Food Logistics July 2021 by Supply+Demand Chain/Food Logistics

AUTONOMOUS TRUCKING

OFFSHORING

SUPPLIER SOURCING

THE RESTAURANT

RENAISSANCE One year after the U.S. foodservice industry faced months-long lockdowns, the restaurant revival is in full effect.

Issue No. 226 July 2021

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ON THE MENU

July 2021 ISSUE NO. 226 COLUMNS FOR STARTERS

04 How Indoor Dining is Making

its Comeback

Editor-in-chief Marina Mayer explains how an industry so plagued by COVID-19 is coming back to life in a bigger, better way.

DEPARTMENTS COVER STORY

06 Field To Fork

The Restaurant Renaissance

12 Food on the Move

The cold food industry joined forces in a time of crisis to continue pushing food through the chain. Now, one year later, the restaurant revival is in full effect.

42 Ad Index www.FoodLogistics.com

3PL / COLD CHAIN

WAREHOUSING

TRANSPORTATION

Driverless Trucks Come to Third-Party Logistics

Design Strategies for Elevating Grocery Practices

Top 5 Offshoring Trends in Transportation

Autonomous technology is now a reality. Here’s how the 3PL sector is taking advantage of driverless trucks.

Lowney Architecture says grocery stores are re-thinking their physical stores, and here’s why.

SOFTWARE & TECHNOLOGY

PACKAGING

FOOD SAFETY

5 Tips for Improving Food and Beverage Operations Beyond COVID-19

Crown Equipment outlines ways companies can prep their plants post-pandemic.

Processors Palette: Silver Fern Farms Stays on Top Despite Global Pandemic

Silver Fern Farms partnered with Sealed Air to measure and reduce its plastic use.

DDC Group details the Top 5 offshoring trends in transportation.

New Innovations in Warehouse Temperature Management

Therma details how increased visibility into operations helps ensure food safety.

WEB EXCLUSIVES Supply Chain Network Virtual Summit SCNSummit.com

The L.I.N.K. to Global

Supply Chain Intelligence foodlogistics.com/podcasts

Food Editors Stream Live on Social Media foodlogistics.com/videos/link-live

Published and copyrighted 2021 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

HOW INDOOR DINING IS MAKING ITS COMEBACK A Marina Mayer Editor-In-Chief

s I look around at the hustle and bustle of this mom-and-pop restaurant I’m writing from, I can’t help but feel emotional that this is for real. That I’m actually sitting inside a restaurant, without a mask on and surrounded by tables of families, friends, business associates and more, all feeling the same internal excitement. Although menus are still limited, ingredient prices are rising and the foodservice industry is struggling with finding quality workers, the restaurant revival is in full swing (go to page 16 for more). One year ago today, many of our nation’s restaurants and foodservice establishments were still closed due to lockdown measures brought on by the Coronavirus disease (COVID-19). At this point, foodservice distributors had already pivoted to deliver direct-to-consumer. Restaurants re-tooled to cater to delivery, curbside pickup and other channels not previously in their wheelhouse. Fast forward to present day,

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and I feel hope that an industry so plagued by COVID-19 actually has a good shot at coming back to life in a bigger, better way. The pandemic forced restaurant operators and foodservice distributors to innovate and develop new ways of doing business in order to be more things to all people. Think beer and craft drinks available for curbside pickup. Think delivery from restaurants who previously didn’t have direct-to-consumer as part of their model. Think foodservice distributors donating food items to the homeless. In a time of crisis, I, along with the rest of the nation, watched an industry join forces to keep food moving through the chain, to keep the farm-to-fork model alive and to keep restaurant doors open and people fed. Restaurants were hit harder than any other industry during the pandemic, and still have the longest climb back to pre-COVID-19 employment levels, says the National Restaurant Association (NRA). But, that’s not stopping this segment from innovating to survive. So, next time you’re out and about, be sure to support your local restaurant. Purchase the meal plan at camp to keep the foodservice distributors trucking along. It takes a village to keep companies afloat. The restaurant business needs that village now.

Group Publisher Jason DeSarle Sales Associate Brian Hines Account Executive Mike Coon Editor-in-Chief Marina Mayer mmayer@ACBusinessMedia.com

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AC Business Media Chief Executive Officer Ron Spink 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 2021 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

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permission from the publisher.

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FIELD TO FORK

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

ManpowerGroup Survey Underscores Strongest Hiring Outlook in U.S. Since 2000

Getty Images

The great rehiring is beginning in the United States with more than 7,300 employers reporting the most optimistic outlooks since 2000 for the three months ahead, according to the latest ManpowerGroup Employment Outlook Survey. “Employers are ready to bring their workers back as restrictions lift and America gets ready to for the ‘New Next’ and ‘In Real Life’ connections resume,” says Becky Frankiewicz, ManpowerGroup president, North America. “Yet childcare challenges, health concerns and competition mean demand still outstrips supply, which is dampening the ‘big return’ of the American workforce. It’s a worker’s market and employees are acting like consumers in how they are consuming work, seeking ﬂexibility, competitive pay and fast decisions. Now is the time for employers to get creative to attract talent, and to hold onto the workers they have with both hands,” she adds. Employers in all 12 U.S. industries report positive outlooks, including wholesale and retail trade (+29%); transportation and utilities (+26%); and durable and non-durable goods manufacturing (+25%). Go to page 16 to learn more about the labor shortage. Read more: https://foodl.me/yj6fw2

RLS Logistics to Build New Cold Storage Warehouse

Kloosterboer Group

RLS Logistics, through its afﬁliate RLS Partners and its new warehouse partner, RLS Complete, announced plans to build a new cold storage warehouse in Sturbridge, Mass. Tippmann Innovation (Ti) will be leading the construction, with the facility set to open Q1 2022. The facility will provide refrigerated and frozen food manufacturers, distributors, processors and importers in the Springﬁeld, Mass., and Boston region with public cold storage warehouse capacity relief and access to RLS’ temperature-controlled less-than-truckload shipping programs. “With all of the acquisitions we have seen in the past few years, coupled with tight capacity, the addition of RLS Complete will give refrigerated and frozen food customers more choices to work with a strong family run cold chain storage company that has a national footprint. Additionally, we bring a lot of experience and knowledge for customers looking for fully integrated cold chain solutions for warehousing and transportation,” says John Gaudet, VP, business development, RLS Logistics.

