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

3PLS FOR HIGH-END PERISHABLES

SUSTAINABLE FLEETS

FOOD CHAIN SUSTAINABILITY

SUSTAINABILITY IN THE AGE OF COVID-19 Issue No. 217 June 2020

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Food Logistics

2020 TOP

TOP GREEN PROVIDERS 2020

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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3PLS FOR HIGH-END PERISHABLES

SUSTAINABLE FLEETS

FOOD CHAIN SUSTAINABILITY

SUSTAINABILITY IN THE AGE OF COVID-19 Issue No. 217 June 2020

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Penske provides all the benefits of a private fleet without the complexities of ownership. We can supply quality trucks, dedicated routes or complete supply chain management — whatever you need. So you can focus on your core business, meet all your transportation needs, and keep control of your operating costs. That’s how we deliver confidence. Learn more at gopenske.com.

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ON THE MENU

June 2020 ISSUE NO. 217 COLUMNS FOR STARTERS

Sustainability Saves Supply Chains in Time of Need

Editor-in-chief Marina Mayer says today’s supply chains will continue to sustain through whatever disruptions are ahead thanks to sustainability.

COOL INSIGHTS

COVER STORY

How Sustainable Food Chains Thrive Amid Global Pandemic Here’s how vertical farms and sustainable solutions help to maintain waste and energy in the supply chain during the COVID-19 crisis.

FEATURE

3PL & REFRIGERATED LOGISTICS

High-End Perishables Create Added Pressure for 3PL’s

3PLs are responsible for the safe transfer of common goods in the cold chain, but what about luxury items that require more care?

TOP GREEN PROVIDERS 2020

SECTOR REPORTS

Starting a New Chapter in Foodservice Sustainability

Vehicle Criteria and Greenhouse Gas Emissions Reduction

How COVID-19 May be Catalyst in Ensuring Food Supplies, Clean Air and More Resilient Communities

Best Practices to Improve In-Store Picking for E-Commerce Fullfillment

Lucas Systems says automation will be a part of the long-term solution, but manual picking processes will dominate in the short term.

Supply Scan Food on the Move Ad Index

SOFTWARE & TECHNOLOGY

What Apps are Cold Chain Providers Using in 2020?

Here’s how software and mobile apps are modernizing the cold chain sector.

TRANSPORTATION

United Fresh discusses how the COVID-19 impact on the fresh produce industry has been catastrophic.

According to U.S. Gain, a shift to alternative fuel can provide environmental benefits needed to maintain your company’s sustainability plan.

FOOD (AND MORE) FOR THOUGHT

OCEAN PORTS & CARRIERS

Food Shippers Driving a Cleaner Tomorrow

GCCA details its new Energy Excellence Recognition Program for refrigerated warehouse operators.

USGBC details how it’s time to shift from reducing harm to a more regenerative approach.

How Warehouses in GCCA Energy Excellence Program Save Big

DEPARTMENTS

Geotab emphasizes the importance of matching vehicles that run at the most fuelefficient cost per mile.

WAREHOUSING

NTEA details the benefits of depending on fleet emission and available alternatives to meet specific energy needs.

Hindsight is 2020: Being Sustainable in the Age of COVID-19

This year’s list of 3PLs, transportation providers, cold storage providers, technology companies and more are paving the way to become sustainable leaders in the global food and beverage supply chain.

Borders and Trade Remain Open Despite COVID-19

WEB EXCLUSIVES Learn. Innovate. News. Knowledge. The L.I.N.K. to Global Supply Chain Intelligence foodlogistics.com/podcasts

Food Logistics Launches Supply Chain Network Virtual Summit foodlogistics.com/scn-summit

Food Logistics Editors Stream Live on Facebook foodlogistics.com/multimedia

www.FoodLogistics.com

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

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FOR STARTERS

FROM THE EDITOR’S DESK

DETAILS

SUSTAINABILITY SAVES

SUPPLY CHAINS IN TIME OF NEED T Marina Mayer Editor-In-Chief

he concept of sustainability has been around for quite some time. However, it continues to evolve with every passing decade. And, how brands act in response to the Coronavirus disease (COVID-19) pandemic is something that will shape perceptions amongst consumers for the long-term, according to a report released by FMCG Gurus. This is because in times of uncertainty, consumers pay closer attention to the practices and policies of brands. Welcome to Food Logistics’ sustainability issue, packed with interviews discussing sustainable food chain trends and technologies (page 14), navigating the 3PL network for specialty foods (page 20) and expert columns detail- ing sustainable warehousing (page 32), sustainable ﬂeets (page 34), sustainability-focused apps (page 37) and food imports and exports (page 40). Also, check out our improved Top Green Providers award, page 24, complete with more reader-friendly charts and categories. Be sure to also check out our digital edition, which goes live online July 17, to see the interactive map. What we’ve learned from putting together this issue is that sustainable practices and policies will make or

break a supply chain in the time of need. In a Facebook Live interview with Abe Eshkenazi, chief executive ofﬁcer of The Association for Supply Chain Management, we discussed supply chain disruptions with regards to sustainability. “This is a watershed moment for organizations. I think it bears mention that the consumer is becoming much more conscious about their organizations and who they buy from, and I’d like to see organizations be more transparent about their sustainability practices,” says Eshkenazi. Furthermore, a Quantzig survey suggests that the food supply chain is one of the hardest-hit segments, and is expected to lead to acute shortages of certain product categories, including meat and poultry. What’s more is, disrupted supply chains are among the most salient impacts of the COVID-19 pandemic on the food and beverage industry, due to border closures, travel restrictions and trade embargos, according to a Mintec study. Whether it’s implementing agricultural sustainability standards, encouraging more waste reduction or initiating supply chain software optimization, sometimes it takes a pandemic to remind companies that corporate social responsibility is paramount during times of crisis.

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PRINT AND DIGITAL STAFF Group Publisher Jason DeSarle Sales Associate Brian Hines Editor-in-Chief Marina Mayer mmayer@ACBusinessMedia.com Associate Editor Brielle Jaekel bjaekel@ACBusinessMedia.com Web Editor Mackenna Moralez mmoralez@ACBusinessMedia.com Senior Production Manager Cindy Rusch crusch@ACBusinessMedia.com Art Director Willard Kill Audience Development Manager Angela Franks ADVERTISING SALES (800) 538-5544 Group Publisher Jason DeSarle (440) 476-9526, jdesarle@ACBusinessMedia.com Sales Associate Brian Hines (647) 296-5014 bhines@ACBusinessMedia.com CIRCULATION & SUBSCRIPTIONS P.O. Box 3605, Northbrook, IL 60065-3605 (877) 201-3915, Fax: (847)-291-4816 circ.FoodLogistics@omeda.com LIST RENTAL Jeff Moriarty, InfoGroup (518) 339-4511 jeff.moriarty@infogroup.com REPRINT SERVICES Brian Hines (647) 296-5014 bhines@ACBusinessMedia.com AC BUSINESS MEDIA Chief Executive Officer Barry Lovette Chief Financial Officer JoAnn Breuchel Chief Digital Officer Kris Heineman Chief Revenue Officer Amy Schwandt VP Audience Development Ronda Hughes Director of Digital Operations & IT Nick Raether Director of Digital Strategy Joel Franke Group Content Director Jon Minnick Published and copyrighted 2020 by AC Business Media. All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording, or any information storage or retrieval system, without written permission from the publisher.

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BUILT TO SUPPORT THOSE WHO SUPPORT OUR WORLD. WHEN THE NEED HA S NE VER BEEN BIG GER, FORD IS PROUD TO HELP GE T THE JOB DONE. JUST AS WE HAVE BEEN FOR OVER 100 YEARS.

Aftermarket equipment shown. Cargo and load capacity limited by weight and weight distribution.

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SUPPLY SCAN

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

IMPORTANCE OF CYBERINSURANCE TAKES ON NEW URGENCY FOR RESTAURANT OWNERS AMID COVID-19

Online grocery sales for home delivery and store pickup in April reached a new record of $5.3 billion for a 30-day period, which represents a 37% increase over March sales, according to the latest Brick Meets Click/ Symphony RetailAI Online Grocery Survey. The research is part of Brick Meets Click’s monthly monitoring of COVID-19’s impact on online grocery. This month-over-month sales growth for April was driven by a combination of factors, including a 33% increase in the total number of online orders made per month, and a 3% increase in order size from $82 to $85, as households stock up on essential products. The number of active online grocery shoppers who received a home delivery or store pickup order grew slightly more than 1% vs. the previous month, bringing the total number of U.S. households shopping online for groceries to about 40 million in April. These online shoppers placed an average of 1.6 orders for either delivery or pickup during the past 30 days compared to 1.2 orders during March. Shopper satisfaction improved only slightly during the month based on the likelihood to shop from the same-service provider again. “The ongoing shifts in spending mean that retailers will need to work carefully in applying historical sales data to forecast future sales, if they are going to be accurately aligned with shoppers,” says Kevin Sterneckert, chief marketing ofﬁcer of Symphony RetailAI. “True demand, which includes lost sales and other characteristics beyond transactions at the register, is crucially important here. Today’s retail winners will be those that best understand their customers and can meet and exceed their expectations the fastest.” Getty Images

As COVID-19 continues to disrupt normal industry operations, thousands of restaurants nationwide are pivoting to delivery or pickup-only business models, often with a heavy reliance on online orders and digital payment. Doing so also creates a host of new cybersecurity risks for these owner/operators, according to Crystal Jacobs, vice president and program director for Restaurant Guard Insurance, as less than half of restaurant owners currently carry cyberinsurance coverage. For most restaurants, a minimum premium for a cyberinsurance policy may be as little as $800 a year, providing major protections and digital expert assistance for about $67 a month. That is cheaper than most restaurants’ weekly cost for food waste. Policy costs may reflect the level of cybersecurity already in place, so establishments with strong firewalls and two-factor authentication logins may receive lower premiums than a less-prepared restaurant. “What makes a good cyberinsurance policy truly worth the investment is the response team that’s provided after a claim is filed,” says Jacobs. “It’s not simply an insurance agent going through the motions, but a full team of dedicated professionals from both the insurance provider and a digital security firm who root out hackers and breaches and help develop more secure internal processes to protect against future attacks.”

U.S. ONLINE GROCERY MOMENTUM CONTINUES DURING COVID-19 PANDEMIC

Waltham Pest Services announced a new service to help businesses quickly and effectively kill a large spectrum of pathogens to help stop the spread of viruses. UltiClean is labeled by the Environmental Protection Agency’s “List N” of products that meet the criteria for use against SaRS-CoV-2, the causal agent of COVID-19. When applied properly and at full strength by Waltham technicians, this disinfectant kills 99.99% of pathogenic bacteria, fungi and viruses on hard, non-porous surfaces and sanitizing soft, porous surfaces. “UltiClean is proven to be effective against killing other known strands of Coronavirus, such as canine and feline Coronaviruses, as well as multiple inﬂuenza strains, all with incredibly low levels of toxicity,” says Hope Bowman, technical training and quality manager for Waltham Pest Services. “Being able to use this proven product to disinfect hard surfaces and sanitize soft surfaces with almost no environmental impact or irritation to people is the best option for those businesses keeping safety at the forefront of their minds.”

