Food Logistics July/August 2024

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NURTURING A SUSTAINABLE FOOD LOGISTICS LANDSCAPE

Here’s how the food logistics space can achieve and nurture a circular supply chain.

Why partnerships with 3PLs can enhance resiliency and operational continuity.

St. Onge Company: Labor management programs don’t have to be complicated to be effective.

Vanderlande: The nature of grocery SKUs leads to inevitable challenges.

Dematic says omnichannel has a higher lifetime value. Here’s why.

Key

FOR STARTERS BY MARINA MAYER,

MID-YEAR REVIEW OF FOOD LOGISTICS LANDSCAPE

In the July/August 2023 issue of Food Logistics, I wrote about how food supply chains should brace for impact. While supply chains started to heal, the damage was done.

Inflation, rising fuel costs, labor shortage, product shortage and a slew of other disruptions continue to compound the supply chain landscape. Possible port strikes on the East Coast, natural disasters such as hurricanes and forest fires, cargo fraud and continued political tensions overseas all hold strong, forcing many professionals to be on their toes and in position 24/7. And, let’s not forget, it’s Election Year!

Now, more than halfway through 2024, it’s safe to say that most of this still rings true.

A CargoNet survey recorded 771 theft incidents in Q2 of 2024, representing a 33% increase compared to the second quarter of 2023. However, the U.S. online grocery market finished June with $7.7 billion in monthly sales, an 8% increase over last year, according to a Brick Meets Click study

An Aras article shows that nearly three out of four companies say they feel pressured by customers, investors, and even their own work-

force to operate more sustainably. A study released by Carbon Direct and Wakefield Research shows that only 4% of companies survey are lacking a plan for climate action.

Global shipping costs surged in the first half of 2024 and average container prices continue to rise, according to Container xChange, but U.S. container import volume continues to show robust growth, with June volumes increasing 10.4% over the same month last year, according to Descartes Systems Group.

And while cargo thieves and natural disasters disrupt how cold food products move through the chain, emerging technologies such as blockchain, artificial intelligence, machine learning, track-and-trace solutions and more help companies re-write the narrative to fulfill the cold chain journey.

Earlier this year, I dubbed 2024 the Year of the Rabbit. According to Chinese culture, the Rabbit is a symbol of longevity, peace and prosperity. I’m not quite sure we’re there just yet, but I do believe it’s also the Year of Rebuilding Supply Chains and Embracing New Relationships.

With every challenge comes an opportunity for innovation. Here’s to Continued Innovation!

EDITORIAL

Editor-in-Chief Marina Mayer mmayer@Iron.Markets

Managing Editor Alexis Mizell-Pleasant amizell@Iron.Markets

AUDIENCE

Audience Development Manager ...............................Angela Franks

PRODUCTION

Senior Production Manager Cindy Rusch crusch@Iron.Markets

Art Director Flatworld Solutions

ADVERTISING/SALES

Brand Director Jason DeSarle jdesarle@Iron.Markets

Account Executive Brian Hines bhines@Iron.Markets

Account Executive Jay Gagen jgagen@Iron.Markets

Account Executive Mark Pantalone mpantalone@iron.markets

IRONMARKETS

Chief Executive Officer.......................................................... Ron Spink

Chief Revenue Officer Amy Schwandt VP, Finance Greta Teter

VP, Audience Development Ronda Hughes VP, Operations & IT Nick Raether VP, Demand Generation & Education Jim Bagan

Corporate Director of Sales Jason DeSarle

Brand Director, Construction, OEM & IRONPROS Sean Dunphy

Content Director Marina Mayer Director, Online & Marketing Services Bethany Chambers

Director, Event Content & Programming Jess Lombardo

CIRCULATION & SUBSCRIPTIONS

P.O. Box 3605, Northbrook, IL 60065-3605 (877) 201-3915 | Fax: (847)-291-4816

circ.FoodLogistics@omeda.com

LIST RENTAL

Sr. Account Manager Bart Piccirillo | Data Axle (518) 339 4511 | bart.piccirillo@infogroup.com

REPRINT SERVICES Brian Hines (647) 296-5014 | bhines@Iron.Markets

Published and copyrighted 2024 by IRONMARKETS. All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording or any information storage or retrieval system, without written permission from the publisher.

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Prioritizing Sanitization in Cold Food Processing

Robert DiDomenico, VP food and beverage at ABM , explains the basics of food sanitization are relatively clear cut on paper. But in practice, this critical process is anything but basic. It is arguably one of the most—if not “the most”—important elements in the cold process food chain. The CDC estimates that each year, roughly one in six Americans (or 48 million people) get sick, 128,000 are hospitalized, and 3,000 die of foodborne diseases.

With the right people in place, an eye on continuous improvement and the willingness to embrace new and sustainable methods, facilities can realize the dream of better compliance, increased efficiency and safe food production.

Scan the QR code to learn more https://foodl.me/btky5lvp

Navigating Compliance with a Digital Thread

Jim Bresler, director of product management, food and beverage at Plex , says food and beverage manufacturers face a constant challenge in keeping pace with ever-evolving regulations surrounding packaging. Embracing a digital thread allows food and beverage manufacturers to comply with regulatory guidelines and ensure product quality. As regulatory bodies increasingly monitor carbon and climate emissions, organizations will be required to monitor product lifecycle and verify compliance. Additionally, consumer preferences continue to drive the demand for sustainable packaging. Manufacturers should take advantage of this moment to invest in the proper technology that ensures products meet these guidelines. Finally, as organizations implement a digital thread, they will recognize the cost reduction benefit of identifying upcycling opportunities, reducing waste and increasing efficiency.

Scan the QR code to learn more https://foodl.me/lpp05hk0

Using Emering Technologies to Anticipate Market Turmoil

Manufacturers are facing supply chain disruptions from all angles. From material shortages and shipping delays to economic uncertainty and rapidly changing demand, planning ahead in such a volatile market is challenging. While none of these variables are wholly within manufacturers’ control, logistics and operations professionals have become relatively adept at using tech to anticipate market turmoil.

Ryan McMartin, product marketing manager at Parsec Automation , says MES platforms, artificial intelligence, machine learning and other specially designed technologies can help logistics teams get one step closer.

Scan the QR code to learn more https://foodl.me/7ggkjrj9

Refrigerated Supply Chains Reduce Waste

A new study by the University of Michigan, supported by the U.S. National Science Foundation and Carrier Global Corporation, found that nearly half of the 1.3 billion tons of global food wasted each year could be prevented with fully refrigerated food supply chains. The study also concluded that fully refrigerated supply chains have the potential to reduce global food waste-related emissions of climatewarming greenhouse gases by 41%.

