Food Logistics March 2020 by Supply+Demand Chain/Food Logistics

THE DIGITAL SUPPLY CHAIN OF 2020

COLD STORAGE FACILITY DEVELOPMENT

ROLE OF AI & AR IN FOOD LOGISTICS

Food Logistics

Global Supply Chain Solutions for the Food and Beverage Industry

ROCK STARS OF THE SUPPLY CHAIN

CHAMPIONS Transicold Carrier’s

Eric Prieur

2020

posthumously named Champion of the Year Issue No. 214 March 2020 FoodLogistics.com

FLOG0320_1-1A_Cover.indd 1

3/6/20 11:31 AM

MEET THE 2020

OF THE FOOD SUPPLY CHAIN ROCK STARS OF THE SUPPLY CHAIN

CHAMPIONS 2020

Check out the winners from this year’s Food Logistics Champions: Rock Stars of the Supply Chain award, which proﬁles industry professionals whose expertise, vision and industry knowledge continue to drive the global food and beverage supply chain forward.

Mike R. Peterson Senior VP of Operations, Universal Chain Inc.

Jennifer De Souza Senior Director Energy Solutions & Procurement, The Raymond Corporation

Don Durm VP of Customer Solutions, PLM

Wendy Leveillee VP of Program Management, National DCP LLC

320_4 x 10.75COVERFLAP.indd 2

Gisli Herjolfsson Co-Founder and CEO, Controlant

3/6/20 11:

THE DIGITAL SUPPLY CHAIN OF 2020

COLD STORAGE FACILITY DEVELOPMENT

ROLE OF AI & AR IN FOOD LOGISTICS

Food Logistics

Global Supply Chain Solutions for the Food and Beverage Industry

ROCK STARS OF THE SUPPLY CHAIN

CHAMPIONS Transicold Carrier’s

Eric Prieur

2020

posthumously named Champion of the Year Issue No. 214 March 2020 FoodLogistics.com

FLOG0320_1-1A_Cover.indd 1

3/6/20 11:31 AM

At DSC Logistics, we combine innovative solutions, collaborative partnerships and high performance operations to unlock the potential of your supply chain. Weâ&#x20AC;&#x2122;ve joined with CJ Logistics, The Global SCM Innovator, creating

FLOG0320_2-3_TOC.indd 2

Learn more at

an integrated global network with

D S C LO G I S T I C S .C O M / S O L U T I O N S

expanded capabilities.

3/10/20 10:26 AM

ON THE MENU

March 2020 ISSUE NO. 214 COLUMNS FOR STARTERS

4 Marina Mayer, editor-in-chief,

details how today’s championsturned-superheroes keep the supply chain and logistics industry moving forward.

COOL INSIGHTS

COVER STORY

The Digital Supply Chain of 2020 Discover how digital supply chains, complete with blockchain, Internet of Things and Industry 4.0, provide visibility, from farm to fork.

SPECIAL REPORT

020 Rock Stars of 2 the Supply Chain Champions

Food Logistics posthumously names Eric Prieur, director of cold chain sustainability for Carrier Transicold & Refrigeration System, as Champion of the Year. THIRD-PARTY & REFRIGERATED LOGISTICS

ow Technology Drives H Track-and-Trace Trends in Food Logistics

Here’s how the demand for real-time visibility and technology improvements drive growth in track-and-trace options.

SECTOR REPORTS WAREHOUSING

T op Considerations for Cold Storage Facility Development

A M King details how the call for very specific, complex refrigerated spaces is necessary in order to meet the needs of today’s sophisticated consumers.

TRANSPORTATION

E LD Implementation for Food Manufacturers with Transportation Fleets

Fleet Advantage suggests fleet managers think strategically about the data needed to better manage their food distributor’s compliance, performance and drivers’ behaviors. SOFTWARE & TECHNOLOGY

T he Ever-Expanding Role of AI & AR in Food Logistics

Cerasis discusses how and why artificial intelligence and augmented reality enable success and visibility in today’s food supply chains. OCEAN PORTS & CARRIERS

H ow a Food-Focused Port Positions for the Future

The Port of Virginia explains why owners of perishable cargo need reliability, predictability, capability and capacity in their supply chains.

H ow Delay in Federal Trucker Training Impacts Trucking Industry

Advanced Training Systems LLC outlines how the delay in standardized rules for commercial trucking could impact the trucking industry. FOOD (AND MORE) FOR THOUGHT

I mplementing Traceability Programs for a Safer Supply Chain

enVista outlines how implementing a traceability program leads to a safer supply chain.

DEPARTMENTS

Supply Scan 10 Food on the Move 44 Ad Index 6

WEB EXCLUSIVES • MODEX 2020 Delivers Cutting-Edge Solutions for Supply Chain Industry www.foodlogistics.com/modex

• Study: 73% of Teams Migrating Data Workloads to the Cloud for Better Decision Making https://foodlogistics.com/21116117

• Webinar: How Food Safety Drives Cold Chain Logistics https://foodlogistics.com/21112076

www.FoodLogistics.com Published and copyrighted 2020 by AC Business Media. All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording or any information storage or retrieval system, without written permission from the publisher. Food Logistics (USPS 015-667; ISSN 1094-7450 print; ISSN 1930-7527 online) is published 10 times per year in January/February, March, April, May, June, July, August, September, October and November/December by AC Business Media, 201 N. Main Street, Fort Atkinson, WI 53538. Periodicals postage paid at Fort Atkinson, WI 53538 and additional mailing offices. POSTMASTER: Send address changes to Food Logistics, P.O. Box 3605, Northbrook, IL 60065-3605. Subscriptions: U.S., one year, $45; two years, $85; Canada & Mexico, one year, $65; two years, $120; international, one year, $95; two years, $180. All subscriptions must be paid in U.S. funds, drawn from a U.S. bank. Printed in the USA.

www.foodlogistics.com

FLOG0320_2-3_TOC.indd 3

MARCH 2020 | FOOD LOGISTICS

3/10/20 10:26 AM

FOR STARTERS

FROM THE EDITOR’S DESK

DETAILS

NOT ALL SUPERHEROES

WEAR CAPES E

ric Prieur, former director of cold chain sustainability for Carrier Transicold & Refrigeration System, was not looking for personal recognition. In fact, he simply believed in the work MARINA MAYER, that he was doing, which involved EDITOR-IN-CHIEF everything from contribution to the food industry to positions in industry organizations to oversight of academic research. Prieur was a trailblazer for global programs aimed to reduce food waste and the resultant CO2 emissions. He was one of the founding members of the Global Food Cold Chain Council (GFCCC). And, he wasn’t afraid to roll up his sleeves and go to work. It’s the champions-turned-superheroes like Prieur that keep the supply chain and logistics industry moving forward. By definition, a superhero possesses special powers to fight evil and protect the universe. Car Prieur died in a plane em rier T Syst ra n s ic o l d & R e fr ig e r a ti o n crash on March 10, 2019 while en route to Nairobi, Kenya, on behalf of Carrier, to speak on the connection between food loss/waste and climate change. While he may not have been fighting evil, per se, he was trying to protect the universe. It was these and other contributions to the food supply chain industry that posthumously earned him Food Logistics’ 2020 Champion of the Year (go to page 22 to read more).

FOOD LOGISTICS | MARCH 2020

FLOG0320_04-05_ForStarters.indd 4

Prieur is just one of the many, many champions in the industry though. You see, not all superheroes wear capes. There are many different superheroes in the world. Doctors, nurses, teachers, police, firemen, blue-collar workers, the men and women in uniform who serve our country, the list goes on. Then there’s the industry folks who work hard every day to put quality, safe, healthy, delicious food on the table for you and your families. Farmers, processors, equipment manufacturers, ingredient suppliers, packagers, cold storage providers, transportation providers, supply chain folks, incubators, investors, grocery retailers, line operators, food safety techs, design-build firms, fleet managers, port operators, distributors, warehousing, scientists, chefs, executives, energy management specialists, inventors, creators, thinkers, believers, entrepreneurs, everyone involved from farm to fork—they’re all superheroes. Sometimes superheroes don’t like to be seen or heard. To them, it’s just about the doing the right thing. It’s about being a good person. It’s about helping others in their time of need. It’s about making the planet a better place. And that’s what all of our 2020 Rock Stars of the Supply Chain do. They continue to make the world a better place (see page 24). Check out https://www.foodlogistics.com/awards to nominate yourself or your company for a future award. Actual superhero cape optional.

Published by AC BUSINESS MEDIA 201 N. Main Street, Fort Atkinson, WI 53538 (800) 538-5544 • www.ACBusinessMedia.com

WWW.FOODLOGISTICS.COM

PRINT AND DIGITAL STAFF Group Publisher Jason DeSarle Editor-in-Chief Marina Mayer mmayer@ACBusinessMedia.com Associate Editor Brielle Jaekel bjaekel@acbusinessmedia.com Web Editor Mackenna Moralez mmoralez@ACBusinessMedia.com Senior Production Manager Cindy Rusch crusch@ACBusinessMedia.com Art Director Willard Kill Audience Development Director Wendy Chady Audience Development Manager Angela Franks ADVERTISING SALES (800) 538-5544 Sales Associate Brian Hines (647) 296-5014 bhines@ACBusinessMedia.com National Automotive Sales Tom Lutzke (630) 484-8040, tlutzke@ACBusinessMedia.com CIRCULATION & SUBSCRIPTIONS P.O. Box 3605, Northbrook, IL 60065-3605 (877) 201-3915, Fax: (847)-291-4816 circ.FoodLogistics@omeda.com LIST RENTAL Jeff Moriarty, InfoGroup (518) 339-4511 jeff.moriarty@infogroup.com REPRINT SERVICES Brian Hines (647) 296-5014 bhines@ACBusinessMedia.com AC BUSINESS MEDIA Chief Executive Officer Barry Lovette Chief Financial Officer JoAnn Breuchel Chief Digital Officer Kris Heineman Group Content Director Jon Minnick Vice President, Sales & Marketing Amy Schwandt Director of Digital Operations & IT Nick Raether Director of Digital Strategy Joel Franke Published and copyrighted 2020 by AC Business Media. All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording, or any information storage or retrieval system, without written permission from the publisher.

www.foodlogistics.com

3/10/20 11:09 AM

You promised dependable distribution. We’ll help deliver. Old Dominion is on your side, offering a full range of expedited services to meet delivery challenges. With a 99+% on-time rate and #1 ranking for damage-free deliveries,* OD helps you ship with confidence—even when faced with rush shipments or day- and time-specific requests. Plus, our experienced, proactive team provides 24/7 monitoring of your shipment.

*Source: 2019 Mastio & Co. National LTL Carrier Report.

For more information, visit odfl.com or call 1-866-637-7333.

www.foodlogistics.com

FLOG0320_04-05_ForStarters.indd 5

MARCH 2020 | FOOD LOGISTICS

3/10/20 11:09 AM

SUPPLY SCAN

NEWS FROM ACROSS THE FOOD SUPPLY CHAIN Daily Updates at FoodLogistics.com

AUTOSTORE’S MICROFULFILLMENT SOLUTION REDEFINES E-COMMERCE, INSTORE CUSTOMER EXPERIENCE

NEOGEN PARTNERS WITH RIPE.IO TO BRING BLOCKCHAIN TO FOOD SAFETY, ANIMAL GENOMICS Neogen Corporation entered into a partnership with food industry blockchain pioneer Ripe Technology (ripe.io) to adapt innovative blockchain technology for use with Neogen’s food safety diagnostics and animal genomics. Blockchain is a form of digital technology that “chains” together “blocks” of information in such a way that it creates a permanent, unalterable record. In the food and livestock industries, blockchain could be used to create the history of products and animals as they go through their entire production cycles. “Blockchain has tremendous potential throughout the food and livestock industries, both to verify the authenticity of premium products, such as cage-free eggs, and enhance the traceability of issues that require correction, such as those that lead to product recalls,” says John Adent, Neogen’s chief executive officer. The blockchain technology will be initially separate from Neogen’s recently announced Neogen Analytics platform; however, when fully integrated, the company believes the two technologies can form the basis for advanced data-driven decisions for its customers.

AutoStore has redefined the e-commerce in-store customer experience with a revolutionary micro-fulfillment solution. Designed for retail in-store micro-fulfillment, AutoStore’s modular, highly-automated e-commerce in-store fulfillment solution is compact enough to be placed almost anywhere in-store, and equipped to fulfill online retail orders fast and efficiently. It can operate in the center of a store, in a backroom of a store, in a dark store or can be located in a small corner of a warehouse. “AutoStore’s micro-fulfillment solution delivers the flexibility and scalability needed for streamlining automated online retail fulfillment, which is absolutely critical to accommodate increasingly higher numbers of SKUs and seasonal spikes in ordering,” says Karl Johan Lier, president and CEO of AutoStore. “This solution gives retailers the flexibility to make more targeted decisions about where they believe automated e-commerce in-store fulfillment will be most beneficial.”

PURDUE UNIVERSITY DEVELOPS PORTABLE DEVICE TO HELP BETTER DETECT FOODBORNE ILLNESS

Purdue University

Researchers at Purdue University have been working to develop new technologies to help stop the spread of foodborne illnesses by detecting them more efficiently. This bioluminescence-based assay coupled with a portable device works with smartphones and laptops to do on-site testing for E. coli in food samples. The silicon photomultiplier (SiPM) device uses low light from the bioluminescent assay to detect the presence of bacteria that causes foodborne illness in food samples. The team also created an electrical circuit with an amplifier, comparator and micro controller to send the data to laptops and smartphones via Bluetooth technology. They also used 3D printing to design a portable cradle for the SiPM. “Our goal is to create technology and a process that allows for the cost-effective detection of the causes of foodborne illness using an easy, expedient and efficient process,” says Euiwon Bae, senior research scientist of mechanical engineering in Purdue’s College of Engineering. “This timeframe allows for better integrated detection and quicker action to stop more people from getting sick.”