Lineage Logistics Acquires Kloosterboer Group

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COVER STORY continued and ‘In Real Life’ connections resume,” Becky Frankiewicz, ManpowerGroup president, North America, said in a press release. “Yet childcare challenges, health concerns and competition mean demand still outstrips supply, which is dampening the ‘big return’ of the American workforce. It’s a worker’s market and employees are acting like consumers in how they are consuming work, seeking ﬂexibility, competitive pay and fast decisions. Now is the time for employers to get creative to attract talent, and to hold onto the workers they have with both hands.” The consumer demand has changed too. About 75% of restaurant operators consider offpremises dining to be their best growth opportunity, the NRA report says.

ingredients for salad bars and buffets to using more pre-packaged foods for takeout and delivery operations,” Allen says. “Manufacturers cut down on product range, offering fewer varieties of breaded chicken tenderloins, for example, while meat processors reduced production output to meet COVID-19 safety standards.” However, supply chain visibility tools, demand planning, cloud computing, operational artiﬁcial intelligence, multi-temperature controls and other

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McLane Company

includes redesigning inbound freight to be responsive to supply chain changes.” Mid-pandemic, McLane also began selling wholesale groceries directly to consumers through a new online platform called McLane Direct, transporting goods from its warehouse to consumers’ homes in Bell County, Texas, through curbside pickup. FreshOne partnered with Samsara to implement its real-time GPS tracking solution, which provides trip history, cargo temperature monitoring, proof-of-delivery, fuel efficiency reporting, routing software and realtime visibility, among others. An expert column published by Chelsea van Hooven from Choco (foodl.me/44wtja), details how “restaurants that use technology to optimize How technology operations and improve and innovation customer communication reawaken will be the ones who succeed the cold food in a post-pandemic world.” chain The drive toward digitization will As more Americans continue to be a longflock to indoor term solution for dining, the companies wanting foodservice Earlier this year, McLane developed McLane EDGE, a digital platform designed to to prepare for future industry continues help retail businesses grow in a fast-paced, ever-changing environment. challenges, she adds. to struggle with demand “Thanks to automated processes, forecasting and overall visibility into what’s solutions have become critical elements in helping foodservice establishments and restaurants can transform themselves to next. distributors re-emerge post-pandemic. run their operations smoothly, increase Data from J.P. Morgan and FreedomPay [Go to foodl.me/lrc59e to download Food their quality and provide a comfortable reveals a rapid shift in technology Logistics’ free white paper discussing how experience for their guests,” van Hooven investment and data commerce, from supply chain visibility helps manage risk in writes. focus on low-tech investment and legacy the cold food chain]. The pandemic also forced restaurant systems to touchless commerce and digital McLane Company modernized its operators and foodservice distributors to capabilities. transportation management system (TMS) innovate and develop new ways of doing For instance, more than two-thirds to provide greater visibility and flexibility business in order to be more things to all (69%) of senior decision makers surveyed to its fleet. people. sought to integrate digital channels and “We are taking advantage of the “Industry responses to COVID-19 have data to create new operational models opportunity to review standard processes created several hybrid scenarios that may and customer touchpoints to sustain to make them more efficient, such as not have existed before,” says James. “For their business during office closures, hiring and recruiting teammates,” says McLane, the breadth, depth and scale of staff isolation, site lockdown and Daniel James, director of logistics and our operations, afforded opportunities to diminished physical footfall. And, 69% transportation management, McLane adopt innovative practices and policies that of the executives surveyed have placed Company. “The scope and scale of our we may not have considered during normal digitalization and data integration in the freight management systems is giving times. forefront. us additional options to reposition our “For example, our ability to support “Restaurants that remained open freight management capability to have customers who transitioned from dine-in slimmed down their menus during better control of inbound freight. This to customer pickup or delivery. Many of the pandemic and shifted from fresh

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While the future of foodservice distribution may seem uncertain, the Restaurant Renaissance is in full effect. Looking ahead, Mintel predicts total market sales to rebound to prepandemic levels by 2023, with limitedservice restaurants (LSRs) bouncing back more quickly. An NRA report reveals packaging designed exclusively for delivery and Mid-pandemic, McLane began carryout will be selling wholesale groceries directly to consumers through its new online more sophisticated platform called McLane Direct. and effective; convenience stores and grocery stores will expand their foodservice offerings; more restaurant layouts SHIPPING SUPPLY SPECIALISTS will include areas dedicated to delivery OVER 1,700 BOX SIZES and carryout; more training will be provided virtually; technology will be used more effectively to control costs and enhance management efﬁciency; women will hold a larger portion of upper management jobs and more. ORDER BY 6 PM FOR “As we approach SAME DAY SHIPPING the 1-year mark of pandemic-related dining restrictions, we know that COMPLETE CATALOG virtually every 1-800-295-5510 uline.com restaurant in every community has been impacted. Amid an eC an

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What’s next?

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our customers temporarily changed the open hours for their stores, closed store locations or needed fewer deliveries per week,” James adds. “These types of changes required rapid but careful coordination so we could continue to provide service. Customers who could differentiate themselves with drive-through service and delivery managed the COVID-related changes more effectively. “From a digital standpoint, understanding of the value-chain progressed farther and faster in large part due to COVID,” he continues. “Customers lacking a drive-through had to change their business model to become good at the electronic-ordering process in a very short time. Some companies adapted more quickly than others and we had to adapt along with them. For example, companies that pivoted from sit-down to take-out establishments needed reliable access to ingredients and some food chains shrunk their menus to make their supply chain more stable.” When the pandemic hit, many foodservice distributors also eliminated minimum delivery requirements, donated food to shelters, partnered with grocery retailers to meet critical food supply needs and offered other value-added services in order to keep food moving. For example, Sysco Corporation joined forces with The Kroger Co. to provide temporary work opportunities for Sysco associates at certain Kroger distribution centers. Sysco also purchased more than 21,000 $25 gift cards totaling more than $525,000 to support its operations’ frontline associates in appreciation for their hard work and dedication during the pandemic. Recruiting the next generation of truck drivers also continues to be a top priority. “We are investing in a variety of technologies and solutions,” James adds. “For example, we are modernizing our distribution execution systems across every distribution center in our network. We are actively evaluating new technologies as they become available. We’re especially interested if it has potential to improve our service to our customers or the efﬁciency of our network.”

ALWAYS IN STOCK

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Do tF oo ds

In c.

COVER STORY continued The driver shortage is worse now than it was pre-COVID-19.

everchanging landscape of dining restrictions and widespread closures, restaurants found ways to adapt, keep people employed and safely serve our guests,” Tom Benet, NRA’s president and CEO, said in a statement. “While we still have a long way to go, we are conﬁdent in the resilience of the industry’s workforce, operators, suppliers and diners. The year ahead will be critical as we continue to advocate for much-needed recovery funds to help get our industry back on track.” That’s why many industry experts consider ghost kitchens to be part of the equation for the future. For its part, US Foods Holding Corp. launched US Foods Ghost Kitchens, a program designed to guide restaurant operators when opening their own ghost kitchen operation. “The Ghost Kitchens program was developed in response to growing interest among our customers, but we’ve also been tracking the trend, and ghost kitchens are projected to reach a $1 trillion global market by 2030, making them an attractive concept for operators even after dine-in restrictions are lifted,” Jim Osborne, SVP of

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customer strategy and innovation at US Foods, said in a press release. “We also know ghost kitchens are a departure from the traditional brick-and-mortar format, so some independent operators need help to jumpstart a new venture, which is why our program takes out all the guesswork. We help the operator through every major decision.” Meanwhile, the Kroger Co. partnered with ClusterTruck to launch two onpremise kitchens that will provide a variety of freshly prepared meals on-demand. And, Zuul secured $9 million in funding to expand its ghost kitchen operations throughout New York City. However, for some, the hurdles are more like leaps that can’t be overcome without financial assistance. That’s why the American Rescue Plan Act established the Restaurant Revitalization Fund (RRF) to provide funding to help restaurants and other eligible businesses keep their doors open. According to the Small Business Administration (SBA), more than 362,000 applications for a total of $75 billion in funding were received in the first three weeks of the RRF application portal being open. Meanwhile, a bipartisan group of lawmakers in both the House and Senate introduced the DRIVE-Safe Act to address the growing truck driver shortage. “The DRIVE-Safe Act modernizes federal law to empower the trucking industry to fill these gaps with a qualified, highly trained emerging workforce,” Allen says. “The bipartisan bill eliminates this arbitrary age restriction and creates a 2-stage apprenticeship program with rigorous training and safety standards to ensure that individuals between 18-20 can safely and confidently enter the workforce as professional drivers. At its core, the

