logistics and distribution professionals to bring competitive efficiencies, productivity, and business value to their organizations. Given this, in early 2021 the FSA board of directors decided to engage MindShare Strategies (an association management and marketing firm focused exclusively on supply chain, transportation and distribution) to deepen the value FSA provides its members. Our first step was to listen to our key stakeholders – current members, past members, providers of products and services to our members, and FSA leaders. Gathering input and
6
| FOOD CHAIN DIGEST • EDITION 1 • 2022
gaining perspective was accomplished through many one-on-one interviews and surveys. Some of these insights gained from shippers are highlighted in the article on page 16, “The Voice of the Food Shipper: Our Biggest Challenges.” By listening to our key stakeholders, we found they are hungry for more information, more market intelligence, more best practices, more case studies, and more perspectives on how to do their jobs better and bring more value to their organizations and customers. And more frequently. What does this mean to those involved in FSA? More everything! Along with a continued focus on bringing one of the most unique and powerful conferences each year to the marketplace, FSA is bringing value through a newly designed magazine, Food Chain Digest. You’re currently reading the first edition of this new magazine, which will feature best practices, perspectives, and market data more often (three times a year). And if you or your company would like to share your own challenges and perspectives, make sure to reach out to the editorial team at MindShare Strategies who publish this magazine. They’re eager to learn more about you and your company to share with our readers.
You’ll also receive more information through FSA’s official e-newsletter, Food for Thought, which will be published twice monthly for timely, relevant, frequent information on the latest in food chain news and practices. To ensure your subscription to both the magazine and e-newsletter is current, simply visit our newly designed website, FoodShippers.org, to subscribe under the tab “News & Trends.” We’re also giving subscribers of the magazine the preference of receiving the magazine in a digital and/or print format, so you can indicate your preference through the subscription form as well. Lastly, in today’s online world FSA now has a stronger presence in social media. Through our social channels you’ll find more regular updates on industry developments, the latest news at FSA, and relevant content on the marketplace. Make sure to follow Food Shippers of America social channels and interact with your industry peers on LinkedIn, Facebook, Instagram (food_shippers) and Twitter (@FoodShippers). In the meantime, FSA looks forward to our continuous goal of bringing relevant knowledge and networking to the food chain marketplace.
www.foodshippersofamerica.org |
7
COVER STORY
GOOD HELP IS
HARD O T FI N D
HOW TO NAVIGATE THE LABOR SHORTAGE BY UNDERSTANDING GENERATIONAL DIFFERENCES
8 | FOOD CHAIN DIGEST • EDITION 1 • 2022
The workforce is experiencing significant shifts in the needs of key stakeholders (employees, customers, partners, etc.) and these shifts are forcing companies to better understand the importance of embracing change and taking a closer look at workplace culture. The supply chain industry has spent years developing programs to deter the ongoing struggles linked to the labor shortage, including ways to recruit and retain new talent. What leadership is recognizing today is that the shifts in the workforce can be correlated to the uniqueness behind each different generation of workers, and how their environment influenced their perceptions of careers and work-life balance.
GENERATIONAL DIFFERENCES LIFESTYLES & INFLUENCES SHAPING TODAY'S WORKFORCE
The Demand for New Talent There is a lot of diversity in the workplace today from a generational perspective, according to Marilyn Surber, Transportation Leader for Tenstreet, a company that specializes in recruiting, safety and onboarding employees in transportation, warehousing and logistics. “Now, it is up to the companies searching for new talent to embrace everyone and anyone who is interested in the field.” Marilyn Surber
She points out that some companies can have up to five generations in the workplace, and understanding the characteristics and differences of each is important. “We all have to work together,” Surber says. “We have a lot of diversity in the workplace now, whether that's age diversity, generational diversity, gender diversity. We're in a place where we have to embrace all people no matter where they come from and who they are.” For example, the average age of an over-theroad truck driver is 55 years old, with an average lifespan of 61 years old, according to Surber. With older generations leaving the industry or retiring, the talent that needs to be recruited into the industry are the younger generations that are looking for their next career path. And that’s just one small but critical portion of the workforce in the supply chain.
Understanding Different Generations in the Workplace Surber says when discussing the labor shortage, the number of people in each generation is important. She identified the five generations
www.foodshippersofamerica.org |
9
COX SAYS OLD DOMINION OFFERS ITS EMPLOYEES OPPORTUNITIES TO GIVE BACK TO THE COMMUNITY THROUGH VOLUNTEERING, AND THE COMPANY ALSO TAKES A PERSONALIZED INTEREST IN EACH EMPLOYEES’ CAREER PATH.
of people working today and shared specific characteristics about each. Her information revealed innate differences between drivers based on their generational influences. See Illustration on Generational Differences on page 9. You have to be deliberate and intentional when hiring for the industry, whether it be an entry-level employee or a C-suite executive, says Vanessa Hernandez, Director of Carrier Resource Teams at Vanessa Hernandez J.B. Hunt. “When you do that, word gets out,” she says. “You have to expand your reach and have a culture that people talk about. A culture that’s easy to understand and can be communicated to anyone who asks.” Hernandez says doing more with social media and engaging high schools is important when recruiting individuals into logistics. “The industry is good with collegelevel internships,” she says. “Apprenticeships are a great idea. Shadowing is good. Diversity and inclusion, and let's get them excited about coming into logistics, warehousing and transportation. If you're interested in something we got something.” Old Dominion Freight Line is trying to get into as many high schools as possible and talk to students about the endless number of opportunities to work in the industry, according to Dee Dee Cox, Vice President of Human Dee Dee Cox Resources for
10 | FOOD CHAIN DIGEST • EDITION 1 • 2022
the major LTL carrier. The company is also reaching out to teachers to spread the word and identify students with interests that may be a fit for a particular position. “Trucks touch everything and we have to make sure everyone we talk to understands the logistics industry and how vital we are,” she says. “Every generation wants to have a purpose. During the pandemic, I think every person in transportation understood how meaningful their job was when we were so short of supplies.”
Acknowledge Diversity, Equity, and Inclusion Hernandez says J.B. Hunt employs resource groups including ones for women, African-Americans, veterans, Latinos, and more. “It's really about creating those opportunities and then letting people
know that they're out there. We encourage all of our folks to join one of these groups – join two, join three, get engaged, get involved, it gives you exposure, it gives you visibility, you learn how to gain influence, you learn how to improve your communication skills, you learn so much,” she says. Cox says Old Dominion offers its employees opportunities to give back to the community through volunteering, and the company also takes a personalized interest in each employees’ career path. “What we’ve done in our culture to engage each one of these generations is we have one-on-ones quarterly,” she says. “Their manager sits down with them four times a year and one of those talks is always about your career. Where are you? Where do you want to go? Where do you want to be? Let's see if we can get there.”