FOOD LOGISTICS | MARCH 2020

FLOG0320_06-09_SupplyScan.indd 6

www.foodlogistics.com

3/6/20 12:21 PM

SUPPLY SCAN

NEWS FROM ACROSS THE FOOD SUPPLY CHAIN Daily Updates at FoodLogistics.com

RESEARCH SHOWS CALIFORNIA DAIRY FARMS REDUCING ENVIRONMENTAL FOOTPRINT

Quality Custom Distribution (QCD), part of the Golden State Foods (GSF) family of companies, has acquired four DPI (Dedicated Logistics Inc.) distribution centers in Chicago, Indianapolis, Boston, Washington, D.C.; and a satellite depot in St. Louis. This acquisition further expands QCD’s national footprint to 30 locations across the United States, including its recently relocated corporate headquarters in Frisco, Texas. “This growth enables QCD to better service all of our customers by optimizing our total distribution network throughout the United States,” says Mark Wetterau, chairman and CEO, GSF. “We will continue to build upon the relationships established by DPI in the Midwest and Northeast, as we deepen our partnership with Starbucks’ operators and suppliers in these regions.” QCD’s newly acquired U.S. facilities service an additional 2,100 Starbucks stores across 20 states.

www.foodlogistics.com

FLOG0320_06-09_SupplyScan.indd 7

ID LABEL INTRODUCES NEW ECO-FRIENDLY, LINERLESS TOTE LABELING SYSTEM

ID Label Inc. has introduced Eco Tote Renew, a new eco-friendly, linerless version of its tote labeling solution. Eco Tote Renew is a durable label holder that applies permanently to reusable warehouse containers. Its coated surface makes it easy to apply and remove barcode tracking labels. There’s no need for scraping off old labels or dealing with the error-prone mess of multiple labels stacked on each other. “The Tote Renew system with removable labels is easy for us to label and re-label our totes without destroying them or entering bad information into our inventory system,” says Curtis Walker, technical analyst with Albertsons. Eco Tote Renew tracks and manages reusable warehouse containers, eliminating the need for plastic sleeves or placards to house labels on totes and containers. It also helps extend the useful life of containers, and supports interchangeable tote usage among a network of distribution centers.

MARCH 2020 | FOOD LOGISTICS

Pexels

GOLDEN STATE FOODS ACQUIRES FIVE DISTRIBUTION LOCATIONS

getty images

New research published in the Journal of Dairy Science finds the climate footprint of milk production in California has been significantly reduced over the past 50 years (1964-2014). The amount of greenhouse gas emissions produced per unit of milk was reduced by more than 45%. Scientists at the University of California, Davis conducted a life-cycle environmental assessment (cradle to farm gate) of California dairy farm production, using the latest scientific models and international research standards. “The study documents the productivity, efficiency and overall sustainability of milk production in California and the critical role dairy cows play in regenerative agricultural practices and sustainable food systems,” says Dr. Ermias Kebreab, professor at UC Davis and Sesnon Endowed Chair. While the analysis demonstrates significant reductions in greenhouse gas emissions intensity, these estimates can be considered conservative, and does not factor in the implementation of large solar panel arrays, which has occurred on more than 150 dairy farms in California and represents a significant shift toward renewable energy.

3/6/20 12:22 PM

SUPPLY SCAN

NEWS FROM ACROSS THE FOOD SUPPLY CHAIN Daily Updates at FoodLogistics.com

The Winter 2020 issue of United Fresh’s Fresh Insights for Foodservice is now available. Sponsored by Produce Alliance, this quarterly report highlights on-trend applications for fresh produce in restaurants, at retail, in meal kits and more. The Winter 2020 issue provides insights into the latest in-season winter trends, spotlighting how burgers continue to evolve on restaurant menus, both with plant-based options and unique produce accompaniments. The On the Horizon section looks ahead to summer, showcasing the latest trends and data in hot peppers, finger limes and ice cream. “This edition of Fresh Insights for Foodservice highlights innovative ways that produce is being featured with two ever-popular foods—burgers and ice cream,” says Andrew Marshall, United Fresh’s director of foodservice and foundation partnerships. “As winter’s gray skies and cold temperatures encapsulate most of the country, watermelon radishes and kiwifruit add a pop of color and tropical flare to entice and delight diners in a variety of foodservice concepts.”

getty images

UNITED FRESH RELEASES WINTER 2020 FRESH INSIGHTS FOR FOODSERVICE

Forager, whose platform digitizes and streamlines the local food procurement process for grocers and gives them access to large independent farm networks, so that grocers and farmers can grow the U.S. local food system, announced its partnership with ReposiTrak, the market leader in supplier management and compliance for hundreds of top grocers. This joint venture seeks to maximize ReposiTrak’s MarketPlace supplier sourcing platform for retailers with Forager’s leadership, expertise and solutions set in local sourcing, as well as its expansive local food marketplace. As shown in a recent survey from Forager, local food is key to grocers’ success and a weak point for many, with 73% of respondents either “somewhat” or “not” satisfied with the quality and availability of local food at their regular grocery store. This dissatisfaction translates directly to business opportunity for grocers, with 80% of respondents stating that they are likely to change where they shop, if more local food were to be made available at a different grocery store and year-round. “The combination of ReposiTrak MarketPlace and Forager will enable food retailers to source a steady supply of local products in their stores, such as produce,” says ReposiTrak chairman and CEO Randy Fields. “Food retailers will be able to source from high-quality and independent farms in Forager’s network through MarketPlace.”

FOOD LOGISTICS | MARCH 2020

FLOG0320_06-09_SupplyScan.indd 8

getty images

FORAGER, REPOSITRAK FORM JOINT VENTURE TO IMPROVE SUPPLIER SOURCING

www.foodlogistics.com

3/6/20 12:22 PM

The idea is a Before smart warehouse

getty images

problems stack up...

The solution is a smart labeling partner

getty images

Investments in automation and WMS systems are changing the way warehouses operate. Make sure youâ&#x20AC;&#x2122;re also investing in the right barcode labels to make it all work. ID Labelâ&#x20AC;&#x2122;s custom solutions are used by thousands of manufacturers and distributors because our labels address just about any challenge you might face. Looking for color-coded rack labels that perform in cold or wet environments? Got it. Need to relabel all your locations? No worries. Want to install overhead signs that work well with long-range scanners? Done.

When We Do the Barcodes, You Can Do More

Visit idlabelinc.com or call 800-541-8506 to request samples or a quote on your next project. What a SMART idea.

FLOG0320_06-09_SupplyScan.indd 9

3/6/20 12:22 PM

FOOD ON THE MOVE

LOGISTICS TRENDS IN OUR INDUSTRY

DSC LOGISTICS, CJ LOGISTICS COMBINE AS ONE OPERATING COMPANY IN 2020

DNV GL is now accredited by ANSI to issue third-party certificates for foreign suppliers under the Food Safety Modernization Act (FSMA) regulations. Companies affected by food spoilage and lost revenue due to products being held up in customs will benefit from DNV GL’s approval for the U.S. Food and Drug Administration’s Voluntary Qualified Importer Program (VQIP). With the accreditation, DNV GL can now start delivering third-party certification to support importers and exporters. “DNV GL’s approval to The U.S. Food and Drug Administration’s third-party certification program supporting the Voluntary Qualified Importer Program (VQIP) is a major step forward for us,” says Stefano Crea, global market and industry director, DNV GL-Business Assurance. “With highly skilled food safety auditors internationally, combined with our digital tools and food industry and supply chain domain knowledge, we are ready and well prepared to serve customers globally. We believe this program is a fundamental element to support the objectives of FSMA, the FDA and U.S. consumers.” In the event the FDA collects a sample of a VQIP food import entry, FDA’s laboratories will prioritize processing of VQIP samples. The FDA will maintain a VQIP Importers Help Desk connecting importers to FDA staff dedicated to responding to questions and helping to resolve concerns.

ONE NETWORK ENTERPRISES DELIVERS ENHANCEMENTS TO GLOBAL LOGISTICS GATEWAY One Network Enterprises announced the availability of the latest version of its Global Logistics Gateway (GLG) with its integrated digital freight brokerage network, Market Maker, and real-time tracking through its telematics network. Developed in partnership with multiple customers, including a top global food and drug retailer, the solution helps organizations digitize their transportation processes and maintain a competitive advantage using the intelligent technology in One Network’s NEO platform. The Market Maker service leverages system policies where shippers can publish demand, while allowing transportation providers, digital freight matching companies and other freight marketplaces to post available capacity and rates. The service then optimally selects the best available capacity with the desired rate and service level. “Shippers using One Network to manage freight are looking to simplify their complex supply chains, and will realize great value in the efficiencies that our federated network-of-networks provides,” says Johann van der Westhuizen, vice president strategic business development from One Network. “By directly integrating real-time pricing into our transportation management system, we’ve been able to introduce another streamlined way for customers to find and book affordable, high-quality coverage. Customers will further reduce labor costs, improve supply chain predictability and reduce overall transportation costs, thanks to this real-time connectivity.”

FOOD LOGISTICS | MARCH 2020

FLOG0320_10-13_FOTM.indd 10

DSC Logistics announced that DSC Logistics, CJ Logistics USA and CJ Logistics Canada have joined together under one combined operating company named CJ Logistics America, LLC. The company will be doing business as (dba) DSC Logistics in the United States through 2020, with plans to rebrand as CJ Logistics starting in 2021. Freight Forwarding will be a division under the combined company, and the plan is to integrate Mexico operations soon as well. The company’s combined North American platform will include over 70 locations, including warehouses, transportation, freight forwarding and corporate offices, with a combined warehousing footprint of about 30 million square feet. The company’s integrated organizational structure combines leadership talent from both organizations. “One Future – One Team” was the theme of the annual meeting held at the Des Plaines, Ill., corporate headquarters. Leaders from both companies reflected on 2019 and recognized the efforts and results of the DSC-CJL team. They communicated the company’s strategic vision, key initiatives, goals and integration plans.

Ca mo int ou sev its1 Ca me Co ind

mo the er pro con ver

T P

T d

g a N e t

Unsplash.com

Pexels.com

DNV GL NAMED ACCREDITED CERTIFICATION BODY FOR FOOD SAFETY MODERNIZATION ACT

C TE A TH R

www.foodlogistics.com

3/6/20 2:16 PM

im t r E

CakeBoxx Technologies introduced its new ThermoBoxx refrigerated containers. This is the latest intermodal two-piece shipping container to come out of the McLean, Va.- based company in the last several months and follows on the heels of both its12-foot-wide hi-cube refrigerated two-piece CakeBoxx containers delivered to a U.S. government agency early last year and its purpose-built CoilBoxx rolled out to the steel and aluminum coil industry last spring. CakeBoxx Technologies designed these new models as a time-saving, cost-effective solution for the movement of temperature-sensitive cargos that would normally be difficult to load and unload through conventional reefer container doors due to their size, shape or weight. The side and top loading capability is a key differentiation from conventional containers, and provides a strong value proposition for speed of loading, product safety, security and loss prevention. The ThermoBoxx line of refrigerated containers incorporates the company’s unique two-piece deck and lid design and will initially be available in both 20- and 40-foot hi-cube versions.

be he o

s ell. n ht

al m

ng d-

TRANSFLO INTEGRATES MOBILE+ APP WITH ESPYR’S FIT TO PASS PROGRAM

Unsplash.com

CakeBoxx Technologies

CAKEBOXX TECHNOLOGIES ANNOUNCES THERMOBOXX TWO-PIECE REEFER CONTAINERS

Transflo by Pegasus Transtech is integrating with Espyr’s Fit to Pass program to reinforce healthy lifestyles for drivers and assist them in passing the DOT re-certification exam. Espyr’s Fit to Pass is a year-round coaching program designed to improve the health of professional drivers. Ninety days prior to a driver’s DOT re-certification exam, the program intensifies to help them pass the test. Fit to Pass benefits both drivers and their employers by: • Keeping drivers on the road. • Helping retain experienced, skilled drivers. • Saving on hiring and training new drivers. • Reducing driver sick days. • Increasing overall productivity. Espyr will also use Transflo as its new tech provider for the platform of the mobile app. “We’re elated to be partnering with Transflo to improve the health of professional drivers and help Transflo them protect their livelihoods by passing the DOT re-cert exam. Transflo’s customers can now sign up for Fit to Pass and give their drivers immediate and easy access to the program,” says Espyr’s chief executive officer, Rick Taweel. “We’re very excited about the partnership with Espyr and believe in the importance of adding driver health as a key component into Transflo digital ecosystem of solutions,” says Doug Schrier, vice president of product and innovation at Transflo.

www.foodlogistics.com

FLOG0320_10-13_FOTM.indd 11

MARCH 2020 | FOOD LOGISTICS

3/6/20 2:16 PM

FOOD ON THE MOVE

LOGISTICS TRENDS IN OUR INDUSTRY

ATRACK IINTEGRATES BLUETOOTH SENSORS

PH TO

Ph ter app of

ATrack Technology’s AK11, AK7V, AX11 and AS11 have integrated with Bluetooth sensors that are compliant with iBeacon, EddyStoneUID and ELA Innovation protocols. The integrations aim to meet diverse application needs, such as cold chain solutions, equipment monitoring etc. ATrack has been striving for wireless sensors integration, which allows different applications to be used. While its existing products can already fulﬁll most common requirements in the market, there are always projects that require specialized features.