DRIVE-Safe Act is a safety program, requiring training far and above current requirements to ensure professional drivers are prepared. It is also our best hope for avoiding a workforce crisis.” And, should the DRIVE-Safe Act get passed, there’s an opportunity to introduce young people to a career where it’s very cool inside of a truck, so to speak, Brewster says. “[These young people] have grown up with technology, and the industry is deploying those technologies,” she adds. The road to recovery also depends on location, location, location, according to The NPD Group. For example, the Dallas-Fort Worth area ranks in the Top 10 markets to recover from the steep customer transaction declines thanks in part to the state of Texas lifting COVID-19 restaurant restrictions earlier this year, sometimes well before other states opened back up. Other top markets showing improvements in restaurant chain customer transactions in May are Atlanta; Birmingham, Ala.; Salt Lake City, Utah; and Orlando, Fla. “I often get the question, when will the U.S. restaurant industry improve, and part of the answer is one market at a time,” David Portalatin, NPD food industry advisor said in a press release. “My advice to restaurant operators, foodservice distributors and manufacturers is to have a national view but act locally.” However, the restaurant revival plays out, innovation, technology and the foodservice village will continue to forge ahead to keep food moving through the cold chain, regardless of pandemics and other supply chain disruptions. “Despite the challenges of the past 15 months, the passion, creativity and entrepreneurial spirit that has made this industry great for so many years has been on full display and is enabling the foodservice industry to emerge stronger and more successful than ever,” Allen says.

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BE HONORED FOR YOUR ACHIEVEMENTS! Annually, Food Logistics recognizes the software and technology providers that ensure a safe, efficient and reliable global and beverage supply chain — providing companies the opportunity to improve productivity and gain efficiencies within the industry.

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FOOD LOGISTICS 2021 TOP SOFTWARE & TECH AWARD Showcasing the industry leading software and technology providers supporting the global food and beverage supply chain. Nomination deadline: September 24, 2021 Winners announced in the November/December 2021 issue

NOMINATIONS WILL OPEN AUGUST 2, 2021 AWARD RESULTS, INFORMATION AND NOMINATIONS POSTED ON

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

Nomination dates and issues are subject to change. Consult foodlogistics.com/awards for current information.

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3PL / COLD CHAIN

BY BRIELLE JAEKEL, ASSOCIATE EDITOR

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Efficiency is top of mind for the cold chain due to the perishable nature of the goods being transported. @AA+W-adobe.stock.com

DRIVERLESS TRUCKS

Come to Third-Party Logistics D riverless vehicles are becoming more of a reality on the road, as consumer vehicles are now equipped with innovative features such as parking assist, adaptive cruise control and many other autonomous innovations. Autonomy in vehicles is categorized in six levels, and developers are close to a Level 4, which is when the majority of a vehicle’s journey does not require human interaction. As the level of autonomous technology grows, there is also a labor and driver shortage throughout the supply chain. These two factors together make driverless technology a prime candidate as a tool in the third-party logistics (3PL) sector.

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“Currently there is a severe driver shortage in the industry, and it is expected that this driver shortage would only increase over the next few years,” says Raghavender Sahdev, CEO, Nuport Robotics. “The average age of a truck driver is approximately 45 and the next generation of youth do not have any interests in becoming truck drivers. “As with introduction of any new technology, the nature of the job changes, a similar trend is expected in trucking as well,” Sahdev says. “In the future, the role for drivers would change and become more interesting, the driver would be responsible for other tasks such as remote monitoring of trucks, connection and disconnec-

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tion of trailers from the tractor, handling emergency situations, performing safety checks, carrying routine checks, maintenance, repairs as needed on a frequent basis. Through the introduction of autonomous driving technology, the driver’s role would become more interesting, and at the same time, the driver shortage prevalent in the industry would be addressed to a great extent, leading to more efficient supply chains.”

Develop the future Today, autonomy in the 3PL space is still in the development stage, as numerous partners work together to come up with innovative ways of creating driverless technology. For instance, autonomous trucking company Embark works with numerous partners across different sectors in 3PL to do this very thing. “Today, 3PL autonomy and vehicle autonomy broadly are in the testing and development phase,” says Sam Abidi, head of business development at Embark. “Embark specifically is working with shipping, carrier and 3PL partners to haul goods autonomously and refine our technology to be able to work seamlessly within the operating constraints of all transportation modes—carrier hauls, shipper private fleet hauls, 3PL provisioned hauls and more.” While autonomous technology on the road is not yet ubiquitous, broad application could be expected as early as 2024. Florian Neuhaus, a partner in McKinsey, says that the adoption curves forecast pick up in 2024-2026 in the United States, Europe and China. Additionally, the United States and China will flock to the technology the quickest due to cost of ownership forecasts, with Europe close behind. While a completely driverless truck is not a reality yet, there are still a wide range of autonomous technology embedded into today’s modern trucks that help with the transportation process. Just like consumers see in their own vehicles, driverless tech assists the 3PL driver in numerous ways such as changelane support, adaptive cruise control, route optimization and more. “Due to automated systems, less time will be spent on decision making, such as

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route management, emergency response, etc.,” Sahdev says. “Some 3PL companies are using telematics and fleet optimization technologies to optimize their operations from companies such as Samsara, Geotab, FleetOps, Omnitracs, etc. Incorporating newer technologies, there are better response times to address any accident-related scenarios. Trucking OEMs in general ship ADAS features such as adaptive cruise control, the use of which on highways can save fuel consumption. There are automated emergency braking based on input received from some sensors such as Radar to avoid any accidents.”

Drive efficiency Current use of autonomy in the 3PL space already helps create greater efficiency, which is exceptionally important in the cold chain as food and temperature-sensitive items can spoil if traveling for too long. For driverless trucks, downtime is lower, which means they will reach their destination faster. “The potential of food getting spoiled is much less due to timely deliveries and better controlled operations,” Sahdev

Plus

 Autonomous trucks help optimize drive time.

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3PL / COLD CHAIN continued

Broad application of autonomous technology could be expected as early as 2024. @ Rawen Vision - adobe.stock.com

Driverless trucks are close to Level 4 autonomy.

continues. “Overall autonomy would lead to lesser food waste that generally happens in current operations. An overall tracking of the state of the food can also be maintained thereby prioritizing fast delivery depending on the status of the food. “Recently TuSimple made a delivery with a safety driver of watermelons faster than traditional driving operations for a long-haul use case. Usually driving from East coast to West coast will take five days, however with AV technologies, this is reduced to three days. On the other hand, similar efficiencies are also observed for short-haul use cases. Local agriculture and the food industry also require an optimized supply chain, where autonomous driving would help to improve safety, with lesser greenhouse gas emissions and overall quicker delivery time,” adds Sahdev. Abidi supports the efficiency theory and believes that a truly autonomous trucking future could lead to the removal of hours-of-service constraints, an issue that plagues the industry due to long load times and traffic. He also explains that this will support more predictable delivery times and increase the number of hours that warehouses could expect to ship and receive goods. Embark

