Food Logistics June 2017 by Supply+Demand Chain/Food Logistics

APT APPS FOR FOOD LOGISTICS

SECRETS TO GREENING THE WAREHOUSE

CONFECTIONERY IN THE COLD CHAIN

Food Logistics

OCEAN CARRIERS AND PORTS INVEST IN FOOD SAFETY

Global Supply Chain Solutions for the Food and Beverage Industry

➍Fuel Efficiency WAYS to Drive

2017 TOP GREEN PROVIDERS

2017 TOP PROVIDERS

SUSTAINABILITY

IN THE FOOD SUPPLY CHAIN How the industry is adopting sustainable practices to shape a viable food supply chain for the future

Issue No. 187 June 2017

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APT APPS FOR FOOD LOGISTICS

SECRETS TO GREENING THE WAREHOUSE

Food Logistic

Global Supply Chain S the Food and Beverag

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Issue No. 187 June 2017

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THE 2017 FOOD LOGISTICS

TOP GREEN PROVIDERS

2017 TOP PROVIDERS

Our annual list depicts companies, products and technologies that are supporting sustainability throughout the global food and beverage supply chain.

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ON THE MENU

OCTOBER 2015 ISSUE NO. 171

ON THE MENU

June 2017 ISSUE NO. 187 COLUMNS FOR STARTERS

T aking Sustainability to the Next Level

For many involved in the global food supply chain, sustainability is now central to their operations and not just an afterthought. COOL INSIGHTS

COVER STORY

Sustainability in the Food Supply Chain

Growers, transporters and logistics providers, and increasingly consumers, too, are making the connection between sustainable practices and how they shape a viable supply chain for the future.

SECTOR REPORTS

WAREHOUSING

S ecrets to Greater Warehouse Sustainability

Looking at energy saving efforts that include energy-efficient lighting and non-traditional sources of power can boost profit margins in the food and beverage warehouse.

FEATURES THIRD-PARTY & REFRIGERATED LOGISTICS

Sweet Deliveries

As confectionery sales continue to rise around the world, shippers are seeking assistance from 3PLs to ensure their products are delivered on time and in optimal condition. SPECIAL REPORT

2 017 Top Green Providers List

A guide to the providers, manufacturers, and software and technology companies that have found new ways to promote sustainability throughout their operations and 2017 TOP those of their PROVIDERS customers.

TRANSPORTATION

4 Ways to Drive

Fuel Efficiency

How food and beverage fleets can leverage technology, change processes and train drivers to improve fuel efficiency and enhance sustainability. SOFTWARE & TECHNOLOGY

A pt Apps for Food Logistics

The proliferation of apps for food logistics is a testament to their value. Here are some of the latest breaking examples. OCEAN CARRIERS & PORTS

O cean Carriers and Ports Invest in Food Safety

Carriers and ports are taking steps to provide an integrated cold chain to support chilled and frozen cargoes.

S peaking of Green: Sustainable Terms Logistics Pros Should Know

Common green terms essential to every corporate vocabulary and many supply chain initiatives. FOOD (AND MORE) FOR THOUGHT

A pplying Supply Chain Best Practices to the Budding Cannabis Industry

Supply chain standards for the cannabis industry are lagging even as its popularity grows.

DEPARTMENTS

Supply Scan 10 Food on the Move 43 Ad Index 8

WEB EXCLUSIVES • FSMA to Strain Carrier Capacity and Boost Freight Rates foodlogistics.com/12335601 • Product Recall: A Rising Threat Disrupting the Food & Beverage Industry foodlogistics.com/12334875

• FL’s Educational Webinar Series foodlogistics.com/webinars

Published and copyrighted 2017 by AC Business Media Inc. All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording or any information storage or retrieval system, without written permission from the publisher. Food Logistics (USPS 015-667; ISSN 1094-7450 print; ISSN 1930-7527 online) is published 10 times per year in January/February, March, April, May, June, July, August, September, October and November/December by AC Business Media Inc., 201 N. Main Street, Fort Atkinson, WI 53538. Periodicals postage paid at Fort Atkinson, WI 53538 and additional mailing offices. POSTMASTER: Send address changes to Food Logistics, P.O. Box 3605, Northbrook, IL 60065-3605. Canada Post PM40612608. Return undeliverable Canadian addresses to: Food Logistics, Station A, P. O. Box 25542, London, ON N6C 6B2. Subscriptions: U.S., one year, $45; two years, $85; Canada & Mexico, one year, $65; two years, $120; international, one year, $95; two years, $180. All subscriptions must be paid in U.S. funds, drawn from a U.S. bank. Printed in the USA.

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FOR STARTERS

FROM THE EDITOR’S DESK

TAKING SUSTAINABILITY TO THE NEXT LEVEL T SOWINSKI

For every single dollar we’re saving them through better utilization, we are reducing

the fuel consumption and emissions that are produced by those deliveries.” Bill Michalski, ArrowStream

here is a lot to learn by reporting on the global food supply chain. Sustainability is one aspect that continues to evolve dramatically from year to year, and not surprisingly, because environmental stewardship is essential to food production. What’s interesting to me is how we’ve come to think about sustainability today. For many involved in the global food supply chain, sustainability is now central to their operations and not just an afterthought. Take the foodservice industry, for instance. Foodservice supply chains are complex. They typically consist of numerous vendors, customers, and fast changing demands like promotions, new products and even recalls. Operators that continually look for ways to reduce supply chain costs for themselves and their customers are undeniably successful; when they incorporate sustainability into their supply chain strategy, they are to be commended. Bill Michalski, chief solutions officer at ArrowStream, says working with foodservice companies to achieve true sustainability has been the goal from the start. It’s a multipronged approach that optimizes planning, replenishment and routing, all of which reduce the number of trucks on the road. The reality is, there are a lot of trucks on the highways that are following the same routes, yet serving different customers and locations, he says. “The founding vision at ArrowStream was to connect all those moves together, and find the optimal routing to take as many of those

trucks off the road as possible,” as well as eliminate dead-head miles. In return, “For every single dollar we’re saving them through better utilization, we are reducing the fuel consumption and emissions that are produced by those deliveries.” Michalski sees other trends in the foodservice sector that are enhancing sustainability, such as greater acceptance of data sharing and providing a centralized view of that data. Consumers continue to play a big role in this trend, says Michalski. They want greater transparency and information about ingredients, allergens, animal welfare and sustainable practices. In addition, supply chain improvements are linked to less food loss and food waste. Like any business, ArrowStream exists to make a profit. However, the company also sees its role as a promoter of sustainability in the marketplace. ArrowSteam is not alone in this approach. Many companies I encounter have adopted a similar value proposition. You can learn about some of them in our annual Top Green Providers list on page 24. This list has grown over the years, as have the sustainability milestones and sophistication with which companies are incorporating environmental stewardship, renewable energy and waste reduction into their operations. Congratulations to the companies on this year’s list. Enjoy the read.

DETAILS

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

WWW.FOODLOGISTICS.COM PRINT AND DIGITAL STAFF Group Publisher Jolene Gulley Associate Publisher Judy Welp Editorial Director Lara L. Sowinski lsowinski@ACBusinessMedia.com Editor Ronnie Garrett rgarrett@ACBusinessMedia.com Assistant Editor Amy Wunderlin awunderlin@ACBusinessMedia.com Senior Production Manager Cindy Rusch crusch@ACBusinessMedia.com Creative Director Kirsten Crock Sr. Audience Development Manager Wendy Chady Audience Development Manager Angela Kelty ADVERTISING SALES (800) 538-5544 Associate Publisher (East Coast) Judy Welp (480) 821-1093 jwelp@ACBusinessMedia.com Sales Manager (Midwest and West Coast) Carrie Konopacki (920) 542-1236 ckonopacki@ACBusinessMedia.com National Automotive Sales Tom Lutzke (630) 484-8040, tlutzke@ACBusinessMedia.com EDITORIAL ADVISORY BOARD Jaymie Forrest, Chief Supply Chain and Commercial Officer, ScanTech Sciences Inc. John Haggerty, Vice President of Business Development, Burris Logistics Robert A. Norton, Ph.D., Professor of Veterinary Microbiology, Public Health and Biosecurity, Auburn University; Coordinator of National Security Initiatives, The Futures Laboratory Jon Shaw, Director of Sustainability and Global Marketing Communications, UTC Climate, Controls & Security Smitha G. Stansbury, Partner, FDA & Life Sciences Practice, King & Spalding CIRCULATION & SUBSCRIPTIONS P.O. Box 3605, Northbrook, IL 60065-3605 (877) 201-3915, Fax: (800) 543-5055 circ.FoodLogistics@omeda.com LIST RENTAL Elizabeth Jackson, Merit Direct LLC (847) 492-1350, ext. 18; Fax: (847) 492-0085 ejackson@meritdirect.com REPRINT SERVICES Carrie Konopacki (920) 542-1236 Fax: (920) 542-1133 ckonopacki@ACBusinessMedia.com AC BUSINESS MEDIA INC. Chairman Anil Narang President and CEO Carl Wistreich Executive Vice President Kris Flitcroft CFO JoAnn Breuchel Vice President of Content Greg Udelhofen Digital Operations Manager Nick Raether Digital Sales Manager Monique Terrazas Published and copyrighted 2017 by AC Business Media Inc. All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording, or any information storage or retrieval system, without written permission from the publisher.

LARA L. SOWINSKI, EDITORIAL DIRECTOR LSOWINSKI@ACBUSINESSMEDIA.COM

FOOD LOGISTICS | JUNE 2017

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SUPPLY SCAN

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

INDUSTRY STRUGGLES WITH TRAINING AS FSMA TAKES FULL EFFECT With several of the Food and Drug Administration’s (FDA) FSMA compliance dates now in effect, the industry is struggling with training. Efforts are underway to address these challenges,

SMITH CORONA BARCODE LABELS PROTECT AGAINST HARSH ELEMENTS

Smith Corona is an expert at producing both direct thermal and thermal transfer barcode labels for practically any application, including harsh or extreme environments, temperatures or performance requirements. These durable labels with freezer adhesive provide strong protection against harsh elements and maintain their stick in deep freeze, frozen and chilled environments. They are great for cold storage or when an application requires a much stronger adhesive than normal. This item comes with four rolls to a box for a total of 4,000 labels.

with the FDA issuing more than a dozen guidance documents pertaining to the rule. In addition, tools such as model plans and templates can help companies with their food safety plans, and the agency reportedly

is almost ready to publish a web-based food safety plan builder that will be freely accessible on the FDA’s website. Several sources of technical assistance also are available, including state and trade associations, academia and the technical assistance network (TAN).

INSERRA SUPERMARKETS IS BRINGING LOCALLY GROWN PRODUCE TO ALL 22 SHOPRITE STORES

From Swiss chard and collard greens to peppers, tomatoes, corn and much more, local produce—both conventionally and organically farmed—is becoming a mainstay on kitchen tables across New Jersey and New York. To meet that demand and expand its partnerships with the local farming community, Inserra Supermarkets is bringing locally sourced produce to all of its 22 ShopRite stores this spring and summer. “Consumers can taste the robust flavors and freshness of produce that was picked that same day or the day before,” says Eric Beelitz, director of produce of Inserra Supermarkets. “That taste is important, and of course, really makes a difference.” Under Beelitz’s direction, the family-owned chain has turned produce into one of its signature departments. Family members and staff of Inserra Inserra Supermarkets has a long-standing partnership Supermarkets recently gathered to with Abma’s Farm in Wyckoff, New Jersey, and in regard announce the launch of the program. to organic produce and herbs, they primarily source those items from a distributor that works with more than 120 regional sustainable farms— primarily those in New Jersey and Pennsylvania—52 weeks a year. The company also partners with Guarino Sons Produce Inc., a family-owned and operated wholesale produce distributor, and regularly sources produce from Winslow Junction Farm, Scordo Farm, Cassaday Farms, Circle M Farms and Pastore Orchards. “We have forecasted out our needs with all of our growers and are in constant contact with them,” adds Beelitz. “As always, we aim to provide the best of the best to our customers at an affordable price point.”