int cap the

Atrak

istr Blu

CHIQUITA COMPLETES TRANS-ATLANTIC SHIPMENTS USING CARRIER TRANSICOLD’S NEW EVERFRESH TECHNOLOGY

FOOD LOGISTICS | MARCH 2020

FLOG0320_10-13_FOTM.indd 12

ﬁg and cou com Jr., cha

Pexels

Chiquita completed live cargo shipments of fully loaded containers of bananas from Panama to the Netherlands using Carrier Transicold’s EverFRESH active controlled atmosphere system. “Through multiple trials, the EverFRESH system delivered on its promise to create a controlled atmosphere balance that could be sustained throughout the voyage,” says Stefano Di Paolo, president, Great White Fleet, Chiquita. “The speed at which the EverFRESH system reduced oxygen levels to slow ripening and its ability to maintain high humidity were impressive.” Chiquita shipped bananas using 40-foot, high-cube containers equipped with Carrier Transicold PrimeLINE refrigeration units. The EverFRESH systems were programmed to maintain oxygen levels at 5% and carbon dioxide at 4%. Temperature, gas and humidity concentrations were monitored continuously throughout the 17-day shipments. Significantly, the containers used in the shipments were not new and had some degree of air leakage due to normal wear and tear, making them more representative of typical containers used throughout the global fleet. Positive pressures generated by the EverFRESH system helped offset issues related to leakage from the existing containers. “In the shipments, container humidity levels were maintained as high as 90%, a feat other active atmosphere control systems can struggle with, which can potentially lead to a loss of fruit moisture content. We are pleased to have had the opportunity to work with Chiquita on this trial, successfully demonstrating the EverFRESH system’s ability to protect and preserve their valuable cargo en route to consumers in Europe,” says Jim Taeckens, senior product manager, Global Container Refrigeration, Carrier Transicold. Introduced in November 2019, Carrier Transicold’s new EverFRESH system builds on the first generation EverFRESH system introduced 25 years ago. Today’s EverFRESH system continues to help preserve the quality of perishables beyond what refrigeration alone can do by actively managing oxygen and carbon dioxide levels to slow respiration and the natural ripening of the commodity inside.

fac Sta Tex tal glo po ven

www.foodlogistics.com

3/6/20 2:16 PM

FOOD ON THE MOVE

Phillips 66 and Trafigura Group pte. Ltd formed a 50/50 joint venture called Bluewater Texas Terminal LLC to build an offshore deepwater port project consisting of up to two single point mooring (SPM) buoys. The Bluewater Texas SPM project will be strategically located approximately 21 miles offshore from the Port of Corpus Christi in deepwater to allow for the safe and environmentally responsible loading of crude tankers, including Very Large Crude Carriers or “VLCCs.” Trafigura is a physical commodity trading and logistics company, and is one of the Port of Corpus Christi’s largest users of its facilities. Phillips 66 is an experienced operator of SPMs, having operated such a facility in the United Kingdom since the early 1970s. “We salute Phillips 66 and Trafigura for agreeing to partner in a single point mooring export facility, and for recognizing the port as an integral part of the success of this ambitious yet much needed capability,” says Sean Strawbridge, chief executive officer for the Port of Corpus Christi. Phillips 66 submitted its application to Maritime Administration (MARAD) for a Deepwater Port License under the Bluewater Texas franchise in mid-2019. The Port of Corpus Christi, a public agency dedicated to facilitating safe, responsible navigation commerce for the State of Texas, will work in close collaboration with Bluewater Texas and its representatives to support this environmentally sustainable infrastructure for the export of crude oil to global markets while benefitting the regional economy. The port intends to lease land and rights-of-way in support of the venture. “The Port of Corpus Christi welcomes Phillips 66 and Trafigura. This project is indicative of the need for additional U.S. and Texas energy export infrastructure, and we couldn’t be more thrilled by these two reputable companies joining forces,” says Charles Zahn, Jr., Port of Corpus Christi authority commission AXIONLOG TO MOVE ALL U.S. EXPORTS TO chairman. LATIN AMERICA THROUGH JAXPORT Global restaurant supplier Axionlog selected the Jacksonville Port Authority (JAXPORT) as the port of choice to ship all of its U.S. manufactured exports bound for Latin America. Axionlog uses advanced technology, including live cargo tracking, to plan, implement and control the door-to-door logistics processes for more than 30 restaurants in eight countries, including Argentina, Chile, Uruguay, Colombia, Peru, and more. Axionlog also broke ground on a new $15 million refrigerated and dry storage facility near the port’s Blount Island Marine Terminal. Scheduled to open by early 2021, the 38,000-square-foot facility is expected to expand to 100,000 square feet and create 60 jobs within five years. The distribution center will be used to consolidate, sort and store products to be exported through JAXPORT. In addition to exports, the company also has plans to begin importing products through JAXPORT for domestic distribution by 2022. “In the restaurant industry, supply chain efficiency and dependability are a must,” says Axionlog chief operating officer Alvaro Carretero. “Jacksonville provides the location, connections and services we need to provide on-time delivery for the customers who depend on us to get their product where it needs to go quickly and efficiently.” “We are thrilled to have Jacksonville be the home base for Axionlog’s new distribution center,” says JAXPORT chief executive officer Eric Green. “JAXPORT offers tremendous advantages for time-sensitive cargo, including freedom of movement in the shipping channel and competitive truck turn times to facilitate the efficiency that today’s industry demands.”

Pexels

gle

JAXPORT

Pexels

Atrak

PHILLIPS 66, TRAFIGURA AND PORT OF CORPUS CHRISTI PARTNER TO BUILD OFFSHORE SINGLE POINT MOORING FACILITY

LOGISTICS TRENDS IN OUR INDUSTRY

www.foodlogistics.com

FLOG0320_10-13_FOTM.indd 13

MARCH 2020 | FOOD LOGISTICS

3/6/20 2:16 PM

COOL INSIGHTS

BY MARINA MAYER, EDITOR-IN-CHIEF

HOW DELAY IN FEDERAL TRUCKER TRAINING

IMPACTS TRUCKING INDUSTRY

ast year, a spokesperson from the United States Department of Transportation announced that the federal trucker training standards will be facing a two-year delay, much to the dismay of the sector. This set of standardized rules—which was expected to take effect in February—is for entry-level training for commercial truck drivers. While discussions about federal truck driver training regulations have been going on for decades, the current—and now delayed— regulations will restrict training of entry-level drivers to only training providers registered with The Federal Motor Carrier Safety Administration (FMCSA), Washington, D.C. The delay will also enable FMCSA to track the success and failure of training providers, and remove trainers with substandard performance from the register, denying them the right to continue training new drivers. “This is a setback for the whole industry,” says John Kearney, chief executive officer of Advanced Training Systems LLC, St. Petersburg, Fla. “Trucking is facing both a declining safety record—over a 10-year period there was a 12% increase in the yearly number of people killed in large-truck crashes—as well as an increasingly drastic driver shortage. We are in need of efficient standards for entry-level truck driver training, and we need the government’s help to do it.” The training needs to be a comprehensive program that combines classroom training, computer-based training, adaptive virtual reality simulator training and over-theroad training.

FOOD LOGISTICS | MARCH 2020

FLOG0320_14-15_COOLINSIGHTS.indd 14

“Not every trucking company is poised to be able to afford the initial investment in the additional layers of training,” Kearney adds. “There are some companies who fly ‘under the radar’ to avoid extra cost, and these groups would oppose additional training requirements.” The delay in a comprehensive training program also poses harm to those companies putting new drivers on the road. “The new adaptive simulator training modules train drivers to anticipate actions when negative situations of weather, mechanical failure and accident avoidance present themselves,” adds Kearney.

comprehensive training to properly train drivers.”

Importance of standardized rules Traditionally, driving schools needed approval from particular states or jurisdictions in order to carry out certain programs. However, training programs were often found to be insufficient and too short, says Kearney. “While some student drivers passed the test, it didn’t mean that they were good drivers,” he adds. “New standardized rules require a driving school to issue a certificate from the government indicating

Advanced Training Systems LLC

Find out how this delay presents a burden to trucking companies who operate their own training programs.

While discussions about federal truck driver training regulations have been going on for decades, the now delayed regulations will restrict training of entry-level drivers to only training providers registered with FMCSA.

“It is not sufficient just to have tests and look for an accident rate to improve. We need to improve on the system with the use of advanced techniques of training. The old methods of classroom, computer-based training and over-the-road are necessary, but there are aspects of driving and safety that can’t be taught without simulation training. We must include simulators in the

that the individual has had the full training and passed the course.” Eventually, the burden will be on trucking companies that operate their own training programs and CDL schools to supply comprehensive training. “For the most part, the delay is sad because we won’t have safer drivers on the road,” says Kearney.

www.foodlogistics.com

3/10/20 9:15 AM

rly

WHATEVER YOU’RE COOKING, RELIABILITY IS OUR MAIN INGREDIENT. Hungry for a carrier that offers more worry-free shipping options? Visible offers a complete smorgasbord:

• Dry, refrigerated and frozen LTL and TL. • Temperature safety certified controlled management, and fully FSMA compliant, for every load, from food to hazardous materials.

a e

• Proprietary technology that tracks your shipments down to the last french fry, 24/7/365, right from order to delivery. Around-the-clock service. In addition to being able to track shipments and costs in real time through your Visible dashboard—you also have direct access to real human beings, at any moment, day or night.

Advanced Training Systems LLC

Get the shipping options you need. Call us today!

800.570.7827 | VisibleSCM.com

ad s

FLOG0320_14-15_COOLINSIGHTS.indd 15

3/6/20 12:23 PM

COVER STORY

Discover how digital supply chains provide complete visibility, from farm to fork.

THE DIGITAL SUPPLY CHAIN OF 2020

hen it comes to adopting a digital supply chain network, one thing is certain—no company wants to be the weakest link. Being the weakest link opens the doors to cyberattacks, fraud, employee risk and more. No more traditional pen and paper supply chains. Today, companies want real-time tracking, with visibility, traceability and reassurance that product is moving from Point A to Point B and then to Point C in a safe and efficient manner. Enter the Digital Supply Chain. From artificial intelligence (AI), blockchain and Internet of Things

FOOD LOGISTICS | MARCH 2020

FLOG0320_16-21_CoverStory.indd 16

BY MARINA MAYER, EDITOR-IN-CHIEF

(IoT) to automation, robotics and Industry 4.0, the digital supply chain encompasses the transport of goods via electronic means. “Digital supply chain is the next-generation concept to optimize the existing value chain with low cost and labor to meet the end customer’s expectation in terms of timeline and experiences,” says Sunny Mittal, consulting specialist, LogisticsIQ, Delhi, India. “It has to be conceptualized, designed and implemented with the help of emerging technologies like IoT, artificial intelligence, 3D printing, augmented and virtual

reality, robotics and automation (AGV, AMR, AS/RS), 5G, digital twin, driverless vehicles, drones, etc.”

www.foodlogistics.com

3/10/20 10:18 AM

I sIQ is e

win,

In a study published by LogisticsIQ, the digital supply chain market is expected to reach $75-plus billion

www.foodlogistics.com

FLOG0320_16-21_CoverStory.indd 17

by 2030, with technologies such as big data, AI and blockchain being the major drivers of growth. Plus, the demand for greater visibility and transparency in the supply chain leads companies to adopt a digital supply chain in order to achieve accurate asset tracking, improve inventory management, enhance predictive maintenance and establish a demand-driven network. “E-commerce has become the biggest supply chain disruptor; 65% of respondents believe e-commerce will have a significant impact on their future transportation strategy,” says Mittal. “Meanwhile, 29% of

respondents believe e-commerce is the trend with the greatest impact on their transportation strategy today. Growth of e-commerce has led to increase in demand of motor carriers, 3PL, air freight and freight forwarding services.” Digitization is also an important facet to the global supply chain because it can fill massive gaps with IoT and other technologies, says Al Tama, vice president and general manager of container and port solutions, ORBCOMM, Rochelle Park, N.J. “A good example of that is seen in ocean shipping, where unlike in over-the-road or rail and

 A LogisticsIQ study shows the digital supply chain market to reach $75-plus billion by 2030, with technologies such as big data, AI and blockchain being the major drivers of growth.

MARCH 2020 | FOOD LOGISTICS

3/10/20 10:19 AM

COVER STORY

continued

intermodal operations, visibility into and management of refrigerated containers can be out of your ORBCOMM’s control for weeks or longer,” says VesselConnect enables Tama. “For a digital supply chain local and remote to work, there can be no gaps. management and control of refrigerated From my vantage point, IoT solucontainers on board a tions provide the gap fillers. It’s sea vessel. the door sensors, temperature monitoring systems and container tracking devices that are filling the gaps that allow for a true endto-end digital supply chain. Look at it like farm to fork. You can’t call it farm to fork unless you know the entire path the food took before arriving at your table. Digital supply chain is the same way. You can’t call it a digital supply chain unless you have complete visibility across the whole chain. From start to finish.” That’s why ORBCOMM developed VesselConnect, which enables local and remote management and control of refrigerated containers on board a sea vessel. This solution helps ensure cargo integrity and reduces operating costs by allowing crews to locally monitor temperature, humidity, location and slot position, reefer status and more. VesselConnect can also be synchronized through the cloud for remote land-based access, and virtually eliminates the need for manual checks, enhancing efficiency and minimizing risks to crew, especially in inclement weather.