Opportunities exist for smaller companies as well. According to Tierra Kendrick, CEO of TAKL Logistics (a specialist in temperature-controlled freight), her multi-generational team is growing as her company expands. To recruit more to her workforce, she focuses on advocating for drivers. She Tierra Kendrick checks in with her team to see how they feel about their jobs and if they want to grow. “To understand the importance of our drivers, I tell my employees we are not only concerned with the customer or the supplier manufacturer, but we're advocates for drivers as well,” she says. “We’re showing that we're making a difference in people's lives. This is their livelihood. When you talk about being passionate about drivers, I say we are tackling logistics across the globe and changing the faces of the logistics industry one dispatch at a time. Every time we speak to a carrier or somebody at a warehouse, we’re advocating for those drivers.”
a career path will help the industry recruit and retain the best workers. “Showing people of all ages, genders and races that we're out here doing great things, we're making a difference, and we not just all older white males in this industry makes it more attractive to more people with diverse backgrounds," she says. "There are so many different career options in transportation, warehousing, and supply chain management.”
If your supply chain needs it, we do it.
Recruitment Efforts for Generations to Come Suber says there are things to remember about the Millennials and iGens if the industry wants to be successful in recruiting the next generation of drivers.
If you need it and it doesn’t exist, we’ll invent it.
“They're going to demand that feedback,” she says. “They're going to demand that career path and that open dialogue. In your businesses, if we know that that's what that generation wants, it's our responsibility as people running these companies and running our industry to say okay, how do we make it easy for these other generations to do this? How do we make it easy for these generations to join the logistics, transportation, or supply chain industry and understand the things that are most important to them.”
Our extraordinary capability is matched by our desire to do whatever it takes.
Kendrick says making transportation and distribution sexy by showing the number of avenues you can take for
Pallet Management
Let’s talk about how Bettaway’s services can add value to your supply chain. bettaway.com
|
Warehousing
|
Fulfilment
|
Transportation
www.foodshippersofamerica.org |
11
Brands Leading the Charge How to Create a Competitive Supply Chain Advantage During Disruptive Times Superior food companies don’t just push their products. They understand customer value, invest in their supply chain, and demand innovation internally and from their key business partners. Market-leading food companies are pushing to accelerate supply chain performance – primarily through customer-driven business transformations, innovative food chain strategies, and emerging
and integrated technologies. This has become particularly critical for successful food companies during the last many months of supply chain disruption, as is evidenced by those named to Gartner’s Supply Chain Top 25.
Kellogg Company. Food Chain Digest explores what it takes for companies like these to create a competitive edge.
Food companies making the prestigious list this last year include Nestlé, PepsiCo, Walmart, The CocaCola Company, Starbucks, General Mills, McDonald’s, Target, Danone, and
The Gartner Supply Chain Top 25 is a renowned annual ranking of the world’s superior supply chains. From financial and corporate social responsibility data and community
Factors that Create a Competitive Edge
MARKET-LEADING FOOD COMPANIES ARE PUSHING TO ACCELERATE SUPPLY CHAIN PERFORMANCE – PRIMARILY THROUGH CUSTOMER-DRIVEN BUSINESS TRANSFORMATIONS, INNOVATIVE FOOD CHAIN STRATEGIES, AND EMERGING AND INTEGRATED TECHNOLOGIES.
12
| FOOD CHAIN DIGEST • EDITION 1 • 2022
999197_Florida.indd 1
2/12/20 7:07 PM www.foodshippersofamerica.org |
13
opinion, companies that make the list clearly demonstrate excellence in supply chain management and these peer benchmarks are used to make the business case for supply chain transformation and the best practices that accelerate performance.
There were three key trends reported among supply chain leaders named to this year’s top supply chain ranks: The purpose-driven organization. If ever there was a time that supply chain has operated at the intersection of people, planet and purpose, it is now. Customers increasingly demand higher sustainability and ethical standards from suppliers. Corporate supply chains are responding by setting and taking specific action against ambitious, science-based
Throughout the last 24 months, supply chains have needed to demonstrate unprecedented levels of agility and flexibility to rise to the challenges of a global pandemic and other macroeconomic factors.
STRONG family Values EXTENSIVE national reach Coming to a region near you!
bigger isn’t better Less than 5 companies control over 70% of U.S. market capacity in the cold chain industry.
Best in class family 3pl For over 50 years, RLS has established as a best in class regional family-owned provider. Our vision is to be the leading family-owned cold chain solutions provider in the U.S. We are expanding our platform to other regional family-owned providers to build a worldclass national footprint. When you choose RLS, you choose to work with entrepreneurial professionals without the bureaucracy of the large providers. Our family-operated warehouse partner’s provide higher standards of service and responsiveness.
family-owned responSiveness Consolidations created a need for service levels only a family operated company can provide.
Family operated responsiveness on all your inquiries. Receive the highest standard of customer service.
Gain access to transparency into your supply chain with data that is essential to running your business through our customer platform, anello.
14
Customer-driven business transformation. Prior to the COVID-19 global pandemic, supply chains operated in a dynamic marketplace driven by escalating customer requirements and competition from both existing players and new market entrants. The pandemic drove intermittent supply disruptions, larger-than-normal demand swings and an accelerated level of business model transformation. Overall, the supply chains most able to adapt to shifting business conditions won, and industry observers expect this to continue to be a winning trait, as market disruptions now feel more like climate than weather. The digital-first supply chain. Supply chain leaders have reached a point in their transformation journeys where they consider themselves “digital first” in the use of technology to enable more seamless customer experiences and more insightful decisions in supply and product management, at scale. For example, ERP platforms are leveraged for cybersecurity and new digital technologies for automating non-value-added supply chain activities. Ultimately, no digital transformation would be possible without the right talent or change management capabilities.
Why work with rls? Partner with entrepreneurial professionals without the bureacracy of the large cold storage providers.
Grow and receive service that matches your company’s size and needs from top-tier regional providers on a national scale.
1120 Rt. 73, Ste. 310 Mt. Laurel, NJ 08054
sustainability targets as well as goals grounded in social issues like diversity, equity and inclusion (DEI). Key to delivering on the business’ purpose is better service to customers, suppliers, employees and communities, simultaneous with shareholders.
800.579.9900
| FOOD CHAIN DIGEST • EDITION 1 • 2022
info@rlslogistics.com www.rlslogistics.com
KEY TO DELIVERING ON THE BUSINESS’ PURPOSE IS BETTER SERVICE TO CUSTOMERS, SUPPLIERS, EMPLOYEES AND COMMUNITIES, SIMULTANEOUS WITH SHAREHOLDERS.
