Congratulations to this year’s Top 3PL & Cold Storage Providers Award winners. Issue No. 238 May/June 2023 FoodLogistics.com E-COMMERCE VS. RETAIL STATE OF PORTS 3PL SOFTWARE
ADOPTING & ADAPTING KEY TO COLD CHAIN SUCCESS
Maximizing customer value through continuous improvement and innovation, CJ Logistics provides customers visibility to supply chain data to help them improve, optimize and make informed decisions. Data is transformed into intelligence.
WAREHOUSING TRANSPORTATION FREIGHT FORWARDING SUPPLY CHAIN CONSULTING
QAD
Editor-in-chief Marina Mayer outlines the changes to many of Food Logistics’ upcoming awards, designed to help companies and executives better put it on the board.
Here’s how owners and operators can find compliance and make sense of the changes to come.
ON THE MENU May/June 2023 ISSUE NO. 238 www.FoodLogistics.com 10 COVER STORY Hybrid Shoppers’ Impact on Grocery Retail Channel
companies are doing to
shopping. SOFTWARE & TECHNOLOGY Temperature Tracking in Cold Food Chains
details why temperature tracking technology is an effective solution for ensuring food safety. SAFETY & SECURITY Supplier Relationship Management
Studies show hybrid shoppers are dominating the scene. Here’s what
cater to both online and in-store grocery
enVista
Inc.
how supplier relationship management tools can address supply chain problems. 32 WORKFORCE DEVELOPMENT DEI in the Cold Chain
why there’s still more work to be done. 34 3PL / COLD CHAIN Technology Gives More Than Just Data for 3PLs Here’s a rundown of top software and technologies in the 3PL/cold chain space. 14 WAREHOUSING Importance of Last Mile in Grocery
runs through
Here’s
outlines
last-
logistics
retailers has become increasingly important. 26 TRANSPORTATION IMO 2023
Transervice Logistics
why
mile
for grocery
28 WEB EXCLUSIVES • Premium Content:Insights, Trends, Technology, Best Practices foodlogistics.com/premium-content • Women in Supply Chain Forum WomenInSupplychainForum.com • Supply Chain Network Virtual Summit SCNSummit.com COLUMNS FOR STARTERS 04 How Food Logistics’ Awards Put it on the Board
DEPARTMENTS 06 Farm To Fork
Food on the Move AWARD Top 3PL & Cold Storage Providers Recognizes leading 3PL and cold storage providers in the cold food industry. 18 32 www.foodlogistics.com MAY/JUNE 2023 | FOOD LOGISTICS 3
08
FOR STARTERS BY MARINA MAYER, EDITOR-IN-CHIEF
HOW OUR AWARDS PUT IT ON THE BOARD
For years, Food Logistics has awarded several companies and professionals with different industry awards. These awards are designed to recognize and celebrate the many achievements of the cold food chain–both on and off the field.
They’re designed to provide an avenue for companies and executives to showcase their wins and the MVPs behind those wins.
That’s why this year, we revamped our awards and the awards process, so that companies and their industry executives could better hone in on the home runs and focus on the stats that matter.
For starters, this year’s Top 3PL & Cold Storage Providers award, page 18, showcases how adopting and adapting are key to success within the supply chain. Here, you’ll find a breakdown of the Top 5 services provided by third-party logistics (3PL) providers and by cold storage providers, and discover the top technologies these winners are investing in. This information has never before been collected and/or shared with our readers; but it’s indicative of the future of the 3PL and cold storage
space and how technology keeps the cold chain moving.
Also brand new to the Food Logistics audience is the ability to participate in our Women in Supply Chain award, which honors those female supply chain leaders and executives whose accomplishments, mentorship and examples continue to set a foundation for women in all levels of a company’s supply chain network (submissions close July 14). Think co-workers, bosses, partners, customers, clients, drivers, managers and more from providers, manufacturers, associations, organizations, non-profits, universities, consulting firms and more.
Also new this year is the overhaul of our Top Software & Technology award (submissions close Sept 22). What previously was an award honoring the providers of the top supply chain software and technology is now a new product award, focusing more on the actual new software and technology solutions. This award is open to all categories/ markets within the Food Logistics audience and will feature a breakdown of sub-categories to better outline and showcase the different markets to our readers.
What better way to put it on the board than to be recognized by your peers, vendors and co-workers for yours and your company’s hard work and successes?! Now is the time to get involved with our many awards programs and help recognize and celebrate the wins and the MVPs within your company as well as with your vendors, partners and more.
Go to https://www.foodlogistics. com/awards to learn more.
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to Survive Your Next Relabeling Project Time to Relabel Your Racking? We’ve got you covered with ID Label’s advanced labeling solutions. A new WMS, a rack reconfiguration, or simply replacing damaged or missing barcode labels. The reasons to relabel your warehouse locations are numerous. But, let’s face it, no one looks forward to these labor-intensive projects. ID Label’s Clean Release™ and Eco Beam Renew™ are two innovative products that help eliminate the time and hassle of relabeling. Our experienced crew can even install your new labels for a turnkey solution. We call that survival of the smartest. Contact us today to request product samples or a quote. 800-541-8506 • info@idlabelinc.com idlabelinc.com When We do The Barcodes, You Can Do More
How
AI-Powered Accident Prevention Software
CompScience Insurance Services released its artificial intelligence (AI)-powered Intelligent Safety Platform, an accident prevention program for the logistics, supply chain, warehousing and manufacturing industries. The risk assessment generates actionable analytics using any workplace video source. To initiate a risk assessment, a company shares a combination of prior injury data, video and other relevant information. CompScience then uses its $100 billion in U.S. injury data and 1 million hours of video data to provide benchmarks against similar companies within the same industry and location.
Scan the QR code to learn more.
https://foodl.me/a3pbl1
Merging IT, OT to Improve Food Safety
To ensure the successful implementation of informationenabled manufacturing in the future, manufacturers must eliminate the disconnected networks and isolated automation systems. By merging their operations technology (OT) and information technology (IT) into a single network architecture, manufacturers can establish a seamless connection and enhance collaboration among all processes, people and technologies that impact product safety and quality. Todd Gilliam, Americas industry manager and CPG of Rockwell Automation, explains how modernization can improve food safety practices.
Scan the QR code to learn more.
https://foodl.me/bdytmq
U.S. eGrocery Sales Rise to $8.8B
The U.S. online grocery market finished in April with $8.8 billion in total sales, up 1.5% compared to last year, according to the monthly Brick Meets Click/Mercatus Grocery Shopping Survey. The year-overyear growth in e-grocery sales was partly driven by an increase in monthly active users, which climbed more than 5% in February compared to the same period in 2022. Meanwhile, cross-format shopping between grocery and mass remained near 30% for the month and was up 300 basis points vs. a year ago.
Scan the QR code to learn more.
https://foodl.me/ofg5wv
FARM TO FORK NEWS FROM ACROSS THE FOOD SUPPLY CHAIN Daily Updates at FoodLogistics.com 6 FOOD LOGISTICS | MAY/JUNE 2023 www.foodlogistics.com
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Workforce, Risk Mitigation Still Top Priorities for Supply Chains
A new report released by MHI and Deloitte finds that 74% of supply chain leaders are increasing their supply chain technology and innovation investments, with 90% saying they are planning to spend over $1 million, an increase of 24% over last year. Meanwhile, 36% plan to spend over $10 million, up 19%. Hiring and retaining qualified workers (57%) and the talent shortage (56%) were the top supply chain challenges cited by survey respondents. And, 41% of respondents are reskilling/upskilling workers for emerging technologies, 34% are recruiting for skillsets for future needs and 27% are working to create a culture of innovation.
Scan the QR code to learn more.
https://foodl.me/xk72cw
Micro-Fulfillment Centers Achieve Supply Chain Stability
2022 saw a lot of instability within the supply chain. From port strikes and rail strikes to inflation, driver shortage and more, industry experts predict it may take supply chains close to 2-3 years to turn around. Glenn Koepke, GM of network collaboration at FourKites, details the importance of micro-fulfillment centers and supply chain tools in achieving a more stable supply chain.
Scan the QR code to learn more.
https://foodl.me/89mjbx
How Discounting Cuts Waste
Supply chains are the backbone of the economy; they’re designed to move goods efficiently, from raw material or finished product in a way that is both timely and ensures profitable unit economics along the way. External factors can play a large role in disrupting the supply chain and cause delays, ingredient shortages, waste and financial losses. Ricky Ashenfelten, CEO and co-founder of Spoiler Alert, explains why it’s necessary to ensure that transportation of food isn’t wasteful.
Scan the QR code to learn more.
https://foodl.me/rpczmd
How Collaboration Can Reduce Environmental Impact
Competition is everywhere. From choosing between electric, hybrid and traditional gas cars to determining if a sugar cone, cake cone or waffle cone should hold that next scoop of ice cream. Dennis Raffa, senior program manager of Zero Waste World for CHEP, gives reasons for how collaboration within supply chains can lessen their impact on the environment.
Scan the QR code to learn more.
https://foodl.me/steawk
FARM TO FORK NEWS FROM ACROSS THE FOOD SUPPLY CHAIN Daily Updates at FoodLogistics.com www.foodlogistics.com MAY/JUNE 2023 | FOOD LOGISTICS 7
@godji10.stock.adobe.com
@GaryPerkin.stock.adobe.com @MihaCreative.stock.adobe.com
FourKites
Same-, Next-Day Direct-Store Delivery
WARP launched DirectFresh, a service enabling perishable shippers with same-day and next-day direct-store delivery. DirectFresh enables shippers to transfer product from cold storage directly to a store or a WARP station (cross dock) within the same day without needing to work with a last-mile delivery service. The service offers shippers an end-to-end solution for their fresh freight, including manufacturer to cold storage transfers and high touch, in-store deliveries.
Scan the QR code to learn more.
https://foodl.me/n2yc2j
Shippers Increasing Spend with Outsourced Providers
A vast majority of survey respondents agree that their corporate leadership has a good understanding of how their supply chain works, and is investing in improving supply chain capabilities, according to a Coyote Logistics survey. In fact, 82% of shippers rely on third-party providers to procure capacity for at least some of their freight, with 38% using 3PLs for a majority of their shipments. What’s more, over the past two years, 50% of shippers increased their spend with outsourced providers, compared to only 12% that decreased spend.
Scan the QR code to learn more.
https://foodl.me/xg1ho3
The Evolution of the Gig Economy
The gig economy is exploding. In the United States alone, it is projected to generate $455.2 billion by the end of 2023. Gaurav Deshpande, VP of marketing at HyperTrack, describes how gig work has undergone substantial change in the last few years and what this means for the future of food delivery.
Scan the QR code to learn more.
https://foodl.me/iucgc3
Dropping Fuel Prices Make for Stronger Shippers Conditions
The Shippers Conditions Index (SCI) outlook is a bit stronger than the prior forecast with uninterrupted positive readings well into 2024, according to new stats by FTR. “Declining active truck utilization, lower truck rates and improving rail service should all help shippers experience more favorable conditions going forward. These factors are expected to remain in place through 2023 before starting to swing back toward carriers next year. The improvement will be a welcome respite for shippers who faced higher rates and capacity shortfalls coming out of the COVID-19 pandemic in 2020 and 2021,” says Todd Tranausky, VP of rail and intermodal at FTR. Scan the QR code to learn more.
https://foodl.me/fr98zn
FOOD ON THE MOVE LOGISTICS TRENDS IN THE INDUSTRY Daily Updates at FoodLogistics.com 8 FOOD LOGISTICS | MAY/JUNE 2023 www.foodlogistics.com
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HYBRID SHOPPERS’ IMPACT ON GROCERY RETAIL CHANNEL
For years, it’s always been grocery shopping in store vs. online. Very rarely has this shopper ever been one and the same. For some time, there were customers who only preferred the in-store environment, which included the touching and feeling of produce and other products, while others only opted for the convenience of clicking and collecting from their couch.
