Food Logistics June 2018 by Supply+Demand Chain/Food Logistics

HIGH-END PERISHABLES MEET NEW CHALLENGES

PORTS SUPPORT GROWING FOOD IMPORTS/EXPORTS

Food Logistics

THE ENERGY EFFICIENT WAREHOUSE ®

Global Supply Chain Solutions for the Food and Beverage Industry

2018 TOP GREEN PROVIDERS

Issue No. 197 June 2018

THE SUSTAINABLE FOOD SUPPLY CHAIN ENDURES

Agriculture and grocery remain on the front lines of environmental stewardship, despite occasional disparities for why it’s important to “stay green”

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THE 2018 FOOD LOGISTICS

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

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

E OW

THERMAL ENERGY STORAGE

M PA N Y

OY E

LOGISTICS

2018

Since 1991

Global Supply Chain Solutions for the Food and Beverage Industry

T R A N S I T

S O L U T I O N S

TOP 3PL & COLD STORAGE PROVIDERS Honoring the leading 3PL and Cold Storage Providers that support the food and beverage supply chain Nominations Closed Winners announced in August 2018 issue

FL100+ TOP SOFTWARE & TECHNOLOGY PROVIDERS Recognizing top software and technology providers supporting the global food and beverage supply chain Nomination deadline: Sept. 21, 2018 Winners announced in Nov/Dec 2018 issue

™

TOP GREEN PROVIDERS In recognition of companies demonstrating leadership in sustainability in the food and beverage supply chain Nominations Closed Winners announced in June 2018 issue

CHAMPIONS AWARD: ROCK STARS OF THE SUPPLY CHAIN Recognizing individuals whose vision is shaping the future of the global food supply chain Nominations Closed Winners announced in March 2018 issue

Online nominations open approximately eight weeks before the deadlines listed above. Award results, information and nominations posted on:

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

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THE 2018 FOOD LOGISTICS

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

E OW

THERMAL ENERGY STORAGE

M PA N Y

OY E

LOGISTICS

2018

Since 1991

Global Supply Chain Solutions for the Food and Beverage Industry

T R A N S I T

S O L U T I O N S

TOP 3PL & COLD STORAGE PROVIDERS Honoring the leading 3PL and Cold Storage Providers that support the food and beverage supply chain Nominations Closed Winners announced in August 2018 issue

™

TOP GREEN PROVIDERS In recognition of companies demonstrating leadership in sustainability in the food and beverage supply chain Nominations Closed Winners announced in June 2018 issue

CHAMPIONS AWARD: ROCK STARS OF THE SUPPLY CHAIN Recognizing individuals whose vision is shaping the future of the global food supply chain Nominations Closed Winners announced in March 2018 issue

Online nominations open approximately eight weeks before the deadlines listed above. Award results, information and nominations posted on:

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5/31/18 10:33 PM

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ON THE MENU

OCTOBER 2015 ISSUE NO. 171

ON THE MENU

June 2018 ISSUE NO. 197 COLUMNS

COVER STORY

FOR STARTERS

Sustainability Continues to Sprout Across the Food Supply Chain

T aking a Bite Out of Food Waste

Reducing food waste in the United States and the rest of the developed world requires a multi-pronged approach. COOL INSIGHTS

The agricultural and grocery industries, along with the logistics providers that support them, remain on the front lines of environmental stewardship, despite occasional disparities for why it’s important to “stay green.”

THIRD-PARTY & REFRIGERATED LOGISTICS

igh-End H Perishables Remain a Unique Market

Despite the longevity of such high-end perishables as confectionary, logistics requirements remain untraditional with new sets of challenges.

SPECIAL REPORT 24

2018 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 those of their customers.

Corporate social initiatives help to increase access to nutritious foods for communities in need.

SECTOR REPORTS

FOOD (AND MORE) FOR THOUGHT

WAREHOUSING

FEATURE

F rom Farm to Food Desert: Refrigerated Transport Moves Food to Feed the Hungry

T he Energy Efficient Warehouse

I ndustry 4.0 and Food Manufacturing: Is there a Match?

There are numerous solutions to greater energy efficiency in the warehouse, all while ensuring optimal food freshness on its journey through the supply chain.

Food supply chains can benefit from Industry 4.0 technologies and are working on how to apply them.

TRANSPORTATION

T ruckin’ for a Greener Environment

DEPARTMENTS 10

Supply Scan Food on the Move Ad Index

The right transportation provider is essential to an efficient supply chain and brand protection.

SOFTWARE & TECHNOLOGY

WEB EXCLUSIVES

L iving in a Mobile World

From the shop floor to the truck cab, mobile apps are helping to optimize many aspects of the food supply chain. OCEAN PORTS & CARRIERS

S upporting More Food Imports and Exports

It takes a network of ports with a range of capabilities to accommodate growing volumes of U.S. imports and exports of food.

• Visibility and Temperature Tracking Take Cold Chain Shipping Into a New Era foodlogistics.com/21004019

• The 3PLs Role in the Changing Food Retail Landscape foodlogistics.com/21004660

• Food Logistics’ Educational Webinar Series foodlogistics.com/webinars

Published and copyrighted 2018 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.

FOOD LOGISTICS | JUNE 2018

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FOR STARTERS

FROM THE EDITOR’S DESK

TAKING A BITE OUT OF FOOD WASTE F

ood waste is a chronic problem in developed and emerging nations alike. While improper handling and temperature control post-harvest is the main contributor to food waste SOWINSKI in emerging nations, in the United States and other Western nations, most food waste happens at the retail and consumer level. When food is dumped into landfills it creates methane gas, which is released into the atmosphere where it contributes to climate change. It is also absorbed by the planet’s oceans, raising acidity levels and, in turn, impacting marine life and coral reefs. A recent survey by Phononic, a global leader in solid state cooling innovations and a recipient of the EPA’s 2017 Emerging Tech Award, found that Americans were food pre-packaged meals insecure in 2016 and meal delivery services may contribute significantly toward reducing food waste. According to nearly half of the more than 2,000 U.S. adults polled, pre-packaged meals and meal delivery services could provide a solution, people, of which 13 million were children with some caveats. For instance, respondents were concerned about refrigeration of food during delivery and the freshness of food when it arrives. Specifically, 72 percent said they would be more likely to use a food delivery service if the food was guaranteed to be fresh. However, about the same percentage (71 percent) of respondents said they were most worried about how the food is stored while being delivered, and

1 in 8

= 42 million

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65 percent feel these services cause too much packaging waste. Tony Atti, founder and CEO of Phononic, remarks that “emerging retail models like meal and grocery delivery services have the potential to help consumers achieve their goals [of reducing food waste], if retailers are able to overcome challenges such as bulky and even more wasteful packaging needed to maintain temperature control.” Reducing food waste in the United States and the rest of the developed world requires a multipronged approach. Consumers need to evaluate and improve their buying and consumption habits. Grocers, restaurants and other retailers need to get better in how they procure, display, manage inventory and dispose of perishable foods. The statistics are worth repeating: 1 in 8 Americans were food insecure in 2016. This equates to 42 million people, 13 million of which were children, and the numbers were essentially unchanged from 2015. Food insecurity is defined by the USDA as a lack of consistent access to enough food for an active, healthy life. Each June, Food Logistics profiles its Top Green Providers in the magazine and online. Sustainability in the global food supply chain has advanced tremendously over the years, and so too have the types of innovations and diversity of companies on our list. We congratulate the winners for their contributions. Our industry’s future depends on keeping up the momentum. Enjoy the read.

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

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 John R. Yuva jyuva@ACBusinessMedia.com Assistant Editor Amy Wunderlin awunderlin@ACBusinessMedia.com Web & Copy Editor Mackenna Moralez mmoralez@ACBusinessMedia.com Contributing Editor Barry Hochfelder Senior Production Manager Cindy Rusch crusch@ACBusinessMedia.com Creative Director Kirsten Wiskus Audience Development Director Wendy Chady Audience Development Manager Angela Franks 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: (847)-291-4816 circ.FoodLogistics@omeda.com LIST RENTAL Jeff Moriarty, InfoGroup (518) 339-4511 jeff.moriarty@infogroup.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 CFO JoAnn Breuchel Digital Operations Manager Nick Raether Digital Sales Manager Monique Terrazas Published and copyrighted 2018 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.

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SUPPLY SCAN

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

SHELL INVESTS IN STARTUP TARGETING GROCERY, COLD STORAGE

Shell is investing $7.6 million in energy storage startup Axiom Energy to expand its service to grocery stores and cold-storage facilities. Axiom’s refrigeration battery freezes tanks of salt water at night when electricity costs are low and then provides cooling services during the day when power prices are higher. The company says that it can reduce energy demand by as much as 40 percent. “Refrigeration systems, which account for more than 9 percent of commercial energy consumption, must operate around the clock to keep the food cold. As electricity grids and prices become increasingly unstable, inflexible refrigerated facilities find themselves in a difficult position,” says Amrit Robbins, CEO and co-founder of Axiom Exergy. “Utilities manage intermittent renewable generation and spiky electric vehicle charging loads through price signals to customers, and grocery stores are currently unable to respond to these price signals in a meaningful way. The Refrigeration Battery is the ideal solution to enable energy flexibility for the cold chain and it simultaneously helps enable more renewables on the grid.”

WOLVERINE PACKING, TIPPMANN INNOVATION BREAK GROUND ON NEW MEAT PROCESSING FACILITY

Wolverine Packing and Tippmann Innovation (Ti) broke ground on its fifth meat processing plant in Detroit’s Eastern Market. Development plans include rehabilitation for Forest Park, which currently lies along the east side of the property. For Wolverine, preserving the park for residents and employees is a priority. Ti is also excited to bring vibrant life to Detroit’s east side as the project creates new jobs and a revitalized park for residents. “Over the last two and a half years we’ve seen the project grow from a small facility and processing project into something much greater. At each phase of construction planning, Wolverine customers’ needs continued to evolve. Because of our great working relationship with the management team at Wolverine, we were able to seamlessly make the adjustments necessary to deliver a fantastic facility,” says Ti’s Rob Adams.

INFRATAB ADDS FOUR IOT SENSOR PATENTS LOGISTICS PLUS CELEBRATES RECORD GROWTH

Logistics Plus Inc reports that its final 2017 U.S. sales were 1,000 times greater than the amount it reported in its first year of business. The company was first founded in 1996, serving a single customer on a $120,000 purchase order. Last year, it reached a record-setting U.S. revenue of $127.3 million. “Logistics Plus has enjoyed 20 years of year-over-year sales growth and 21 consecutive years of profitability,” says Jim Berlin, founder and CEO of Logistics Plus. “I am so proud of what our diverse, growing team has accomplished the past two decades, and how we’ve continued to change for the future. Logistics is a trillion-dollar industry. Everything around us moves; but it takes talented, caring people and great technology to adequately address the stringent requirements of today’s modern supply chains. Thankfully we have both.”