CHINA PROPOSES MODERN-DAY SILK ROAD WITH TRANSCONTINENTAL INFRASTRUCTURE PROJECT

Chinese president Xi Jinping has revealed plans for the world’s largest sprawling infrastructure project—the Belt and Road—which aims to develop trade links between China, Central Asia, Europe and Africa. Billed as the contemporary equivalent to the ancient Silk Road trade routes that once spanned Eurasia, the vast multi-billion-dollar building project would see over 60 countries linked by road, railway and sea. President Xi presented the globalization plan, which seeks to stimulate economic growth in the region by creating free trade areas between countries, during a two-day summit in Beijing last month. China is estimated to be investing $150 billion each year in the Belt and Road project, with $900 billion already spent.

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REDUCE COSTS & IMPROVE WAREHOUSE OPERATIONS

Intelligent Automation Makes the Difference Automation solutions from SICK help you meet increasing demands for food and beverage supply chain improvements. Our broad portfolio of sensors, automatic identification systems and safety solutions are flexible, scalable and help make your operations more intelligent. Implementing automation solutions from SICK can reduce supply chain costs, improve transparency, and enhance food and beverage distribution processes. You’ll find SICK transforming logistics operations in all supply chains...from retail, to parcel, and food and beverage - for 70 years and counting. SICK is a global solutions provider located in your corner of the world. From cold storage, sortation, order fulfillment, packaging and palletizing, you’ll improve food distribution through our flexible and cost-effective automation solutions. We think that’s intelligent. www.sickusa.com

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FOOD ON THE MOVE

LOGISTICS TRENDS IN OUR INDUSTRY

THE PHILADELPHIA REGIONAL PORT AUTHORITY IS REBRANDING AS PHILAPORT The Port of Philadelphia is establishing a new brand identity that will bolster its national and international marketing efforts and position the port as one of the most important trade gateways on the Atlantic seaboard. People in the region and shippers across the globe will now know that gateway as PhilaPort. “The name is short, clean and memorable, and it reflects very simply who we are and what we do,” says Jerry Sweeney, PhilaPort chairman. “The name ‘PhilaPort’ helps distinguish us from the many other regional authorities and commissions as we seek to capitalize on the opportunities that will result from our expansion.” Sweeney says the port is positioned for

considerable growth, thanks to public and private investment approaching $1 billion, which demonstrates the sustained commitment at the Port of Philadelphia to accommodate larger ships and improve efficiencies. There are 41 million people within 150 miles of PhilaPort, and the northeast United States is one of the wealthiest consumer markets in the world. PhilaPort enjoys several competitive advantages over other East Coast ports. They include 19 labor start times per day. They include more flexible working rules to competing ports and truck turn times of less than one hour and the ability to move more containers per hour than many other ports.

WERNER ENTERPRISES INTRODUCES FINAL MILE DELIVERY

Werner Enterprises is launching a new logistics solution, Werner Final Mile, which will primarily deliver large or heavy items using two uniformed associates operating a lift gate straight truck. Werner Final Mile provides nationwide delivery and related services to residential and business locations using the logistics provider’s extensive network of delivery teams operating from nearly 200 locations. Werner Enterprises’ software platform, which was developed over the last year, allows for fully automated, high volume e-commerce delivery of non-conveyable products from white-glove home and business deliveries, including returns and exchanges. “With our customers’ rapid growth in the e-commerce market, we continue to adapt our services and technology to meet and exceed their expectations,” says COO Marty Nordlund.

UTILITY TRAILER NEARS PRODUCTION OF 500,000TH REFRIGERATED VAN

Utility Trailer Manufacturing Company, the industry’s largest manufacturer of refrigerated trailers and a leading manufacturer of dry freight vans, flatbeds and Tautliner curtain sided trailers, is on target to manufacture its 500,000th refrigerated van in 2017. “When our Clearfield, Utah plant manufactured its 250,000th reefer, we decided to add up the total number of reefers manufactured in our history. The number turned out to be more than 490,000 refrigerated vans. With what we have in the pipeline, we will hit half a million reefers sometime this year,” says Craig Bennett, senior vice president of sales and marketing for Utility. Since 1994, Utility has been the No. 1 manufacturer of refrigerated vans in the Americas.

DAT SOLUTIONS’ MONTHLY FREIGHT REPORT

Reefer Demand Heats Up Mark Montague is an industry rate analyst for DAT Solutions, which operates the DAT network of load boards and RateView rate-analysis tool. For more information, visit www.dat.com.

While it’s always interesting to look at national averages for spot refrigerated freight volume and rates, May is a time of regional ups and downs. Produce in some parts of the country starts to wane while others come on strong. Look at California, where spring produce is running about a month ahead of last year when the state was in a drought. Spot reefer rates from Fresno and Los Angeles are well above the national average of almost $2 a mile. The load-to-truck ratio, a measure of demand, was at 6.1 in mid-May, more than double compared to last year (a load-to-truck ratio of 12 is considered favorable to carriers). If you have a reefer trailer, you probably

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By Mark Montague have places like California, Wisconsin and but processed and canned tomatoes in Central Florida in your logbook. paste and sauces also are a boon for vans. If you have a van trailer, consider it, too Who knows where California tomato On the spot market, where freight is not production will settle in 2017 (from June under contract, van carriers can compete to October last year, California shipped for loads that 500,000 loads of would ordinari- Jan-May Reefer Load/Truck Ratios processed tomato ly be hauled products). But in many 10.0 by a reefer cases those cans and specialist. For jars can move by van 7.5 example, spot just as easily as they rates out of Calcan in a reefer. It’s an5.0 ifornia are up other reason to expand thanks to tomayour options if you’re 2.5 to production. looking for capacity— Jan Feb Mar Apr May That’s good for or have it to offer— 2017 2016 2015 reefer freight, on the spot market. © 2017 DAT Solutions

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TAKE ANOTHER LOOK AT Charleston

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COOL INSIGHTS

BY MARK HANSON

Speaking of Green:

SUSTAINABLE TERMS

LOGISTICS PROS SHOULD KNOW

O HANSON

Mark Hanson is the senior director of operations North America and head of consumer North America for APL Logistics .

ver the past decade the term “going green” has become a key part of almost every corporate vocabulary and numerous supply chain initiatives. By contrast, many of the expressions that should go hand-in-hand with it are still in the process of gaining traction, including many that could be the key to significantly better sustainability results. With that in mind, here’s a handy glossary of several terms we’ve found to be especially meaningful. Some were coined specifically for the sustainability movement. Others are better known as commonly used logistics tools, modes or practices. But, all should provide you with good fodder for discussion the next time the subject of greener logistics arises.  Carbon Footprint. The specific environmental effect—including greenhouse emissions—that businesses or individuals have as a result of their activities. Measured in the form of CO2 equivalents, it includes factors such as transportation, electricity, water consumption and materials used or consumed. Many public and private organizations offer free carbon footprint calculation tools on their websites, or many businesses can run a calculation for you.  Carbon Offset. A monetized way that businesses or individuals can help counterbalance the negative impacts of their carbon

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footprints. Typically sold by various organizations for $10 to $25, each offset is credited with reducing the effect of one metric ton of CO2 emissions by helping to fund green initiatives such as wind farms, reforestation and hydroelectric dams. Environmental advocates advise that they should be used in addition rather than instead of a company’s proactive energy-reduction efforts.  DC Bypass. A practice that enables companies to eliminate unnecessary product transits to distribution centers (DC)—and reduce the associated energy consumption —by using cross docking and direct ship techniques.  Dock Doors. A surprisingly common source of temperature loss in many DCs. Businesses can reduce this loss—and make their facilities more sustainable—by investing in doors that open and close more quickly, installing heavier doors with more insulation or using better sealing around door perimeters.  Green Roofs. Environmentally friendly rooftops that have gardens or other vegetation planted on them. In addition to reducing buildings’ heat island effect and energy requirements, the use of these gardens can extend the life of a facility’s roof by as much as 50 percent, a fact that results in the long-term (and greener) use of fewer roofing materials over time.  Idling. A major cause of fuel waste—and several million tons of annual carbon emissions—that occurs when trucks leave their engines running after arriving at a DC. Carriers can reduce their drivers’ idling and save thousands of dollars per vehicle a year via the use of special equipment and driver training

tools. Warehouses can do their part by establishing “no idling” policies and providing comfortable driver hospitality areas at their facilities.  Intermodal Rail. The most environmentally friendly ground transportation mode. Using intermodal transportation instead of a straight truck move can cut your fuel use and greenhouse gas production by as much as 65 percent  LEED. A voluntary rating program established by the U.S. Green Building Council that recognizes a building’s ability to meet exceptionally high standards for environmental sensitivity. LEED is a points-based rating system that ranges from certified to platinum and includes best green practices in categories such as site sustainability, water efficiency, energy and atmosphere, and materials used.  Lighting. An area where companies can save significant money and expend considerably less energy by switching to the latest fluorescent technologies. Many DCs that make this transition can reduce their light-related energy requirements by 70 percent.  Ocean. The overseas shipping mode that produces the smallest carbon footprint. An ocean shipment is approximately 96 percent greener than an air shipment of the same distance.  SmartWay Transport Partnership. A green public-private performance improvement initiative formed by the U.S. Evironmental Protection Agency (EPA) in 2004. Designed for the freight sector, it encourages companies to move goods more efficiently, with less fuel and with a reduced carbon footprint. www.foodlogistics.com

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HOW DSC LOGISTICS

IS COMBINING SUSTAINABILITY AND COST EFFECTIVENESS TO ACHIEVE CUSTOMERS’ GOALS When DSC considers how to implement green measures throughout our nationwide network of 50 Logistics Centers, we look at it from two perspectives: reducing waste and unnecessary use of resources AND keeping costs under control. Our transportation expertise helps us consolidate loads, efficiently reducing the number of trucks and trips. As a SmartWay partner, we’re lowering emissions as well as costs. Through network modeling and analysis, we help our customers find the most efficient and cost effective network design.

As for finding ways to reduce usage of water, electricity, and other items — our Green Team develops sustainability solutions and assesses them for both effectiveness and cost. We implement several largescale projects every year related to building and operations. We track performance on key metrics. For example, we’ve been able to cut our use of water, network-wide by 13.8% over the past decade. Our electricity use continues to go down — and we’re now recycling 67% of products that can be recycled. We’re reducing our impact on the environment and helping our customers reduce theirs.

DYNAMIC SUPPLY CHAIN LEADERSHIP

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dsclogistics.com

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COVER STORY

BY BARRY HOCHFELDER

SUSTAINABILITY IN THE FOOD SUPPLY CHAIN

Growers, transportation and logistics providers, and increasingly consumers, too, are making the connection between sustainable practices and how they shape a viable food supply chain for the future.

ustainability continues to have a profound and widespread effect on the global food supply chain, from promoting food security to adhering to environmentally friendly practices that support food production. By 2050, the world’s population is expected to reach 9 billion people. How can we produce enough food, and do it sustainably? It’s a great question, and many of the answers can be found at each link along the supply chain, from farm to fork.