Then the pandemic hit, forcing many in-store shoppers to convert to online shopping, and prompting the already-in-place digital shoppers to get even more comfortable.
Fast forward to today, when many grocery retail outlets offer in store, delivery, curbside pickup and more. Can’t find what you’re looking for in store? Or need something right away? Click, order and pick up curbside in less than an hour.
The grocery shopping landscape is anyone’s game.
Enter the hybrid shopper, a customer who shops both in person and online, depending on the product being purchased and the situation at hand.
And, hybrid grocery shopping is on the rise, as outlined in a study by IBM and the National Retail Federation (NRF).
“While many surveyed consumers still place high value on the traditional in-store shopping experience, they also now expect the flexibility to build their own shopping journey, according to the behaviors prevalent to their age range, available tools and the product category they are looking to purchase,” Mark Mathews, VP of research development and industry analysis at the National Retail Federation, said in a press release. “This ‘hybrid’ approach is a fundamental shift in consumer behavior.”
In fact, 84.51°, Kroger’s data analytics subsidiary, revealed a 97% increase in households using two shopping methods, a 62% increase in those using three and a nearly 500% increase in those using all four.
“While some households may have started shopping online out of necessity during the pandemic, those who remain mostly do so because the convenience fits their lifestyle. They can shop at home, any time of day, and they feel it saves them time. Interestingly, 51% still claim staying away from crowds as being a reason for shopping online, but this is down from 68% when we asked this a year ago,” says Kelli Fulton, collaborative projects insights lead, 84.51°. “Getting online shoppers comfortable with having cold items delivered (and having others pick those items) is key to unlocking an increasing household penetration for those categories being delivered.”
Here’s how the rise of the hybrid shopper is impacting the grocery retail channel.
Uptick in brick-and-mortar
Some data shows an uptick in consumer spending in the brickand-mortar grocery retail channel.
“There is an inverse correlation between pricing and discretionary spending. As that spending gets tight, people stop going out to restaurants and they start cooking more at home, which would lead to an increase in grocery spending. It is a little early for that, but you typically see much higher grocery spending during recessionary times than you do at restaurants. This is similar to what we
COVER STORY BY MARINA MAYER, EDITOR-IN-CHIEF 10 FOOD LOGISTICS | MAY/JUNE 2023 www.foodlogistics.com
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The grocery shopping landscape is anyone’s game thanks to the rise in hybrid shoppers.
saw during COVID-19, where grocery stores did really well,” says Andrew Benzinger, business development manager, AutoStore “There will also be a move away from premium grocers, as consumers seek to shop within their budgets. This will mean increased spending at the average grocery store and at discount grocers. In particular, discount grocery stores are going to be the ones that do really well. This will be reflected in private labels and private brand products that have had success within the last year or so, but will likely see a decrease going forward.”
What’s more is, consumers will shop wherever they feel is best for their buck, and sometimes, that’s in store.
“In-store shopping gives the shopper a better sense of all of the savings available to them as it is easier to comparison shop and get access to the best deals. Consumers also feel more confident in their perishable and meat purchases when they make the choices themselves, which keeps consumers coming to the stores,” says Chris Wilson, VP of business development, TA Services.
“The brick-and-mortar grocery retailer has been a cornerstone of how consumers shop and feed their families since the beginning of the industry itself. There is nothing like a face-to-face interaction that allows the consumer to use their own senses to determine which grocery item is best for them and their families. I believe brick-and-mortar grocery retailers will always have a solid place in the market,” adds Dani Etkin-Spigelman, chief revenue officer, TA Services.
Furthermore, a study from PYMNTS in collaboration with ACI Worldwide reveals that a majority of consumers still opt to do the bulk of their grocery shopping in stores. However, e-commerce is slowly gaining share, product category by product category.
“Brick-and-mortar grocers may still retail the lion’s share of sales of produce, meat and other fresh items, but as online players pick off their consumer packaged goods (CPG) customers one by one,
traditional grocers will be left with only a fraction of the sales they once had,” the study says.
Delivery subscriptions and drastic price decreases online will continue to sway customers to the digital shopping world.
On the other hand though, online’s share of total grocery spending fell 30 basis points to 12.9% in February. Excluding ship-tohome, since most conventional supermarkets don’t offer it, the adjusted contribution from pickup and delivery dropped 60 basis points and finished at 10.5% for the month, according to a Brick Meets Click/Mercatus survey.
“Given that ongoing price inflation is clearly influencing shopping behaviors, grocers should promote ways customers can save more money,” says Sylvain Perrier, president and CEO, Mercatus. “Grocery retailers can consider highlighting store brands, offering pricing promotions, creating personalized digital coupons, and implementing variable fee structures that lower fees for customers and reduce the cost to assemble.”
Last-mile’s role in a hybrid world
Last-mile delivery plays an important role in the e-commerce side of grocery retail. Pre-pandemic, last mile wasn’t really an option for many grocers. But thanks to the growing adoption of buy-online/ pickup-in-store (BOPIS) and even direct-to-consumer (D2C), the last mile has become an extension to many of today’s grocery retailers’ platforms.
Despite the fact that last mile is the most expensive leg of the chain, the last mile is also interesting “because it’s where all the money is made or is lost, whether retailers have customers come to pick up their grocery orders or have products delivered directly,” says Benzinger. “The main challenge of the last mile is going to continue to be labor availability. How do companies find people in the gig economy to do these deliveries and how can organizations
There will also be a move away from premium grocers, as consumers seek to shop within their budgets. This will mean increased spending at the average grocery store and discount grocer.
www.foodlogistics.com MAY/JUNE 2023 | FOOD LOGISTICS 11
AutoStore
ensure that these individuals have a passion to take care of the product? Overall, the biggest challenges to the space will be labor and the equipment used to maintain cold product quality in the last mile.”
And, because it deals with temperature-controlled products, the last-mile leg for e-grocers can become cumbersome.
“Grocery delivery can be a very expensive way for retailers to get food in the hands of consumers. Three temperatures are required in the delivery vehicle, making grocery delivery costly and challenging. A more economical—but potentially risky— strategy is using a delivery service that doesn’t protect the cold chain, such as DoorDash or Uber Eats. This method leverages the ‘shared use’ benefits of the supply chain, such as the sharing of equipment and resources to maximize efficiencies,” says Rick MacDonald, president of retail, DHL Supply Chain.
With the last-mile space rapidly expanding and continuing to show signs of growth, “we see an indication of its great importance. I expect this space to continue seeing strong growth, and experience significant change and ongoing upgrades based on both objective and subjective feedback. Consumers enjoy the ease of e-commerce grocery retail; it saves valuable time and energy. That said, many other consumers appreciate picking their own grocery items and the ability to adjust if another item looks more appealing,” says Etkin-Spigelman.
In fact, last-mile logistics for groceries has become so important that its increased demand has even caused a shift in available warehousing in the cold chain.
“One way grocers have responded to the market shift is to build more warehouses to bring products closer to the end consumer and facilitate same-day delivery. The global demand for warehouses is expected to grow from $285 billion in 2022 to $326.3 billion by 2024. In the United States alone, warehouse space is expected to reach 420-450 million square miles this year,” wrote Dave Csontos, SVP of logistics at Transervice, in his expert column.
“While there are a number of challenges in last-mile cold chain, there are opportunities as well. It just requires some creative thinking, data analytics and a focus on partnerships to be successful,” Csontos adds.
The evolution of e-grocery
When envisioning how the in-store vs. online war will play out for the remainder of 2023, some industry experts predict e-commerce to pretty much stay the same.
“A few players in that space will see below single-digit growth and most companies will be at a plateau or down in low single digits. This is mainly because of the competition of consumers going back into stores. That’s going to be the biggest challenge,” says Benzinger. “Customers are going to continue to expect high inventory fill rates, high accuracy, an outstanding
customer experience when it comes to pick-up or notifications and geofencing. All of these things have transformed from being really nice features that separate a company from the rest of the industry to now just being basic tablestakes to get started. That’s another challenge.”
Meanwhile, some industry experts predict in-store sales to soar as more retailers adopt technology, increase warehousing and strive to become all things for all consumers.
“Brick Meets Click forecasted that e-grocery sales, which encompasses online orders received via pickup, delivery or ship-to-home services, will fall nearly 3% while in-store sales rise by just over 3% in 2023. These divergent trends reflect in part a return to more in-store shopping as concerns about respiratory infections wane and cost considerations climb, driven by inflation and the loss of pandemic-related payments that expire. Within e-grocery, we expect that delivery will face the stiffest headwinds in 2023 as those who like shopping online but are looking to stretch a buck will shift toward pickup,” says David Bishop, partner at Brick Meets Click.
For its part, 84.51° data shows a consistent percentage of households purchasing in-store month to month.
“In our most recent Real Time Insights monthly survey, we asked shoppers how they plan to change their grocery shopping habits going into the summer, and about 40% of them claim they will do less shopping online for their groceries (55% claim they will do the same amount of online grocery shopping),” Fulton says.
In the long-term though, online grocery delivery is expected to maintain an upward growth trend with an estimated CAGR of 29% during 2020-2024, according to Deloitte
Economists at Future Market Insights say that online grocery shopping has become one of the fastest growing sectors in the U.S. retail market, as outlined in this cover story from September 2020.
In fact, online grocery sales will surpass 20% of the overall U.S. grocery retail market in the next five years, according to Mercatus/Incisiv predictions. From there, online’s share is projected to expand to 11.1% of $1.124 trillion in grocery sales in
12 FOOD LOGISTICS | MAY/JUNE 2023 www.foodlogistics.com COVER STORY continued
AutoStore
Some industry experts predict e-commerce to pretty much stay the same.
2022 and to 20.5% of $1.285 trillion in 2026.
“I think we’ll see a big trend in cost vs. convenience and store experience vs. added online options and amenities. We’ll also see AI and other automation making the brick-and-mortar experience faster and more efficient,” says Wilson.
Disrupting the already disrupted
While e-commerce continues to disrupt the supply chain, specifically the grocery retail space, it also experiences its own set of disruptions.
Factors such as inflation, labor shortage, lack of warehousing and more pose ongoing challenges to a segment that was thrown into pivot-mode almost overnight thanks to the COVID-19 pandemic.
MacDonald says it’s important to consider the ongoing rise in inflation, for starters.
“If inflation begins to decline, consumers may settle back into their pre-inflation shopping habits,” he adds. “But for now, we expect to see a continued increase in e-commerce as we’ve seen in years past, with brick-and-mortar retailers still owning the majority of consumer grocery purchases. Brick-and-mortar retailers providing click-and-collect services will continue to attract customers and provide a new and easier option for shoppers looking to save time and money.”
Likewise, inflation, recession and the economy will continue to dictate the direction that the in-store vs. online war takes in 2023.
“What does the consumer value more— extra time or extra savings? For some, the extra time provides more opportunity, while for others, the added cost is just not worth it. The economy will decide which group grows in 2023,” says Wilson.
Another trend is the rise in re-sellers, thus further complicating the last-mile leg of the transaction.
“Many major brands are offering their goods directly to consumers, cutting out the retailers. Additionally, we’re seeing a rise in re-sellers—or online marketplaces—of commodity-type items that are generally non-perishable or shelf stable. These re-sellers allow consumers to subscribe and/or spot buy products that they prefer to have delivered directly to their home rather than pick up at a traditional grocery store,” says MacDonald.
However, the effects of the rapid adoption of e-commerce platforms by consumers is still not fully understood, according to Etkin-Spigelman.
“The pandemic was highly influential and adapted how consumers engage with the retail world. As professionals, we are still in a ‘wait and see’ phase. Still, we need to remain nimble and be ready for changes in the market as they occur, including any variances in the buying
patterns of consumers,” adds Etkin-Spigelman.
What’s more is, grocers are in a bit of a balancing act as they determine how to cater to consumers who prefer shopping online, says Benzinger, while maintaining experiences for those who regularly shop in-store.
“It’s important for retailers to think about how they will compete against the alternatives in an effort to capture as much of a shopper’s basket as possible,” says Benzinger.