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SUPPLY SCAN

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

STUDY REVEALS SHOPPERS BUYING MORE CATEGORIES FROM MORE RETAILERS

Pexels

Coresight Research’s new annual survey explores the further development of the U.S. online grocery market. This year, for the first time, the survey found that over half (52%) of all respondents bought groceries online—more than double the shopper numbers from two years ago. Furthermore, 62.5% expect to buy groceries online in the next 12 months, likely supported by demand amid the COVID-19 crisis. Amazon remains the most-shopped retailer, although the proportion of online grocery shoppers buying on Amazon.com remained flat year-over-year. However, the proportion buying from Walmart jumped by nearly 15 percentage points, to just over half of online grocery shoppers. And, shoppers purchased from an average 2.3 retailers online this year vs. 1.8 in 2019. Respondents also bought an average of five grocery categories online this year vs. 4.4 categories in last year’s survey, reflecting e-commerce’s shift from one-off product purchases to full-basket grocery trips in supermarkets.

STUDY: MAXIMUM TRUST AND TRANSPARENCY REMAIN IMPORTANT DURING COVID-19

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Pexels

How brands act in response to the COVID-19 pandemic is something that will shape perceptions amongst consumers for the long-term, according to a report released by FMCG Gurus. This is because in times of uncertainty, consumers pay closer attention to the practices and policies of brands. The implications of COVID-19 are wide ranging, with 48% of consumers believing that it is something that will impact dayto-day behavior for at least 12 months. The survey found that 76% of consumers across the globe are concerned about the Coronavirus, with these worries being wide ranging. Indeed, whilst consumers who say they are concerned are most likely to be conscious about the health of themselves (84%) and their family (79%), 56% are concerned about the economy. These are traits that consumers are particularly attentive to in times of uncertainty. This means that brands need to have the best interests of the consumer at heart. For instance, the Getty Images survey shows that 50% of consumers say they have become less brand conscious in the last month when buying food. And, the reality is that brand loyalty will continue to decline. Moreover, a total of 44% of consumers say they have developed negative perceptions toward some brands based on how they have responded to the Coronavirus crisis.

IFOODDECISIONSCIENCES ACQUIRES TRIMBLE’S HARVESTMARK BUSINESS

iFoodDecisionSciences Inc. (iFoodDS) acquired Trimble’s HarvestMark business. In 2018, the companies partnered to deliver an integrated supply chain solution for food safety, traceability and quality management. This collaboration was demonstrated in the Western Growers Food Safety Risk Management Program announced in 2019. The acquisition of HarvestMark lays a strong foundation for iFoodDS to maximize the effectiveness of a combined solution for current and potential customers. “iFoodDS and HarvestMark have a demonstrated track record of simplifying the burdensome task of collecting and documenting process control data, which is required today in the food industry. Our years of collaborating have taken our work to the next level by providing real-time visibility throughout the supply chain,” says Diane Wetherington, chief executive ofﬁcer of iFoodDS. “The decision to acquire HarvestMark is driven by our mission to further enable customers to minimize their supply chain risks and allow them to focus on the business of growing and selling food.”

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SU PP LY C H A IN N ET WO RK SUPPLY CHAIN NETWORK SUMMIT

is the premier virtual event educating logistics professionals on the critical issues impacting – and driving – the global supply chain and logistics industry

REGISTER FOR THE JUNE 30TH EVENT 10 AM CST: ONLINE GROCERY AMID COVID-19 With increase in online ordering and expansion of categories, how do supply chains evolve to meet the new needs? Deborah Weinswig, Founder and CEO of Coresight Research looks at current vulnerabilities in the supply chain and how online grocery can evolve to new consumer demand.

12 PM CST: THE VISIBLE, CONNECTED AND OPTIMALLY UTILIZED WAREHOUSE Modern warehouse operations are evolving rapidly to keep pace. Disparate labor shortages, blind spots in inventory and management of returns are common challenges. Mark Wheeler, Director of Supply Chain Solutions at Zebra Technologies, addresses these challenges and those prompted by the COVID-19 pandemic to share insights on how “systems of reality” can help prepare and protect supply chain operations from the unknown.

2 PM CST: THE IMPORTANCE OF SUPPLY CHAIN RESILIENCY Neil Coole, Director, Food and Retail Supply Chain Director at BSI Americas, discusses supply chain resiliency, including examples of best practice from business continuity to ensure that organizations throughout the supply chain can anticipate future impacts, prepare for disruptions and remain agile and responsive to future challenges.

4 PM CST: RETURNING TO WORK? HERE’S HOW TO PREP YOUR FACILITIES POST-PANDEMIC Bhrugu Pange, Managing Director of AArete, will discuss the tactical and digital requirements, safety measures, protocols, operational shifts, worker preparedness, attitudinal shifts and preparation of the physical spaces needed to help ensure worker safety in the workplace after a return from lockdown, focusing specifically on distribution warehouses, shipping centers and manufacturing plants.

TO REGISTER VISIT: www.foodlogistics.com/scn-summit

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ICE CREAM MANUFACTURER STAYS COOL ON THE GO WITH REAL-TIME TRACKER

Beyond Better Foods manufactures low-calorie, lowfat and low-sugar ice cream and snack products sold under the Enlightened brand. At any given time, 50 loads of Enlightened ice cream are in transit from the company’s headquarters in New York City to major retailers across the United States. However, Enlightened is more temperature-sensitive than standard ice cream, making temperature controls crucial for ensuring a positive customer experience. The product’s optimum temperature range is -10°F to -20°F. When temperatures rise above -10°F, the product loses its whipped ﬂufﬁness and shrinks. As a result, ice cream pints appear to be only three-quarters full. To gain greater control over product quality, Beyond Better Foods implemented Emerson Cargo Solutions’ GO Real-Time Trackers in November 2018. The units enable the company to track the location and monitor temperatures of all in-transit shipments in real time. This way, the company can get a jump on potential quality issues before products ever reach consumers. For more case studies like this, go to www.FoodLogistics. com/case-studies.

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LOGISTICS TRENDS IN OUR INDUSTRY

TRUCKER TOOLS ADDS SECURSPACE TO PLATFORM, EXPANDS OVERNIGHT PARKING RESOURCES FOR NATION’S TRUCK DRIVERS

Trucker Tools announced a strategic engagement with SecurSpace. The engagement provides the driver community on the Trucker Tools Trucker Tools mobile app with an additional resource for both overnight and longer-term truck parking, says Prasad Gollapalli, founder and chief executive of Trucker Tools. How it works is, SecurSpace enables on-demand access to industrial real estate properties with available parking, which previously was not accessible, in cities across the country. The addition of SecurSpace once again expands the depth and scope of app-based, GPSenabled parking search and reservation features.

CHEETAH RAISES $36M SERIES B TO EXPAND WHOLESALE GROCERY DELIVERY SERVICE

Cheetah closed $36 million in Series B funding led by Eclipse Ventures, with participation from ICONIQ Capital, Hanaco Ventures and Floodgate Fund. This investment brings the company’s total funding to $66 million since it was founded in 2015. Originally launched as a wholesale delivery service for restaurants and small businesses, Cheetah quickly built on its existing technology foundation the week prior to California’s shelterin-place order to launch a direct-to-consumer service called Cheetah For Me. This service gives local residents and small businesses in the Bay Area safe access to essential food and supplies at wholesale prices. Consumers simply order through the mobile app and pick up the next day.

FOURKITES INTRODUCES CONGESTION MAP TO TRACK CROSS-BORDER AND PORT DELAYS

FourKites introduced the Network Congestion Map, which tracks cross-border freight movements and provides port delays of over 230 ports globally and interstate transit metrics across North America, Mexico and Europe, allowing companies to proactively plan and optimize their supply chain operations. The map, which updates continuously, will help state governments more accurately understand the flow of goods into their region and enable them to re-route supply convoys to address product shortages. In addition, organizations will use the map to understand when port congestion overseas is clearing, allowing them to more accurately estimate how long supplies will take to reach international shores. “This is a difficult time for all of us as global citizens,” says Vivek Vaid, chief technology officer at FourKites. “FourKites’ goal is to deliver insights from our data platform to help everyone who moves goods to do so quickly across borders and through ports. Armed with this information, companies can keep close tabs on their shipments and make any necessary adjustments to keep goods moving. Now, more than ever, we all need to stand together and work as a global community.” Pexels

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FOOD ON THE MOVE

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COOL INSIGHTS

HOW WAREHOUSES IN GCCA’S ENERGY EXCELLENCE PROGRAM

W Jeffrey Greenwald manager of credentialing programs Global Cold Chain Association

Global Cold Chain Alliance launched the Energy Excellence Recognition Program to help refrigerated warehouse operators establish, maintain and enhance their “energy conservation culture.”

BIG

need for a comprehensive energy management program in cold storage facilities by providing the tools for qualitative and quantitative assessment of a company’s efforts, as well as resources to support the creation of an effective program and recognition for companies that proactively manage energy needs. To date, nearly 150 cold storage facilities participate in the program. The benefits to companies that participate include: · Identify and change energy usage behaviors. · Conduct a gap analysis to set goals and chart a course. · Improve energy efficiency. · Bank savings over time. · Access resources and templates. · Effectively communicate their sustainability efforts to customers as well as supplier’s recognition for companies that are proactively managing energy needs. These efforts to establish and

maintain a solid energy culture and strong management program reinforce design, build, workforce, automation and other facility efforts made to become more energy efficient. The two sides to energy efficiency—design, build and culture—are critical. The EERP recognizes— though doesn’t proscribe—steps cold storage operators take in making their facilities more efficient. This data is mainly captured in the EERP’s quantitative assessment to determine the percentage of improvement in energy efficiency over time. The EERP provides for three levels of recognition and allows any size facility to be awarded for their commitment to energy conservation. The Bronze award recognizes establishing and maintaining a culture around energy efficiency. Silver and Gold award levels go

Company benefits GCCA’s new EERP addresses the

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 The Energy Management Assessment is used to assess warehouse functions and guide development and process improvements to meet established energy conservation goals.

isely managing energy usage is a high priority for temperature-controlled warehouse operators. This allows them control costs, especially with energy being the second highest operating cost behind labor in the cold chain industry. However, managing energy usage also help companies meet industry demands for increased sustainability impact. Today’s food system is built upon refrigeration, and temperature control is a feature of almost every stage in the supply chain. According to the Food and Agriculture Organization of the United Nations, the food sector accounts for around 30% of the world’s total energy consumption. The International Association of Refrigerated Warehouses (IARW), a core partner of the Global Cold Chain Alliance (GCCA), established a goal to improve energy efficiency across the industry, leading the way to make the entire cold chain more environmentally sustainable. In order to achieve this goal, GCCA developed and launched the Energy Excellence Recognition Program (EERP) to help motivating refrigerated warehouse operators establish, maintain and enhance their “energy conservation culture.” Elements of that culture might include following a written energy management plan, forming an energy committee, conducting periodic energy waste reviews, reviewing energy use and benchmarking trends in energy consumption.

SAVE

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Th too pro F As wa de me con T tat wa asp clu key em op O par

a step further to benchmark actual savings in energy costs. An example of a design-build choice with a great deal of impact on energy usage is the incorporation of automation, which has been increasing year-over-year in warehouses. Automated picking and product retrieval means lessening ingress and egress into cold storage areas, which is more energy efficient. Robotics are also a design-build choice with implications for energy savings. The freezer is a worksite that lends itself to robotics because it is a difficult environment in which to work. The long-term energy savings can often support the initial cost of automation and robotics and the synergy of energy savings and reduction of workforce leads to more operational efficiencies or improvements.