On the Farm

BILLION

Farmers are using a number of methods, including water conservation, renewable energy sources, more efficient use of non-renewable sources and the newest, though still a bit controversial, trend—vertical farming. In his 2010 book, “The Vertical Farm: Feeding the World in the 21st Century,” Dickson Despommier, Ph.D., emeritus professor of microbiology and BY 2050 public health at Columbia World’s Population University, wrote: “Vertical farms are immune to weather and other natural elements that can abort food production. Crops can be grown under carefully selected and well-monitored conditions that ensure The demand for optimal growth rates for food will double. each species of plant and World Wildlife Fund animal year-round. In other words, there are no seasons indoors. The efficiency of each floor of a vertical farm, one acre in footprint, could be equivalent

FOOD LOGISTICS | JUNE 2017

to as many as 10 to 20 traditional soil-based areas, depending upon the crop. Vertical farms offer many environmental benefits as well. Farming indoors eliminates the need for fossil fuels now used for

plowing, applying fertilizer, seeding, weeding and harvesting.” No one thinks of New Jersey as a hotbed for farming, but in an abandoned steel mill in Newark—about as urban as you can get—leafy www.foodlogistics.com

greens such as spinach, arugula says Tim Feemster, managing prinand kale are being grown in vertical cipal of Foremost Quality Logistics stacks without soil, without water in Dallas. “Verizon is doing a test and without sunlight. The company program at some of the wineries in behind vertical farming, the Monterey (California) AeroFarm, has so far Being area. They put sprinkler sysinvested more than tems in the vineyards and able to $30 million into the telemetry in the ground to minimize measure moisture, and turn project, using a technolcold ogy called aeroponics. it on only where needed. It storage is a really saves water. The techA large growing container about 20 feet big deal. nology is there. With IoT high contains seven (Internet of Things) today, If they can do tiers of growing beds that, it’s a huge it allows much more data to about 20 feet in length. advantage in cost be more efficient.” Above each bed are Gregory Brun, senior vitiand pricing.” columns of LED lights, culturist at Delicato Family Tim Feemster, Foremost Quality taking the place of natVineyards, one of three Logistics ural light that the plants wineries using the system, photosynthesize. The adds, “As an irrigation tool, growing medium is a microfleece the solution is not only economical membrane, and a nutrient-rich mist and scalable, it gives growers an beneath the reusable cover keeps integrated view of the vines’ water the plants moist. needs to improve quality and drive Opponents, however, cast doubts sustainability. It’s one of the most on whether the trend can be finanrational approaches based on water cially viable as well as productive constraint evaluation.” enough to cut deeply into the Transportation worldwide hunger problem. and Distribution So what else is going on down on the farm? Transportation is a key element Probably the No.1 concern is in any supply chain, of course, but water. Farms are moving from it takes on added importance in what’s known as flood irrigation to the food and beverage industry, drip irrigation and spray irrigation, especially with products that must more selective ways of watering the be refrigerated. Ginsberg’s Foods, crops and conserving water. an independent food distributorAccording to the U.S. Geologiship in Hudson, New York, can serve cal Survey (USGS) Water Science as a microcosm for how an efficient School, about 39 percent of all the transportation management system fresh water used in the United (TMS) cannot only greatly reduce States goes to irrigate crops. After its carbon footprint and reduce use, much of this water cannot be emissions, but also improve the reused because it evaporates and bottom line. transpires in the fields. Family owned since beginning There are ways to help. Leveling as a local grocery store in 1909, of the fields means that water will Ginsberg’s has 35 trucks that cover flow evenly and not downhill, missmore than 30,000 miles per week ing crops and being wasted. Surge in six northeastern states. Like flooding also can be used. Instead most food distributors, Ginsof just flooding the field haphazard- berg’s Foods has used traditional ly, water is released at scheduled fixed route dispatch and routing intervals to reduce runoff. Finally, practices, delivering loads to the farmers are recapturing runoff same customers the same day each in ponds and pumping it back to week. The system was complicated where it can be reused in the next because many customers don’t have cycle of irrigation. standing orders, and many of them Technology also is playing a role, require the distributor to adhere to www.foodlogistics.com

a four-hour delivery window. In 2015, the company decided that a dynamic routing system that would account for orders and delivery windows, while being fully integrated with onboard communications technology, was necessary to manage and monitor deliveries by account on a real-time basis. After a review, Ginsberg’s selected TMW Systems, a Cleveland-based transportation software provider to commercial and private fleets, brokerage and 3PLs. Ginsberg’s replaced its legacy routing application with TMW’s Appian DirectRoute software to simplify fixed-route creation and management, and its DRTrack Operations solution to automate daily routing and enable mobile communication with drivers of each of the company’s 51 trucks. They also implemented PeopleNet Solutions, TMW’s sister company, for onboard technology, including real-time diagnostics and performance monitoring. The integrated solutions allow Ginsberg’s sales team to monitor delivery performance by account on a real-time basis to enhance customer communication and satisfaction. The implementation was completed and operational on March 1, 2017. Already, Ginsberg’s Foods has seen a return on investment and is on track to save more than $571,000 annually.

Warehouses and DCs The energy it takes to heat, cool and light a large food warehouse or distribution center is enormous— even more for cold and frozen storage than dry goods. “Being able to minimize energy in cold storage is a big deal,” says Feemster. “If they can do that, it’s a huge advantage in cost and pricing. And it’s good for the environment. Inside, cold storage is going to LED lighting. It’s energy efficient and doesn’t generate heat. In the old environment, there was no choice— they had to have light. There also are motion sensors, so areas that

39%

of all fresh water used in the U.S. goes to irrigate crops. U.S. Geological Survey Water Science School

Irrigation used to grow food that is thrown away could meet the domestic water needs of

nine billion people.

40% of U.S. food supply is never eaten. This is double most other industrialized nations. The Food Policy Research Center

The average American throws away 20 pounds of wasted food each month. One year of food lost on the farm equals about 300 million barrels of oil.

JUNE 2017 | FOOD LOGISTICS

COVER STORY

continued

aren’t in use won’t be wasting energy on lighting.” On the dry side, many companies also are going to LED lighting or T5 or T8 fluorescent bulbs, which come with one-third lower energy costs, he adds. Yusen Logistics, a New Jersey-based 3PL, has comAmericold pleted an LED retrofit has saved that will reduce electricity usage and expense 320 million by more than 60 percent kwh since at one of its Carson, California, warehouses. 2010. That The company replaced translates 966 outdated fixtures into 264 with LEDs at the million 486,000-square-foot pounds facility. The change is exof CO2.” pected to reduce energy use on average by one Daniel Cooke, Americold Logistics million kilowatt hours (kWh), and decrease power consumption by as much as 65 percent over the previous year. Atlanta-based Americold Logistics is a temperature-controlled warehousing and transportation company specializing in the storage of perishable goods. Energy consumption is a vital part of what they do, says Daniel Cooke, director of marketing. Hochfelder is a “We’re always looking at the freelance journalist most appropriate, most socially who has covered a responsible practices to implement variety of industries that still ensure we can offer the in his career, includ- temperature-controlled services ing supply chain. our customers need. We install He also served as motion-sensing LEDs in tacitly upthe former editor of grades and new build plans, and we Supply & Demand include fast-closing doors to keep Chain Executive. air temperatures more constant.” Hochfelder is Forty-five Americold sites have based in Arlington been fitted with activated LED Heights, Illinois. lighting systems that illuminate

FOOD LOGISTICS | JUNE 2017

as-needed and switch off automatically when personnel leave. That saves more than 14 million kWh per year. Forty-two of the company’s sites have completed Cascade Energy system tune-ups to assess and fine-tune refrigeration system operations. “We take part in every demand response program offered in the United States,” Cooke explains. “When utility companies are expecting heavy power draws, they will reach out and ask us to reduce our own power draw. Our facilities are so well insulated that we’re able to reduce our power need for a facility for a period of time without affecting conditions in our cold rooms. This means that utility companies may not need to fire up additional power stations, many of which are coal-burning, and so we reduce overall power generation needs.” With its sustainability initiatives, including solar power generation at a Massachusetts facility (generating up to 500,000 kWh of clean energy yearly) and a turbine generator in Salinas, California, that generates up to 600,000 kWh of clean energy each year from a natural gas fuel cell, Cooke says Americold has saved 320 million kWh since 2010. That translates into 264 million pounds of CO2 equivalents that were not released into the atmosphere. Finding sufficient warehouse space also is a concern. Too big? Too small? Too far from customers? The latest solution is called FLEXE, an online marketplace for ondemand warehousing solutions. The platform connects shippers who need warehouse space and services with warehouse providers that have excess capacity and resources. FLEXE currently has more than 500 warehouse partners in North America. The system is designed to help with inventory overflow and fulfillment needs. Adds Feemster, “Technology and WMS allows multi-tenant inventory management. Small- and medium-size companies in the grocery 3PL space will combine multiple orders to a single distribution, may-

be ship three or four [brands] to the Kroger warehouse at once.” Moving around the warehouse, forklifts also are playing their part in going green. Hydrogen fuel cells, which don’t generate heat are more efficient than the former systems. They can stand cold air in a freezer or refrigerated unit, and they’re easily and quickly refilled.

On the Fork The Food Policy Research Center says that about 40 percent of the United States food supply is never eaten, among the highest rates of food loss globally. At 1,500 food calories lost per person per day, that is double most other industrialized nations and 50 percent more than was lost in the 1970s. “Producing food uses resources and causes environmental impacts, such as water pollution, soil erosion and greenhouse gas emissions,” the FPRC report says. “Discarding food drains the food supply in a world with a growing demand.” According to the Grace Communications Foundation, only 3 percent of food is composted in the United States. As a result, uneaten food is the single biggest component of municipal solid waste. In landfills, food gradually breaks down to form methane, a greenhouse gas that’s at least 25 times more powerful than carbon dioxide. (Grace develops strategies to increase public awareness of critical environmental and public health issues created by the industrial food system and to advocate for more sustainable alternatives.) Consumer food waste also has serious implications for energy usage. A study by the consulting group McKinsey found that household food losses are responsible for eight times the energy waste of farm-level food losses due to the energy used along the food supply chain and in preparation. In addition, food production releases hundreds of millions of pounds of pesticides into the environment each year and is the leading cause of fresh water pollution. www.foodlogistics.com

FOOD AND BEVERAGE DISTRIBUTION THRIVES WITH THE RIGHT AUTOMATION.

Growing your food or beverage business starts with improving storage, retrieval and delivery efficiency. And with PowerStore®, the deep lane pallet storage system from Swisslog, you benefit from the most flexible and scalable automation of its kind. PowerStore is designed to fully leverage your existing facility to provide optimum density, the highest throughput and ultimate reliability. Every warehouse — regardless of shape or size — deserves automation. Discover where the right automation can take you at swisslog.com/GrowWithAutomation. © 2016 Swisslog

3PL/REFRIGERATED LOGISTICS

BY CHRIS LEWIS

Sweet

DELIVERIES

As confectionery sales continue to rise around the world, shippers are seeking assistance from 3PLs to ensure their products are delivered on time and in optimal condition.

Chris Lewis writes frequently on the global supply chain and a variety of transportation and logistics topics.

epending on whom you ask within the food industry (and where the subject matter experts are located), confectionery purchases are either rising or falling. But, regardless of the variations in opinions on sales, the influence of confectioneries within the cold chain can’t be understated. As the products continue to impact the industry as a whole, confectionery producers and shippers must overcome a variety of challenges to ensure their customers not only acquire sweets in mint condition, but in a timely fashion as well. To achieve these objectives, many confectionery professionals are working alongside third-party logistic providers (3PLs) to improve the temperature control, transparency, branding and shortand long-term sales of their products. Food Logistics recently spoke to some of these professionals and 3PLs to better understand how confectionery producers and shippers are successfully competing in the expanding cold chain.

“We are also seeing more aggressive marketing outside of the United States by U.S.-based companies, with more clients asking for solutions to export products,” says Bob Lilja, chief operating officer and senior vice president, operations for Weber Logistics. “Industry consolidation in the last half dozen years has also changed the dynamic, as larger shippers are now tendering a larger variety of

 Temperaturecontrolled equipment, like the type shown here from Q Products & Services, is the most common form of protection used by confectionery shippers.