Premier, Temp Control/Service Critical, Truckload Carrier, Serving the Needs of Food Shippers of America
Award Winning Service Reliability Industry Leading Safety Performance “Commitment, not just Capacity”
J.S. Helwig & Son, LLC.
www.foodshippersofamerica.org | 15 222 Metro Drive, Terrell, TX 75160 | 888-771-3331 | www.jshelwig.com
Nestle Food Chain Snapshot Scope of Operation and Overall Business Strategy Despite the challenges of the pandemic, Nestlé continues to achieve improvements in organic sales growth through consumerdriven innovation that also strives to reduce the company’s environmental footprint. That’s no small task when you consider the company produces and sells powered and liquid beverages, milk products and ice cream, pet care and confectionery products, prepared dishes and water in more than 180 countries. Such an enterprise maintains very sophisticated and tightly orchestrated supply chains. How Nestle is Creating Competitive Advantage Across its operational networks, Nestlé has deployed flexible and scalable digital solutions to enhance responsiveness. These multi-year initiatives are enabling the company to better leverage technologies such as artificial intelligence, predictive analytics and collaborative robotics to support factory autonomation and end-of-line customization. Nestlé recently has expanded the scope
• Our locations: Chambersburg, PA Pittsburgh, PA Davenport, IA Rock Island, IL
of these programs to increase the flow, accessibility and utility of real-time data in areas such as procurement and supply chain management. These efforts support their drive to enhance transparency and traceability along its supply chains. Supply Chain Strategy Nestlé continues to step up its capacity to capture and share data across its value chains. The company works with supply chain partners to pilot solutions that will better balance efficiency and resiliency. For example, Nestlé recently increased the scope of its Transport Hub technologies to cover 50 percent of its global logistics network. In parallel, Nestlé extended the scope of its AI-powered network optimization tools to evaluate different product sourcing and delivery scenarios. This has enhanced its ability to respond quickly to changes in demand and to optimize transport and production schedules. These tools enable Nestlé to better service its customers and reduce its operational carbon footprint. Nestlé USA also operates a large private fleet (ranked 50th according to Transport Topics 2020 Top 100 Private Fleets).
ThermALERT
™
STANDARD
• Dry, Refrigerated and Frozen Temperature Zones
Transportation / Logistics
• Asset based with refer and dry vans • Rail/Truck Cross Dock Services • Rework and Packaging Services • Import/Export containers from
Get in Front of Tire Issues
Warehousing / Storage
Protect ALL of your tires with industry-leading data reliability.
Eastern Ports • Licensed for Alcohol Storage • USDA Room
Labeling / Repacking
• Customs Bonded Phone: 412-441-9512 Fax: 412-441-9517 Email: sales@catchuplogistics.com
www.catchuplogistics.com 16
TIRE. INTELLIGENCE. DELIVERED.
The Global Leader in Tire Inflation
SINCE 1993
Frozen and Refrigerated Space
| FOOD 1CHAIN DIGEST • EDITION 1 • 2022 1051662_CatchUp.indd
www.PSItireinflation.com © 2021 Pressure Systems International, Inc. All Rights Reserved Worldwide.
1 13/09/21 4:20 1046600_Pressure.indd PM
09/09/21 8:28 PM
PepsiCo Food Chain Snapshot Scope of Operations and Overall Business Strategy As the world’s secondleading beverage and snack food company, PepsiCo’s streamlined supply chain is a key aspect of the company’s success. To maintain steady growth, PepsiCo has focused heavily on acquisition, the soda giant has become much more than its signature drink, with portfolio brands including Frito-Lay®, Gatorade®, Quaker Foods, Tropicana®, and Lipton®, to name just a few.
track inventory. By improving ordering algorithms, stores can put in much more accurate orders, accounting for sales histories and purchasing trends. This aids in creating a streamlined, cost-efficient chain. In a recent interview with PepsiCo CFO Hugh Johnston, he says the pandemic may spur manufacturing changes: “Many of us have run supply chains and inventory levels more leanly than 5 to 10 years ago.” He says the surge in demand resulted in a “scramble to react.”
Supply Chain Strategy PepsiCo’s overall philosophy of cooperation, integration, and innovation helps ensure its varied and complex supply chain remains stable, resilient, and flexible. As a vast, multinational company, Pepsi must input, analyze, and act on an enormous amount of data to properly manage the flow of its food and beverage products – each with its own specific needs. For instance, some products require cold chain logistics, while others require ingredients sourced from multiple regions around the world. In addition to coordinating many suppliers, manufacturers, shippers, warehousing managers, and retailers, PepsiCo must plan for potential disruptions due to seasonal sourcing requirements, weather and climate change, and shifts in demand. To help ensure agility and adaptability, the company has focused on a couple of different areas in recent years. PepsiCo has been increasingly focused on investing in digital tools and advanced technologies to create a more efficient, streamlined supply chain. Specifically, the company is zeroing in on data integration to create a clearer picture of the individuals and households buying PepsiCo products. Not only could this help the business meet consumer demand in the short term, but it could also allow for better long-term strategizing and forecasting. More sophisticated data analytics also help PepsiCo’s distributors and retailers
Introducing new pallet fit™ doors making the qfr zone® blast freezing solution more efficient than ever! • • • •
• • • •
fits any pallet height reduces labor works with full, partial, or single layer pallets no more need for plug pallets, zone can run with one or multiple empty pallet positions increased airflow more flexible more efficient more $aving$
9009 Coldwater Road Fort Wayne, IN 46825 (260) 490-3000 • www.tippmanngroup.com
www.foodshippersofamerica.org |
17
Pandemics. Variants. Labor shortages. Hurricanes. Asteroids. We've seen a lot in the last 80-plus years, except for maybe the asteroids, but we'll keep on trucking. It's in our blood.
We are here for you. No matter what.
TRUE BLUE SUPPLY CHAIN MANAGEMENT A KOTTKE COMPANY
Truckload. LTL. Final Mile. Logistics. We deliver greatness. We are #BleedingBlue. www.kottke-trucking.com * www.truebluescm.com 800-248-2623
THE VOICE OF THE FOOD SHIPPER
Our Biggest Challenges The COVID-19 pandemic was nothing short of a Black Swan event for all food supply chains in the past two years, causing rippling disruptions that continue to impact domestic and global markets. Some of these challenges will play themselves out over time, yet others are more permanent – signaling a paradigm shift in the way we manage food chains in the future. These forces are changing the way corporate leadership addresses food chain operations and management, critical procurement, safety and integrity, and overall “go to market” strategy. In early 2021, Food Shippers of America (FSA) began an exhaustive research initiative that gathered perspectives, experiences and challenges from professionals with roles and responsibilities in transportation, logistics and supply chain management. As part of this process, more than 200 FSA members participated in an online survey and nearly 25 shippers and providers also participated in in-depth interviews to give deeper perspectives on food chain issues. FSA’s goal was to use this research to formulate a “voice of the food shipper” that ultimately would enable the association to identify opportunities through which to provide more value to members of FSA. Here’s what food chain executives say they’re biggest challenges are in the months ahead.