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Elements of energy excellence

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The EERP employs two electronic tools in support of the awards program. First, the Energy Management Assessment (EMA) is used to assess warehouse functions and guide development and process improvements to meet established energy conservation goals. The EMA is an online qualitative self-assessment in which warehouse operators evaluate 12 aspects of energy management, including management commitment, key performance indicators (KPIs), employee engagement, monitoring, operations and documentation. Once completed, program participants will receive an Energy

Management Assessment Report, which can be used to compare the facility’s dedication to energy efficiency over time. The EMA also provides resources and next steps participants can take to improve and achieve a better score on future assessments. Second, the EERP uses the Energy Review Model (ERM), a statistical model that compares an individual cold storage facility’s electricity use to its historical electricity use to estimate efficiency increases over time. The ERM uses facility data such as current and historical weather, process throughput, facility characteristics (envelope) and other factors. The ERM is also used as a quantitative assessment and provides warehouse operators a detailed look at their year-over-year performance toward energy efficiency. Users select a baseline year by which to measure energy consumption on a monthly basis, the type of refrigerated space being used in the facility and throughput. Once this form is completed, an output report reviews annual energy usage by product throughput. The report includes a yearto-year comparison of energy savings against the baseline year showing if the facility has improved, maintained or even reduced energy efficiency over time. The ERM also reports quarter-by-quarter perfor-

mance to identify how seasonality and environmental conditions impact their facility’s efficiency. Finally, the output report includes findings on in-floor heating systems and lighting, including where upgrades or improvements may drive energy efficiency.

Sustainable benefits Refrigerated warehouses participating in the EERP are committed to long-term, sustainable control of energy costs. As sustainability becomes a cultural norm, the EERP offers a roadmap to stakeholders that the industry is putting long-term plans in place to manage the industry’s energy consumption. And, as customers become more environmentally conscious and put green initiatives in their own strategic plans, they want to partner with cold storage companies that have the same philosophy. The EERP ensures that a comprehensive program is in place with results showing customers’ facilities are serious about energy management.

Prim us Bu ilde rs

 The Energy Review Model compares an individual cold storage facility’s electricity use to their historical electricity use to estimate efficiency increases over time.

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COVER STORY MARINA MAYER

EDITOR-IN-CHIEF

How Sustainable Food Chains Thrive Amid

GLOBAL PANDEMIC While many facets of the cold chain experience hiccups during the COVID-19 crisis, vertical farms and sustainable solutions help maintain waste and energy in the supply chain.

ow brands act in response to the Coronavirus disease (COVID-19) pandemic is something that will shape perceptions amongst consumers for the long-term, according to a report released by FMCG Gurus. This is because in times of uncertainty, consumers pay closer attention to the practices and policies of brands. Enforcing a sustainable supply chain is no exception. “If we are to maintain a planet [that] is an inhabitable planet and avoid irreversible climate change, biodiversity loss and public health breakdowns, all food systems will need to adhere to the principles of sustainability, minimizing their emissions, applying the principles of the circular economy and working in harmony with nature,” says Patrick Holden, founder This and chief executive of Sustainable Food Trust. “This will mean will mean progressively progressively eliminating chemical inputs eliminating and sourcing sustainably chemical produced raw materials.” “The primary purpose inputs and of food production should sourcing not be merely to satisfy sustainably a market need, but to produced raw promote the health and the materials. vitality of the people who eat it. To achieve this, all food products must not only be safe and free of undesirable ingredients, including pesticides and harmful additives, but also processed in such a way that their nutritional integrity

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hit particularly hard by the forced is not compromised,” adds Holden. shutdown of key customers, includ“The COVID-19 pandemic has ing schools and restaurants. In fact, provided us with a vital new insight about the relationship between food quality and public health, namely that all diseases, including the Coronavirus, are an indication of an imbalance in the ecosystem, in other words, nature’s way of rebalancing an organism or population [that] is not living in equilibrium with its external environment. The Vertical Field develops smart farming avoidance of technology that integrates nature into future pandemics the urban lifestyle. or minimizing their destructive impact will best be farms are dumping supply, and yet achieved through an understandfood banks have more demand than ing that health is not merely the ever, and you see grocery stores absence of disease, but a vital state are regularly out of stock. There [that] is the consequence of the oris a surplus of food, but it is not ganism, whether it be plant, animal being matched with the demand. or person, being correctly nourWe need to rethink our fresh food ished and living in harmony with supply chain to have the ﬂexibility its external environment. Pests, and optionality to adapt to changing parasites and diseases, including demand,” says Carmela Cugini, those of a viral nature, need to be executive vice president sales, seen as nature’s way of rebalancing Bowery Farming. unstable ecosystems,” says Holden. For instance, adapting to changAnd, there is no question that the ing demand involves additional entire supply chain is impacted by planning to create food supply for COVID-19. the growing population. It requires “Traditional farming is being

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Europe, we see that they aren’t experiencing any of these supply chain issues because they have a far less consolidated food industry. Regionalizing our supply chains should be a major goal in the coming years, so we do not have to revisit these issues. And, vertical farms located within cities is an obvious part of the solution.” That’s why Kalera situates its indoor farming facilities right where the demand is. “[This] means we can supply an abundance of produce locally, eliminating the need to travel long distances when shipping perishable products,” says Malechuk. “We absolutely see this ability to ‘go local’ and reduce carbon footprints as the future for many companies.” Kalera also announced plans to open a new state-of-the-art growing facility in Atlanta in early 2021, which comes on the heels of its second farm in Orlando, Fla. “Our farms are situated right where the demand is—in cities—which means we eliminate trucking inefficiencies and thus are able to reduce our carbon footprint,” adds Malechuk. “This also helps to streamline the supply chain, something that we know is of increasing importance.” And, because transportation costs, water resources, packaging and more are just a part of a largescale distribution system, vertical farming companies like Vertical Field can situate portable urban farms anywhere. “Vertical Field’s portable urban

farms can be positioned in a parking lot or on the roof of any building or commercial site, including restaurants, grocery stores, hotels and more,” says Guy Elitzur, chief executive officer of Vertical Field. “There is no need for transportation cost, heavy machinery or any logistic cost. The produce can be grown and sold at the same location with no need to be trucked, shipped or flown from remote locations. A shorter supply chain will increase effective shelf life, especially for baby/micro greens.” Meanwhile, upcycled food companies helped to prevent at least 8 million pounds of food waste in 2019, according to a survey presented by Upcycled Food Association. “As usual, the biggest challenge is a mirror image of the greatest opportunity. As a food business, you’re in a good position to make a big impact,” says Turner Wyatt, chief executive officer of Upcycled Food Association. “It’s not just the environmental impact either. Food waste is economic loss. Simple as that. Every food business has at least a little food that goes to waste. For the sake of example,

Vertical Field

t an

companies to use indoor farming to offset the lack of arable land, Cugini says. It’s about finding new ways to limit food waste, water usage and pesticides. “I think now, more than ever, vertical farms, like Bowery, have a greater responsibility to ensure shelves are stocked and retailers are able to meet consumer demand,” she says. “Since produce is fresh supply, it is not something that can be created overnight. Couple

that with limited shelf life, and the logistics of increasing produce supply to meet the recent influx in consumer demand becomes further complicated.” Meanwhile, consolidation in the industry, especially in the U.S. meat industry, remains a hot-button issue during the pandemic. “It is one of the main reasons we’re experiencing such extreme impact on the food supply chain here in the United States,” says Daniel Malechuk, chief executive officer, Kalera. “If we look to other countries, such as countries in

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Kalera

Getty Images

 Kalera situates its indoor farming facilities right where the demand is to eliminate the need to travel long distances. JUNE 2020 | FOOD LOGISTICS

6/1/20 10:29 AM

COVER STORY BoweryOS, Bowery Farming’s proprietary software system, uses automation and machine learning to continuously monitor plants in order to give them precisely the resources they need and nothing more.

continued

let’s say it’s 10%. If an employee at your company was blatantly slacking off for 10% of his time, he would get ﬁred. If the entire workforce did the same, it would destroy the bottom line. If you wouldn’t accept 10% of your workforce going to waste, why accept 10% of your food inventory going to waste? One hundred percent of the food that comes into your business has value. Treat it that way by ﬁnding ways to upcycle the previously wasted nutrients and elevating your entire inventory to its highest and best use.”

Sustainable solutions Finding new ways to limit food waste is a big opportunity in today’s supply chains, according to Cugini. That’s why Bowery developed BoweryOS, a proprietary software system that uses automation and machine learning to continuously monitor plants and administer the right amount of resources—nothing more, and nothing less. “We’re currently utilizing our

Bowery Farming

proprietary BoweryOS technology to lean in at the request of retailers and ramp up production to help keep store shelves stocked, while minimizing food waste,” says Cuigini.

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Vertical Field developed a soilbased (geoponic) system for urban farming in any indoor or outdoor space. “The technology allows consistent product supply without seasonality constraints and with 90% less water usage,” says Elitzur. “We use an advanced LED lighting technology to provide our plants the light intensity and color they need to grow and develop. Our fast plant growth cycle provides a frequent and regular supply of agricultural produce year-long for urban environments and smart cities. This growing platform allows a complete control over moisture, sunlight and temperature. The system’s solution allows for growing the desired crops, any place in the world, regardless of climate or soil conditions.” While most indoor vertical farms use hydroponic growing systems, Vertical Field delivers a unique, geoponic vertical growing platform that is different than the hydroponic standard. “It’s a proprietary internal system that creates optimal growing conditions. Geoponic or soil-based vertical farming embraces the real soil as a natural barrier by keeping

plants in their original environment in order to create optimal growing conditions. On top of it all, the concept of using a geoponic solution supports our values of keeping plants in their original environment and utilizing natural values in our lives. We are working to fulﬁll the demand for healthy, fresh and pesticide-free products and to lower companies’ environmental footprint,” says Elitzur. Advances in lighting and automation technology also help shape the future of indoor vertical farming. Investors continue to respond enthusiastically to vertical farming, with the sector raising over $1 billion in funding since 2015, as outlined in a recent IDTechEx study. “While agriculture production currently accounts for almost a quarter of global, human-induced greenhouse gas emissions, the agriculture sector has the unique ability to be part of the climate solution,” according to the World Wildlife Fund’s website. “The Agriculture Resilience Act is an important and commendable effort to more comprehensively address the climate crisis though agricultural solutions. This bill attempts to leverage a range of programs and incentives that support win-win outcomes for producers and for nature, and sets

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COVER STORY

continued

 ArrowStream’s solutions enable customers to see inventory levels across their supply chain to consolidate freight lanes, maximize truck loads and reduce carbon output.