Whichever way the future of grocery shopping turns, the hybrid shopper is here to stay and already impacting the future of grocery retail.
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84.51° data shows a consistent percentage of households purchasing instore month to month.
Last-mile delivery plays an important role in the e-commerce side of grocery retail.
3PL/COLD CHAIN BY ALEXIS MIZELL-PLEASANT, MANAGING EDITOR 14 FOOD LOGISTICS | MAY/JUNE 2023 www.foodlogistics.com
OFFERS
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TECHNOLOGY
MORE THAN JUST AUTOMATION FOR 3PLS
A loaded truck waits at a warehouse.
Technology today is all encompassing. In the supply chain, it’s around every corner—working to empower and improve the age-old processes that move and store goods. Technology for third-party logistics (3PL) providers has been pouring from companies like water, and can be found in truly every moving part—from warehouse management systems (WMS), transportation management systems (TMS), automation in trucking and warehouses, to fleet managing software or artificial intelligence (AI) telematics and data analytics.
Demand for technology today might look a little different than it did 3 years ago. In 2019, the industry could have never foreseen the rate that supply chains would have to speed up to meet demands set by people spending more time away from each other— at least six feet apart to be exact. The capability demands for TMS and WMS now center around traceability that keeps users and consumers aware of how the product goes from point A to point B, as a necessity in a world becoming increas-
ingly aware of the happenings “behind the curtain.”
The elements that these technology platforms offer is varied. Today, there are certain components that 3PLs might search for to make the most of their investment.
“Route control, government traceability and trackability in consumption, use of sophisticated YMS (quality control checks on refrigerated trailers, inbound product), appointment scheduling, EDI, shelf-life requirements, lot control, automation and sophisticated putaway rules for storage density are several components in demand,” says Charlie Schram, technology and cold chain expert at enVista Plus, food has expiration. When searching for the maximum ability for technology in the space, one could argue that the priority of timeliness trumps all others. In fact, the FDA’s newest rule on requirements for additional traceability records details required trackability recordkeeping beyond pre-existing ones, with compliance completion date currently set for Jan. 20, 2026.
Chris Wilson, VP of business at TA Services explains that “successful capacity planning, demand forecasting and optimal transportation route planning all heavily rely on real-time data insights. Without proper information, it is impossible to make fast-paced, accurate decisions.”
Strategic investment in such technology mitigates risks and helps 3PLs achieve compliance in more spaces than one.
Automation in trucking might take shape in the form of new refrigeration technology, where engineless units are elevating efficiency, reliability and sustainability
There’s also automation happening on the freight brokerage side too, where freight brokers are utilizing capacity management systems to digitally match shippers’ loads to carriers based on data over time. Or, in the warehouse, drone inventory monitoring that inspires faster, more efficient processes to cut costs and improve productivity and sales because, according to Sankalp Arora, CEO and co-founder of Gather AI, “drone-powered inventory monitoring allows you to see where all
www.foodlogistics.com MAY/JUNE 2023 | FOOD LOGISTICS 15
@romaset.stock.adobe.com
A forklift sorts through a cold storage warehouse.
pallets are in your warehouse in real-time, virtually eliminating any risk of misplaced product, potential spoilage, which can be especially risky for high-cost goods or a degraded customer experience.”
Or taking on the crisis of warehousing space by utilizing automated racking systems and robotics to overcome long-standing labor issues.
When it comes to cold storage, electronic data interchange (EDI) is critical.
“EDI saves receivers from having to record data via a radio frequency device or paper, thus reducing the risk of product getting out of its allowable temperature range,” says Schram.
When you consider automated action through AI, drones and robotics in 3PL, what does
all the other data technology actually do?
As an example, optimized scheduling for drivers through GPS technology works to keep arrivals smooth-flowing.
“With technologies such as GPS tracking, we know exactly where drivers are and when they will arrive. By combining these data points with real-time information from the warehouse and yard, we can optimize dock use,” says Charles Miller, EVP for Evans Transportation. “The same technologies can also eliminate other inefficiencies, such as language barriers, paperwork, security and other factors that keep drivers stuck in or outside of docks.”
Further improving the ability and safety for truckers, technology like AI video telematics
can reduce fatalities on the road. Now, Richard Kent, VP of global sales at VisionTrack says, “the new generation of AI video telematics will ensure fleet operators can access the right information at the right time, presented in a way that enables them to achieve significant change and encourage drivers to operate in the most responsible manner. By automating management processes, data analysis and incident detection, they can take advantage of intelligent solutions to keep drivers, road users and pedestrians safe and reduce the number of collisions.”
“There are several reasons why these components are especially necessary in our current market, but most hinge on compliance in industry regulations. Organizations must adhere to government regulations, localized market requirements, food safety standards and personnel safety in the workplace,” explains Schram.
And that means these are critical for helping organizations maintain adherence to those standards.
The current economic climate in the United States seems varied day to day, person
to person. Some constants include the labor shortage and a hyper-focus on sustainability. These issues, Schram says, can be alleviated with technology solutions, where automation can reduce labor costs, quality assurance checks can reduce safety liability and track and trace can reduce waste. And, finding a way to combine these systems “provides a more reliable and cost-efficient delivery of food in the cold chain,” Schram adds.
Reducing human intervention and relying on consistent, rule-based systemic processes can reduce risks overall, and create a visible, dependable environment.
Today’s technology solutions offer a special use and a claim for improvement. It’s enough to make heads spin. One thing it falls flat on though is being, well, human. Good leadership, invested in the knowledge behind regulations in the cold chain, like shelf life, product dating, product mixing, labeling, track and trace, etc., is a necessity in the quest for quality work as a 3PL. When organizational leaders meet that call, that’s when you should hone your focus on finding technology that works for you.
3PL/COLD CHAIN continued 16 FOOD LOGISTICS | MAY/JUNE 2023 www.foodlogistics.com HUGE SELECTION FOOD SERVICE ESSENTIALS π SHIPPING SUPPLY SPECIALISTS COMPLETE CATALOG 1-800-295-5510
FOR SAME DAY SHIPPING
ORDER BY 6 PM
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This outline depicts TMS technology connecting global data in trucking.
BY MARINA MAYER, EDITOR-IN-CHIEF
ADOPTING AND ADAPTING ARE KEY TO COLD CHAIN SUCCESS
From driver shortages to natural disasters, the last 12 months have continued to challenge the third-party logistics (3PL) space. But it’s the 3PLs and the cold storage providers that keep cold food product moving through the chain, despite disruption.
For example, many of this year’s winners offer a variety of 3PL services, including air cargo, bulk/liquid bulk transportation, direct-store delivery, freight forwarding, refrigerated trucking, truckload brokerage and more, and making investments in emerging technologies such as GPS, Internet of Things (IoT), blockchain, food safety, delivery apps and more.
Meanwhile, many of the cold storage services offer their own range of services, from blast freezing and cross docking to inventory management and warehousing/
TOP 3PL & COLD STORAGE PROVIDERS 18 FOOD LOGISTICS | MAY/JUNE 2023 www.foodlogistics.com
distribution management, and investing in technologies like drones, track and trace, cloud-based and more.
3PLs are also innovating in other areas such as warehousing. For instance, a CBRE report reveals 3PLs leased more big-box (200,000 square feet or larger) warehouse space in North America than any other occupier category.
What’s more, over the past two years, 50% of shippers increased their spend with outsourced providers, compared to only 12% that decreased spend, according to
a Coyote Logistics study, and 82% of shippers rely on 3PLs to procure capacity for at least some of their freight, with 38% using 3PLs for a majority of their shipments.
It’s these 3PLs and cold storage providers that work to adopt and adapt to operate in a safer, more efficient manner. That’s why it’s important we honor and celebrate the top 3PLs and cold storage providers and the services they provide.
Congratulations to all of this year’s winners. Here’s some standouts:
www.foodlogistics.com MAY/JUNE 2023 | FOOD LOGISTICS 19
Syfan Logistics
URL: syfanlogistics.com
Worth Noting: Syfan Logistics is in the midst of an expansion project at its Gainsville, Ga., headquarters. The first phase, which adds more office space, is set to be completed in early April. The second phase involves renovation of existing work areas and is expected to be finished in September. Syfan is also adding 46,000 square feet of office space for Syfan Logistics and its sister company, Turbo Sales & Leasing. Another 19,000 square feet is being built out for Turbo’s terminal-tractor maintenance shop. Once completed, the headquarters will be nearly double in size with enough workspace for an additional 125 team members. In 2019, the company completed a 19,000-square-foot expansion of office space.
Transervice Logistics Inc.
URL: transervice.com
Worth Noting: Based in Lake Success, N.Y., Transervice currently manages approximately 25,000 pieces of equipment in over 120 regional and local facilities across North America. Its workforce is some 1,200-strong, including over 1,000 drivers and technicians.
CJ Logistics America
URL: cjlogisticsamerica.com
Worth Noting: CJ Logistics is a specialist in food and CPG logistics, specifically focused on meeting the unique quality and compliance requirements of these industries. CJ Logistics provides capabilities that truly span the entire supply chain from end-to-end and integrate those services across the globe. CJ Logistics is differentiated by its dynamic supply chain leadership and approach to strategic, collaborative partnerships. It’s known for its sophisticated, consultative approach to leveraging supply chain as a critical strategy to achieve customer business goals. CJ Logistics is also known for its expertise in implementing and operating notably large-scale, complex operations. Aligned to its customers’ challenges and goals, CJ Logistics is focused on the development of predictive business intelligence and insights, helping customers stay ahead of changes in regulations, consumer dynamics, retail requirements and emerging technology. With the business based on a foundation of flexibility, its customized solutions, adaptable systems, dynamic networks and responsive leaders and teams provide customers a tremendous opportunity to take charge of change.
TOP 3PL & COLD STORAGE PROVIDERS continued
20 FOOD LOGISTICS | MAY/JUNE 2023 www.foodlogistics.com
OTR Transportation
URL: loadotr.com
Worth Noting: OTR Transportation is a boutique freight brokerage firm that focuses on the food and beverage industry. OTR developed a state-of-the-art freight execution platform optimized to meet the unique needs of its shippers.
Romark Logistics
URL: romarklogistics.com
Worth Noting: For nearly 70 years, Romark Logistics has provided customized, advanced solutions for complex logistics and supply chain needs. As a tech-focused supply chain and logistics provider, Romark has streamlined shipping and order fulfillment by leveraging stateof-the-art technology and automation tools. It also expanded its consulting services to include facility and design, warehouse optimization and automation and technology. Its leadership team maintains an average of 20-plus years of experience and has worked together for many years to create personalized solutions for clients with unique challenges.