Confectionery Sales Growth: Opportunities and Challenges Although supply shortages likely will stall North America’s confectionery sales growth in the coming

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years, sweets still remain a growing segment in the cold chain globally, according to Mark McKendry, vice president of intermodal at NFI. After all, producers are increasing their sales volume through various methods, including consolidation, product line diversity and shipping from countries like China—which have made significant inroads in the confectionery market—where labor and ocean shipping costs remain low.

www.foodlogistics.com

6/6/17 8:40 AM

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Performance Driven

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3PL

continued

 Third-party logistics provider NFI offers trucks equipped with Thermo King refrigeration units to keep products at the optimal temperature.

Most stores do not have space to maintain even a few pallets of confectionery product,

so timely deliveries are a must.” Bob Lilja, Weber Logistics

products into the confectionery supply chain, especially snack foods with chocolate elements that need temperature-controlled distribution.” As the opportunities for confectionery growth continue to rise, especially overseas, producers also are encountering a wide array of challenges. For starters, as a means to reduce the public’s sugar consumption, proposed government regulations may increase confectionery producers’ taxes in some regions of the world, according to McKendry. Not to mention, many of their warehouses are not configured for 55 to 65 degrees Fahrenheit—an ideal temperature zone for most confectioneries—and their providers are often small, lack new technology and do not provide service to some geographic areas. The challenges are equally apparent for shippers as well.

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In particular, temperature sensitivity is a critical element of confectionery shipping. Not only are products at risk for exposure to temperature fluctuations and extreme temperatures, but companies’ brands may be directly impacted, especially if their products’ textures and appearances are altered. “Temperature-controlled equipment is the most common form of protection used by shippers,” says Kevin Lynch, director of food and beverage at Q Products & Services. “Another is passive temperature protection, which provides shippers flexibility to use both temperature control and dry equipment to reduce costs and minimize supply chain disruptions.” In addition to temperature sensitivity, shippers must also consider the influence that recent industry consolidation, along with developing markets’ increase in disposable income, has had on product diversity, especially in an industry that was previously focused on core products for the most part. “Product diversity and developing markets will be key drivers of growth for the confectionery segment in the coming years,” McKendry states. “So, as the needs of shippers’ supply chains evolve, particularly with consolidation and product diversity, they can receive assistance from supply chain solutions providers who can streamline processes, produce seamless transitions and accommodate growth.”

An Engaging, Transparent 3PL Partnership

tionery shippers require various offerings from their 3PL partners, including, temperature control, time-defined service performance and transparency. For instance, since confectionery products are subject to high and low temperatures outside of the 55 to 65 degree Fahrenheit range, their temperatures must be maintained throughout the entire shipment process. “Time-defined service performance is also important,” says Lilja. “Most stores do not have space to maintain for even a few pallets of confectionery product, so timely deliveries and appointments are necessary to keep products and delivery trucks moving.” Transparency, with regard to 3PLs’ approaches to moving or handling goods (source-to-factory, factory-to-distribution center or last mile logistics), is also key. To achieve supply chain visibility, 3PLs must remain informed of industry regulations and trends so that their assets or facilities can meet all food safety guidelines. At the same time, 3PLs also should be compliant of any changes that may affect food manufacturers, and prepare for them well in advance of their implementation. “This proactive preparation and compliance can keep food products safe, while also minimizing the risk for recalls or fines,” McKendry explains. “An end-to-end approach to supply chain solutions also helps confectionery shippers seamlessly integrate and ensure compliance across their supply chains.” Third-party logistics partners should also consider engaging

To successfully maintain sweets’ appearance and appeal, confec-

www.foodlogistics.com

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vikingcold.com/savings

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3PL

continued

with confectionery shippers, often beginning conversations simply, but intelligently, and with a focus on their supply chains. For example, according to McKendry, they can ask shippers where they source their cocoa from, where it is processed into finished goods, and how they are managing their inbound and outbound logistics. Such questions then lead to further questions, and eventually, information that can be used to help producers develop comprehensive solutions that address their specific requirements. “Whether it’s from a global, North American or short haul perspective, 3PLs’ abilities to address customers’

needs, via customized solutions, enables them to add value to the cold chain,” McKendry adds. “It is important for 3PLs to have the expertise and scale they need to grow with their customers as they offer confectionery solutions like cold chain distribution, global logistics, real estate or temperature-controlled transportation. Aside from offering such solutions, supply chain partners like Q Products & Services can also provide confectionery shippers more options to protect their brands throughout their entire supply chains. As an example, since refrigerated LTL (less than load) transportation is costly and timely, shippers can use passive thermal solutions instead, so that they are able to switch their modes to dry

LTL, have lower rates, ship products to customers faster, and in turn, improve their branding. “Furthermore, some grocery retailers have asked supply chain partners to help improve delivery practices to the grocery aisle,” says Lynch. “Using temperaturecontrolled equipment is not always operationally feasible, especially during holiday seasons like Halloween. Having a unique solution to protect sensitive chocolate without refrigeration can be very advantageous to retailers, helping them to protect shippers’ brands.”

Not Too Hot, Not Too Cold Without question, confectionery cargo is unique. According to

When you need something shipped immediately, Old Dominion Expedited delivers. Our focus on premium service means every shipment arrives with one of the lowest claims ratios and one of the best on-time records in the industry.

Old Dominion Freight Line, the Old Dominion logo, OD Household Services and Helping The World Keep Promises are service marks or registered service marks of Old Dominion Freight Line, Inc. All other trademarks and service marks identified herein are the intellectual property of their respective owners. © 2017 Old Dominion Freight Line, Inc., Thomasville, N.C. All rights reserved. LOGISTICS | JUNE 2017 are used with the permission of Major League Baseball Properties. Visit MLB.com. Major LeagueFOOD Baseball trademarks and copyrights

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Lilja, its packaging has quite a bit of unfilled space, so cartons can crush easily and must be handled carefully. The raw materials used to create the final products are also very valuable, so providers (and their subcontractors) must have cargo liability that aligns with the actual value of the goods that are transported. Of equal importance, not only should the cargo not get too hot, but it also can’t be subjected to extremely cold temperatures either. 3PLs’ temperature-controlled services must be able to address temperature-related challenges, such as loading products from facilities with proper temperatures to containers that are below zero degrees Fahrenheit, across the entire supply chain. And, since confectionery production facilities often don’t have much warehousing space, 3PLs should also provide shippers a variety of temperature-controlled

assets on-site. “Third-party logistics providers can also manage specific appointment windows for ‘live’ loading, if the shippers allow for it,” McKendry says. “There will need to be visibility to trailer temperatures throughout the shipment cycle though, and the temperature requirement is often dictated by the shippers. That data, and its interpretation, can mitigate claims and allow shippers to pinpoint issues in their supply chains.” After all, the influence of temperatures is dependent upon the specifics of the shipment; some confectioneries don’t need to be placed in refrigerated containers or trailers, while others can be stored outside of temperature-controlled environments for short periods of time. Generally though, confectioneries should be stored in refrigerated containers during the summertime and in heated trailers during the winter months, as confection-

ery cargoes are just as prone to damage in freezing temperatures as they are to destruction in the heat. “When chocolate is exposed to temperatures below 45 degrees Fahrenheit, it can ‘bloom’, causing a white, chalk-like look, which changes the color and taste of the product and makes it unsellable,” Lilja explains. In addition, “Crystallization of the goods can also occur if a load of chocolate is loaded and shipped in an ambient container or trailer,” McKendry adds. “To prevent damage from freezing and hot temperatures, 3PLs can monitor cargo in real time and remotely control temperatures to ensure products remain at ideal temperatures. By looking for 3PLs with expertise, capabilities and temperature-controlled assets, confectionery shippers can ensure their products have the right temperature for every season and climate.”

Since confectionery production facilities have little warehousing space,

3PLs should provide a variety of tempcontrolled assets on site.

OD Expedited offers: • Next-day arrival • Delivery at a guaranteed time • Weekend Promise: guaranteed Friday to Monday delivery

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www.foodlogistics.com

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| FOOD LOGISTICS

6/6/17 8:40 AM

COVER STORY

BY EDITORIAL STAFF

2017 TOP GREEN PROVIDERS S

Since 2010, Americold has saved more than 320

million

kilowatt-hours and 264

pounds of CO2.

ustainability continues to be a driving force for nearly every type of business today. For companies in the food and beverage sector, taking an active role in promoting sustainability throughout their operations is crucial considering the urgency to reduce the food chain’s carbon footprint and preserve the already thin profit margins. Food Logistics’ annual Top Green Providers list offers logistics professionals a guide to the providers, manufacturers and software and technology companies that have found new ways to promote sustainability throughout their operations and those of their customers. The following are expanded profiles of some of the companies on the 2017 Top Green Provider list:

Alliance Shippers Inc. www.alliance.com Alliance Shippers continues to invest in state-of-the-art refrigerated trailers and technology, with a fleet of more than 2,100, providing customers with energy-efficient protective service via rail intermodal and highway. Alliance Shipper’s OEMs (original

FOOD LOGISTICS | JUNE 2017

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List

equimpent manufacturers) are encouraged to use products and components in the construction and maintenance of its trailers that reduce air pollutants associated with freight transportation, such as low-rolling resistance tires for greater fuel economy while on the highway. Its refrigerated fleet provides cost-effective capacity and a cleaner air alternative, operating in rail intermodal at service levels comparable to single driver trucks in an over-the-road environment. Alliance Shippers currently is installing solar panels on the roof of its trailers to further reduce fuel consumption, while recharging engine batteries. Allliance recently installed energy-efficient LED lighting at its New Jersey, Illinois and Kansas sites, with a reduction in electricity use of about 50 percent.

and 264 pounds of CO2 with its lighting, materials and refrigeration equipment choices. Americold’s central system monitors power consumption and temperature levels, and should something trigger an out-of-tolerance alert, the company is able to adjust quickly to ensure they are always running as efficiently as possible. Additionally, Americold belongs to every U.S. utility companies’ demand response program, so should a brownout alert be triggered, Americold is able to do its part, and draw down power requirements to keep the lights on elsewhere. In 2017, Americold will add metrics to measure the percentage of waste diverted away from landfills, with the goal of significant land fill diversion rates in the coming years.

Americold

ASSA ABLOY Entrance Systems

www.americold.com Americold continues to evolve services and procedures to ensure they are a responsible choice for supply chain solutions. Since 2010, Americold has saved more than 320 million kilowatt-hours (kWh)

www.assaabloyentrance.com The ASSA ABLOY RR200 M is a high-performance door designed to secure critical mobile environments from the influence of ambient conditions while providing greater www.foodlogistics.com

6/5/17 1:16 PM

security, safety and convenience to delivery workers. It does this by operating frequently, automatically and at a high rate of speed to minimize air exchange across the opening while allowing only authorized traffic to pass. By minimizing air exchange through automation, reefer run-time is significantly reduced, and temperatures are more stable. This provides a safe environment for drivers, as well as food, with tightly maintained cargo temperatures, and a cleaner planet by significantly reducing fossil fuel consumption in the cold chain.

DSC Logistics www.dsclogistics.com Sustainability is a core component of DSC Logistics’ supply chain strategy. DSC implements several largescale projects on a network-wide basis every year, related to both building and operations. They track performance on key metrics, including electricity, water and waste tonnage. Additionally, It has consolidated shipping and implemented a strict “no idle” policy. By consolidating multiple shipments with a single destination onto a shared truck, DSC can reduce trucks on the road and miles traveled, while also reducing costs for participants in the program. Its expertise in the area of supply chain network modeling and design has the greatest impact on its customers’ carbon footprints. Through the design and implementation of more efficient supply chain networks, large carbon footprint reductions have been realized with a number of strategic partners.