FOOD LOGISTICS | MARCH 2020

FLOG0320_16-21_CoverStory.indd 18

Meanwhile, there’s an increasing more.” demand for accurate, real-time The other benefit to implementdata. ing a digital supply chain is being “For example, cusable to optimize inventory levels. tomers—whether “Key to this is being able to better consumers or B2B plan for ‘long-tail’ items with lumpy, customers—used variable demand patterns,” says Dato be willing to vid Barton, general manager, North accept delivery America for ToolsGroup, Boston. times that were Many companies also report being vague or inaccuable to free up planner capacity to rate. Now, they want do more interesting and valuable to know exactly ‘human’ work and a general imwhen their products provement in planner morale. are arriving; some Likewise, a digital supply chain is retailers demand decapable of supporting the broader livery ETA accuracy of 30 digital business. minutes or less, and will fine suppli“For example, in retail where ers if they fail to hit their assigned digital has made omnichannel posdelivery windows,” says William sible, the supply chain must manage Salter, chief executive officer of demand from online as well as from Paragon Software Systems, Dallas. physical stores. In a heavy truck “Food distributors need to meet the where equipment is now monitored demand for shorter lead times and using IoT, the supply chain must provide a better service experiuse that data to predict demand ence for their for spare parts and customers.” service. In both of At its core, these industries, the the digital fulfillment operation supply chain is must be sufficiently need to meet about drivagile to ship single the demand for ing dramatic orders within shorter performance lead times,” says improvements Burkett, reand provide Mike and providing search vice president a better transparency distinguished analyst and efficiency for Gartner, Inc., for improvements Conn. their customers. across the What’s more is, entire business the digital supply in order to meet the demands of chain uses AI, IoT, cloud autonotoday’s modern customer. mous machines and other digital “It’s a complete integration of technologies to improve supply the disparate parts of a business to chain visibility, predict demand or provide transparency and efficiensupply disruptions and improve the cy improvements across the entire speed and cost-effectiveness of the business,” says Greg Balestrieri, supply chain. co-founder and CEO of Green Some companies have gone as Rabbit, Braintree, Mass. “The digital far as implementing a supply chain supply chain entails the use of digital twin (SCDT), which can be advanced technologies to optimize part of or an extension to an existtraditional supply chain processing supply chain planning system es. This includes sensors and IoT, of record that sits at the heart of advanced analytics on big data, any planning platform, according robotics to automate processes and to Henry Canitz, director product

Food “ distributors

shorter lead times service experience

”

www.foodlogistics.com

3/6/20 1:51 PM

ter py, Dath

North America eats what we deliver.

g o

From salmon to crab legs, our dependability gets them there.

is r

sge m

he on y

ter

ent yst

he he

The Utility 3000R® is designed to deliver the highest level of thermal performance, with its 360 degree continuous envelope of foam throughout the entire trailer. We continue to elevate the meaning of standard. Equipped with our 20K high-wear, light weight ﬂoor, Bendix® TABS-6™ trailer roll stability, standard Utility Side Skirt and optional Utility Aerodynamic Tail, the 3000R delivers long-term quality and optimized fuel-eﬃciency.

Find a dealer at www.UtilityTrailer.com

20K aluminum duct floor system

Bendix® TABS-6™ trailer roll stability

Foam-in-place insulation

FLOG0320_16-21_CoverStory.indd 19

3/10/20 3:24 PM

continued

marketing and industry strategy for Atlanta-based Logility. “Using a dynamic SCDT to visualize the state of your supply chain is a powerful way to monitor and analyze your supply chain operations,” he adds. “An SCDT contains up-to-date information on capacities and transactions. As new events take place, for example, a new customer order or a delayed replenishment, we can utilize AI to quickly Paragon Software Systems’ electronic determine an optimal proof-of-delivery response. Depending on systems give nextthe action to be taken, level visibility detail the system can involve on drivers’ handheld a planner or execute devices. on its own. Continuous planning and optimal response capabilities often lead to reductions in costs (manufacturing, inventory, transportation) and improvements in customer service (ﬁll-rates, cycle-times).”

The downfall of going digital While the impact of digital supply chains continues to create excitement in the industry, it also presents confusion. For instance, a 2017 Gartner survey revealed that 75% reported concerns about the governance of digital projects, and 36% of supply chain organizations say their own digital projects don’t align to them. A more recent Gartner study revealed that 80% of supply chain blockchain initiatives will remain at a proof-of-concept or pilot stage through 2022. “We see some supply chain lead Using a dynamic ers get enamored by the technology supply chain digital and lose sight of how it applies to twin to visualize the state of a supply the supply chain operating model,” chain is a way to says Burkett. “The maturity of some monitor and analyze a company’s supply chain of these digital technologies is still early and emerging. Blockchain, for operations.

FOOD LOGISTICS | MARCH 2020

FLOG0320_16-21_CoverStory.indd 20

example, is still very much in the experimental and piloting stages with few deployments at scale. We see some supply chain leaders pursue a blockchain initiative to solve supply chain challenges that could be better done with more mature cloud visibility platforms.” Despite its connotation, a digital supply chain isn’t just about technology, says Barton. “Building and running an effective digital supply chain is a transformation that applies equally to people, processes and tools. At its heart, there should be an advanced planning engine capable of modeling a supply chain, factoring in a wide range of internal and external variables and making optimal recommendations for inventory safety stock levels, replenishment and other planning decisions. These systems typically use advanced algorithms and/or machine learning to detect trends, outliers and make complex trade-offs,” he adds. “Since digital supply chains are highly automated and intelligent, the people involved in planning are liberated from having to pore over spreadsheets, carry out repetitive manual tasks and ﬁreﬁghting. Also, more people can be involved in digital supply chains, including external partners and even customers. Blockchain is a key technology that provides role-based data security and access to really enable this.” Likewise, automation doesn’t

automatically lead to best practices. “For example, using electronic job management software to manage the collection of empty trays and other assets ensures items like this can be tracked accurately, minimizing losses. Collections can also be scheduled into normal delivery operations to reduce empty running and cut the costs and carbon emissions associated with truck miles,” says Salter. “A digital supply chain provides vastly improved levels of visibility and control, but this is heavily dependent on the accuracy of the organization’s data and the degree of integration achieved.” Plus, implementing a digital supply chain takes time, resources and extensive training. It’s not a simple quick fix-and-run decision. “It takes time to learn to trust the tool,” says Barton. “This is one of the main reasons some hesitate to implement a modern planning tool.” A new study by ToolsGroup and Spinnaker, Troy, Ohio, found that only 7% of companies are reaping the benefits of digital transformation of supply chain planning. Fear of change is the leading obstacle to implementation of digital planning (30%), with data quality/ lack of data (25%), aversion to risk (24%) and people/skills deficits (23%) close behind. “Faced with so much complexity and uncertainty, companies are feeling the pressure to transform to digital supply chains. Advanced,

+ Wh

Tools

au act cha ind wh cos cos tha

Logility

Paragon Software Systems

COVER STORY

www.foodlogistics.com

3/6/20 1:51 PM

es. ob e

It’s realized from top down, start to finish. And, when implemented properly, it can lay the foundation for continuous planning. “Digitization is not the final step,” says Canitz. “Rather it is the first step in the next evolution of supply chain planning. Digitization provides the means for immense leaps in supply chain efficiency and effectiveness that can drive cost reductions, open up new market opportunities, reduce supply chain risk and enable huge improvements in customer service capabilities.”

+ What obstacles stand in the way of implementing your supply chain digital transformation plans? Fear of change

30%

Data quality / lack of data

25%

Risk aversion

24%

People / skills deficits

23%

Rigid technology infrastructure

22%

Disconnect between IT and business

20%

No sense of urgency

18%

Focus on cost cutting over investment to drive business objectives

18%

Lack of investment / digital transformation is viewed as a cost an not an investment Cannot prove the business case (ROI)

15%

Nothing is holding our organization back

11%

o y ng s”

Obsession with a “big-bang” change

ToolsGroup

pd e

automated planning systems can actually help companies thrive on chaos, enabling them to achieve industry-beating service levels while reducing inventory, logistics costs and obsolescence/waste costs,” says Barton. “I would argue that it’s the radical changes in the

o ol.” d

13%

food and beverage industry that are affecting, or indeed driving, the need for supply chain digitization rather than the other way around. Regardless, digitizing a supply chain extends beyond just the supply chain itself. It involves the people, processes and technologies.

A ToolsGroup study revealed 30% of survey respondents are slow to adopt digital supply chains due to fear of change, while 24% blame risk aversion and 25% cite lack of data.

Are your food temperature records compliant or do they look like the chart below?

SAMPLE ROUTE GRAPH OF COOLER COMPARTMENT TEMPERATURE – APPLIED IN PALLET.

DISTRACTING AND NOT REFLECTIVE OF PRODUCT TEMPERATURE

Ensure compliance at every step with product level monitoring using the Cooltrax Wireless Probe.

Logility

cooltrax.com | info.us@cooltrax.com

www.foodlogistics.com

FLOG0320_16-21_CoverStory.indd 21

MARCH 2020 | FOOD LOGISTICS

3/6/20 1:51 PM

2020 CHAMPIONS AWARD

BY MACKENNA MORALEZ, WEB EDITOR

REMEMBERING ROCK STARS OF THE SUPPLY CHAIN

CHAMPIONS 2020

FOOD LOGISTICS’ 2020 CHAMPION OF THE YEAR

Carrier Transicold & Refrigeration System

FOOD LOGISTICS | MARCH 2020

FLOG0320_22-27_2020Champions (2).indd 22

ric Prieur, Carrier Transicold & Refrigeration System’s former director of cold chain sustainability, was not looking for personal recognition. In fact, Jon Shaw, director of sustainability for Carrier, explains that it was the exact opposite — Prieur simply believed in the work that he was doing. “Eric gave unselfishly — heart and soul — to a movement that was greater than himself, and he did it with great sincerity,” Shaw says. “We owe him a debt of gratitude for his dedicated contributions to our business and the sustainability work that he deeply believed in.” On March 10, 2019, Prieur was one of 157 passengers who died in the crash of Ethiopian Airlines flight 302. Prieur was en route to Nairobi, Kenya, on behalf of Carrier, to speak on the connection between food loss/waste and climate change at the United Nations Environment Assembly conference. Prieur’s contribution to the food industry, positions in industry organizations and oversight for academic research has posthumously earned him the recognition of Food Logistics’ 2020 Champion of the Year. This annual award recognizes the industry’s most influential professionals’ hard work, vision and leadership in shaping the global food supply chain. “I first met Eric shortly after he joined Carrier Transicold Europe, and we both worked in marketing communications. We had many spirited discussions, but he always stuck to his beliefs, and I admired his tenacity,” Shaw says. “He was a multi-dimensional thinker, and was able to create innovative concepts and campaigns that were rooted in data analytics. It’s not often you find someone whose brain works like that.” In 2015, Prieur was approached to work full-time on cold chain development, being fully aware that progress would sometimes be measured in millimeters. Shaw explained to him that initially, they may lose more than they would win, but those victories

www.foodlogistics.com

3/6/20 12:55 PM

wo ple it, P “ ass po vie He nec thi wa pre un beh W ind com wo “ con con on say Jan the had foo ou

d it bt

accomplish in the years going forward. “On our last day together, he escorted me in the middle of the afternoon to the train station on the north side of Paris, so that we could continue the discussion. He didn’t have to do that, but that’s just who he was,” Shaw says. Meanwhile, Prieur was not afraid to roll up his sleeves and go to work, often spending time in ﬁelds with growers to understand their business models, determine their pain points and how to solve them. He was learning Hindi to better communicate with participants in a pilot study in India, always going the extra mile to ensure that everyone felt validated. “He was trusted, he was respected, he was fun-loving and he had an adCarrier Transicold & Refrigeration System

would be meaningful to so many people. After taking a day to think about it, Prieur accepted the position. “Eric challenged us all on our assumptions about everything, from population growth to a bottom-up view as why food is lost or wasted. He recognized that there were many necessary steps to correct these things,” Shaw explains. “He didn’t want to just read something or see a presentation; he always wanted to understand the determining factors behind the conclusions.” While Prieur made strides in the industry, Shaw explains that his compassion reached outside of the workplace. “Working on two different continents meant that we had many conference calls and saw each other only a couple of times a year,” Shaw says. “I spent a few days with Eric last January working at Carrier’s ofﬁce on the western outskirts of Paris, and we had several candid discussions about food loss and waste reduction and our aspirations for what Carrier could

venturous side that manifested itself whenever he took a vacation,” Shaw says. “In 2018, he biked from Paris to Milan [over 500 miles], making detours along the way to stop and visit relatives and friends. He was just so conscious about his impact.” Prieur was a trailblazer for global programs aimed to reduce food waste and the resultant CO2 emissions, and was at the forefront of leading real change in these areas with projects in India, Vietnam, and the Philippines. He inﬂuenced

“Eric challenged us all on our assumptions about everything, from population growth to a bottom-up view as why food is lost or wasted.“

enht alf d ns

y’s d

Is your supply chain ready for the New Era of Smarter Food Safety? Solve your temperature dilemmas with continuous product visibility.

ng s,

s t’s

Real-time temperature monitoring

Product movement traceability

24/7 control tower services

Watch our four-part webinar series, Solving the Supply Chain Temperature Dilemma: • The Food Brand (on demand) • The Supply Chain (on demand) • The Quality Manager (April 15) • The Holistic Value Chain (June 10)

www.foodlogistics.com

FLOG0320_22-27_2020Champions (2).indd 23

Data analytics and insights

Learn more: controlant.com Contact us: contact@controlant.com Follow us @Controlant on Twitter and LinkedIn

MARCH 2020 | FOOD LOGISTICS

3/6/20 12:55 PM

2020 CHAMPIONS continued many people through his position and how he approached the topic of sustainability with great passion. He was often called on to speak at events around the I think it’s well globe, and helped Carrier’s deserved that Eric increase level of participation is the Champion and leadership in of the Year. We are food loss and waste on a global continuing the work reduction scale. that he was doing, “Eric forged relationships with and that’s how we various organizaas an industry will tions, such as the remember him and United Nations Environment Prohonor his legacy. gram (UNEP), the United Nations Food and Agriculture Organization and was one of the founding members of the Global Food Cold Chain Council (GFCCC). He also oversaw academic research and helped deﬁne and develop a cold