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“Additionally, autonomous trucks will not need to be routed home after a few runs like a manual truck that must get its driver home,” he adds. “This enables more ﬂexibility in routing, which could lead to a reduction in deadhead miles and an increase in utilization.” “On the sustainability front, we expect autonomous trucks to reduce fuel consumption due to lower travel speeds (no hours-of-service constraint pushing the vehicle to get somewhere quickly), smoother throttle response and reduced need to idle (no need to stop for the night). These factors will allow 3PL providers and shipping customers to better achieve sustainability targets,” he says. While some may be concerned that robotics and autonomous technology takes jobs from hardworking people, the driver shortage is still alive and true, and it is likely that no truck will ever run completely without a driver. Shawn Kerrigan, COO and co-founder of Plus, says that advances in autonomous trucking will only help attract new drivers rather than replace them. “Driver shortage and high turnover rate are two of the most pressing problems facing the trucking industry,” Kerrigan says. “The average annual turnover rate for long-haul truckers at big trucking companies has been greater than 90% for decades (e.g. according to an article from NPR). Our autonomous driving system transforms the role of truck drivers from being an operator to a ‘pilot,’ potentially elevating the job into something that is much more attractive to boost recruitment and retention. This could potentially bring in younger drivers and female drivers into trucking careers as well.” [Go to foodl.me/udf3nu to register for SCN Summit: State of the Supply Chain sessions in on-demand to learn more about the driver shortage and other transportation challenges and opportunities].

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In the cold chain Driverless technology will support cold transportation, and some even say will factor temperature monitoring into the technology systems. There are a few differences when it comes to the cold chain and dry storage for autonomous trucks, Sahdev says. For instance, power consumption is a factor with reefer trucks because a higher power consumption is needed for refrigeration. This means the onboard computer and sensor systems need efﬁcient power management. Efﬁciency is also top of mind for the cold chain due to the perishable nature of the goods being transported, Sahdev adds. As the cold chain approaches an autonomous future and new and exciting things happen in trucking, the industry as a whole is working to be more enticing to younger drivers. Especially since COVID-19 exasperated the logistics even further, companies will likely look to autonomous technology to optimize performance and operations.

o es al

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SECTOR REPORT

WAREHOUSING

DESIGN STRATEGIES FOR ELEVATING GROCERY PRACTICES

Multi-channel means multiparking and multi-access With the advent of multi-channel shopping, suddenly parking must be organized to perform an array of tasks. Curbside pick-up spaces attended by store employees compete for space with traditional handicap and 20-minute spaces needed by in-store shoppers. The store’s proprietary delivery associates need designated parking in convenient—yet somehow out of the way—places adjacent to newly established in-store staging rooms. Sprinkle in the recent requirements in many jurisdictions for electric car charging spaces, and the retailers and their architects have quite a design challenge to work out. This gets even more complex in dense urban projects that require structured parking above or below the main store. One possible solution might be to deploy limited teaser parking at store level with curbside service and an adjacent ramp leading up or down to the main roof parking ﬁeld. There, in-store shoppers park near brightly lit, public, vertical circulation lobbies, and fulﬁllment associates can park in the opposite corner and use a keycard-activated elevator to collect delivery consignments on the store level and its staging areas.

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The Toidi

ew places in the modern world are as directly linked to our physical survival as the neighborhood grocery store, yet their format has evolved in small ways—until recently. National retailers have begun offering new levels of convenience, speed and safety, making at-home shopping more mainstream. Online retailers have shaken things up further with moves into traditional grocery retailing powered by their proprietary technology and branding twists. In response, traditional neighborhood grocery stores have begun embracing technology advancements to compete.

Traditional neighborhood grocery stores have begun embracing technology advancements to compete, while also re-thinking their physical stores, particularly how their inventory can be multi-channeled out more profitably to contemporary consumers.

Fixture plans are flexing The interior ﬂoor plans are also shifting to accommodate these trends. Stores’ sales ﬂoor areas are besieged by increased backof-house requirements for staging rooms, additional “quick ship” back stock and other spaces required to carry out a delivery service. In some cases, staging rooms begin to encroach on the store’s frontage to serve curbside loading. While two main in-store shopper entrances have been the norm for decades, self-serve checkout aided with technology has begun pushing toward a single main door, and the secondary doors in new and remodeled stores become secured access points for non-traditional channels.

Enhanced technology In today’s technology-rich climate, creative digital solutions are at our ﬁngertips 24/7, and there is no reason grocery stores should be the exception. App-based coupons and shopping aides will continue to gain steam as phones are used for even more tasks around the store, including checkout and payment. Smart shopping

aids continue to improve by understanding a buyers’ habits, helping them save time and predicting new products that might be of interest. Checkouts are an active experience that concludes one’s shopping trip, and while this will remain the case in many stores, cutting-edge technologies will enable this via passive means.

Location and locality for the win Neighborhood players still have a couple trump cards. Location beats technology when a store is en route to other destinations. A sense of history and locality beats price wars when people in the community share a sense of ownership and loyalty with well-run and socially engaged markets. [Go to foodl.me/jbhf8n to read the rest of this column in its entirity].

ABOUT THE AUTHOR TIM SLOAT senior designer, Lowney Architecture

www.foodlogistics.com

6/21/21 8:56 AM

A single-source approach

to fresh solutions.

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When you make the decision to take your business to the next level and need advice on the design and construction of your food facility, ESI Group USA can deliver the expertise to get you there.

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Automation I Cold Storage I Distribution & Processing I Logistics

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SECTOR REPORT

WAREHOUSING

DESIGNING FOR YARD AUTOMATION

e’re all too familiar with today’s problems in distribution yards—they require repetitive, manual tasks to be performed in often hazardous, inhospitable conditions. As one of the most under-invested-in links in the supply chain, distribution yards operate today much as they have for decades. Yet, yards play critical roles in getting more than 10 billion tons of freight annually from warehouses onto the open road. It’s time to re-think what’s possible for the role distribution yards play in the supply chain. Distribution yards are ideal for automation for three primary reasons: 1) operations involve manual, repetitive tasks, 2) yards require dull, dirty and dangerous work and 3) yards are located on private, well-defined property. As yard automation solutions become more widely available, successful deployment of this technology depends on forward-thinking design and planning. Three key areas must be considered when planning for yard automation—property, process and people.

Property The configuration on the property itself—both land and facility— is critical to how quickly and easily automation can be deployed in the distribution yard. First, work with your logistics real estate partner to secure fully-owned private properties. This allows you to test, iterate and optimize autonomous operations without the constraints of public road rules and regulation. For optimal performance of autonomous systems, identify land with

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a limited grade throughout the yard’s footprint. Once the site is selected, outline the layout specifications necessary for yard automation. This includes fully paved drive paths, standard parking to allow maximum trailer volume and designated space for electric vehicle charging stations. Avoid interfering with IT and communications infrastructure by ensuring adequate overhead clearance (i.e., no low clearance walking bridges or dock overhangs). A yard truck driver typically spends about 2 minutes per trailer opening swing doors in the approach. This can add up to 240 minutes per day, or more than 15% of the total operating time of a single yard truck. By implementing a drive-through loading dock design, you eliminate the need for the yard truck driver to handle the trailer and you re-gain almost 15% of the yard truck’s operating time all while providing a safer working environment for personnel. Next, turn attention to the loading dock. To fully automate yards, the dock door design must allow for all over-the-road trailer doors to be opened inside the facility. This is particularly applicable for trailer fleets predominantly made up of swing doors. A drive-through design features a vertical dock leveler, a vehicle restraint, a dock seal or shelter, dock lights and a safe sequence of operation. As you plan your facilities for swing door trailers, allow for the height and width of the dock door openings to be at least 10 feet wide and 10 feet high, ideally with 13- to 14-foot centers. Yard automation requires a seamless link between warehouses and over-the-road trucks, which means moving tasks inside the warehouse and tightly connecting the swing door trailer, loading dock and warehouse. Finally, plan for the property to have adequate electrical and IT infrastructure. Electrical specifications must support the distribution center’s fast-charging needs of multiple electric yard trucks. Furthermore, the distribution yard and facility operating areas need to have adequate WiFi or LTE communications networking to facilitate autonomous operations. Additional IT infrastructure, such as RTK antennas, LTE antennas and/or WiFi access points and other positioning systems may also be required.