Scan the QR code to learn more https://foodl.me/asxg99p2

AI-Driven CO2 Analytics

RELEX Solutions introduced new CO2 Analytics functionality that automatically tracks and reports the CO2 emissions of purchased products.

Shattering Glass Ceilings

Registration is open for the Supply Chain Network’s third annual Women in Supply Chain Forum , an in-person event designed to bring together CEOs, Presidents, Partners, VPs and Directorlevel decision makers at shippers, DCs, warehouses and 3PLs to learn, grow, network and more.

The 1.5-day agenda will consist of panel discussions, breakout sessions, speed dating-type networking, a discussion with our four overall Women in Supply Chain winners and Supply Chain Jeopardy, an interactive game that will quiz on everything from transportation and warehousing to software solutions, the history of women in supply chain and more.

Scan the QR code to learn more https://foodl.me/o76pcoo2

“Consumers are increasingly seeking sustainable products and favoring retailers that demonstrate a commitment to sustainability. Reducing CO2 emissions, especially for retailers given how much emissions purchased goods create, exhibits the importance of reducing carbon footprint,” says Svante Göthe, head of sustainability, RELEX Solutions. “However, acquiring CO2 emission factors often requires big investments in terms of time and effort. Our aim is to simplify and reduce the amount of time it takes to calculate emissions and provide accurate visibility into the carbon footprint of purchased goods.”

Scan the QR code to learn more foodl.me/uo1std7w

Empowering F&B in Regulatory Standards

In the food and beverage (F&B) industry, regulatory compliance stands at the cornerstone of safety and trust. In the past, the concept of food safety has focused on product quality, but now, there’s an increased emphasis on safeguarding consumer health. This is partly due to the Food and Drug Administration’s (FDA) new push to prevent contamination instead of simply responding to it. Additionally, the World Health Organization (WHO) has estimated unsafe food causes nearly 600 million illnesses and 420,000 deaths globally each year. Unsafe food can devastate consumers and damage a company’s reputation and bottom line, explains Geoff Olsen, lead, consultant engagement director, Catena Solutions.

Scan the QR code to learn more https://foodl.me/jhfwsorw

Collision Detection Technology

Geotab Inc. leverages artificial intelligence (AI) and advanced data intelligence to launch new collision detection technology that further enhances predictive insights.

“Geotab’s Safety Center shifts the focus from reacting to incidents to proactively preventing them,” says Sabina Martin, VP, product management at Geotab. “The combined near real time and predictive insights provides improved learning from historical incidents, risk identification and better opportunities for preventative action. These innovative advancements in the Safety Center will ultimately help improve driver safety, and performance outcomes.”

Scan the QR code to learn more https://foodl.me/3boi8fkj

Remote Tracking of Assets

DPL Telematics released the AssetView Stealth Tracking System, an advanced solution for wireless monitoring and remote tracking of any powered or unpowered asset to improve logistics, manage inventory and curb theft.

“We are excited to introduce the fourth member of our revolutionary AssetView family of devices. The Stealth is the first tracking solution of its kind to offer such a large combination of technologies in a simple final product, delivering long battery life without sacrificing two-way communication and real time alerts,” says Tony Nicoletti, CEO at DPL Telematics. “Coupled with intelligent device tamper detection, customers know immediately if the unit is moved along with a mapped location of the alert. It is a new layer of security built into an easy-to-use tracking solution for any asset to decrease loss exposure and better manage inventories.”

Scan the QR code to learn more https://foodl.me/nxnresgg

Food Safety Compliance Services for Manufacturers

Food manufacturing facilities and food importers can now benefit from three new services introduced by J. J. Keller & Associates , Inc. to help ensure compliance with the industry’s complex regulations and standards.

“Because of how important safe food practices are to the public, food manufacturers and importers face an especially demanding set of requirements to stay in business,” says J. J. Keller food safety consultant Francesca Vesce. “To help these companies get, and keep, their operations in compliance, we’ve developed a series of consulting services that can assess their current level of compliance and provide clear recommendations for addressing areas of opportunity before an audit or incident occurs.”

Scan the QR code to learn more https://foodl.me/kou6kh32

Cargo Thieves Becoming More Discriminatory

CargoNet , a Verisk business, recorded 771 theft incidents in Q2 of 2024, representing a 33% increase compared to the second quarter of 2023. However, theft activity decreased by 10% from all-time highs established in Q1 of 2024.

CargoNet’s analyst team noted slight behavioral shifts in the country’s most prolific organized cargo theft groups operating in Southern California. Across the board, these groups evolved to be more discriminating in their shipment targets, stealing high-value freight like motor oil and computer electronics less frequently.

Scan the QR code to learn more https://foodl.me/30ur50xt

Sensors to Unlock Transparency

Evigence launched FreshSense, new sensors with patented chemistry-embedded QR codes that provides food companies and cold chain leaders data-driven freshness insights at the case or unit level.

The multi-mode scanning capabilities include augmented reality (AR) mobile scanning and automatic productionline vision, and immediately uploads the scanned sensor data to the Evigence Cloud for analysis and visualization that generates in-depth dashboards powered by artificial intelligence (AI).

Scan the QR code to learn more https://foodl.me/pzmxmr16

China Container Prices Double, Leasing Rates Triple

Freight Recession Raises Costs

The overall marginal costs of operating a truck hit $2.270 per mile in 2023. While the increase was only 0.8% over the previous year, when surcharge-protected fuel costs are excluded, marginal costs rose 6.6% to $1.716 per mile, according to data collected by the American Transportation Research Institute (ATRI)

Overall, 2023 expenses rose moderately across most categories, with average costs across line-items increasing at less than half the rates experienced during 2021 and 2022. Truck and trailer payments grew by 8.8% to $0.360 per mile, driver wages grew by 7.6% to $0.779 per mile, and repair and maintenance costs grew by 3.1% to $0.202 per mile. The exception to this trend was truck insurance premiums, which grew by 12.5% to $0.099 per mile after two years of negligible change.

Scan the QR code to learn more https://foodl.me/rt4fe7xn

The average container prices in China have reached its highest in two years, at $3,600 for 40-foot-high cube cargo-worthy containers in China. These prices were somewhere around $1,700 in March-April, indicating a 112% increase in a span of two months. While the average container prices (for purchasing containers) are on a significantly upward trend, the average one-way pickup charges (for leasing containers) continue to develop at a staggering rate.

