62 minute read
Food on the Move
Uber Freight
Digital Carriers Drive Efficiency
2021 started off with supply chain disruption after supply chain disruption. From the Suez Canal blockage and natural disasters to ransomware attacks and an industry-wide labor shortage, the supply chain industry is having to prove its resiliency over and over again. Access Food Logistics’ editor-in-chief Marina Mayer’s exclusive interview with Joe Shone, head of enterprise product sales at Uber Freight, as he details how partnering with digital carriers helps drive efficient fleets.
“It’s critical to prioritize and identify risks that could lead to the most impact. To achieve this, we must be able to share data, create smaller work teams and incentivize quality,” Shone says. “Navigating risk management may seem like an overwhelming task; however, taking simple steps and collaborating with suppliers and logistics providers will lead to key results. Include partners in risk management planning and work with them to develop robust SOPs that support your firm’s strategy and goals.”
Scan the QR code now to read the full interview. Finding the Right TemperatureControlled Logistics Vendor
Finding the right 3PL comes with its own set of challenges. There isn’t a complete list of 3PLs anywhere. Some firms don’t have any online presence at all. So much for the usual vetting process. Plus, choosing a 3PL with a poor track record or little experience with your product can have deleterious consequences. In this expert column, Richard Gray, president of Gray Growth Logistics, provides five questions you should ask when looking for the right 3PL partner.
Scan the QR code now to read the column in full.
Gray Growth Logistics
2022 State of the Supply Chain
Empty shelves. Unfulfilled orders. Delayed shipments. Help Wanted signs. It’s a time when the demand is high, and the supply is low. It’s a time when stockouts are prevalent, consumers panic purchase and companies reevaluate how and from where they source product. This is the state of the supply chain.
Scan the QR code now to learn more.
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How Temperature Control Systems Achieve Freshness in Food Logistics
In the wake of the pandemic, consumers now demand 24/7 temperature control systems (TCS) for safety at grocery stores, restaurants and even from last-mile delivery services. The return to college dorms, classrooms and offices should inspire a whole new system and infrastructure that guarantees privacy and safety for consumers, which is why last-mile TCS plays a vital role.
In times where online food orders reign, from birthday cakes to seafood platters, TCS becomes a fundamental aspect for the entire logistics industry to revisit.
In this expert column, Steven Sperry, founder and CEO of Minnow, explains how TCS can help advance freshness and drive a better customer experience throughout the entire supply chain.
Scan the QR code now to learn more. Checking Your LTL Boxes
The increase in rates, coupled with an increased demand for products, have forced businesses to consider other options for getting shipments where they need to go, for the right price and in the desired time. In this expert column, Andrew Welling, director of cross border services for TA Services, details why many shippers are turning to less-than-truckload (LTL) shipping methods as a creative and flexible solution to get their products into the hands of their customers on time, at a fraction of the cost.
Scan the QR code now to read the expert column.
5m3photos_Adobe_Stock_On_the_Road.5f971fe4e60c1
Ports of Long Beach and Los Angeles Delay Container Dwell Fee
Port of Long Beach The Port of Long Beach and the Port of Los Angeles announced plans to delay consideration of the “Container Dwell Fee” until Jan. 10. Since the program was announced on Oct. 25, the two ports have seen a combined decline of 35% in aging cargo on the docks.
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Traceability, Meet Technology
“The state of food safety overall is improving steadily, and exciting technology solutions are being developed to help achieve end-to-end traceability that the FDA intends to foster with its New Era of Smarter Food Safety initiative,” says Liz Sertl, senior director, community engagement, GS1 US.
Food Logistics’ editor-in-chief Marina Mayer talks with Sertl to find out why leveraging new technology to resolve supply chain issues also aids in improving track and trace, food safety and more.
Scan the QR code now to read the full interview.
HomeValet’s Smart Box Makes 27/7 Contactless Delivery Possible
HomeValet launched Smart Box, what is said to be the first-ofits-kind solution for secure, contactless 24/7 delivery eligible for Walmart InHome customers in select participating regions this January.
“By connecting consumers, retailers and couriers to a secure end-point outside consumers’ homes, we enable automated delivery of packages, groceries and other goods and reduce consumers’ time burdens of home delivery and offer convenience and freedom, avoidance of logistics issues and capture large scale efficiencies improving the home delivery experience for consumers and retailers,” says John Simms, HomeValet founder and CEO.
Scan the QR code now to learn more.
HomeValet
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Fighting the Crisis with Tech
The supply chain issues created by COVID-19 show that many companies are not fully aware of the threats that can arise to their relationships with partners as a result of large-scale international turmoil. Fortunately, many modern technologies are emerging that can significantly increase the transparency of operations throughout the supply chain and help organizations withstand such upheaval. In this expert column, Dmitri Fedorchenko, cofounder and CEO of Doft, explains how modern technologies and solutions can significantly increase the transparency of operations throughout the supply chain.
Scan the QR code now to read the expert column..
2021 was full of supply chain disruptions—from natural disasters and ransomware attacks to ships stuck at sea and a global pandemic that just won’t go away. The supply chain industry went from being upended to somewhat mended to now trying to overcome bottlenecks amid a workforce shortage.
But, it’s these supply chain disruptions that continue to pose threats to the nation’s cold food and beverage supply chains. What’s been dubbed as the “Great Resignation” has left millions of job positions vacant. The traditional supply and demand model is so upside down. And, the cost of goods on everything from ingredients to packaging continues to skyrocket.
Heading into the New Year, supply chain industry experts reveal some things the cold food and beverage industry can do right now to mitigate supply chain threats for tomorrow and beyond.
For starters, it’s important to understand that supply chain disruptions will always occur, pandemic or not, just in different ways, forms and times.
“Threats will always happen and disruptions will always occur—even in a vertically integrated supply chain where you control every single function. The fi rst half of this year will see a carryover of issues from 2021 and will be a recovery period for freight capacity, port throughputs and product supply. Once the dust settles and these constraints are alleviated—primarily due to volume slowness post holidays—2022 will see three major disruptions looming. First is labor volatility, second is infl ation and third is the West Coast port labor contracts ending July 1, 2022,” says Glenn Koepke, general manager, network collaboration, FourKites. “The labor market has impacted every wing of the supply chain from manufacturing employees, temporary labor for farmers, truck drivers, retail operations and even corporate staff. The stress put on operators will continue to push supply chains to the brink, putting operations at major risk.
“Second is infl ation. If infl ation continues to increase at major rates and spending is impacted, we will see demand numbers fl uctuate signifi cantly. Food supply chains often operate well when supply and demand remain balanced, but this will shift demand downward and put capacity in a very volatile position and impact prices for freight and logistics. Lastly are the West Coast labor contracts for the port operations. Many products come through the West Coast, such as packaging materials for food and beverage supply chains, which will force companies to look at their sourcing strategy for
The surplus of reefer containers in Asia (1.6m TEUs as of August 2021) contrasts the huge deficit in Central and South America (-970,000 TEUs). This means one in two containers is now stuck in Asia.
Rabobank
all products,” he adds.
“Specific to the cold food and beverage industries, major weather events and the changing of seasons will continue to impact the growing seasons and supply seasons for produce and perishable goods. These effects are a driving force in why grower-shipper companies are investing in real-time visibility to understand where shipments are at all times from farm to cold storage and ultimately to end customer stores. Disruptions in 2022 will be driven more by supply due to inflation, labor and union agreements,” says Koepke.