Process Be sure to address existing processes and procedures to optimize for the safety and efficiency of autonomous yard operations. The repetitive, predictable traffic patterns found in today’s yards are ideal for autonomous systems. If you haven’t already, consider implementing automated check-in/check-out procedures for site access, limiting the number of pedestrians in the yard and minimizing vehicle traffic to only over-the-road trucks that require yard access. Taking these additional steps now readies operations to support yard automation. Autonomous yard operations alone provide great site-level benefits. But, when the yard automation ties to other software systems that manage the flow of freight in and out of the

distribution center, the workflow of the entire distribution facility logistics coalesces. By taking an integrated software approach, distribution center operations, on the whole, can be exponentially optimized. Yard automation can integrate with homegrown or offthe-shelf, such as yard management systems (YMS), warehouse management systems (WMS) and transportation management systems (TMS). By taking an integrated system-wide approach, you’ll achieve end-to-end visibility of freight. Over time, the business intelligence gathered and shared along the supply chain will lead to truly predictive freight logistics.

People The deployment and adoption of yard automation calls for preparing existing personnel for new automation-related tasks, reorganizing integrated teams around automation and rallying personnel throughout the company around autonomy and its multi-faceted benefits. Like most successful initiatives, responsible deployment of yard automation hinges on executive sponsorship and strong leadership. Leaders must consider the change management processes and staffing plans that enable personnel to support autonomous yard operations or move into other roles within the company. Another area to consider is how yard automation fits into corporate sustainability objectives, such as the transition from diesel to electric yard trucks. Also at the corporate level, human resources and safety leaders need to prepare for managing the regular interaction between humans and robots. Project managers within the organization may need training in automation, so they can lead internal teams to launch autonomous operations, robotics and vehicle deployment successfully. It’s equally important to include distribution facility and site-level leadership in the planning, deployment and ongoing management of yard automation. They will play critical roles in training the staff responsible for executing yard automation. As yard automation scales across your logistics network, new roles may come to the forefront, such as operations management personnel to oversee the software and robotics across multiple sites. Automation is expanding throughout the global supply chain. For enterprises looking to innovate for long-term competitive gain, they must embrace autonomous yard operations. By nature, distribution yards already provide an ideal use case for autonomous operations. Yet, with some forward-thinking planning about properties, processes and people, you will be well-positioned to deploy yard automation quickly and realize more efficient, safer and sustainable ABOUT THE AUTHOR operations.

KYLE BERTIN director of customer strategy and planning, Outrider

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www.foodlogistics.com

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SECTOR REPORT

WAREHOUSING

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ne of the most talked about topics last year was the influx of grocery delivery demand across the United States, with daily online grocery sales jumping 110% in April 2020, just after the pandemic hit. In order to keep up with this demand, food logistics and supply chain professionals had to solve a few problems. First, they needed a way to store a sudden oversupply of food items that restaurants no longer needed, but there was no way to know how long the pandemic would last. Second, an influx of grocery delivery services required more dynamic, flexible and widespread warehouse options to ensure fresh delivery and keep up with orders. Finally,

grocery retailers were constantly experiencing shortages of food essentials, struggling to keep up with shopper demand.

Competition for warehousing space Warehouse demand is high, and not just in the food industry. Large e-commerce companies are making long-term investments in industrial property. This includes building new warehouses and bidding on the limited supply of industrial space listed nationwide. The inﬂux of food and grocery delivery is quite possibly a bubble. Federal, state and local mask mandates are being lifted. As of press time, over 40% of the U.S. population is fully vaccinated and @Chaay_tee - stock.adobe.com

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Too much space or not enough Before the advent of Airbnb, it was extremely cumbersome for residential property owners to rent out their space when it was not being used, especially for just a few days. Today, warehousing space can be listed and monetized the same way as a home or apartment on Airbnb. For example, tenants locked into long-term leases can list extra warehouse space for free and connect directly with buyers whose search criteria falls within the parameters of the listed space. Prior to this model, leasing temporary warehouse space involved lengthy subletting contracts and negotiations that sometimes took longer than the lease term itself. Also, owners and brokers are not inclined to offer these types of leases because there is plenty of interest in longterm warehouse space. There’s no shortage of demand for shortterm warehousing space, but the traditional commercial real estate process makes it nearly impossible to execute efficiently.

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consumer spending in restaurants is spiking, up 13.4% in March over February. Grocery retailers have implemented stricter cleaning procedures over the past year, making the in-store shopping experience more comfortable and the local produce more accessible and affordable. Based on these consumer behavior trends, it’s hard to imagine that demand for food delivery services will be able to keep up or outpace the demand generated in 2020. Companies that bought or leased long-term space in response to the effects of the pandemic took on a huge potential risk; other companies that didn’t have the means to lease long-term space just had to work with what they had. There are a lot of variables that food logistics professionals need to consider when buying, leasing or building warehouse space.

Knowing how hard it is to find short-term space on a strict timeline, companies will sometimes opt to lease, build or purchase more warehouse space than needed. The E-commerce companies are making longon-demand wareterm investments in industrial property. housing model eliminates many bottlenecks of Finding specific subletting unused space in these circumwarehouse features stances, incentivizing anyone with extra space to monetize quickly. This is revealing Another important factor to consider when all kinds of unrealized and unused industrichoosing warehousing options in the food al potential across the United States that industry is the specific conditions required food logistics professionals can tap into to for the space. create a more resilient supply chain. Temperature-controlled spaces and cold storage options are usually top of mind, but Catastrophic events and it’s also important to know what else the the impact on food logistics warehouse space is used for. For example, if it’s shared, food items cannot share a space The pandemic will hopefully be a oncewith other materials, such as tires or chemiin-a-lifetime event, but there are other cals. It’s important to have full transparency catastrophes, such as natural disasters, into the space being leased, as well as what that impact the food supply chain every year—sometimes in new, unexpected ways. other purposes the warehouse serves. As seen with the pandemic and the Bridging the supply broad range of natural disasters that made and demand gap for landfall in the United States last year, the warehouse space specific circumstances of any event can affect all food industry segments differently. There’s no shortage of demand for shortFor logistics and supply chain professionals, term warehousing space, but the traditional it’s critical to understand what flexible commercial real estate process makes it options are available at each step in the nearly impossible to execute efficiently. process to minimize delays and extraneous On the supply side, there is, in fact, vacant costs. warehouse space in the United States, Leading up to a big storm, for example, but a lot of it is tied up in long-term lease grocery retailers stock up on food essenagreements—even if the tenants aren’t tials—milk, bread, eggs, non-perishables, using it. Vacant warehouse space needs to etc. If there isn’t enough staging space onbe more accessible to logistics and supply site, short-term warehousing allows stores chain professionals when and where they to lease nearby space on an as-needed need it. basis, for days, weeks or even months. This prevents retailers and their shoppers from ABOUT THE AUTHOR running out of stock due to a shortage of accessible warehouse space. BRAD WRIGHT