“While prices and rates are significantly up, trading volumes have decreased as buyers are becoming more cautious. This trend potentially indicates a potential reversal of prices in the near future, as the market adjusts to the current disruptions and the high levels of volatility,” says Christian Roeloffs, cofounder and CEO of Container xChange

Scan the QR code to learn more https://foodl.me/5wlzl3ep

Next-Gen Reefer Container Monitoring Solution

ORBCOMM’s latest generation of reefer container monitoring solution has been streamlined to help simplify installation, deployment and management of reefer Internet of Things (IoT) applications. It features the new CT 3600 reefer monitoring device, which can be installed in significantly less time than ORBCOMM’s previous solution and is quick to deploy without sacrificing performance and coverage.

Scan the QR code to learn more https://foodl.me/zaf0ltpk

Automatic Fuel Savings Detection

Motive launched Missed Savings, what is said to be an industry-first feature designed to help Motive Card customers reduce fuel costs by up to 5% or more. This data-driven approach alerts drivers of the lowest price fueling locations.

“The cost of doing business has never been more expensive— in large part due to high and varying fuel costs. On top of that, spend management data lives in hard-to-access, disparate systems that are time-consuming to analyze. Businesses are wasting millions of dollars on missed fuel savings per year because they don’t have access to the data needed to make smarter fuel decisions,” says Hemant Banavar, VP of financial products at Motive. “With this new offering, Motive is the only fleet card delivering automated insights to empower managers to control spend, better manage and coach drivers, and achieve up to 5% or more in savings. With fuel expenditure for the trucking industry around $134 billion annually, we estimate the trucking sector alone missed out on approximately $6.7 billion in potential fuel savings last year.”

Scan the QR code to learn more https://foodl.me/eu0jd708

East Coast Stike to Effect West Coast Ports

ITS Logistics’ U.S. Port/Rail Ramp Freight Index reveals that all markets have stabilized for ocean and rail container demand, yet supply chain professionals still need to be aware of significant volumes entering the West Coast via Seattle-Tacoma (SEATAC) and Los Angeles and Long Beach (LA/LB) and for inland point intermodal (IPI) legs to be canceled.

“Port and rail operations have normalized, and volumes have reduced due to extended dwell times for containers in Asia awaiting export,” says Paul Brashier, VP of global supply chain for ITS Logistics. “Despite this positive news, we are keeping a close eye on the current conditions, which could quickly change in the coming months due to the potential for International Longshoreman Association (ILA) strikes at U.S. East Coast ports. The potential impact of these strikes on the US West Coast ports is a matter of concern. It’s crucial for supply chain professionals to monitor this situation closely and be prepared for any potential disruptions.”

Scan the QR code to learn more https://foodl.me/faypwbpz

AI For Transportation in Food & Bev

Tom Moore, partner of ProvisionAI , explains how distribution is often an afterthought when deciding how the plant should operate. But this may create a very real dissonance, significant additional cost, and drive customer service in an unacceptable direction. What approaches can be leveraged to achieve a smooth, cost-effective flow and eliminate the dissonance between production and distribution?

Food and beverage plants can significantly benefit from creating an executable distribution plan, he explains. “Good companies plan; great companies execute the plan.” By executing the plan, these companies can significantly reduce their costs, improve order fill, and drive significant value from high–payback technology tools.

Scan the QR code to learn more https://foodl.me/mizxs4ar

Supply Chain Technologies to Navigate Disruption

The 2024 State of Logistics Report produced for the Council of Supply Chain Management Professionals (CSCMP) by Kearney and presented by Penske Logistics shows that U.S. supply chains pressured by global economic volatility, including inflation, climate change and geopolitical conflicts, are enhancing their capabilities by investing in supply chain technologies to accelerate resilience, agility and flexibility to navigate current and future disruption.

The global economy is expected to experience sluggish 2.5% growth across 2024, which would represent the slowest halfdecade of output in 30 years. Demand has not yet fully recovered, with myriad forces at play, and new growth engines will need traction before the tide turns.

Scan the QR code to learn more https://foodl.me/xisl5yvi

Tech Transforms U.S.-Mexico Nearshoring

Falling Diesel Prices Improve Trucking

FTR’s Trucking Conditions Index rose in May to 2.24 from the -1.95 reading from April due to falling diesel prices and a freight rate environment that was less negative for carriers.

“Trucking is in the initial stages of a recovery, although it might be months before market participants perceive much change. A big piece of May’s positive TCI was lower fuel costs, but freight rates also were much less unfavorable for carriers than usual since the fourth quarter of 2022. We expect rates to be mostly stable overall through late this year with spot rates leading the way. However, the capacity overhang remains large and will delay anything that could remotely be called a rebound,” says Avery Vise, FTR’s VP of trucking.

Scan the QR code to learn more https://foodl.me/ulsjb152

The U.S.-Mexico Foundation (USMF) and the American Chamber/ Mexico formed Bridge49: The Nearshoring Tech Alliance, which brings together six leading B2B technology companies to leverage cutting-edge technology and innovation to tackle critical industry challenges in logistics, procurement, supply chain tech, modern finance, and manufacturing in the U.S.-Mexico trade lane.

“Nearshoring is the future of U.S.-Mexico trade, and Bridge49 is dedicated to paving the way with innovative solutions. By uniting top tech companies from both nations, we are creating a powerhouse of knowledge and resources that can tackle the unique challenges of cross-border trade,” says Enrique Perret, director of the U.S.-Mexico Foundation and Chair of Bridge49: The Nearshoring Tech Alliance.

Scan the QR code to learn more https://foodl.me/5pofmapa

Complexities of Alcohol Transportation

Alcohol transportation is a notably intricate and unique part of the logistics industry, featuring a blend of regulatory obstacles, operational challenges and promising trends and opportunities that companies can capitalize on. The global alcoholic beverages market size is projected to grow from $1.6 billion in 2023 to $2.2 billion by 2033 at a compound annual growth rate (CAGR) of 3.2% during the projected period, according to a report published by Spherical Insights & Consulting . However, to secure market share, Mike Lindquist, director of market research, A. Duie Pyle , says companies must conduct extensive research, navigate the various state-specific laws, obtain permits and forge strategic partnerships with brewers and wholesalers.

Scan the QR code to learn more https://foodl.me/5y679p92

LTL Demand and Capacity Remain Stagnant

Data Project Speeds Cargo Delivery

The Governor’s Office of Business and Economic Development (GO-Biz) announced a $7.875 million grant for the Port of Long Beach’s digital platform, which is designed to speed cargo deliveries nationwide.

Funding is expected to help build out a variety of functions. including export and rail cargo visibility, user authentication and data security, the exchange of data between foreign ports, truck appointments and a number of future project enhancements that will enhance operational efficiency and customer service.