Supply chain disruptions also come in the form of imbalanced import/export.
“In addition to the continued congestion of containers at ports, the imbalanced distribution of refrigerated containers (reefers) will likely loom over the global fresh and frozen food trade in 2022,” says Xinnan Li, VP, RaboResearch F&A supply chains, Rabobank. “The gigantic surplus of reefer containers in Asia (1.6m TEUs as of August 2021) is contrasting the huge deficit in Central and South America (-970,000 TEUs). To put things in perspective, Drewry estimates the total number of reefer containers just shy of 3.5m TEUs in 2021. This means one in two containers is now stuck in Asia.” 2022 will also see continued labor constraints, impacting each stage of the food industry, from food processing to food transport and storage, Li says.
“We expect reefer rates, which have only experienced mild growth so far, to continue
Accenture to go up and food exporters may have to scramble for reefer capacity in the face of the upcoming export season,” Li adds. “On top of this, geopolitical tensions will continue to be threats to the global food and ag supply chain; political decisions may impact food trade directly and indirectly.”
What’s more is, severe weather events are projected to impact the global supply chain more in 2022 than the pandemic will, says Sara Pratley, VP of global intelligence for AlertMedia.
“With greater frequency of extreme weather events expected as a result of climate change, risks to the supply chain will also increase. There will be more damage to transportation infrastructure, more power outages and more losses to productivity, just to name a few. Furthermore, no sector will be immune,” Pratley says. “Weather, combined with the lack of modernization of U.S. transportation infrastructure, will not only disrupt ports, but [also] our ability to deliver goods and services by rail, truck and even plane. All companies will need to consider the potential impact of climate change and develop plans that adequately address how their businesses will fare in the face of unexpected and extreme weather events.”
At the same time, the supply chain and logistics sector continues to suffer from a massive shortage of supply chain workers.
“On the one hand, there is a lot of complexity involved in supply chain roles. From logistics to analytics, most organizations do not have the proper training or resources to build this type of expertise in-house. Secondly, those who outsource supply chain roles should expect an increase in costs for delivery of services, and because of the spike in demand, projects will take longer to complete,” says Peter Steinfeld, VP of safety solutions, AlertMedia. “Lastly, natural disasters won’t be the only weather disruptions facing the supply chain in 2022. With greater frequency of extreme weather events expected as a result of climate change, risks to the supply chain will also increase. There will be more damage to transportation infrastructure, more power outages and more losses to productivity just to name a few. Furthermore, no sector will be immune.”
The supply chain logjam doesn’t just impact grocery retailers and the end consumer; it also poses threats to U.S. schools and their foodservice distributors.
Adding to this complexity are the
An Accenture study revealed that 43% of survey respondents are ordering supplies earlier than previously; 43% are creating new contingency plans to limit effects; 42% are restricting supply chains and inventory management processes and 35% are double ordering.
inherent economics and formal bid structure for school business, according to Linda Mallers, CEO and president of MaetaData, formerly FarmLogix, LLC.
“As distributors continue to struggle with labor shortages, rising fuels costs and unpredictable demand and manufacturing, we are seeing skipped or partial K12 school deliveries,” says Mallers. “Some distributors are shifting their business models and relinquishing their K12 business entirely. Long term, this will undoubtedly bring permanent changes in school food supply chains, and will require more diverse sourcing and delivery relationships with less reliance on single delivery and production sources. In higher ed, there were similar, although related, supply chain challenges where students were utilizing meal delivery apps that integrated with meal cards when cafeterias were closed. This alternative campus supply chain met a need, but also created instability for distributors, increased traffi c and emissions on campuses and general congestion from the 1:1 delivery ratio of meal delivery apps that is not sustainable.”
The supply chain crisis is also presenting a domino effect of challenges that range from slowing or stoppage of production to delays in the transportation of goods.
“Early in the New Year, we may potentially see disruption stemming from how companies have reacted to and managed the supply chain crisis, as well as the continued effects of infl ation,” says Manish Sharma, CEO of operations, Accenture.
Case in point: an Accenture study revealed that 43% of survey respondents (companies) order supplies earlier than previously; 43% create new contingency plans to limit effects; 42% restrict supply chains and inventory management processes and 35% double order. That’s why implementing any kind of supply chain visibility technology is crucial to not only look beyond current disruptions, but to also leverage technology to help understand the current situation.
“One strategy that the cold food and beverage industry can continue to leverage is the implementation of digital twins to help understand the present situation and also predict the future. By creating real-world scenarios virtually, companies can not only adjust in real-time, feeding live data to the simulation, [but] they can also simulate multiple solutions to current and future disruptions,” says Sharma.
“While necessary in the short term, these pivots all vary by context and have the potential to cause disruptions in other places in the supply chain. For example, real-time data can make or break mitigation strategies when working with temperature-controlled goods. Successful companies have also reimagined their talent strategies using AI to better match skills as labor needs change. The cold food and beverage industry must do the same, leaning on AI to enhance the workforce and free up talent time to tackle other challenges,” Sharma says. “For example, grocers tend to struggle with ordering the right amount of inventory in an uncertain environment. Rather than waste food or profi t, a major grocery chain worked with Accenture to create more precise forecasts of demand using AIpowered insights. By allocating to stores more accurately, the grocer was able to reduce inventory by 30% while boosting profi ts.”
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One of the overarching threats to today’s supply chains re-
mains to be the constrained warehousing and driver/trucking shortages.
may bring some ease, all is lost if companies cannot take lessons learned from the onset of the pandemic and apply them toward mitigating supply chains for the future. That’s because experts liken 2022 to underscoring challenges in the supply chain never experienced before.
For instance, labor and union agreements could further prevent the workforce shortage gap from closing. Companies will experience a demand shock. Innovation and visibility will be further embraced but still only used as the end-all-be-all solution. And, the pressure will be on to keep product moving in a safe and efficient manner, regardless of the disruption or threat.
“While 81% of supply chain leaders agree they are facing technological change at unprecedented speed and scale, many are still constrained by aging legacy technology and working in a patchwork of digital and non-digital systems. This will be an area of increased attention in 2022, as most executives predict an increase in the need and implementation of technology and to fill in current gaps caused by the crisis,” says Sharma. “More than a third (39%) say the pandemic pushed their organizations to continued supply/ demand focus on the instability resiliency and of supplier reinvention networks. For that will example, this differ by means ensuring distributor less than 25% of and customer. a critical item’s At the same quantity passes through the same supplier- time, there is an opportunity for the supply location-port-route. Regardless of the chain as a whole to embrace innovation in size or the current state of a company’s logistical efficiency, as well as more local supply chain, leaders should be thinking and regional sourcing. Those that survived about what scaling automation to augment 2020-21 have the opportunity to thrive human talent looks like. 96% of survey if they are willing to shed prior inflexible supply chain leaders project full-scale operations, services and relationships and automation to continue to increase at a embrace the ability to be more agile.” rapid pace.” Yet, the overarching threats to today’s 2022 will also bring other issues as supply chains remains to be the constrained volume picks up and the economy recovers, warehousing and driver/trucking Mallers says. shortages.