Infratab has added U.S. and European wireless Internet of Things (IoT) sensor patents to its worldwide intellectual property portfolio of radio frequency sensors, software, analytics and cloud solutions. The new patents cover radio frequency IoT tag architecture; in-tag sensor operating environment application software; condition metrics for real-time assessment; and actions related to the condition of an object and the methods for setting up, calculating, reporting, storing, analyzing and using sensor data by trading partners in the supply chain and by those concerned with quantifying and monetizing conditions. Infratab’s Freshtime radio frequency sensor tags, middleware, and cloud software and analytics provide monitoring and tracking of perishables by trading partners who make, store, transport, sell, service and use perishables. The radio frequency adds the what, where and when of tracking perishables.

Photo Credit: Infratab

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6/4/18 9:12 AM

PREMIUM SERVICE IS OUR PROMISE.

WE’RE COMMITTED TO EXCEEDING YOUR EXPECTATIONS As the leading national LTL carrier, Old Dominion is always working to make your shipping easier. It’s something we take seriously, and it shows in our #1 rankings for value, satisfaction, responsiveness and overall performance.* Our more than 20,000 employees working in 229 OD service centers take pride in helping you ship confidently from coast to coast and everywhere in between.

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. ©2018 Old Dominion Freight Line, Inc., Thomasville, N.C. All rights reserved. Major League Baseball trademarks and copyrights are used with the permission of Major League Baseball Properties. Visit MLB.com.

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*Source: 2017 Mastio & Co. National LTL Carrier Report

6/4/18 9:12 AM

FOOD ON THE MOVE

LOGISTICS TRENDS IN OUR INDUSTRY

T.S. LINES BOOSTS REFRIGERATED CAPACITY BY 24 PERCENT

T.S. Lines Ltd purchased 1,000 Carrier Transicold PrimeLine container refrigeration units as part of its expansion to serve intra-Asia trade. The shipping line’s refrigerated capacity will increase by 24 percent, enabling T.S. Lines to accommodate growth of perishable and other refrigerated trade in lanes it serves. High cooling capacity and rapid pulldown are important to T.S. Lines for quickly cooling sensitive cargoes. The PrimeLine unit is equipped with a digital scroll compressor that is suited to meet these demands.

WALMART FOLDS UBER, LYFT GROCERY DELIVERY PARTNERSHIP

Walmart has ended its online grocery delivery partnership with Uber and Lyft, potentially creating a setback for the retailer’s goals to challenge Amazon. The end of the partnership undercuts a vision that Uber and Lyft had laid out: a service that can efficiently deliver anything on-demand with the touch of a smartphone app. In March, Walmart said Uber would be a partner in its plans to deliver groceries to 40 percent of the country, Reuters reports. Now, Walmart will utilize different services to deliver to the four areas that Uber once covered. Walmart representatives have said that ending the partnership with the ride-hail companies will not impact its plan to scale grocery delivery.

REEFERTEK USA NOW OFFERING REFRIGERATED TRUCK BODY CONVERSION

ReeferTek USA has announced a new product line of refrigerated truck bodies, utilitizing a proprietary process to convert cargo vans and dry truck bodies into precision refrigerated vehicles. “We have been inundated with requests for larger refrigerated vehicles. Businesses are looking for one-stop shopping for their refrigerated fleet, and now ReeferTek can convert and deliver any type of refrigerated vehicle in the U.S. market,” says Michael Leibman, president of ReeferTek USA. It typically takes three to four months to convert a dry truck body to a refrigerated truck, but ReeferTek has developed a streamlined production process that enables an entire truck body conversion in a matter of days.

DAT SOLUTIONS’ MONTHLY FREIGHT REPORT

Loads & Capacity: The Pressure is Rising By Mark Montague Mark Montague is senior industry pricing analyst for DAT Solutions, which operates the DAT network of load boards and RateView rate-analysis tool. He has applied his expertise to logistics, rates and routing for more than 30 years. Montague is based in Portland, Oregon.

May and June tend to be tipping points for truckload freight, and signs are tilting upward to a busy summer. April load posting volume for refrigerated freight was up 41 percent year over year, the highest level of load availability for any April ever recorded on the DAT Freight Index. The national average spot rate for refrigerated freight was $2.42 per mile, equal to the average rate for contract freight. Prices continued to rise in May as the weather improved in the Northeast and Midwest, and harvests in the Southeast added pressure on truck capacity. Refrigerated truckload volume surged out of Florida throughout April and into May, and reefer rates on several outbound lanes soared above $3 per mile. It’s hard to know where rates will go, but the load-to-truck ratio can provide a clue. The load-to-truck ratio describes the balance between freight availability and

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truckload capacity on the spot market. In mid-May, the national average reefer load-to-truck ratio was 8.5, down from 9.1 in April, but poised to increase in June— normal for the season. Typically, reefer demand is pretty much “in balance” when ratios are around 5.5-6.0. Changes in the ratio often signal a

change in freight rates. Think of the loadto-truck ratio as pressure gauge—more like a barometer than a thermometer—that helps you to compare different markets or time periods. The trend is more important than the actual number. When the load-to-truck ratio goes up, rates usually follow.

www.foodlogistics.com

5/31/18 9:49 PM

150 MILLION HUNGRY CUSTOMERS WITHIN A DAY’S DRIVE North Carolina boasts two deep-water seaports, four international airports, the country’s largest consolidated rail system and 90,000 miles of open road. This is where an appetite for growth meets an eye for expansion.

E C O N O M I C D E V E L O P M E N T PA R T N E R S H I P O F N O R T H C A R O L I N A

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EDPNC .C O M

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COOL INSIGHTS

BY DANE TAIVAL

FROM FARM TO FOOD DESERT:

REFRIGERATED TRANSPORT MOVES FOOD TO FEED THE HUNGRY

Corporate social initiatives help to increase access to nutritious foods for communities in need.

W Dane Taival is the vice president and general manager for the Transport Solutions North America business at Thermo King. Taival leads more than 1,600 employees and is responsible for setting and executing the business strategy and ensuring delivery of its operational and financial commitments.

hile reefers have been fundamental for transforming commercial shipping of perishables around the world, refrigerated transport is poised to disrupt barriers to delivering fresh nutritional food to the nation’s most vulnerable—the nearly 41 million people in the United States who struggle with hunger, according to Feeding America. The number of families facing food instability is staggering, coupled with the reality that nearly $220 billion worth of food is thrown away in the United States each year. Thermo King, a manufacturer of transport temperature control solutions for a variety of mobile applications and a brand of Ingersoll Rand, recently introduced a breakthrough social initiative, We Move Food, centered on a mission to make it easier and more affordable for Feeding America food banks to safely transport fresh food to families who need

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it most. By providing funding for mobile food pantries and special pricing on refrigeration products and services, food banks will be able to access food deserts—areas where nutritional options such as fresh fruits, vegetables and dairy products are not easily available— to serve some of the hungriest cities in the United States. Historically, the cost to purchase, run and maintain a refrigerated trailer has been an insurmountable barrier for nonprofit food banks in their quest to recover perishable foods from grocers, retailers and restaurants. Transport refrigeration assistance can go a long way in food recovery to give more families access to fresh and nutritious options. However, access to transport refrigeration solutions is only one factor impacting food instability and food waste in the United States. Food banks around the country rely on truck drivers— many of whom volunteer their

time and talents. Drivers play a pivotal role in keeping perishable options fresh and safe for consumption because they know how to properly load and run a refrigeration unit to recognize alarm codes. These professionals truly are in the “driver’s seat” when it comes to providing more people greater access to food that has the potential to build healthier families and communities. Unfortunately, today more and more families rely on food banks or similar services for assistance, whether it’s temporary or a longterm strategy for food shortage. Companies that have a commitment to sustainability share a responsibility to do more for the most vulnerable among us. Whether it’s collecting food from a local farm or reclaiming food from restaurants, transport refrigeration plays a vital role in helping food banks obtain food and making sure it arrives safely to America’s tables. www.foodlogistics.com

5/31/18 3:11 PM

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5/31/18 3:11 PM

COVER STORY

BY LARA L. SOWINSKI

SUSTAINABILITY CONTINUES TO SPROUT ACROSS THE FOOD SUPPLY CHAIN The agricultural and grocery industries, along with the logistics providers that support them, remain on the front lines of environmental stewardship, despite occasional disparities for why it’s important to “stay green.”

usinesses exist to generate a profit. At the same time, many businesses are serious about corporate social responsibility and sustainability and have successfully incorporated these values into their culture and operations. In turn, these efforts positively impact the bottom line, which makes for a win-win situation. Sustainability in the food supply chain is a good example. Farmers and food producers know full well the symbiotic relationship between environmental stewardship and food production. Clean water, nutrient-rich soil and mitigating the effects of climate change are fundamental to their business survival. The grocery industry and its logistics providers, meanwhile, have historically operated on thin margins, which provides an obvious

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incentive for these collective stakeholders to continually look for opportunities to operate more efficiently, more productively, and by extension, more sustainably. William Salter, CEO and president of Paragon Software Systems, a provider of vehicle routing and scheduling optimization solutions, acknowledges the occasional paradox with regards to sustainability in the transportation sector. “A lot of the spinoff from using routing and scheduling, and the products around them, do fit quite nicely into helping companies to be greener, whether that’s their original intention or not,” he says. Salter has seen sustainability—and the results it can yield— evolve over the years, in the industry at large and with Paragon’s own customers.

In order to maximize the results from routing and scheduling solutions, “it starts with making sure that you’ve got the right data set up in the system in the first place, so that you’re planning routes that are realistic and achievable,” he says. “It requires discipline to set up the system properly and take into account variables such as the road network, how long it takes to make a delivery at each drop point and other critical pieces of information.” Many companies take additional steps, like tracking the routes as they’re being executed and making sure drivers are closely adhering to the planned routes. “You can also set up a system to monitor driver behavior to find out if they are braking too hard, speeding or leaving the vehicle idling for too long,” Salter says, all of which www.foodlogistics.com

5/31/18 3:18 PM

FFE, THE CO-OPERATIVE SEE GREEN WITH PARAGON’S SOLUTIONS when optimized will contribute to a more efficient and sustainable operation. Although sustainability alone is not driving interest in routing and scheduling solutions, admits Salter, he emphasizes that companies are focused on taking costs out of their distribution operation. “They want to meet ever increasing demands for higher levels of customer service, without adding a huge amount of additional cost to the bottom line,” he explains. Meanwhile, Salter is seeing more companies evaluate their vehicle fleets and think about  Vehicle routing and scheduling software can provide unexpected sustainability benefits.