The cloud-based system is anticipated to be compatible with similar data-sharing platforms across the maritime logistics industry, including at major California ports , supporting improved supply chain resilience, goods movement efficiency, emissions reductions, and economic competitiveness.

Scan the QR code to learn more https://foodl.me/fbn05eie

The latest release of the TD Cowen/AFS Freight Index from AFS Logistics and TD Cowen shows the uneven effects of continued demand and capacity imbalances playing out across multiple transportation modes. While LTL carriers are holding the line with pricing discipline, parcel rates are showing the effects of aggressive discounting and excess truckload capacity continues to suppress a pricing recovery.

The truckload rate per mile index established a floor in Q2 2023 of 4.3% above the January 2018 baseline, and Q3 2024 is expected to be the sixth straight quarter with rates bouncing along that bottom. The index projects rate per mile to drop slightly to 4.7% in Q3 2024, a 0.3% decline from the 5.0% mark of the previous quarter. In Q2 2024, average linehaul cost per shipment also declined, down 2.7% quarter-over-quarter (QoQ), as the share of short-haul shipments remained relatively flat. For additional context, although Q2 linehaul cost per shipment was down 14% year-overyear (YoY), it was still 11% higher than pre-pandemic levels.

Scan the QR code to learn more https://foodl.me/smvpaasu

Port of Long Beach

NURTURING A SUSTAINABLE FOOD LOGISTICS LANDSCAPE

Moving food products through the supply chain takes more than just temperature control. Here’s how the food logistics space can achieve and nurture a circular supply chain.

Acircular supply chain consists of products and its parts being returned or processed so they can be repaired, resold, refurbished or recycled. It involves minimizing waste, maximizing resources and obtaining resiliency, safety and sustainability. It also comes in many forms, impacting the cold chain in various ways.

While some progress has been made in integrating sustainability, many compa-

nies have an opportunity to better reap the benefits by further developing such programs, according to new research from The Conference Board

That’s because moving goods and ingredients within the supply chain efficiently and quickly is critical to today’s food manufacturers, according to Alex Hempel, senior director of retail supply chain VST, ORBIS Corporation.

“The circular economy concept—which

is based on a continuous flow of product in the value circle—is the future of a successful, sustainable supply chain. It focuses on the 3Rs, designing out waste (reduce), keeping products in use (reuse) and regenerating natural resources (recycle/repurpose),” adds Hempel.

Case in point: obtaining and nurturing a circular cold chain is imperative to the future of food logistics.

To boot, nearly three out of four

Obtaining and nurturing a circular cold chain is imperative to the future of food logistics.

companies surveyed by Aras say they feel pressured by customers, investors, and even their own workforce to operate more sustainably.

Here’s a breakdown of the different ways the cold food chain can move product from Point A to Point B in the most sustainable way possible.

Planning for zero-emissions

One way to reach a circular supply chain is to plan for and implement a zeroemissions trucking fleet.

The Department of Energy and the

Department of Transportation released a detailed charging infrastructure plan to support the wide-scale adoption of zero-emission heavy-duty vehicles across the United States. The plan includes four phases of implementation between 20242040 and guides federal and state government and private-sector investments to develop charging infrastructure.

“Electric trucks are the future of the trucking industry,” says Jason Mathers, AVP for Environmental Defense Fund (EDF)’s zero-emission trucks initiative. “Hundreds of fleets are operating these

trucks today or have them on order. This plan prioritizes investments in charging infrastructure to match this path of growth. Today’s announcement meets this moment with a long-term plan that should give fleets the confidence to scale their electrification efforts and state policymakers a roadmap to support the zero-emission transition.”

This announcement comes on the heels of a $3 billion commitment from the Environmental Protection Agency (EPA) to fund the transition to zero-emission freight trucks, marine vessels and port handling equipment and the infrastructure to fuel them at U.S. ports.

Two new analyses from EDF show strong growth in both electric vehicle (EV) sales and manufacturing investments in the United States.

In the last three years, the United States has had more private investments in EV manufacturing than any other region of the world. Since 2021, the industry has seen substantial changes to U.S. policies supporting EV manufacturing and jobs, including both production and consumer tax credits under 2022’s Inflation Reduction Act.

“Despite some recent suggestions to the contrary, actual data show the U.S. markets for electric vehicles are flourishing. Sales are better than experts had very recently expected they would be, and the U.S. is now leading the world race for new EV manufacturing investments,” says Ellen Robo, manager of transportation and clean air policy at EDF.

Yet, with more than half of fleets (65%) feeling environmental pressure to transition to alternative energy, many are operating a multi-energy fleet or are about to begin their transition while still experiencing a lack of awareness and trustworthy guidance, according to survey results from Teletrac Navman. In fact, two-thirds of global fleets are currently operating PHEV, BEV or FCEV vehicles in their fleet.

“Fleets of all sizes and scales are already planning and navigating their transition, but we know there simply isn’t enough credible information out there to help simplify what is a complex move for any business. Alternative energy is still

such a new concept for many fleet operators and the process of switching can feel overwhelming,” says Alain Samaha, global president and CEO of Teletrac Navman.

Gasoline, diesel, natural gas and propane continue to be the primary fuel and technology choices for U.S. commercial trucks, with the population of advanced technology near-zero emissions diesels increasing 4% over 2022, according to the Engine Technology Forum (ETF).

“As more of the nation’s trucking fleet adopts the latest generation of advanced diesel and natural gas technology, communities are experiencing cleaner air and lower greenhouse gas emissions. And truckers save on their fuel expenses, too. Previous research showed the significant climate, fuel savings, and clean air impacts in the U.S. of the newer generation (2010 and later model year) of advanced diesel in Class 3-8 heavy-duty trucks. From 2010 through 2030, this generation of diesels will save approximately 1.3 billion tons of carbon dioxide emissions, 130 billion gallons of fuel, yield a cumulative savings of 1 million tons of particulate matter and 18 million tons of nitrogen oxide emissions. These benefits will be even greater once new emission regulations are implemented for new vehicles starting in 2027,” says Allen Schaeffer, executive director of ETF.

However, an emerging trend in converting food residues into biodegradable disposable items or part of the product has grown in the last five years.

Based on representative network loads and routes from Ryder’s dedicated fleet operations in today’s market and other factors, data shows the annual total cost to transport (TCT) by EV vs. diesel is estimated to increase across the board—ranging from up to 5% for a light-duty transit van to as much as 114% for a heavy-duty tractor (depending on the geographic area). And, for a mixed fleet of 25 light-, medium- and heavy duty vehicles, the analysis shows an increased TCT of up to 67% for an all-electric fleet.

