Food on the Move

ISEE

YARD TRUCKS BECOME AUTONOMOUS

Lazer Spot and Maersk invest in autonomous technology provider ISEE to implement driverless trucks on the yard. ISEE explains that the autonomous technology understands human decision making and delivers versatility. Read more: https://foodl.me/y4d5a9

PORT OF YANTIAN EXPERIENCES BLANK SAILS FOR 2 CONSECUTIVE WEEKS, ACCORDING TO PROJECT44 DATA

Vessel delays at the Yantian Port in Shenzhen have been worsening, and is expected to remain congested throughout June into July, based on project44’s container dwell time data. The congestion is due to tight controls over a detected COVID-19 outbreak on May 25 amongst port workers, resulting in container liners sending out client advisories on blank sailings.

By June 7, project44 found that minimum dwell times at Yantian International Container Terminals (YICT) as a port of loading was one day, while median dwell times were at most 18 days. While minimum dwell times as the port of discharge was also a day, median dwell times were far higher at 18 days. The Yantian Port kept its container yard open to vessels from May 31-June 6 and the Shekou Port (another port facility in Shenzhen) is accepting vessels within an ETA of five days from June 1.

“The recent rise in COVID-19 cases in China has resulted in a shutdown that may add to the already record cost of shipping goods out of China. The delays have already resulted in pressurizing soaring shipping prices within China due to a lack of containers and increased export demand. These high shipping costs are just one factor that may contribute to an additional looming threat to global inflation,” says Josh Brazil, VP of marketing at project44. Read more: https://foodl.me/dhutaf

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CONVOY’S NEW TMS PLATFORM GIVES SHIPPERS MORE CONTROL OVER THEIR FREIGHT

Convoy launched a new online platform that brings its on-demand truckload capacity offering with its modern transportation management system. The combined approach allows shippers to have comprehensive freight management capabilities, while ensuring the privacy of sensitive data with a sandboxed routing guide. Shippers using the platform have cut their tendering time in half and reduced freight spend by automating and standardizing their bid processes. With the launch, shippers can easily work with existing carriers and brokers while accessing more than 300,000 trucks from Convoy’s network of vetted carriers. “Many shippers still manage their freight using email, spreadsheets and paper,” says Ziad Ismail, chief product officer at Convoy. “This manual approach reduces the efficiency of every shipping process, from getting coverage and tracking loads to benchmarking carriers and making data-driven procurement decisions. The future of freight is built around solutions that combine TMS, capacity booking, shipment visibility and analytics. Today’s launch is the next natural step in this evolution, and the response has been overwhelming. Over the last few months, hundreds of customers have already adopted our new online platform.” Read more: https://foodl.me/x3msb6

Convoy

ANOTHER MARITIME DISASTER HITS CONTAINER INDUSTRY

On June 3 in Taiwan, an 86,679-gross-tonnage container ship struck a very large crane at Pier 70, Port of Kaohsiung (the fourth largest port in the world) at the container yard of Yang Ming Marine Transport Corporation. The ship is the Durban hired by Orient Overseas Container Line, which sideswiped a docked ship, the Yongyang, which has a gross tonnage of 32,720. Videos taken by workers of the pier show containers causing a large crane to collapse and another to fall over, trapping two people and causing abrasions and chest pains to another. Those trapped did not sustain serious injury and were rescued less than two hours later. The incident follows a cargo ship fire off the coast of Sri Lanka. Read more: https://foodl.me/wxn836

LOW-SPEED LOGISTICS GETS ELECTRIFIED

Club Car partners with AYRO, Inc. to create electric low-speed logistics and cargo services to fit into the gap in between full-sized trucks and small utility vehicles. The new vehicle, Club Car Current, is designed for significant agility to help logistics transportation on campus and urban environments. Current is able to reach 25 miles per hour and allows logistics providers to reach direct point-of-demand locations. The Club Car Current is available in three different bed configurations with a flat bed, pickup or van box. Special accessories such as ladder racks and lift gates further extend the use cases this vehicle can handle. With a range of up to 57 miles and 72V AC electric powertrain, the Club Car Current is uniquely positioned for use as an all-purpose work vehicle. Read more: https://foodl.me/jcdd2x

Club Car

DAT, FOURKITES TO PROVIDE VISIBILITY INTO TRUCKLOAD FREIGHT

DAT Freight & Analytics and FourKites formed a partnership to bring real-time supply chain visibility to the DAT network. The partnership will give brokers the ability to improve their customer service and strengthen relationships with carriers, all while reducing the need for check-calls and ETA management. The solution will also allow carriers to integrate tracking through ELD or tracking applications.