After implementing Paragon’s routing and scheduling solution, Frozen Food Express (FFE) reduced its fleet size from approximately 750 to 700 vehicles, according to William Salter, CEO and president of Paragon Software Systems. In addition to reducing the size of the pickup and delivery truck fleet, FFE experienced a 12 percent improvement in on-time delivery in the six-monthperiod after implementation. By centralizing the planning function as well, FFE was able to free up local staff to focus on operating the service centers instead of being under pressure to find time to manually plan deliveries. “Knowing where trucks are and who is available to deliver those loads has greatly added to the efficiency of our transport operations,” states FFE. In the UK, The Co-Operative Food is cutting delivery miles and carbon emissions after deploying Paragon’s dynamic transportation planning solution to its logistics service operation. The Co-Operative services nearly 4,000 stores throughout the UK, making about 34,000 deliveries on 9,500 routes using 1,300 trucks, every week. As The Co-Operative expanded the number of stores and opened up new, larger distribution centers (DCs), it became clear they needed a sophisticated software tool to maximize the opportunities for efficiency gains. Their fixed routes generally provide efficient schedules, but volume fluctuations

made it difficult to meet expected delivery times while maximizing efficiencies. Using Paragon route planning software with Paragon Resource Manager enabled The Co-Operative to meet the challenge. Every night, the planners update driver availability within Paragon Resource Manager. This provides the planning software with all available drivers, their start times, the trucks they can drive and their maximum shift length. Then, they enter the actual store order volumes and apply the store delivery windows to each. Next, the system creates the most efficient delivery schedule that meets the needs of the stores, while ensuring the driver and fleet resources are available to deliver the plan. The order information also updates the warehouse management system to enable the warehouses to pick the orders for the new schedule. The switch to a dynamic resource-managed planning approach has already delivered a 5 percent reduction in delivery miles at a pilot DC, and The Co-Operative is expecting a CO2 savings of 5,000 tons a year across its entire distribution network comprising over 1,300 trucks and 4,000 nationwide stores. “Using Paragon routing and scheduling software with Resource Manager for dynamic planning gives our depot planners a great tool to produce efficient, compliant delivery schedules that help us provide a better service for our stores,” says Graham Leggett, senior transport planner, food operations—logistics service, at The Co-Operative.

Photo Credit: Paragon

www.foodlogistics.com

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JUNE 2018 | FOOD LOGISTICS

5/31/18 3:18 PM

COVER STORY

The spinoff from using routing and scheduling fits nicely into helping companies be greener,

whether that’s their original intention or not.” William Salter, CEO and president, Paragon Software Systems

 Pargon’s routing and scheduling solution helped FFE reduce its fleet size from 750 to 700.

continued

where alternative fuel vehicles like electric hybrid or hydrogen-powered vehicles might fit in their operations. In some cases, legislation and stricter emissions regulations are the main driver behind companies’ efforts to invest in more fuel-efficient fleets. Salter mentions London’s Ultra-Low Emission Zone (ULEZ), which is scheduled to start operating in April 2019, as an example. The ULEZ will tighten restrictions on cars, trucks and motorbikes in a bid to address London’s lethal air pollution and deter the use of older, high-polluting vehicles. Other developments are also pushing companies to adopt routing and scheduling solutions—namely, e-commerce and home delivery. The proliferation of direct-to-consumer deliveries means more vehicles and more congestion on the roads. “Vehicle routing, scheduling and planning systems are ideal for working out the impact [of e-commerce] and for deciding what kind of trucks are best to handle the different parts of that type of distribution,” says Salter. Indeed, the impact of e-commerce and home delivery are forcing city planners, logistics companies and retailers to consider options like staging posts at strategic locations in and around cities to facilitate customer pickups at centralized spots. Salter says companies may soon find themselves cooperating more and more with each other to accommodate the growth in e-commerce and the challenges associated with delivery of goods to the end consumer.

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THE CHEP CARBONNEUTRAL POOLED PLATFORM

SETS NEW STANDARD FOR SUSTAINABILITY

By Amy Wunderlin Setting a new standard for sustainability, CHEP, a Brambles company, recently released the first-ever carbon neutral pooled (shared and reused) pallet platform in North America. The label of carbon neutral is based on the CarbonNeutral Protocol trademarked by the Natural Capital Partners, a provider of solutions for carbon emissions measurement and reductions, renewable energy and water stewardship. The sustainability program is a global standard to demonstrate that businesses have measured and reduced their CO2 emissions to net zero for their company, products, operations or services in accordance with The CarbonNeutral Protocol. “This [CHEP’s] CarbonNeutral certified platform demonstrates the action businesses can take to reduce their carbon footprint and have a positive impact on the environment,” says Mark LaCroix, executive vice president of the Americas, Natural Capital Partners. “With the carbon neutral half pallet, CHEP helps customers embed sustainability throughout their supply chain.” As a circular and reusable solution, CHEP’s 40x42-inch carbon neutral half pallets incorporate sustainability into everyday business practices. “When we introduced our pooled half pallet in 2014, it was an instant marketplace success, thanks to its ability to cut labor costs and increase sales,” says Vishal Patell, vice president of marketing and customer solutions, CHEP North America. “Now, as a carbon neutral platform, the half pallet delivers as a true circular supply chain solution, helping to protect our planet without compromising profit.” As part of the CarbonNeutral Protocol, CHEP calculates the carbon footprint of the platform, and then purchases carbon offset credits from Natural Capital Partners. The credits benefit the Mississippi Alluvial Valley Reforestation Project, which aims to reforest 1 million acres of the Lower Mississippi Alluvial Valley, an area once covered by 22 million acres of dense forest. In addition, the project will reduce an estimated 200 metric tons of CO2 equivalent per acre, create revenue and jobs, and improve water quality and biodiversity. To date, CHEP has offset 926 metric tons (2.1 million pounds) of carbon emissions, equivalent to planting a variety of approximately 3,000 hardwood trees. CHEP’s carbon neutral half pallet won the Environmental Initiative of the Year Award at Industrial Pack 2018 in March.

www.foodlogistics.com

5/31/18 3:18 PM

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5/31/18 3:18 PM

3PL/REFRIGERATED LOGISTICS

BY JOHN R. YUVA

HIGH-END PERISHABLES REMAIN A UNIQUE MARKET Despite the longevity of such high-end perishables as confectionary, logistics requirements remain untraditional with new sets of challenges.

hen you think highend perishables, a few products come to mind: chocolate, seafood and organic offerings. And with a high price tag comes special handling in many instances. Quality means everything. Any blemish or taste deterioration can affect sales and ultimately brand reputation. It’s essential to ensure a logistics strategy that accommodates all the requirements from shipment to store. This is not always an easy task in today’s transportation market where pricing, volume and space can impact margins. Customers have their own expectations at the retail level but are unaware of the challenges in making those products available for sale.

Evolving Trends in High-End Challenges have only expanded as greater demand and shorter delivery requirements for high-end perishables emerge. What’s driving this? E-commerce. Like many other product categories, e-commerce

FOOD LOGISTICS | JUNE 2018

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is having its impact on high-end economy, whether it’s trucking or perishables as well. Temperawarehousing, it poses a challenge.” ture-controlled items such as Organic. How much has the orchocolates, produce and meat are ganic food industry grown? Accordnow shipped directly to homes with ing to the Organic Trade Associacold gel packs to maintain proper tion’s 2018 Organic Industry Survey, temperatures. “organic sales in the U.S. totaled a Seasonal items ordered via new record of $49.4 billion in 2017, e-commerce are more common and up 6.4 percent from the previous special handling is often year and reflecting new required, especially for sales of nearly $3.5 billion.” Organic luxury food products. Lilja says today’s insales in the U.S. “Within a six- or creased consumer demand totaled a new eight-week period for organic foods is equally record $49.4 throughout the fall, our driving up the demand for billion in organic logistics, which business encounters 2017, up 6.4 carries a price premium and a significant seasonal percent from the has special requirements buildup—and it’s nearly previous year.” for storage and distribution. always high-end because Organic Trade of the associated logistics Weber is certified as an Association’s 2018 costs,” says Bob Lilja, Organic Industry Survey organic food warehouse for chief operating officer for several brands. Weber Logistics. “Clients “There are specific may plan for a 10,000-50,000 requirements in place for the storage square-foot space to suddenly have of organic foods to ensure no possithe ability to process thousands ble contamination from non-organic of e-commerce shipments per day products,” he says. “Even equipment with special handling and insulation. that handles non-organic products at However, because the cold chain is Weber is not used for organics due near capacity in the current strong to potential cross-contamination.” www.foodlogistics.com

5/31/18 3:26 PM

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3PL

continued

It’s unlikely to find XYZ fresh seafood provider with the ability (or desire) to navigate TSA

regulations and service airlines.” Bob Lilja, chief operating officer, Weber Logistics

Airlines. While an unlikely source of growth in high-end perishable food products, airlines rely on this category as a competitive advantage. Lilja says to be part of the commissary supply chain for airlines, you’re required to have multi-temperature storage and distribution. Deliveries are made to each airport for specific airline clients, requiring a full understanding of airport security to quickly deliver to the point of consumption (the airline door). “Weber provides lobster shipments, for example, directly into airlines. This can’t be done through a normal fresh seafood supply chain because of the nature of airline security,” explains Lilja. “It’s unlikely to find XYZ fresh seafood provider with the ability (or desire) to navigate TSA regulations and service airlines.” Fresh, healthy foods. Over the last few years, there’s been more emphasis on what we eat and the ingredients used—avoid trans fat, buy organic and eat fresh. Lilja says restaurants and other catering businesses are rapidly moving away from thawing, cooking and serving frozen ingredients, and instead, placing a greater focus on fresh food. “As a result, food businesses (and their logistics partners) need to replenish inventory far more frequently and make sure that freshness is maintained throughout the delivery cycle,” says Lilja. “You also have very educated and hyper-aware consumers who pay closer attention to food supply chains due to food-contamination scandals.” Batch size. The trend in highend, specialty logistics is a direct reflection of consumer purchasing

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habits moving toward “fresher” or natural products with a shorter shelf life and packaged in smaller batches, says Erik Holck, director, business development for Port Jersey Logistics Inc. Often, such products have more unique temperature requirements. “Consumers themselves are migrating away from purchasing product from large manufacturers, much like we’ve seen in the beer industry with the rise of craft breweries, which has led to smaller batch sizes,” says Holck. “The more unique temperature requirements come from more strict quality standards. And many products that were once unique to the market are now being routed through mainstream distribution.” What effect does this have on maintaining quality, such as product appearance and taste? Holck says for logistics providers, a large part of guaranteeing products like chocolate maintain their taste and appearance is the vetting process for other customers to whom the company provides logistics services. Port Jersey Logistics is very restrictive on the types of products it handles to assure that it’s not bringing in items that emit a strong odor, which confectionary products can easily absorb, or store product that could be a potential contaminant. “It comes down to having a thorough understanding of our customers’ quality standards to make sure we’re operating within their standards, and at Port Jersey Logistics, we understand the impacts that variation of appearance and taste can have on our customers’ business,” Holck adds. Multi-temp distribution cycle. For high-end perishables, temperature control is paramount throughout the distribution cycle.

Confectionaries require unique temp controls (between 55 and 65 degrees Fahrenheit) that are warmer than frozen foods but cooler than an ambient environment. Weber’s Lilja says strict ranges must be adhered to because higher than range you risk melting, but lower than range could cause “blooming,” changing the color and taste of the product. To prevent this, Weber uses bulkheads and sometimes ships four different temp ranges in a single trailer—frozen, chilled, air-conditioned and ambient. “In the warehouse, temperatures are logged every six minutes, with sensors distributed across the warehouse at varying heights due to temperature variations,” says Lilja. “If those temperatures are outside specifications, immediate notice is sent to the on-site operations management. Temps are logged into a system that can send a customer report on temperature readings, providing complete transparency.”