“While Ryder is actively deploying EVs and charging infrastructure where it makes sense for customers today, we are not seeing significant adoption of this technology,” says Robert Sanchez, chair-

One emerging trend pertaining to circular economy entails converting food residues into biodegradable disposable items.
MIT Center for Transportation and Logistics
Organizations must start by understanding the primary purpose of starting a sustainable journey, what they want to get, and how they want to measure it.

man and CEO of Ryder. “For many of our customers, the business case for converting to EV technology just isn’t there yet, given the limitations of the technology and lack of sufficient charging infrastructure. With regulations continuing to evolve, we wanted to better understand the potential impacts to businesses and consumers if companies were required to transition to EV in today’s market.”

However, fleets list unstable fuel costs, equipment/vehicle maintenance and purchasing new equipment/vehicles as their Top 3 expenses, according to the Teletrac Navman study.

That’s because transitioning to zero-emissions comes with a price tag.

A report from American Transportation Research Institute (ATRI) concludes that relying on battery electric vehicle (BEV) to decrease CO2 emissions is nearly six times more expensive than using renewable diesel (RD).

Overall, ATRI estimated that a tran-

sition to BEV for long-haul trucking will cost over $1 trillion in electric infrastructure and vehicle purchase costs over 15 years. However, to achieve similar CO2 benefits with RD, ATRI estimates a price tag of $203 billion, a significant cost savings for achieving the same environmental benefits. Since RD is considerably more scalable than BEV and can be deployed immediately in trucks without modifications, it is likely that CO2 benefits using RD can be achieved on a much shorter timeline than with a BEV transition.

In fact, full electrification of the U.S. commercial truck fleet would require nearly $1 trillion in infrastructure investment alone, according to a new report released by the Clean Freight Coalition (CFC).

The study forecasts a realistic infrastructure buildout for the electrification of medium- and heavy-duty commercial vehicles, exposing what the CFC calls

“a massive investment gap” as state and federal policymakers mandate increased adoption rates of battery-electric commercial vehicles. Preparing today’s commercial vehicle fleet for electrification would require the commercial vehicle industry to invest upwards of $620 billion in charging infrastructure alone, including chargers, site infrastructure and electric service upgrades. And, utilities would need to invest $370 billion to upgrade their grid networks to meet the demands of just commercial vehicles.

This nearly $1 trillion expenditure does not account for the cost of new battery-electric trucks, which according to market research can be 2-3 times more expensive than their diesel-powered equivalents, according to CFC. For example, a diesel Class 8 truck costs roughly $180,000, while a comparable battery-electric truck costs over $400,000. While medium-duty vehicles will face fewer roadblocks, economic and

operational constraints make electrification very challenging for the heavy-duty segment.

“Electrification means focusing on the vehicle segments that are easier first; it means that we have to look at how fleets operate and potentially adjust; it means that we need better cooperation and planning across industries and governments; and it requires an openness to alternative technology paths to decarbonizing the heavy-duty segment,” says Roland Berger, senior partner, Dr. Wilfried Aulbur, and author of the report. “It also is clear that an industry with a yearly turnover of about $800 billion and a profit margin around 5% cannot invest $620 billion without financial support or a significant increase in freight rates.”

Packaging for the future

Supply chain packaging that doesn’t flow efficiently within a supply chain and can’t be consistently filled, stored, shipped,

used or returned for replenishment and reused in a continuous cycle is a major challenge to building a circular food chain, says Hempel. Annual packaging costs, transportation inefficiencies and packaging not specially designed to nest or collapse when empty continue to pose bottlenecks.

@songwut.stock.adobe.com

In response, ORBIS launched the reusable Odyssey Pallet, which travels more than 400 trips in the supply chain, compared to 11 trips for a wood pallet, helping reduce waste associated with single-use pallets, decreasing automated system downtime related to inconsistent packaging and improving plant cleanliness.

ORBIS also launched packaging life-cycle assessments (PLCAs), designed to help companies calculate the impact reusable packaging can have on the environment.

“Using life-cycle assessments to compare reusable and single-use packaging, ORBIS applies data-driven analysis to help customers reduce their overall environmental impact in terms of greenhouse gas (GHG) emissions, water, solid waste and energy usage. This unbiased analysis provides companies with measurable data as they make the switch to reusables,” says Hempel.

ORBIS also launched a series of totes designed for use in automated systems, complete with automation locators to ensure proper tote placement and hybrid bottoms.

Another emerging trend entails converting food residues into biodegradable

disposable items. The use of pineapple peels, corn, avocado pits, and other materials, for instance, grows in the United States and Latin America to reduce pollution. Alternative materials such as bamboo, sugarcane, or cassava, which are biodegradable and natural, are used to package food.

“Despite a growing trend to improve the food supply chains from farm to fork and back to farm, scalability is the biggest challenge,” says Christopher Mejia-Argueta, research scientist and director of the Food and Retail Operations Lab, MIT Center for Transportation and Logistics. “Supply chain coordination requires diverse stakeholders to align efforts from farmers to consumers and from consumers upstream to recover edible food. However, this coordination is challenging because it requires collaboration, synchronization, and stakeholder trust.”

Protecting the food chain

There are a few key drivers to creating a circular food chain, but one in particular is how to make participation in a circular economy economically viable, says John Reich, scientific program director, Foundation for Food & Agriculture Research (FFAR).

“Some solutions would require longer-term investments to get there and understanding how any solutions can integrate into existing structures and supply chains is also important. Creating solutions that are efficient and sustainable is also important,” says Reich.

ORBIS Corporation released the Odyssey 3-runner pallet to enhance dimensional consistency, transportation and hygienic.

FFAR is awarding $954,556 to Colorado State University (CSU), Cornell University, Glynwood Center for Regional Food and Farming, NY Farm Viability Institute and The Rockefeller Foundation to better understand and investigate food procurement.

Last year, in partnership with the Biosciences team at Schmidt Sciences, FFAR hosted the Feedstocks of the Future Convening, bringing together leading experts in the field to identify challenges and opportunities for a circular U.S. bioeconomy. One of the major challenges identified was determining feasible and economically viable uses for agricultural and food industry feedstocks.

“Obtaining homogeneous feedstocks that have sufficient quantity to be a feedstock and collecting and processing the feedstocks are some (but not the only) of the challenges,” adds Reich. “Some of this relates to the supply chain for these feedstocks, as this would need to be developed. Developing new potential

products with new potential feedstocks is a first step— scientific solutions must also be scalable.”