www.foodlogistics.com MAY/JUNE 2023 | FOOD LOGISTICS 21
A.N. Deringer, Inc. | anderinger.com
Air Cargo, Continuous Moves, Customs Brokerage, Direct-Store Delivery, Freight Forwarding, Intermodal, Last-Mile, LTL, Meat Inspection, Multi-Vendor Consolidation, Ocean Carriers, Rail, Rail/Truck Transload, TL
Allen Lund Company, LLC | allenlund.com
Air Cargo, Dedicated Contract Carriage, Drayage Service, Intermodal, LTL, Ocean Carriers, Rail, Rail/Truck Transload, Refrigerated Trucking, TL, Truckload Brokerage
Americold Logistics | americold.com
Direct-Store Delivery, Drayage Service, Freight Forwarding, Fuel Service-Managed Transportation, LTL, Multi-Vendor Consolidation, Rail, Rail/Truck Transload, Refrigerated Trucking
Becker Logistics | beckerlogistics.com
Bulk/Liquid Bulk Transportation, Continuous Moves, Dedicated Contract Carriage, Drayage Service, Freight Forwarding, Fuel Service-Managed Transportation, Intermodal, Last-Mile, LTL, Rail/Truck Transload, Refrigerated Trucking, TL, Truckload Brokerage
BlueGrace Logistics | mybluegrace.com
Drayage Service, Freight Forwarding, Intermodal, Last-Mile, LTL, Managed Logistics, Rail, Refrigerated Trucking, TL, Truckload Brokerage
BM2 Freight Services, Inc. | bm2freight.com
Bulk/Liquid Bulk Transportation, Continuous Moves, Freight Forwarding, Fuel Savings Program, Intermodal, Last-Mile, Ocean Carriers, Rail, Refrigerated Trucking, Truckload Brokerage
Capital Logistics LLC | capitallogisticsllc.com
Air Cargo, Customs Brokerage, Dedicated Contract Carriage, Freight Forwarding, Last-Mile, LTL, Refrigerated Trucking, TL
CJ Logistics America | cjlogisticsamerica.com
Air Cargo, Bulk/Liquid Bulk Transportation, Continuous Moves, Customs Brokerage, Dedicated Contract Carriage, Direct-Store Delivery, Drayage Service, Freight Forwarding, Intermodal, Last-Mile, LTL, Multi-Vendor Consolidation, Rail, Rail/Truck Transload, Refrigerated Trucking, TL, Truckload Brokerage
Covenant Logistics | covenantlogistics.com
Bulk/Liquid Bulk Transportation, Continuous Moves, Customs Brokerage, Dedicated Contract Carriage, Direct-Store Delivery, Drayage Service, Fuel Savings Program, Fuel Service-Managed Transportation, LTL, Multi-Vendor Consolidation, Rail/Truck Transload, Refrigerated Trucking, TL, Truckload Brokerage
Coyote Logistics | coyote.com
Continuous Moves, Dedicated Contract Carriage, Direct-Store Delivery, Drayage Service, Intermodal, Last-Mile, LTL, Multi-Vendor Consolidation, Rail, Rail/Truck Transload, Refrigerated Trucking, TL, Truckload Brokerage
Direct Connect Logistix, Inc. | dclogistix.com
Continuous Moves, Dedicated Contract Carriage, Drayage Service, Fleet Leasing, Fuel ServiceManaged Transportation, Intermodal, LTL, Multi-Vendor Consolidation, Refrigerated Trucking, TL, Truckload Brokerage
DSW Distribution Centers, Inc. | dswdist.com
Dedicated Contract Carriage, Direct-Store Delivery, Last-Mile, Parcel Discount Programs, LTL, Refrigerated Trucking, TL
EASE Logistics | easelogistics.com
Air Cargo, Bulk/Liquid Bulk Transportation, Continuous Moves, Customs Brokerage, Direct-Store Delivery, Drayage Service, Fuel Service-Managed Transportation, Intermodal, Last-Mile, LTL, Ocean Carriers, Rail, Rail/Truck Transload, Refrigerated Trucking, TL, Truckload Brokerage
East Coast Warehouse & Distribution | eastcoastwarehouse.com
Air Cargo,Dedicated Contract Carriage,Direct-Store Delivery,Drayage Service,Fuel Savings Program,Intermodal,Last-Mile,LTL,Multi-Vendor Consolidation,Rail,Rail/Truck Transload,Refrigerated Trucking,TL,Truckload Brokerage
Echo Global Logistics | echo.com
Air Cargo, Bulk/Liquid Bulk Transportation, Continuous Moves, Customs Brokerage, Dedicated Contract Carriage, Direct-Store Delivery, Drayage Service, Freight Forwarding, Intermodal, LastMile, LTL, Multi-Vendor Consolidation, Ocean Carriers, Rail, Rail/Truck Transload, Refrigerated Trucking, TL, Truckload Brokerage
Edge Logistics | edgelogistics.com
Freight Forwarding, Intermodal, LTL, Refrigerated Trucking, TL, Truckload Brokerage
Flexcold | flexcold.com
Multi-Vendor Consolidation
FST Logistics | fstlogistics.com
Bulk/Liquid Bulk Transportation, Continuous Moves, Dedicated Contract Carriage, DirectStore Delivery, Drayage Service, Freight Forwarding, Fuel Service-Managed Transportation, Intermodal, Last-Mile, LTL, Rail, Rail/Truck Transload, Refrigerated Trucking, TL, Truckload Brokerage
Global 888 Supply Chain Services, LLC | global888.com
Air Cargo, Continuous Moves, Customs Brokerage, Dedicated Contract Carriage, Direct-Store Delivery, Drayage Service, Dry Warehousing, Freight Forwarding, Intermodal, Refrigerated Trucking, TL, Truckload Brokerage
H&M Bay Inc. | hmbayinc.com
Direct-Store Delivery, Freight Forwarding, LTL, Multi-Vendor Consolidation, Refrigerated Trucking, TL
Hub Group | hubgroup.com
Bulk/Liquid Bulk Transportation, Continuous Moves, Customs Brokerage, Dedicated Contract Carriage, Direct-Store Delivery, Drayage Service, Fuel Savings Program, Intermodal, Last-Mile, LTL, Multi-Vendor Consolidation, Ocean Carriers, Rail, Rail/Truck Transload, Refrigerated Trucking, TL, Truckload Brokerage
InTek Freight & Logistics, Inc. | intekfreight-logistics.com
Air Cargo, Continuous Moves, Customs Brokerage, Dedicated Contract Carriage, Direct-Store Delivery, Drayage Service, Freight Forwarding, Intermodal, Last-Mile, LTL, Ocean Carriers, Rail, Rail/Truck Transload, Refrigerated Trucking, TL, Truckload Brokerage
J.B. Hunt Transport Services, Inc. | jbhunt.com
Air Cargo, Bulk/Liquid Bulk Transportation, Dedicated Contract Carriage, Direct-Store Delivery, Drayage Service, Fuel Savings Program, Fuel Service-Managed Transportation, Intermodal, LastMile, LTL, Multi-Vendor Consolidation, Ocean Carriers, Rail, Rail/Truck Transload, Refrigerated Trucking, TL, Truckload Brokerage
Jarrett | gojarrett.com
Drayage Service, Intermodal, Last-Mile, LTL, TL, Truckload Brokerage
Johanson Transportation Service | johansontrans.com
Air Cargo, Continuous Moves, Customs Brokerage, Dedicated Contract Carriage, Direct-Store Delivery, Drayage Service, Intermodal, LTL, Multi-Vendor Consolidation, Ocean Carriers, Rail, Rail/Truck Transload, TL, Truckload Brokerage
Kenco Group | kencogroup.com
Bulk/Liquid Bulk Transportation, Continuous Moves, Customs Brokerage, Dedicated Contract Carriage, Direct-Store Delivery, Drayage Service, Fuel Service-Managed Transportation, Intermodal, Last-Mile, LTL, Multi-Vendor Consolidation, Rail/Truck Transload, Refrigerated Trucking, TL, Truckload Brokerage
Lineage Logistics | lineagelogistics.com
Customs Brokerage, Dedicated Contract Carriage, Freight Forwarding, Intermodal, Multi-Vendor Consolidation, Rail, Refrigerated Trucking
Longship | longship.us
LTL, Refrigerated Trucking, TL, Truckload Brokerage
Matson Logistics | matsonlogistics.com
Continuous Moves, Direct-Store Delivery, Drayage Service, Freight Forwarding, Intermodal, LTL, Multi-Vendor Consolidation, Ocean Carriers, Rail, Rail/Truck Transload, Refrigerated Trucking, TL, Truckload Brokerage
MegaCorp Logistics | megacorplogistics.com
Air Cargo, Bulk/Liquid Bulk Transportation, Continuous Moves, Dedicated Contract Carriage, Direct-Store Delivery, Drayage Service, Fuel Savings Program, Intermodal, Last-Mile, LTL, Multi-Vendor Consolidation, Ocean Carriers, Rail, Rail/Truck Transload, Refrigerated Trucking, TL, Truckload Brokerage
Next Generation Logistics, Inc. | nextgeneration.com
Air Cargo, Continuous Moves, Intermodal, Last-Mile, LTL, Multi-Vendor Consolidation, Ocean Carriers, Rail, Rail/Truck Transload, Refrigerated Trucking, TL, Truckload Brokerage, Transportation Management Software Solutions
TOP 3PL & COLD STORAGE PROVIDERS continued
22 FOOD LOGISTICS | MAY/JUNE 2023 www.foodlogistics.com
3PL
Nexterus | nexterus.com
Air Cargo, Bulk/Liquid Bulk Transportation, Continuous Moves, Customs Brokerage, Drayage Service, Freight Forwarding, Intermodal, LTL, Ocean Carriers, Rail, Rail/Truck Transload, Refrigerated Trucking, TL, Truckload Brokerage
ODW Logistics | odwlogistics.com
Continuous Moves, Customs Brokerage, Dedicated Contract Carriage, Direct-Store Delivery, Drayage Service, Intermodal, LTL, Multi-Vendor Consolidation, Rail, Rail/Truck Transload, Refrigerated Trucking, TL, Truckload Brokerage
Omni Transloading and Logistics | omnitransloading.com
Direct-Store Delivery, Drayage Service, Freight Forwarding, Intermodal, Last-Mile, LTL, MultiVendor Consolidation, Ocean Carriers, Rail, Rail/Truck Transload, Refrigerated Trucking, TL, Truckload Brokerage
Oppy | oppy.com
Continuous Moves, Direct-Store Delivery, Drayage Service, Freight Forwarding, Intermodal, LastMile, LTL, Multi-Vendor Consolidation, Quality Control, Rail, Rail/Truck Transload, Reconditioning/ Restacking, Refrigerated Trucking, Truckload Brokerage, Warehousing
OTR Transportation | loadotr.com
Bulk/Liquid Bulk Transportation, Continuous Moves, Direct-Store Delivery, Drayage Service, Freight Forwarding, Intermodal, Last-Mile, LTL, Multi-Vendor Consolidation, Rail, Rail/Truck Transload, Refrigerated Trucking, TL, Truckload Brokerage
Perishable Distributors of Iowa (PDI), a Hy-Vee subsidiary | contactpdi.com
Continuous Moves, Customs Brokerage, Dedicated Contract Carriage, Direct-Store Delivery, LTL, Multi-Vendor Consolidation, Refrigerated Trucking, TL, Truckload Brokerage
PLS Logistics Services | plslogistics.com
Bulk/Liquid Bulk Transportation, Drayage Service, Intermodal, LTL, Rail/Truck Transload, Refrigerated Trucking, TL, Truckload Brokerage
PRO Transportation Services Inc. | protransportation.com
LTL, Refrigerated Trucking, TL, Truckload Brokerage
Prosponsive Logistics | prosponsive.comAir Cargo, Continuous Moves, Customs Brokerage, Dedicated Contract Carriage, Drayage Service, Freight Forwarding, Intermodal, Last-Mile, LTL, Multi-Vendor Consolidation, Rail, Rail/Truck Transload, Refrigerated Trucking, TL, Truckload Brokerage
Quality Distribution LLC | qdislc.com
Bulk/Liquid Bulk Transportation, Drayage Service, Freight Forwarding, Last-Mile, LTL, TL
Redwood Logistics | redwoodlogistics.com
Bulk/Liquid Bulk Transportation, Customs Brokerage, Dedicated Contract Carriage, Freight Forwarding, Intermodal, Last-Mile, LTL, Rail, Rail/Truck Transload, Refrigerated Trucking, TL, Truckload Brokerage
ReedTMS Logistics, a Werner company | reedtms.com
Bulk/Liquid Bulk Transportation, Continuous Moves, Customs Brokerage, Drayage Service, Fuel Savings Program, Intermodal, Last-Mile, LTL, Multi-Modal, Refrigerated Trucking, TL, Truckload Brokerage
RLS Logistics | rlslogistics.com
Drayage Service, LTL, Multi-Vendor Consolidation, Refrigerated Trucking, TL, Truckload Brokerage
Romark Logistics | romarklogistics.com