Confectionary Complexity In the confectionary industry, many of the trends above mimic those of regular goods. Holck says orders are increasingly complex with SKU proliferation, shorter order cycles and retailers expecting just-in-time inventory delivered on specific days. This is resulting in increased orders on a regular basis, with more items on an order, containing fewer cases. This creates a couple challenges—greater shipping costs per case as well as complexity that comes with temperature-controlled shipping to deliver on specified dates. “Many shippers in the transportation industry rely on what’s known as pool distribution programs based on smaller order sizes to move product in the most economical means,” Holck says. “However, with delivery dates becoming more critical due to less inventory being held by the retailer and the chargebacks associated with missing delivery dates, changes are likely, including moving www.foodlogistics.com

5/31/18 3:26 PM

www.foodlogistics.com

FLOG0618_18-23_3PL.indd 21

Photo courtesy of Port Jersey Logistics Inc.

away from a pool distribution model to a more direct delivery model, which Port Jersey Logistics offers to meet the strict delivery dates.” Lilja is seeing similar trends and says confectioners are facing shipping challenges due to major big-box retailers demanding ontime delivery shipments. Confectioners shipping into major big-box retailers are scrambling to support the distribution costs per truckload throughout the country. “Operations like ours consolidate to effectively deliver truckloads of four or five different confectionary and other food products into big-box and grocery distribution centers (DCs) to meet required delivery dates,” says Lilja. “In the past, because confectionary requires a 60-degree Fahrenheit environment—which the traditional refrigerated transportation network in the U.S. lacks capacity—product was consolidated but delivered with an open delivery window to support lower costs. That method is no longer viable with today’s on-time delivery requirements and associated fines.” When shipping confectionary products, the lead-time requirements from retailers remain the same as other food goods. However, Holck explains that because cargo must reside in the 55- to 60-degree Fahrenheit range, product may have to be delivered to different locations than other items within the load. “If products are moving in full loads, there is less of a concern than if you’re shipping LTL/LCL cargo. However, refrigerated trailer and container availability is becoming more limited,” says Holck. “On the LTL/LCL side, this creates a challenge because, many times, the product is delivering to a different distribution center than the dry product. Thus, there’s less ability to marry freight that’s moving through those specific locations and less chance to move the freight on a routine basis.” He adds that on the domestic transportation side, their carrier base that serves the tempera-

ture-controlled LTL market is extremely limited, making the transit time, service reliability and price point challenging.

Traceability Evolves With such delivery challenges, the issue of traceability is a greater concern for many high-end specialty products, particularly those with smaller batches or lots, Holck says. “When dealing with smaller or mixed batches, true traceability requires that product is segregated upon receipt of goods to ensure that each batch is tracked separately. However, this comes with an additional handling cost that most companies aren’t willing to bear,” he says. Holck adds that on the transportation side, with smaller orders there comes a different price point. “Shipping a full truckload of product results in the lowest transportation cost per case, shipping a full pallet of product leads to significantly higher transportation costs per case and shipping a single case has the highest cost per case,” says Holck. “Often, the transportation cost for that single case is worth more than the goods themselves.” At Port Jersey Logistics, employees are trained on their role and responsibilities to ensure Food Safety Modernization Act (FSMA) compliance, even for product not governed by FSMA. Holck says transparency requirements are nothing new to the company. Customers expect full transparency, self-reporting and

real-time information to monitor their products. “On the transportation side, long ago customers requested constant temperature monitoring and GPS location updates for their goods,” he says. “Now we’re seeing that transition to the warehouse side as well. With the evolution of blockchain and its adoption within the logistics industry, it’s only a matter of time before transparency-related items become a requirement for all providers to ensure food safety guidelines are met.” Lilja says to maintain FSMA compliance while sustaining velocity and efficiency, providers of high-end perishables should outsource as many functions as possible to the lowest number of dependable, compliant shippers. “If you’re choosing a different provider for every function, not only are you adding FSMA complexities by requiring compliance tracking of all load vendors, you’re also generating more cost and slowing the shipping process. “The higher demands of specialty logistics and fulfillment expectations is resulting in a trend toward regional distribution,” Lilja adds. “Whether it’s regional distribution by positioning inventory in new locations or transitioning from an LTL distribution model to a pool distribution mode, all are things that can provide high levels of service with good economics in a streamlined supply chain.”

 High end specialty cargo with temperature requirements move in containers like those shown above.

The higher demands of specialty logistics and fulfillment expectations is

resulting in a trend

toward regional distribution.” Bob Lilja, chief operating officer, Weber Logistics

JUNE 2018 | FOOD LOGISTICS

5/31/18 3:26 PM

DDC-EMC-ADV-0032-0617. Specifications are subject to change without notice. Detroit Diesel Corporation is registered to ISO 9001:2008. Copyright © 2018 Detroit Diesel Corporation. All rights reserved. Detroit™ is a brand of Detroit Diesel Corporation, a subsidiary of Daimler Trucks North America LLC, a Daimler company.

FLOG0618_18-23_3PL.indd 22

5/31/18 3:26 PM

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5/31/18 3:26 PM

2018 TOP GREEN PROVIDERS

FOOD LOGISTICS’

TOP GREEN PROVIDERS 2018 T

he green initiative continues to be a driving force for companies everywhere. In the food and beverage industry, being an active player in the sustainability game is crucial when it comes to reducing the food chain’s carbon footprint and preserving the thin profit margins. Food Logistics’ annual Top Green Providers list showcases companies that have found new ways to promote sustainability throughout their operations and for their customers. This year’s list consists of technology companies, 3PLs, cold storage providers, transportation providers and many others who have stepped up to the plate to become leaders in supporting a more sustainable global food supply chain.

Alliance Shippers Inc.

www.alliance.com Alliance Shippers’ commitment to reducing negative impacts on the environment and its own carbon footprint is evident through the addition of new EverGreen refrigeration units to its fleet. The refrigerated trailers are equipped with two-way cellular tracking devices that draw power from the battery source within the refrigeration units, allowing Alliance to always have a GPS location and the ability to turn the refrigeration unit on and off at any time. The company has also invested in solar panels to charge batteries in its trailers, lower fuel consumption and reduce emissions to benefit customers and the plan-

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et. By building its fleet of refrigerated trailers with the most current technology, Alliance Shippers is able to move refrigerated goods through the nation’s railroad system, reducing CO2 output by 67 percent.

Americold

www.americold.com Americold has been adding and expanding facilities so that it can offer more capacity to customers. By consolidating temp-controlled storage requirements in larger facilities, efficient power resource utilization is maximized so customers can claim their sustainability efforts as part of their supply chain. Since 2010, Americold has saved more than 435 million kWh of electricity.

Cass Information Systems Inc.

www.cassinfo.com Cass Information Systems provides solutions that utilize technology to obtain cost and processing efficiencies for its customers. Its solutions help customers reach

their supply chain goals by accelerating the amount of electronic interchange between customers, freight carriers and Cass. This results in reducing paper transactions such as shipping documents, billing, payment transactions and information delivery. Cass is able to accomplish this without sacrificing controls and accuracy. The company uses centralized business intelligence to manage the supply chain, which provides further positive environmental impact for its customers.

DSC Logistics

www.dsclogistics.com DSC Logistics has made a commitment to sustainability and the goals of its customers to have a positive impact on the planet. The company aims to eliminate waste and cost in the supply chain for all customers. In addition, DSC has adopted practices that promote the responsible use of resources throughout the entire company and align its efforts with sustainwww.foodlogistics.com

6/5/18 10:51 AM

ability initiatives. The company has several sustainability programs that include an emissions reduction initiative, network redesign and collaborative shipping and transportation consolidation. Through multi-customer and single customer consolidation services, DSC has reached a 12 percent reduction in carbon emissions for 2017.

Elite Transit Solutions

www.elitetransit.com Elite Transit Solutions is modernizing the food industry by addressing environmental impacts it says can no longer be ignored. To achieve this, the company looked toward automation, automating

80 percent of tasks related to day-to-day freight logistics. This technology increases the speed and effectiveness of communications throughout all parts of the supply chain, minimizing human errors and creating sought after efficiencies. On average, driver wait time was reduced from 45 minutes to only 7 minutes. Minimizing this time has created an environmental impact for the company by lowering fossil fuel consumption and cutting down on harmful CO2 emissions.

ESI Design Services

www.esigroupusa.com ESI Group, comprised of ESI Design Services and ESI Constructors is a proven leader in sustainability, with more than 25 years of experience designing and constructing temperature-controlled food facilities nationwide. ESI has achieved LEED certification for cold-storage facilities and often pushes the boundaries set by the Green Building Certification Institute through

credit interpretation rulings and pilot credits. ESI ensures it’s meeting client goals by offering a systematic way of validating a building’s systems operation. ESI works with operations and maintenance staff to establish a benchmark for energy use and occupant comfort and actively pursues new technology and techniques that aid in a cost efficient and sustainable building. With its design and construction services, ESI helps clients engineer facilities that recognize the importance of the environment and the project’s functional and economic demands. ESI’s methods go beyond best construction practices and include analysis and facilitation of operation and maintenance procedures. ESI’s construction service allows customers a guaranteed maximum price early on in project development that combines responsibility for design, budgeting and construction into one firm, helping the company build a reputation on capability and trust factors that has clients calling back to them over the years.

Sustainability Promise.

At Alliance Shippers Inc., we continuously work towards providing cleaner and more energy-efficient transportation services and solutions. Our 2018 Top Green Provider award underscores our steadfast commitment to a greener environment. To find out more: www.alliance.com

www.foodlogistics.com

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2017 EXCELLENCE AWARD WINNER

JUNE 2018 | FOOD LOGISTICS

6/5/18 10:51 AM

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 X

AFN

www.loadafn.com X

Agrisource Data LLC

www.agrisourcedata.com X

Ai2

www.ai2.com X

Alliance Shippers Inc.

www.alliance.com X X X X X X X X X

Americold

www.americold.com X X X X Temperature-controlled warehouses

ArrowStream

www.arrowstream.com X X

Arviem AG

www.arviem.com X

Blue Ridge

www.blueridgeglobal.com X

BST Technologies Inc.

www.palletdawg.com X Pallet protection device

CaseStack

www.casestack.com X X X

Cass Information Systems Inc.

www.cassinfo.com X

Commercial Warehousing Inc.

www.commercialwarehousing.com X X X X X X X

ContainerWorld Forwarding Services

www.containerworld.com X X X X X X X X X X X X

Crown Equipment Corporation

www.crown.com X X X X

DSC Logistics

www.dsclogistics.com X

East Coast Warehouse & Distribution EcoPack Systems

www.eastcoastwarehouse.com X X X X www.ecopack-greenbox.com X

Elemica

www.elemica.com X

Elite Transit Solutions

www.elitetransit.com X

Emerson Cargo Solutions

www.emerson.com/cargo X Cold chain monitoring

England Logistics

www.englandlogistics.com X X

enVista

www.envistacorp.com X X X Supply chain consulting

ESI Design Services

www.esigroupusa.com X

Fetch Logistics Inc.

www.fetchlogistics.com X X

FGI Universal LLC

www.fgiuniversal.com X X X X X X

Flux Power

www.fluxpwr.com X X X

FreightCenter

www.freightcenter.com X

FST Logistics

www.fstlogistics.com X X X

iGPS Logistics

www.igps.net X

FGI Universal

www.fgiuniversal.com FGI Universal relies heavily on the world’s oceans, so therefore believes it is not only its social responsibility but duty to protect the natural landscape that makes global trade possible. Because plastic and other foreign materials are continuously dumped into the water, FGI donates a portion of the proceeds from every order to ocean cleanup. The commodity trading company also continues to advocate for bodies of water by providing financial support for the removal of outdated dams that are responsible for reducing river levels and altering oceanic water temperatures.