“Even the largest companies, cafeterias “The disruptions of 2022 will likely be and distributors alike saw the benefit of similar to those faced over the past two diversifying their supply chains in 2020 years. While paper towels can be stockpiled and 2021, so we will most likely never go to avoid supply chain disruptions, that back to how things were. That being said, doesn’t work for meat, eggs and food we are also not at all certain as to what items with a fixed sell by date,” says Ahmed ‘next’ looks like, and 2022 will most likely Samnan, VP, PartnerLinQ. “The No. 1 issue entail the road to next with more than a is likely to remain constrained warehousing few potholes,” Mallers adds. “We anticipate and driver/trucking shortages. No one is
It’s important to understand that supply chain Reinhard
disruptions will always occur, pandemic or not, just in different ways, forms and times.
predicting widespread food shortages in shipping delays. But, the organizations or longer contracts as those volumes will be 2022, but narrower product shortages will best suited to survive these disruptions fulfi lled as a priority. continue to be an issue for manufacturers are ones that have detailed emergency “Data also suggests a widening gap as they struggle to meet demand, and this preparedness plans outlined ahead of time between contract and spot container rates will drive up costs, especially for retailers that address as many risks to their supply for example,” Li adds. “And lastly, be fl exible who currently lack visibility and resiliency chain as possible,” says Steinfeld. between various suppliers, customers or in their supply chain.” Furthermore, continue to make supply channels. Pandemic has shown us how
“Do your due diligence. Invest in your chain visibility a top priority. consumer consumption can dramatically supply chain to gain visibility over shift from foodservice to retail available to process and WIP. Many overnight, yet our supply chain is not companies are panic buying, trying to set up and optimized for it. This exposed get ‘something’ done without regard opportunities to improve the resiliency to the realities of the still in fl ux ‘New of our food supply chain in the face of Normal,’” says Samnan. “Continue your disruption.” planning as you would in a normal Supply chain disruptions will always year, but recognize that there is great occur, pandemic or not, just in different potential for events and repercussions ways, forms and times. Keeping supply similar to what happened in 2020-21 to “Getting rid of the ‘black box’ within chain threats at bay is critical to the future impact your supply chain again.” your supply chain allows more accurate success and recovery of today’s cold food
And, no specifi c market segment or forecasting and advanced planning. It is chains. industry will be immune from impending important to take a proactive approach Go to https://foodl.me/jc7dct to learn disruptions. From oil, gas and fuel shortages rather than a reactive one and this requires more about supply chain risks and supply to microchips and food items, “we have participation up and down your supply chain visibility. gone from a just-in-time supply chain to a chain,” says Li. “With better planning, it may culture of back orders, out-of-stocks and also be benefi cial to secure larger volumes
“The disruptions of 2022 will likely be similar to those faced over the past two years. While paper
towels can be stockpiled to avoid supply
chain disruptions, that doesn’t work for meat, eggs and food items with a fi xed sell by date” ~ Ahmed Samnan, VP, PartnerLinQ.
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WHAT IS THE DIFFERENCE BETWEEN A TRUCKING COMPANY AND A 3PL?
No matter the differences, both 3PLs and trucking companies are important parts of the cold chain.
CFI Temp-Control
Logistics is now an imperative part of retail and brand strategy, as supply chain disruptions continue to arise at the same time consumer demand pushes for faster and faster delivery times. The last mile is an exceptionally important part of this conversation, but ground transportation as a whole is something companies now take into consideration.
There are different methods of tackling ground transportation. We hear the term third-party logistics (3PL) quite a bit while the name “trucking companies” often dominates headlines. But, what is the true difference between the two and when should a company go with a 3PL vs. a trucking company?
For starters, the main difference lies with who holds the assets. 3PLs can manage the entire shipping process from warehousing to last-mile delivery, but these companies rarely hold ownership over assets such as the fl eet of trucks themselves.
“A 3PL typically is managing transportation on the shipper’s behalf, and doing so for several shippers, providing access to a deeper pool of capacity than the shipper could access on their own in most cases, and spreading out the cost of service among several clients,” says Greg Orr, president, CFI Temp-Control. “Shippers who outsource to a 3PL for cold chain transportation do it to gain management resources and expertise—this is the 3PLs core competency—and to leverage multiple sources of capacity and rates. A 3PL also typically is ‘asset light’ or non-asset based, essentially ‘renting’ trucking capacity from those who own and operate trucks. As well, the shipper may engage with a 3PL for a wider variety of supply chain services, not just transportation.
“A trucking company, on the other hand, typically
is ‘asset heavy,’ owning and operating a fl eet of assets—drivers, trucks, trailers and terminals. That’s their core business, providing the equipment, capacity and management services to execute cold chain transport from Point A to B. Providing reliable capacity and running those assets in the most optimized manner is the trucker’s core competency,” says Orr.
Technically, 3PL is not a legally defi ned entity but in actuality a broad-based term meaning outsourced logistics services, according to Ron Leibman, McCarter & English, LLP. Today, 3PLs become a more common part of the supply chain industry as companies push their logistics processes further and further while attempting to keep operation costs low.
Trucking companies, on the other hand, provide transportation via the road only using leased or owned vehicles with employees or owner-operators. There are signifi cant compliance aspects to pay attention to as a freight forwarder.
Owner-operators are a special class of independent contractors that must adhere to federal transportation law. But all truckers are responsible and have statutory liability for loss and damage to the products they transport.
Leibman explains that legally, trucking companies are known as motor carriers.
Which do I choose?
So as a shipper, which form of logistics process should you choose? Well, the answer to this question, like so much in the supply chain, is that it depends.
For shippers that want to control most of their logistics processes in-house, which many major food outlets have chosen to do recently, contracting a trucking company to handle only the ground transportation and take responsibility for the goods during physical transitions is key. But motor carriers are limited to their capacity and the size of their fl eet, while 3PLs can partner with numerous carriers and companies in addition to their own inhouse staffi ng. One important notion is the cost of in-house vs. a third-party. For instance, the cold chain market continues to exponentially grow, but owning, operating and maintaining reefer transportation units and equipment can be expensive. In this case, some
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shippers may choose to go with a 3PL that using a motor carrier. Trends in trucking and 3PLs specializes in the cold chain to help keep “In today’s market, where there are One interesting trend that will affect 3PLs healthy bottom lines. capacity shortages, one issue is availability,” is major food companies taking back their
However, this does not mean that says Leibman. “Some shippers look to logistics processes in house for greater trucking companies lack the ability to brokers as they generally have access to a quality control. For instance, in 2019, ship cold products. Motor carriers are wide range of small truckers that a shipper Chick-fil-A made waves when it brought often equipped with reefer trucks or vans might not necessarily be able to access or its distribution in house with full-service and can do a permanent quality job in the facilities. If transportation this becomes a of temperature- growing theme, sensitive it will affect products. the 3PLs as
The this directly conversation competes with surrounding their business. perishable goods transportation But, as will continue as the cold chain market approve under their compliance guidelines. disruptions and greater demand continue increases, during and after the Coronavirus Other shippers like the convenience of not to push the supply chain, logistics (COVID-19) pandemic. According to a having to find and manage a carrier base. strategies will continue to change. Shippers report from ResearchAndMarkets.com, On the other hand, direct use of truckers are likely to use both 3PLs and trucking the North American cold chain market by shippers implicates Title 49 regulations companies to find anyway possible to get reached a value of $59.1 billion in 2020 and and protections, allows for better and their products to the end destination as the is expected to grow at a CAGR of around direct knowledge into the quality of the supply chain crisis upends things. 8% from 2021-2026. The report explains trucker and its operations and personnel, It is also likely there will be that as more North American consumers provides for direct communication and continued mergers and become conscious about wellness, the avoids the insurance gaps that occur with acquisitions, as shippers will greater the increase in demand for fresh broker use. invest in 3PLs especially produce and temperature sensitive “In either case, shippers heavily weigh if they own portfolio products. service provider tracking, tracing, visibility companies that
When it comes to deciding between a and data management capabilities. In the have large trucking company and 3PL, other things cold chain, this would include in-transit, transportation to take in consideration would be the real-time temperature availability. The spends, says availability of resources and technologies. general rule, certainly for larger shippers, is Bass. Choosing a 3PL may allow shippers access that a broker is not a substitute for a motor to greater resources without having carrier, but an additive source of capacity. It to spend budgets on bringing these really is not one size fits all, and both have technologies in-house. This is especially their place,” adds Leibman. important now as the supply chain continues to experience major constraints, says Tory Bass, VP, temperature-controlled solutions, Nolan Transportation Group.