For its part, the Food Systems Countdown Initiative (FSCI) identified a framework composed of 50 indicators that monitor agriculture and food systems at a global level, using existing data to enable immediate action. Repurposing existing data, rather than carrying out new research means policymakers have quick access to relevant information.

“You can’t manage what you don’t measure. That’s why we need a monitoring system that shows strengths and weaknesses at national, regional and global levels across all parts of agriculture and food systems. And this complete picture highlights successes that provide valuable lessons for others,” says Mario Herrero, professor and director of the food systems and global change program, Cornell University.

Starting a sustainability journey is not trivial. Any organization must start by

understanding the primary purpose of starting this journey, what they want to get, and how they want to measure it, Mejia-Argueta says.

“After defining this initial vision, organizations must conduct a baseline assessment to identify gaps, set clear SMART goals, and prioritize their efforts. Also, organizations should educate leadership and staff about the significance of sustainability, create a change management plan, and engage stakeholders to gauge their expectations. Immediately after, organizations must start analyzing their current practices and find ways to improve them based on their new sustainable vision,” he says. “There is no consensus on creating adequate incentives for businesses to adopt circular practices without requesting them to invest time and money. In addition, mandatory regulations on circular economy have grown for specific resources, such as water and food waste from restaurants, but not across industries. Moreover, their

Full electrification of a U.S. commercial truck fleet would require nearly $1 trillion in infrastructure investment alone.

UNDERSTANDING THE REGULATORY LANDSCAPE

The regulatory landscape is continuously evolving to include regulation of climate-related and sustainability corporate reporting as well as legislation around packaging/plastics and more. Here’s a breakdown of some of the rules and regulations that just went into effect and what to expect for the remainder of the year.

• U.S. Securities and Exchange Commission (SEC) climate-related disclosure Rule requires publicly listed SEC reporting companies to provide certain climate-related financial data and GHG emissions insights in public disclosure filings, according to Alex Hempel, senior director of retail supply chain VST, ORBIS Corporation. Disclosure information includes climate-related risks that have had or are likely to have a material impact on business strategy, results of operations or financial condition and more. Went into effect May 6, with first disclosures due 2025-2026.

• EU – Packaging and Packaging Waste Regulation (PPWR) will establish a binding reuse target for 2030 where economic operators are to ensure that at least 40% of packaging used is reusable packaging within a system for re-use. A binding reuse 2040 target is that economic operators make a sincere effort to use at least 70% of such packaging in a reusable format within a system for reuse. The deal was reached March 4, with final adoption expected by year’s end and full compliance 18 months later, Hempel adds.

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application has been limited to geographies focused on reducing carbon footprint, improving resource use, and mitigating adverse impacts on local ecosystems. However, overcoming these challenges requires a multi-faceted approach involving technological innovation, policy support, stakeholder collaboration, and widespread consumer engagement.”

Obtaining and nurturing a circular cold chain is imperative to the future of food logistics. From zero-emissions fleet to sustainable packaging to protecting the overall food chain, there are many ways companies can move product from Point A to Point B in a sustainable fashion. For many, it’s about identifying the gaps, developing a plan and executing that plan. And, every little bit helps.

• Scope 1 emissions covers emissions from sources that an organization owns or controls directly. Scope 2 are emissions that a company causes indirectly and come from where the energy it purchases and uses is produced. Scope 3 are emissions not produced by the company itself and not the result of activities from assets owned or controlled by them. However, companies are indirectly responsible for the upstream and downstream repercussions in the cold chain.

• Advanced Clean Cars I was adopted in 2012 and Advanced Clean Cars II was adopted in 2022. As part of the Advanced Clean Cars II regulations, all new trucks sold in California will be zero-emission vehicles by 2035.

• Two-thirds of all new trucks sold in the United States are to be electric in just eight years, per the electric vehicle (EV) mandate. Washington, Oregon, Colorado, New Mexico, Maine, Vermont, Massachusetts, Rhode Island, Connecticut, New Jersey, New York, Delaware, Maryland, and D.C., have adopted the EV mandates thus far.

• Under the U.S. EPA SNAP Rule 26, 10 refrigerants would be listed as acceptable, subject to use conditions, in the refrigeration sector. This action also proposes to modify use conditions for the refrigerant R-290 (propane) in certain refrigeration end uses. SNAP Rule 26 enables refrigerant manufacturers to commercialize lower global warming potential (GWP) A2Ls—specifically, R-454A and R-454C—and for OEMs to manufacture new systems using these refrigerants for commercial and industrial refrigeration applications. This rule went into effect July 15.

• FDA announced that Per and Polyfluoroalkyl Substances (PFAS) used in grease-proofing agents for food packaging (which are applied on paper and paperboard packaging to prevent the leaking of grease and oil, and for water-resistant properties) are no longer being sold by manufacturers for food contact use in the U.S. market. The completion of the voluntary market phase-out of these substances used on food packaging paper and paperboard eliminates the primary source of dietary exposure to PFAS from authorized food contact uses.

• The Plastic Minimum Content Standards law requires plastic beverage containers covered to contain at least 15% of post-consumer recycled (PCR) content by 2022, 25% by 2025 and 50% by 2030. California already mandates minimum recycled content for glass and rigid plastic packaging containers.

• The Extended Producer Responsibility (EPR) policy targets producers responsible for the end-of-life of products, including financial responsibility and operational responsibility. Therefore, producers are required to provide funding and/or services that assist in managing covered products after the use phase. Nine states have introduced legislation on EPR for packaging in 2024.

5 WAYS 3PLS IMPACT SHORTAGES AND DISRUPTIONS IN THE COLD CHAIN

Disruption is a buzzword with heavy significance. It’s always happening, like a row of dominoes across industries, leading to shortages that impact businesses and consumers alike. For example, the 2024 State of Logistics Report, produced for the Council of Supply Chain Management Professionals (CSCMP) by Kearney and presented by Penske Logistics, shows that U.S. supply chains pressured by global economic volatility, including inflation, climate change and geopolitical conflicts, are enhancing their capabilities to accelerate resilience, agility and flexibility to navigate current and future disruption.

In the cold chain, third-party logistics (3PL) providers have gained traction as vital partners in helping companies navigate the ups and downs of the supply chain rollercoaster.

Current disruptions

The pandemic might be the first thing you associate with the word disruption, but the nuance and unpredictability of the world can turn any situation into a disruption depending on the severity and aftermath. Key among these are pandemic-related challenges, geopolitical tension, transportation bottlenecks and unavoid-

able natural disasters.