FOOD LOGISTICS | JUNE 2018

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FST Logistics

www.fstlogistics.com FST Logistics continues to build alliances with customers that help stress the importance of going green. Its growing sustainability efforts include participation in programs like EPA’s Smartway, Green Power Partnerships, RECS and Green Spot Columbus. These programs require concerted efforts to submit information to measure progress and impact on sustainability. Outside of sponsored efforts, FST also has participated in internal programs for many years. The company sponsors a trash pick-up throughout the city, pushes recycling efforts in break rooms and warehouses, recycles fuel to heat its maintenance shop and has installed motion sensor lighting in its warehouses.

iGPS Logistics

www.igps.net iGPS Logistics is a leading force in sustainability within the food and beverage industry. Its plastic pallets are 100-percent recyclable and include RFID track-and-trace technology, making it so they are rarely lost. iGPS plastic pallets also contribute to lowering the amount of deforestation and are 35 percent lighter than wooden ones, resulting in less fuel used for transportation, as well as lower production of greenhouse gases and other pollutants. An independent lifecycle analysis found the company’s pooled plastic pallets have less environmental impact than both pooled multi-use wood and oneway single-use pallets. www.foodlogistics.com

6/5/18 10:51 AM

www.carrier.com /ecoforward

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rt ™ ra n s p o V e c to r T e h T . le b o r tu n it y e li a n u in e o p p ff ic ie n t. R e e g l a e u is F g t. n h tw e ig h e n g in e e ri d e a le r Q u ie t. L ig n o v a ti v e in ) U R (T Tra n s ic o ld r ’s ie it n rr a U C n r ti o ance. r. A s k y o u R e fr ig e ra o f p e r fo rm e s s b e tt e d in n s u ra b b r r u c to e yo it h th e V e to m a n a g in lo v e w g in ll fa a re w h y fl e e ts

www.trucktrailer.carrier.com

6/5/18 10:51 AM

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

Infratab Inc.

www.infratab.com X X X

Inmar

www.inmar.com X X X

Ioxus Inc.

www.Ioxus.com X

Kane Is Able

www.kaneisable.com X X X X X X

Kenco

www.kencogroup.com X X X X X X X X X X X

Knichel Logistics

www.knichellogistics.com X X

Kuebix

www.kuebix.com X

Lineage Logistics

www.lineagelogistics.com X

LoadDelivered

www.loaddelivered.com X X

Marten Transport

www.marten.com X X

Matson Logistics

www.matsonlogistics.com

Murphy Warehouse Company

www.murphywarehouse.com X

Nature’s Frequencies

www.foodfreshnesscard.com X Shelf-life extension

Newport St. Paul Cold Storage Co. Next Generation Logistics Inc.

www.newportcold.com X X X X www.nextgeneration.com X

NFI

www.nfiindustries.com X X X X X X X

North American Bioindustries LLC

www.northamericanbio.com X X Facility maintenance products

NSF International

www.nsf.org X Sustainability consulting

Nuovo Group Inc.

Www.nuovogroupinc.com X X X

Orion Energy Systems Inc.

www.orionlighting.com X

PAR Technology

www.partech.com X

Penske Logistics LLC

www.penskelogistics.com X X X X X X

Plug Power

www.plugpower.com X X X

ReedTMS Logistics

www.reedtms.com X

RLS Logistics

rlslogistics.com X

Ruan Transportation Management Systems

www.ruan.com X X

S4i Systems

www.s4isystems.com X

Saddle Creek Logistics Services

www.sclogistics.com X X X X

Schneider

www.schneider.com X X

Service Cold Storage LLC (SCS)

www.servicecold.biz X X X X X X

SmartSolve Industries

www.smartsolve.com X

Spoiler Alert

www.spoileralert.com

States Logistics Services

www.stateslogistics.com X X X X

Kane Is Able

www.kaneisable.com Kane Is Able is committed to reducing pollution and congestion with smarter trucks and delivery methods. Its Collaborative Distribution Program utilizes a Tier 1 warehouse management system (WMS) and transportation management system (TMS) to efficiently handle the shipments of middle-market consumer goods manufacturers so customers can receive fewer, larger shipments. Re-use is a major part of Kane’s operations, and any material that has potential to be recycled will stay out of a landfill. The company’s recycling program has generated

FOOD LOGISTICS | JUNE 2018

FLOG0618_24-31_Green.indd 28

over 62 tons of paper, 200 tons of plastic, 13,000 tons of cardboard and 102 tons of cans and bottles.

Knichel Logistics

www.knichellogistics.com Knichel Logistics is proud to participate in the SmartWay Transport Partnership, a program that aims to reduce transportation-related emissions. By partnering with SmartWay certified carriers, Knichel ensures that it gives shippers sustainable options for their products. Knichel Logistics is focused on working with carriers that have optimal operational environmental performance levels. The

company also moves a substantial amount of freight via rail, knowing that it is one of the most fuel-efficient modes of transportation. To further its sustainability efforts, Knichel’s office environment is entirely digital. Energy efficient lighting is used in all spaces, and employees have taken part in ensuring that all applicable waste materials are recycled.

Nature’s Frequencies

www.foodfreshnesscard.com Nature’s Frequencies’ Food Freshness Card is helping to reduce shrink and spoilage in the world’s www.foodlogistics.com

6/5/18 10:51 AM

CO N S UM E RS S E E

Frozen chicken.

SC P O RTS SEES

A dynamic business partnership that maximizes shipping predictability, flexibility and efficiency while minimizing risks and unforeseen problems to create a streamlined supply chain so your refrigerated cargo can be delivered seamlessly to customers faster.

SCSPA.COM

FLOG0618_24-31_Green.indd 29

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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

Suhol Al Fayha Trading LLC

www.suholalfayha.com X X X X

Supply Chain Optimizers LLC

www.supplychainoptimizers.com X

The Raymond Corporation

www.raymondcorp.com X

Thermo King - Ingersoll Rand

www.thermoking.com/global/en.html X

Total Distribution Inc.

www.peoplesservices.com X

Transportation Insight

www.transportationinsight.com X X X Supply chain analytics, consulting

Trinity Logistics Inc.

www.trinitylogistics.com X

Triple T Transport Inc.

www.triplettransport.com X X X

UNEX Manufacturing

www.unex.com X

United Natural Foods

www.unfi.com X X X X X

United States Cold Storage

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VersaCold Logistics Services

www.versacold.com X X X X

Viking Cold Solutions

www.vikingcold.com X X X

Weber Logistics

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Werner Enterprises/Werner Logistics

www.werner.com X

Westfalia Technologies Inc.

www.westfaliausa.com X X

Wilson Produce LLC

www.wilsonproduce.com X Solar photovoltaic (PV) installations

Wise Systems

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WSI

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Yale Materials Handling Corporation

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Zest Labs

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Zipline Logistics

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supermarkets by keeping food fresher for longer periods of time. Since implementing the cards, supermarkets have decreased shrink by upwards of 30 percent. Because measuring results is difficult, Nature’s Frequencies continues to focus on companies that use software to scan when they dispose or repurpose items to track waste and spoilage. The company’s patented technology was named the “Best New Food Safety Solution in 2017” at the United Fresh Produce Association and continues to see growth in its sustainable practices.

NSF International

www.nsf.org NSF International is a tactical partner for food and beverage companies that want to set and achieve sustainability goals. An innovator in the food and beverage industry, its unique positioning at the intersection of food safety and sustainability enables the company to provide critical services in a competitive market. NSF engages with com-

FOOD LOGISTICS | JUNE 2018

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panies to diagnose performance and impact, design strategies and programs, and deliver sustainability solutions that build supply chain resiliency, operational efficiency and brand reputation. Through its partnership with the Canadian Roundtable on Sustainable Beef, the company developed oversight protocols, audit manuals and program management materials for a new sustainable beef standard. NSF’S TraQtion software also enables food companies to harness the power of big data, providing a single collaborative platform for tracking, analyzing and reporting sustainability, food quality and compliance. The software’s algorithm ensures the correct supplier and facility information is captured, based on operation type, region and commodity, enabling powerful trending and analytics capabilities.

RLS Logistics

www.rlslogistics.com RLS Logistics continues to take steps toward a sustainable

future with its most recent solar field expansion at its Newfield Logistics Center. The solar system is expected to generate 100 percent of the power needed for this 255,000-square-foot facility, with a corresponding reduction in greenhouse gas emissions (200 tons per year) equivalent to taking 40 cars off the road or avoiding 70 tons of landfill waste each year. Additionally, RLS Logistics uses LED lights and sustainable packaging equipment throughout its facilities. The logistics provider also continues to encourage clients in its e-commerce business to use sustainable, recyclable shipping containers, which has enhanced its client’s sustainability efforts.

Spoiler Alert

www.spoileralert.com Spoiler Alert helps the food industry reduce waste and recover value from unsold inventory. In doing so, it offers a software solution that enables companies to capture granular insights into food recovery www.foodlogistics.com

6/5/18 10:51 AM

and waste diversion efforts, identify improvement areas and track diversion efforts. The company also offers an online portal that communicates the availability of food product in real time to donation outlets, discount buying networks and organic recycling programs. The platform tracks and measures the volume and financial value of unsold inventory that flows through it, so far facilitating the distribution of over $5 million in food inventory to outlets. One of Spoiler Alert’s goals is to reduce the amount of food going to landfills.

Total Distribution Inc.

www.peoplesservices.com Total Distribution encounters a significant amount of packaging materials intended for disposal. Even though the company has few options for preventing the material from coming to its site, Total Distribution realized it can make a difference in where those materials end up. The company has extended its efforts into extensive pallet, cardboard, metal and plastic recycling to help divert the waste that is created daily in its facilities from ending up in landfills. Total Distribution is making progress by creating social value and strives to operate in more sustainable ways.