Furthermore, the partnership will allow customers to receive insights into the status of their loads from dock to dock. Read more: https://foodl.me/yekz4k

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TRAILER BRIDGE EXPANDS TO INTERNATIONAL SHIPPING

Trailer Bridge Inc. launches Trailer Bridge International to target global customers. The new division will offer end-to-end logistics solutions, providing a comprehensive logistics service from a single-source provider. Trailer Bridge International will tap the company’s non-Vessel Operating Common Carrier (NVOCC) and freight forwarder license and its existing fleet of marine and over-the-road assets.

The launch of Trailer Bridge International is the latest development in what has been a period of growth and rapid expansion for its parent company. This year, the company added hundreds of new logistics customers, expanded its management team with high-caliber leaders and hired dozens of new staff. Indie Bollman, VP of organizational development, launched an Upskilling Initiative in May 2020, at the height of the Coronavirus pandemic, to support the team and the company’s continued growth. Read more: https://foodl.me/q5rp6x

CARGO VISIBILITY SOLUTION DELIVERS REAL-TIME INSIGHTS INTO SHIPMENTS

Kalyakan OnAsset Intelligence Inc. launched the SENTRY FlightSafe device, designed to meet the demand for improved visibility on high-value shipments.

“This is a big milestone, 15 years in the making,” says Adam Crossno, CEO, OnAsset Intelligence, Inc. “The supply chain has been challenged over the past year, from responding to the onslaught of e-commerce and workforce shortages to the challenges of vaccine shipments. Shippers have invested in costly supply chain monitoring platforms, but all too often data feeds fall short of expectations for timeliness, level of detail and accuracy. The new SENTRY, in concert with OnAsset’s suite of monitoring technologies, resolves data quality issues and is easily deployable on a global scale.” Read more: https://foodl.me/8z3csc

REDWOOD LOGISTICS LAUNCHES OPEN DIGITAL LOGISTICS PLATFORM

Redwood Logistics says it is the first to create logistics platform as a service (LPaaS), tapping an open platform to mix and match various partners and technology to create a seamless digital supply chain operation, custom to the individual company’s preferences. This new method, springing off of software-as-a-service (SaaS) strategies, creates a single cohesive supply chain despite using different partners and platforms. Read more: https://foodl.me/uk9h78

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James Thew AdobeStock_263959295

THE RISE OF RANSOMWARE: HOW FLEETS ARE FIGHTING BACK

As a significant component of the global supply chain during one of the worst economic downturns in recent history, the transportation industry became a prime target for cybercrime over the last year. Ransomware attacks specifically began to pose a more serious threat, looking to bring fleets across the country to their knees, targeting the “easier” victims in dire need to get operations back up and running as soon as possible. Many began to realize this opportunity, as ransomware attacks rose by 715% year-over-year in the first half of 2020 alone. However, with proper measures and caution in place, the transportation sector can mitigate these attacks to limit disruption to their daily operations.

Sharon Reynolds, chief of information security officer, Omnitracs, explains how ransomware attacks are now on the rise and what fleets can do to prevent them in this expert column. Read more: https://foodl.me/3w2uma

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ACQUISITIONS AND PARTNERSHIPS BECOME MAJOR STRATEGIES FOR 3PLS

For e-commerce brands and businesses, third-party logistics (3PL) providers are nothing short of saviors, as the players operating in this sector are focused on offering best-in-class capabilities and seamless operations. With significant increase in number of orders and the need to deliver them fast and securely, 3PL market players have adopted two major strategies—acquisition and partnership. These strategies also help in expanding market reach and achieve sustainable growth in the long term. Such strategies will assist market players in gaining major market share in the next few years and help in the growth of the 3PL market as a whole.