Air Cargo, Continuous Moves, Dedicated Contract Carriage, Direct-Store Delivery, Drayage Service, Fuel Savings Program, Fuel Service-Managed Transportation ,Intermodal, Last-Mile, LTL, Multi-Vendor Consolidation, Refrigerated Trucking, TL, Truckload Brokerage
RWB Trucking, LLC | rwbtrucking.com
Truckload Brokerage
Ryder System, Inc. | ryder.com
Bulk/Liquid Bulk Transportation, Continuous Moves, Customs Brokerage, Dedicated Contract Carriage, Direct-Store Delivery, Drayage Service, E-Commerce/Omnichannel Fulfillment, Fleet Leasing, Freight Forwarding, Fuel Savings Program, Fuel Service-Managed Transportation, Intermodal, Last-Mile, LTL, Multi-Vendor Consolidation, Rail/Truck Transload, Refrigerated Trucking, TL, Truckload Brokerage
Saddle Creek Logistics Services | sclogistics.com
Air Cargo, Dedicated Contract Carriage, Direct-Store Delivery, Fleet Leasing, Fuel ServiceManaged Transportation, Intermodal, LTL, Rail, Refrigerated Trucking, TL, Truckload Brokerage
SFL Companies | sflcompanies.com
Dedicated Contract Carriage, Intermodal, LTL, TL
Sheer Logistics | sheerlogistics.com
Air Cargo, Bulk/Liquid Bulk Transportation, Continuous Moves, Customs Brokerage, Dedicated Contract Carriage, Direct-Store Delivery, Drayage Service, Fuel Savings Program, Fuel ServiceManaged Transportation, Intermodal, Last-Mile, LTL, Multi-Vendor Consolidation, Ocean Carriers, Rail, Rail/Truck Transload, Refrigerated Trucking, TL, Truckload Brokerage
Simple Logistics | simplelgx.com
LTL, Refrigerated Trucking, TL, Truckload Brokerage
Shippers Group, The | theshippersgroup.com
Drayage Service, LTL, Rail, Rail/Truck Transload, Refrigerated Trucking, TL, Truckload Brokerage
SpartanNash | spartannash.com
Continuous Moves, Dedicated Contract Carriage, Direct-Store Delivery ,Freight Forwarding, Freight Solution Management, Intermodal, LTL, Multi-Vendor Consolidation, Refrigerated Trucking, TL, Truckload Brokerage
States Logistics Services, Inc. | stateslogistics.com
Air Cargo, Continuous Moves, Dedicated Contract Carriage, Direct-Store Delivery, Drayage Service, Fleet Leasing, Fuel Savings Program, Fuel Service-Managed Transportation, Intermodal, Last-Mile, LTL, Multi-Vendor Consolidation, Rail, Rail/Truck Transload, Refrigerated Trucking, TL, Truckload Brokerage
Sunset Transportation, a division of Armada Supply Chain Solutions | sunsettrans.com
Air Cargo, Bulk/Liquid Bulk Transportation, Continuous Moves, Customs Brokerage, Dedicated Contract Carriage, Drayage Service, Freight Forwarding, Fuel Savings Program, Fuel ServiceManaged Transportation, Intermodal, LTL, Multi-Vendor Consolidation, Ocean Carriers, Rail, Rail/Truck Transload, Refrigerated Trucking, TL, Truckload Brokerage
Syfan Logistics | syfanlogistics.com
Customs Brokerage, Dedicated Contract Carriage, Drayage Service, Fleet Leasing, LTL, Refrigerated Trucking, Truckload Brokerage
TRAFFIX | traffix.com
Air Cargo, Bulk/Liquid Bulk Transportation, Dedicated Contract Carriage, Drayage Service, Intermodal, Last-Mile, LTL, Multi-Vendor Consolidation, Rail, Rail/Truck Transload, Refrigerated Trucking, TL, Truckload Brokerage, Warehousing and Managed Transportation
Transervice Logistics Inc. | transervice.com
Bulk/Liquid Bulk Transportation, Dedicated Contract Carriage, Direct-Store Delivery, Drayage Service, Fleet Leasing, Freight Forwarding, Fuel Savings Program, Fuel Service-Managed Transportation, LTL, Refrigerated Trucking, Truckload Brokerage
TransLoop | transloop.io
Bulk/Liquid Bulk Transportation, Dedicated Contract Carriage, Drayage Service, Fleet Leasing, LTL, Refrigerated Trucking, TL, Truckload Brokerage
Triple T Transport, Inc. | triplettransport.com
Continuous Moves, LTL, Truckload Brokerage
Truckstop | truckstop.com
Customer Relationship Management, E-Commerce, Freight Payment, Internet of Things, Load Planning, Mobile Technology, Supply Chain Management, Supply Chain Visibility, Systems Integration, Transportation Management Systems, Truckload Brokerage
Uber Freight LLC | uberfreight.com
Air Cargo, Bulk/Liquid Bulk Transportation, Continuous Moves, Customs Brokerage, Drayage Service, Freight Forwarding, Fuel Savings Program, Fuel Service-Managed Transportation, Intermodal, Last-Mile, LTL, Ocean Carriers, Rail, Rail/Truck Transload, Refrigerated Trucking, TL, Truckload Brokerage
Unger Distributing | fritzscheese.com
Last-Mile, Refrigerated Trucking
Universal Pure | universalpure.com
High-Pressure Processing
Vertical Cold Storage, LLC | verticalcold.com
Drayage Service, Freight Forwarding, Intermodal, LTL, Multi-Vendor Consolidation, Ocean Carriers, Rail, Rail/Truck Transload, Refrigerated Trucking, TL
www.foodlogistics.com MAY/JUNE 2023 | FOOD LOGISTICS 23
Werner Enterprises | werner.com
Bulk/Liquid Bulk Transportation, Continuous Moves, Dedicated Contract Carriage, DirectStore Delivery, Drayage Service, Fleet Leasing, Fuel Savings Program, Fuel Service-Managed Transportation, Intermodal, Last-Mile, LTL, Multi-Vendor Consolidation, Rail, Rail/Truck Transload, Refrigerated Trucking, TL, Truckload Brokerage
Yusen Logistics | yusen-logistics.com
Air Cargo, Continuous Moves, Customs Brokerage, Direct-Store Delivery, Drayage Service, Freight Forwarding, Fulfillment, Intermodal, Last-Mile, LTL, Multi-Vendor Consolidation, Ocean Carriers, Ocean Freight, Trandsloading, Warehousing
Zipline Logistics | ziplinelogistics.com
Air Cargo, Drayage Service, Intermodal, Last-Mile, LTL, Rail, Rail/Truck Transload, Refrigerated Trucking, Single-Vendor Consolidation TL, Truckload Brokerage
Zuum transportation | zuumapp.com
Continuous Moves, LTL, TL, Truckload Brokerage
COLD STORAGE
A.N. Deringer, Inc. | anderinger.com
Cross Docking, EDI Capabilities, Packaging, Pick/Pack Assembly, Reverse Logistics/Recalls, USDA/ FDA Inspection
Allen Lund Company, LLC | allenlund.com
Consulting, Cross Docking, Fulfillment, Inventory Management, Multi-Vendor Consolidation, Order Assembly, Packaging, Storage, USDA/FDA Inspection, Vendor-Managed Inventory, Warehousing/ Distribution Management
Americold Logistics | americold.com
Blast Freezing, Consulting, Cross Docking, EDI Capabilities, Fulfillment, Inventory/Cost Accounting, Inventory Management, Kitting/Assembly, Multi-Vendor Consolidation, Order Assembly, Packaging, Pick/Pack Assembly, Public Refrigerated Warehousing, Reverse Logistics/ Recalls, Storage, USDA/FDA Inspection, Vendor-Managed Inventory
Becker Logistics | beckerlogistics.com
Consulting, EDI Capabilities, Fulfillment
BM2 Freight Services, Inc. | bm2freight.com
Cross Docking, EDI Capabilities, USDA/FDA Inspection
CJ Logistics America | cjlogisticsamerica.com
Blast Freezing, Consulting, Cross Docking, EDI Capabilities, Fulfillment, Inventory/Cost Accounting, Inventory Management, Kitting/Assembly, Multi-Vendor Consolidation, Order Assembly, Packaging, Pick/Pack Assembly, Reverse Logistics/Recalls, Storage, Vendor-Managed Inventory, Warehousing/Distribution Management
Covenant Logistics | covenantlogistics.com
Blast Freezing,Consulting, Cross Docking, EDI Capabilities, Fulfillment, Inventory/Cost Accounting, Inventory Management, Kitting/Assembly, Multi-Vendor Consolidation, Packaging, Pick/Pack Assembly, Storage, USDA/FDA Inspection, Vendor-Managed Inventory, Warehousing/Distribution Management
DSW Distribution Centers, Inc. | dswdist.com
Consulting, Cross Docking, EDI Capabilities, Fulfillment, Inventory Management, Kitting/Assembly, Multi-Vendor Consolidation, Order Assembly, Packaging, Pick/Pack Assembly, Public Refrigerated Warehousing, Reverse Logistics/Recalls, Storage,USDA/FDA Inspection, Warehousing/Distribution Management
EASE Logistics | easelogistics.com
Consulting,Cross Docking,EDI Capabilities,Fulfillment,Inventory Management,Kitting/ Assembly,Multi-Vendor Consolidation,Packaging,Pick/Pack Assembly,Reverse Logistics/ Recalls,Storage,Warehousing/Distribution Management
East Coast Warehouse & Distribution | eastcoastwarehouse.com
Consulting, Cross Docking, EDI Capabilities, Fulfillment, Inventory/Cost Accounting, Inventory Management, Multi-Vendor Consolidation, Public Refrigerated Warehousing, Reverse Logistics/ Recalls, Storage, USDA/FDA Inspection, Vendor-Managed Inventory, Warehousing/Distribution Management
Echo Global Logistics | echo.com
Cross Docking, EDI Capabilities, Fulfillment, Inventory Management, Kitting/Assembly, Packaging, Pick/Pack Assembly, Storage, USDA/FDA Inspection, Warehousing/Distribution Management
Flexcold | flexcold.com
Blast Freezing, Cross Docking, EDI Capabilities, Fulfillment, Inventory Management, MultiVendor Consolidation, Packaging, Pick/Pack Assembly, Public Refrigerated Warehousing, Storage, USDA/FDA Inspection, Warehousing/Distribution Management
FST Logistics | fstlogistics.com
Consulting, Cross Docking, EDI Capabilities, Fulfillment, Inventory/Cost Accounting, Inventory Management, Kitting/Assembly, Multi-Vendor Consolidation, Order Assembly, Packaging, Pick/Pack Assembly, Public Refrigerated Warehousing, Reverse Logistics/Recalls, Storage, USDA/FDA Inspection, Vendor-Managed Inventory, Warehousing/Distribution Management
Global 888 Supply Chain Services, LLC | global888.com
Cross Docking, Fulfillment, Inventory/Cost Accounting, Inventory Management, Order Assembly, Pick/Pack Assembly, Reverse Logistics/Recalls, Storage, Vendor-Managed Inventory, Warehousing/Distribution Management
H&M Bay Inc. | hmbayinc.com
Cross Docking, EDI Capabilities, Fulfillment, Multi-Vendor Consolidation, Pick/Pack Assembly, Public Refrigerated Warehousing, Storage, Warehousing/Distribution Management
Hub Group | hubgroup.com
Consulting, Cross Docking, EDI Capabilities, Fulfillment, Inventory/Cost Accounting, Inventory Management, Kitting/Assembly, Multi-Vendor Consolidation, Order Assembly, Packaging, Pick/Pack Assembly, Reverse Logistics/Recalls, Storage, USDA/FDA Inspection, VendorManaged Inventory, Warehousing/Distribution Management
InTek Freight & Logistics, Inc. | intekfreight-logistics.com
Consulting, Cross Docking, EDI Capabilities, Fulfillment, Inventory/Cost Accounting, Inventory Management, Kitting/Assembly, Order Assembly, Packaging, Pick/Pack Assembly, Reverse Logistics/Recalls, Storage, Warehousing/Distribution Management
J.B. Hunt Transport Services, Inc. | jbhunt.com
Cross Docking, Fulfillment, Multi-Vendor Consolidation, Pick/Pack Assembly, Reverse Logistics/Recalls, Vendor-Managed Inventory, Warehousing/Distribution Management
Jarrett | gojarrett.com
Cross Docking, EDI Capabilities, Fulfillment, Inventory/Cost Accounting, Inventory Management, Kitting/Assembly, Multi-Vendor Consolidation, Order Assembly, Packaging, Pick/Pack Assembly, Reverse Logistics/Recalls, Storage, Vendor-Managed Inventory, Warehousing/Distribution Management