Transportation Insight

www.transportationinsight.com Transportation Insight has established business practices that reduce environmental impact through customized enterprise logistics solutions anchored in a robust suite of services. By combining its improvement methodology for the end-toend supply chain with a proprietary freight audit and payment system that collects up to 200 data points from each freight invoice, underpinning a comprehensive supply chain analysis, Transportation Insights helps clients implement, monitor and maintain practices that reduce vehicle miles, air pollution emissions and energy consumption. www.foodlogistics.com

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VersaCold

www.versacold.com VersaCold Logistics Services is committed to improving sustainability measures to achieve greater environmental responsibility in all aspects of its operations. As part of this mission, the company has made significant investments to reduce its environmental impacts, which include: the installation of a rainwater and defrost condensation collection system and reduced flow faucets, replacement of standard efficiency motors with premium efficiency motors, and implementation of a comprehensive recycling program and employee education. VersaCold believes environmental management enhances competitive strength while benefiting its employees and customers by contributing to the overall environmental and economic well-being of the community it serves.

Viking Cold Solutions

www.vikingcold.com Viking Cold Solutions’ low-temperature thermal energy storage uses an environmentally-safe phase change material that can reduce energy costs by 35 percent. The company’s intelligent controls can detect periods of high energy costs and will turn off conventional refrigeration equipment while the PCM stores 85 percent of all heat infiltration to maintain temperature stability and reduce energy consumption for extended periods of time. The technology has been implemented at retail, commercial and government facilities across the United States, Central America and the Caribbean, with plans of further installation on four continents. Viking Cold’s technology pro-

vides on its own and can be paired with solar or other renewables to store off-grid generated energy in an environmentally-friendly way, helping create a smaller carbon footprint for the entire cold chain.

WSI

www.wsinc.com WSI is dedicated to monitoring the food industry’s ever-changing regulations and requirements. The logistics company ensures that customers understand and are compliant with all requirements for food-grade storage and distribution. Additionally, it works to ensure that it facilitates the use of sustainable and efficient solutions for storage, packaging and shipping. WSI uses TL/LTL consolidation when possible to keep environmental impact to a minimum and is able to track the performance of food logistics services and make adjustments as necessary.

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SECTOR REPORTS WAREHOUSING

BY MARY SHACKLETT

THE ENERGY EFFICIENT WAREHOUSE There are numerous solutions to greater energy efficiency in the warehouse, all while ensuring optimal food freshness on its journey through the supply chain.

ach year, nearly one-third of food produced is lost to spoilage, and a significant amount of that waste occurs before food even gets into the hands of consumers. There are many points along the farm-to-fork supply chain where spoilage can set in—and one of them is in the warehouse. Companies are increasingly focused on improving the energy efficiency of their warehouses, and, in turn, also improving the freshness and wholesomeness of the foods they are storing.

Temperature Zones According to Tim Nguyen, regional vice president at ESI Group USA, a food facility designer, builder and consultancy, one of the largest energy consumers in the warehouse is refrigeration. “Many companies are improving the energy efficiency of their ware-

houses by using variable frequency drives (VFDs) in their refrigeration that can control the intake of energy, adjusting it to the needs of specific refrigeration applications without expending excess energy,” Nguyen says. Equally important is a more holistic approach to warehouse environmental management that goes beyond refrigeration. “In cases where warehouses store a variety of food items, there might be a need to refrigerate perishable items, while other food items don’t require refrigeration but might only need a cool, dry area for storage,” explains Walt Swietlik, director of customer relations and sales support at Rite-Hite, which manufactures a variety of safety, security and dock-related items for the warehouse space. “To meet these different needs, warehouses should ideally be divided into different environmental zones, depending upon the type of food that is being stored in it.” Instead, Swietlik says what we tend to see at many warehouses is an excess of energy-inefficient freezer space being used to store items that really don’t require refrigeration. “This is wasteful energy consumption. The best ap Insulated curtain walls provide an adaptable way to separate and partition off temperaturecontrolled areas.

FOOD LOGISTICS | JUNE 2018

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proach is to subdivide the space in the warehouse into different temperature zones that are calibrated to the requirements of the specific food items that are being stored so you can avoid using refrigeration where it isn’t required,” he adds. Recognizing the value of temperature-zoning, large companies with multiple warehouses have made huge strides in improving the energy efficiency of their storage facilities. However, smaller companies that have just one or two warehouses continue to lag, and there is still more work to be done to optimize energy efficiency and food freshness. “It can be difficult for smallerand middle-sized companies to make an upfront investment in their warehouse facilities because of the cost, but they’ll see the returns on those investments if they assess their warehouse needs first, invest in the best energy-efficiency solutions for their particular situations, and then measure the recoupment of their energy savings from those investments,” says Jeff Chastain, senior vice president and general manager at Hunter Industrial Fans, which provides energy efficient fan and ventilation solutions. Other key areas companies should consider include: • Getting energy audits and retrofitting buildings • Managing the warehouse holistically www.foodlogistics.com

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 A loading dock seal is a simple solution for sealing the fourth side of the dock opening. Seals play a pivotal role in preventing heating or cooling energy from escaping the warehouse.

nies can take on their own. “When we evaluate a warehouse, some of the common areas for improvement are adding to building insulation, converting roofs to lighter colors to reflect sunlight and to prevent overheating, and eliminating seams in metal roofs,” says an energy audit manager at a West Coast utility company.

Managing the Warehouse Holistically • Leveraging environmental investments • Including workers and work processes in warehouse environmental planning • Factoring in food safety measures • Responding to new supply chain trends like direct farm-to-consumer shipments

Energy Audits and Retrofitting Buildings Many local electrical utilities offer guidelines and/or energy efficiency audits of commercial structures like warehouses. The audits identify areas of commercial buildings that can be improved for energy efficiency, and outline a series of steps that compa-

According to Hunter Fan’s Chastain, larger companies, and now some mid-sized organizations, are beginning to install building management systems (BMS) that can holistically manage and even automate the environmentals for an entire warehouse. These systems, he says, can control and monitor warehouse mechanical and electrical equipment

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but they’ll see the returns.” Jeff Chastain, senior vice president and general manager, Hunter Industrial Fans

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 A high-volume, low-speed fan (HVLS) can leverage the effects of an HVAC system to reduce food spoilage and improve warehouse productivity.

load, so that you are only running at full load during off-peak demand time.”

Responding to Supply Chain Trends

such as ventilation, lighting, power systems, fire systems and security systems, all from a single “pane of glass” computer workstation. When all of your environmental control equipment is tied into this system, you can then sit at a console and control temperature and humidity in different zones within your warehouse, adjusting each zone as needed for the type of food that it is storing. You can also review analytics and reports that inform you how well your warehouse is performing in terms of energy efficiency and spend.

Leveraging Environmental Investments An HVAC system is a given in the warehouse. It can also become an enormous energy eater. “We try to encourage clients to implement a high-volume, low-speed fan (HVLS), which can leverage the effect of the HVAC, reduce food spoilage and improve warehouse productivity,” says Chastain. “The fan leverages the heating or cooling that your HVAC is providing, so it no longer has to work as hard to control your warehouse environment. This is a cost as well as an energy savings.” Warehouse docks are also major energy wasters, as they are often left open when trucks arrive and depart from the warehouse. Air and debris from outside of the warehouse can infiltrate, compromising the internal environmental of the warehouse and/or forcing environmental control systems like HVACs to work harder. www.foodlogistics.com

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In the next few years, energy efficiency in the warehouse will take on new meaning as the supply chain changes. The primary driver of change will be consumer desire to get food fast. To adjust to heightened consumer expectations, companies will revise the traditional flow of goods to a model where shipments might flow directly from farm-to-consumer or from a local warehouse directly to consumer, bypassing the retailer. The next great challenge for producers, transporters, warehousers and retailers will be transitioning to this model while still maintaining cold chain energy efficiencies.

“We help our clients solve this problem of environmental ‘leakage’ by placing seals between the trucks Mary Shacklett is the at the loading and receiving docks president of Transworld and the warehouse,” says Rite-Hite’s Data, a technology Swietek. “These seals shield out the analytics, market research external environment and keep the and consulting firm. Prior warehouse environment regulated.” to founding the company, In addition, the seals are flexible she was vice president and can be adjusted to a variety of of product research and different trucks. In the past, seals software development only covered the top and the sides at Summit Information of the truck, which allowed some Systems. She can be leakage of the outside environment reached at mshacklett@ into the warehouse from the bottwdtransworld.com. tom of the truck’s loading platform. Now, Swietek FOR LEASE - UNIQUE INFILL OPPORTUNITY! says Rite-Hite provides SAN FRANCISCO BAY AREA seals that cover all three REFRIGERATED WAREHOUSE FACILITY sides, plus the bottom of the truck. “This reduces energy leakage, keeps the warehouse environment stable, and also keeps out rain, SAN FRANCISCO BAY AREA dirt, mosquitoes and other REFRIGERATED WAREHOUSE FACILIT Y weather-related elements,” GREAT LOCATION! APRROXIMATELY 90,629±SF TOTAL ON 11.4±ACRES - REFRIGERATOR/FREEZER/COLD 1/2 mile off I-680DOCKS/OFFICE he adds. & 5 miles from I-580 In the area of refrigerSAN FRANCISCO BAY AREA REFRIGERATED WAREHOUSE FACILIT Y ation, which exerts the APRROXIMATELY 90,629±SF TOTAL ON 11.4±ACRES - REFRIGERATOR/FREEZER/COLD DOCKS/OFFICE most “pull” on energy of any system in a warehouse, there are also energy-saving technologies that can 5675 SUNOL BLVD., PLEASANTON, CA be put into play. 90,629±SF PRIME COOLER/FREEZER “Variable frequency FACILITY ON 11.4± ACRES drive motors in refrigerSINGLE STORY INDUSTRIAL FACILITY TRUCK MAINTENANCE FACILITY & ation units allow you to • 90,629±SF total ADDITIONAL YARD AVAILABLE • 14,925±SF (build to suit office) • 7,620±SF (80’ x 95’) truck align your refrigeration to • 2,867±SF lockers/restrooms maintenance facility • 1,580±SF warehouse office • Above ground fueling tank the levels needed for the • 34,405±SF dry product you are refriger• 9,967±SF cooler LAND • 7,545±SF cool dock • Adjacent 3 acres of ating,” says ESI Group’s • 18,392±SF freezer secured/paved yard • 948± mechanical room Nguyen. “In refrigerated warehouse facilities, you lee-associates.com can also shed or increase JUNE 2018 | FOOD LOGISTICS

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SECTOR REPORTS TRANSPORTATION

BY BARRY HOCHFELDER

TRUCKIN’ FOR A GREENER ENVIRONMENT A

It’s not easy, but 3PLs and transportation providers are working toward sustainable fuels.