Akshita Pacholi, content writer and researcher, Allied Market Research, details on how acquisitions are playing a major role for 3PLs in this expert column. Read more: https://foodl.me/f8fwjq

HOW BEVERAGE COMPANIES CAN ACHIEVE A SUSTAINABLE FLEET

While world leaders are focused on reducing greenhouse gas emissions and tackling climate change, businesses are also in the hot seat when it comes to developing viable sustainability initiatives. The issue is undoubtedly complex, requiring the involvement of governments, businesses and individuals alike.

Looking at sustainable fleets specifically, there are numerous steps that a beverage company can take to reduce emissions, increase route efficiency and safeguard the wellbeing of employees.

Ron Flanary, SVP, national operations, Southern Glazer’s Wine & Spirits, explains what companies can do to have more sustainable fleets in this expert column.

Read more:

https://foodl. me/7qbnk4

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THE RESTAURANT RENAISSANCE

The cold food industry—from farm to fork—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.

It was March 15, 2020. The Coronavirus disease (COVID-19) had just hit the United States, however many restaurant chains and foodservice distributors were already feeling the effects of what was still to come. Restaurants in China, France, Italy and other countries overseas had already been closed for 1-2 months now. But, here in the United States, the domino effect of the closings was just getting started.

As of March 13, 2020, more than two-thirds of restaurants (70%) experienced traffi c declines, according to Black Box Intelligence.

The National Restaurant Association (NRA) predicted the industry would lose $225 billion in sales during the next three months, eliminating as many as 7 million industry jobs.

A Technomic survey suggested that restaurant sales overall would decline 11-27% in 2020.

More than 3 million people fi led for unemployment benefi ts the week of March 16, according to the Labor Department.

Overall, more than 110,000 eating and drinking establishments in the United States closed for business—temporarily or permanently—in 2020, erasing nearly 2.5 million jobs from pre-pandemic levels, an NRA report says.

Associations and their members called on Congress for fi nancial relief.

It was offi cially last call for the U.S. foodservice industry.

But, then, things started to turn around. The lockdown measures lifted just enough for restaurants to open back up for drive-through, carry-out and delivery. Foodservice distributors re-shifted their focus to direct-to-consumer delivery, repackaging for grocery retailers and feeding the homeless. Rabobank says that every 10% drop in out-of-home food spending (e.g. restaurants, cafes, cafeterias, etc.) translated into an additional 3% in retail food spending.

The International Foodservice Distributors Association (IFDA) and FMIFood Industry Association developed a matching program that connected foodservice distributors with excess capacity (products, transportation services, warehousing services etc.) to assist food retailers and wholesalers that needed additional resources to fulfi ll demand at grocery stores.

The cold food industry—from farm to fork—joined forces in a time of crisis to continue pushing food through the chain.

International Foodservice Distributors Association

Post-pandemic, foodservice distributors are challenged with not just a driver shortage, but also

a labor shortage.

Fast forward to present day, with the lockdown measures offi cially lifted and more and more Americans getting vaccinated, the revival of the restaurant business is in full effect and sparing no expense to stay ahead of any and all supply chain disruptions.

As recovery continues, restaurant sales accelerated beginning of June, and posted its 11th consecutive week of growth and the best results in the last 6 weeks, according to Black Box Intelligence.

Foot traffi c to retail, restaurant and entertainment establishments, just in Illinois, have experienced a 120% increase since the beginning of the year, according to Zenreach, with visits to restaurants and dining establishments seeing a 110% increase in Illinois since Jan. 1.

“Foodservice distributors are forwardthinking, and many shifted quickly toward new avenues for growth like retail grocery and direct-to-consumer sales,” says Mark Allen, president and CEO of IFDA. “They streamlined operations to cut costs and adopted new processes to increase effi ciency. And, most all distributors invested heavily to help their restaurant customers navigate the pandemic by helping to set up an online presence if none existed, by working with third-party delivery companies to establish takeout, by thinking through a compressed menu most applicable to takeout and delivery and by presenting options for the best delivery packaging options.”

The challenges of a rebound

Although restaurants are open and foodservice distributors are moving product back to the regularly scheduled program, a fusion of challenges, shortages and supply chain disruptions continue to plague the industry.