FOOD LOGISTICS | MARCH 2020

FLOG0320_22-27_2020Champions (2).indd 24

chain certiﬁcation program,” Shaw details. “The work he was engaged with continues to be critically important, not just on a global scale, but locally, as well.” While Prieur was personally involved in many industry-wide projects and organizations, he always believed that he was a part of something much bigger than himself. His passion for reducing food waste set the Carrier Transicold & Refrigeration System bar for ic-prieur-memorial-research-fund/ Carrier and others to continue or by sending a check payable to the his work in his memory. Eric Prieur Memorial Research Fund, For example, the GFCCC 2111 Wilson Blvd, 8th Floor, Arlingestablished the Eric Prieur ton, Virginia 22201. Memorial Research Fund for Prieur will be remembered, Cold Chain Sustainability, though. His contributions to the which was seeded by donaindustry were immense and his loss tions from Carrier and other has been greatly felt. Food Logistics, GFCCC members to help reas well the other Rock Stars on this duce food loss and waste while list, will continue to incorporate his increasing global awareness knowledge about the interconnected for and expansion of a sustainrelationship between food waste and able food cold chain. Funds the food supply chain by supporting will be used to develop case the world’s growing population. studies and reﬁne data while “I think it’s well deserved that Eric also advancing other key susis the Champion of the Year. We are tainable cold chain activities in continuing the work that he was dodeveloping countries. ing, and that’s how we as an industry Individuals or organizations will remember him and honor his wishing to make non-tax delegacy,” says Shaw. ductible contributions to the Read on to learn more about the other Eric Prieur Memorial Research 2020 Rock Stars of the Supply Chain. Fund for Cold Chain Sustainability may do so at www. foodcoldchain.org/the-er-

www.foodlogistics.com

3/6/20 12:55 PM

Se Th

As Th ed wa op the of ba exp he byl in i ma inf pro ho en can inc pro ma sup ad cus

e nd, -

ed nd g

ic e ory

MEET THE 2020 ROCK STARS OF THE SUPPLY CHAIN

CHAMPIONS 2020

OF THE FOOD SUPPLY CHAIN Mike R. Peterson Senior Vice President of Operations, Universal Chain Inc. Mike R. Peterson came to Universal Chain Inc. in 2018 with 35-plus years of experience in food manufacturing, warehousing and logistics. After attending Washington State University, Peterson started a career in dairy and food manufacturing, before moving into logistics and distribution, where he led the Lean/5S/continuous improvement efforts in multiple locations. Peterson is skilled in operations and lean management, leadership and operational excellence. Peterson also brings 25-plus years of umpire experience to his business resume. Utilizing those experiences has added leadership and game management skills that he’s adapted and incorporated into business life.

Jennifer De Souza Senior Director for Energy Solutions and Procurement, The Raymond Corporation As the senior director for energy solutions and procurement at The Raymond Corporation, Jennifer de Souza is passionate about educating warehouse operations on the benefits of lithium-ion batteries. Her expertise leads her to penning bylined articles in industry magazines and informing other professionals on how alternative energy solutions can lead to increased productivity and significant cost savings. Her experience helps maximize efficiencies in manufacturing, warehouses and global supply chain operations, allowing Raymond the opportunity to adopt and provide game-changing alternative energy sources to its customers.

www.foodlogistics.com

FLOG0320_22-27_2020Champions (2).indd 25

π SHIPPING SUPPLY SPECIALISTS

STORE IT RIGHT!

ORDER BY 6 PM FOR SAME DAY SHIPPING

COMPLETE CATALOG

1-800-295-5510

uline.com

MARCH 2020 | FOOD LOGISTICS

3/6/20 3:01 PM

2020 CHAMPIONS continued

Don Durm Vice President of Customer Solutions, PLM With over 25 years of experience in logistics, Don Durm, vice president of customer solutions at PLM, is often recognized as an industry expert on cold chain transport application, regulatory compliance and the application of technology for a smarter food safety system. Durm is often sought out as a speaker, writes on cold chain challenges and is one of the authors of the internationally accepted IRTA Refrigerated Best Practices Guide distributed by the Global Cold Chain Alliance (GCCA) to help the industry meet the Food Safety Modernization standards. In the last year, Durm played an essential role in the pilot and launch of the Cold Carrier Certiﬁed program. (Check out Food Logistics’ Jan/Feb 2020 issue for Durm’s column on the Cold Carrier Certiﬁed program).

Wendy Leveillee Vice President of Program Management, National DCP LLC Wendy Leveillee, vice president of program management for National DCP LLC, is often referred to as a “highly motivated leader,” as she oversees the relationship with NDCP’s suppliers and Dunkin’ Brands to support the company’s supply chain objectives. In her role, Leveillee built an industry leading program management function that maximizes efﬁciencies by overseeing the execution of limited-time offers between NDCP and Dunkin’ Brands. Meanwhile, Leveillee continues to transform the bottom line by implementing best-in-class practices to better focus on the right product at the right time.

Gisli Herjolfsson Co-Founder and CEO, Controlant In his role as the co-founder and CEO of Controlant, Gisli Herjolfsson has driven the vision, culture and growth of the company over the past 12 years. Under his watch, the company is mapping the entire cold chain by collecting analytics regarding shipment lanes, packaging, partners and points of interest.

2020

Food Logistics’ annual awards program recognizes individual and corporate leaders in the food and beverage industry. Go to https://www.foodlogistics. com/awards to learn more about the remaining two award opportunities in 2020.

FOOD LOGISTICS | MARCH 2020

FLOG0320_22-27_2020Champions (2).indd 26

www.foodlogistics.com

3/6/20 12:55 PM

BE HONORED FOR YOUR ACHIEVEMENTS! Each year, Food Logistics showcases individual and corporate leaders in the food and beverage industry. Plan now to enter your company — or a cutting-edge client or vendor — in one of these industry-leading recognition programs:

ROCK STARS OF THE SUPPLY CHAIN

CHAMPIONS 2020

2020 TOP PROVIDERS

CHAMPIONS AWARD:

ROCK STARS OF THE SUPPLY CHAIN Honoring individuals whose visions are shaping the future of the global food supply chain. Nominations Closed Winners announced in March 2020 issue

TOP GREEN PROVIDERS Are you a leader in sustainable practices? Share your achievements. Nomination deadline: April 1, 2020 Winners announced in June 2020 issue

2020

TOP 3PL & COLD STORAGE PROVIDERS

FL100+ TOP SOFTWARE & TECHNOLOGY PROVIDERS

Are you a leading third-party logistics and cold storage provider? Be honored for your achievements.

Showcasing top software and technology providers supporting the global food and beverage supply chain.

Nomination deadline: May 29, 2020 Winners announced in August 2020 issue

Nomination deadline: September 18, 2020 Winners announced in November/December 2020 issue

ONLINE NOMINATIONS OPEN APPROXIMATELY TWELVE WEEKS BEFORE THE DEADLINES LISTED ABOVE. AWARD RESULTS, INFORMATION AND NOMINATIONS POSTED ON:

FOODLOGISTICS.COM/AWARDS Global Supply Chain Solutions for the Food and Beverage Industry

Nomination dates and issues may change. Consult the call-for-entries email and nomination survey for confirmation

FLOG0320_22-27_2020Champions (2).indd 27

3/6/20 12:55 PM

THIRD-PARTY & REFRIGERATED LOGISTICS

BY GIGI WOOD, STAFF WRITER

HOW TECHNOLOGY DRIVES

TRACK-AND-TRACE TRENDS

IN FOOD LOGISTICS

Here’s how the demand for real-time visibility and technology improvements drive growth in track-andtrace options.

New technologies and improvements allow shippers, carriers and receivers to tackle a host of ongoing challenges in the industry. Here’s how experts believe that trends in track-and-trace technology will impact the industry in years to come.

Real-time updates

Cooltrax

One trend during recent years is the increasing demand for live updates on shipments during transit, says Ian Hess, senior vice president of brokerage operations for the Southeasts for Atlanta-based Nolan Transportation Group. “Everyone wants real-time visibility on what’s going on with their shipments, where exactly they’ve been picked up and where exactly they are going,” he says. “We’re trying to use every technology available to us to give that real-time visibility to our customers, whether it’s through FourKites or ELD (electronic logging devices) integration or whatever we can do for customers.” That’s why customers want real-time updates, and expect to receive them every 1-2 hours. ELDs allow carriers to not be on the

Cooltrax Fresh InTransit provides 24/7, real-time location tracking and product level temperature monitoring of refrigerated trailers throughout the entire in-transit cold chain.

FOOD LOGISTICS | MARCH 2020

FLOG0320_28-31_3PL.indd 28

phone with their dispatcher to get an update. Meanwhile, other drivers simply want an alert when their trailer temperature rises above a certain threshold, says Zack Gibbs, senior product manager at Trimble Transportation, Minnetonka, Minn. “There are people saying, ‘If it goes ﬁve degrees below that 40-degree threshold for this particular product line, I want an alert,’” he says. “They want a notiﬁcation to be sent via email or text message.”

Real-time notification frequency Frequency of real-time notiﬁcations is often based on cost, say David Cahn, director of global marketing at Elemica, Wayne, Pa. “We see the need for real-time information varies because there’s a cost to it,” he says. “Traditionally, track and trace was, ‘I picked up the order, I delivered the order, I got the order unloaded and it got put away.’ Now, we have GPS technology, anytime information, where it is at any point in time. But, to get those GPS signals and actually get it onto your control tower, that costs money.” For many, it’s not so much about the frequency of notiﬁcations as it is about building trust with the client, says Cahn. “A lot of 3PLs are doing it for their customers, and are really

trying to drive better supply chain relationships, so you can you trust your suppliers,” Cahn says. “From a supply network [perspective], you get to forge a better working relationship with the supplier. Updating your shipment status in real time can really beneﬁt the relationship, in terms of product quality, reliability and online delivery performance.”

Extended shelf life On-time delivery is important to help maintain the shelf life of perishable products. More often, clients expect more accountability when it comes to delivery time, and technology is increasingly playing a role in that. “One of the things that has deﬁnitely become a core standard with technology and track and trace is, shippers and receivers are able to track shipments and whether it’s on time. They’re really holding their carriers accountable to make these on-time deliveries and on-time pickups,” Hess says. “I think one of the most standard numbers I’m seeing across the industry is, shippers and receivers, mainly receivers, are holding their carriers to have 98% on-time delivery, and they’re able to track that accurately. If they’re not compliant to their percent on time, they’re not going to invite them to the next bid for the next RFQ (request for quotation). That’s just

www.foodlogistics.com

3/6/20 1:12 PM

val foo T me dri “ law day any see dri tim pro soo

Tr pr

Wh or a la cha B pe tra to fro “ wa pro D mu tra alo “ ba wa tel we

, ilice.”

y nd a

d ace

t’s eir se

f ees re % to ot e,

valuable shelf life, especially in the food industry.” To help ensure on-time shipments, many grocers request team drivers ship the load. “Especially with the new ELD laws, something that used to be a day transit or a two-day transit isn’t anymore,” adds Hess. “So, we’re seeing a lot more requests for team drivers to hold to those transit times and make sure they get the product there and on the shelf as soon as possible.”

Tracking potential product recalls Whether it’s food, pharmaceuticals or retail items, product recalls add a layer of complexity to the supply chain. But, when it comes to recalling perishable items, technology can track down the recalled product to the exact farm plot it originated from. “If there’s a big problem, people want to know exactly where this product came from,” Hess says. Demand is also increasing for multi-tier track and trace, which tracks a recalled product anywhere along the supply chain. “Can I go multi-tier, forward and backward with track and trace? I want to know, if this lot was bad, tell me all of the ingredients that went into this lot,” Cahn says. “And,

www.foodlogistics.com

FLOG0320_28-31_3PL.indd 29

then on the other case, show me all shipments that contain this lot number. I need it to go more than one stage down in the supply chain. I need to have multi-tier visibility. As a manufacturer, I sell it to a distributor, that distributor then sells it to a retailer and that retailer sells it to a consumer. Most of them are getting better at that multi-tier track and trace.” When tracking perishable product recalls, the industry has a better handle on temperature, humidity and expiration dates, he says

Regulatory impact on track and trace Strict regulations, such as the Food Safety Modernization Act (FSMA), has made real-time notiﬁcations more of a reality, Gibbs says. “The data has become a lot more accessible because of the ELD mandate that’s ﬁnally taken full effect,” he says. “In the carrier ecosystem, you have a lot more accessibility to data than we’ve ever had before.” While new mandates have brought positive change to the industry overall, a lack of standards remains a challenge, says Rick Zaffarano, vice president of consumer products solutions at Transportation Insight, Hickory, N.C. “Food shippers have two pressures that have been heightened in recent years—food safety

and must-deliver-by demands by consignees. Let’s take the mandate for electronic logs, for example. Everyone must have them, but there are many providers of that technology. New trailers have all the technology available to monitor location, temperature and even when the doors of the trailer are open. The challenge is universal compliance to one platform that is easy to integrate with,” adds Zaffarano.

Elemica moves half a trillion goods annually through its digital supply. network.

Elemica

Widespread technology adoption and integration Adoption of software that provides real-time notiﬁcation capabilities has been robust over the past few years, Gibbs says. “It’s gotten a lot easier for the shippers in particular because most shippers have adopted TMS (transportation management system) technologies,” he says. “Because TMS technologies have been widely adopted, whether you’re a carrier, a shipper or a 3PL, there are a ton of different TMS providers out there that have offerings depending on who you are and what you do.” But, not every player in the logistics supply chain has the most advanced, integrated technologies, which can make real-time updates a challenge. “Connecting with our carrier sys-

“

Connecting with our carrier systems using the trackingand-trace software, when they have it,

works great

MARCH 2020 | FOOD LOGISTICS

“

n t a u ng

3/6/20 1:12 PM

3PL

continued

tems using the tracking-and-tracing software, when they have it, works great,” Hess says. “Other times, carriers might not have a technology like that available or one that is difficult, or they don’t want to integrate with ours.” In those cases, Nolan Transportation uses GPS trackers or mobile-ready devices to receive shipping updates. Meanwhile, Elemica uses barcodes, application programming interfaces (APIs) and other technologies to integrate between shippers, trucks, rail, marine and receivers. “One of the things that we’re starting to see is the ability to really do multiple modes of track and trace through barcode,” Cahn says. “Technology has to integrate those different mechanisms to synchronize that data within our network.”