ll those trucks you see on parts of an overall strategy to build the road? They’re carrying and maintain a sustainable fleet. almost 71 percent of the “Retrofits of power units and trailfreight tonnage moved in the United ers provide a tangible benefit and States. According to the American may be a good entry point of a multiTrucking Associations (ATA), that’s prong program,” he says. “Replacing 10.5 billion tons of freight annually, retired or less-efficient power units requiring more than 3.6 million may cost more upfront, but will heavy-duty Class 8 trucks and over provide fuel savings throughout the 3.5 million truck drivers. And, the life of the unit. Fuel can count for ATA reports, it also takes 39 billion more than one-third of the total cost gallons of diesel of ownership.” fuel to move all of Forster adds that, that freight. “smart routing to maximize Yes, freight utilization, along with makes the econno-idle policies, contribute omy go, but that to a sustainability culture OF FREIGHT HAULED ANNUALLY IN THE 39 billion gallons among fleet operators.” U.S. BY TRUCK of diesel also The fuel experts at 3PL helps contribute NFI Industries also are to greenhouse controlling fuel costs while gas emissions boosting sustainability, globally—7 says Bill Bliem, senior vice percent more president, fleet services, OF DIESEL FUEL than the airline who adds that sustainabilAmerican Trucking Associations industry and ity is a prime concern for the internet customers. “NFI utilizes combined, says Business for Social various fleet technologies to boost Responsibility (BSR), a global nonsustainability, including weight profit organization. reduction, idle improvement, aeroSo, with an expanded focus dynamic packages, wide-based tires, on sustainability, transportation automated manual transmissions, companies and 3PLs are searching down speeding, speed governors for ways to be more environmentaland electric APUs, to name a few. ly-friendly without losing profitabili“Most customers from both ty. It’s not easy. distribution and transportation “There is no single solution that channels express continued interest will accomplish transformation in sustainability,” he says. “Social without disrupting the business,” responsibility is a core value here, says Bill Forster, executive vice and we continuously implement inpresident of the food and beverage novative ways to support customers consulting practice at Maine Pointe. with sustainable operations.” “A balanced approach works best.” Forster suggests retrofitting exist- It’s Not Easy ing units, replacing retiring units, and As in so many things related to reviewing maintenance routines, supply chain, change management utilization and driver behaviors as is at the forefront, notes Maine

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Pointe’s Forster. “Get to the ‘why’ as soon as possible to align people,” he advises. “Once aligned, everything is possible. Taking a pragmatic approach, and getting resources engaged at all levels of the organization, is essential. Transforming an existing fleet does not happen overnight. Make the case for change, set reasonable expectations and schedules, and then relentlessly execute against the plan—that’s a winning way forward.” Forster adds that C-suite involvement and communications, especially from the CEO, is also critical to a successful outcome and cost reduction while improving service. Change, though, doesn’t come without risk, says Bliem. “When adapting new technologies, there are infrastructure and maintenance uncertainties. We look for static partners in both arenas to ensure our risks are mitigated,” he says. Organizations such as BSR also www.foodlogistics.com

5/31/18 3:44 PM

Each organization will have

its own unique value drivers

that are important to stakeholders, customers and associates of the firm.” Bill Forster, executive vice president, food and beverage consulting practice, Maine Pointe

are involved. Its Future of Fuels group has created the Sustainable Fuel Buyers’ Principles, which provide a framework to catalyze lasting change in the road freight fuel system. Members include such heavyweights as AB InBev, Amazon, Heineken, HP, McDonald’s, Walmart, PepsiCo and UPS. The Sustainable Fuel Buyers’ Principles include: • Support low-carbon, sustainable fuel choices. • Demonstrate competitiveness. • Advance investment, pilots and standardization. • Measurably improve well-towheels climate impacts. • Address other relevant sustainability impacts and benefits.

It’s Not Cheap Building and maintaining a sustainable fleet means more cost, at least initially, acknowledges Forster. “Green power units can cost $20,000 more than traditional gas www.foodlogistics.com

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and diesel counterparts,” he says. In addition, there are potential infrastructure costs associated with electric and alternative fuels. Maintenance, at least in the short run, may be higher due to the availability of training and tools required to perform maintenance and repair operations. Advanced electronics and sensors in new equipment can also shut a sustainable unit down, and keep it down, until the problem is addressed. “This leads to additional costs for out-of-hours repairs, expedited shipping and dispatch, and incremental lodging costs,” adds Forster. To combat this, Forster recommends approaching sustainability and operational excellence together, helping clients “break through supply chain silos and transform the buy-make-move-fulfill supply chain to deliver the greatest value to customers and investors at the lowest cost to business.”

Measuring the Impact Not surprisingly, metrics are also important. You can’t tell if you’re improving—or falling behind— without them. NFI uses the EPA’s SmartWay emissions metrics as a KPI. Bliem says his company has reduced emissions 80.65 percent since 2011, with an eventual goal of near zero. SmartWay metrics cover various emissions of carbon dioxide, oxides of nitrogen and particulate matter. Forster advises establishing clear-cut program goals, including a dashboard that reflects progress against those goals and communicating the results throughout the organization. “Each organization will have its own unique value drivers that are important to stakeholders, customers and associates of the firm,” he says. “Furthermore, your suppliers’ suppliers [and their suppliers] and your customer can and will add value to the process.”

Barry Hochfelder is a freelance journalist who has covered a variety of industries in his career, including supply chain. He also served as the former editor of Supply and Demand Chain Executive. Hochfelder is based in Arlington Heights, Illinois.

JUNE 2018 | FOOD LOGISTICS

5/31/18 3:44 PM

SECTOR REPORTS SOFTWARE & TECHNOLOGY

BY AMY WUNDERLIN

LIVING IN A MOBILE WORLD T

From the warehouse to the truck cab, mobile apps are helping to optimize many aspects of the food supply chain.

he first thing many of us do each morning is reach for our smartphone. Whether it is to catch up on email, check for rain or see what we missed on Instagram while we slept, the applications downloaded onto our mobile devices have infiltrated every aspect of our lives. In today’s increasingly tech-savy workforce, it only makes sense mobile apps have found their way into the workplace, too. Companies across the food supply chain are now turning to lowcost or free mobile apps to increase efficiency and provide real-time visibility into their operations. Below, Food Logistics highlights just a few mobile apps (out of thousands) that provide strong use cases for the food and beverage industry.

Curo Curo is an application designed to identify tasks and streamline work within a jobsite. Created  Curo’s patented GPS capability is like Google Maps in the warehouse. Users have the ability to import the floor plan of their facility, so the app can help identify where the work needs to be done.

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initially to help project managers there that say, ‘because we know at Amazon manage and oversee where it’s been delivered to, these the construction of three or four are the places we need to retrieve large distribution centers at one it.’ [The app can help] you start time, the mobile app scheduling, routing and captures every needed [Curo] is doing assigning or notifying activity, delegates to customers what they exactly what the right workers and technology ought need to do in their part provides communication of the recall. There are to be doing— and workflow guidance, endless possibilities making us more while confirming and from that standpoint,” efficient offering proof of comWhite continues. without pletion that the job was While Curo is not curconducting rently used in the food done correctly. For food and beverage unneccesary and beverage space, the work.” companies that have propossibility is promising cessing plants, distribudue to its three primary Greg White, CEO, Curo tion and logistics centers, pillars: GPS capability, the Curo app can define in-app communication USDA compliance and cold chain and the ability to work in a way verification for a shipment or that is attractive to a younger genequipment implementation, as well eration who in the next few years as verification via video or photo will make up more than 50 percent evidence when the project and/or of the workforce. shipment is completed. “It’s [Curo] actually facilitating For example, Greg White, CEO of higher quality work with less effort Curo, explains, “You would be able and in less time in a way that the to have checkpoint verifications new work generation wants to that allow you to say the temperawork and with the accountability ture was maintained or temperathat the leadership generation ture was above optimal for some wants to see. period of time.” “It’s really doing exactly what Anywhere where you can’t technology ought to be doing; it’s misstep, this is a perfect application, making us more efficient without he adds. conducting unnecessary work. To “With the capability to show me, that is the higher purpose here,” somebody precisely how to do White adds. it and capture every step in the task to then visually verify, gives ComCheck Mobile companies assurance around those For shippers, brokers and 3PLs, kinds of compliance issues,” White security, transparency and time explains. savings are extremely important. Curo also has potential applicaLaunched in 2017 by Comdata tion during food recalls. and designed specifically for the “Imagine a scenario where you trucking industry, Comchek Mobile simply import the data that says, is a digital payments platform that is ‘this is who all got this product,’ and helping to keep drivers on the road. Curo drops a bunch of icons out “In an industry where time is www.foodlogistics.com

6/5/18 10:53 AM

money, mobile app users who receive a traditional Comdata Express Code can use the mobile app to quickly check their balance and transfer funds directly to their Comchek Mobile account, making funds immediately available for use,” explains Terrence McCrossan, senior vice president and general manager of Comdata North American Trucking (NAT). “It’s a quick and easy way to receive funds that eliminates the need to make an extra stop at a truck stop or other cashing location.” The first peer-to-peer (P2P) payment platform, ComCheck is similar to PayPal or Venmo, where users can also make PIN-based point of sale or fuel purchase payments via the Comchek Mobile debit card or send funds to other registered users via a P2P transfer. For drivers, McCrossan says the speed and simplicity of the system makes it easy to use while out on the road. “Drivers are often on the road for many days or weeks at a time, which means having liquid funds available is critical to their day-today life,” he adds. Current industry regulations, such as the ELD mandate, also mean that drivers must focus on maximizing the amount of time they spend on the road every day. McCrossan notes that Comchek Mobile’s ability to facilitate load payments and fuel advances helps make time spent on the road more efficient.

prove food safety and operational efficiencies in thousands of food service locations, with more than 35 million observations a month.

Workwave: GPS Track WorkWave: GPS Track allows businesses to see their entire fleet’s location from any mobile device. “With many business owners spending time both in and out of the office, it is important to be able to access their fleet’s live activity,

events and functions, even when they step away from their desk,” says Mike Profit, WorkWave’s chief product and service officer. “WorkWave is empowering business owners and fleet managers to make better informed business decisions through live GPS tracking.” Adds Kevin P. Haley of Squier Lumber & Hardware, an initial user of the mobile app, “it [WorkWave] provides that extra layer of visibility into our mobile workforce.”