Elite Transit Solutions LLC www.elitetransitsolutions.com Elite Transit Solutions’ automated software and sales and operation planning (S&OP) has www.foodlogistics.com

FLOG0617_24-31_AwardGreen AW RG.indd 25

reduced the time drivers are idling by dispatching in 7 minutes versus the industry average of 45 minutes, which allows less CO2 emissions into the air. By creating forward changes, ETS has been able to dictate the market and create plans for drivers, enabling the most logistically sound choices, concluding in minimal deadhead miles, thus using less gas and pollution. By channeling such efficiencies, they are able to make sure all shipments are delivered seamlessly with minimal adverse effects on the environment. ETS developed Corrective Action Plans (CAPs), generated and reviewed weekly, to hold all parties accountable and provide visibility of improvements to customers and carriers. ETS is able to drill down, analyze problems and create solutions to further enhance sustainability.

ESI Design Services www.esigroupusa.com ESI Group is a proven leader in sustainability, with an integrated approach to the design and delivery of temperature-controlled food distribution and processing facilities nationwide. Its design-build team has 25-plus year’s expertise in designing and constructing sustainable buildings. ESI has been successful in achieving LEED certification for cold storage facilities even when the U.S. Green Building Council didn’t have a specific program for these types of facilities. Whether reaching for a green certification or not, ESI actively pursues new technology and techniques that aid in a cost-efficient and sustainable building. Its methods go beyond best construction practices and include analysis and facilitation of operation and maintenance procedures. These strategies are tailored to individual client objectives and are designed to exceed baseline water and energy needs. ESI’s entire building approach leads to a resource-efficient and environmentally friendly structure that controls life-cycle costs.

FST Logistics www.fstlogistics.com FST Logistics continued to add and enhance its initiatives in 2016-17 by increasing its purchase of recs (Renewable Energy Credits) from 1.2 million recs to 1.5 million recs. Overall, this increased its reusable resources to account for 25 percent of the power needed to run its temp-controlled warehouses. Within the last 12 months, FST also has increased its compressed natural gas (CNG) truck fleet by an additional five 100-percent CNG powered units, moving the total to eight CNG and eight dual-fuel units. Its recycling efforts of cardboard and warehousing materials continues to climb, adding an additional 2 tons in the past 12 months from a total of 23 tons to 25 tons. FST also continues to add under trailer skirts to its fleet, with 60 percent having them as compared to 30 percent at this time last year.

FST Logistics has increased its reusable resources to account for

25 percent of the power needed to run its tempcontrolled warehouses.

full circle catering www.fullcirclecatering.com In the past year, full circle catering has added more sustainable practices, including finding a local source for eggs that offers a reuse program for cartons, using milk distributed in glass bottles, buying local farm fresh butter in bulk, as well as keeping goods sourced locally over 80 percent. full circle catering consistently provides the Shenandoah Valley area with locally sourced and handmade foods. Its sustainability practices include working PROVIDERS one-on-one with neighboring farms to grow the basic foods; buying with a no packaging or reusable packing motto; growing its own organic herbs and garnishes; offering a weekly meal service with even

2017 TOP

JUNE 2017 | FOOD LOGISTICS

6/5/17 1:16 PM

Other

Water & Raw Materials

Transportation Equipment

Transportation Provider

3PL

Software & Technology

Refrigeration

Reclamation & Recycling Programs

Pallets, Packages & Containers

Lighting

Lift Trucks & Related Equipment

Facility Design

Material Handling Systems

Alternative Fuels & Energy

A. Duie Pyle

www.aduiepyle.com 

AeroFarms

www.aerofarms.com Sustainable agriculture

AFN

www.loadAFN.com 

Alliance Shippers Inc.

www.alliance.com  Freight broker/IMC

Americold

www.americold.com    Food storage and distribution

Angleboard

www.angleboard.com 

ArrowStream

www.arrowstream.com 

ASSA ABLOY Entrance Systems

www.assaabloyentrance.com

Averitt Express

 

www.averittexpress.com

BRT

 

www.blueribbontransport.com   

Carter Distribution Ltd

www.carterfreight.com

Central Storage & Warehouse Co.

www.csw-wi.com

CHEP Pallecon Solution



www.cheppallecon.com

Choptank Transport

 

   

 



      

www.choptanktransport.com 

Crown Equipment Corporation

www.crown.com/en-us.html

DB Schenker, Inc.

www.dbschenkerusa.com

DCS Logistics

 

   



Freight forwarding/logistics

www.dsclogistics.com 

East Coast Warehouse & Distribution

www.eastcoastwarehouse.com

Elite Transit Solutions LLC

www.elitetransitsolutions.com



www.englandlogistics.com



England Logistics

     

enVista www.envistacorp.com    Supply chain consulting, network strategy, enterprise solutions, and global transportation spend management and visibility solutions ESI Design Services Inc.

www.esigroupusa.com

Flux Power



www.fluxpwr.com

FreightCenter

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www.freightcenter.com 

FST Logistics

www.fstlogistics.com 

full circle catering

www.fullcirclecatering.com

Hirschbach Motor Lines Inc.

  Food services

www.hirschbach.com

Hub Group Inmar

www.inmar.com 

Kane Is Able

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www.kaneisable.com  

Kenco www.kencogroup.com         Knichel Logistics

 

www.knichellogistics.com  

Knight Transportation

www.knighttrans.com    Intermodal, dryvan, logistics, port

Layer Saver

www.layersaver.com

Lineage Logistics

  

www.lineagelogistics.com   

Marten Transport

www.marten.com 

higher quality recycled BPA-free containers with a reuse program; and encouraging recycling, composting, buying, shopping and eating locally within its community and staff.

Kane Is Able www.kaneisable.com Kane Is Able is committed to reducing pollution and congestion with smarter trucks and delivery methods. The company has been at the forefront of the collaborative distribution model, essentially getting products to market faster and cheaper. Through its LEAN



www.hubgroup.com  

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practices, Kane Is Able has taken hundreds of thousands of dollars out of customers’ supply chains in areas such as demurrage and contract packaging. Kane Is Able captures its effectiveness in collaborative distribution by understanding the costs between LTL (less than load) and TL (full truckload). For LEAN projects, they track all data and results.

Kenco www.kencogroup.com In 2015, Kenco completed lighting upgrades at three facilities: Allenton, Pennsylvania; Portage,

Michigan; and Chattanooga, Tennessee. The lighting systems are anticipated to produce an annual savings of more than $227,000. Kenco also installed air dryers in one facility’s restroom, reducing towel usage and saving $2,100 annually, as well as installed low flush and hands-free values on commodes and urinals, saving 52,000 gallons and $1,150 yearly. Additionally, Kenco has employed new sustainability dashboards. The dashboards bring together an array of data to conveniently display progress on key sustainability metrics. The dashboards track usage of www.foodlogistics.com

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we TURN HIDDEN COSTS INTO FOUND PROFITS KINEXO uncovers the hidden costs within your supply chain and provides you with actionable insights and solutions that are proven to reduce costs, increase transparency, maximize operating efficiency and improve profitability. Our comprehensive approach enables you to see your supply chain more clearly, and strategically propel your company forward. Many of North America’s most well-known and respected brands already rely on KINEXO to help them achieve their optimum supply path, and we can help you too. Contact us today to learn more.

GoKinexo.com FREIGHT MANAGEMENT | REDISTRIBUTION | SUPPLY CHAIN ENGINEERING

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Other

Water & Raw Materials

Transportation Equipment

Transportation Provider

3PL

Software & Technology

Refrigeration

Reclamation & Recycling Programs

Pallets, Packages & Containers

Lighting

Lift Trucks & Related Equipment

Facility Design

Material Handling Systems

Alternative Fuels & Energy

Murphy Warehouse Company

www.murphywarehouse.com  

Nature’s Frequencies

www.foodfreshnesscard.com Freshness technology

Newport-St. Paul Cold Storage

www.newportcold.com

NFI

www.nfiindustries.com

North American Bioindustries



 

    

www.northamericanbio.com  Facility maintenance products

Nuovo Group Inc.

www.nuovogroupinc.com

ORBIS Corporation

  

www.orbiscorporation.com

Paragon Software Systems

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www.paragontruckrouting.com 

Penske Logistics LLC

www.penskelogistics.com

Pinnacle Freight Systems Inc.

   

www.pinnacletruck.com

PLM Trailer Leasing Plug Power Inc. Reusable Solutions Group



 



  

www.plugpower.com

   

www.reversesolutions.com

RLS Logistics

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www.plmtrailer.com

www.ReusableSolutionsGroup.com

Reverse Recycling

 



www.rlslogistics.com 

Romark Logistics

www.romarklogistics.com  

Ruan Transportation Management Systems

www.ruan.com

Rubicon Global



www.rubiconglobal.com  

Ryder www.ryder.com    

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Saddle Creek Logistics Services

www.sclogistics.com

Schneider

www.schneider.com  

SYSPRO

   

www.syspro.com 

Taylor Farms

www.taylorfarms.com Fresh food processing facilities

TemperPack

www.TemperPack.com   

Titan Farms LLC

www.titanfarms.com

Transplace

www.transplace.com 

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Transportation Insight www.transportationinsight.com    Supply chain analytics and reporting, parcel program management, omni-modal integration, LEAN consulting and secondary packaging Uncommon Carrier, Inc.

www.uncommoncarrier.com  

UNEX Manufacturing Inc.

www.unex.com

United Natural Foods Inc. United States Cold Storage

www.uscold.com

VAI

   

www.vai.net 

Viking Cold Solutions

www.vikingcold.com

Werner Enterprises/Werner Logistics



www.werner.com 

Westfalia Technologies Inc.

www.westfaliausa.com

WSI (Warehouse Specialists LLC)

 

www.wsinc.com

Yale Materials Handling Corporation

www.yale.com/north-america/en-us

Zipline Logistics



 

www.ziplinelogistics.com 

electricity, natural gas and water; monitor labor costs; and measure the output of both landfill waste and recyclable materials. Baseline data on each metric is monitored to set goals toward lowering costs, reducing energy use, and producing less waste in customer warehouses managed by Kenco.

Nature’s Frequencies www.foodfreshnesscard.com A commercial kitchen or restaurant throws away anywhere from 3 to 7 percent of its purchases due



www.unfi.com Organic food distributor

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to spoilage. A supermarket can throw away 4 to 6 percent due to spoilage and incur unhappy customers as the products they purchased spoiled rapidly. A significant reduction of the produce spoilage can be achieved with the implementation of the Food Freshness Card by Nature’s Frequencies. A case study at Bridgewater State University administered by Sodexo quantified actual savings, estimating on average, approximately $500 per month or 3 percent of purchases were

thrown away due to spoilage. After installation of 36 Food Freshness Cards, spoilage instantly went to $0 and remained there during the three-month test period, totaling more than $1,500 in savings. The Food Freshness Card is not a gas, is non-invasive, never touches the produce, and is able to reduce spoilage at any point in the food chain. Starting from the farm, packaging, pallet or container to the distributor and the retailer or in the home, the addition of the Food Freshness Card can naturally extend www.foodlogistics.com

6/5/17 1:16 PM

the life of just about all fruit, vegetables and breads (excluding bananas).

Penske Logistics LLC www.penskelogistics.com Penske Logistics helps its food and beverage customers solve the unique challenges associated with its products from pickup through delivery. Penskeâ&#x20AC;&#x2122;s specialized services include: temperaturecontrolled supply chain (uninterrupted cold chain for both fleet and warehousing); flexible vendor pickups and just-in-time delivery; sophisticated equipment tracking; an understanding of store and vendor requirements; and delivery coordination between vendors, distribution centers and stores. By helping to reduce miles and time, Penske optimizes the food and beverage supply chain and helps its customers solve supply and delivery challenges. Penske utilizes transportation management systems (TMS) and warehouse management systems (WMS) to improve warehouse

operations and labor planning. In addition to the transportation efficiencies, Penske implements various best practices to ensure the safe handling of perishable goods, including employee training in sanitary practices, equipment cleaning, temperature control, disclosure of prior cargo hauled in vehicles, physical security of facilities, shipment monitoring and communications planning, and using cross-docks and smaller warehouses and trucks for more frequent delivery.