Restaurants were hit harder than any other industry during the pandemic, and still have the longest climb back to preCOVID-19 employment levels, says the NRA.

For starters, the labor shortage.

Nearly 62% of fi ne dining operators and 54% of family dining and casual dining operators say staffi ng levels are more than 20% below normal, the NRA report says.

And, this talent shortage isn’t new, Allen says, “but it’s getting worse and could have far-reaching consequences. Simply put, American businesses can’t fi nd enough people to do the work and consumers will pay the price in the form of higher prices. In our industry alone, an estimated 17,500plus warehouse positions and 15,000-plus driver positions are currently open. In a recent survey of our members, 100% of respondents indicated it was diffi cult or extremely diffi cult to fi nd both warehouse and driver positions. This is despite pay well above national averages.”

The truck driver shortage is also particularly acute, he adds.

“According to the most recent data [from the American Trucking Association], more than 72% of U.S. products are moved by trucks and freight rates have more than doubled. Rising demand coupled with a reduced labor force will have a huge impact on the American economy and increases in transportation costs in many instances will be passed down to consumers in the form of higher prices,” Allen says. “In 2020, when the COVID-19 pandemic hit, it was diffi cult to train new truck drivers. Trucking companies will be left scrambling to fi ll vacancies while needing to hire 1.1 million new drivers over the next decade

due to retirements and drivers leaving the profession.”

As a result, the driver shortage is now worse than it was pre-COVID-19, making it diffi cult for foodservice distributors to staff their warehouses, says Joe Tracy, CEO, Dot Foods, Inc.

“Government funding has made it too easy for some potential employees to stay home,” he adds “Staffi ng challenges make it harder for us to provide the level of service that our customers have come to expect from us. Anticipating demand by SKU is extremely diffi cult.”

In Food Logistics’ SCN Summit: State of the Supply Chain week, Rebecca Brewster, president and COO of the American Transportation Research Insititute (ITRA) says the driver shortage is no secret.

“There’s no question the pandemic was a hit on our workforce. We had some stumbling blocks along the way as the Department of Motor Vehicles closed. We couldn’t get licensing for commercial drivers’ license permits or get full CDLs. Truck driver training schools had to shutter because of the pandemic early on. So, we built up this backlog of potential new interests in the system that’s just starting to work its way out,” says Brewster.

What’s more is, it’s a serious challenge across the supply chain, says Lowell Randel, SVP of government and legal affairs for the Global Cold Chain Alliance (GCCA), who also presented in the SCN Summit.

“It’s not just drivers. It’s also warehouse workers, transportation companies and technicians,” he adds. “When you think about the long haul, that is certainly a real challenge. On the warehousing side, we see potential challenges working in a -20° environment.”

This Transportation session asked the audience, what is your company doing to attract new talent. Tied for fi rst place was implementing fl exible work/life balance and providing the right training/upskilling.

“People are trying to fi nd that creative way to attract new talent in the industry,” Randel says. [Go to foodl.me/udf3nu to register for the SCN Summit: State of the Supply Chain sessions in on-demand].

Additionally, foodservice distributors are facing shortages of everyday products like chicken parts, corn, fl our, syrup, yeast and even packaging components such as aluminum cans and glass jars.

“Food suppliers allocated more capacity to retail customers like grocery chains during the pandemic, leaving distributors short of some products as restaurants and institutional foodservice operations open back up,” Allen adds.

On the other hand though, the great rehiring is beginning in the United States with more than 7,300 employers reporting the most optimistic outlooks since 2000 for the next three months, according to the latest ManpowerGroup Employment Outlook Survey. Employers report positive outlooks in wholesale and retail trade (+29%) transportation and utilities (+26%) and durable and non-durable goods manufacturing (+25%) markets.