Supply Chain Disruption
supply chain operations will continue to force leaders to lean heavily on technologies and automation to create supply chain cohesion. Many are shifting focus to smaller, more concentrated teams who thrive using de-siloed supply chain data, made actionable by machine learning innovations. Material shortages are expected to persist in the year ahead. In fact, according to the Institute of Supply Chain Management (ISM) Report on Business, virtually every key commodity is either up in price or scarce – driving shortages and introducing complexities to supply chain management. While these variables will eventually level out, supply chain executives will need to adapt by adjusting lead times, building inventory, and diversifying suppliers.
Major Pain Caused by Rates, Capacity Trucking and intermodal costs reached historic highs last year – and from 2020 to 2021, spot prices leaped by double digits across the board. Ocean freight costs skyrocketed alongside them, and air freight followed close behind. A perfect storm of variables are making it tremendously difficult to move freight in any capacity. Food chain executives need to continue to understand the mechanics behind rising freight costs, with labor shortages, rising fuel prices, and port congestion all factoring in. To combat these forces, supply chain executives need to reevaluate, restructure, and re-forge partnerships with providers.
Disruptions in food chains were driven primarily by shortages of materials, inconsistent availability of skilled and reliable labor, and challenges in maintaining consistent operations and manufacturing. The negative effects of the pandemic layoffs, quarantines, and workforce exodus of the last two years likely will spill well into 2022. Trouble staffing key positions within procurement and Matthew Mason
Biggest Challenges Facing Food Shippers
“The capacity constraints of 2021 don’t seem to be slowing down heading into 2022,” says Matthew Mason, Principal of BM2 Freight Services. “The bottleneck of the ports as the increase of demand for services has continued to put additional stress on an already stressed market. You have to get creative with your solutions in a market like this.”
For example, he says a shipper began to fill their warehouse to maximum capacity, his company helped to solve a shipper’s problem when they maxed out their warehouse space by servicing them with drop trailers at pick-up and delivery. “This service allowed them to preload the freight, saving them precious warehouse space,” he says. “It also kept our drivers from waiting time at both shipper and receiver. This solution provided a win-win situation for both our customers and carriers. In a market like this, you have to think outside of the box to be successful.”
Supply Chain/Transportation Issues (64%) Capacity Management (63%) Best Practices in Supply Chain (52%) Rate Management (46%) Temperature-Controlled Issues (41%) Procurement/Provider Relations (41%)
0
0 20
20
40
60
80
100
20
40
60
80
100
| FOOD CHAIN DIGEST • EDITION 1 • 2022
Service. Communication. Integrity. It’s that simple.
FOOD A ND BE V ER AGE T H E B M 2 A D V A N T A G E • When we accept a shipment, we service it. • Dedicated account managers • 24-hour, in-office support • 98% on-time delivery for all shipments R E E F E R • Contracted carriers with reliable drivers who have lane-specific experience • FSMA-compliant, food-grade trailers • Temperature-controlled shipments are monitored hourly. F R E S H P R O D U C E • Large, optimized carrier network of over 1,000 partners • Qualified staff with in-depth product knowledge within the U.S. and Canada • TMS integrated with MacroPointTM and FourKites® tracking D R Y V A N • Single-source carrier partners • Manage drop-trailer pools at shippers and consignees • Reduced accessorial charges to ensure cost savings for clients
(800) 319-1115
www.BM2Freight.com
sales@bm2freight.com www.foodshippersofamerica.org |
21
TOP
Food Chain Pros to Know
2022
Innovative, Resourceful Executives Navigate through the Pandemic
Whether the COVID-19 pandemic gave supply chain professionals greater opportunities to distinguish themselves or the challenging situation simply spurred those in the industry to recognize their colleagues, Food Chain Digest received a significant number of quality nominations for this new recognition program.
22
| FOOD CHAIN DIGEST • EDITION 1 • 2022
The following individuals were selected on the basis of their food supply chain expertise and career accomplishments in the past 12-18 months. They represent shippers and providers, and various demographics, levels of expertise, and roles and responsibilities. As the following profiles show, these remarkable professionals are making great strides in their career while generating value in the supply chains of their employers, customers, and key stakeholders.
Check out the 2022 Top Food Chain “Pros to Know” Greg Ackner Vice President Sales, Capital Logistics Ackner comes with 25 years experience in the brokerage and trucking industry, with a heavy focus on the temperaturecontrolled, frozen food marketplace. Ackner has grown the company by 200 percent year-over-year and has single-handed on-boarded the major food distributors and retailers in company’s customer portfolio. Jim Becker CEO and Founder, Becker Logistics Becker founded this major 3PL within the food shipping industry in 1997, and through his leadership enabled 130 percent growth through the turbulence of the last two years. In fact, he’s led the company to achieve $100 million just last year through strong organic growth and a significant recent acquisition. “Jim makes sure every food shipment is handled with care and the path from farm to fork is as transparent and efficient as it can be,” says one associate. Joe Amici Director of Consolidation, Echo Global Logistics Amici leads Echo’s Refrigerated Consolidation division, which moves LTL orders from shipper to consignee in a hub-less model. Amici’s leadership continues to scale the refrigerated consolidation program, creating more efficiencies in day-to-day operations which lead to higher trailer utilization, products spending less time on a trailer, fewer out-of-route miles, and minimal cross-docking or points.
Oliver Bowe Senior Director, Logistics, Campbell Soup Company With more than 25 years experience in logistics, operations, and project management, Bowe currently is responsible in leading logistics (including warehousing, transportation and customer support) for Campbell’s Snack Food business. He has a proven track record of increasing profitability and achieving breakthrough customer service performance. Jill Clifford President, FreightPlus Using 30-plus years experience, Clifford drives innovative and solutions for food customers such as King Arthur Baking, Cumberland Packing, Cucina Antica, Chex Finer Foods, and Biena Snacks. Her ability to form collaborative relationships with carriers and shippers has been instrumental in the growth of FreightPlus, which was named in 20221 as one of Inc. 5000 FastestGrowing Private Companies. Don Durm Vice President, Customer Solutions, PLM Fleet With 26 years in the industry, Durm is an internationally recognized industry authority on cold chain regulatory compliance and supply chain technology. He has worked as a tireless advocate with government and industry to navigate FSMA rules and bring safe foods to the consumer. He was consulted by the Trump Administration’s “Operation Warp Speed” on the distribution of COVID19 vaccines in the U.S.