Hardware solutions Devices used to monitor refrigerated container temperatures are becoming more affordable, Gibbs says. “There’s a lot more adoption of new hardware technologies that are not just at the tractor level, but also at the trailer level,” he says. “Then also at the product or SKU level, on individual pallets and certain bulkheads inside of a trailer. There’s more multi-zone technologies that are easily adoptable now than there ever have been in the past.” Devices are also becoming more advanced, allowing sensors to send data in multiple directions. This allows drivers to change the temperature if needed. “I’m checking a sensor on a truck, and that sensor is telling me that something is out of tolerance,” Cahn says. “The temperature has changed. We’re sending that information back up to the network, but the network is not doing anything about it. The network is not sending information back down to that sensor to readjust the thermostat in the truck.”

FOOD LOGISTICS | MARCH 2020

FLOG0320_28-31_3PL.indd 30

HOW COMPANIES KEEP IT COLD Today’s track-and-trace solutions are designed to maintain a product’s temperature throughout the duration of its journey from Point A to Point B. For example, Cooltrax, Roswell, Ga., provides detailed visibility into temperature-controlled freight with Fresh InTransit, a product-level device that monitors the temperature of the product instead of the ambient temperature of the trailer. Cooltrax then creates data that can be shared with the receiver to show the temperature of the product remained within a set range. “[Fresh InTransit] allows companies to monitor actual product temperature vs. trailer temp,” says Amanda Biddlestone, spokesperson for Cooltrax. “Ben E. Keith and Cheney Brothers are using this leading technology, and customers choose them because they can trust that their product temp is true and accurate and that the food they are getting has not fallen below FSMA-regulated temperatures.” Cooltrax also monitors the temperature of foodservice fridges and reefer units in real-time. “The trailer is really just a portable warehouse,” says Brad Bartlett, senior director of sales for Cooltrax. “It should be looked at in the same way, whereas we should be concentrating on making sure that product is at the right temperature. They spend millions of dollars refrigerating warehouses, and auditors are in there every day mandating the temperature be static in these warehouses, but then in that final mile when it hits the street, we’re accepting [fluctuating ambient temperatures in the trailer].” This technology also allows grocers to monitor the temperature of produce and other fresh foods in real-time. “Grocers are looking to quickly evolve the technology, which allows them to look at the temperature in real time of in-inbound produce that they own, so that the carrier has the correct temperature in that trailer,” says Bartlett. “We’ve proven beyond a reasonable doubt that [temperature] is not compromised. And, this is the temperature that we’re seeing in product in a very dramatic and volatile temperature environment. That’s how we want to make sure the industry understands how we are translating temperature or how we are giving them temperature. Because at the end of the day, we’re selling this temperature reading.” For its part, Varcode, Chicago, produces barcoded tags that change color based on time and temperature factors. If a box of fresh produce has been sitting for too long, its tag automatically changes colors. “What we focused on is building a really low-cost, distributed component—the printed barcode,” says Joe Battoe, chief executive officer of Varcode. “It goes on the product; it can be scanned along the way. The standard operating procedure that we’re advocating for is that everyone scan the product when they take the (shipped product) in the chain of custody and scan the product when they relinquish the control of the product and chain of custody.” The barcode is about the size of a business card and is made of proteins and ink. “These fatty acid proteins and ink, along with a fibrous layer of cloth, interact and are chemically-tuned to the prescribed temperature ranges and expand at predictable rates outside of those temperature ranges,” says Battoe. The barcoded tags then send the information to the company’s cloud-based, mobile-ready and blockchain-compatible platform. “When the tag is scanned, it captures who scanned it, what they scanned, when the standard timestamps were and whether it was inside or outside of its prescribed range and its cumulative duration outside of that range,” Battoe says. “If you click on any one of these records, it brings up a map and shows where your product is at that point along with its cumulative duration outside of the prescribed range.” If the shipped product leaves its prescribed range, an alert is sent out to inform the shipper and others in the chain.

www.foodlogistics.com

3/6/20 1:12 PM

I wit tem tho

Ha is a the “ the lot the it w wa da an sof An be sib of bro of M sm hav the be

In p d th Jo

Instead of calling the truck driver with instructions to change the temperature, sensors can send those directions to the truck.

Moving to the cloud

Predicting track and trace The industry is headed toward creating technology that uses data analytics to predict and make recommendations, says Cahn. For example, if a carrier is typically late to arrive, instead of expecting the shipment on Tuesday, the system can predict it will arrive on Wednesday. In addition, technology will one day be able to make recommendations. For instance, if there is a virus outbreak or a hurricane, the system can recommend changing the source of supply to a different part of the country. “That’s a next-generation artiﬁcial intelligence kind of machine learning capability,” Cahn says. Whether it be real-time alerts, cloud-based systems or abiding by regulatory changes, today’s trackand-trace solutions allow shippers, carriers and receivers to tackle a host of ongoing challenges in the industry.

e Varcod

Having data accessible on the cloud is another major trend impacting the industry. “There’s a big move in general to the cloud,” Gibbs says. “You have a lot of on-premise solutions, where there’s been a TMS created, but it was created for somebody that was running it within their own data centers on their own servers, and that customer customized that software suite to ﬁt their business. And, it’s all on-premise instead of being in the cloud or more accessible. So, there’s a big shift for all of the groups—carriers, shippers, brokers and 3PLs—to move to more of a cloud model.” Many brokers subcontract to smaller carriers, which may not have cloud capabilities. In that case, there are mobile solutions that can be used. However, even the vast

number of small carriers remains to be a challenge for tracing. “There’s so many small, owner-operator carriers out there in North America that it’s a big challenge to get some of the contextual information off of their systems,” Gibbs says. “They may use a mobile app to manage the day-to-day operations, or they may just take phone calls from their brokerage contacts. There are ways around it with mobile applications for smart phones.” But, the need for a standardized, widely acceptable platform can be achieved through the cloud, Zaffarano adds. “The solution no doubt lies with a third-party network that can talk to many diverse systems and pull it all together into one source of truth for the shipper,” Zaffarano says. “The cloud has advanced the potential of a handful of 3PLs that can move us closer to true real-time visibility of each shipment. The question will be, who pays for it?”

Varcode produces barcoded tags that change color based on time and temperature factors.

TOP FEATURES Capable: Up to 250 pallets per hour Strong: Up to 1.500 kg Energy-efficient: Lightweight Design, Power Caps

MULTIFLEX

FULL POWER FOR TOP WAREHOUSE EFFICIENCY In the race to create the most efficient warehouse, the MULTIFLEX Pallet-Shuttle-System is in pole position. CARRIER, COMPACT SHUTTLE, and LIFT work perfectly together to achieve maximum storage density in the smallest warehouse space. With their amazing acceleration and operating speeds, these three modules achieve a phenomenal throughput. Join the fan club: www.dambach-lagersysteme.com

www.foodlogistics.com

FLOG0320_28-31_3PL.indd 31

MARCH 2020 | FOOD LOGISTICS

3/6/20 1:12 PM

uch us ur

n te e,

SECTOR REPORTS

WAREHOUSING

TOP CONSIDERATIONS

FOR COLD STORAGE FACILITY DEVELOPMENT A M King

D CARL MORSE, SENIOR PROJECT MANAGER, A M KING

Each new project will profit from cuttingedge technology and a continued focus on automation and diversification.

”

k, nal ger,

emand for cold storage warehousing isn’t a new phenomenon, but what is new is the mushrooming call for very speciﬁc, complex refrigerated spaces to meet the needs of increasingly sophisticated consumers. The proper handling and storage of certain types of produce, for example, has grown into big business as part of the collective effort to capitalize on the farm-to-table movement. Keeping up with booming online and on-trend grocery sales means food companies may consider building a Greenﬁeld distribution facility, and if there isn’t the option or desire for new construction, establishing an expansion space or creating more cold storage space within an existing facility. Globally, cold storage capacity reached 616 million cubic meters in 2018, an increase of 2.67% since 2016, according to the 2018 GCCA Global Cold Storage Capacity Report, produced by the Global Cold Chain Alliance, Alexandria, Va. The total capacity of refrigerated warehouses in the United States was 131 million cubic meters in 2018, behind only India (150 million cubic meters.)

FOOD LOGISTICS | MARCH 2020

FLOG0320_32-33_Warehouse.indd 32

Here are rooftop penthouse refrigeration systems on a cold storage distribution center.

“The growth of online grocery sales has stoked demand for additional cold storage warehousing space in the U.S., but cost and complexity of constructing cold storage facilities might make meeting that demand challenging,” as outlined in a cold storage warehousing report presented by CBRE, Los Angeles. The “anticipated rise in cold storage construction will spur subtle changes in how and where these facilities are built.”

Product diversity continues to change and evolve For many large grocery retailers, there are distinct product groups that have grown tremendously on the perishable side. That’s because consumer desire for more fresh, healthy and ready-to-eat items continue to drive production of all-natural, vegan and gluten-free products. To stay on trend, cold storage facility owners and operators must ﬁrst dedicate the necessary square footage to multiple temperature zones; determine which products need to be in a temperature-controlled environment and then what the best strategy for doing that is.

Geography may also be a factor within the same company with the same product lineup. For example, an Atlanta confectionery distribution center may need to store chocolate in a conditioned zone and separate from bubble gum, whereas in Minnesota, both items could be stored in a dry, ambient warehouse. Many fruits and vegetables, such as bananas and mangoes, require multiple dedicated temperature zones with humidity ﬂexibility to ensure that the product arrives at the stores in peak condition. Take for example a California-based avocado company’s East Coast distribution center, which features rooms ranging from 4070°F, specially designed for each stage of the ripening process. Ultimately, cold storage spaces should be conceived to meet owner needs regarding operations and facility locations throughout the country.

Rising land costs drive requests for taller buildings During the last decade, the industry has seen a tremendous increase in requests for higher clear heights. Clients routinely ask, “How tall can

www.foodlogistics.com

3/6/20 1:00 PM

we mo foo B iss ha ﬂo ity to on com an sys of uti T glo uto exa the ba an the ac tra the un fre 15 cei are be AS acc pro foo

Ad in te

Re or bu int is-h tal an ers me pro ab sys C efﬁ cha ten T sys

E T

nter.

r e e,

nd eas e se. ch

try n

for industrial refrigeration, a host of we go?” Cubic volume becomes new systems are being developed more important than square and implemented, including direct footage. expansion and Cascade and lowBut, there are thresholds and charged packaged units. issues to consider such as how to For example, a Cascade confighandle fire protection, the type of floor slabs and building accessibiluration, or two-stage refrigeration system, handles large temperature ity. It takes planning and research gaps by using two different types to establish optimal height, and of energy-efficient refrigerants, once that is determined, many thereby taking advantage of each companies decide to incorporate of the refrigerant’s properties and an automated storage and retrieval only using them in areas where system (AS/RS). The No. 1 benefit they best apply. This approach is of AS/RS is improved floor space commonly used for extreme deep utilization. freezer conditions, but can also be Take the baking operation at a applied at higher operating temglobal food processor and distributor’s New England facility, for peratures to reduce risk of product example. After loss due to a the goods are refrigerant leak. “The growth of online grocery baked, cooled Ammonia could sales has stoked demand for and palletized, be used as the additional cold storage they are put on main refrigerant warehousing space a conveyor and contained in the in the U.S., but cost and transferred to machine room the fully racked, and glycol, as complexity of constructing cold unmanned storage facilities might the secondary freezer with refrigerant, make meeting that 150-foot demand challenging,” would then be ceilings. There distributed to are no human the evaporators beings in the dark freezer, only the throughout the facility. This setup AS/RS system, which quickly and minimizes the risk of distributing accurately places and retrieves the large charges of ammonia, which product for truck deliveries to fast could contaminate produce, such as food restaurants in the region. acai or other berries. Each of these refrigeration systems can benefit from the use Advancements of prefabrication. Something as in refrigeration simple as the valve groups for technology refrigeration piping systems can be Refrigeration capabilities can make prefabricated or break a company that’s in the for use in a business of preserving product cold storage integrity. There is no longer a thisdistribution is-how-we’ve-always-done-it menfacility. tality. Clients want to get it right However, and rely on reputable design-buildprefabrication ers to assess the role that environment, jurisdiction, space, safety and is most often optimized product type plays in the decision in conjuncabout what type of refrigeration system to install. tion with Companies must also consider low-charged efficiency, amount of refrigerant packaged charge, refrigerant type and mainunits, where compressors, tenance accessibility. controls and Though liquid recirculation systems have been historically used evaporators

www.foodlogistics.com

FLOG0320_32-33_Warehouse.indd 33

are constructed in a penthouse unit in an off-site location parallel with facility construction. The units are then delivered to the job site and set in place, significantly reducing the amount of on-site labor, cutting overall project timelines and decreasing safety risks. Finally, the investment in control systems maximizes refrigeration system energy efficiency, prolongs lifespan of equipment, tracks trends and productivity and gives real-time performance.

The future of cold storage Designing and building a state-ofthe-art food distribution facility is challenging. Expanding cold storage space at an existing facility is even more so. As a rule of thumb, companies are using current assets before investing in new ones. They may be motivated by trying to get products to market more quickly, meeting regulations or answering the challenge of workforce shortages. That’s why we’re seeing a proliferation of expansions and renovations of distribution centers in the food industry. Each new project will profit from cutting-edge technology such as new systems or hybrids of those systems. There will also be continued focus on automation, diversification of temperature-controlled products and demand for more data and analytics.