ArrowStream

a new level of ambition for the role transformation is being driven not of U.S. agriculture in responding to only by increasingly engaged conclimate change.” sumers, but also by retailers, food Leading Harvest’s Farmland brands and investors demanding Management Standard is said to be greater transparency and assurance the first industry-wide agricultural that farmland is being managed sussustainability standard, meaning tainably. The future of food supply producers have the opportunity chains revolves around meeting to utilize a standard in conjunction consumer demand for sustainably with other metrics, as well as apply sourced fresh food.” it across diverse Additionally, Arrowgrowing operations Stream’s supply chain Never has there technology for the and in vastly differbeen a moment foodservice industry ent regions, accordmonitors inventory ing to Kenny Fahey, in modern history levels, consolidates interim executive when consumers, freight lanes and director at Leading universally, have had maximizes truck loads Harvest. such a heightened across the supply “Never has there chain. been a moment interest in the “COVID-19 has in modern history safety of their shown the vulnerabilwhen consumers, food--from fields universally, have ity and the resolve of to market had such a heightthe U.S. foodservice supply chain plant ened interest in the closures, declining margins for safety of their food—from fields to farmers, foodservice distributors market,” he adds. “At the same time, and restaurants,” says David Maloni, a sea change is occurring across executive vice president of analytics the agricultural landscape that will for ArrowStream. “Opening the determine how farmers produce supply chain will be much harder food for generations to come. This

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than shutting it down, and the consumer will be key. Those within the U.S. foodservice supply chain who have pivoted successfully have had access to data, such as technology-driven data to bring visibility into the supply chain. This has fueled unprecedented collaboration within the various segments to adjust from burdensome inventories to shortages. And, it’s the data and collaboration driven by technology that will be crucial in bringing the foodservice supply chain back. As part of the company’s COVID-19 commitment, it released Inventory QuickStart, developed to help restaurant operators stay on top of inventory challenges and protect their brand. “Specifically, it enables operators to manage supply shortages, track product substitutions and plan for re-opening stores,” says Maloni. “Operators have instant access to data on product movement across the supply chain and configurable exception-based analysis, allowing them to see and address the issues that need immediate attention.” For its part, ORBIS’ reusable packaging not only provides reliable, efficient solutions for retail supply chains, but it can also be manufactured, used, re-used and reprocessed without

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impacting the solid waste stream. “Using ISO 14040 life-cycle assessment (LCA) methodology, ORBIS worked with Franklin Associates to create an LCA model that compares packaging solutions in three environmental areas—carbon emissions, BTUs and solid waste. This comparative model provides users environmental metrics, so that they can improve their decision-making process,” says Breanna Herbert, associate product manager and sustainability lead at ORBIS Corp. “We offer sustainability audits, where we analyze a customer’s

p. Cor BIS OR

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packaging program, compare packaging options and calculate the environmental impacts. We take into consideration the entire lifecycle of the packaging to provide an unbiased recommendation. One example includes a 3,000 plastic pallet program, converting from single-use wood pallets. With assumptions of six trips a year and 300-mile trip distance, a user could reduce solid waste up to 72%, greenhouse gas emissions by 3.2% and energy usage up to 71%.” ORBIS also looks for new and innovative materials to drive packaging performance and sustainability. “Examples include x-ray and metal-detectable pallet materials. These pallets are molded with a unique proprietary blend of detectable materials. In the instance that any piece of the pallet comes loose due to aggressive handling, it will be easily detected. This allows plants to use fully hygienic pallets throughout their internal processing facility, and when loads are off-loaded to outbound shipping pallets, they can then be sent through metal detectors for inspection,” says Herbert. “By design, reusable packaging can be fully recycled and used in other useful products at the end of its service life. ORBIS also offers a comprehensive recycling program—Recycle with ORBIS—for the efficient recovery of obsolete and surplus packaging. This enables reusable packaging products to be recovered, recycled and reprocessed into new product. When compared with one-time use or disposable packaging, the reusability and recyclability of ORBIS pallets and containers enables

significant ‘source reduction.’” Whether it’s vertical farming, waste reduction or supply chain software optimization, sustainable food chains continue to thrive amid the COVID-19 global pandemic. “COVID-19 has been a wake-up call, reminding us of the fragility of our food supply system,” says Holden. “Shorter and more transparent supply chains are better for the consumer and the producer, so we hope that these alternative routes to market will flourish in parallel with the existing supermarket trade.” The pandemic also reminds companies that corporate social responsibility is paramount during times of crisis. “Sustainability is part of that, and operating with the environment in mind makes all of us better corporate citizens,” says Bob Klimko, director of market development for ORBIS. “A crisis like this really sheds light on the supply chain, to which the consumer does not always have visibility. It gives supply chain professionals an opportunity to shine and get product from manufacturers to retail so the consumer’s basic needs are met. It truly shows how critical the supply chain is to today’s global economy. As distribution and volume spiked during the outbreak, there were countless examples of how companies stepped up and distributed and supplied needed product. Others pivoted and re-tooled to produce essential products like hand sanitizer. That type of agility is only possible with an efficient supply chain.”

 ORBIS’ 40x48 RackoCell one-piece plastic pallet is designed for hygienic use in food and beverage applications.

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3PL & REFRIGERATED LOGISTICS BY BRIELLE JAEKEL, ASSOCIATE EDITOR

PERISHABLES CREATE ADDED PRESSURE FOR 3PLS 3PLs are responsible for the safe transfer of common goods in the cold chain, but what about the luxury items that require a little more care?

3PLs even tap planes to transport gourmet products.

ll third-party logistics (3PL) companies are aware of the importance to maintain quality service standards regarding the delivery of cold chain items. When those items are considered “high-end,” the pressure is even higher. Clients’ expectations for these gourmet goods can been exceedingly strict and time is of the essence. Consumers also provide more scrutiny when it comes to purchasing these products. “The sector focuses on higher-value products and requires more extensive experience from transportation professionals,” says Brad Payne, director of corporate sales with Eagle Transportation division at Nolan Transportation Group. “The professionals generally need to have a deep understanding of the products that they are transporting, in addition to logistics expertise.” As with any industry still in operation, many trends have emerged, further changing the way they operate. 3PLs delivering high-end products are no exception, and must modernize to meet their clients’ needs. And

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now that the Coronavirus disease (COVID-19) pandemic has uprooted the supply chain, processes are even more different. For instance, the high-end and specialty food sector has been heavily hit, as most of these goods are delivered to restaurants. “The pandemic has had a very negative impact on the high-end specialty products we ship,” says Bill Johansen, president of Brown Line LLC, a Lynden Inc. company. “They frequently are destined for restaurants, and many of these restaurants have been slowed or shut down the past few months, and thus not

consuming much product. Another setback from the supply side has been the inability for some processors to staff their facilities due to concerns about COVID-19.” A decrease in consumption can lead to spoilage and much of temperature-controlled product going to waste. That’s why those that have stock in these items look for alternative ways of doing business. Take for instance, Delta Air Lines Inc., which incorporates high-end food into its ﬁrst-class and private jet operations. “As a result of these onboard changes, Delta has been left with food that would have expired before it could be served to customers, so we are providing

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more than 500,000 pounds of food to hospitals, community food banks and other organizations around the world to support people in need as well as those working tirelessly on the front lines of the COVID-19 pandemic,” says Madeline Moulton, warehouse improvement project lead of onboard service at Delta. “Our supply chain partners have been instrumental in adjusting inbound and outbound ﬂows and helping to execute these donations. “As the COVID-19 situation continues to evolve, we also recognize that our global supply chains need support for shipping essential goods to businesses and communities. Responding to Delta corporate customers who need help transporting cargo, Delta Cargo launched charter operations to provide the safe and reliable transportation of customers’ goods around the globe. We’ve also increased cargo capacity by utiliz-

ing storage areas in the passenger cabin,” adds Moulton.

Change in consumption As on-location dining has decreased during the pandemic, grocery and food retail has increased, creating a wider market for at-home specialty food. While this is good for those in the cold chain, this also means greater precautions must be in place to keep workers safe and food moving. Many organizations conduct on-site body temperature checks to ensure employees aren’t running a fever or are experiencing COVID-19 symptoms. Meanwhile, most employees at warehouses and in logistics wear personal protective equipment, and those that can, work from home. In addition, facilities undergo rigorous cleaning processes. 3PLs also heighten their engagement with clients, such is the case for Weber Logistics, Delta’s 3PL partner for high-end goods. “In regard to working with our customers and keeping their

Lynden Inc.

supply chains moving, I’d say that our customer engagement has been paramount,” says

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David Hooper, senior director of logistics at Weber Logistics. “In many cases, the normal scheduling associated with warehousing and transportation has been disrupted. We now regularly adapt to our customers’ changing needs in real-time, facilitated by regular communication between Weber and customer stakeholders. The end result is the same in that goods are moving precisely as they need to—it’s just that the path to get there has been altered in the midst of this outbreak.” When the economy is down, such as during a pandemic, there is less demand for high-end logistics, as it’s considered a luxury compared to other sectors. What’s more is, pre-pandemic, clients were already cutting down on the quantity of product and focusing on a more on-demand model. These companies no longer want to have unused product loads taking up space in a warehouse, whether they are temperature sensitive or not. For instance, Weber noticed that when it came to high-end food customers, they’re no longer looking to buy napkins and other specialty items in bulk. Instead, they want to move exactly the amount of product needed for a season and re-order when the time comes. “One of the major trends that we’re seeing is a move toward on-demand inventory,” says Hooper. “Companies are eliminating waste from their supply chains by ordering only what is needed and then exhausting that inventory before new orders of that item can be fulﬁlled. In the past, beverage napkins may have been swapped

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3PL

continued

Lynden Inc.

perishables ship in a myriad of ways.

out with the seasons as a new season called for new designs. The unused napkins from the previous season would be put in storage until the next year. Now, they’re ordering only what is anticipated for that time and will use the full supply before the next season’s napkins are distributed. This eliminates waste and prevents excess stock from taking up space in the warehouse.” Since this sector is so sensitive to demand changes, this requires constant inventory management and SKU updates on the 3PL side to help prevent waste. “Another possible pitfall is poor inventory management, as SKUs change,” adds Hooper. “Companies need to keep up with customer demands and may regularly update SKUs accordingly. It’s part of our job to make such changes as seamless as possible from a logistics perspective.” More specifically, the seafood sector provides its own set of inventory challenges, as numerous outside factors can influence harvest. “Products like seafood come with additional challenges you don’t always see in other sectors,” says Johansen. “The industry is often at the mercy of Mother Na-

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ture and not able to fully control when products will be available for harvest. Factors like variance in fish run locations and timing, bad weather and locally imposed quotas can cause volumes to fluctuate dramatically. This makes it critical for carriers to be able to adapt and react quickly. The Lynden

sy re be for can line “ ava eve “Th of sys ins by

family of companies take a multi-modal approach, especially with the Alaskan seafood market, to ensure customers have maximum flexibility in their supply chain planning. Air freight can be used for time-sensitive situations, and when time is less of a factor, our barges can economically transport products and supplies. Of course, our truck routes handle everything in between and bring products the final mile to the customer.”

Technology for the safe transport of luxury goods

Pexels

Like many other sectors for 3PLs, technologies such as satellite tracking, routing features and advanced communication systems help keep partners informed of where shipments are, as well as helps reduce transportation times. In

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Lynden Inc.