The COVID-19 pandemic caused unprecedented disruptions, including factory shutdowns, labor shortages and shifts in consumer demand. These impacts are still reverberating through the supply chain. U.S. business logistics costs is $2.3 trillion, which translates to 8.7% of the national GDP.

According to the aforementioned report, there are multiple reasons why demand has not yet fully recovered, chief among them are simultaneous geopolitical conflicts around the world, climate change (which affects shipping lanes), high inflation, high

Graph of economic fluctuations.

interest rates and sluggish demand. As a result of the economic headwinds and geopolitical instability, the continued fragmentation of global trade is complicating supply chain transactions, with over 1,000 U.S. freight brokers that shuttered their doors since the 2023 report was released.

Trade wars, tariffs and political instability in key manufacturing regions have led to delays and increased costs for raw materials and finished goods. Regulations, UFLPA and Canada’s Modern Slavery Act for example, require restructuring to meet requirements, specific to 3PLs working cross-border.

Congestion at major ports, a shortage of shipping containers and delays in trucking and rail transport have slowed the movement of goods, causing significant backlogs. The Baltimore bridge collapse early this year is a warning for 3PLs to be prepared in the wake of unknown pitfalls that might disrupt ocean ports at the start.

Events such as hurricanes, earthquakes and wildfires have disrupted production and logistics in affected areas, adding

further strain to the supply chain. With hurricane Beryl recently impacting those ports in its wake, the options for devastation across the supply chain is every looming in the unpredictability of natural disasters.

The economics factor

As these disruptions continue the hot topic of “freight recession” is ever present. Last year, the term took on meaning as a reaction to the transportation

Clouds indicating a weather event.
Representation of technology connection across the globe.

industry’s surge in demand as the global economy adapted to changes postCOVID. The world and the economy, in natural suit, continue to evolve.

Andy Dyer, president of transportation management for AFS Logistics, details why we’re still plagued with a freight market characterized by a recent period of volatility and uncertainty.

“Against that backdrop, more businesses are looking for outside support to manage transportation services. When they do, they’re looking for an experienced partner who’s seen chaos and uncertainty in the past and can manage their networks with an expert hand. Key to that is having the capability, scale, breadth and experience to evaluate adjust strategies and quickly pivot as the freight market changes,” says Dyer. “There’s also the fact that barriers to entry for first-time outsources are far lower than they used to be. For reference, software implementations used to be at least six figures in the past, but with scale, costs are dropping, and organizations are able to take advantage of opportunities that may have been cost prohibitive years ago.”

When it comes to food and beverage specifically, growth predictions for the industry are notoriously tricky, with unpredictable weather conditions disrupting even the most cautiously crafted outlook. A report by Atradius finds that businesses should now anticipate that global food and beverage production will increase 3.2% this year, followed by 3.3% in 2025. Further, disinflation will reduce costs for producers and boost support for consumer spending, especially for less essential and luxury food items.

Selma Rossato, team leader of Atradius Risk Services in São Paulo, Brazil, says following nearly four years of significant economic disruption led by the pandemic, supply chain challenges, labor shortages and a period of severe inflation, there are signs the North American food and beverage market may be returning to a more stable environment. And that’s at least one positive outlook for the cold chain.

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Technology: a blessing and a curse

On-demand logistics platforms and lastmile delivery innovations have skyrocketed, meeting those evolving needs of consumers and businesses, but how this impacted traditional supply chain models and disruptions?

“The single biggest impact is an increase in velocity. From a transporter’s view, velocity and tempo have increased by orders of magnitude with the proliferation of those platforms and technologies. Over time, the industry has moved from basically stocking positions to fulfilling discrete orders on demand, which means the dayto-day tempo of operations has increased dramatically. While planning horizons used to be days and weeks long in decades past, now those horizons are minutes and hours long,” says Dyer. That means any disruption is even more catastrophic than before, and it’s felt much faster through the entire supply chain.

Technology shaping the space is not a flawless option. Cybersecurity is the new concern, with data piracy on the rise.

According to Chris Hughes, chief security advisor at Endor Labs and cyber innovation fellow at the U.S. government’s Cybersecurity Infrastructure and Security Agency (CISA), attackers continue to realize it is far more effective to attack a single software supplier on the proprietary front or widely used open-source software (OSS) library than targeting individual organizations. Being aware of the products you use and the safeguards in place to keep proprietary information safe is paramount for shippers looking to get ahead.

Top 5 solutions

3PLs can offer a lifeline to businesses striving to overcome supply chain disruptions and shortages through:

1. Offering flexible and scalable solutions , allowing businesses to quickly adapt to changing conditions without the need for significant capital investment in infrastructure and personnel.

2. Optimizing supply chain operations with the help of technology to improve inventory management and enhance visibility across the supply chain, even anticipating disruptions and mitigating their impact.

3. Utilizing a network of warehouses, transportation assets and partners as a tool to navigate international challenges, especially regulations, more effectively.

4. Assisting in businesses development and using risk management strategies like contingency planning and alternative sourcing to minimize the impact of disruptions.

5. Consolidating to reduce transportation and warehousing costs , freeing up resources for investments in other areas, ultimately decreasing costs and ramping up efficiency.

The supply chain disruptions of today are varied and specific at the same time. Partnerships with 3PLs can enhance resiliency and operational continuity no matter the disruption, so long as the 3PL has made those factors the biggest priority.

In a future of volatility, 3PL services could become crucial in overcoming or mitigating the obstacles of logistics.

Trucks await loading.

CONTENT SESSIONS

Tuesday, Nov. 12, 2024 | 4:00 PM - 5:00 PM

Opening speaker, Jennifer Kobus, will delve into the importance of culture, advocacy, and the crucial themes of diversity, equity, and inclusion. Prepare to be inspired as we explore these pivotal topics and learn more about Jennifer’s journey.

Wednesday, Nov. 13, 2024 | 9:30 AM - 10:30 AM

Olivia Hu will talk about how the latest technology is going to shape the future of supply chains, increasing efficiency and improving safety for the logistics space.

Wednesday, Nov. 13, 2024 | 1:30 PM - 2:30 PM

Sandhya Pillay will talk about self-advocacy, how to balance being yourself while staying true to culture, what it takes to shatter your own glass ceiling and lessons learned along the way.

FIRESIDE CHATS

Navigating Traditionally Male-Dominated Industries

Wednesday, Nov. 13, 2024

9:00 AM - 9:30 AM

Join us for an insightful fireside chat as we explore the journey of women working professionals in traditionally male-dominated industries such as supply chain and technology. This discussion will highlight the challenges and unique perspectives of female leaders who have promoted collaboration and driven innovation within their fields. Our speakers will share their personal stories, strategies for success, and visions for the future, offering grounded and practical insights for today’s and tomorrow’s female leaders.