MARCH 2020 | FOOD LOGISTICS

3/6/20 1:00 PM

SECTOR REPORTS

TRANSPORTATION

op T fur wit tiv on an tur im

ELD IMPLEMENTATION FOR FOOD MANUFACTURERS WITH

TRANSPORTATION

FLEETS T JIM GRIFFEN, COO & CTO, FLEET ADVANTAGE

Fleet managers must think strategically about the data they need to manage their food distributor’s compliance, performance and drivers’ behaviors.

he two-year grace period that allows automatic on-board recording devices (AOBRD) to replace electronic logging device (ELD)-compliant devices expired last December. This means that food manufacturers with distribution fleets that did not upgrade to ELD-compliant devices but were operating under the AOBRD extension should already have made a commitment to an ELD provider and service. This also means that food manufacturer distributors that were operating on the AOBRD extension for the last two years are now faced with the same decisions that fleets had to make when the ELD mandate was initially put into place. Who do I select as my provider? The ELD conversation for food manufacturers and their distributors is larger than just an hoursof-service (HOS) determination, especially for time- and temperature-sensitive operations due to the passing of the Food Safety Modernization Act (FSMA). ELDs are also part of a broader discussion about telematics and on-board comput-

FOOD LOGISTICS | MARCH 2020

FLOG0320_34-35_Transportation.indd 34

ers, and the use of telematics to optimize data that comes from the truck as well as the use of that data for overall fleet compliance, analytics and operations. ELDs can be a different technology than an AOBRD. ELDs are not required to capture all the operating data that your AOBRD may have been capturing. ELD data requirements are focused and governed based on the HOS rules. What this means is that the food manufacturers and their distributors need to be careful in their selection to ensure they do not focus only on ELD compliance. Food manufacturing and fleet executives need to also determine what data they continue to manage and ensure that it’s FSMA compliant. For example, they may select a compliant ELD, but may lose important operational data such as load, maintenance and fuel data used to monitor total cost of ownership. AOBRDs have been around for several years, and can capture an extensive amount of data. Many telematics providers have upgraded their technology to maintain the

data collection and monitoring and enhance them with the ELD mandate-compliant functionality. These devices will continue to record the same data as the AOBRD. However, newer ELD devices and services may not be collecting the same rich data set. The ELD mandate opened a vast market of opportunity that attracted several new providers claiming to be ELD-compliant. Many of these providers are focused on the ELD compliancy and not the valuable fuel, diagnostic and fault code data or the load-specific data that might be needed for food distributors under FSMA. A key question that food manufacturers and their distribution fleets need to ask is—Are they or did they give up access to critical data they have been historically using that would help with FSMA compliance in the future? This depends on the viability of the technology platform offered by the provider. If fleet managers are not careful, they may lose out on critical truck data they can use, or have been using, for performance

www.foodlogistics.com

3/6/20 1:48 PM

rou ab ma tio mo ref be tio tor sol F mo in p ext ma tem to is a siti the de tia D tel evi me in a tha to A tio

se e er,

st tg ese

a ht

optimization via data analytics. This additional data could be of further use for food distributors with time- and temperature-sensitive loads. These organizations rely on identifying longer idling times, and when combined with temperature-sensitive orders, can greatly impact fuel expenditure. Critical

routing data can also impact perishable deliveries. What’s more, FSMA mandates that sanitary transportation of food requires temperature monitoring and control to prevent refrigerated and frozen foods from becoming unsafe during transportation. This information can be monitored with the right ELD telematics solution. Food distributors need to have more stringent routing plans in place for deliveries, as data extracted from the ELD might make it more difﬁcult for time- and temperature-sensitive operations to remain compliant. A real scenario is a load time and temperature-sensitive load being stranded because the driver is out of hours, not only delaying the load, but also potentially putting the whole load at risk. Do food distributors view the telematics mandate as a “necessary evil” and spend the least amount to meet compliance, or do they go allin and realize the value of the data that the entire ecosystem provides to the operational bottom line? Amid the overload of applications, hardware and services avail-

www.foodlogistics.com

FLOG0320_34-35_Transportation.indd 35

able in the ever-changing telematics world, deciding on the range of system functionality and associated costs can be overwhelming. Pricing for hardware can range from free to several thousand dollars per truck, while functionality can range from basic GPS tracking to a fully integrated mobile asset management system. With options on vendors, applications, features and costs, where do fleets begin? Fleet managers must think beyond the ELD compliance and think strategically about the data they need to manage their food distributor’s compliance, performance and drivers’ behaviors and vehicle lifecycles that will ultimately pay off in improved fuel economy, enhanced preventative maintenance, lower operating costs and improved driver retention. The hardware is just the first decision. Fleets must also choose a provider/partner that is there for the long-haul, who can support the organization and fleet well into the future. A short-sighted decision to simply meet the ELD mandate without understanding the actionable data potential for greatly reducing operating costs is still ill advised. The incremental costs to acquire systems and services that provide additional data and applications to modernize the fleet is minimal and its return on investment is substantial. By attempting to minimize this step and focusing strictly on ELD compliance, fleets will find they have lost substantial operational savings, competitive advantage and increased costs by not having access to actionable decision-making data that can assist in optimizing the food distributor’s fleet performance.

What does a good partner/vendor look like? 1. How long have they been providing ﬂeet telematics? Fleets need a provider that has a legacy of providing solid telematic technology and services. Telematics and

transportation technology is a lifetime of lessons learned. It is beyond the technology, and more about understanding how technology impacts the operation of the fleet. No two fleets are the same. 2. What does their technology roadmap look like? What is the strategy for the advancement of technology in the future, and how will this impact the collection and interpretation of data? Remember, this is a long-term investment, and it is unwise for fleets to frequently jump between providers. The operational disruptions/costs alone will deplete any realized savings. Fleets also don’t want to lose any competitive edge due to their competitors’ actionable data strategies. 3. How good are they at deployment and support services? It is important to find a partner that understands all complexities involved from planning to execution and works with fleet management teams to overcome any unforeseen challenges. Choosing the right business intelligence partner can help fleets interpret the abundance of data that’s collected by the AOBRD and ELD. Beyond this critical interpretation, the right partner offers its own technology resources that can help fleets make sense of data from many

different platforms and sources. With the right partner, fleets can be compliant and obtain business intelligence and analytics, allowing them to maximize the value of the data they extract from each truck to create both operational and bottom-line financial efficiencies.

MARCH 2020 | FOOD LOGISTICS

3/6/20 1:48 PM

SECTOR REPORTS

SOFTWARE & TECHNOLOGY

po tra ma foo the bu inn

THE EVER-EXPANDING ROLE OF

AI & AR IN FOOD LOGISTICS

T JASON VANOVER CONTENT EDITOR , CERASIS

Find out how and why AI and AR enable success and visibility in today’s food supply chains.

he food supply chain is unlike any other. While electronics, automotive and consumer goods’ supply chains promote their products, the food supply chain represents a basic human necessity--food. Because all consumers require food, it deserves a highlighted view of the use of new technologies, including artificial intelligence (AI) and augmented reality (AR) to promote efficiencies, prevent disruptions, lower risk and boost customer confidence. That’s why food and beverage supply chain leaders need to understand the ever-expanding role technologies play in their businesses and how they’ll influence the industry this year and beyond.

Major growth areas The use of AI and AR represent signiﬁcant advantages in the entire global supply chain. For instance, AI in the food and beverage market is expected to register a CAGR of over 65.3%

FOOD LOGISTICS | MARCH 2020

FLOG0320_36-37_Softwar/Tech.indd 36

by 2025, according to a report published by Mordor Intelligence, India. The North American food and beverage market possesses an AI-adoption rate of approximately 29.1%, the study says. But, the industry is ready for change, and the functional constraints that would lead most to assume AI and AR are unrealistic for the industry make it possible to introduce such technologies in this sector. Speciﬁcally, AI within the food and beverage sector will achieve a 65.3% CAGR by 2025, as outlined in a report by ResearchandMarkets. Furthermore, the food and beverage industry will experience a growth in AI-guided chatbots, which help consumers make faster purchases. Case in point: Nearly 50% of consumers will spend more time in a store or on a company’s website when they feel that that company provides superior customer service. AI chatbots provide this opportunity, and can be used to analyze,

monitor and influence consumer behavior and purchasing decisions. However, the food and beverage industry does have a problem with large-scale deployment of AI and AR. While these technologies can boost efficiency, food and beverage companies have lower profit margins and limited resources. It is impractical for such companies to develop the same investment capital like some of the larger e-commerce sites can. The costs of AI are not cheap, and leading technology companies spend more than $650 million annually to create such resources, according to the ResearchsandMarkets report. Paired with consumer demands for faster, more affordable and more easily accessible food options, the use of AI in the food and beverage supply chain can seem impossible. But, the benefits of using such technologies to fuel stronger profit margins, realizing the

www.foodlogistics.com

3/6/20 1:36 PM

Bo an

An of rec big C foo of im ab vis dis po allo on de con fro ing

En op

Fre gro pro go to re

s. ge h

ge -

potential health impacts of more traceability, improving inventory management and more can help food supply chain leaders make the tough decisions and build the business case for investing in these innovative technologies today.

Boosting profitability and lowering risk An IBM Global survey found 84% of chief supply chain officers recognize a “lack of visibility” as the biggest challenge they face. Comparable to manufacturers, food supply chains need an infusion of AI, analytics and blockchain to improve visibility, boost profitability and lower risks. Improved visibility is essential to minimizing disruption, and combined with the power of AI, more visibility can allow replenishment systems to run on their own, self-optimizing ordering processes, connecting with consumers to move more foods from shelf to table and understanding where risks reside.

Enabling inventory optimization Fresh foods are problematic for grocers. Nearly 40% of food that’s produced in the United States goes to waste, and nine out of 10 top grocers don’t publicly report their total

re sihe an

www.foodlogistics.com

FLOG0320_36-37_Softwar/Tech.indd 37

food waste, according to analysis by the Center for Biological Diversity, Tucson, Ariz., and the ‘Ugly’ Fruit and Veg Campaign. Plus, the variety in seasonal availability can influence consumers’ purchasing decisions. The solution lies in improving inventory management of fresh foods. AI-guided inventory management systems could leverage pointof-sale data, information collected from consumers’ social media accounts, marketing data and other sources to refine fresh food replenishment and stocking.

Predicting demands based on various factors The use of AI and AR technologies also help food supply chain leaders better plan for demand. While this involves inventory management, it also goes a long way in predicting potential disruptions, such as the more recent outbreak of the coronavirus. While the coronavirus represents a problem for manufacturers, consumers around the globe will look to the food supply chain with suspicion. Remember, food and beverages are what we eat and drink, and that is the easiest method to contract an illness. Thus, even when a potential health concern does not necessarily affect the farm-to-fork supply chain in the United States, U.S. food and beverage supply chains must ensure disruption-free operations and cut off the opportunity for such health threats to contribute to distrust. In a sense, this is the consumer confidence-building aspect of AI that merges with inventory optimization. Ongoing

improvements within inventory management and better demand planning reduce waste, help supply chain leaders avoid unnecessary risks and reassure customers of food and beverage safety. AI and AR enable those capabilities.

Building customer confidence Over the years, U.S. grocers have experienced an increase in criticism and demands for more transparency. The current processes and technologies in place do a poor job of allowing for true traceability from farm to fork. AI combined with blockchain can provide the immutable data needed and proof required of the world’s major food supply chains to guarantee safety, quality and consumer confidence. AR-enabled glasses, for instance, can help farm workers identify when fruits and vegetables are ripe. The same technology could connect to blockchain-based systems to create the unchangeable record of origin. AI-guided systems could use the information gathered from this point to compare food availability to incoming grocer and restaurant orders. It is an ecosystem of automation and continuous improvement.

AI going forward in 2020 The food supply chain is under constant attack from risks, including the spread of bacteria and foodborne illnesses, uncertain weather, political influences and more. Regardless, leaders of the food supply chain must work to mitigate these risks and ensure the world can still eat safely tomorrow and well into the future. By using AI and AR, food chains can finally attain a little slice of peace of mind and avoid major disruptions. In addition, AI and AR will continue to advance and offer new opportunities to improve food supply chain management and end-to-end visibility.

MARCH 2020 | FOOD LOGISTICS

3/6/20 1:37 PM

SECTOR REPORTS

OCEANS & PORTS

HOW A FOOD-FOCUSED PORT

POSITIONS FOR THE

FUTURE

Vessels on berth and working at Virginia International Gateway. The Port of Virginia.

TONY SALINO, DIRECTOR OF OCEAN CARRIER, PORT OF VIRGINIA

Owners of perishable cargo need reliability, predictability and capacity in their supply chains.

Supply chains are complicated, and moving food – perishables and refrigerated goods – adds another layer to the effort of transporting this valuable, time-sensitive cargo. But, as this segment of cargo continues to grow, so too does the competition. As ship lines consolidate, larger vessels are calling on ports on both coasts. However, they’re taking on and discharging larger amounts of volume at a smaller number of ports. Case in point: Container vessel size in terms of twenty-foot equivalent unit (TEU) capacity calling on The Port of Virginia, Norfolk, Va., increased by nearly 70% from 2014-2019. The largest vessel in 2014 had a capacity of 8,500 TEUs. In 2019, that ﬁgure ballooned to 15,300 TEUs. While these larger vessels may create challenges for

FOOD LOGISTICS | MARCH 2020

FLOG0320_38-41_OceanPorts.indd 38

smaller ports, they also present opportunities for those willing to invest. In October 2017, The Port of Virginia began participating in the USDA’s pilot program, which allowed imports of certain refrigerated fresh fruits from South America. Under the program, Virginia could import cold-treated containers of blueberries, citrus and grapes from Peru; blueberries and grapes from Uruguay; and apples, blueberries and pears from Argentina. The port completed that program in 2018, and shortly thereafter, private refrigerated warehouse owners began making parallel investments to handle the cold and frozen cargo once it left the terminal. Because of the time-sensitive nature and the need for constant temperature control, refrigerated cargo opens an opportunity for ports to provide a needed service while growing their volumes and revenue. For instance, Virginia is working to diversify its cargo mix, and an area of focus is refrigerated cargo. The Port of Virginia is East Coast’s leading exporter of vegetables, and current developments combined with ongoing investments has the port optimistic about its future in

www.foodlogistics.com

3/6/20 1:34 PM

O rel an Th go an pro ne itse T con me car cha tho de to ser T a$ inf in e wo exp Int

go rt

ng n

this area of business. Owners of this cargo need reliability, predictability, capability and capacity in their supply chains. They want assurances the cargo is going to arrive, or depart, on time and be well taken care of in the process. More importantly, they need this experience to repeat itself consistently. That’s why The Port of Virginia continues to make strategic investments to meet the needs of those cargo owners. As the industry changes, the ability to listen to those needs and respond is the determining factor in a port’s ability to provide world-class and reliable service to all users. The Port of Virginia launched a $1.5 billion investment in its infrastructure in 2015, and began in earnest in 2017 when it started work on a $750 million capacity expansion project at Virginia International Gateway and Norfolk

www.foodlogistics.com

FLOG0320_38-41_OceanPorts.indd 39

Commitment to Service The Port of Long Beach is the greenest, fastest, most efficient gateway for goods moving to and from Asia and marketplaces across America. We’re keeping our competitive edge while working sustainably, offering unrivaled customer service while we build the Green Port of the Future.