However, from legal and communication perspectives, shippers have more control and closer access to who is actually transporting their goods when
Additionally, cutting-edge forms of technology will push forward both now and in the future.
“Regarding current trends, we forecast continued technological developments in fi elds such as load tendering and tracking visibility,” Bass adds. “In addition, bots are bidding—and will continue to bid—on freight.
“Regarding future trends, autonomous vehicles will become more commonplace in the trucking industry as will the use of drone delivery,” adds Bass.
These failures push the industry to innovate and collaborate to alleviate the gaps that both the industry and consumers are now unfortunately extremely familiar with.
“I believe every aspect of the supply chain is being scrutinized due to the failures that have plagued the world during the pandemic,” says Mike Edwards, VP of sales at Sleek Technologies. “Companies will need to evaluate and alter their programs and processes drawing from new technological advancements in robotic automation and agile carrier procurement to safety stock levels and shipment methods. The world moves too fast to think long-term; shortterm incremental success driven by midterm goals is better than having to throw away a long-term plan because something happens like a pandemic.”
The driver shortage will remain one of the top disruptions in the supply chain, especially as more legacy drivers reach retirement age, younger workers lack interest in the fi eld and regulations continue to change, adds Orr. “Continued advances in truck technology, particularly engines, drive trains and trailer refrigeration systems and advanced driver-assist systems,” Orr says. “These have clear safety and environmental benefi ts, but signifi cantly increase the cost of new equipment. Poorly maintained and underinvested highway infrastructure and increased congestion, all of which make the job harder and increase driver stress. Inadequate overnight parking for drivers.
“Nevertheless, for many, the future of trucking and logistics is exciting. With capacity tight and rates climbing, fl eets are fi nally seeing consistent, strong profi tability,” says Orr.
The future for both trucking companies and 3PLs will see continued growth in the cold chain as well as technology advancements to help move the industry forward. The technology growth is likely to help with shifting disruptions like the aforementioned driver shortage. Whether you opt for a 3PL, a trucker or both, the choice is yours.
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OF THE SUPPLY CHAIN RISE TO THE OCCASION
Food Logistics reveals the winners of the 2022 Rock Stars of the Supply Chain award, which recognizes influential individuals in the industry whose achievements, hard work and vision have shaped the global cold food supply chain.
This past year put quite the strain on the cold food chain. The constant dodging and pivoting of disruptions, bottlenecks and threats continue to challenge the cold food chain.
Yet, it’s the rock stars behind the scenes and on the frontlines who make these supply chains matter.
That’s because behind every great company is an even greater leader. And, the leaders receiving this year’s Rock Stars of the Supply Chain award aren’t the exception to the rule—they are the rule. Food Logistics’ Rock Stars of the Supply Chain award recognizes the industry’s most infl uential individuals whose achievements, hard work and vision have shaped the global cold food supply chain.
Within the last 18 months or so, the cold food chain has seen a lot of rock stars rise to the occasion and answer the call for change, innovation and recovery. These rock stars developed platforms, integrated automation, led teams through disruption after disruption and helped their companies pivot and adapt.
“We turned the pandemic into an opportunity to bring our brands and our partners together in important and valuable ways that are having a positive impact on the business. This work has increased effi ciency in the processes and partnerships throughout the supply chain and restaurant business,” says Lindy Miller, senior director, quality assurance at Bloomin’ Brands, Inc., who was named the overall winner of Food Logistics’ 2022 Rock Stars of the Supply Chain award. (See page 25 for more).
Congratulations to the true rock stars of the supply chain.
Check out the standouts on page 27.
And, go to https://foodl.me/8ppbr3 to learn more about all of this year’s winners.
2022 ROCK STARS OF THE SUPPLY CHAIN:
HOW BLOOMIN’ BRANDS’ LINDY MILLER ENSURES FOOD QUALITY AND SAFETY IN FOODSERVICE
Lindy Miller, senior director, quality assurance for Bloomin Brands, was named the overall winner of Food Logistics’ 2022 Rock Star of the Supply Chain award.
Bloomin Brands Inc.
Not many people can say that getting sick from unpasteurized milk is what propelled their career in food, but Lindy Miller can.
That’s because when Miller was eight years old, she contracted salmonella poisoning from unpasteurized milk. It was that moment that ensuring the production and distribution of food quality and safety became her mission.
So, at 16 years old, she began her climb up the foodservice ladder, from server to trainer to food preparation and food manufacturing to quality assurance and new product development at Boston Market, Brinker, ConAgra Foods, Topco Associates and Burger King, where she spent nine years as director, global product innovation R&D.
“Challenges, learning and continuous optimization come with food manufacturing, supply chain and logistics,” says Miller. “Getting products from farm to fork is complex, and I thrive on fi nding solutions. No day is the same for a QA professional working in the restaurant industry, and I love that.”
In 2012, Miller joined Bloomin’ Brands (BBI) as senior director, quality assurance, where she would later leverage her manufacturing experience to establish world-class food safety and quality practices across the global organization, which consists of 77,000 team members and more than 1,450 restaurants throughout 47 states, Guam, and 20 countries.
Fast forward to today, her mission is more about food safety than ever, as she works with BBI’s network of restaurants, which include Outback Steakhouse, Fleming’s, Bonefi sh, Carrabba’s Italian Grill and Aussie Grill, to ensure food quality and safety during one of the foodservice industry’s most challenging times.
“It’s not easy being a server or an operator. I know from experience that front-of-restaurant and back-of-house jobs are demanding. Anything the supply chain and quality assurance teams can do to make their jobs easier is a priority, and that’s why preventing food shortages and ensuring food quality and safety is so important,” Miller says. That’s why Miller strives to bring stability and consistency to the table, offer guidance and set a solid foundation to minimize risk. She’s hands-on, collaborative and yet, still carries on her mission to deliver safe food each and every time. She’s nimble, solutions-minded and fully dedicated to food safety and the business. It’s these reasons as to why Food Logistics’ named Miller the overall winner of the Rock Star of the Supply Chain award.