 High-end

the cold chain, and especially with high-end goods, temperature-control technologies are crucial, as they maintain the actual health of food. In the past, trucking was considered a risk for cold chain transportation. But, with the growth of technology, it is now safe and convenient to transport food on the road. Reefer units, for example, can now be controlled remotely and fitted with sensors that alert personnel when the temperature is not being maintained. There are now also dual temperature trailers that can simultaneously support the transportation of fresh and frozen foods. Also, order management systems control which orders are released into the warehouse to better serve pick-and-pack routes for various temperature zones. This can reduce travel time and streamline shipping processes. “There are better systems available to carriers today than ever before,” continues Johansen. “These include satellite tracking of the vehicles, advanced routing systems to minimize transit times, instant communication with drivers by smartphone or onboard GPS

in or en

messaging system and refrigeration unit monitoring capabilities that include the ability to transmit messages to remote locations should the refrigeration unit fail to maintain the required temperature. Carriers can remotely change temperatures on the refrigeration units, and refrigeration units today can download trip data with charts and timelines showing the product temperatures throughout the course of a trip. “Recent advances in truck technology such as automatic braking, onboard cameras and lane departure warnings all contribute to the safe operation of the carrier and help reduce accidents that put the safety of the driver and cargo at risk,’’ says Johansen. Likewise, prior to the COVID-19 outbreak, the FDA and other government organizations have created stricter guidelines to ensure the safety of consumers who could get sick from the mismanagement of food shipments. “Recently, we’ve seen growth in sectors where trucking was once considered too risky of a mode of transportation,” Johansen adds. “We’ve proven our ability to ship even the most challenging temperature-sensitive commodities by

specializing in the transportation of live seafood such as clams, oysters, mussels, sea urchins and even sharks. These commodities allow for little margin of error, as any type of failure can result in the death of the products, which is quickly apparent upon delivery. Some of these commodities could even become deadly to consumers if temperature ranges or transit times were outside of the safety requirements of the products. “We have seen an increase in safety requirements throughout the years, some of which were mandated by the federal government such as the FDA HACCP regulations and the FDA Transportation of Human and Animal Foods regulations,” adds Johansen. “For the most part, these regulations are catching up to the best practices that high-quality carriers have been doing for years.” For 3PLs managing the high-end cold chain, safety, arrival and quality service remain top priorities. Tapping into modern technologies can help, especially during a pandemic. As the world manages the economy and the health of the population, the transport of specialty goods will continue to eb and flow along with it.

 The high-end and specialty food sector has been heavily hit, as most of these goods deliver to restaurants, whose operations are shut down or reduced to takeout only.

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Lynden Inc.

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2020 TOP GREEN PROVIDERS

HINDSIGHT IS 2020: BEING SUSTAINABLE IN THE AGE OF COVID-19 BY MACKENNA MORALEZ, WEB EDITOR

sankai | E+

he Coronavirus disease (COVID-19) pandemic has shined a light on some of the biggest challenges that supply chains have been facing. In this period, where everything is changing and the industry is determining what the “New Normal” is, one thing has remained unchanged—the need to be sustainable and transparent within supply chains. It’s going to be a long road to recovery from COVID-19, though. The industry can’t rely on short-term fixes for something that is going to be a long-term problem. Sustainability practices—including environmental, economical and ethical—allow companies the opportunity to better prepare for supply chain disruptions in the future. “Sustainability is critical. Our hope is that senior executives take the long run view and build sustainability within their organizations and for the people that we impact,” Abe Eshkenazi, CEO of The Association for Supply Chain Management said during a Facebook Livestream with Food Logistics editors. “Supply chains have an impact on our economy, and they have an impact on people. We need to take a long review on sustainability. From an economic perspective, organizations need to be viable. But, from an environmental

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perspective as well as an ethical perspective, there is a host of opportunities for supply chains to do good, but there are also a lot of opportunities for us to be a responsible and an accountable industry.” One way to be accountable is to be transparent. Prior to the pandemic, transparency within the food and beverage supply chain was becoming more and more important. According to a study by Label Insight, 94% of consumers are more likely to be loyal to a brand that offers complete transparency, while 39% say they are willing to switch to a brand that is more transparent. In addition, a survey from ROI found that 78% of consumers trust transparent brands more than those that don’t offer visibility into their supply chains. Meanwhile, 86% of Millennial moms are more likely to pay more for a product that offers complete transparency. An FMCG Gurus’ COVID-19 survey also reveals Gen Z and Millennial consumers are more likely to buy from a company that shares the same values as them. Supply chains took note by making shortterm fixes for a long-term problem. Companies continue to step up their game to have a good global conscience and reduce their

Yuliia | iStock / Getty Images Plus

global carbon footprint. For example, since the pandemic, companies have begun implementing warehouse automation at an accelerated pace to maintain social distancing guidelines, but also get shipments out faster. But, sustainability is still top of mind. Oftentimes these machines are electric or battery powered, so there isn’t a need for gas emissions. “I think this is really an area where collaborations can be beneficial—bringing in sustainable and climate change officers into the c-suite and having them apply strategic decisions to the supply chain. There are trained professionals; get them engaged in the conversations in how to address these challenges,” Eshkenazi says. Welcome to Food Logistics’ annual Top Green Providers award, which recognizes third-party logistics providers, transportation providers, cold storage providers, technology companies and more, all paving the way to become sustainable leaders in the global food and beverage supply chain. This year, we revised the overall layout of the award with a new directory that better highlights what sustainable services each winner offers. Also, be sure to check out the digital edition for our new interactive map. While companies find their way to the “New Normal,” the COVID-19 pandemic spotlights the need for sustainability. And, regardless of how much the industry changes, there’s still a need to be sustainable and transparent within the supply chain.

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2020 TOP GREEN PROVIDERS Alliance Shippers

East Coast Warehouse

FACILITY DESIGN; REFRIGERATION; SOFTWARE & TECHNOLOGY; 3PL; TRANSPORTATION PROVIDER; TRANSPORTATION EQUIPMENT

ALTERNATIVE FUELS & ENERGY; FACILITY DESIGN; LIGHTING; RECLAMATION & RECYCLING PROGRAM; 3PL

alliance.com Alliance Shippers Inc. is committed to reducing negative impacts on the environment. Its CARB-compliant refrigerated trailer and container fleet is one notable example of these efforts. Wireless remote control enables temperature adjustment and the ability to turn refrigeration units on/off while in transit. Solar panels on the trailers and containers reduce dependency on fuel to charge the refrigeration unit’s battery. The effects are lower fuel consumption and reduced emissions. Beyond that, utilization of railroad intermodal services for the line-haul segments lesson the carbon footprint compared to traditional highway movement. Alliance Shippers began participating in the SmartWay Transport Partner program in 2005, was first certified in 2006, and has consistently maintained this credential since. In 2017 and 2019, the company received EPA’s Excellence Award as an industry leader in freight supply chain environmental performance and energy efficiency.

Coldtainer ALTERNATIVE FUELS, ENERGY; REFRIGERATION; TRANSPORTATION PROVIDER

coldtainerusa.com Coldtainer is the revolutionary new way to transport and store temperature-controlled products. Easy-to-use, highly-reliable and cost effective, Coldtainer units are perfect for everything from food to pharma delivery. Every Coldtainer unit is the result of an extensive design process using the latest technologies, bio-safe materials and advanced manufacturing methods. This results in Coldtainer units being energy efﬁcient and eco-friendly, delivering unparalleled performance with low energy consumption and cost of operation. This was validated in an independent university study that resulted in a 43% cost of ownership savings and a 40% CO2 reduction vs. current industry methods. All you have to do is plug it in. Recently brought to the United States by a group of refrigerated transportation experts with decades of industry and dealership experience, Coldtainer is now poised to transform the U.S. temperature-controlled delivery market.

Controlant SOFTWARE & TECHNOLOGY

controlant.com Controlant’s Cold Chain as a Service solution provides proactive farm-to-fork supply chain visibility. The company is proactive about food quality, safety and waste prevention, driving sustainability initiatives for its customers. The company’s IoT data loggers track a product’s location and environmental conditions in real-time as it moves throughout the supply chain. Data is automatically sent to a secure, cloud-enabled software platform, allowing food enterprises and their logistics providers to manage and monitor every shipment. Dashboard analytics provide business-critical information regarding the supply chain, suppliers and partners and points of interest to mitigate risks, drive continuous improvement and improve shelf life. The company’s 24/7 monitoring and response services provide proactive alert handling to facilitate corrective action and avoid product waste and increase margins.

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2020 TOP PROVIDERS

eastcoastwarehouse.com Sustainability is an important aspect of business at East Coast Warehouse. That’s why the company continues to focus on ways to reduce its environmental footprint. Its comprehensive sustainability program includes the operation of a newly expanded solar-powered warehouse that includes 4,950 high-efﬁciency solar modules and top-of-the-line inverters, which are expected to have a ﬁrst-year targeted output of 2,009,247 kWH of clean, renewable energy. In addition to solar panels, the company implemented a comprehensive recycling program, advanced motion sensing technology to help further decrease energy usage and is working toward a paperless environment through radio frequency and electronic data interchange technologies.

Jarrett RECLAMATION & RECYCLING PROGRAM; 3PL; TRANSPORTATION PROVIDER; TRANSPORTATION EQUIPMENT

gojarrett.com Since 2016, Jarrett’s Paperless Initiative has taken the company from 21% of invoices being paperless to over 93%. This initiative is integrated into the carrier onboarding process. This empowers Jarrett to identify accurate billing information faster for clients. Jarrett’s warehousing space in Ohio is operated by motion-censored lights. This saves energy by only lighting up in the section of the warehouse being utilized. At Jarrett’s maintenance and service center—Jarrett Fleet Services—aluminum and steel are scraped and recycled. A 70-foot-long sandblasting bay sustainably reclaims and re-uses metal shot to blast off paint and rust, with 80% of the metal shot being used thousands of times.

Liberty Cold FACILITY DESIGN; LIGHTING; RECLAMATION & RECYCLING PROGRAM; REFRIGERATION; 3PL; TRANSPORTATION PROVIDER

libertycold.com Liberty Cold is a 3PL provider that utilizes a WMS system that reduces and minimizes paperwork. Because the facility is centrally-located in Bolingbrook, Ill., and distributes locally throughout the Midwest, Liberty Cold’s carbon footprint is lower than some of its distributor competitors. Liberty Cold is in the process of becoming a SmartWay Partner, which requires the company to measure, benchmark, track and document efforts to increase efﬁciency and reduce fuel consumption. With all of this, Liberty Cold willingly shares knowledge, information and processes with the rest of the industry, so others can take part and see successes in their own sustainability journey.

Phoenix Logistics 3PL

phxlogistics.com Phoenix Logistics is uniquely positioned to help with all supply chain needs, including warehousing, distribution and transportation. As an afﬁliate of real estate ﬁrm Phoenix Investors of Milwaukee, Wis., Phoenix Logistics has access to a portfolio of over 30 million square foodlogistics.com

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RAISING THE BAR ON COLD STORAGE TECHNOLOGY Flexible, scalable cold storage space. Supported by the best equipment and latest technology.

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2020 TOP GREEN PROVIDERS feet of warehouse and industrial property across 23 states. Phoenix Logistics coupled an aggressive investment in WMS and related technologies with competitively priced space offered by Phoenix Investors to provide unique value to its client’s supply chain needs.

The Raymond Corporation ALTERNATIVE FUELS & ENERGY; MATERIAL HANDLING SYSTEMS, LIFT TRUCKS & RELATED EQUIMENT; SOFTWARE & TECHNOLOGY

raymondcorp.com The Raymond Corporation, a Toyota Industries company, is a leading global provider of best-in-class material handling products and intelligent intralogistics solutions. Built on principles of innovation and continuous improvement, Raymond’s integrated automation, telematics, virtual reality and advanced energy solutions provide ways to optimize operations and bring warehouse and distribution operations to a new level of performance. Raymond electric forklift trucks are engineered to achieve increased productivity and efficiency, and are designed to provide ecological and economic benefits. In partnership with Toyota Advanced Logistics Solutions, Raymond delivers solutions to material handling and logistics markets in North America and globally.

RLS Logistics 3PL

rlslogistics.com RLS Logistics routinely identifies opportunities to optimize energy-consuming equipment and systems to reduce its energy footprint long-term. Its renewable efforts are energy management programs, solar, LED and CO2 refrigeration. The company’s several green initiatives support the environment and save clients money.