PLM Trailer Leasing www.plmtrailer.com PLM is committed to helping customers reduce greenhouse gas emissions through a holistic approach in refrigerated transport. With the razor thin margins of food distribution, it is difficult for companies to commit to going green unless there is a quick upside for the conversion. PLMâ&#x20AC;&#x2122;s approach to helping customers consider the use of hybrid refrigeration units is by walking them through an evalua-

tion process of existing technologies, personalized fleet life-cycle management matrix, and on-site evaluations with results driven through comprehensive modeling tools and data analysis. PLM helps customers evaluate a true ROI that can help them make the decision to go green to reduce its carbon footprint while driving significant cost out of operations. PLM uses actual data provided by the customer and its own ColdLink telematics solution to translate optimal quantifiable carbon footprint reduction. They have documented results of as much as an 84 percent carbon footprint reduction, with an added benefit of driving out up to 80 percent of the cost of fueling a refrigerated trailer within an operation.

RLS Logistics www.rlslogistics.com RLS Logistics continues to lead efforts for sustainability through its expanded solar program. Additionally, the logistics provider encour-

Our Business Priorities:

The Customer The Customer The Customer

Service Service Service

www.alliance.com www.foodlogistics.com

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JUNE 2017 | FOOD LOGISTICS

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COVER STORY continued

ages clients in its e-commerce business unit to use sustainable recyclable shipping containers, which has enhanced its client’s sustainability efforts, as well as RLS Logistics. RLS Logistics has developed dashboards from its power company, which detail carbon foot print comparisons.

Romark Logistics

Viking Cold has saved clients over 7,974

MWh,

reduced carbon footprint by 4,400

metric tons and

prevented millions of dollars in prdouct loss.

www.romarklogistics.com Romark Logistics is a pioneer in reducing its carbon footprint, thus benefiting the customers they serve. Its facilities have implemented solar initiatives, LED lighting upgrades, baler and compactor use, recycling programs, chemical reduced pest control management, paperless invoicing, and employee incentives to reduce non-driving emissions. Romark Logistics measures its energy initiatives through several internal tracking programs on the solar panel side. The company also tracks energy consumption at its facilities pre- and post-installation of solar and LED materials to measure savings. In addition, Romark implements internal KPI (key performance indicator) programs to track its sustainable footprint throughout the country.

Ryder www.ryder.com Everything Ryder does, from optimizing logistics networks to deploying advanced fuel vehicles in fleets, is about making its customers’ food and beverage supply chain operations more efficient. This efficiency also has environmental benefits. The area where Ryder has seen the biggest impact is in helping companies deploy natural gas vehicles (NGV) into its fleets. In fact, they are the industry leader in NGV solutions for the commercial transportation industry. Ryder has

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made the upfront investment in vehicles, maintenance and fueling infrastructure to help other businesses deploy NGV technology into its fleets. Today, the company has achieved 100 million miles with its NGV fleet operations, eliminating more than 35,269 269 MTCO2e (metric tons of carbon dioxide equivalent) of greenhouse gas emissions. Ryder also has replaced approximately 15.4 million gallons of diesel fuel with lower emission domestically produced natural gas. Ryder currently has 22 NGV maintenance facilities, with more than 5,500 NGV trained maintenance and support personnel.

Transportation Insight www.transportationinsight.com Transportation Insight helps food and beverage clients establish sustainable business practices and reduce its environmental impact through its customized Enterprise Logistics Solutions anchored in a robust suite of services. Those services include a bundled technology solution that helps clients optimize loads and minimize miles travelled through its cloud-based TMS, Insight TMS, and cloud-based interactive business intelligence portal, Insight Fusion. Supply chain analytics are driven by Extended LEAN continuous improvement methodology and integrated analytics that enable clients to minimize its supply chains’ carbon footprints through strategic network design, tactical transportation optimization studies and continuous improvement updates to maintain efficiencies. Transportation Insight leverages logistics operation with an ever-expanding carrier network to match freight and assets and minimize empty miles.

Viking Cold Solutions www.vikingcold.com Viking Cold Solutions provides passive Thermal Energy Storage (TES) solutions for the commercial freezer space that can run for efficiency, load shifting or peak de-

mand reduction, meaning customers can decide how they want to use energy, and when they want to buy it. By complementing an existing refrigeration system with its passive thermal cells containing Phase Change Material and advanced controls, Viking Cold Solutions is enabling greater refrigeration efficiency and 24/7 temperature monitoring. Viking Cold has saved clients over 7,974 MWh (megawatt hour), reduced carbon footprint by 4,400 metric tons, and prevented millions of dollars of product loss. Its TES solutions have been recommended for California’s Energy Efficiency Incentive Program after an independent utility study confirmed energy savings of over 30 percent.

WSI (Warehouse Specialists LLC) www.wsinc.com WSI prioritizes sustainability for its food and beverage customers by recycling large amounts of its cardboard and dunnage materials, manufacturing dunnage materials for the clients from previously used wood, using recently installed energy-efficient lighting, and increasingly using electric forklifts in its facilities to handle product. Wooden pallets are reused and repurposed frequently, where applicable. Additionally, green landscaping outside of its warehouses helps reduce the effects of storm water runoff and save costs on overhead by eliminating the need for lawn mowing. WSI recycles, reuses or repurposes nearly 100 percent of its top three largest facilities’ waste. At its high-volume Chicago facility and large Central Wisconsin facilities, nearly 100 percent of the wooden pallets used for storing product are reused. Mandatory requirements in the offices of each facility result in 100 percent of office paper and cardboard waste being recycled. WSI employees are actively engaged in community stewardship and volunteer work. Many employees telecommute, saving fuel and reducing pollution and road congestion. www.foodlogistics.com

6/5/17 1:16 PM

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Quality Control

Cold Chain

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6/5/17 1:16 PM

SECTOR REPORTS WAREHOUSING

BY RONNIE GARRETT

SECRETS TO GREATER WAREHOUSE SUSTAINABILITY Looking at energy saving efforts that include energyefficient lighting and nontraditional sources of power can boost profit margins in the food and beverage warehouse.

n the food and beverage industry, where the average profit margin is estimated at just 5.2 percent, every dollar counts. Here, the old saying, “a penny saved is a penny earned,” rings true because a warehouse or distribution center (DC) that operates inefficiently can eat up profits in short order. Consider that according to the U.S. Energy Information Administration (EIA), U.S. warehouses spend an average of $0.70 per square foot on energy, with half of that amount spent on natural gas and the other half on electricity. Fortunately, there are ways to get a handle on energy costs. Low-hanging fruits that can provide quick returns include better seals around loading dock doors; regular maintenance of heating, ventilation,

cooling and refrigeration systems; and delamping light fixtures. But, there are many other options that can help reduce energy consumption in massive food and beverage warehousing facilities. The reason for reigning in energy costs is simple; Patrick Smith, vice president, IGS Solar states, “Energy costs tend to be volatile, making it difficult to budget for this expense. When you consider that energy costs often comprise up to 15 percent of a warehouse/DC’s total operating budget, finding ways to contain this expenditure can be very valuable.” And, tackling energy expenses often is the first step toward getting a company’s sustainability ball rolling. “Energy saving is a gateway into developing a more comprehen-

 In April, Amazon announced plans to install solar panels on 15 fulfillment centers this year, enough to generate up to 41 megawatts of power, and plans to expand to 50 of its sites by 2020.

FOOD LOGISTICS | JUNE 2017

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sive sustainability program,” says Craig Riley, practice leader of corporate advisory and sustainability services for AECOM. “It’s like a winwin-win situation. You implement a program, you save energy, and as a result, you save money.”

Add LED Lights As a global third-party logistics provider with offices in 310 cities and 43 countries, Yusen Logistics’ energy expenses pack a big price tag. However, the 3PL recently lowered its energy costs by introducing LED lighting to its warehouses. Its most recent lighting retrofit occurred at its Carson, California, campus, where the company replaced 966 outdated fixtures with energy-efficient LED lights at the 486,000-square-foot facility. This retrofit is expected to reduce energy use by 1 million kilowatt hours (kWh) per year. The company expects to see a 60 percent savings in total annual lighting costs and a 65 percent decrease in power consumption as a result of the retrofit. The lighting upgrade is expected to “eliminate 309 tons of carbon dioxide each year, which is the equivalent of removing 3,488 cars from the road,” says Ryan Entis, operations support analyst of Contract Logistics for Yusen. Zone lighting also can slash energy costs. It is possible to automate lighting so that the lights turn on automatically when there is activity in specific areas/zones and turn off when there is not. “Lighting projects usually offer the best and quickest returns,” says Riley. He explains that installing HVAC systems, cooling towers and other mechanical projects costs far more than lighting upgrades. www.foodlogistics.com

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Let the Sunshine In The rooftop of the SunFed warehouse in Rio Rico, Arizona, shimmers in blue as solar arrays collect the sun’s rays and convert them into energy to power lights and fans inside the building. The company’s $1.6 million investment in solar has more than paid off, reducing SunFed’s reliance on electricity from power companies and lowering its energy bills and emissions. “It’s time for [food and beverage companies] to view their roof as an asset,” says Steve Ashkin, CEO of Sustainability Dashboard Tools LLC. He mentions that in Singapore a 38,000-square-foot warehouse’s $200,000 investment in solar is expected to pay for itself within six years. The installation converts sunlight into electricity to help power the facility’s operations. Smith adds, “Outside of the economic benefits, having a solar energy system installed at your facility positions your business as a renewable energy leader. Corporate partners increasingly want to

work with companies that have a robust sustainability program.” The first step is to determine if the investment in solar makes sense. “While most [warehouses/ DCs] have sufficient power usage and square footage to qualify for solar, we also need to consider any property limitations and economic benefits that a solar project will drive. Economic factors can include state incentives, power rates, geographic locations and weather conditions; while property considerations can include snow loading, structural integrity, roof age and/or land availability,” says Smith. If solar is not an option, Ashkin says the roof should be properly insulated and white because “white absorbs less sun and reflects heat.” He also recommends adding skylights to reduce the need for electric lighting.

Trash to Treasure Every year 40 percent of the world’s food supply ends up in the trash, but one supermarket chain,

Stop & Shop, is turning this trash into an electrical treasure at its green distribution warehouse in Freetown, Massachusetts. The company has installed anaerobic digesters that take in food waste organics from its stores, combine the waste with water, and feed the resulting slurry into the core of a waste-to-energy plant. The byproduct of this process is methane, which is used to power a generator that produces approximately 1 megawatt of power, enough to provide 40 percent of the power needs for the 1 million square-foot green distribution center. “One of our top priorities is reducing our environmental footprint,” says Mark McGowan, president of the Stop & Shop New England Division. “As part of doing business, our stores generate inedible food that cannot be donated. This inedible food will now be sent to our green energy facility where it will be converted into clean energy and used as a power source for our distribution facility.”

It’s time for [food and beverage companies] to view their

roof as an asset.” Steve Ashkin, Sustainability Dashboard Tools LLC

Control temperatures. Control costs. From your warehouse to your customer...

...and everywhere in between.

Equip your fleet: assaabloyentrance.us/RR200M ASSA ABLOY, the global leader in door opening solutions www.foodlogistics.com

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JUNE 2017 | FOOD LOGISTICS

6/6/17 10:14 AM

SECTOR REPORTS TRANSPORTATION

BY RONNIE GARRETT

➍FUEL EFFICIENCY WAYS TO DRIVE

How food and beverage fleets can leverage technology, change processes and train drivers to improve fuel efficiency and enhance sustainability.

According to the U.S. Energy Information Administration, the national average price of diesel is $2.544 per gallon as of May 15. Given that the average semi has a + fuel capacity of 150 to 300 gallons, it would cost $381 to over $762 per fill-up. Clearly fuel is a tremendous expense for the food and beverage logistics operation, and controlling fuel costs is a key component of fleet management, as well as fleet sustainability. The following article lists four ways food and beverage fleets can leverage technology, change processes and train drivers to be more sustainable.