The Rock Stars of the Supply Chain award recognizes infl uential individuals in the industry whose achievements, hard work and vision have shaped the global cold food supply chain. Food Logistics’ received close to 100 nominations for this award, but what differentiates Miller from other award winners is her ability to take an experience—such as contracting a foodborne illness—and turning it into an opportunity to help others. The same can be said for how she views the foodservice industry’s struggles in a time of supply chain crisis.
“We turned the pandemic into an opportunity to bring our brands and our partners together in important and valuable ways that are having a positive impact on the business. This work has increased effi ciency in the processes and partnerships throughout the supply chain and restaurant business,” she adds. “My team’s work, directing end-to-end quality assurance and food safety from the supply chain level all the way to the restaurant, impacts BBI operations in every corner of the globe.”
Lindy Miller, senior director, quality assurance for Bloomin’
Brands, stands outside an Outback Steakhouse in Tampa, Fla.
Bloomin Brands Inc. Lindy Miller visits an Outback Steakhouse in
Tampa, Fla.
Turning challenges into opportunities
The foodservice industry continues to take hits as a result of the Coronavirus disease
(COVID-19). Whether it’s possible mask and vaccination mandates or the surge in prices of ingredients and raw materials or the ongoing labor shortage, many of today’s restaurants struggle with how and when to pivot yet still maintain food quality and safety standards.
Under Miller’s leadership, BBI has always had a global footprint of approved suppliers. It entered the first year of the pandemic with a solid supply chain and quality assurance foundation, which allowed the organization to focus on optimization, process efficiency and simplification rather than starting from scratch and being reactive, Miller says.
“Over the course of my career, I’ve learned how important it is to build and cultivate relationships with our business partners. They are an extension of our business and are critical to our success,” says Miller.
In 2020 and 2021, BBI engaged in knowledge sharing with global peers and colleagues to discuss what works and what doesn’t, while also gaining insight into supply availability across the global BBI network.
In response, Miller and her team simplified operations, improved collaboration with supplier and network distribution partners and zeroed in on still delivering consumers’ favorite menu items. Also under Miller’s leadership, the QA staff leveraged these supplier partners as well as BBI’s worldwide restaurant team to effectively navigate the supply chain challenges of the pandemic.
Miller also led the charge to serve safe, high-quality food throughout the past year despite the supply chain challenges caused by the pandemic. The process and procedures that BBI’s supply chain and quality assurance teams had in place, including supplier approvals and cold chain management, assured farm-to-fork compliance no matter what disruptions occurred.
“Strong partnerships and processes create a better experience for guests and deliver consistency to restaurant operators so they can focus on their guests,” says Miller.
Other key tenets of her achievements include ensuring that 100% of all new food and beverage suppliers across the brands are processed via BBI’s global EQMS software system; managing substitutions, alternatives, multi-sourcing and more to remain nimble and agile and support core menu items; leveraging the strengths of each individual on the team; implementing cold chain traceability to risk-assess food and beverage categories; providing ongoing mentoring and advocating for innovation to achieve speed to market; and forming collaborative, ongoing partnerships with cross-functional teams.
Miller’s early start in foodservice also helped her gain that competitive differentiator needed to manage food safety professionals. The bottom line is that food has to be safe, no matter what.
“I am proud of the quality assurance team’s ability to be nimble and pivot quickly to find solutions, especially with the unpredictable nature of the pandemic,” Miller says. “We’ll continue to work diligently to ensure that BBI will continue to have an adequate supply of our core customer favorite products from QAapproved supplier facilities.”
“While nimbleness and agility will both be key in 2022, companies like BBI must rely on their supplier and network distribution partners to achieve success bringing goods to the restaurants. Our supply chain team works in lockstep with partners to strategize and plan for the ‘unexpected issues,’” adds Miller. “During the pandemic, we were able to draw upon our past experiences to manage shelf-life extensions as well as exceptions, not only to minimize food waste, but also to ensure food safety. This will no doubt continue into 2022 as supply chain complexities evolve.”
At the end of the day though, when all is said and done, enforcing food quality and safety becomes more challenging as the pandemic and other disruptions interfere, but a solid team and even stronger leader prove that behind every challenge lies an opportunity for growth.
“I must give credit to our entire team for all the hard work and due diligence pushing forward this past year, which proved to be even more challenging than the previous one,” Miller adds. “Their passion and resilience allowed us to handle many curveballs and find solutions to put our operators and our guests first.”
Bloomin Brands Inc.
Bloomin Brands Inc.
Lindy Miller and a team member perform a
quality assurance audit, checking salmon in a freezer, at a distribution center in Florida.
Lindy Miller (middle) stands with members of Bloomin Brands’ quality assurance and supply
chain teams as well as cattle farm and supplier personnel in Sao Paulo, Brazil.
OF THE SUPPLY CHAIN, WHO CONTINUE TO KEEP THE COLD FOOD CHAIN MOVING. OF THE SUPPLY CHAIN, WHO CONTINUE TO KEEP THE COLD FOOD CHAIN MOVING.
Below are a few standouts:
Daniel Blank
Director, Labeling & Printing, Barcoding, Inc.
As Barcoding’s director of labeling and printing, Dan Blank is a rock star in many ways. In spite of supply chain challenges, Blank has led his team to record-breaking sales, helped hundreds of organizations receive mission-critical labels and tags needed to run their business; prepared customers for long lead times; built relationships and partner networks; and spearheaded the creation of a supplies management program for companies that must have barcode supplies on hand for the year but can’t afford the long lead times and supply chain glitches. A key example is a large food/grocery company who Blank helped consolidate spend on supplies, resulting in 25-30% savings in addition to having 6 months of stock ready via Barcoding’s make-and-hold program. Another example is a fresh food delivery company new to the market and to the cold chain. With proper barcode identifi cation and standards in place, this customer was prepared to meet consumer demand and provide proper traceability.
John Ditmars
EVP, Operations, National DCP
John Ditmars, EVP of operations for National DCP, is a 30-year veteran who’s worked hard to build and continuously improve every aspect of National DCP’s efforts to serve over 10,000 Dunkin’ restaurants in the United States and distribute products to more than 40 countries. Since joining the company as a truck driver in 1992, Ditmars has been promoted to numerous management roles, including to fi eld supervisor and fl eet manager, where he spearheaded NDCP’s fi rst foray into providing liquid dairy products to Dunkin’ restaurants. He now oversees NDCP’s national safety, transportation and member services functions; all international distribution activities; and directs operations at fi ve of the nine distribution centers. He was an integral part of implementing MoveSMART Ergonomics training in all warehouses to reinforce at-work safety habits while preventing injuries. He has implemented electronic logging devices in advance of government mandates and developed an in-house training program for Class C drivers that want to transition to Class A.
Urs Gruetter
Urs Gruetter, chairman and CEO for Stoecklin Logistics, maintains focus on making intralogistics easy and cost effi cient. Gruetter acquired Stoecklin Logistik AG in 1995, and has since led the strategic development of product handling solutions for the cold chain. Recent innovations include frozen compatible cranes and deep lane power shuttles to help users safely improve throughput performance, while providing added visibility and analytical insights into internal supply chains. Gruetter is currently leading the Stoecklin team in developing new solutions that help reduce reliance on labor in favor of automation by collaborating to better understand each customers’ operating environment. The results are systems designed specifi cally for rightsizing facility automation and minimizing the labor resources required to manage it. For example, Gruetter led the strategic development of a sophisticated picking robot used by a European produce wholesaler to automatically pick goods in its distribution centers. The learnings from this project will impact fresh and chilled operators throughout the Stoecklin network.