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Romark Logistics 3PL

romarklogistics.com  As a pioneer in supply chain, Romark Logistics prides itself as a leader in the establishment of warehousing sustainability. The company considers “green” to be a core commitment that benefits employees, customers and the communities it serves, while striving to exceed the expectations of the food and beverage industry. Romark is committed to continually decreasing its carbon footprint in all aspects of business, and is looking to utilize cutting-edge technologies to achieve this goal. The company currently operates in the high 90 percentile for landfill-free/landfill-avoidance, aiming to have all locations as landfill- and carbon-free facilities.

PALLETS, PACKAGING, CONTAINERS

TRANSPORTATION EQUIPMENT

FOOD LOGISTICS | JUNE 2020

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foodlogistics.com

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LIGHTING

RECLAMATION & RECYCLING PROGRAM

Sustainability Promise. At Alliance Shippers Inc., we continuously work towards providing cleaner and more energy-efficient transportation services and solutions. Our 2020 Top Green Provider award underscores our steadfast commitment to a greener environment. To find out more: www.alliance.com

INTERMODAL

OVER-THE-ROAD

foodlogistics.com

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CRITICAL CAPACITY

2017+2019 EXCELLENCE AWARD WINNER

2020 TOP

CERTIFIED MEMBER SINCE 2006

TEMPERATURE CONTROL

INTERNATIONAL

WAREHOUSING

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2020 TOP GREEN PROVIDERS

CONTINUED

3PL

TRANSPORTATION PROVIDER

2020 TOP PROVIDERS

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foodlogistics.com

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

2020

FL100+ TOP SOFTWARE & TECHNOLOGY PROVIDERS Showcasing top software and technology providers supporting the global food and beverage supply chain. Nomination deadline: September 18, 2020 Winners announced in November/December 2020 issue ONLINE NOMINATIONS OPEN APPROXIMATELY TWELVE WEEKS BEFORE THE DEADLINES LISTED ABOVE. AWARD RESULTS, INFORMATION AND NOMINATIONS POSTED ON:

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

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

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SECTOR REPORTS

WAREHOUSING

STARTING A NEW CHAPTER IN

FOODSERVICE SUSTAINABILITY F

Sarah Stanley director of communications USGBC

For the foodservice industry, green warehouses & distribution centers are simply good business.

or the foodservice industry, green warehouses and distribution centers are simply good business. They can lower operating costs, support employee and community health and well-being and minimize a company’s environmental impact. While green building practices have evolved over the years, LEED (Leadership in Energy and Environmental Design) remains the most widely used green building rating system in the world. LEED has defined what it means to be a green warehouse or distribution center, and now lays the foundation for what comes next. Globally, there are more than 1,300 LEED-certified warehouses and distribution centers with more than 870 of those located in the

United States. LEED is a roadmap for how new or existing structures, as well as interior spaces can be designed, constructed and operated to promote sustainability. The rating system provides a comprehensive approach with tailored guidance for warehouses and distribution centers. It considers a variety of factors, including energy, water and waste, as well as location and transportation, materials and resources and indoor environmental quality. The result of pursuing certification through LEED is a healthy, highly efficient and cost-saving green building. LEED has been used across the foodservice industry since the early 2000s and is a trusted sustainability tool for many

companies, including Mars Food, Lidl, Conagra Brands and more. It’s served as a reliable framework for the sector to standardize sustainable design and operations across a portfolio. It’s been particularly effective in helping these spaces reduce energy use through lighting efficiency. For spaces that aren’t refrigerated, lighting is often the main energy use. As consumers become more interested in supply chain sustainability and the content and production of their products, green building becomes a relevant way to demonstrate a commitment to healthy and sustainable practices. In 2014, McDonald’s food supplier Golden State Foods used LEED to demonstrate its commitment to sustainability when it constructed a new distribution center in McCook, Ill. The structure achieved LEED Gold by implementing a number of green building strategies that helped reduce its impact on the environment and support the surrounding community. During construction, Golden States Foods recycled or re-used 87% of waste and didn’t remove any soil from the

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site. To help reduce water use, it installed a 40,000-gallon cistern on the roof to collect rainwater to irrigate the facility’s landscape. To help reduce emissions, the refrigeration and freezer are cooled using an energy-efficient ammonia CO2 cascade refrigeration system that uses non-ozone-damaging chemicals containing zero CFCs. To support workers on-site, a variable air ventilation system helps improve air quality and 65% recyclable carpeting and noise-deafening ceiling tiles to reduce air contaminants and improve comfort. In 2019, more than 155 warehouses and distribution centers became LEED-certified, and by the end of the first quarter of 2020, another 35 joined the ranks. As the industry becomes more aware of the benefits of green building, not only have the number of companies adopting LEED increased, but the rating system has also evolved to continue pushing the market toward practices that benefit the triple bottom line of people, planet and profit. The current version—LEED v4.1—continues that tradition while bringing greater awareness to human health and well-being. In addition, LEED v4.1 encourages teams to focus on performance data in an effort to help make more informed decisions and better manage what they’re measuring. In the 20 years since LEED launched, it’s transformed global building practices. Many of the strategies once considered new, such as low VOC paints, LED lighting systems, green roofs and more, are now practices more companies expect to see incorporated into building design and construction. As a holistic green building rating system, LEED remains the leadership standard, but the U.S. Green Building Council (USGBC) has also looked at opportunities to encourage new kinds of green building leadership.

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In 2018, the organization announced LEED Zero, a new net zero certification for LEED buildings. The program recognizes the achievement of net zero carbon, energy, water or waste, and to date, more than 20 projects are participating. The first foodservice project was certified in Brazil—a Coca Cola warehouse—achieving LEED Zero for Energy, which recognizes a space for reaching a source energy use balance of zero over a 12-month period. The interest in net zero buildings has been growing and will continue to be an important goal for transitioning the industry to be more sustainable. When considering where the biggest green building opportunities lie, existing buildings top the list. Recognizing that not all existing facilities might be ready to pursue LEED, USGBC created a pathway to certification through Arc to recognize incremental improvement. Arc is a free online performance platform that helps buildings and building portfolios track sustainability performance across energy, water, waste, transportation and occupant experience. Non-LEED projects can benchmark performance, monitor progress to see how decisions impact sustainability and take steps that get them closer to certification. Arc provides category level certificates that recognize performance improvements made in each of the five categories. When a project has been recognized in all five categories, it is ready for LEED certification. The ability to make ware-

houses and distribution centers more sustainable depends on all buildings taking steps to improve performance. LEED provides a holistic framework for how to get there, but USGBC is also focused on writing the next chapter. In November 2019, USGBC introduced LEED Positive, a roadmap for a future of LEED that is regenerative. The intent is to lay the foundation for how the rating system will transition away from strategies that simply reduce harm to those that cause no harm and begin the process of healing and repair. USGBC leaders are working on next steps and how that journey will begin. This work is part of USGBC’s belief that better buildings equal better lives. The foodservice industry has an important role to play in improving the quality of life for all, and LEED continues to be a tool leveraged to demonstrate progress and improvement.

Liberty Property Trust Tasty Baking Co. in Philadelphia, achieved LEED Silver. The 345,000-squarefoot manufacturing facility includes production, warehousing and distribution space.

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TRANSPORTATION

FOOD SHIPPERS

DRIVING

A CLEANER TOMORROW

A Stephanie Lowney director of marketing and innovation U.S. Gain

Alternative fuel is an excellent strategy to improve transportationrelated environmental position and economic performance.

 As emerging fuels like hydrogen and electric continue down their development paths, they too will likely factor into the future fuel strategy.

s prioritization of environmental sustainability intensifies across the globe, more and more companies turn to transportation for emission reductions. A shift to alternative fuel within insourced or outsourced fleet can provide environmental benefits needed to maintain your company’s sustainability plan.

Make sustainability the differentiator The number of organizations reporting sustainability progress is rapidly increasing. In 2018 alone, 86% of S&P 500 Index companies published sustainability or corporate social responsibility reports. Couple this statistic with the more than 60% of consumers that expect businesses to care about improving air quality, according to Nielsen, and suddenly sustainability becomes a strategic business initiative. But, how does this impact logistics? For the third consecutive year, transportation is the highest emitter of greenhouse gases and subsequently unhealthy air quality for more than four in 10 Americans, according to the American Lung Association. Your fleet can positively impact this statistic, through use of alternative fuel. For example, use your fleet or

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outsourced logistics to strengthen your company’s environmental performance and quality of life for communities that need it most. Utilizing solutions that positively impact issues your customers care about will ultimately strengthen brand image and customer loyalty. And, as transportation continues to be a target for emission reductions, alternative fuel will become the competitive differentiator.

Don’t break the bank It’s hard to dispute the environmental benefits of alternative fuel, but consider the economic benefits. Governments across the nation have deployed a variety of strategies to lessen pollution from transportation and improve air quality for the communities they represent. For your fleet, this translates to economic incentives for adoption of alternative fuel. Consider renewable natural gas, a drop-in alternative fuel for natural gas vehicles. Your fleet can obtain extremely low fuel pricing thanks to government programs like these. Additionally, companies using alternative fuels such as renewable natural gas can avoid tax penalties placed on high-carbon fuels like diesel and qualify for a per-gallon tax credit. Grant funding is another option for those considering new vehicle purchases or fueling infrastructure builds. Many states offer grant funding programs to minimize investment in alternative

fuel assets to ease adoption. Be sure to work with an alternative fuel provider to understand eligibility of current and upcoming grant programs.

The future with alternative fuel Many alternative fuels exist with proven success across varied market applications. And, more fuels are coming, which begs the question, which alternative fuel is right for you? Currently, the ideal alternative fuel solution for heavy-duty transportation is that of renewable natural gas. Leading trucking fleets using natural gas today are winning. From an environmental perspective, renewable natural gas features the lowest lifecycle emissions, improving air quality where the fuel is produced and used. Further, vehicle technology is available, recently upgraded with proven performance. Fueling infrastructure is widely established and accessible. And, renewable natural gas is at the center of environmental credits, especially for fleets with operations in California and Oregon. Renewable natural gas will provide the environmental savings needed to achieve a sustainable footprint. As emerging fuels like hydrogen and electric continue down their development paths, they too will likely factor into the future fuel strategy. Go to https://foodlogistics. com/21132704 to read the rest of this column.

U.S. Gain

SECTOR REPORTS

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SECTOR REPORTS

TRANSPORTATION

VEHICLE CRITERIA &

GREENHOUSE GAS EMISSIONS REDUCTION Renewable CNG, renewable diesel, ethanol and biodiesel fuels each represents a viable retrofit strategy for most fleets.

Christopher Lyon director, ﬂeet relations NTEA – The Association for the Work Truck Industry

n fleet terms, sustainability might refer to moving your fuel type to renewable energy and reducing your criteria and greenhouse gas emissions profile. As such, most fleet operators strive for a balance of both approaches, depending on fleet mission and available alternatives that meet their specific needs. Companies transitioning to effective sustainability solutions have significant challenges, typically including fleet replacement planning and how to address a legacy machinery. Each can have different solutions while focusing on improved sustainability as an outcome. Replacement vehicle challenges involve selecting the best fit for an application among the alternatives. On the other hand, dealing with improvements to legacy fleet represents a different issue. Many of the best technologies are expensive and hard to retrofit, even when possible. In some cases, a retrofit investment will meet or exceed the vehicle’s value at its current age. The choice challenge is difficult simply due to the wide variety of available products. There’s fascinating growth in the number of products fueled by electric energy, such as battery electric, hybrid electric, plug-in hybrid electric and

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fuel cell vehicles. Beyond electric solutions, compressed natural gas (CNG), propane and liquiﬁed natural gas (LNG) also offer reduced engine emissions compared to traditional petroleum options. In addition to changing engine technologies, viable solutions for meeting sustainability goals should include renewable fuels.