Kenco Group | kencogroup.com
Blast Freezing, Consulting, Cross Docking, EDI Capabilities, Fulfillment, Inventory/Cost Accounting, Inventory Management, Kitting/Assembly, Multi-Vendor Consolidation, Order Assembly, Packaging, Pick/Pack Assembly, Reverse Logistics/Recalls, Storage, USDA/FDA Inspection, Vendor-Managed Inventory, Warehousing/Distribution Management
Lineage Logistics | lineagelogistics.com
Blast Freezing, Cross Docking, EDI Capabilities, Fulfillment, Inventory Management, MultiVendor Consolidation, Order Assembly, Packaging, Pick/Pack Assembly, Public Refrigerated Warehousing, Reverse Logistics/Recalls, Storage, USDA/FDA Inspection, Vendor-Managed Inventory, Warehousing/Distribution Management
Longship | longship.us
Cross Docking, EDI Capabilities, USDA/FDA Inspection
Matson Logistics | matsonlogistics.com
Cross Docking, EDI Capabilities, Fulfillment, Inventory Management, Kitting/Assembly, MultiVendor Consolidation, Packaging, Pick/Pack Assembly, Public Refrigerated Warehousing, Storage, USDA/FDA Inspection, Warehousing/Distribution Management
Nexterus | nexterus.com
Vendor-Managed Inventory, Warehousing/Distribution Management
ODW Logistics | odwlogistics.com
EDI Capabilities, Fulfillment, Inventory/Cost Accounting, Inventory Management, Kitting/ Assembly, Pick/Pack Assembly, Public Refrigerated Warehousing, Storage, USDA/FDA Inspection, Warehousing/Distribution Management
Omni Transloading and Logistics | omnitransloading.com
Consulting, Cross Docking, EDI Capabilities, Fulfillment, Inventory/Cost Accounting, Inventory Management, Multi-Vendor Consolidation, Pick/Pack Assembly, Public Refrigerated Warehousing, Storage, USDA/FDA Inspection, Vendor-Managed Inventory, Warehousing/ Distribution Management
TOP 3PL & COLD STORAGE PROVIDERS continued
24 FOOD LOGISTICS | MAY/JUNE 2023 www.foodlogistics.com
Oppy | oppy.com
Blast Freezing, Consulting, Cross Docking, EDI Capabilities, Fulfillment, Inventory Management, Kitting/Assembly, Multi-Vendor Consolidation, Order Assembly, Packaging, Pick/Pack Assembly, Public Refrigerated Warehousing, Reverse Logistics/Recalls, Storage, USDA/FDA Inspection, Vendor-Managed Inventory, Warehousing/Distribution Management
Perishable Distributors of Iowa (PDI), a Hy-Vee subsidiary | contactpdi. com
Cross Docking, EDI Capabilities, Fulfillment, Inventory Management, Packaging, Reverse Logistics/ Recalls, Storage, USDA/FDA Inspection, Vendor-Managed Inventory, Warehousing/Distribution Management
Quality Distribution LLC | qdislc.com
Cross Docking, EDI Capabilities, Fulfillment, Inventory Management, Kitting/Assembly, Storage, Warehousing/Distribution Management
Redwood Logistics | redwoodlogistics.com
Consulting, Cross Docking, EDI Capabilities, Fulfillment, Inventory/Cost Accounting, Inventory Management, Kitting/Assembly, Multi-Vendor Consolidation, Packaging, Pick/Pack Assembly, Reverse Logistics/Recalls, Storage, USDA/FDA Inspection, Vendor-Managed Inventory, Warehousing/Distribution Management
ReedTMS Logistics, a Werner company | reedtms.com
Cross Docking, EDI Capabilities, Fulfillment, Inventory Management, Reverse Logistics/Recalls, Storage, Vendor-Managed Inventory, Warehousing/Distribution Management
RLS Logistics | rlslogistics.com
Cross Docking, EDI Capabilities, Fulfillment, Inventory/Cost Accounting, Inventory Management, Kitting/Assembly, Multi-Vendor Consolidation, Pick/Pack Assembly, Storage, USDA/FDA Inspection, Warehousing/Distribution Management
Romark Logistics | romarklogistics.com
Consulting, Cross Docking, EDI Capabilities, Fulfillment, Inventory/Cost Accounting, Inventory Management, Kitting/Assembly, Multi-Vendor Consolidation, Order Assembly, Packaging, Pick/ Pack Assembly, Public Refrigerated Warehousing, Reverse Logistics/Recalls, Storage, USDA/FDA Inspection, Vendor-Managed Inventory, Warehousing/Distribution Management
Ryder System, Inc. | ryder.com
Consulting, Cross Docking, EDI Capabilities, Fulfillment, Inventory/Cost Accounting, Inventory Management, Kitting/Assembly, Multi-Vendor Consolidation, Order Assembly, Packaging, Pick/Pack Assembly, Reverse Logistics/Recalls, Storage, USDA/FDA Inspection, Vendor-Managed Inventory, Warehousing/Distribution Management
Saddle Creek Logistics Services | sclogistics.com
Cross Docking, EDI Capabilities, Fulfillment, Inventory/Cost Accounting, Inventory Management, Kitting/Assembly, Multi-Vendor Consolidation, Packaging, Pick/Pack Assembly, Public Refrigerated Warehousing, Reverse Logistics/Recalls, Storage, Warehousing/Distribution Management
SFL Companies | sflcompanies.com
Cross Docking, EDI Capabilities, Public Refrigerated Warehousing, Storage, Warehousing/ Distribution Management
Shippers Group, The | theshippersgroup.com
Cross Docking, EDI Capabilities, Fulfillment, Inventory Management, Kitting/Assembly, Order Assembly, Packaging, Pick/Pack Assembly, Storage, USDA/FDA Inspection, Warehousing/ Distribution Management
SpartanNash | spartannash.com
Cross Docking, EDI Capabilities, Fulfillment, Multi-Vendor Consolidation, Public Refrigerated Warehousing, Storage, USDA/FDA Inspection, Warehousing/Distribution Management
States Logistics Services, Inc. | stateslogistics.com
Consulting, Cross Docking, EDI Capabilities, Fulfillment, Inventory/Cost Accounting, Inventory Management, Kitting/Assembly, Multi-Vendor Consolidation, Order Assembly, Packaging, Pick/ Pack Assembly, Reverse Logistics/Recalls, Storage, USDA/FDA Inspection, Vendor-Managed Inventory, Warehousing/Distribution Management
Sunset Transportation, a division of Armada Supply Chain Solutions | sunsettrans.com
Consulting, Cross Docking, EDI Capabilities, Fulfillment, Inventory/Cost Accounting, Inventory Management, Multi-Vendor Consolidation, Packaging, Pick/Pack Assembly, Storage, VendorManaged Inventory, Warehousing/Distribution Management
TRAFFIX | traffix.com
Cross Docking, EDI Capabilities, Storage, Warehousing/Distribution Management
Unger Distributing | fritzscheese.com
Cross Docking, Fulfillment, Inventory Management, Public Refrigerated Warehousing, Reverse Logistics/Recalls, Storage, USDA/FDA Inspection, Warehousing/Distribution Management
Universal Pure | universalpure.com
Blast Freezing, Cross Docking, EDI Capabilities, Fulfillment, Inventory Management, Kitting/ Assembly, Order Assembly, Packaging, Pick/Pack Assembly, Public Refrigerated Warehousing, Storage, USDA/FDA Inspection, Warehousing/Distribution Management
Vertical Cold Storage, LLC | verticalcold.com
Blast Freezing, Cross Docking, EDI Capabilities, Fulfillment, Inventory Management, Kitting/ Assembly, Multi-Vendor Consolidation, Order Assembly, Pick/Pack Assembly, Public Refrigerated Warehousing, Reverse Logistics/Recalls, Storage, USDA/FDA Inspection, Vendor-Managed Inventory, Warehousing/Distribution Management
Werner Enterprises | werner.com
Consulting, Cross Docking, EDI Capabilities, Fulfillment, Inventory/Cost Accounting, Inventory Management, Multi-Vendor Consolidation, Pick/Pack Assembly, Public Refrigerated Warehousing, Reverse Logistics/Recalls, Storage
Yusen Logistics | yusen-logistics.com
Cross Docking, EDI Capabilities, Fulfillment, Inventory Management, Kitting/Assembly, MultiVendor Consolidation, Order Assembly, Packaging, Pick/Pack Assembly, Reverse Logistics/ Recalls, Storage, USDA/FDA Inspection, Vendor-Managed Inventory, Warehousing/Distribution Management
www.foodlogistics.com MAY/JUNE 2023 | FOOD LOGISTICS 25
THE IMPORTANCE OF LAST MILE FOR GROCERY RETAILERS
The grocery industry saw seismic shifts in consumer buying patterns during the pandemic and it is unlikely that the market will return to its pre-pandemic state. Rather than going to grocery stores, consumers went online to buy everything from toilet paper to produce to ice cream. Last-mile logistics for groceries has become increasingly important. It is also very complex as product integrity has to be maintained in order to keep food safe for human consumption.
One way grocers have responded to the market shift is to build more warehouses to bring products closer to the end consumer and facilitate same-day delivery. The global demand for warehouses is expected to grow from $285 billion in 2022 to $326.3 billion by 2024. In the United States alone, warehouse space is expected to reach 420-450 million square miles this year.
There are several things fleets participating in the lastmile delivery segment of food distribution need to do to be successful.
• Foster partnerships with the shipping warehouses. While relationships always have been important in the trucking industry, they are critically important when it comes to last-mile deliveries. Developing partnerships across the entire supply chain so that all parties are in sync will lead to the greatest efficiencies and highest level of customer satisfaction. Make sure to nurture relationships so you are a partner and not merely a vendor.
• Rethink and optimize routing. Given all the changes
in the grocery market, it is time to take a clean sheet approach to routing in order to make sure each route is optimized for maximum efficiency. Don’t be bound by historic sequence of stops. The order of stops you have used for the past 10 years may no longer make sense. Meet with each customer to talk through their needs and set up routing that accommodates their needs but that also is most efficient for you.
• Improve loading and unloading times. Given the short length of haul in the last mile, shippers and carriers need to realize that on-time departures and loading delays will now have broader ramifications. It is harder to make up loading and unloading delays since trucks will be traveling fewer miles. Fleets need to work with the warehouses to improve loading and unloading times in order to improve network optimization and utilization. Effort needs to be put into ensuring swift loading and unloading times to keep trucks rolling. A delay of an hour will have a significant ripple effect and impact customer satisfaction. Set expectations about arrival and departure times and the amount of help there will be loading and unloading trailers. Set KPIs and monitor progress. Use data to find where problems are occurring and get to the root cause so delays can be eliminated.
• Become a transportation consultant. Now is the time to help customers improve their overall efficiency too. Become an expert in last-mile delivery and customer buying habits so you can offer input to customers on things such
SECTOR REPORT WAREHOUSING 26 FOOD LOGISTICS | MAY/JUNE 2023 www.foodlogistics.com icarmen13.stock.adobe.com
as adding more warehouses and distribution centers as population shifts occur.