Know Your Fuel “Fuel costs come as a function of the fuel consumed, the type of fuel and the price point of the fuel. For this reason, it’s relevant to think about the configuration of the vehicle that’s being utilized and what fuel type really makes sense for that duty cycle or application,” says Scott Perry, vice president of supply management and global fuel products for the Fleet Management Solutions business segment of Ryder System Inc. He explains a long-haul food and beverage fleet, operating trucks with a heavy Class A type configuration, will have more limited fuel options than a fleet using straight trucks to make local deliveries. Fleets, he says, have two main

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options when it comes to fuel: Diesel or natural gas. Determining which fuel makes sense comes down to the objectives of the organization. “Natural gas can restrict how vehicles are utilized, the range they have and the technology yield,” Perry says. Schneider reports in a publication titled, FACT: “Going Green Together,” that the AERODYNAMIC DRAG “overall economics of natural gas operations are not enticing carriers to expand beyond testing” for this fuel. In fact, this provider of transportation and logistics services found that natural gas delivers 15 percent less miles per gallon than diesel. Its use also increases the frequency and the time it takes to fuel the vehicle, and cuts the truck’s engine life in half. “We see diesel vehicles continuing to become more and more fuel efficient, whereas natural gas vehicles are bumping up against some of the physical constraints of the fuel and fuel combustion cycles. We don’t see much fuel efficiency being obtained [with natural gas,] but we do see results from an emissions standpoint,” Perry adds. According to Perry, natural gas conversions make sense when operating fixed route structures,

-2%

where the fleet goes out and makes deliveries and returns to a home base each day. In these cases, the range and infrastructure limitations of natural gas are no longer an issue. Perry explains that “dispatching from the same location and returning to the same location each day makes the use of some of these advanced fuels a little APPROXIMATELY easier to control. When the customer IN FUEL ECONOMY base and the delivery routes change each week, it makes the range limitations of natural gas more complex and too big of a burden because of the gaps that exist in fueling infrastructure.”

= +1%

Consider Fleet Design Wind resistance is one of the top forces working against a truck’s fuel economy. According to the Cummins MPG Guide titled, “Secrets of Better Fuel Economy,” a 2 percent reduction in aerodynamic drag results in approximately a 1 percent improvement in fuel economy. Claude Ricciardi, director of purchasing at Transervice Logistics, states when it comes to fuel economy, a lot of emphasis is placed on trailer aerodynamics, from trailer skirts to undertrays to spoilers. Low-rolling resistance tires and aero wheel covers, as well

www.foodlogistics.com

6/6/17 3:14 PM

Isuzu FTR Class 6 Low Cab Forward is Back

• Increased payload allowance for customer needs • 8 wheelbases accommodate bodies from 14–30 feet • Easy to drive with outstanding driver visibility, superior maneuverability and a tight-turning radius • More than 20% better fuel economy than previous-generation Isuzu Class 6 trucks* • Isuzu, the #1 selling LCF truck in America since 1986 • FTR, the LCF answer to Class 6 efficiency delivering a lower cost of ownership For additional information on Isuzu’s full line of Low Cab Forward trucks please visit www.isuzucv.com or call (866) 441-9638 Vehicle shown is a prototype with optional equipment; some equipment is dealer installed. Truck body represented herein are products of Morgan Corporation and Thermo King. Please see your authorized Isuzu dealer for details. * Fuel economy based upon independent third-party testing. © 2017 ISUZU COMMERCIAL TRUCK OF AMERICA, INC.

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SR: TRANSPORTATION continued

account for orders and delivery the vehicle’s overall fuel efficiency,” windows—and was integrated with says Perry. FACT: onboard communications technolWith onboard diagnostics and SIDE SKIRTS AND ogy—was needed to manage and telematics, companies can track LOW-ROLLING monitor deliveries by account on a road speed, backing applications IMPROVEMENT IN RESISTANCE TIRES real-time basis. and more, which allows them to “deFUEL ECONOMY ON TRAILERS Ginsberg’s determined that termine the good drivers from the as smooth-sided trailers, are also TMW Appian Final Mile and not-so-good drivers,” notes Perry. spec’d to improve aerodynamics. PeopleNet solutions would be the This information can help drive “Aerodynamics is a basic building best choices moving forward, and greater fuel efficiency through block of fuel economy as it applies partnered with TMW to establish targeted driver training, adds to both the tractor and the trailer,” a plan to upgrade its technology in Ricciardi. adds Perry. “The use of side skirts three phases. Phase one would see Schneider uses simulation-based Telematics and low-rolling resistance tires can the implementation of TMW Appi- driver training programs that is a key tool bring anywhere from 4 to 8 percent an Final Mile routing and dispatch demonstrate to drivers that they that will give visibility improvements in fuel economy.” software. Phase two would involve are the primary managers of truck to performance of the He adds fuel impacts are also upgrading the fleet’s onboard sysenergy efficiencies. The compavehicle, fuel economy, affected by engines and transtems with PeopleNet technology. ny has found these simulations driving habits and missions. “The use of automated In phase three, the company would result in an average fuel savings of idle time, which are transmissions can improve fuel integrate handheld computers for 335,000 gallons of fuel per year. all key components economy,” he says. point of delivery scanning. All acForward-looking collision mitito understanding the Finally, fuel calibrations and tivities were completed by March 1. gation technologies, autonomous vehicle’s overall settings used to control the speed Based on immediate results from braking systems, forward-looking fuel efficiency.” of trucks as they move down the the first month of operation, Ginsradar, lane departure control Scott Perry, Ryder System Inc. road offer fleet operators a very berg’s Foods is realizing impressive systems, in-cab video monitoring simple mechanism to control fuel savings, according to Larry Bigansystems and connectivity from a costs. Consider that every mile per do, the company’s transportation telematics standpoint, can also hour above 55 mph results in 1/10th manager. He says delivery stops drive the right driving behavior. of a mile per gallon degradation in were reduced by 5 percent, stops “With these systems in place, fuel economy. “If you’re operating at per route were reduced Ryder has seen a higher degree of 65 mph as opposed to 55 mph, you 6 percent, routes per day accountability around the drivers have already lost 1 mile per gallon were down 4 operating the Aerodynamics of fuel efficiency,” Perry says. percent and miles vehicles. They is a basic building Perry explains it is key to gear the driven went down sure they block of fuel economy make speed limiting of the vehicle toward 6.7 percent. are in tune with as it applies to both the the vehicle’s peak operating con“We have seen their surtractor and the trailer.” dition, meaning if the vehicle is set a tremendous roundings and Scott Perry, Ryder System Inc. to operate at 65 mph and is geared savings in fuel,” operate very to operate at that speed, you may Bigando adds. “We also can operate safely,” Perry says. “The fuel side of actually use more fuel if you limit its with less drivers than we did a year the equation is much the same. The operation to 60 mph. He adds, “Goago.” In fact, the company is on way drivers operate the vehicle in ing outside of the targeted speed track to save over $571,000 in its terms of how they do everything— and axle ratio can quickly degrade first year by reducing driver staffing from shifting gears to how long they fuel economy.” and fleet size. idle—can impact fuel efficiency.” Companies can use the data they Add Tech Tools Monitor Driver Behavior gather from the technology on the Like most food distributors, “Telematics is a key tool that will truck to help drivers improve their Ginsberg’s Foods has long used give visibility to performance of performance. “They can say, ‘Here traditional fixed route dispatch the vehicle, fuel economy, driving is how you’re performing individuand routing practices, delivering habits and idle time, which are all ally, here’s how the rest of the fleet loads to the same customers on the key components to understanding is performing overall, and here are same day each how our best operators in the fleet week. In 2015, FACT: are performing with regard the company to fuel economy, safety and effiEVERY MILE PER determined ciency.’ This gives them a benchHOUR ABOVE OF A MPG a dynamic mark and puts a little peer-to-peer DEGRADATION IN routing system pressure around performance,” FUEL ECONOMY that could Perry concludes.

55 mph

FOOD LOGISTICS | JUNE 2017

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1/10th

www.foodlogistics.com

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SECTOR REPORTS SOFTWARE & TECHNOLOGY

BY CARRIE MANTEY

APT APPS FOR FOOD LOGISTICS The proliferation of apps for food logistics is a testament to their value. Here are some of the latestbreaking examples.

he word app is ideally coined. While apps are typically small, specialized programs downloaded onto mobile devices, the definition of the full word, application, is putting something to a special use. And that’s exactly what food logistics apps are—software intended for a specific function to help run a logistics business. Following are some examples of apps that do just that.

The Penske Fleet App Penske Truck Leasing recently introduced a free mobile app called Penske Fleet to benefit its full-service truck leasing and contract maintenance customers. The mobile app enables customers to: • View real-time fuel prices in local markets and costs for third-party fueling locations. • Review a detailed 90-day history of vehicle maintenance services. • Easily search and find Penske locations, public scale locations and third-party compressed natural gas fueling stations. • Make one-click roadside assistance calls, and monitor the status of roadside calls. The Penske Fleet app is available for download in the Apple App Store and on Google Play.

The CX North America App CX North America Information Services Inc., a freight collaboration solution provider, recently launched its mobile app for drivers. The CX North America Mobile App provides real-time information exchange and tracking within the context of specific freight shipments, offering drivers, fleet managers, brokers and customers up-to-date information. Beyond

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delivering location, communication and control functionality at the tap of a finger, the app offers a means for enhanced vehicle utilization, better load and capacity management, lower fuel consumption and reduced carbon emissions. Ideal for carriers, drivers, brokers, freight forwarders and third-party logistics providers, benefits of the app include: • Visibility and control to increase vehicle utilization, load management and use of excess capacity. • Real-time job alerts sent directly to drivers, matching vehicle location, capacity and capabilities with businesses in need of freight services. • The ability for drivers to send alerts showing both current status and future availability. • Live tracking links that illustrate job status in real time from acceptance of the job until after proof of delivery (POD). • All shipment details, which consist of full load information, and pick-up/delivery notes and instructions. • CX Messenger for real-time, secure, two-way communications with drivers, controllers and partners, and conversation records to specific jobs, creating a fully auditable trail. • The capture of electronic PODs in real time with stamped dates and times. • Full control over the information visible to others.

The CX North America Mobile App is available in the Apple App Store and on Google Play. It integrates seamlessly with CX North America’s online platform and with most telematics and transportation management systems, and is free for CX North America subscribers and firms doing business with subscribers.

The LoadProof App Kenco Logistics recently teamed up with Smart Gladiator to roll out LoadProof, a new image-capture mobile app designed for logistics operations. The app increases visibility by photo-documenting shipments to improve compliance and reduce manual documentation and costs. Warehouse workers, truck drivers, supervisors, or anyone involved in shipping and receiving can photograph shipments and instantly upload photos to a cloud server with supporting information about the date, time and load details. The images and information can be shared with anyone to help improve visibility, determine responsibility for issues and prove the shipment was in good condition at the point of transfer. The scalable, secure, enterprise-ready application is available for both Android and Apple devices at www.loadproof.com. It has a secure cloud repository to store the photos, which can be easily integrated into various supply chain systems. www.foodlogistics.com

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SECTOR REPORTS OCEAN PORTS & CARRIERS

BY AMY WUNDERLIN

OCEAN CARRIERS AND PORTS

INVEST IN FOOD SAFETY Carriers and ports are taking steps to provide an integrated cold chain to support chilled and frozen cargoes.

 Port Tampa Bay is adding nearly 132,000 square feet of cold storage space in an effort to ensure Central Florida’s future as a hub for refrigerated goods.

ruck, plane, train or ship— no matter how you move it—the safety of food must be ensured. And as the volume of perishable food via ocean carriers continues to increase, both ports and carriers are making serious cold chain investments to do just that. Maersk Line, which boasts the largest containerized fleet with about 20 percent of the global market, announced in 2016 it had ordered 14,800 new refrigerated containers, bringing the average age of its reefers to 7.9 years, over four years younger than the industry average. The shipping line’s new containers replace old containers in part, and coupled with 2015’s order of 30,000, bring the company’s reefer capacity to 270,000.