CEO, Chunker

JULY 2021 | FOOD LOGISTICS

6/18/21 1:38 PM

SECTOR REPORT

TRANSPORTATION

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OFFSHORING TRENDS IN TRANSPORTATION Other reasons for growth in offshoring business process programs include: · Delays in processing caused by internal bottlenecks. Transportation and logistics providers are seeking partners not held back by the same blockers already experiencing. Instead, they are engaging with companies who complement their strengths and solve for their weaknesses. Look for providers whose training and quality control methodologies ensure the entire program runs as smoothly and efﬁciently as possible. This prevents a client’s internal obstacles from negatively inﬂuencing the success of their offshoring initiative.

ince the onset of the Coronavirus disease (COVID-19) pandemic, there has been a noticeable rise in transportation and logistics providers developing offshore partnerships to benefit their operational performance, and it shows no sign of slowing down. Here are the Top 5 offshoring trends in transportation. 1. Expand reliance on existing offshore partners After a year of difficult workforce planning, companies are looking to refocus their in-house staff on more strategic initiatives and concentrate on their core business and competencies. In addition to the continued impact of e-commerce activity on the global food and beverage industries, carriers and third-party logistics (3PL) companies are increasing the share of back office and front office work to free up resources to accommodate shipment volumes.

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· In-house staff and technology capacity limitations. Most companies do not currently have the capital or internal approval processes to invest in human resources or technology. The ability to rely on a partner who already has the required resources available is convenient and attractive. Select a provider that regularly reviews each client’s capacity requirements to ensure every client’s service level agreements (SLA) are consistently met and never comprised.

2. Diversify locations Many transportation providers who use vendors based in India are currently struggling with turnaround times, processing completion and quality metrics due to the COVID-19 resurgence in the region. Therefore, many carriers and 3PLs are looking for offshore partners with location diversity. Select a provider who maintains a global footprint with strategic operating locations worldwide to ensure business continuity.

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3. Rethink traditional processes Aside from freight billing and similar back-office functions, many carriers and 3PLs are now thinking outside the box and want to replicate the benefits received from their existing offshore teams by outsourcing additional functions. Over the past year, requests for National Motor Freight Classification (NMFC)

· Flexibility issues within the organizations themselves. Scalability and elasticity is already challenging to achieve in freight, but some organizations have difﬁculty practicing agility simply due to the way they are built. After the pandemic, many transportation providers have sought an offshore partner speciﬁcally to help them adapt better to market changes.

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processing, freight rate auditing, IT outsourcing and inside sales functions have increased. In the United Kingdom and Europe, there’s been a rise among transportation and logistics providers wanting to offshore customs brokerage processing. 4. Prioritize data security The growing number of news headlines regarding corporate cyberattacks has generated an increased prioritization for data security. As a result, carriers are now demanding their offshore partners adhere to the strictest protocols to ensure system connectivity and transmission security.

5. Require hazmat expertise Another shift noticed over the past year is the increased demand for hazmat expertise. In addition

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to avoiding non-compliance penalties from the Department of Transportation (DOT), properly capturing hazmat data is critical to safely transporting hazardous material shipments. One of the most frequently cited safety violations of the H azardous Materials Regulations (HMR), Title 49 CFR Parts 100-185, is the failure of the shipper to correctly describe the hazardous material on the shipping paper. More and more carriers want to hand off this responsibility to their offshore partners and keep teams focused on moving the goods themselves. While the COVID-19 pandemic illuminated the unique challenges of transportation and

logistics providers, it forced many to re-evaluate their offshore partnerships while assessing their internal processes, functions and resources. During 2020, the primary challenge for many within the industry was to keep goods moving. Carriers quickly learned that to stay competitive, they needed to remain agile. Due to this fact, expect to see a continued rise in developing and strengthening offshore partnerships throughout the supply chain.

ABOUT THE AUTHOR LUNA BOYD VP of client solutions, DDC Group

JULY 2021 | FOOD LOGISTICS

6/18/21 1:36 PM

SECTOR REPORT

TRANSPORTATION

Importance of Technology for ‘BUY AMERICAN’Executive Order

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arlier this year, President Joe Biden issued the “Buy American” executive order, pledging to strengthen domestic purchasing power and revitalize the manufacturing industry. President Biden’s plan strongly focuses on strengthening domestic supply chains through federal contracts. The Buy American executive order ensures more federal dollars are spent on Americanmade goods using American-made parts. As the Biden Administration pushes to drive change within the industry that should increase demand and potentially create more jobs, it is inevitable for industry leaders to face growing pains. Fortunately, modern technology is available to support manufacturers and supply chain leaders with achieving the visibility and insights needed to support this increasing demand.

Emerging challenges While the executive order is a positive step to revitalize domestic manufacturing, the industry will inevitably face a multitude of challenges. As manufacturers work to keep up with the increased demand, maintaining quality, efﬁciency and service levels are top priorities. Speciﬁcally, manufacturers might

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struggle to scale business operations while maintaining comparative costs and quality of products. In addition, manufacturers who cannot keep up with demand risk compromising customer experience, as customers hold certain expectations regarding order lead times and delivery performance. If companies do not meet set expectations, there is potential to lose future sales and damage the company’s reputation. Small manufacturers, in particular, may struggle if demand suddenly spikes. Manufacturers with small teams and tight budgets may ﬁnd it more difﬁcult to manage existing priorities alongside new contracts. Failing to scale operations may jeopardize current contracts or future opportunities.

Technology’s importance Deploying modern business management technology, such as an enterprise resource planning (ERP) system, can ease challenges while allowing manufacturers to stay ahead of competitors, streamline operations and increase efﬁciencies to meet demands. In fact, 77% of businesses are continuing to invest more resources in technology to improve efﬁciencies and decision-making over the next year.

In order for manufacturers and supply chain leaders to build even greater ﬂexibility, they must transfer existing applications from on-premise to the cloud. Cloud-based systems offer businesses increased ﬂexibility, reliability and transparency—all aspects of a thriving enterprise. It is up to manufacturers and supply chain leaders, however, to implement the right technology solutions that address their unique business needs.

The future As manufacturing and supply chain leaders prepare for “Buy American,” it is essential to consider the upcoming challenges that they may face and invest in the right technology that will propel them forward and encourage scalability and growth. Taking the initial step in implementing new technology is a daunting task, but manufacturers will reap beneﬁts in the long-term.

ABOUT THE AUTHOR MIKE EDGETT marketing director, Sage

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6/18/21 1:35 PM

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SECTOR REPORT

SOFTWARE & TECHNOLOGY

5 TIPS FOR IMPROVING FOOD & BEVERAGE OPERATIONS BEYOND COVID-19

here have been few historical events that have had a greater impact on the food and beverage industry than the Coronavirus disease (COVID-19) pandemic. COVID-19 has brought novel urgency and complexity to how companies remain agile in the face of food item shortages or demand fluctuations in grocery products, all while ensuring a safe working environment. The act of balancing increased efficiency, agility and worker safety is also occurring at a time of unprecedented change in consumer expectations and behaviors in the grocery space, forcing companies to increase supply chain flexibility and resilience to meet ever-changing demands in response to the pandemic. As food and beverage professionals begin to consider what operations might look like on the other side of the pandemic, it’s a good opportunity to look past adjusting to the “New Normal” and consider what processes can change for the better. Here are five actions that food and beverage warehouse managers can take to help enhance efficiency, safety and flexibility beyond COVID-19.