Colman Roche
VP, E-Commerce/Retail Swisslog Americas
As VP of e-commerce and retail for Swisslog Americas, Colman Roche continuously aspires to create, provide and deliver strategic-level improvements by driving and sustaining competitive advantages and increasing customer value. As grocers scrambled during COVID-19 to keep up with the dramatic growth in online grocery shopping, Roche emerged as someone who could help grocers evaluate e-grocery fulfi llment strategies and determine which approach and automation technology were right for their unique situations. In 2021 alone, Roche’s team provided more than 8,000 consultancy hours to the world’s leading retailers and created more than 50 concepts to tackle e-commerce grocery challenges. He and his team have worked closely with numerous grocers to identify, design and install automation systems needed to meet evolving consumer needs. Roche also directed the creation of two informative e-books and eight educational videos to help grocers understand how they can enhance their fulfi llment strategies with automation. Roche’s team also helps determine which products can be handled by the automation system and which products are best picked manually.
Scan the QR code now to learn more about these and other Rock Stars winners:
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John Lert
Founder & CEO | Alert Innovation
Chetan Tandon
Chief Information Offi cer | Allen Lund Company LLC, ALC Logistics, AlchemyTMS
Jim Schmidt
North American Zone Director, Supply Chain Transformation | Anheuser-Busch InBev
Tony Hammonds
EVP, Business Strategy | Arrive Logistics
Mitch Mazzaro
Director, Strategic Accounts, Refrigerated | Arrive Logistics
Daniel Blank
Director, Labeling and Printing | Barcoding, Inc. Niti n Gupta
Co-Founder & CEO | Beans.ai
Lindy Miller
Sr. Director, Quality Assurance | Bloomin’ Brands, Inc. (BBI)
Guy Bloch
CEO, Board Member | Bringg
Mike Biwer
CEO | Cavallo
David Sours
SVP | CBRE
Jorge Rico
Chief Operating Offi cer | Charcuterie Artisans Robin Tull
Senior Manager, Specialized Logistics | Choptank Transport
Derek Richard
Director of Sales | Cimcorp Automation Ltd.
Mahesh Rajasekharan
President & CEO | Cleo
Pete Chaffi n
Director of National Accounts | Concentric
Brian Carlson
Principal | Cornerstone Edge
Joe Amici
Director of Consolidation | Echo Global Logistics
Nick Brown
Director, Technology Consulting | enVista
Don Davis
SVP, National Accounts | Fleet Advantage Andrew Whitt y
VP, Enterprise Growth | GlobalTranz
Timothy Bates
Corporate Quality Systems Director, Logistics | Golden State Foods Mariana Manole
VP, Quality, Food Safety & Regulatory, Global Liquid Products | Golden State Foods
Guilda Javaheri
Chief Technology Offi cer | Golden State Foods
Prabh Hans
VP, Domestic Services | Hillebrand
Malaina Hudson
Director, Supply Chain Services | Hillebrand North America
Molly Olson
GVP, Hy-Vee Fresh Commissary | Hy-Vee, Inc.
Pete Saldana
Engineering & Safety Manager | iGPS Logistics
Treshanda Carmickle
Director of National Account Operations | iGPS Logistics Derek Dugan
RFID & Automation Director | iGPS Logistics
Eric Weisbrod
VP of Product Management | Infi nityQS International, Inc.
Marcel Koks
Industry & Solution Strategy Director, Food & Beverage | Infor
Kristy Knichel
CEO | Knichel Logistics Inc. Jim Boutross
Director of Transportation | Koch Foods
Mark Vogt
Sales Director Automation, Körber Business Area Supply Chain | Körber
Anshu Prasad
CEO | Leaf Logistics Greg Lehmkuhl
President & CEO | Lineage Logistics
Allan Dow
President of Logility; President & CEO of American Software | Logility
Dan Waters
VP, Sales | Made4net
Brock Becker
Senior Sales & Sourcing Export Manager | Mission Produce, Inc.
John Ditmars
EVP, Operations | National DCP
Justi n Baxley
VP, Retail Product Management | PDI Software
Cristy Sinclair
Director of Food Safety | Penske Logistics Shelley Finneman
VP, Sales and Purchasing | Perishable Distributors of Iowa (PDI), a Hy-Vee subsidiary
Dana Krug
VP & GM, Food & Beverage | Phononic Jett McCandless
CEO | project44
Derrick Miller
Enterprise Solutions Manager | Raymond Corporation, The
Robin Gregg
CEO | RoadSync
Greg Price
CEO | Shipwell
Bobby Burg
SVP, Operations & Chief Supply Chain Offi cer | Southern Glazer’s Wine & Spirits
Urs Gruett er
CEO and Chairman | Stoecklin Logistics, Inc. /Stoecklin Logistik AG James Labrecque
VP, Distribution Operations | Stop and Shop
Colman Roche
VP, E-Commerce/Retail, Swisslog Americas | Swisslog
Troy Prothero
VP, Product Management, Supply Chain Solutions | Symphony RetailAI
Vince Bonhaus
VP, Sales | Taylor Logistics Inc. R. Justi n Bratnober
President & CEO | Trademark Transportation Inc.
Lily Shen
CEO | Transfi x Inc.
Bill Driegert
Co-Founder, Head of Operations | Uber Freight LLC Michael Sperber
Global Business Manager for UL’s Everclean Program | UL
Joseph Batt oe
CEO | Varcode
Curt Mastbergen
CEO | Vertical Cold Storage
Patrick Inman
Professional Driver | Werner Enterprises
Ryan Smith
VP, Automation | Westfalia Technologies
TRENDS SHAPING MATERIAL HANDLING IN 2022
With the Coronavirus disease (COVID-19) still shadowing everyday life, a great deal of uncertainty hangs over the material handling industry. Yet, the industry can’t wait for that uncertainty to clear before investing in the right technology. Here are four macro trends expected to hit in 2022 and beyond.
1. Item picking moves upstream
Centralized pallet and case warehouses begin to integrate individual item picking into their operations. This trend will be driven by the continuing evolution of the retail landscape and the move into direct-to-consumer sales by manufacturers.
On the retail front, SKU growth and smaller store formats are limiting shelf space and forcing retailers to carry less inventory per SKU. Some will be challenged to accept cases of slower moving products and push for single-item replenishment of those products. Simultaneously, manufacturers will need to support their entry into this market from their centralized warehouses by adding item handling capabilities to their facilities.
Goods-to-person technologies, such as cube-based automated storage and retrieval systems and mobile autonomous robots will find a home in warehouses that had previously only supported pallet and case handling, which has the potential to fully automate the picking process. With more advanced gripping and vision systems, newer generation robotic picking solutions are expanding the range of products that can be picked while also offering the highest operational reliability.
2. Grocery retailers crystallize MFC strategies
Demand for e-grocery services has leveled since the early days of the pandemic, but is still much higher than grocers expected. We are now seeing growing consumer expectations for faster order fulfillment.