All the Bells and Whistles Many of the world’s largest ocean carriers are continuously adding refrigerated containers to their fleets, making the transport of fresh, frozen and chilled

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cargo less risky, as consumers demand more. The ability to manage and track locations and temperatures in containers continues to improve, while controlled atmosphere technologies and other innovative equipment are helping to keep cargo fresher and stable on long voyages, and ultimately, perishables safe. Maersk’s standard (20 and 40 foot) refrigerated containers are equipped with many technological advances, which include Super Freezer technology, StarCare and StarFresh, Magnum reefer technology, and Cold Treatment Service. Additionally, at Cool Logistics Global 2015, Maersk announced that all 270,000 refrigerated containers worldwide had been outfitted with Internet of Things (IoT) tracking solutions. What began as a small project has become an operational division within Maersk Line, assuring 24 hour coverage of all refrigerated containers, leading to optimizations in maintenance, compliance, quality and more. But Maersk isn’t the only main

player integrating cold chain solutions into the ocean sector. ORBCOMM Inc., a global provider of Machine-to-Machine (M2M) and IoT solutions, has developed a socalled smart container, which they say “fills the vessel traceability gap and enables seamless management of refrigerated containers across road, rail, water, ports and yards.” TOTE Maritime Puerto Rico, a shipping carrier specializing in moving cargo between the U.S. mainland and Puerto Rico, is the first inline shipping company in North America to utilize ORBCOMM’s GSM-based VesselConnect solution to remotely manage its fleet of smart refrigerated containers at sea. ORBCOMM’s VesselConnect allows TOTE Maritime to receive critical data from its containers, including reefer status, temperature and slot location, while on the vessel or on shore through any Internet-connected device. TOTE Maritime also can adjust reefer set points and conduct pre-trip inspections on-board, reducing manual labor and expediting cargo distribution on land. In addition, the system provides precise temperature monitoring capabilities and records needed for compliance with the FDA’s Food Safety Modernization Act (FSMA) regulatory requirements. “By deploying ORBCOMM’s www.foodlogistics.com

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VesselConnect solution, we have access to comprehensive, real-time information about our refrigerated sea containers that enables us to not only maximize the safety and efficiency of our supply chain operations, but also better serve our customers,” said Jim Wagstaff, vice president of operations, TOTE Maritime Puerto Rico, in a news release. VesselConnect further enhances safety by eliminating the need to manually check the temperature Fuel prices, status and globalization and condition driver shortages of reefer are influencing containers. some cold chain If an alarm operators to shift occurs, it transportation will be aumodes from tomatically truck to displayed on intermodal a console, or from air and an engineer can to ocean. be sent to check and resolve any issues. The system also identifies non-performing equipment, so shorebased staff can be alerted in advance that repairs are needed.

Investment in Infrastructure The safety of perishable goods is also connected to the logistics on land as ocean carriers come into port. Many ports are looking to establish cold storage facilities on sight to attract carriers, while others are ensuring food safety through alternate methods. In October, Port Tampa Bay announced the addition of a 132,000-square-foot cold storage warehouse that will handle refrigerated import and export cargoes. Port Logistics Refrigerated Services will operate the facility, which is scheduled to open this summer. Built on a 13.7-acre site at the www.foodlogistics.com

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port, the facility will accommodate both chilled and frozen products and ensure Central Florida’s future as a hub for importing and exporting refrigerated products. Tampa Bay and the surrounding area is one of the fastest growing regions in the United States in addition to the 78 million tourists visiting Florida each year. Port Tampa Bay also is situated less than 50 miles from Polk County,

where more than 8 million square feet of warehouse and distribution facilities are located. Those facilities are taking advantage of not only the growing population and its demand for fresh food, but also the huge amount of tourists who consume these goods. Rick Sharp, vice president of business development and operations at Port Logistics Refrigerated Services, says it makes more sense—not only

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Global Supply Chain Solutions for the Food and Beverage Industry

GET THE RECOGNITION YOU DESERVE! Each year, Food Logistics recognizes individual and corporate leaders in the food and beverage industry. Plan now to enter your company â&#x20AC;&#x201D; or a cutting-edge client or vendor â&#x20AC;&#x201D; in one of these industry-leading recognition programs:

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O nline nominat ions open appr ox im a te l y e i g h t w e e k s b e fo re t h e d e a d l i n e s l i s t e d a b o v e . Awar d r esult s, inf o r m a t i o n a n d n o m i n a t i o n s p o s t e d o n :

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

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from a cost standpoint, but for the safety of that cargo—for ocean carriers to hit that market through Port Tampa Bay, versus trucking the cargo from miles away. “A lot of the fruits and vegetables coming into the United States are brought into the Northeast and trucked back down south. We feel it’s more economical for that product to move through Tampa,” explains Sharp. “(In the future), container lines will be looking at different routes and trade lanes to hit those huge DCs (distribution centers), instead of trucking hundreds of miles from other ports into those DCs. Coming through Tampa definitely makes economical sense and reduces the risk,” he adds. And Port Tampa Bay’s state-of-the-art cold storage facility will play a large role in attracting those carriers. In addition to the 119,000 square feet of multi-temp cold storage, the facility features a 7,200 square foot climate-controlled fumigation building attached by awnings, so Sharp says “you are not breaking the cold chain by coming out of the cold storage and going into the fumigation room.” Unique to any water front facility, the port’s addition will be completely ammonia-free, meaning the building will use a Freon gas in the engine room and pump a food grade glycol throughout the facility. Removing the use of ammonia in the cold chain plays a crucial role in protecting food, as not only is ammonia very dangerous and harmful to humans if inhaled, but if the facility had a leak and ammonia were to get on the product, it would be destroyed. “With a food grade glycol system, it is not harmful to humans nor is it harmful to the product. From a safety standpoint, preserving the food and protecting it from any type of contamination is another serious thing we took into consideration (when planning the facility),” says Sharp. Another unique feature to the facility is its interoll gravity fed racking system. When you put a pallet in on one end, it gravity feeds itself all the way to the other end, guarantying first in, first out. Additionally, Port Tampa Bay has taken extra precaution with its loading dock, which can be broken up into sections depending on temperature requirements. “Once we get a container backed up to the facility, that product will never break the cold chain,” emphasizes Sharp. “The biggest risk you have (in moving perishable goods) is the transportation, but once that product www.foodlogistics.com

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is put into a container and the temperature is set, the risk is really low unless there is a mechanical failure.” Sharp adds that to prevent such risk, Port Tampa Bay takes its partnerships very seriously. “We definitely take precautions with anything that we handle or control, so we are going to make sure we partner with companies who have newer equipment and technology,” Sharp says, adding, “Food safety is definitely important, and now with areas of the Food Modernization Safety Act that just went into effect in April, there are a lot of eyes on the product to make sure that the cold chain is not broken.” While many ports across the United States are investing in cold storage, at the Port of Los Angeles, there is an emphasis on reefer containers in the yard, says the port’s cargo marketing manager Marcel van Dijk. “The reefers are plugged in as soon as they arrive on the terminal, either from the water or from the land. These reefer containers have individual plug-in stalls and are monitored by terminal labor on a regular basis to make sure there are no changes in temperature in the container,” he adds. The Port of L.A. has a total of 5,337 reefer plugs spread out over eight container terminals. When those reefer containers are released they go to local cold storage in the L.A. basin or directly to the DCs. There is no cold storage on Port of L.A. property. Lee Peterson, communications director at the Port of Long Beach, notes that because they are a landlord port they do not directly handle cargo— refrigerated or By 2020, seaborne not—but they reefer cargo do provide the will reach 120 facilities that million tons, help companies increasing by an move cold caraverage of 2.5 percent goes, including per year, according to the addition of the latest edition of the 6,000 dedicatReefer Shipping Market ed spaces for Review and Forecast reefer boxes. 2016/17, published “We are not by global shipping directly tasked consultancy Drewry. with guaranteeing food safety, neither as a regulator nor as a shipper,” Peterson adds. “It’s really up to those experts to make sure that they are complying with food storage regulations, meeting the needs of customers for food delivery.”

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FOOD (AND MORE) FOR THOUGHT

BY LARA L. SOWINSKI

Applying Supply Chain Best Practices to the

BUDDING CANNABIS INDUSTRY BY LARA L. SOWINSKI Supply chain standards for the cannabis industry are lagging even as its popularity grows.

he popularity of food and beverages infused with cannabis oil or concentrate is skyrocketing as more states throughout the United States legalize medicinal and recreational marijuana. In Colorado alone, sales of marijuana edibles grew 67 percent in February 2017, compared to the same month last year, reports BDS Analytics, a Colorado-based cannabis data firm. However, supply chain best practices for the cannabis industry as a whole are lagging compared to other sectors. Part of the reason is that regulations are in a state of perpetual flux as they try and keep pace with the fast growing industry; while the fragmented nature of the industry, including varying levels of sophistication among supply chain stakeholders, present their own challenges.

Sweetening the Pot: According to Marijuana Business Daily’s “Marijuana Business Factbook 2016,” infused products have yet to surpass flower/dried herb in terms of sales from a national perspective, but they are growing. Some individual retailers already have seen concentrates and edibles sales eclipse flower/dried herb revenue. On average, these products represent about 30 percent of total sales at present, and in some states, they are posting large month-over-month increases. Meanwhile, it remains unseen what portion of total sales these products ultimately will represent. They do, however, play a critical role in the product mix for cannabis retailers, especially in recreational markets, the Factbook reports. Retailers in states that prohibit some or all of these types of products will certainly be at a disadvantage though, as legalization spreads and introduces more consumers to these forms of cannabis.

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Micah Tapman, CEO of Tradiv, acknowledges the complexities of the cannabis supply chain and the particular requirements for edibles. While some edibles are shelf-stable products, others require refrigeration, and similar to pharmaceuticals, there are very specific packaging and labeling requirements, too. Tradiv is an Micah Tapman, CEO of Tradiv, and his team have created online distribua platform that brings together cultivators, manufacturtion platform that ers and dispensaries. brings together cultivators, infused third-party arbiter to safeguard the product manufacturers and distransfer of funds between buyers pensaries. The platform facilitates and sellers, much like how an escrow the sale and purchase of wholesale service is used by homebuyers. cannabis between licensed busiIn the meantime, transportation nesses in states where cannabis and distribution also are more diflaws provide a legal framework ficult for the cannabis supply chain. to operate. Users pay a monthly Delivery costs are pretty signifisubscription fee. cant, says Tapman, as are security The compliance engine is an risks and dealing with payment important feature of Tradiv, notes issues. Unlike more established Tapman. Every order between a supply chains in other sectors, the buyer and seller goes through a ver- cannabis industry is still relatively ification process to assure licensing small and immature. is up to date and the business hasn’t “All of these things combine to engaged in underage sales, for make it pretty tough to move prodexample. States such as Colorado uct from one region to another, or and Washington also have rigorous even within a city or metro area,” seed-to-sale tracking requirements, Tapman says. which monitor information like how In some respects, the cannabis many plants were planted versus supply chain is in the “dark ages” the yield, pesticide use (which is compared to alcohol or pharmacritical for edibles) and plant transceutical supply chains, he admits. fer records. A lot of data is still being collected Tapman sees Tradiv evolving to manually in notebooks or with address other aspects of the cannasimple spreadsheets, and there is bis supply chain. One enhancement little automation or developed inunder consideration is the addition frastructure. But, Tapman is hoping of a pre-sale feature, whereby a to take existing technologies, procultivator earmarks a percentage of cesses and procedures and apply their harvest for pre-sale to lock in a them to the cannabis supply chain, certain price. Another possible role so “we’re not having to reinvent for Tradiv in the future is that of a the wheel.” www.foodlogistics.com

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