Know the options By knowing your options and planning carefully, you can map future acquisitions with a focus on reduced emissions and/or renewable fuel products. Many specialized vocational trucks are extremely complex and expensive, with a longer lifecycle than standard or off-the-lot vehicles. This will, in most cases, require acquisition/support infrastructure like specialized re-fueling stations, or for electric options, recharging infrastructure. Infrastructure can be challenging on its own, whether it’s the cost to install your own re-fueling site or use local public access stations. For example, a predominately warm region may not have the same gas pipelines installed for CNG as colder locations (a result of using the same fuel for home heating). Although building a sustainable legacy ﬂeet may not draw as much attention as the latest emerging

technologies, it can positively inﬂuence the budget, as these solutions can sharply reduce the cost to move ﬂeet to improved sustainability. Case in point: Sustainability can be as simple as doing the same amount of work while consuming less resources.

Monitor driver behavior It’s important to know how fuel is being used to ensure the best fit for any fleet application. There are several identifiable drive patterns and cycles, but the most common include: • Highway operations — high mileage, high speed. • Inner city urban operations — low mileage, low speed. • Stop and go — pickup and delivery operations. • Work support — high idle with power export. In addition, look carefully at the need for driver training. Hard acceleration and high-speed operations burn excessive amounts of fuel regardless of vehicle category. Driver behavior can be addressed through accurate monitoring and focused training. A one-size-fits-all approach should be avoided. For example, a farmer will have a different driving profile than a distributor delivering to a retailer.

Financial impact Evolving to sustainability is not an inexpensive task. Every solution has a financial implication, and the smartest fleet operators often blend a series of solutions to optimize sustainability improvements while minimizing financial impact.

Replacements, retrofits and funding Examine your entire fleet to account for replacement options and retrofitting solutions because being sustainable and funding the mission can be difficult. Go to https://foodlogistics.com/21133079 to read the rest of this column.

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SECTOR REPORTS

TRANSPORTATION

HOW COVID-19 MAY BE A CATALYST IN ENSURING

Consider the environmental impact from changes in the trucking industry alone. A 2018 report from the American Transportation Research Institute (ATRI) revealed that the trucking industry experienced nearly 1.2 billion hours of delay in 2016 due to traffic congestion— the equivalent of 425,533 commercial truck drivers idling in gridlock for an entire working year at a cost of $74.5 billion. During the NACFE Run-OnLess campaign, participating truck fleets improved fuel consumption to make trips less expensive to run while reducing CO2 per trip. Since then, fleet operators have increasingly deployed and relied on telematics and emerging new tools to provide insight that lead to better decision making and greater efficiency. U.S. cities, municipalities and states were transitioning to electric fleets well before the COVID-19 pandemic to help reduce emissions and cost. In September 2019, the Colorado’s Division of Capital Assets announced plans to roll out a fully integrated, best-in-class electric vehicle fleet management solution to accelerate the state’s transition to clean energy and support its Electric Vehicle Plan. To date, as part of the Governor’s Greening Initiative, the Colorado State Fleet has implemented several projects, such as idle reduction measures, electric vehicle stations and the Motor Pool program, which displaced the equivalent of more than 275,000 gallons of gasoline and

W Calon Sutherland executive vice president sales and marketing Geotab

Consider the environmental impact from changes in the trucking industry alone as a result of COVID-19.

 Fleet operators have been increasingly deploying and relying on telematics and emerging tools to provide insight that lead to better decision making and greater efficiency.

hen the Coronavirus disease (COVID-19) pandemic hit the United States, many businesses shut down or transitioned to remote workforces. Meanwhile, traffic congestion in large urban centers expierenced an unexpected pause. Still, driving through this pandemic were the many fleets who worked overtime to ensure consumers had access to life’s essentials. But, after several weeks, some silver linings are starting to shine through. For instance, a Geotab analysis found that as soon as the lockdowns began across North America, there was a drastic reduction in CO2 emissions, down 40% for some cities, with New York seeing the largest reduction by 62%. While vehicles will take to the roads once self-isolation orders lift, the inevitable return to regular business activity could prove to be a pivotal moment for fleets to re-evaluate their carbon emission reduction strategies. For example, studies show how rising carbon dioxide levels create unstable and extreme weather patterns that will continue to threaten communities and food supplies. Imagine though, if the reduction of CO2 emissions didn’t end with COVID-19. Even a massive shift to fuel-efficient driving techniques could help keep CO2 emissions low while helping to reduce fuel costs.

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Geotab

FOOD SUPPLIES, CLEAN AIR & MORE RESILIENT COMMUNITIES

reduced more than 1,650 tons of greenhouse gas emissions in 2018 alone. California, which introduced several green initiatives targeted at improving fleet operations and reducing harmful environmental impact, also implemented a telematics solution as part of its goal to promote reliable, environmentally responsible and cost-effective state, municipal and county fleets. By giving regional governments unprecedented access to a leading-edge computing and analytics platform, the state will have the ability to put connected-vehicle data to use within a myriad of smart city and smart state initiatives. New Jersey also passed a law in January that aims to have 330,000 electric cars on state roads by the end of 2025. Even universities are shifting gears, with University of Georgia owning one of the largest fleets in the United States. There is no denying the Coronavirus has forced companies to re-think and re-evaluate how to operate in the current environment and find a new path forward toward sustainability. Now, realizing the critical role of transportation, we have a better understanding of the risks, as well as the tools to mitigate them. Matching the vehicles that run at the most fuel-efficient cost per mile means we may be able to enjoy blue skies long after COVID-19 is behind us.

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SECTOR REPORTS

SOFTWARE & TECHNOLOGY

WHAT APPS ARE COLD CHAIN PROVIDERS USING IN

2020? Software from Paragon Software Group helps to improve delivery communication.

isibility has become a key word in the food chain, as partners seek more convenience in shipping and greater knowledge of where their product is and where it came from. In addition to this, faster and safer delivery is paramount. In 2020, digitization has become apparent, and applications help make jobs easier and operations more intelligent. Right now, app investment is almost more important than ever. Logistics partners look to invest in technology to optimize their business, and those that have not adapted are already falling behind. The growth of faster home delivery demands in addition to the effects of the novel Coronavirus (COVID-19) have only compounded this. “It is so important now more than ever for logistics companies to invest in mobile apps and software that will sustain and empower their business through the COVID-19 pandemic and onward,” says David Giannetto, chief executive ofﬁcer of WorkWave. “Consumers are increasingly looking for fast, contactless ways to receive not

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only essentials like groceries and household items, but also other items like restaurant delivery, clothing, books, etc. Many logistics companies saw an inﬂux in demand during the quarantine period, and we do not expect this demand to subside anytime soon, even after the quarantine ends.”

Types of tech Proof-of-delivery apps are important in the cold chain world, as they eliminate cumbersome paperwork processes and offer robust data. These apps are similar to and often integrated with features that allow partners to track drivers’ speciﬁc locations. Partners receiving these shipments are prepared by knowing the exact timing, and customers can feel safe knowing where their products are in real time. This is true for both business-to-business and business-to-consumer operations. With so many unknowns on the road, this

Paragon Software Group

Software and mobile apps are modernizing the cold chain sector and growing visibility for shipments.

BY BRIELLE JAEKEL, ASSOCIATE EDITOR

type of technology can make a big difference. “Food distributors and retailers need to be far more agile than they were in the past, responding to changes in customer demand quickly, without incurring prohibitive costs,” says David Shaw, strategic partnerships manager at Paragon Software Systems, an Aptean Company. “It’s not just COVID-19 that’s driving rapid, constant change to

delivery requirements. Add weather events, outbreaks of foodborne illnesses and other trends to the sudden uptick in home deliveries we’ve experienced this spring, and you have a volatile marketplace. Route optimization technology is responding accordingly. “For example, Aptean’s electronic proof-of-delivery app—Paragon ﬂeXipod—which is well-suited to handle the huge recent increase in food home deliveries, has a ‘Track My Driver’ function that allows the end-customer [to] see a delivery driver’s location in real time. Consumers getting groceries delivered expect more transparency than they get with an Amazon package; this allows them to get the same visibility as with an Uber car service. We’re also constantly improving the amount of information retailer and wholesaler end-customers receive about upcoming deliveries, so they can plan their own activities, such as stocking shelves, or picking and packing orders more effectively,” adds Shaw. Some apps focus on route planning and optimization, which grants companies the ability to set various parameters such as weight limits, duration and shift patterns, allowing the software to think intelligently about mapping. This type of software often looks at both the route with the fastest time in addition to what would be the optimal customer experience. “Route planning is a term that can be interchangeable with route mapping and route sequencing, yet route optimization takes routing to the next level,” continues Giannetto. “Route optimization allows a company to set up different parameters that cause the software to think about routing the same way management thinks about routing,

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 New apps in the supply chain are helpful to the industry.

making sure that through optimization not only do they gain efficiency, but also still give customers the experience that management wants. Companies can set parameters for just about everything, including vehicle weight limits, drive time and shift patterns (things that all factor into the optimization question), and also allow it to balance speed of delivery vs. overall efficiency. All of these elements of your everyday workflow are factored in to instantaneously optimize routes to achieve your goals.” Various forms of scanning are also growing in importance for mobile apps, especially during a pandemic when companies are required to limit physical interaction between individuals. For instance, there are a variety of new technologies that allow logistics partners to scan packages ensuring drop-off

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or pickup completion. As shipping partners see higher delivery volumes, this helps grow visibility. Mobile apps pave the way for an easier scanning process, as many workers can use smartphone and tablet devices to scan. “Apps such as Vector’s touchless freight document scanner are helping Marek Levak from Pexels to reduce errors in shipping and receiving as well as make the driver’s job Technological less stressful,” says Brian Belcher, stumbles COO and co-founder of Vector. As technology grows and “The app will run on any smartbecomes more embedded in the phone or tablet and can be set up in supply chain process, along with minutes. Data is easily retrieved at it comes growing pains. Since a fleet’s office using APIs/plug-ins many companies operate on with existing freight management different platforms, there can be software.” miscommunication and missed data. There is also often a learning

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cur on alw I for sof som eve the wh

curve with new apps, which means on ﬁrst launch, the outcome is not always successful. It is also extremely important for companies to choose the best software for their operations, as some apps may not be as useful for everyone. Managers should avoid the “shiny object” syndrome in which they jump on board a popular

technology without weighing how it will actually ﬁt into and improve a business’ operations. “Sometimes new apps might not deliver the feature and functionality needed to be successful, especially ones that have less dynamic routing abilities and do not provide important features that allow for increased customer communication, employee communication and vehicle tracking,” adds Giannetto. “It is important to look for apps that are extensions of personalized routing software that takes into consideration small, but important details.” However, some technology providers note that it is easier now to launch a new app within a food logistics company than in previous years.