1. Adjust and standardize processes and procedures Take a look at existing processes and procedures, especially those focused on health and safety. Determine what may need to be adjusted for today’s environment and identify where you may have gaps that need addressing. For instance, COVID-19 has brought hygiene front and center, leading to new policies across workplaces, including warehouses and distribution centers. Warehouses and distribution centers should consider the need for a structured cleaning program for their forklifts and other material handling equipment. Relying on operators to clean the equipment before or after their shift is not always efﬁcient and is only effective as long as they remember to do so. It may be worth contacting your forklift provider to see if they offer a forklift cleaning service. They may even be able to

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schedule their on-site technicians to regularly clean equipment between shifts, leaving operators more time to focus on productivity and efﬁciency. Additionally, take a look at existing training programs and see how any new safety procedures or requirements should be incorporated. New health and safety initiatives, such as sanitization and social distancing efforts, can be explained and reinforced within the structure of your existing program.

2. Keep up with routine service and planned maintenance

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When it feels like operations are moving a mile a minute, service and maintenance can often fall to the back burner while other priorities, like keeping in-demand grocery items stocked, are addressed. It’s important to resist the temptation of putting off routine maintenance to keep lift trucks in top-working condition. Keeping fleet well-maintained will ultimately increase productivity and support overall warehouse safety. Utilizing a fleet management tool can help you keep tabs on overall fleet health, as well as track maintenance records to keep service events on a regular schedule. Including these types of tools in your daily operation will enable you to proactively plan for vehicle maintenance, replacement or retirement, without negatively impacting productivity or uptime.

3. Understand forklift fleet utilization In “normal” times, you should understand how and when your forklifts are being used. Today, this understanding is even more critical as COVID-19 has reiterated the importance of preparing operations for unexpected product shortages and delays, as well as shifting consumer expectations and demands, like the rise of e-grocery. At any given time, knowing how many forklifts are in operation or sitting idle can be extremely valuable in right-sizing your ﬂeet and shifting equipment where it’s needed. Armed with this information, you can make informed decisions about

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the number and types of forklifts you have and better manage resources. You can determine if you need to rent or buy additional trucks or simply reallocate certain ones within your organization. You can also more accurately project how many forklifts you need at each facility during typical peak seasons or timeframes. The key is making decisions based on data. Utilize a fleet and operator management system to gain visibility into an array of fleet and operator information, including forklift utilization. The connected technology can give invaluable, actionable data on how and when trucks are being used, so you can ensure operators are achieving similar levels of productivity and safety as well as determine if the fleet is sized properly for efficient performance. It will also better prepare you to manage unexpected fleet allocation challenges.

Now is a good opportunity to look past adjusting to the “New Normal” and consider what processes can change for the better.

4. Leverage available technology solutions Automation and energy solutions can play a critical role in increasing efficiency and productivity, especially when it comes to cold storage environments. Utilizing lithium-ion batteries can often result in increased performance and longer runtime, and cold storage environments are no exception. Lithium-ion batteries offer greater energy efficiency over lead-acid batteries, especially in cold environments where traditional lead-acid batteries can often take a significant hit in the frigid temperatures. Since they are maintenance-free, sealed units, the need for battery watering is also eliminated. Another approach to leveraging technology is dual mode technology, which enables forklifts to switch between manual and automated operations, depending on the needs of the facility. Dual mode automation enables warehouses to take an incremental approach to deploying automation with minimal supporting infrastructure, and can function with or without a warehouse management system. Operations with cold storage environments are also considering automation to help limit time spent by operators of manual lift trucks in harsh, freezing temperatures.

5. Utilize both vertical and horizontal square footage At times throughout the pandemic, it felt like some grocery items just couldn’t be kept on shelves. During these moments of increased demand, it can be beneficial to reconsider how items are slotted throughout your warehouse to increase productivity and decrease pick times. If you have less warehouse square footage, it can be beneficial to convert to a narrow aisle or very narrow aisle format, with reach

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trucks or turret trucks specifically designed for these environments, working efficiently at height. By adding more bays or rows, warehouse managers can fully utilize floor space, an achievement that becomes even more significant when considering the cost of maintaining cold storage environments. Building up and not out to increase storage density within the existing space also eliminates unnecessary airspace that can cause cooling inefficiencies. With food and beverage products moving more rapidly, it’s important to review slotting strategies to understand how slotting different products at different heights can ultimately benefit your operation. By utilizing lift trucks that can handle heavier loads at greater heights, you can spend less time re-slotting and considering optimized placement of faster or slower moving items, especially when it feels like demand is changing at every turn. By focusing on these areas and making the needed adjustments, you will show operators and warehouse employees that you are committed to creating and maintaining a healthy and safe work environment. ABOUT THE AUTHOR Additionally, you will help to prepare ANDY SMITH your operations to director marketing maintain the flexiproduct management, bility and efficiency Crown Equipment Corp. needed to keep pace with ever-changing demands and cusABOUT THE AUTHOR tomer expectations, regardless of what MARIA SCHWIETERMAN “normal” may prove senior product to be. marketing manager,

Crown Equipment Corp.

JULY 2021 | FOOD LOGISTICS

6/18/21 2:06 PM

SECTOR REPORT

PACKAGING

BY MACKENNA MORALEZ, ASSISTANT EDITOR

PROCESSORS PALETTE:

Silver Fern Farms Stays on Top Despite Global Pandemic

Still, as consumers began to stockpile essential goods, Silver Fern here have been lots of eyes on the meat industry lately. Farms maintained its ability to scale with rising at-home shopping Innovations in alternative meats have tempted many consumers in straying away from the real product. However, demand with a new e-commerce platform to meet customer needs. The platform offers curated bundles of Silver Fern Farms beef, the Coronavirus disease (COVID-19) pandemic created a new lamb and venison right to consumers’ doorsteps. This helps the demand for the real thing, as consumers were forced to cook at company avoid any stock-out issues that may arise as the pandemic home because of state-wide lockdowns. According to a May 2020 study by Fact.MR, beef consumption is continues. “In 2020, supply chains around the world have been put under expected to maintain its dominance in the processed meat market, considerable strain at certain times of the year and it has affected growing two times during the forecasted period. Meanwhile, in certain areas more than others. Being a global food business, we North America, beef consumption is set to account for nearly 40% have been able to pivot quickly into areas that have seen spikes of the total processed meat consumption. in demand while also supporting our key customers around the One company that is changing the game in meat processing is world through the harder times of each region,” Luxton explains. Silver Fern Farms, New Zealand’s largest grass-fed lamb, beef and “Working closely with our partners in each country and utilizing venison producer that supplies the world with a high standard in our Silver Fern Farms people around the world we have been able red meat. to quickly shift supply to where the demand was coming from. The company is a forerunner in environmental sustainability, The most important part of this was to ensure that our retail using origin traceability technology to give consumers the partners around the world had product on shelf constantly and confidence of knowing exactly where their product came from. most importantly at crucial times. This included the activation of “Our end-to-end sourcing in the U.S. is a point of pride for increased stock for the U.S. environment at times of pandemic us. Silver Fern Farms ownership structure, operations and buying.” partnerships gives us control and oversight of our supply chain Despite the fact that the company is working through a global from farm right through to retailers, which is a unique point of difference vs. our competitors,” says Matt Luxton, country manager pandemic, it has been able to ensure the safety and wellbeing of its employees. Silver Fern Farms adopted social distancing measures and director of sales, USA, Silver Fern Farms. “We have direct and other health and safety requirements, stricter sanitary relationships with our retailers and communicate directly to our guidelines and implemented a more robust communications consumers to maintain our transparency and listen to the needs of process to provide up-to-date information to employees. our most important stakeholder—the family that gathers around “New Zealand’s quick response to the virus, minimal COVID-19 for a meal with Silver Fern Farms on their plates.” spread, plus our enhanced safety measures and hands-on Meanwhile, the company is making waves when it comes to coordination with partner farmers and distributors has allowed sustainable packaging. The company partnered with Sealed Air us to continue supplying people to measure and reduce its plastic use. By removing non-essential S≈Çawomir Fajer around the world with plastic liners, changing to a thinner gauge and making its material nutritious grass-fed red more recyclable, Silver Fern Farms has permanently removed 89 meat products,” says tons of plastic from its supply chains annually. In addition, its retail packs are vacuum packed for freshness, enabling a 25-day shelf life, Luxton. giving a longer window for retailers to sell and consumers to eat it, thereby reducing food waste in the process. “We want to be as recyclable as possible, but we haven’t been able to duplicate the shelf life needed in the U.S. with recyclableonly packaging yet. Although that space is quickly developing with Sealed Air, whose company strategy aligns with what we do. They work with us outside of the increase of recyclables, and together, we’re looking to cut out  Silver Fern Farms is a forerunner in environanything that is unnecessary,” mental sustainability, using origin traceability says Luxton. technology to give consumers the confidence of knowing exactly where their product came from.

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SECTOR REPORT

FOOD SAFETY

NEW INNOVATIONS IN

WAREHOUSE TEMPERATURE MANAGEMENT

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or third-party logistics (3PL) companies storing food and beverages, maintaining temperature control in warehouses is essential to ensure product quality for their customers reliant on brand reputation. Inadequate temperature management can endanger service-level agreements (SLAs) and longstanding partnerships with warehousing customers, jeopardizing multi-million-dollar contracts. Although product loss is rare, 3PLs must always be vigilant about preserving the quality of their customers’ products. Maintaining temperature control in the food and beverage space has signiﬁcantly evolved over the past few years, with new technology emerging to make smarter cooling a reality. Innovation will save warehouses money, reduce the sector’s carbon footprint and offer customers real-time visibility into their SLAs. In many 3PL warehouses throughout the United States and around the world, ambient temperatures have historically been tracked via manual processes or local data loggers (not connected to the cloud). Wired and wireless sensors have more recently emerged to augment or replace the cumbersome legacy tools and processes used for decades. To perform manual temperature checks, warehouse

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staff members record temperatures with thermometers at deﬁned time intervals. When staff members notice temperature spikes, they report these excursions to management. Thermometers can provide accurate temperature measurements; however, they only provide a snapshot in time, rely on human transcription and sometimes offer skewed data due to improper calibration. In response to issues posed by manual temperature checks, automated and remote temperature sensors have recently become popular in tech-forward warehouse operations. Internet of Things (IoT) technology enables a continuous view of ambient warehouse conditions for both staff and management. Sensor solutions are either wired or wireless, with the latter allowing for remote monitoring from anywhere in the connected world. With temperature sensors providing real-time, distributed visibility into ambient warehouse conditions, the data they gather can be used to predict and identify non-intuitive cooling trends. For instance, when a heated mass is brought into a cold storage area, the ambient temperature becomes warmer, depending on the size and temperature of the new mass. At scale, this variable effect becomes signiﬁcant when many large pallets are brought into an area. With continuous temperature data,

JULY 2021 | FOOD LOGISTICS

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SR: FOOD SAFETY continued warehouse operators can identify if these trends are occurring and optimize their transportation agreements or cooling efforts accordingly, for example, identifying “overly warm” pallets at receiving and either reject or charge more to cool and store such items.

Temperature sensors can be placed in any location throughout a warehouse, allowing for detailed temperature mapping. For instance, warehouse staff can place sensors on new pallets to ensure safe ambient conditions in the exact location of the product. With temperature sensors, warehouse operators no longer need to venture into cold storage areas to manually track temperatures. The mobility of wireless temperature sensors allow for 3PL operators to comply with complex SLAs. If a customer requests increased visibility into their product, warehouse operators can easily move wireless temperature sensors to the location of prioritized products. Most temperature sensors connect to cloud dashboards, which enables warehouse staff to export real-time temperature reports on speciﬁc pallets or sections of inventory to their customers. This feature provides product visibility throughout the supply chain to food and beverage producers and increases customers’ conﬁdence in their 3PL partners.

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FOOD LOGISTICS | JULY 2021

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Temperature sensors guarantee visibility

Maintaining temperature control in the food and beverage space has significantly evolved over the past few years, with new technology emerging to make smarter cooling a reality.

Temperature management as an energy management technique Tracking real-time temperature variations can also be a method for warehouses to reduce electricity costs. This is important because energy is the second-largest operating expense in a warehouse, only behind labor costs. Refrigeration accounts for approximately 60% of a cold storage warehouse’s electricity consumption. Real-time temperature data provides an alternative to speculative and impractical manual data recording and imprecise setpoint controls. Poor data recording abilities have historically forced warehouse operators to choose between high electricity costs and potential improper storage of customers’ products. In many cases, operators make the decision to “overcool” large sections of their warehouses to avoid product quality and compliance issues. This overcooling is both costly and avoidable. For warehouses to reduce their electricity cost associated with overcooling, operators need to know the temperatures within their warehouse at accurate, granular levels. For instance, ambient warehouse temperatures tend to vary near doors. Operators can strategically place sensors to measure temperatures in speciﬁc locations. Deploying real-time temperature monitoring sensors, operators can use temperature maps to identify “hot spots” and create a more precise warehouse cooling plan that increases efﬁciency. Operators can also use temperature mapping to better implement load shifting and reduction strategies. Since energy

costs vary throughout the day, warehouse operators can overcool their warehouses when electricity is cheap and reduce load when electricity is expensive. With granular temperature data from wireless sensors, operators can more conﬁdently implement such strategies to reduce energy costs without concerning valued customers about their products’ quality being affected.

Temperature sensing is a profitable way to increase trust with customers Innovation is greatly needed within the aging industrial cold storage space. According to JLL, the average age of a U.S. cold storage warehouse is 42 years. New technologies can be implemented in cold storage warehouses to increase efﬁciency, reduce human error and safely store food and beverages. With IoT and big data revolutionizing major industries worldwide, automatic temperature tracking has the opportunity to provide important insights into warehouse cooling, a major cost within the industrial space. Increased visibility into warehouse operations will reduce costs and assure customers that their product is being safely stored in the 21st century “smart cold storage warehouse” of the future.

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• ABOUT THE AUTHOR MANIK SURIFOUNDER CEO, Therma°

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