Chuck Everett Senior Director, Business Development, Red Classic A 40-plus year veteran in transportation, Everett has held numerous roles in operations, sales, and dedicated transportation throughout his career. While many customers faced strains to their supply chain and capacity during the pandemic, Red Classic has been awarded several valuable dedicated transportation contracts through Everett’s efforts that have benefited Red Classic and removed hindrances for customers. Mary Kearney Director of Business Development & Special Projects, Tucker Freight Lines Kearney started her transportation career in 1984 with Continental Grain Co., then moved into sales and pricing roles with Hirschbach, and today is Director of Business Development for Tucker Freight Lines. She has been active in FSA for more than eight years and currently is the Motor Carrier Advisor for the association. In 2019 she was the Conference Co-Chair. Marshall Kipp President & CEO, ATS (Advanced Transportation Services) Kipp’s leadership has evolved a one-truck operations to exceed $1.3 billion in sales since ATS began in 1984. Over the past 18 months capacity demands during the COVID pandemic have skyrocketed and ATS has increased its capacity. “He develops innovation, leads by example, and maintains a positive company culture that drives success,” says one associate at ATS.
www.foodshippersofamerica.org |
23
Kristy Knichel Chief Executive Officer, Knichel Logistics This fastgrowing transportation company is slated to reach more than $100 million in revenue in 2022 via Knichel’s ability to create and execute dynamic growth strategies year-over-year. Knichel has been actively involved with the Transportation Intermediaries Association to advocate for positive policy changes this past year with the introduction of legislation to allow brokers into the C-TPAT program. Rob LaFollette Vice President, Sales, Transfix Through 30 years industry experience, LaFollette leads tactical efforts to ensure Transfix continuously provides innovative, consultative solutions needed by food shippers. He has held leadership roles with XPO Logistics, Swift Transportation and U.S. Xpress. “Rob has made significant strides in deepening relationships with over 150 top food shippers,” says one associate. “His focus on diving deep into identifying areas of opportunity for shippers is what makes Rob stand out.” Russell Leo CTB, Chief Executive Officer, RLS Logistics As one of the largest family-owned cold chain 3PLs in the Northeast, Leo is expanding this business nationally through a unique acquisition strategy. He has 26 years experience in temperaturecontrolled logistics, transportation and distribution finance, and recently served on the Board of Directors for Transportation Intermediaries Association (TIA).
24
| FOOD CHAIN DIGEST • EDITION 1 • 2022
Jess Meloche Enterprise Account Manager, BM2 Freight Services Meloche works primarily with largest food and beverage customers of BM2 Freight. He single-handedly is responsible for managing nearly 20,000 shipments during his 10-year career at this transportation solutions-based freight brokerage firm. He holds a Master’s degree from Thomas More College and a Bachelor’s degree from University of Kentucky. Brian Pharaoh National Sales Executive, Big M Transportation As a certified multi-functional logistician and Lean Six Sigma Master Black Belt, Harrell manages national sales, overseeing business development growth of enterprise accounts for this freight transportation and logistics company. He produced and managed food chain engineering design and solution projects in grocery fulfillment, streamlining operational effectiveness, producing up to nine-figure cost saves benefits. Mike Regan Chief of Relationship Development and Strategic Initiatives, TranzAct Regan has been helping food shippers with freight audit and payment, reporting and TMS applications, rate negotiation and contract development since co-founding TranzAct in 1984. He has spoken at many FSA events over the years and has been a strong advocate on issues important to food shippers through leadership roles with such groups as CSCMP, NIT League, and NASSTRAC.
Nick Reasoner Chief Executive Officer, TransLoop Reasoner is a strategic leader who has scaled his company to 50-plus team members and five locations generating more than $100 million in three years. He has implemented a real-time shipment visibility platform, nationwide drop-trailer programs to address warehouse shortage problems for shippers, and programs to educate college students on the importance of U.S. supply chains. Mike Rieck Director of Sales, Gateway Logistics Rieck has 17 years of experience in the 3PL industry, with a majority of those focused on food and beverage supply chain management. He has helped to educate and mentor associates at Gateway on the importance of refrigerated freight which has in turn enabled the company to grow its refrigerated customer based by 35 percent. Debra Sanford Vice President, Sales & Pricing, Radiant Clipper With 37 years experience at Radiant Clipper, Sanford is a pioneer for women in leadership roles. She’s responsible for sales and pricing for the company’s refrigerated trailer fleet. Throughout the pandemic, she has successfully navigated through supply chain challenges and collaborates closely with railroads to get produce and other necessary products to end-consumers.
Lisa Schommer Divisional Vice President, Logistics, Bar-S Foods Company Schommer is an accomplished executive with more than 20 years experience in supply chain, logistics, and operations within high-profile consumer products companies. She has a demonstrated record of leading teams and achieving measurable results, with particular expertise in strategic planning, project management, innovation and implementation. She has held previous positions with QTrade Teas and Herbs, China Mist Brands, Inventure Foods, and The Dial Corp. Kam Sihota CEO and Founder, Kam-Way Transportation A self-taught entrepreneur, Sihota comes from a humble background who grew up in his family’s farming/trucking business. Lessons learned there led him to build this successful East Indianowned freight brokerage and assetbased network that serves the U.S. and Canadian supply chain retail and grocery markets. Kam-Way is deeply rooted in several community programs that give back. Armon Shahpar, MSSCM Commercial Lead/ Refrigerated Program, Uber Freight Shahpar leads the company’s commercial reefer program and acts as a liaison with pricing, operations, and carrier team as a voice for food shippers. Part of his role is to provide facility insights to shippers that utilize reliable, actionable data and supply chain analytics to help companies make data-driven decisions, tailor their facility operations, and improve business performance.