“Employers are ready to bring their workers back as restrictions lift and America gets ready to for the ‘New Next’

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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 fl exibility, 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 artifi cial intelligence, multi-temperature controls and other

How technology and innovation reawaken the cold food chain

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 effi ciency 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 operations and improve customer communication will be the ones who succeed in a post-pandemic world.” The drive toward As more Americans digitization will fl ock to indoor continue to be a longdining, the term solution for foodservice companies wanting industry continues to prepare for future to struggle with demand challenges, she adds. forecasting and overall visibility into what’s solutions have become critical elements “Thanks to automated processes, next. in helping foodservice establishments and restaurants can transform themselves to

Data from J.P. Morgan and FreedomPay distributors re-emerge post-pandemic. run their operations smoothly, increase reveals a rapid shift in technology [Go to foodl.me/lrc59e to download Food their quality and provide a comfortable investment and data commerce, from Logistics’ free white paper discussing how experience for their guests,” van Hooven focus on low-tech investment and legacy supply chain visibility helps manage risk in writes. systems to touchless commerce and digital the cold food chain]. The pandemic also forced restaurant capabilities. McLane Company modernized its operators and foodservice distributors to

For instance, more than two-thirds transportation management system (TMS) innovate and develop new ways of doing (69%) of senior decision makers surveyed to provide greater visibility and fl exibility business in order to be more things to all sought to integrate digital channels and to its fl eet. people. data to create new operational models “We are taking advantage of the “Industry responses to COVID-19 have and customer touchpoints to sustain opportunity to review standard processes created several hybrid scenarios that may their business during offi ce closures, to make them more effi cient, such as not have existed before,” says James. “For staff isolation, site lockdown and hiring and recruiting teammates,” says McLane, the breadth, depth and scale of diminished physical footfall. And, 69% Daniel James, director of logistics and our operations, afforded opportunities to of the executives surveyed have placed transportation management, McLane adopt innovative practices and policies that digitalization and data integration in the Company. “The scope and scale of our we may not have considered during normal forefront. freight management systems is giving times.

“Restaurants that remained open us additional options to reposition our “For example, our ability to support slimmed down their menus during freight management capability to have customers who transitioned from dine-in the pandemic and shifted from fresh better control of inbound freight. This to customer pickup or delivery. Many of

McLane Company Earlier this year, McLane developed McLane EDGE, a digital platform designed to

help retail businesses grow in a fast-paced, ever-changing environment.

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 effi ciency of our network.”

What’s next?

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 carryout will be more sophisticated and effective; convenience stores and grocery stores will expand their foodservice offerings; more restaurant layouts will include areas dedicated to delivery and carryout; more training will be provided virtually; technology will be used more effectively to control costs and enhance management effi ciency; women will hold a larger portion of upper management jobs and more.

“As we approach the 1-year mark of pandemic-related dining restrictions, we know that virtually every restaurant in every community has been impacted. Amid an

Mid-pandemic, McLane began selling wholesale groceries directly to consumers through its new online platform called McLane Direct. McLane Company π

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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 confi dent 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 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 fi nancial 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 fi rst 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 fi ll these gaps with a qualifi ed, 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 confi dently enter the workforce as professional drivers. At its core, the

Dot Foods Inc. The driver shortage is worse now than it

was pre-COVID-19.

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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Efficiency is top of mind for the cold chain due to the perishable nature of the goods being transported.

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DRIVERLESS TRUCKS

Come to Third-Party Logistics

Driverless 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.

“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-

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 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

 Autonomous trucks help

optimize drive time.

Plus

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 fi ve days, however with AV technologies, this is reduced to three days. On the other hand, similar effi ciencies 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 effi ciency 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 traffi c. 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

“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 fl exibility 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].

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 effi cient power management.

Effi ciency 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.

DESIGN STRATEGIES FOR ELEVATING GROCERY PRACTICES

Few 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.

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 fi eld. There, in-store shoppers park near brightly lit, public, vertical circulation lobbies, and fulfi llment 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.

e Toidi

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 fl exing

The interior fl oor plans are also shifting to accommodate these trends. Stores’ sales fl oor 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 fi ngertips 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

DESIGNING FOR YARD AUTOMATION

We’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

Yard automation quickly plugs into properties (land and facility) built and configured with its requirements in mind.

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 operations. ABOUT THE AUTHOR

KYLE BERTIN

director of customer strategy and planning, Outrider

HOW SHORT-TERM, ON-DEMAND WAREHOUSING WILL HELP BALANCE SUPPLY AND DEMAND FOR INDUSTRIAL PROPERTY

One of the most talked about topics last year was the infl ux 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 infl ux of grocery delivery services required more dynamic, fl exible 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 infl ux 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

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.