Swisslog
The difference is that fulfillment times for online grocery orders are measured in minutes or hours rather than days as in other e-commerce applications. For large volume retailers, this has made in-store, manual fulfillment impractical in many locations. Picking in-store is inefficient, expensive and creates congestion. While a few large grocers have made the leap to automated micro-fulfillment centers (MFCs) and e-fulfillment centers (EFCs) to enable efficient order fulfillment close to customers, the majority of the market used 2021 to gain a better understanding of the complexities of e-grocery fulfillment and implement the organizational changes required to support an MFC strategy in the future.
3. Supply chain connectivity delivers inventory visibility
With the digitalization that has already occurred in warehouses and retail stores, data is readily available at each site. There is a significant market opportunity for software platforms that can connect disparate systems across a global enterprise and deliver a consolidated view of inventory and its status. These platforms will not be perfect in 2022, but easy connectivity and the creation of customer intelligence portals it enables is on its way.
4. Flexibility drives warehouse automation
Flexible and scalable robotic automation technology first gained a foothold in e-commerce fulfillment, but now we are seeing continued expansion of those systems to new applications that range from pallet handling to item picking, These solutions give warehouse operators the ability to scale throughput and inventory independently, drive higher performance with the same inventory or expand inventory without requiring higher performance.
They also offer the ability to adapt to the shape of the building where they are deployed, thus increasing distribution capacity by upgrading older warehouses or repurposing unneeded or underutilized facilities such as closed retail outlets.
New distribution strategies and technologies are required to meet the challenges of today and adapt to the unforeseen changes of the future. Go to https://foodl.me/yjxstp.
ABOUT THE AUTHOR
MARKUS SCHMIDT
president, Swisslog Americas
THE GOOD, THE BAD,
THE LAST MILE
HaulSuite
Last-mile success is becoming an uphill battle as supply chain disruptions rage on into the New Year. Shipping delays, labor shortages and low inventory continue to set the industry back. In the midst of a global pandemic, the cold chain has had to become more innovative in response to these hardships.
One such company, HaulSuite, has taken the current state of the industry as a challenge to improve old processes. HaulSuite turned to algorithms specifi cally targeting last-mile solutions for less-thantruckload (LTL) delivery. The algorithms look at more than just mileage, taking into account historic dwell times, dock conditions and different equipment types.
“There’s a huge demand spike for lastmile services, but at the same time, there is an unprecedented lack of drivers, dock workers and support staff,” Lance Healy, VP of LTL innovations, HaulSuite says. “The faster and better we can take care of the busywork and make their jobs more effi cient, then the more business they can manage on time and without damage.”
HaulSuite’s effi cient new processes have kept the company above water despite the setbacks.
“Cold food chain shippers are trying to do more with less,” Healy explains. “They struggle with lack of inventory, inventory located in the wrong place and the inventory they do have might be perishable, so they have to be the most effi cient to compete to get the products to ship to their customers on time and within budget.”
The company reduced the number of drivers needed and miles-per-stop by over 5% and route planning time by up to 50%. This created a positive domino effect all while using less resources to achieve the same number of deliveries.
“With planning time reduced, LTL carriers are gaining 2-3 hours every night to start loading trucks earlier, send out an early wave of drivers and make pick-ups earlier to keep customer promises on the fi rst mile,” Healy adds.
The time reduction has been imperative for the company as shipping delays affect the lifespan of perishable food items from supplier to shelf. HaulSuite relies on optimized technology to stay ahead of delays and track shipments. “HaulSuite can be constantly updated with changing conditions like delays, prioritization for appointments, rerouting and detailed directions through the mobile application, as well as geo-coding the exact dock location for perishable deliveries, which is often in a different area of a building than dry good deliverables,” Healy says. “This technology helps carriers make their deliveries on time and prioritizes deliveries based on customer requirements. Best of all, the system constantly learns more every time it is used. Perishables demand the least amount of time on a truck made possible by effi cient operations and the best technology.”
However, no company is able to avoid the labor shortages.
DSW Distribution Centers, Inc.’s president and CEO, Brad Thayer, faced issues with hiring “good quality employees that want to work.” Updating employee incentives, enforcing open communication and making respect an expectation in the workplace has proven to be the most successful in the company’s employment endeavors.
“We incentivize our employees with great pay, benefi ts and perks and the payoff is—they care about our customers’ KPIs,” Thayer says.
Industries across the board are implementing creative onboarding incentives to attract long-term employees. It is by recognizing employee needs and expectations that the workforce will thrive once more.
DSW Distribution Centers identifi ed another issue impacting a large portion of the last-mile sector—regulations.
“Regulatory issues are one of the biggest challenges in the USA, but especially in California,” Thayer says. “The results of many of these new regulations will be tens of thousands of lost jobs, companies closing and/or customers moving supply chain services out of state.”
As disruptions continue to, well, disrupt the supply chain, it has never been a better time to roll out unconventional operation ideas.
HaulSuite turned to algorithms specifically targeting last-mile solutions for LTL delivery.
HaulSuite Last-mile success is becoming an uphill bat-
tle as supply chain disruptions rage on into the New Year.
AUTONOMOUS TECHNOLOGY IS HERE. NOW WHAT?
Driverless vehicles are becoming more of a reality, as consumer vehicles are now equipped with innovative features such as parking assist, adaptive cruise control and many other autonomous innovations. Autonomy in vehicles is categorized in six levels, but as of May 2021, no vehicles sold in the U.S. market have a Level 3, Level 4 or Level 5 automated driving system, according to J.D. Power. Right now, all vehicles require an alert driver sitting in the driver’s seat, ready to take control at any time.
However, as the level of autonomous technology grows, that could change, especially with the ongoing labor and driver shortage and advancements in driver safety measures.
“Currently there is a severe driver shortage in the industry, and it is expected that this driver shortage would only increase over the next few years,” says Raghavender Sahdev, CEO, Nuport Robotics. “The average age of a truck driver is approximately 45 and the next generation of youth do not have any interests in becoming truck drivers.
Plus
Develop the future
Today, autonomy in much of the trucking space is still in the development stage, as numerous carriers work together to create innovative ways of developing driverless technology.
For instance, Embark works with numerous partners across different sectors, including third-party logistics (3PL) providers, to do this very thing.
“Today, 3PL autonomy and vehicle autonomy broadly are in the testing and development phase,” says Sam Abidi, head of business development at Embark. “Embark specifically is working with shipping, carrier and 3PL partners to haul goods autonomously and refine our technology to be able to work seamlessly within the operating constraints of all transportation modes - carrier hauls, shipper private fleet hauls, 3PL provisioned hauls and more.”
While autonomous technology on the road is not yet ubiquitous, broad application could be expected as early as 2024.
Florian Neuhaus, a partner in McKinsey, says that the adoption curves forecast pick up in the United States, Europe and China in 2024-2026. Additionally, the United States and China will flock to the technology the quickest due to cost of ownership forecasts, with Europe to follow suit.
“Due to automated systems, less time will be spent on decision making, such as route management, emergency response, etc.,” Sahdev says. “Some 3PL companies are using telematics and fleet optimization technologies to optimize their operations. Incorporating newer technologies, there are better response times to address any accident-related scenarios.”
Embark Autonomous trucks help optimize drive time.
Drive efficiency
lower, which means they will reach their destination faster.
“The potential of food getting spoiled is much less due to timely deliveries and better controlled operations,” Sahdev continues. “Overall autonomy would lead to lesser food waste that generally happens in current operations. An overall tracking of the state of the food can also be maintained thereby prioritizing fast delivery depending on the status of the food.