While last-mile delivery is complex, having assets operate in smaller geographic areas actually has some benefits, especially when it comes to carrying refrigerated goods. Having trucks in closer proximity allows you to react better when a problem occurs. If a load is 100 miles away and there is a problem with the vehicle, you can get it and reload it onto a trailer. It is more
From robotics and warehouse automation to procurement and enterprise resource (ERP) software, warehouse management systems (WMS), transportation management systems (TMS) and supply chain visibility solutions, the supply chain software and technology sector continues to boom. These solutions (and many more) are designed to streamline, optimize and innovate the supply chain and logistics space, and do so by incorporating emerging technologies and a path to efficiency.
And, now it’s time to recognize those software and technology solutions
Nominations are open for Food Logistics’ and Supply & Demand Chain Executive’s newly revamped Top Software & Technology Solutions award, which spotlights new-to-market software and technology solutions designed to provide automation, efficiency and visibility to the supply chain space.
This award is now a new product award, honoring new-to-market software and technology solutions, and is broken down into two main categories (Small Business <$50 million and Enterprise >$49 million) and then five sub-categories within each main category: Procurement/ERP Software, WMS/TMS Software, Warehouse Automation; Robotics; and Supply Chain Visibility Solutions.
Go to https://foodl. me/5qo1rf to learn more and submit nominations.
Submissions close Sept. 22.
difficult to deal with problems when a trailer is 500 miles away.
While there are a number of challenges in last-mile cold chain, there are opportunities as well. It just requires some creative thinking, data analytics and a focus on partnerships to be successful.
ABOUT THE AUTHOR
The Future Arrives Here
The Port of Long Beach is innovating by testing and deploying the latest technology – new digital infrastructure to improve cargo tracking and electric yard equipment and trucks as we head to zero-emissions operations.
www.foodlogistics.com MAY/JUNE 2023 | FOOD LOGISTICS 27
DAVE CSONTOS SVP of logistics, Transervice.
BY ALEXIS MIZELL-PLEASANT, MANAGING EDITOR
IMO 2023 AND THE CURRENT STATE OF OCEAN FREIGHT
Shipping cargo across oceans has hit an evolutionary status as new rules and regulations continue to expand. Meeting the call for disruption, new practices have been compounded upon to improve efficiency and transform the state of transportation to a level above. IMO 2023, a part of the International Maritime Organization’s Greenhouse Gas Strategy, is a series of regulations that look to reduce carbon emissions of all ships by 40% by 2030, and further to 70% by 2050.
In simple terms, Charles Kim, senior journalist at OPIS by IHS Markit, and Yanyu He, executive director, natural gas liquids research at S&P Global Commodity Insights, says a ship running on a low carbon fuel receives a higher rating than one running on high carbon fuel.
“The first rating will be given to each ship in 2024, based on the CII of the ships recorded in 2023, with a 5% improvement required vs. the 2019 baseline figure. In practical terms, the race is already on. After 2023, ship owners must seek ways to improve CII of their ships constantly, as a 2% incremental improvement is required each year through 2026 to meet the 11% carbon intensity reduction target for international shipping for 2026 vs. 2019,” according to Kim and He.
What is IMO 2023 comprised of?
The implementation of IMO 2023 is set to make major changes. Through utilizing energy efficiency indicators such as the Energy Efficiency Existing Ship Index (EEXI), the Ship Energy Efficiency Management Plan (SEMP) and a vessel’s Carbon Intensity Indicator (CII), commercial and non-commercial vessels are subject to a mandatory reduction in carbon emissions.
And what do each of these indicators do exactly?
“EEXI is a rating system that assesses the energy performance of existing ships based on energy consumption data and other key metrics such as speed, power
and engine size,” according to a DHL report. “Non-compliant vessels that receive an EEXI rating below a certain threshold may be subject to IMO 2023 penalties and restrictions and need to make modifications to engines or systems.”
As a ship-specific plan, SEEMP is document that lays out the plan to improve a vessel’s energy efficiency in a costeffective way. Although each one is unique to each ship, the plans should be laid out with practicality that allows owners and operators to manage operations and improve those efficiency parameters over time. CII is a new global shipping carbon intensity level indicating tool used to rank and monitor the efficiency of individual ships. It links together the GHG emissions,
SECTOR REPORT TRANSPORTATION
28 FOOD LOGISTICS | MAY/JUNE 2023 www.foodlogistics.com
@ Pawinee .stock.adobe.com
Ocean shipping through channeled waters.
Ships await loading at a port.
and the amount of cargo carried, along with the distance travelled ratio. The DHL ocean freight report explains that the CII rating threshold will become stricter over time and will determine the annual carbon reduction factor needed to ensure compliance. Starting this year, every vessel will receive a grade from A-E and ships with three years of D grades or one year of an E grade will be put into a corrective action plan.
Knowing the details
Compliance isn’t one size fits all. Each of these components has their own set of steps to follow in order to achieve success. For EEXI, compliance is found after passing an assessment.
“Under the new measures, all ships of 400 gross tonnage (GT) and above will be required to have their Energy Efficiency Existing Ship Index (EEXI) calculated with certain requirement of improvement in energy efficiency varying by the size and type of ships,” says Kim and He. “For gas carriers, ships of 10,000 deadweight tons (DWT) and above are required to have improved their technical energy efficiency by 30% vs. a 2013 reference line and each ship is required to have achieved the required efficiency level to get their one-off International Energy Efficiency Certificate re-issued at their first ship survey on or after Jan. 1, 2023. Failure to meet the required standard would lead to the vessels unable to be used for international trade.”
By the end of 2022, it was required that a determination was to be made about a ship’s carbon intensity via a SEEMP, organizing and preparing the necessary plan that improves the ship’s efficiency through tech and other operational improvements that make an impact. BDP International described the prep work they’ve seen in ocean freight where “many efficiency improvements and emissions reduction pathways are being executed by carriers, such as hull cleaning to reduce drag, steam speed adjustment, routing optimization and fuel switching.”
Investments in energy efficient technology will help aid owners and operators with compliance with all IMO 2023 regulations. Unfortunately, more costs in energy efficiency might bring higher overall shipping costs and to reduce fuel consumption, and improve efficiency further, shipping speeds may slow down.
The operation of older vessels could be hindered by detaining them for modifications that meet the requirements; with Kim and He describing the most common modifications being the installation of energy saving devices, or to install Engine Shaft Power Limitation (ShaPoli) and/or Engine Power Limitation (EPL) system, “which is used to lower the maximum speed of the vessels.” And, this could have a negative effect on overall shipping capacity.
The premise of IMO 2023 is a true promotion of greater energy efficient efforts and a positive step in ocean freight. The key to reaching compliance comes from good research and a focus of preparedness along the way.
“The speed of advancement in technology will need to keep pace with tighter regulations by IMO going forward. With rapid tightening of regulations expected to continue over the coming decades, research efforts will need to remain robust,” explains Kim and He.
But overall, the potential pitfalls of delays and higher cost are small in the scope of sustainability.
Learn more details about compliance here:
https://foodl.me/go0xxm
www.foodlogistics.com MAY/JUNE 2023 | FOOD LOGISTICS 29
AdobeStock
@Kalyakan.stock.adobe.com
Full freight moving through the ocean.
TEMPERATURE TRACKING HEATS UP COLD FOOD CHAINS
Food safety is an integral part of the food and beverage supply chain. In recent years, several foodborne illnesses have impacted the public. In 2023 alone, there have already been more than 40 food and beverage product recalls. As a result, many foodservice companies have implemented a variety of practices to reduce exposure to environments and temperatures that could allow harmful bacteria, viruses or parasites to thrive. Ensuring safe temperatures for food is no small feat and presents additional challenges with the added components in the transportation of food. To make the process more manageable, many food and beverage supply chain leaders are turning to technology for temperature tracking and reporting.
With this new dynamic, many service providers have created small, customizable devices that facilitate the temperature tracking of product. The devices are programmed to alert the user when a product has exceeded the pre-set temperature range and document the occurred length of time. The visibility and maintenance of product temperature throughout the supply chain instills confidence in value chain partners that they are providing quality products to consumers while protecting both their brand and the public.
Temperature-tracking technologies
There are several types of technology available in the market that enable temperature tracking across the food supply
chain. Here’s how to determine which one would integrate best into your operations.
Real-time device
Real-time temperature tracking swiftly addresses any temperature issues, potentially eliminating a total loss of product. Real-time tracking technology continuously monitors the temperature and sends immediate text or email alerts to the driver if the temperature is outside the acceptable range. One common way that users efficiently leverage real-time temperature trackers is by preloading the device with the shipment information and scheduling it to turn on upon adhering to the packaging. Leveraging geofence location technology, the device facilitates an automated shutdown process when the product registers
30 FOOD LOGISTICS | MAY/JUNE 2023 www.foodlogistics.com SECTOR REPORT SOFTWARE & TECHNOLOGY
There are several types of technology available in the market that enable temperature tracking across the food supply chain.
at the final geo-location. Due to the number of capabilities the product offers, real-time tracking devices have the highest price tag on the market.
Data recording
Data recording tracking devices collect data in different intervals of time that are customized based on the customers’ needs, such as product sensitivity and transit variability. After a pre-set length of time, the data is displayed in a user-accessible portal providing visibility to stakeholders. This approach does not always allow for corrective action since drivers aren’t notified during transit if the temperature shifts to an unacceptable range. Data recording trackers tend to be less expensive than real-time trackers because
of their differences in capabilities.
Spot tracking
While the use case determines the best technology investment for a shipper, real-time and data recording are considered the industry gold standard compared to spot temperature tracking. Spot tracking technology collects temperature data at the beginning and end of the delivery without any temperature monitoring between the initial loading and the delivery of the product. If the temperature stayed within the set range at the spots it was checked, then it is deemed acceptable. These devices range significantly in price based on the capabilities, size and brand of the tracker. The susceptibility of a product to changes in temperature and the cost of trackers will impact the decision on which timing capability is needed.
Temperature-tracking challenges
As with anything, the temperature tracking process is not without roadblocks. Varying factors from labor to placement of the tracker can pose potential risks to data accuracy. Success hinges on developing and executing a detailed process, requiring correct action from all involved parties.
Labor
Labor is a multi-faceted issue when it comes to temperature-tracking challenges. Resource education is vital to the success of temperature tracking and corrective action. Within the food industry, high turnover rates can cause knowledge gaps regarding the trackers and their processes. Because of labor shortages, many supply chain leaders are de-prioritizing traceability program awareness and tracker compliance. Corrective action for temperature adjustment is a time-sensitive and manual process that often falls through the cracks amid staffing constraints.
Tracker placement
If adhered improperly, trackers will have difficulty collecting temperature data due to objects obstructing or covering the sensor. Therefore, staff members placing a tracker incorrectly at the start of the process could skew the data results
and cause unreliable data. Typically, the device will be applied to a single pallet per truckload and positioned in the front of the truck near the doors. In the event of a multi-stop route, the temperature data may be influenced by exposure to outside air upon opening the trailer doors. Despite these challenges, the large majority of food transporters moving temperature-sensitive products have adopted some form of temperature-tracking technology.
Cost and ownership
Cost, ownership and responsibility management should be considered when implementing temperature-tracking devices. Will the added cost be put on the supplier who is applying the device or the entity requesting the devices be used? If the supplier were to be liable for the cost of implementation, there may be a cost impact passed along to the end consumer. Additionally, some of these devices are intended for multi-use, which introduces a logistical component of retrieving and returning the devices from the final location back to the origin for reuse. Failure to retrieve the device would increase the program costs.
Selecting the right tool
Food safety incidents can have immense impact on the public and a brand’s reputation. Taking a proactive approach to food safety is as important as ever. As food safety standards continue to be spotlighted in the public, the need for accurate, efficient and cost-effective technology grows. There are several offerings in the temperature tracking space, varying with different capabilities and add-ons that can be customized to fit your business’ needs. When temperaturetracking technology is implemented and operated correctly, it is an effective solution to ensuring the safety and quality of food for customers.
ABOUT THE AUTHOR
www.foodlogistics.com MAY/JUNE 2023 | FOOD LOGISTICS 31
BECCA TURNER transportation consultant, enVista.