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SECTOR REPORTS OCEAN PORTS & CARRIERS

BY LARA L. SOWINSKI

SUPPORTING MORE FOOD

IMPORTS AND EXPORTS T

It takes a network of ports with a range of capabilities to accommodate growing volumes of U.S. imports and exports of food.

he growth in perishable food imports and exports across the United States is good news for seaports of all sizes. Major box ports (see Food Logistics’ May 2018 cover story) are benefiting from the ongoing migration of refrigerated food shipments from specialized carriers to containerized carriers, among other trends, and are investing in infrastructure to handle expanding volumes. Meanwhile, other ports that specifically target perishable foods as part of their cargo mix (bulk/ breakbulk and containerized) are promoting customer service along with knowledgeable and expedited handling to attract more refrigerated (“reefer”) shipments. These mostly small- to medium-sized ports have embarked on sizeable infrastructure investments and service expansions to keep pace with demands from reefer benefi-

FOOD LOGISTICS | JUNE 2018

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cial cargo owners (BCO). Following are highlights of some of those developments:

PhilaPort www.philaport.com

PhilaPort is in the midst of a significant $300 million capital improvement plan aimed at keeping the port competitive with others in the Northeast U.S. region, such as New York-New Jersey, Baltimore and Wilmington (DE), and capitalizing on the growth potential associated with the widened Panama Canal and increasing perishable trade volumes. Earlier this year, the port completed a massive channel-deepening project on the Delaware River— deepening the channel to 45 feet from the previous 40 feet—which will help PhilaPort accommodate larger vessels. In February, the port achieved a milestone when the larg-

 Port Everglades handles almost half of Florida’s reefer container volume, moving 146,608 TEU in 2017.

est container vessel ever to call the port—the MSC Schuba B—arrived with cargo comprised mostly of perishable fruit primarily from Chile and Peru. “Being able to handle a 12,200TEU container capacity vessel is a game changer,” says Jeff Theobald, PhilaPort executive director and CEO. “This size of vessel is increasingly being used as the workhorse for shipping lines around the world. It’s the reason why we are working so hard to make the necessary capital improvements, which we have planned, as quickly as possible.” That’s not all. The port also took delivery of two super post-Panamax cranes at the Packer Avenue Marine Terminal in March. The new gantry cranes are capable of discharging www.foodlogistics.com

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continued

containers from the larger vessels that are calling the port. In the first quarter of 2019, PhilaPort will acquire three more cranes—two just like the ones added in March and another one for Packer Avenue Marine Terminal. Packer Avenue Marine Terminal is also getting upgrades, such as reinforcement of its wharves and reconstruction of a quay wall, as well as removing outdated warehouses. In addition, a 29-acre property close to the terminal, which the port purchased last year, will be the future site of a near-dock cold storage facility and other warehousing. In addition to its rank as the No. 1 import port for Peruvian fruits, PhilaPort is a leading import gateway for perishables such as wine, meat, bananas and other fruits. According to the U.S. Department of Agriculture, PhilaPort moved 44 percent of the total U.S. waterborne meat imports and 26 percent of wine imports in 2015. Overall, most of the port’s agricultural imports were containerized (56 percent, compared to 44 percent bulk), and there was a 50/50 split between reefer versus dry agricultural imports. On the export side, meat and grocery items account for the biggest volume of agricultural exports at PhilaPort, mostly reefer (65 percent) and the remaining dry (35 percent).

Port Everglades www.porteverglades.net/cargo

Florida’s Port Everglades handles almost half the state’s reefer container volume, moving 146,608 TEU in 2017, ahead of second-place JAXPORT (93,025 TEU) and thirdplace PortMiami (60,335 TEU), and ranks fifth among the top 10 U.S. ports for reefer container moves. In addition, the port handled a record 1,076,893 TEUs last year, making it one of the top 10 U.S. box ports (and likewise, positioning it in the “major box port” category). Florida East Coast Railway’s intermodal container transfer facility (ICTF), which started operations at the port in 2015, is credited with boosting Port Everglades’ container volumes in recent years. Central and South www.foodlogistics.com

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America, along with the CaribbePort Everglades of work by the South American an, are the primary sources for country to gain access to the is the leading fresh produce coming into Port perishables seaport U.S. market. Everglades. “We have been actively in Florida, with easy In May, Crowley Maritime expanding our perishables access to launched a direct, weekly service 19 million market for years, and this is from Puerto Plato in the Dominiconsumers a huge welcome for produce can Republic to Port Everglades. from Colombia,” notes Steven in the The two-day northbound sailing Cernak, CEO and port director region.” departs on Mondays and arrives of Port Everglades. “Port Steven Cernak, CEO, at Port Everglades on WednesEverglades is the leading Port Everglades day morning. perishables seaport in Florida, The new service “offers shipwith easy access to 19 million pers a much needed, fast and direct service consumers in the region.” from Puerto Plata to Port Everglades,” says The port’s ocean-to-air perishables Nelly Yunta, vice president of Crowley’s program, introduced last year, is designed Dominican Republic liner service. to give perishable shippers more transporCustomers can ship a variety of cargo in tation options and get fresh produce to all types of equipment, including 20- and new markets quicker. Customized Brokers, 40-foot reefer and dry containers. the import and customs brokerage arm of Meanwhile, Port Everglades’ longtime Crowley, along with Miami International partner Sol Shipping Services signed a fiveAirport (MIA), coordinate ocean shipments year lease with the port in December. Sol, of produce from Latin America to Port an importer of cantaloupe, honeydew and Everglades, then on to cargo planes at watermelon, began using the port in 1993. MIA for flights to their final destinations in “We are delighted to renew our partEurope and Asia. nership with Port Everglades,” says Enda Port of San Diego Walsh, director of Sol and president of www.portofsandiego.org Fyffes North America. Under the new lease terms, Sol will In January, the Port of San Diego move to a 7-acre site this month. The launched a $24 million project to modernshipping line will move at least 16,000 conize its 10th Avenue Marine Terminal, which tainers through Port Everglades annually. involves the removal of two obsolete wareA milestone was reached last November, houses and the creation of more space to when the first shipment of Colombian accommodate project cargo. Plans also call Haas avocados into the United States for three distinct cargo nodes within the arrived at Port Everglades, following years existing footprint of the terminal, focusing on project and breakbulk cargo, dry bulk  In March, PhilaPort installed two super cargo and reefer containers. post-Panamax cranes at its Packer Avenue Phase I of the modernization project Marine Terminal. The port will acquire three will take approximately 13 months to more in early 2019. complete, and cargo flows are expected to expand from 1 million metric tons in 2014 to 4.7 million by 2035. The port currently offers 300,000-square-feet of on-dock cold storage (the most on the U.S. West Coast) and is rail-served by BNSF. It also offers 700plus reefer plugs, a 42-foot draft and quick access to four major interstate highways. Dole moves 15,000 tons of cargo weekly through the Port of San Diego, mostly bananas, but port executives are looking to expand the port’s business portfolio to include more produce and perishable food growers and distributors who are looking for a higher level of customer service than what they might get at bigger ports. www.foodlogistics.com

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ADVERTISER INDEX ADVERTISER......................................... PAGE Alliance Shippers........................................................................... 25 Carrier Transicold Div................................................................ 27 Cubic Designs, Inc........................................................................ 33 Detroit Diesel..........................................................................22-23 DSC Logistics.................................................................................. 17 Economic Development Partnership of North Carolina.......................................................................... 11 Ford Motor Co..............................................................................2-3 GPS Insight...................................................................................... 39 Great Dane Trailers Inc.............................................................. 46 IFDA.................................................................................................... 42 Isuzu Truck....................................................................................... 13 Lee & Associates........................................................................... 35 Old Dominion Freight Line Inc.................................................. 9 Penske Truck Leasing..................................................................... 5 Port Tampa Bay.............................................................................. 41 South Carolina State Ports Authority................................. 29 Total Distribution, Inc................................................................. 31 TranSolutions Inc.......................................................................... 43 Utility Trailers.................................................................................... 7 Viking Cold Storage..................................................................... 19

JUNE 2018 | FOOD LOGISTICS

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FOOD (AND MORE) FOR THOUGHT

BY STEPHEN DOMBROSKI

Industry 4.0 and Food Manufacturing:

Is There a Match? M DOMBROSKI

anufacturers in automotive, high-tech and life sciences have made tremendous inroads with digitization and automation. The domestic food sector is starting to catch up, but worldwide, many food producers still rely on manual processes. The industry realizes that the food supply chain can benefit from Industry 4.0 technologies and is working on how to wisely apply them.

Catalysts Driving the Need for Change

Stephen Dombroski is QAD’s senior manager for the consumer products and food and beverage vertical markets. He has over 30 years’ experience in manufacturing and supply chain, and has helped multiple companies in a number of industries to implement S&OP concepts and processes.

Many factors are driving food manufacturers to embrace advanced technologies. The market is growing and there are many challenges, such as: • Increasing Consumer Demands—Consumer preferences have changed, and manufacturers now provide an infinite amount of product choices in new and evolving segments. Consumers dictate the path of the industry, from price to quality to product specifications and customizations. Consumers also want healthier products that can be prepared quickly. • Expanding Value Chain—There are more venues than ever to purchase food products. Because the market for online grocery will continue to grow, manufacturers need to ship more products to more places. Item location planning accuracy is critical to getting inventory where it needs to be and when. • Food Safety—The pressure to produce safe and quality food is increasing. Consumers want to know what they are eating, and governments are enforcing

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stricter rules. The ability to track the lifecycle of a product and quickly identify the source of food safety issues is not just a legal responsibility for food producers, but also a social and ethical obligation to their consumers. • Pressures to Improve Margins—Food manufacturing is historically a low margin business, so managing costs is a major priority. However, increasing transportation and inventory costs, combined with shorter product lifecycles, make this difficult.

Food Manufacturers Must Embrace Industry 4.0 The global food supply chain currently is not agile enough to respond to the present needs of the marketplace. While low margins can limit investment in new technologies, the market is forcing manufacturers to innovate and evolve for survival. All aspects of food production can benefit from advanced technologies. For example, farmers are experimenting with sensors to monitor soil, pests and other environmental issues to assist in proper irrigation and fertilization, which improves crop yields, quality and lower costs. These kinds of technologies can also be used to provide manufacturers, distributors and sellers with important information that can help streamline the supply chain and maximize efficiencies. Another promising Industry 4.0 technology is blockchain. Food and beverage products move through many touch points and are handled

by many people. Blockchain can assist in the tracking of food origins. Machine learning can enable manufacturers to incorporate demand in real time to improve efficiencies, and robots help streamline manufacturing and warehouse operations. The supply chain is complex; those who simplify it will win.

How Do You Get There? Implementing the solutions of Industry 4.0 will be easier if you have a clear vision of how to begin and if your processes and goals are aligned. You need a plan because your competitors already have one. Start with current systems. Ensure they are as up-to-date as possible (latest release) and that they provide you with what you need now. • Align and Partner—Associate with those who understand your business and the processes and tools that can be used to execute your strategy. • Evaluate Current Data Sources—Make sure you know what data you need and find out how to get that data. • Integrate—Determine whether or not current equipment and data from existing systems and planned systems can be connected. • Start Small—Rome was not built in a day, so start small to avoid missteps—but, start. Advanced technologies can be intimidating, but they don’t have to be. It can be an exciting journey. Getting ahead of the issues impacting the industry tomorrow will invigorate your business. Most importantly, it will help you become an agile, effective enterprise that will succeed in the future. www.foodlogistics.com

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THE 2018 FOOD LOGISTICS

TOP GREEN 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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T R A N S I T

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TOP 3PL & COLD STORAGE PROVIDERS Honoring the leading 3PL and Cold Storage Providers that support the food and beverage supply chain Nominations Closed Winners announced in August 2018 issue

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TOP GREEN PROVIDERS In recognition of companies demonstrating leadership in sustainability in the food and beverage supply chain Nominations Closed Winners announced in June 2018 issue

CHAMPIONS AWARD: ROCK STARS OF THE SUPPLY CHAIN Recognizing individuals whose vision is shaping the future of the global food supply chain Nominations Closed Winners announced in March 2018 issue

Online nominations open approximately eight weeks before the deadlines listed above. Award results, information and nominations posted on:

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