Ron Seifried Senior Operations Manager of Transportation, Land O’ Lakes With more than 20 years experience in transportation and logistics, Seifried is an experience manufacturing executive with a demonstrated history of working in the food production industry. Seifried currently is responsible for day-to-day operations of the Transportation Planning Group at Land O’ Lakes, one of America’s premier agribusiness and food companies. Josh Silcox Director of National Supply Chain Management, ALDI USA Silcox has more than 20 years experience in supply chain management, logistics, procurement, operations, network management and asset optimization. Currently he is leading an end-to-end supply chain transformation and build-out with ALDI. He previously held logistics positions with SpartanNash, U.S. Foods, Sysco, Ryder Supply Chain Solutions, and Quikrete. Omar Singh President, Surge Transportation With 25 years industry experience, Singh leads this transportation provider to enterprise-level food shippers for short lead-time, overflow, peak season solutions. He mentors entrepreneurs at Stanford University, speaks at conference such as BluJay, Gartner and CSCMP, serves on the board of the Transportation Intermediaries Association (TIA), and regularly speaks on media platforms such as Freightwaves TV and Road Dog Truckers Radio.
Chris Smith President Grocery, McLane Company Chris Smith is President of McLane Grocer, a $33 billion business unit providing supply chain solutions to 70,000-plus retailer locations. Previously he was Chief Supply Chain Officer for Walgreens Boots Alliance where he oversaw supply chain functions for 9,200 U.S. based Walgreens stores through 16 DCs and 9,000 warehouse employees. Madhav Srinath Managing Director, NexusLeap Srinath has deep experience solving complex supply chain problems with cuttingedge technology. Starting his career at Manhattan Associates working with multiple big-box retailers, he then founded this analytics and AI firm and now works with food distributors like Sprouts, Walmart, Albertsons, and Target to simplify massive amounts of data generated by transportation, warehousing and purchase ordering. Jamie Teets Chief Executive Officer, Transportation One Teets founded the company in 2010 with aspirations to build a wellrespected transportation brokerage supported by cutting-edge, proprietary technology. Through his vision and leadership, the selffinanced company has experienced significant year-over-year growth and has been named on the Inc. 5000 Fastest Growing Business list seven times.
www.foodshippersofamerica.org |
25
Len Tyrrell Executive Vice President, Edge Logistics
Michael Wohlwend Managing Principal, Alpine Supply Chain Solutions
Tyrrell has 20-plus years experience in supply chain management, with special expertise in negotiation, talent management, customer service, operations and freight management for customers of Edge Logistics, a freight solutions company. Tyrrell led his team to deploy initiatives that ultimately resulted in Edge to be named 2021 Carrier of the Year by Niagara Bottling.
With 30-plus years in strategic planning, warehousing, manufacturing, and supply chain systems, Wohlwend is a true advocate of the supply chain industry. He has authored many articles for trade publications, presented at industry events, served on the board of directors for the Warehouse Education Research Council (WERC), and mentors through an internship program.
Craig Weiss Senior Vice President & Chief Transformation Officer, Conagra Brands
TOP
Weiss is an experienced supply chain leader at Conagra Brands with a demonstrated history of working in the food production industry. Currently he’s in a leadership role that supports Conagra’s Planning and Logistics teams. He’s skilled in business process, food and beverage operations management and supply chain optimization.
— S I N C E
Food Chain Pros to Know
1 9 8 3 —
WORK WITH AN
EXPERIENCED EXPERIENCED
LOGISTIC BROKER IN CHALLENGING TIMES
Delivering fresh ideas deas in food logisticss LTL Refrigerated Logistics Specialist
INBOUND LOGISTICS TOP 100 “We offer tremendous flexibility, long term industry experience – since 1983 – but what really differentiates us from the rest is our people. RMX is a well-seasoned team that has decades of experience, as a broker, which translates to decades of industry relationships. We still enjoy doing business with some of our original customers, and I think that speaks volumes.” – Kelly Greenlee, President of RMX Global
CONTACT US TODAY!
• National Coverage • Cost Efficient • Express Courier Service • Cross Docking
RMXGLOBAL.COM
We Tailor Our Services To Meet Your Needs
24 • 7 • 365
www.hudsonltl.com • E-mail: info@hudsonltl.com
888-824-7365
26
• Regional Coverage • Customized Logistics • Just-In-Time Service • Warehouse Services
Toll Free: 800-247-1368 • Fax: 651-688-9501
879642_Hudson.indd 1
| FOOD CHAIN DIGEST • EDITION 1 • 2022
02/08/17 10:27 PM
CAPACITY
100,000+ partnered carriers.
EXPERIENCE 25th year of doing business.
EXPERTISE
Majority of shipping is food products.
GROWTH
130% growth last year.
Partner with a 3PL that will grow WITH YOU.
Contact us:
BeckerLogistics.com/Food 1.800.GO.BECKER Ext. 3663 Food@BeckerLogistics.com www.foodshippersofamerica.org |
27
MARKET INTELLIGENCE
Infrastructure Bill to Fortify Food Industry for the Long Run Groups from every stage of the food chain gave kudos to President Biden’s signing of the $1.2 trillion Infrastructure Investment and Jobs Act (IIJA). “The bill strengthens our food supply chain as it makes tremendous, muchneeded investments in the roads, bridges, dams, and waterways that family farmers and ranchers depend on,” says National Farmers Union President Rob Larew. Farmers, manufacturers and retailers equally recognize the link between the bill and a safe, secure, cost-effective and reliable supply chain. “The infrastructure bill is a much-needed, trillion-dollar boost to modernize our ports, roads, and highways, and as heavy users of our nation’s infrastructure, greatly welcomed by the retail industry,” says Michael Hanson, Senior Executive Vice President, Public Affairs at the Retail Industry Leaders Association (RILA).
The Consumer Brands Association views the $110 billion injection for road and bridge improvements as a long overdue, long-term investment. The bill’s $47 billion in port infrastructure and waterways allocations will provide opportunities to expand food exports. “The act invests in long-term improvements to capacity and technology at our seaports and goes a long way toward strengthening America’s competitiveness in global trade,” says Michael Dykes, D.V.M., President and CEO of the International Dairy Foods Association (IDFA). The Infrastructure Bill also will fund repairs to the inland waterways. “The Mississippi River provides a costefficient and environment-friendly way to move and export farm produce and manufactured goods — but many of the locks are older than the 50 years they were designed to last,” says Mike Steenhoek, Executive Eirector of the Soy Transportation Coalition.
IIJA also will assist in repairing the 600 different short railroad lines across the U.S. that connect many rural areas to the national railroad network. According to Chuck Baker, President of the American Short Line and Regional Railroad Association, they are typically privately owned, and expensive to operate. The bill’s $65 million dedicated to bringing 5G to 100% of the population – especially in rural areas – is another win for farmers. Food growers and manufacturers widely applauded the bill’s provisions for building America’s driver pool. IIJA creates benchmarks for attracting female drivers and a pilot project allowing 18-year-olds to drive interstate. In the big picture, retailer leaders like Hanson are pleased that the bill’s price tag won’t be funded by a corporate tax hike.