Have a nice day AdobeStock_374460072
SUPPLIER RELATIONSHIP MANAGEMENT STREAMLINES FOOD AND BEVERAGE SOURCING
Ongoing COVID-19 outbreaks and the rising frequency of natural disasters are forcing today’s food and beverage (F&B) manufacturers to accept a reality in which supply chain disruption occurs more often and with little warning. There is no end in sight to this New Normal of nearly continuous disruption. How can F&B companies better streamline their procurement approach to ensure more resilient supply chains in the face of such uncertainty? The ability of F&B manufacturers to forge, manage and nurture stronger relationships with suppliers will be critical in light of lockdowns, ingredient and labor shortages, ever-changing regulations associated with food safety, logistical logjams and natural disasters. In the past, procuring based on price was the primary technique used to source ingredients, but that approach only worked because of similar delivery in full/on time (DIFOT) outcomes and availability between suppliers. No more. To be considered best-in-class today, F&B companies must develop and execute more strategic sourcing techniques. Supply chain measurement, visibility, collaboration and risk management are more important than ever. How egregious is the problem? How are best practices changing? And how can manufacturers take advantage of today’s tools to apply the best practices of supplier relationship management to address the problem?
More disasters than COVID-19?
Consumer buying preferences and tastes may have irrevocably changed because of the pandemic. Manufacturers soon found that their standard product offerings were being outsold by more flavorful and “seasoned” items in their product mix. This left many searching for new suppliers who could deliver, in appropriate quantities, the necessary spices, seasonings and ingredients
required to meet demand for products that previously weren’t as popular. These companies discovered that the ability to shift quickly to new bill of materials, SKUs, specialty products (e.g., gluten-free, Keto, etc.), alternative ingredients, packaging designs and recipes created a need for working with alternative suppliers and distributors.
Paired with these demand quirks, the rising costs of everything from animal feed to meat and fuel has guaranteed that today’s F&B companies have been served a veritable smorgasbord of disruption that they will be forced to reckon with for a long, long time.
Changing procurement
To a manufacturer, the supply chain acts as the “blood” that keeps the heart of the factory pumping. Without raw materials, key components or ingredients, nothing can be produced; the machinery stops and the business fails. Today, in order to be successful, plant managers need to take advantage of technologies that help them gain transparency into their relevant supply chains. And, for many in procurement, they must accept that the supplier-buyer relationship has changed as it pertains to strategic sourcing. It doesn’t quite end there either. Visibility into manufacturing processes and orders likewise is part of the supply chain puzzle.
Those F&B companies that have made progress toward digital manufacturing are in an advantageous position.
Insight into the availability of materials is critical—do suppliers have anything to ship? If so, what’s their pricing and quality? If one supplier can’t deliver, what’s the reputation of your backup? Sadly, many manufacturers still lack visibility into the supply chain, simply because they still employ archaic, limited legacy software systems.
Supplier management
Manufacturers must realize that, in a world of bottlenecks, supply chains that are quicker to alternative solutions will win out over those that are slower. While sourcing materials at competitive prices is important, the “old world” model of procurement no longer makes sense with multiple companies competing over providing the same materials. Secondy, in today’s New Normal, developing and nurturing relationships with suppliers vs. pitting them against each other is paramount. Understand that post-pandemic supply chains require collaboration at many levels and from various functions. Supplier relationship management (SRM) connects an organization’s interests with that of its extended supplier network. It serves to identify and engage the right stakeholders
32 FOOD LOGISTICS | MAY/JUNE 2023 www.foodlogistics.com SECTOR REPORT SAFETY & SECURITY
ake1150.stock.adobe.com
to create ownership of these relationships, driving effective communications among all parties and aligning everyone’s strategic objectives. The result is a foundation for continuous efficiency improvements such as cost reductions, risk mitigation or improved go-to-market times. Most important of all is the improved potential for pivoting around disruption since everyone’s working together for mutual success.
Moving the strategic procurement needle
Nobody will successfully move toward a more strategic approach for sourcing armed with just spreadsheets and a smartphone. Visibility requires data, preferably in real-time or near real-time. Collaboration requires shared applications that support a wide variety of information and process exchange. Decision-making based on data requires modern analytics to spot trends, measure trade partners, adeptly deal with exceptions and to constantly reorient supplier relationship strategies. Key pieces to look for in a successful supporting solution include strategic sourcing, supplier self-service, measurement, data richness and integration.
Preparation surmounts uncertainty
The good news is that the solution investments to improve visibility and to better manage supplier relationships and related risk have long-term benefits beyond dealing with the nearer term supply chain issues. A strategic set of best practices and supporting solutions also pays off over the long run. The New Normal of supply chain management best practices will last for quite a while, though it will continue to evolve. A solution that supports the requirements of today, but also in the future, proffers long-term competitive advantage.
We don’t know what comes after the pandemic. We can’t foresee the long-range impact of climate change. We do not know which way the global geopolitical pendulum will swing. We cannot predict what consumers will be loving in a year. We should, however, expect radical change and therefore provide ourselves with the techniques and tools to optimally deal with whatever may come.
INNOVATION THAT DELIVERS
Trust your tempsensitive goods to the trade’s most innovative fleet.
With our continued investment in cutting-edge equipment, including state-of-the-art reefers,GPS tracking technology, and CoolConnect Service, we have the tools in place to ensure the integrity of your cargo from the port to its final destination.
www.foodlogistics.com MAY/JUNE 2023 | FOOD LOGISTICS 33
STEPHEN DOMBROSKI director, consumer products & food and beverage vertical markets, QAD Inc.
ABOUT THE AUTHOR
GARY KOLTOOKIAN manager, demand generation, QAD Inc.
ABOUT THE AUTHOR
PROUD TO SERVE PUERTO RICO TOTEMARITIME.COM 877.775.7447
FROM JACKSONVILLE TO SAN JUAN
BY MARINA MAYER, EDITOR-IN-CHIEF
DEI IN THE COLD CHAIN
Companies with more than 30% women executives were more likely to outperform companies where this percentage ranged from 10-30%, and in turn, these companies were more likely to outperform those with even fewer women executives or none at all, according to a McKinsey report.
In fact, the business case for diversity, equity and inclusion (DEI) is stronger than ever. Yet, women only occupy 21% of supply chain’s VP and senior director-level positions, a dip from 2021, according to a Gartner report.
That’s because while the supply chain is executing and upholding its many DEI efforts, there’s still more work to be done.
“A focus and commitment to diversity, equity and inclusion has become tablestakes for any company in creating an equitable workplace culture that attracts and retains talent from diverse backgrounds,” says Diana Vera, VP of employee experience and diversity, XPO Logistics. “At XPO, we were one of the first companies in our industry to champion a formal DEI program, and since, we’ve seen an increased focus from our industry peers on the importance of diversity as they reaffirm their commitment to DEI initiatives publicly.”
Meanwhile, some organizations are backing the work with resources reflected in DEI leadership, a team and
monetary funds to fully support strategic execution, says Angie Montville, director of diversity, equity and inclusion for Lineage Logistics.
“In addition to committing such resources, many of those same organizations have also created strategies with measurable goals with a solid business case defining how DEI enables the business,” Montville adds.
However, other organizations are creating DEI plans to create the ideology of inclusion.
“Some organizations are operating without a substantial strategy and no plan to embed DEI ideology into the organization’s DNA to impact representa-
34 FOOD LOGISTICS | MAY/JUNE 2023 www.foodlogistics.com SECTOR REPORT WORKFORCE DEVELOPMENT
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tion and culture change. I’m also aware of organizations that have no DEI representation,” Montville adds.
“[DEI efforts] create psychological safety that allows employees to contribute without fear or consequence. This safety promotes trust, boldness and creativity that ultimately leads to innovation,” adds Montville. “It creates an environment in which employees have a sense of belonging and an increased desire to perform at a higher level. It helps leaders identify the different talent within their teams and then how to best leverage those talents to the success of the group and/or department at large. It promotes the attraction of all talent that may be historically dismissed or overlooked by other organizations and encourages a culture that retains such talent for longer periods of time. It increases profitability by again leveraging the diversity of representation, experience and thought.”
Where/how to start?
If not planned right or being executed appropriately, some of the DEI messaging can get lost along the way. And for some companies, the lack of a successful DEI platform may just be the simple fact as to, where and how do we start?
Vera and Montville recommend having a conversation first.
“A great DEI strategy starts with an honest conversation about where a company’s culture stands and where it needs to go,” says Vera. “Effective DEI strategies are executed best when there is buy-in from the top, so it’s important to map out how the strategy aligns with the company’s strategic imperatives and business goals. It is also critical to engage with your employees to understand what they value most, incorporate their feedback into the strategy and revisit efforts throughout to build support and bring the program to life.”
“Organizations should begin with the conversation of why they want and need DEI within their organization, and then obtain complete buy-in at the top from executive leadership before embarking on the journey,” ads Montville. “Next steps should be the recruitment of an experienced DEI leader who will be
given full authority to inform the work to change actions—and at times—thinking/ philosophies within the organization. And then, of course, that person should action the strategic plan to achieve goals that will advance DEI within the organization.”
It’s also pertinent that companies practice continuous improvement with regards to their DEI programs.
For starters, DEI programs aren’t just a human resources initiative; they should be promoted, trained and followed through within all departments of a company.
“Companies can improve the success of their DEI efforts by incorporating a focus on inclusion and diversity across the business. Further, embedding DEI measurements into ongoing business reviews helps to continue the conversation and reinforces DEI as a business priority. Ultimately, the focus of DEI should be holistic and go beyond race, ethnicity, and gender, it should truly understand the diverse experiences of employees, taking into account cultural differences or disabilities, which is critical to improvement,” says Vera.
Other key components involve accountability and intentionality.
“An organization must be intentional about actioning steps to close gaps for diverse candidates within areas of recruitment, development, promotions, and pay equity. Accountability is paramount because it conveys the message as to how important the culture shift is to a company by setting the expectation of how an employee—and most importantly leaders—represent their values,” says Montville.
DEI in the supply chain
Gender-based adversity still affects close to 74% of women in the supply chain, according to a Procurious study. And, just 14% of companies have strategies in place to protect and promote women in supply chain and procurement.
“Put bluntly: There’s a lot of talk but not enough action or results. Our research found that only 16% of women have seen their organizations make tangible progress toward addressing gender bias this year. We need to work together
to lift up, empower and protect women in the workforce and drive real change,” says Tania Seary, founding chairman and CEO of Procurious.
That’s why now is the time to address DEI efforts in the supply chain.
“The importance of effective DEI initiatives will only continue to increase. Across the industry, companies will need to be mindful of the composition and diversity of their future workforces. It will be critical to be able to tap into a variety of labor markets, diverse skill sets and offer workforce flexibility as the pool for available talent evolves. Changing world, domestic and environmental perspectives will also impact how companies evolve their programs,” says Vera.
The influx of newer generations entering the supply chain space provides a sliver of optimism for the future of DEI.
“I assess them as bringing a more, inclusive outlook on life and society into any organization. They will expect representation, equity and inclusion as the norm rather than simply as an aspirational goal,” says Montville. “Commit to its efforts unapologetically. Value the work as a business imperative and not view it as an initiative or a program. Ownership of the strategy, execution and success cannot rest solely on diversity leadership. It begins at the highest levels of the organization with expectations to cascade downward—to all levels—and rise from within the organization back up to the executive leaders.”
The Gartner report also reveals another 85% of supply chain organizations are implementing initiatives focused on gender diversity recruitment, while 91% are deploying employee engagement initiatives.
Strengthen your company’s DEI messaging and efforts by nominating up to three female leaders for our third annual Women in Supply Chain award, https://sdce. me/7b25k9. And, register to attend this year’s Women in Supply Chain Forum at https://sdce.me/6pazdz
The supply chain is #BetterTogether when it’s promoting inclusivity across the board.
www.foodlogistics.com MAY/JUNE 2023 | FOOD LOGISTICS 35
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