“It’s a lot easier to implement new technology than it used to be,” continues Shaw. “At Paragon, an Aptean company, we focus on making implementation fast and easy, industry-speciﬁc, closely supported and in stages if need be. Any new app is going to involve a learning period, and possibly some disruption to business processes. But, with the kind of disruptions going on in the food industry right now, the need for sophisticated logistics technology that can be up and running within two business weeks, gets more urgent every day. Therefore, the real pitfall is in failing to take advantage of the incredible range of capabilities out there.” Go to https://foodlogistics. com/21132827 to learn more about out how grocery delivery will impact the industry post-pandemic.

Are you prepared for post-COVID supply chain changes?

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Use real-time environmental monitoring

Gain end-to-end supply chain visibility

Build key partnerships

Develop contingency plans

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JUNE 2020 | FOOD LOGISTICS

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SECTOR REPORTS

OCEAN PORTS & CARRIERS

BORDERS

TRADE REMAIN OPEN DESPITE COVID-19

John Hollay senior director, government relations United Fresh Produce Association

COVID-19’s impact on the fresh produce industry has been catastrophic.

he Coronavirus disease (COVID-19) pandemic has changed the face of our nation and the world. The comforts and culture we took for granted as a country have forever changed. No longer do we have the luxury of grocery shopping on a whim, picking something up on our way home from work (now that we work from home) or planning celebratory dinner occasions outside of the home. And, we’ve taken on the role of private chef, home economist and other duties as assigned. But, what does this New Normal mean for the short- and long-term health of our vertically integrated supply chain? How will the businesses along the fresh produce supply chain, charged with the burden of feeding families here in the United States and those around the world, continue to meet their calling? The impact on the fresh produce industry has been catastrophic. Demand from consumers for fresh produce still remains high, and continues to see growth. But, over the course of 48 hours in March, the demand put an unpredicted strain on the produce supply chain.

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The nation’s economy shuttered, and distribution networks—hit particularly hard—with business models designed to provide fresh produce to schools, restaurants and hospitality are suddenly finding themselves without customers. Traditional avenues where consumers accessed a significant amount of their daily produce intake vanished, with reports of fresh produce being plowed under in fields across the nation. It defies logic, but it is the current state of reality across the fresh produce supply chain. That’s why United Fresh Produce Association and its members work to address these challenges. The development of programs from USDA’s Agricultural Marketing Service and others will help alleviate some of the hardships produce supply chains have endured, but it’s just a start. The impact of the pandemic has not just rattled the domestic food supply chain, but has implications around the globe for import and export markets that were already under tremendous strain due to an environment of trade, labor and food safety challenges. The pandemic factor is compounded through the lens of international trade and the rules and regulations that govern business throughout the globe. It seems that with each silver lining, there’s still a storm brewing below. The reduction in commuter traffic and unessential travel has

reduced delays that often plagued international food trade at the borders. However, a decline in economic activity may also provide a path to reforms needed in the system. “The U.S.-Mexico border remains open and unimpeded for commercial traffic, and many produce companies in Texas are reporting shorter crossing times for trucks hauling fresh produce across the bridges due to lighter passenger traffic,” says Dante Galeazzi, president of the Texas International Produce Association. “Customs and border protection staffing remains at pre-pandemic levels for our area, and we’ve been engaging constantly with the federal partners at the border to ensure continued communication during these tumultuous times.” Communication with federal partners at the border is also critical to maintaining import traffic. The same channels of communication facilitating the movement of food products also allow for a streamlined system of workers who participate in the H-2A visa program for agriculture to continue to work efficiently and travel without concern. Ensuring that borders remain open to support both the import and export of food and also for those employed to harvest, pack and process these products is key to the nation’s food supply and economy in these uncertain times. Imports have suffered during the recent months. Compounded with a reconfigured supply chain, this drop is not unexpected. “Import volume unfortunately is experiencing a

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slight down-tick. Weather events in Mexico have impacted availability early in the year (February fresh produce imports from Mexico were down 4.1% vs. the year prior), but as the pandemic and shelter-in-place orders began to take hold in the U.S., we saw a continued decrease in imports through March, down 1.6% from the previous year. April will likely experience further decrease, as retail sales leveled and foodservice channels in the U.S. ceased during the nationwide shutdown,” adds Galeazzi. Trade agreements prior to the pandemic were top of mind for United Fresh’s administration, and most had been renegotiated. The good news is that the United States and Mexico are in agreement that the stream of food imports and exports is essential and

should be maintained as such. Food coming in through the southern border is happening efﬁciently despite disruption. Fresh produce leaving the United States, however, faces different challenges. The impact has not been as substantial with regards to the pandemic, but lingering issues with trading partners prior to the crisis persist, such as access to shipping containers for transport out of the country. Throughout the crisis, United Fresh and others have worked closely with agricultural partners to secure more freight capacity for exports. While more work is needed to repair the supply chain, the speed at which the industry was able to identify new challenges and work collectively to address them is a testament to the supply chain’s resilience.

FRESH FRUITS & VEGETABLES EXPERIENCE STEADY INCREASE IN IMPORTS More than half of the fresh fruit and almost one-third of the fresh vegetables consumed by the United States are imported, according to a study released by Greenyard. And, in 2017, roughly 90% of total value of fresh fruit and vegetable imports came from six countries. However, those numbers continue to rise, as the demand for fresh produce continues to increase. As per the U.S. Census Bureau, the United States imported $29 billion in fruits and vegetables in 2019. Value-wise, Texas is the main door of fruits and vegetables, importing up to 32% of the total value. And, of that value, twothirds are fruits and one-third are vegetables. California ranks second in imports at $5.4 billion, with 70% mostly fruit. With a very slight difference comes Pennsylvania and Arizona, with Pennsylvania importing more fruits while Arizona imports two-thirds vegetables and one-third fruits.

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& SF

T S :

BEST PRACTICES

to Improve In-Store Picking for

E-COMMERCE FULFILLMENT S Justin Ritter director of project engineering Lucas Systems

To improve picking efficiency in stores, grocery retailers should borrow best practices and technologies already proven in distribution centers and e-commerce fulfillment centers.

Grocers will need to rely on software to direct workers, coordinate the different processes and track items and orders as they are picked and packed.

urging demand for grocery delivery and pickup has resulted in widespread delays and exposed the shortcomings of manual picking processes for in-store fulﬁllment. Here are some best practices grocery retailers can apply today to improve their store-based picking operations and make the most of the e-commerce grocery opportunity for tomorrow.

Grocers struggle to fill surging online orders Online U.S. grocery sales more than doubled in March, as consumers sought to avoid crowded stores amid panic buying in the early stages of the Coronavirus disease (COVID-19). Many grocery retailers and delivery services strained to keep up with the jump in online demand, with extended wait times for delivery and pick-up. The online order surge has exposed the limitations of in-store picking processes. Automation alone will not solve the problem, as manual picking will predominate in many grocery stores for years to come. Even retailers investing in highly automated micro-fulﬁllment centers will rely on manual picking processes for surge capacity and serve customers in markets where automated systems are not cost-justiﬁed. To improve picking

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efﬁciency in stores, grocery retailers should borrow picking best practices and technologies that are already proven in distribution centers and e-commerce fulﬁllment center operations.

Grocery stores are designed for customers, not pickers In-store picking is analogous to picking products in a distribution center, but the store environment itself creates a different sort of optimization problem. The average grocery store is less than one-tenth the size of an average grocery distribution center (40,000 square feet vs. 400,000-plus square feet), leaving many stores constrained for space. In addition, store layouts and product positioning are based on maximizing sales rather than minimizing travel per shopping trip (as is the case in a distribution center). Nevertheless, grocers can improve the efﬁciency and throughput of their in-store processes by borrow-

ing work execution best practices from their distribution centers. The following process improvement ideas would apply equally to dark stores (for e-commerce-only orders) and stores serving e-commerce and in-person shoppers.

Improving in-store fulfillment 1. Order batching. Instead of picking one order at a time for every trip through a store, many grocers are already creating batches of two or more customer orders that a store associate can pick on a single trip through the store. The benefits are clear—rather than making four trips to pick four orders, a single person with a large cart segmented to hold four orders can make one trip, drastically reducing travel time. In the context of a distribution center, order batching systems may use advanced optimization logic to maximize cart fill rates (the percentage of cart capacity that is used) and/ or to minimize travel time per cart. Similar technology can be used in stores. 2. Variable cart configurations. Online grocery orders vary widely in the number of items, weight and volume per order. Some orders may be so large that you could only fit 1-2 orders on a cart while other orders may be so small that you could create batches of 5-10 orders. Many distribution centers account for these order differences by Lucas Systems

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using a variety of order picking cart conﬁgurations—a large order cart or small order cart—and in some cases, use software to build cart assignments that combine big and small orders together. 3. Two-stage picking. Two-stage picking is typically used in a warehouse or distribution center to improve the productivity of picking slow-moving items (i.e., products that are ordered once or twice a day or less, and are stored in a separate area). In essence, all of the slow movers are picked at once in a larger batch. In the grocery context, twostage picking can address a different kind of challenge. We often see stressed personal shoppers waiting in line with regular shoppers to pick up deli, meat and seafood orders. With a two-stage process, each of the specialty items can be assembled in adva nce of the rest of an order (pre-picked, so to speak). The assembled specialty orders can be set aside in a location where personal shoppers can pick up the items for their orders on their main trip through the store. 4. Zone-based picking. Along the lines of two-stage picking, zone picking involves separating each area of the store or distribution center into a separate zone and splitting orders across the areas. In the grocery store context, this allows managers to assign more experienced or capable pickers in those areas where additional expertise is needed—produce, for example. This is also a useful strategy for increasing pick density in areas where the number of items per order is especially low compared to the

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number of SKUs. In those areas, you may pick all items for 10-20 orders at one time. Zone picking requires designated staging locations for completed orders from each zone, as well as well-defined processes for merging items picked in the different zones into a finished order. 5. Order assembly and quality control. There are a number of proven methods for merging and assembling orders in the distribution center that apply to store-based fulfillment. In two-stage picking, pre-picked items can be picked up as part of the main picking sequence. In other situations, items from one area may be “put-to-order,” while others may be picked from staging locations (designated coolers or freezers) as part of the final order assembly process. Finally, order assembly can also be used as a final quality control point. Having different personnel pick and check orders improves accountability.

Tie process innovations together with software Grocers will need to rely on software to direct workers, coordinate the different processes and track items and orders as they are picked and packed. Similar to work execution software used in distribution centers, grocery stores will need store-based execution systems to: · Create optimized “batches” of work to maximize picking efﬁciency across varying order sizes, while ensuring orders are picked, packed and ready on time; · Automatically split orders by zone

and manage the assembly and merging of orders after picking; · Schedule and coordinate twostage picking, so that pre-picked specialty items are ready when needed without interfering with orders for walk-up customers; · Efficiently direct and confirm the activities of personal shoppers via intuitive, easy-to-follow mobile applications; · Give supervisors and managers real-time visibility to order status across areas, employee performance and alerts when items are out of stock or experience delays. The good news is that distribution centers have been using this sort of work execution software for years. And, the software relies on the same underlying technologies that stores already adopted, including cloudbased software systems, in-store WiFi and user-friendly Android mobile computers and scanners. COVID-19 may be the tipping point for e-commerce in grocery, permanently changing consumer behavior and shopping habits. In that case, grocers have less time than ever to develop efficient, effective fulfillment capabilities. Automation will be a part of the long-term solution, but manual picking processes will pre-dominate in the short term. To make the most of the e-commerce opportunity, grocery retailers will need to adopt in-store process and technology innovations similar to those already used to pick orders in grocery distribution centers and e-commerce fulfillment centers.

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