$110 BILLION
$47 BILLION
$65 MILLION
ROAD & BRIDGE IMPROVEMENTS
PORTS & WATERWAYS
HIGH-SPEED INTERNET UPGRADES
28
| FOOD CHAIN DIGEST • EDITION 1 • 2022
USING DATA SCIENCE TO IMPROVE TURN TIMES AND OPTIMIZE TEAM SIZE United States Cold Storage is leading the coldvolution by using the latest technologies to help our customers get their products to the market safely, efficiently, and consistently. Learn more about the Intelligent Appointment Scheduler that we developed in partnership with Gramener at:
uscold.com/coldvolution
MARKET INTELLIGENCE
The Future
OF TRUCK AUTOMATION IS HERE
Some people are still talking about “if and when” autonomous trucks will be part of today’s transportation landscape, while others in the transportation industry realize the time has already come. Autonomous trucks are on the roads today and more advanced models are being tested for near-future use.
Vivian Sun
30
What does it really mean to have autonomous trucks ready to do the work truck drivers have been doing for decades? “The messaging across the market is different and can leave some wondering what to believe,” points out Vivian Sun, Vice President of Business Development at TuSimple, a leader in autonomous trucking technology.
| FOOD CHAIN DIGEST • EDITION 1 • 2022
“There is a lot to know about autonomous trucks, and it starts with identifying their different levels.”
Levels of Autonomous Trucking Sun explains the levels range from 0, identified as a truck that has no automation at all and needs a human for operation, to a level 5 truck that can be operated autonomously anytime and anywhere. She says low and middle level ranges 1, 2, and 3 still need driver assistance, whereas levels 4 and 5 are when you start to see the driver taken out of the loop for decision making. She says a level 4 truck must operate under an Operational Design Domain, a geofenced area where autonomous vehicles can operate safely and reliably.
THE TRUCKING INDUSTRY, IN GENERAL, HAS AN INCREDIBLY STRONG SAFETY CULTURE, AND WE BELIEVE THAT WE CAN HELP BUILD ON THAT THROUGH PARTNERSHIPS WITH THE INDUSTRY.
The Drivers Behind Autonomous Technology Trucking companies are facing such challenges as the ongoing driver shortage, searching for ways to increase efficiency, and the aging out of the current driver population. These are areas companies hope autonomous technology can address. Operations Manager Brenda Mejia of Gatik, a leader in autonomous middlemile delivery, says the real driver
behind the push for developing more autonomous trucks is linked to customers’ needs and demands. “We've seen that exacerbated during Brenda Mejia the pandemic,” Mejia says. “Even for us ourselves, we want things cheaper, closer, and definitely faster. That's what really is driving a lot of our retail customers to move closer to the customer so that their e-commerce and their groceries are able to come closer to the end consumer and get there as soon as possible.” Frances Guo, Product Manager for Trucking for Waymo (an American autonomous driving technology development company), says one of the key drivers for her company is the mission of safety.
“There were still 1.3 million deaths worldwide due to vehicle crashes, and in the U.S. one of every seven traffic fatalities involves heavy-duty trucks,” Frances Guo Guo says. “And so there's a huge amount that we can improve upon with this through automation. The trucking industry, in general, has an incredibly strong safety culture, and we believe that we can help build on that through partnerships with the industry.”
Partnerships, Customer Focus Pushes Forward the Agenda The Director of Daimler Trucks North America’s Autonomous Cascadia Project, Joanna Buttler, says companies in the industry have to identify their own individual
©TuSimple
“I think from a realistic product development perspective, all of us are focusing on level four,” Sun says. “A lot of the supply chain problems we see on the news these days are affecting every business and even Christmas. So I think from an autonomous trucking perspective, level 4 really will be addressing some of the pain points that we are witnessing and seeing.”
www.foodshippersofamerica.org |
31
MEJIA SAYS IT WILL BE IMPORTANT FOR TRUCKING COMPANIES TO WORK TOGETHER AND LEAN ON EACH OTHER FOR SUPPORT AS AUTONOMOUS TRUCK TECHNOLOGY CONTINUES TO DEVELOP.
strengths to realize where the best partnerships can be created. She also says consistent interaction and dialogue with their fleet customers is critical for making progress with autonomous technology. “Partnering with our fleet customers and listening to them and what they really need, making sure that we're not just dabbling in the science project but that we are developing true technology that meets the needs of this industry and solves a true problem,” she says. Joanna Butler
According to Sun, TuSimple’s solution and design approach is also very focused on being customer-centric, and the company’s partnership with Navistar has helped gather essential customer insights. “We have done voice of customer in the past couple of months to connect our customer feedback with our OEM partnership so that we can design the solution and our services,” Sun says. “They're fitted to our customers’ demand and how they operate their fleet today. Our whole design philosophy is that we want it to be a very much plug-and-play solution. We don't want to be a hugely disruptive force.”
What’s Next, Really?
Reduce broken seal claims and load refusals due to seal issues. The Seal Guard™ Lock is permanently installed on the trailer door to protect seals and secure the trailer handle.
TransportSecurity.com enforcer@transportsecurity.com (800) 328 - 3442 (952) 442 - 5625
32
| FOOD CHAIN DIGEST • EDITION 1 • 2022
Mejia says it will be important for trucking companies to work together and lean on each other for support as autonomous truck technology continues to develop. Drivers will be needed, and finding the right people to join the movement will be a big challenge. She said working together as one voice will help spread the truth about the technology and help the nation be more open to its evolution. Sun also says working together will be key to see what can really be done to take autonomous trucking to the next level. “Trucking will be the first industry to commercialize the autonomous driving solution,” she says. “More investment across the value chain will help the technology be more mature as we talk about partnerships and the importance of that. Every single chain of the solution needs to be ready to be deployed of our solution and kind of enjoying the benefit of autonomy.”
TRUCKING • WORTHINGTON, MN
Refrigeration
Redefining your refrigerated shipment experience.
SPECIALISTS Our fleet of refrigerated trailers can handle your frozen and refrigerated freight at the temperature you need. State-of-the-art refrigerated trailers. Rest assured your load will be delivered by the safest, best maintained and modern equipment in the industry. In God We Trust
|
www.foodshippersofamerica.org | 33 www.smithtruckinginc.com
MARKET INTELLIGENCE
Now’s the Time to Consider Your Pallet Strategy PRESSURE FOR GREATER SUSTAINABILITY CONTINUES TO GROW. ENGINEERED WOOD PALLETS ARE PROOF: WOOD PALLETS ARE GETTING A SECOND LIFE BY BEING REDUCED TO PULP AND MOLDED INTO SINGLE-USE PALLETS. Unprecedented demand, historically high prices and short supplies have created a pallet market unlike any before, making this the right time for companies to check their pallet strategy. Renting’s looking better than ever. A pallet contract with one of the big three national rental pools (PECO, CHEP and iGPS) provides certitude. In addition to ensuring supply, renting removes recovery from manufacturers’ to-do list. With today’s high trucking costs and capacity in such high demand, not having to find and transport your pallets home is a big benefit.