While some may be concerned that robotics and autonomous technology takes jobs from hardworking people, the driver shortage is still reality, and it is likely that no truck will ever run completely without a driver.
Shawn Kerrigan, COO and co-founder of Plus, believes that advances in autonomous trucking will only help attract new drivers rather than replace them.
“Driver shortage and high turnover rate are two of the most pressing problems facing the trucking industry,” Kerrigan says. “The average annual turnover rate for longhaul truckers at big trucking companies has been greater than 90% for decades, according to an article from NPR.”
As the cold chain approaches an autonomous future and new and exciting things happen in trucking, the industry as a whole works to be more enticing to younger drivers. In response, companies will likely look to autonomous technology to optimize performance and operations. {The original version of this article published in Food Logistics’ July 2021 issue}.
FOODSERVICE PACKAGING HAS MANY TASKS
The Coronavirus disease (COVID-19) pandemic’s impact on the restaurant industry is unmistakable. The general strategy in how foodservice and the restaurant industry operates vastly changed once the virus became a global emergency.
One of the most prevalent themes in the industry during the pandemic is the increase of takeout.
When lockdowns plagued indoor dining, many restaurants had to pivot, beefing up takeout offerings, expanding to online ordering and delivery and implementing robust digital platforms to easily communicate with customers. Many flocked to third-party delivery services as well. The increase in takeout greatly influenced foodservice packaging.
Ecofriendly
Sustainability is an important part of the foodservice takeout industry since single-use plastics are one of the top contributors to waste. So many municipalities require a reduction or ban on single-use plastics in restaurants and foodservice locations, pushing these facilities to take on compostable, biodegradable and new material-based disposables.
“Across the globe, we are seeing a growing trend towards sustainable packaging,” says Tom Lunn, group general manager of innovation and sustainability at Detpak. “Businesses are looking for foodservice packaging that is responsible by design, right through from the product inputs, designing out plastic and excess materials, to ensuring the best end of life solutions for disposal.”
Paper is a common substitute for plastic in packaging, while some providers experiment with new materials that can biodegrade the same as paper but provide longer durability. Some foodservice locations provide reusable forms of packaging for, like fast food chains using reusable tumblers and coffee mugs for beverages.
rh2010/stock.adobe.com
Food packaging takes on new trends while takeout remains a huge part of the restaurant industry.
Tamper-proof
A Future Market Insights report forecasts that the tamper-proof packaging market will grow at a CAGR of 7% to 8% by the year 2031.
A survey from the Foodservice Packaging Institute showed protective/tamper-proof properties were the second most important factor in packaging, following interest in clean and sanitary measures. However, less than 40% of those interested in tamper-proof expect to feel the same following the end of the pandemic.
Food safety
The COVID-19 virus is very unlikely to spread through food packaging, according to American Frozen Food Institute (AFFI), in partnership with North Carolina State University researchers. However, interest in food safety is still important
Earlier this year, a new biodegradable material was developed by scientists from Harvard T.H. Chan School of Public Health and Nanyang Technological University Singapore that is said to kill harmful microbes and can extend fresh produce shelf life for up to three days.
“COVID-19 has brought with it an increased focus on food safety and hygiene, a trend which continues today,” says Lunn. “This is very important to the brands we work with, as they want their customers to feel safe in their experience with their product.
Durability
The most important trend remains durability, pandemic or no pandemic.
“Food safety and sanitation has always been the cornerstone of foodservice packaging,” says Ashley Elzinga, director of sustainability and outreach at Foodservice Packaging Institute. “We have seen a lot of innovation with tamper-evident/tamper-resistant components to protect not only the consumer, but employees as well. Performance is also a big factor to keep hot foods hot, cold foods cold, spill and leak proof, etc. We have seen an expansion of offerings focused around those attributes.”
Scan the QR code now to read the rest of this article.
PREVENTING FOOD CONTAMINATION IN THE AGRICULTURAL INDUSTRY
Despite the ongoing disruption caused by the Coronavirus disease (COVID-19) pandemic, the agricultural outlook for 2022 is far more positive than it was in 2020 and 2021. Even so, familiar challenges remain for food producers and others up and down the supply chain.
Facing an old enemy
The issue of food contamination looms especially large this year, as the pandemic has amplifi ed consumer health concerns. There is a multitude of ways that toxic substances can contaminate crops, and when they do, everyone is affected.
Insects and other pests reduce global crop yields by 20-40% each year, according to U.S. Department of Agriculture data, damaging kernels and inviting contamination during the growing season. Pesticides provide an effective deterrent, preserving kernel integrity so that harvested crops are safe for consumption.
Producers that store crops after harvest will have to take additional measures to combat contamination. Storage facilities must effectively protect grain and other crops from elevated moisture and allow for suffi cient airfl ow, or they could become breeding grounds for several types of molds and fungi.
While crops are especially vulnerable during the post-harvest period, producers must be vigilant throughout the year to maintain yield quality. If adequate measures aren’t taken, contaminated products could cause serious health problems for consumers.
Less contamination, less waste
Improving food safety isn’t just a matter of consumer protection—it’s also a means for increasing producer effi ciency and mitigating fi nancial risk. When food is
Getty Images
wasted, either due to contamination or poor yield quality, producers generally pay the highest price. Even when losses occur much farther down the supply chain, farmers inevitably feel the impact, as the total monetary return for all participants is reduced.
When contaminated products sap profi ts from one supply chain participant, the entire industry suffers. Fortunately, there are ways to mitigate the many risks associated with contamination.
1. Prioritize early detection
The sooner producers identify contamination, the sooner they can mitigate the associated risks, either through removal or corrective activities. By the same token, the longer contaminated products remain in the supply chain, the greater the burden on participants.
2. Take advantage of technology
Even the most carefully managed environments can become contaminated, particularly during storage. When that happens, technology can help minimize the damage. Producers in high-income countries can use lasers and controlled gusts of air to safely exterminate bacteria, fungi and other contaminants almost immediately. Prior to the growing season, gravity-sorting machines can separate infected kernels from their healthy counterparts.
3. Test products often
Companies across the supply chain should be regularly testing the products in their care, as this is the most effective means of preserving value for themselves and all other participants. Not only does consistent testing allow for timely treatment, but it also creates trust and builds credibility.
The harvest season is nearly half completed, and so far, data suggests it’s been a good one.
By continuing to prioritize the fi ght against contamination, producers and other supply chain participants can ensure that more good seasons are ahead.
Go to https://foodl.me/fg42zn to learn more.
ABOUT THE AUTHOR
LARRY CLARKE
CEO, NanoGuard Technologies
RECOGNIZING KEY PLAYERS IN THE INDUSTRY
Food Logistics invites you to nominate a leading third-party logistics and cold storage provider for this year’s Top 3PL & Cold Storage Award.
FOOD LOGISTICS 2022 TOP 3PL & COLD STORAGE AWARD
This coveted award recognizes third-party logistics and cold storage providers that exceed the crucial demands of the cold food and beverage supply chain. Nominations will open March 28, 2022 | Nomination deadline: May 22, 2022 Winners announced in the July/August 2022 issue
AWARD RESULTS, INFORMATION AND NOMINATIONS POSTED ON
FOODLOGISTICS.COM/AWARDS