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.

Knowing how hard it is to fi nd short-term space on a strict timeline, companies will sometimes opt to lease, build or purchase more warehouse space than needed. The on-demand warehousing model eliminates many bottlenecks of subletting unused space in these circumstances, incentivizing anyone with extra space to monetize quickly. This is revealing all kinds of unrealized and unused industrial potential across the United States that food logistics professionals can tap into to create a more resilient supply chain.

There’s no shortage of demand for short-

term warehousing space, but the traditional commercial real estate process makes it nearly impossible to execute efficiently. Catastrophic events and the impact on food logistics

The pandemic will hopefully be a oncein-a-lifetime event, but there are other catastrophes, such as natural disasters, that impact the food supply chain every year—sometimes in new, unexpected ways.

As seen with the pandemic and the broad range of natural disasters that made landfall in the United States last year, the specifi c circumstances of any event can affect all food industry segments differently. For logistics and supply chain professionals, it’s critical to understand what fl exible options are available at each step in the process to minimize delays and extraneous costs.

Leading up to a big storm, for example, grocery retailers stock up on food essentials—milk, bread, eggs, non-perishables, etc. If there isn’t enough staging space onsite, short-term warehousing allows stores to lease nearby space on an as-needed 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

chunker

Finding specifi c warehouse features

Another important factor to consider when choosing warehousing options in the food industry is the specifi c conditions required for the space.

Temperature-controlled spaces and cold storage options are usually top of mind, but it’s also important to know what else the warehouse space is used for. For example, if it’s shared, food items cannot share a space with other materials, such as tires or chemicals. It’s important to have full transparency into the space being leased, as well as what other purposes the warehouse serves.

Bridging the supply and demand gap for 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 effi ciently. On the supply side, there is, in fact, vacant warehouse space in the United States, but a lot of it is tied up in long-term lease agreements—even if the tenants aren’t using it. Vacant warehouse space needs to be more accessible to logistics and supply chain professionals when and where they need it.

E-commerce companies are making longterm investments in industrial property.

OFFSHORING TRENDS IN TRANSPORTATION

Since the onset of the Coronavirus disease (COVID-19) pandemic, there has been a noticeable rise in transportation and logistics providers developing offshore partnerships to benefi t 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 diffi cult 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 offi ce and front offi ce work to free up resources to accommodate shipment volumes.

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 effi ciently as possible. This prevents a client’s internal obstacles from negatively infl uencing the success of their offshoring initiative.

· 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.

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

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.

3. Rethink traditional processes

Aside from freight billing and similar back-offi ce functions, many carriers and 3PLs are now thinking outside the box and want to replicate the benefi ts received from their existing offshore teams by outsourcing additional functions. Over the past year, requests for National Motor Freight Classifi cation (NMFC)

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 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

Importance of Technology for ‘BUY Destina AMERICAN’Executive Order

Earlier 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, effi ciency and service levels are top priorities.

Specifi cally, manufacturers might 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 fi nd it more diffi cult 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 effi ciencies to meet demands. In fact, 77% of businesses are continuing to invest more resources in technology to improve effi ciencies and decision-making over the next year.

In order for manufacturers and supply chain leaders to build even greater fl exibility, they must transfer existing applications from on-premise to the cloud. Cloud-based systems offer businesses increased fl exibility, 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 benefi ts in the long-term.

ABOUT THE AUTHOR

MIKE EDGETT

marketing director, Sage

Testing for notes.

Also, in About the Author, delete extra space before marketing director

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

There 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 fl uctuations in grocery products, all while ensuring a safe working environment.

The act of balancing increased effi ciency, 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 fl exibility 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 fi ve actions that food and beverage warehouse managers can take to help enhance effi ciency, safety and fl exibility 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 effi cient 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 schedule their on-site technicians to regularly clean equipment between shifts, leaving operators more time to focus on productivity and effi ciency.

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

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 fl eet well-maintained will ultimately increase productivity and support overall warehouse safety.