Best options for buyers. Buying wooden pallets is a cost of doing business that’s become a beast lately. Recovering, repairing and redeploying can be a way to squeeze more use out of white wood pallets. Tech is helping companies get their pallets back. RM2 is one company using IoT to help food shippers track their pallets so they can be picked up efficiently.
How about pallet recycling? Partnering with a repair, recycle and reuse (3R) program is an option where manufacturers can, in effect, hire out pallet upkeep—crucial for avoiding the risk of fines and fees when pallets become worn and don’t meet from retailers’ standards. With a 3R program, manufacturers
34
| FOOD CHAIN DIGEST • EDITION 1 • 2022
collect their used pallets and then return them to the 3R company in exchange for a load of recycled pallets. Most 3R companies are local. For manufacturers with faraway customers, Repalletize, a 3R owned by CHEP, has locations across the U.S. The plastic elephant in the room. Costco will begin requiring plastic pooled pallets in 2021. For buyers, that means a price jump. Per iGPS, plastic pallets average $100 versus Bloomberg’s estimate of $15 for wood in July 2021. For renters, the disruption could be minimal. Pallet rental company, iGPS is already using plastic and PECO AND CHEP plan to have plastic options available. Retailers demand sustainability. Costco’s pallet initiative is a harbinger of industry-wide sentiments, but plastic isn’t the only solution. Purveyors of wood and plastic make valid arguments for sustainability. Responsible sourcing, lifetime use, repairability and recyclability all come into play. Pressure for greater sustainability continues to grow. Engineered wood pallets are proof: wood pallets are getting a second life by being reduced to pulp and molded into single-use pallets. The pandemic has reaffirmed that pallets move the world. Now’s the time to check which direction your strategy’s headed.
www.foodshippersofamerica.org |
35
BUYER’S GUIDE ADVERTISERS IN THIS EDITION ATS......................................................... 5
J.S. Helwig & Son................................15
RMX Global......................................... 26
Becker Logistics................................ 27
Kottke Trucking............................ 18-19
Ryder/Midwest....................................13
Bettaway.............................................. 11
Legend Transportation.................. IFC
Smith Trucking................................... 33
BM2 Freight.........................................21
Loadsmart............................................. 2
Tippman Group................................... 17
C.A.T. Global....................................... 35
Pressure Systems International.......16
Trailer Bridge......................................... 1
Catch-Up Logistics............................16
Prime Inc................................................7
Transport Security, Inc..................... 32
Continental Express......................... 35
Red Classic........................................ BC
United Facilities Inc......................... IBC
Florida Freezer....................................13
RLS Logistics.......................................14
US Cold............................................... 29
Hudson Refrigerated Logistics....... 26
For advertising information, contact Cassidy Haley | 952-442-8850 x215 | cassidy@mindshare.bz
A new look. Better content. More often. Edition 1 • 2022
All things food supply chain.
GOOD HELP IS
HARD TO FIND FOOD SHIPPERS OF AMERICA OPTION 1
HOW TO NAVIGATE THE LABOR SHORTAGE BY UNDERSTANDING GENERATIONAL DIFFERENCES
What the Infrastructure Bill Means to Food Chains
INSIDE:
TOP
Food Chain Pros to Know
How to Create a Competitive Supply Chain Advantage during Disruptive Times The Voice of the Food Shipper: Our Biggest Challenges
You now have access to more market intelligence, best practices, and industry news on critical topics ranging from capacity and volatile rates to supply chain disruption, multimodal transportation issues, technology, talent management and retention. You’ll find it all through four primary resources: • FoodShippers.org has been modernized with relevant, up-to-the-minute content through the Food Shippers Blog. Check it out online! • Food Chain Digest is our newly designed magazine available in print and digital format. Produced three times by a new publisher, MindShare Strategies, we leverage an editorial team with more than 100 years combined experience in transportation, logistics and supply chain. • Food For Thought is our new e-newsletter that features more relevant information, more often. In fact, it’s published twice a month to give you the current, timely information on the marketplace. • Social media channels provide comprehensive information designed specifically for and about food shippers. Make sure to follow us on LinkedIn (corporate page and discussion group), Facebook, Twitter, and Instagram! Make Sure We’re a Safe Sender: MindShare Strategies is the new publisher of all these channels – so make sure to add mindshare.bz to your safe sender list, along with FoodShippersOfAmerica.org.
Interested in advertising opportunities? Download a 2022 Food Shippers Media Kit at FoodShippers.org or reach out to Cassidy Haley at cassidy@mindshare.bz or 952-442-8850 x215.
36
| FOOD CHAIN DIGEST • EDITION 1 • 2022
www.FoodShippers.org
UNPRECEDENTED TIMES REQUIRE UNPRECEDENTED SERVICE
unitedfacilities.com
These are extraordinary times in the logistics industry. Supply chains are broken. Manufacturers are scrambling to meet demands. Labor is scarce with mandated annual wage hikes. Margins are disappearing. With nearly 70 years of delivering supply chain solutions, United Facilities has the people, tools and know-how to help your business succeed. Whether it’s high-velocity case picking, floor-ready display assembly, specialty kitting or other 3PL services, we have scalable solutions to fit your needs. And we can get it done for less, in our place or yours. Call us now at 866.699.7271 and learn how a logistics innovation leader can help you meet the challenges of today’s unprecedented supply chain demands.
© United Facilities 2021 www.foodshippersofamerica.org |
37
DELIVERING FOOD AND BEVERAGES FROM POINT A TO PROFIT
Born as the dedicated carrier for Coca-Cola Consolidated, the nation’s largest Coca-Cola bottler, we understand your demand planning needs. When it comes to offering reliable services food and beverage customers need, we’ve got you covered with Just-In-Time capabilities rooted in our DNA. Offering 48-state coverage (plus service to Canada), we are exactly where you need us to be. LET’S GET MOVING. O U T S TA N D I N G E X P E R I E N C E S .
T R U C K LOA D | D E D I C AT E D | LO G I S T I C S | F L E E T M A I N T E N A N C E
866.768.8809 | info@redclassic.com | www.redclassic.com |
38
| FOOD CHAIN DIGEST • EDITION 1 • 2022