MARCH 2020 | FOOD LOGISTICS

3/6/20 1:34 PM

SR: OCEANS & PORTS

continued

ort The P

a variety of consumer goods, agricultural products, food and more moved across Virginia’s port. Those goods and commodities moved to and from the port via an expanding transportation network that reaches throughout the Mid-Atlantic and into the Midwest via trucks, double-stack trains and barges. Still, the port isn’t solely focused on refrigerated cargo; it moves signiﬁcant amounts of import coffee beans for processing, packaged grocery products, grocery exports for the Military Exchange and export grains used as ingredients in prepared foods. Virginia’s position in the logistics supply chain for food exports and imports is expanding. This cargo is valuable, and it is up to ports to move it safely and reliably. Developing long-term relationships is vital to ensure that this important business segment continues to meet its needs to promote growth, prosperity and responsible stewardship during transport.

The Port of Virginia.

the port’s Richmond Marine Terminal (RMT) can move up to 135 containers – many of them International refrigerated thanks to a multi-plug Terminals (NIT). When generator – 100 miles up the James complete this year, the port will River where they can be transincrease its annual container Barge on berth ported to their final destinations. capacity by 40%, double its rail at Richmond Several major grocery chains have capacity, lengthen its berths to Marine Terminal. located distribution facilities near accommodate multiple ultra-large RMT due to the barge service. container vessels, transition NIT The port also moved nearly to a rail-mounted gantry crane 70,000 containers of refrigerated goods last [fiscal] year, The port also moved nearly 70,000 containers and through its of refrigerated goods last [fiscal] year, and investments, doubled through its investments, has doubled its its capacity to capacity to handle cold cargo. handle cold cargo. This opens up many new possibilities for ocean carriers and cold cargo owners. operation and double the number In fiscal year 2019 (July 1, 2018of refrigerated plugs to more than June 30, 2019), more than 2.8 2,300. million TEU containers filled with In late 2019, dredges began widening and deepening the port’s channels to 55 feet to accommodate safe, two-way vessel traffic. Quickly transporting that cargo to inland destinations is another opportunity to provide a valuable Rail operation service to cargo owners. at Norfolk One of the most efficient and efInternational fective ways to do that is by barge. Terminals. Daily barge service to and from

inia. of Virg

FOOD LOGISTICS | MARCH 2020

FLOG0320_38-41_OceanPorts.indd 40

www.foodlogistics.com

3/6/20 1:34 PM

2020 Educational Webinar Series STAY ON TOP OF THE LATEST TRENDS AND BEST PRACTICES IN THE GLOBAL FOOD AND BEVERAGE SUPPLY CHAIN.

April 15

Blockchain in 2020 and Its Impact on Food Supply Chains From enforcing traceability to ensuring food safety, blockchain provides an assortment of benefits to today’s supply chains. But, how and where do companies start? Discover how this specific technology is in position to transform and impact supply chains for tomorrow, and how to get your company optimized for blockchain.

e se

May 13

B2B vs. B2C – How Fleets Adapt to the E-Commerce World As e-commerce continues to grow, today’s food processors and grocery retailers are reconfiguring supply chains in order to deliver products in multiple channels. However, from a supply chain standpoint, doing so creates an assortment of challenges. Here’s how fleets can tackle the B2C side of the business, while still maintaining a B2B presence.

ns,

June 17

How Food Safety Drives Cold Chain Logistics

d g-

Food safety in the supply chain continues to be a sticky point. And, as FSMA laws and other federal regulations continue to change, companies are grappling with how to maintain a safe food footprint. Find out how your company can master the food safety challenges within a supply chain network.

September 16

Achieving Zero-Waste Footprint – Tales of a Sustainable Supply Chain

Achieving a sustainable supply chain is a vital element in many company’s corporate sustainability reports. Find out from this case study on how to achieve a zero-waste footprint in a world of waste.

October 14

How Building Design Improves Cold Storage Efficiency

te le

From insulated metal panels to recycled building materials to solar roofing options, today’s cold storage facilities are built with sustainability in mind. Find out how certain building materials and design-build elements help a site achieve a sustainable footprint.

December 2

The Future of Food Supply Chains From blockchain and artificial intelligence to automation and robotics, what is the future of food supply chains? How will technology continue to impact the way product moves from Point A to Point B? Check out what’s to come supply chain-wise in 2021.

DETAILS, REGISTRATION & ON-DEMAND WEBINARS

FOODLOGISTICS.COM/WEBINARS

To become an expert panel sponsor, contact:

Jason DeSarle, Group Publisher | 440-476-9526 | jdesarle@acbusinessmedia.com

FLOG0320_38-41_OceanPorts.indd 41

3/6/20 1:34 PM

FOOD (AND MORE) FOR THOUGHT

YOUR FAVORITE BY MATT DRAKE, HOWARD ROGERS

NEWS & RESOURCES AT THE TIP OF

YOUR FINGERS.

VISIT FOOD LOGISTICS ONLINE FOR: • Digital editions of the magazine • Channels of content specific to technology, cold chains, 3PL/4PL, and risk/compliance and more • Upcoming educational webinars • Nomination information for the following industry awards: Food Logistics Champions, Top Green Providers, Top 3PL & Cold Storage Providers, and FL 100+ • E-newsletter subscriptions • And more!

www.FoodLogistics.com

FOOD LOGISTICS | MARCH 2020

FLOG0320_42-45_FoodForThought.indd 42

www.foodlogistics.com

3/6/20 2:19 PM

FOOD (AND MORE) FOR THOUGHT

BY KYLE MCANDREW

Implementing Traceability Programs

for Safer Supply Chains T Kyle McAndrew Director of enVista’s supply chain solutions practice

raceability is the understanding of which path a product took from origin to destination, as well as the product’s history. The terms “path” and “product” have nuances that are important to define. Do we need GPS level route information for a truck driving between manufacturing facility to the manufacturers’ local third-party distributor? Does “product” mean ingredients, individual serialized consumable products or a client’s SKU for a pallet? Determining the specifics of these terms constitutes the scope of traceability, and is the first part of building a strategy for implementation. The concept of blockchain is the gold standard for the structure of traceability, however, the usability of this structure is only as good as the data going into it. In most cases, traceability can be achieved with lower technological barriers if basic standards of identification and data transmission are adhered to. Standardization can be difficult enough intra-company, but becomes especially important when attempting to have visibility among multiple partners. As globalization continues, the need for standards

www.foodlogistics.com

FLOG0320_42-45_FoodForThought.indd 43

increases, and GS1, Ewing Township, N.J., has helped create a global standard to identify products (GTIN) and locations (GLN). Having suppliers, distributors, retailers and consumers “speak the same language” for products and locations is an important platform for traceability. While GS1 is the standard for product and location communication, it is not comprehensive. Users are only required to register their company prefix and sign up for a range of GTINs. The management of assigning, distributing and maintaining GTINs and GLNs is left to the subscriber. Additionally, the definition of a “Lot” is missing from GS1 standards. Best practice suggests that a “Lot” be facility and batch specific. A company should have a master data management framework for GS1 nuances and as a basis for a traceability plan.

Determining scope The first step to a traceability initiative is determining the level of granularity needed for the industry and products. Ownership of a product at different points in time, the product’s value and risk and the partner’s ability to meet these requirements are important components to determining scope. The minimum level of traceability to meet normal recall circumstances would capture the quantity of GTIN and Lot at the final point of delivery. In turn, this enables digital identification of a supplier or brand’s affected product at the location that consumption occurs. If there is a high risk of a product becoming contaminated en-route, then additional tracking is needed. Best practice is to capture the

origin and destination of cases with GTIN, Lot and production date at the time the case is closed and then opened. Gathering these details upon change of product ownership or at “critical tracking events” enables a view of products throughout the entire supply chain. Within today’s modern supply chain, many other data points can be gathered, such as purchase order, invoice number, expiration date, etc. After assessing capabilities to capture these data points and determining how to validate and use the traceability data, the scope can be further reﬁned. However, each additional data element and capture point will create more data to absorb and validate, which increases technological/operational complexity.

Technology to identify, capture and share Traceability data is stored (identiﬁed) via a barcode, RFID tag or similar technology on the case or pallet, and then must be extracted (captured) and shared to a central repository. A current state assessment should be completed to analyze feasibility and ROI to implement different technological and operational scenarios at locations where the data is identiﬁed. The return on a traceability project is primarily based on the cost avoidance of food safety incidents, reduction in disposal of the non-affected product and ancillary visibility enhancements. While advanced technology is becoming more cost-effective, barcodes (one or two dimensional) have the highest adoption rates, as they are the most reasonably priced technology to implement. Technology to share and store

MARCH 2020 | FOOD LOGISTICS

3/6/20 2:19 PM

FOOD FOR THOUGHT

continued

data represents less of a cost burden than the technology required to identify and capture. There are many transmission methods (CSV, EDI, API, etc.) and options for data repositories. Value Added Networks (VANs) and

After determining the capabilities and future progression of the capture systems, the requirements for identiﬁcation (labeling, RFID, etc.) should be developed and distributed to upstream partners. The partner’s willingness and ability to comply with identiﬁcation requirements are critical components to understand, as without this, traceability is not possible downstream.

Engaging with partners Suppliers, distributors, customers and other partners third-party traceability in the supply chain have highly varying levels of traceability services are the best option for knowledge and technological most data capture strategies, as prowess. Onboarding partners they consist of experienced onboarding resources, offer standard to traceability initiatives should consider partners with the templates, can handle multiple exfurthest to progress. Relationship change methods and provide tools building and detailed project for validation and business rules. tracking are vital to completing the transition. Upon engagement, gaining buy-in ADVERTISER INDEX from upper management ADVERTISER ....................................................................................... PAGE and identification of key personnel related to product Controlant .......................................................................................................... 23 identification and data Cooltrax Americas LLC ..................................................................................... 21 exchange will set the project up for success. Providing DAMBACH Lagersysteme GmbH & Co. KG ..................................................... 31 those individuals with clear DSC Logistics ...................................................................................................... 2 requirements and timeline expectations based on the Great Dane Trailers Inc. ..................................................................................... 46 initial assessment will give the partner the information ID Label, Inc ........................................................................................................ 9 needed to confirm its ability MSC Mediterranean Shipping Company .......................................................... 45 to complete the initiative. Old Dominion Freight Line Inc. ............................................................................ 5 PLM Trailer Leasing ........................................................................................... 24 Port of Long Beach ........................................................................................... 39 Uline .................................................................................................................. 25 Utility Trailers ..................................................................................................... 19 Visible Supply Chain Management ................................................................... 15

FOOD LOGISTICS | MARCH 2020

FLOG0320_42-45_FoodForThought.indd 44

Some partners may ﬁnd the investment in technology or timelines to meet requirements too steep. As the industry’s need for traceability increases and the potential for an FDA mandate heightens, the instances of this argument are likely to decrease.

Tracking adherence to the requirements and timelines and incorporating them into the KPIs used for rating partners is best practice to ensure onboarding and ongoing completeness of traceability.

Validating and using data Determining the method in which traceability data is to be validated and used is the final pillar of developing a strategy. If data is not complete, accurate and accessible, then the goals of traceability can not be met. Standard systems and processes of data sharing should ensure fundamental structural integrity, but beware, under or over-reporting validation requires additional effort. A comparison of traceability data to invoiced data is one method to ensure completeness, as there are typically robust processes to ensure accurate invoices. Once this comparison becomes the standard, the continued maintenance of validation can be minimal, however, it is not full proof. A mock recall system with deep, statistical-based audits is suggested to confirm the accuracy and usability of the data. In the event of a food safety or quality incident, the affected product needs to be quickly identified by quantity and location. The greater the detail, the faster the right product can be removed, thus reducing risk to customers and the probability of incorrectly discarded, non-affected inventory. Communication between the parties involved in a food safety issue, as well as those that can access traceability data, should be streamlined and include precise data elements. Operators of the traceability system then need to provide the quantity and location information to the partners with instructions on the action required. The development of a strategy to approach traceability with these elements in mind will reduce the time and effort required to implement it. And, the faster these initiatives are implemented, the safer the supply chain. www.foodlogistics.com

3/6/20 2:20 PM

FLOG0320_42-45_FoodForThought.indd 45

3/6/20 2:20 PM

puts you in command

Isnâ&#x20AC;&#x2122;t it time telematics did more? More than just GPS, FleetPulse is a robust, powerful platform that increases uptime by delivering fleet data and insights in a single integrated solution so that youâ&#x20AC;&#x2122;re always connected and in command. Fleet-Pulse.com

Great Dane, FleetPulse, and the oval are registered trademarks of Great Dane LLC. 745 DMD 1019

FLOG0320_42-45_FoodForThought.indd 46

3/6/20 2:20 PM