Utilizing a fl eet management tool can help you keep tabs on overall fl eet 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 fl eet 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 fl eet and shifting equipment where it’s needed. Armed with this information, you can make informed decisions about

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.

romaset

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 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. Additionally, you will help to prepare your operations to maintain the flexibility and efficiency needed to keep pace with ever-changing demands and customer expectations, regardless of what “normal” may prove to be.

MARIA SCHWIETERMAN

senior product

ABOUT THE AUTHOR

ANDY SMITH

director marketing product management,

Crown Equipment Corp.

ABOUT THE AUTHOR

marketing manager,

Crown Equipment Corp.

PROCESSORS PALETTE:

Silver Fern Farms Stays on Top Despite Global Pandemic

There have been lots of eyes on the meat industry lately. Innovations in alternative meats have tempted many consumers in straying away from the real product. However, the Coronavirus disease (COVID-19) pandemic created a new demand for the real thing, as consumers were forced to cook at home because of state-wide lockdowns.

According to a May 2020 study by Fact.MR, beef consumption is expected to maintain its dominance in the processed meat market, growing two times during the forecasted period. Meanwhile, in North America, beef consumption is set to account for nearly 40% of the total processed meat consumption.

One company that is changing the game in meat processing is Silver Fern Farms, New Zealand’s largest grass-fed lamb, beef and venison producer that supplies the world with a high standard in red meat.

The company is a forerunner in environmental sustainability, using origin traceability technology to give consumers the confidence of knowing exactly where their product came from.

“Our end-to-end sourcing in the U.S. is a point of pride for us. Silver Fern Farms ownership structure, operations and partnerships gives us control and oversight of our supply chain from farm right through to retailers, which is a unique point of difference vs. our competitors,” says Matt Luxton, country manager and director of sales, USA, Silver Fern Farms. “We have direct relationships with our retailers and communicate directly to our consumers to maintain our transparency and listen to the needs of our most important stakeholder—the family that gathers around for a meal with Silver Fern Farms on their plates.”

Meanwhile, the company is making waves when it comes to sustainable packaging. The company partnered with Sealed Air to measure and reduce its plastic use. By removing non-essential plastic liners, changing to a thinner gauge and making its material more recyclable, Silver Fern Farms has permanently removed 89 tons of plastic from its supply chains annually. In addition, its retail packs are vacuum packed for freshness, enabling a 25-day shelf life, 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 anything that is unnecessary,” says Luxton.

Still, as consumers began to stockpile essential goods, Silver Fern Farms maintained its ability to scale with rising at-home shopping demand with a new e-commerce platform to meet customer needs. The platform offers curated bundles of Silver Fern Farms beef, lamb and venison right to consumers’ doorsteps. This helps the company avoid any stock-out issues that may arise as the pandemic continues. “In 2020, supply chains around the world have been put under considerable strain at certain times of the year and it has affected certain areas more than others. Being a global food business, we have been able to pivot quickly into areas that have seen spikes in demand while also supporting our key customers around the world through the harder times of each region,” Luxton explains. “Working closely with our partners in each country and utilizing our Silver Fern Farms people around the world we have been able to quickly shift supply to where the demand was coming from. The most important part of this was to ensure that our retail partners around the world had product on shelf constantly and most importantly at crucial times. This included the activation of increased stock for the U.S. environment at times of pandemic buying.” Despite the fact that the company is working through a global pandemic, it has been able to ensure the safety and wellbeing of its employees. Silver Fern Farms adopted social distancing measures and other health and safety requirements, stricter sanitary guidelines and implemented a more robust communications process to provide up-to-date information to employees. “New Zealand’s quick response to the virus, minimal COVID-19 spread, plus our enhanced safety measures and hands-on coordination with partner farmers and distributors has allowed us to continue supplying people around the world with nutritious grass-fed red meat products,” says Luxton.  Silver Fern Farms is a forerunner in environ-

mental sustainability, using origin traceability technology to give consumers the confidence of knowing exactly where their product came from.

Sławomir Fajer

NEW INNOVATIONS IN WAREHOUSE

TEMPERATURE MANAGEMENT

For 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 signifi cantly 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 staff members record temperatures with thermometers at defi ned 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 signifi cant when many large pallets are brought into an area. With continuous temperature data,