Sponsored by:

This year’s theme, “Shattering Glass Ceilings: A Woman’s Impact on Supply Chain,” will bring together leading experts in the industry to discuss mentorship, self-advocacy, collaboration, closing the gender gap and what it takes to move the needle and pave the way for future female leaders in logistics.

SPEAKERS:

Emerging Technologies with Inbound/Outbound Logistics

Wednesday, Nov. 13, 2024

1:00 PM - 1:30 PM

Connected hardware and software solutions are evolving in materials handling to include all aspects of logistics, from digitizing the truck driver checkin process to optimizing loading dock assignments and improving operational efficiency. Join this Q&A session to hear from supply chain professional, Sara Silver, and learn about her experience of incorporating technology into a distribution center’s logistics and streamlining the operations.

Sponsored by:

SPEAKERS:

DATE: NOVEMBER 12 - 13, 2024

LOCATION: RITZ CARLTON - DOWNTOWN ATLANTA, GA

Women in Supply Chain Forum is the industry’s premier networking and educational forum tailored to men and women in executive-level positions to expand their professional network and enhance their businesses through thought-provoking discussion panels.

JENNIFER KOBUS Vice President of Transportation & Logistics at Ulta Beauty
SANDHYA PILLAY Customer Vice President for Coca-Cola Company
OLIVIA HU Head of Autonomous Trucking at Uber Freight
SECURE YOUR SPOT!
MELISSA O’KEEFE Director of Product Management at myQ Enterprise
SARA SILVER Vice President of Operations of Cheney Brothers, Inc
DAISY JIANG
SULTANA NIAMI

WAREHOUSING FOR IN-STORE AND ONLINE GROCERY FULFILLMENT

Online grocery sales are powered by a complex interplay of digital commerce, brick and mortar and warehouse operations with a growing number of fulfillment options to support customer preferences. These include the nearly ubiquitous buy-online-and-pickup-in-store (BOPIS), buy-online-and delivery-to-home (via the retailer’s operation or a third-party), or buy-online-and-ship-to-home—something typically done by a parcel carrier.

Given the nature of grocery SKUs, no other sector is more overtly challenged by the rapidly evolving opportunities involved. This is despite the fact that the fulfillment process for e-commerce as a whole is highly refined.

Just as importantly, innovations like automated storage and retrieval systems (AS/RS), robotic pickers and automated mobile robots (AMRs) are constantly improving and enabling retailers to overcome long-standing challenges, among them the demand for greater throughput and the difficulty of attracting and retaining warehouse employees.

Fortunately, these innovations are also now being used to address food retailers’ in-store inventory needs and the expanding ecosystem of delivery models for online grocery shopping.

A robust online grocery shopping ecosystem

This expanding ecosystem reflects the fact that online grocery shopping, while a more recent development than other forms of e-commerce, is already crucial for food retailers’ success. Yes, online grocery sales decreased slightly in recent months—predominantly because of smaller orders caused by diminishing consumer buying power—but the sector is very robust.

The Bricks Meets Click/Mercatus Grocery Shopper Survey released in January makes this clear. Annual online grocery sales amounted to $95.8 billion in 2023, a slight decline from the $97.6 billion spent

in 2021, and a dip attributable to a decline in buy-online-and-ship-to-home orders. In contrast, sales volumes for delivery-to-home and pickup-in-store are higher today than they were in 2021.

As such, e-commerce adoption in general continues to increase even as consumers return to the brick-and-mortar stores they love. The United States Census Bureau’s most recent Quarterly Retail E-Commerce Sales Report confirms that most Americans are now omnichannel shoppers. Estimated retail sales in the fourth quarter of 2023 increased 2.4% from the fourth quarter of 2022, but e-commerce sales increased by an estimated 7.2% in the same period.

To address this reality, sellers must have the right warehouse operations in place, something that requires grocers and mass food retailers to first consider the different warehousing needs and dimensions of instore and online operations.

In-store and online shopping requires different approaches to warehousing

As grocers and mass food retailers, including large retail chains that offer grocery

departments, move to address increased demand for online alternatives, the need for purpose-built solutions will only increase. Key differentiators and details that must be considered include:

• Never forget the storage and movement of food is different.

• In-store warehousing typically occurs at the case level with few SKUs.

• Online warehousing typically occurs at the individual SKU level.

• Warehouse automation is not automatic.

• The warehousing operation should enhance the shopping experience.

Grocers and food retailers must also carefully consider the various approaches to e-commerce fulfillment that are now available.

director of strategic engagement, warehouse solutions, North America, Vanderlande.

THE FUTURE IS OMNICHANNEL

In recent years, the grocery industry has seen intense competition driven by e-commerce growth, changing consumer behavior, and a rise in discount grocery stores. Many grocers are fighting to retain loyal customers by offering personalized shopping, easy-to-use apps, and discounts. One subset of these loyal customers is omnichannel shoppers—consumers who shop in-store, online, and on mobile.

Who is the omnichannel shopper?

Nearly 57% of all households in the United States will be omnichannel shoppers by 2025. With this group spending 1.5 times more than single-channel shoppers, it’s not hard to understand why omnichannel shoppers are essential to the grocery business.

These tech-savvy consumers expect grocers to offer user-friendly mobile apps with features like online ordering, in-store pickup, and personalized shopping lists. They also research products online before going to the store or making a purchase. This demographic values convenience and flexibility with delivery and pick-up options and is price-conscious amid rising costs. Because omnichannel shoppers engage more frequently and through multiple channels, they have a higher lifetime value.

Modernizing grocery fulfillment solutions

The rise of omnichannel shopping presents grocers with the opportunity to reimagine their operations from the ground up. One of the most important foundational elements to assess is the automation within distribution centers (DCs). As a grocer, ask yourself:

• Which (if any) areas of your distribution center are automated, and is there an opportunity to expand to other areas?

• Does your software provide visibility and transparency into operational performance?

• How effectively does your current solution integrate with other systems?

• What level of scalability does your warehouse management software offer to accommodate fluctuations in demand and business growth?

• Does your current solution provide real-time tracking and traceability of inventory throughout the supply chain? If your response was no to most of the above, it would be beneficial to take a closer look at automated solutions.

Streamline with software

Transparency and connectivity are vital when fulfillment is split between in-store and online orders. A critical piece of the automation puzzle is software, which can streamline this process by connecting both the store and DC operations into one comprehensive ecosystem. Software also generates data that can unlock insights, including:

• Enhanced inventory visibility across all channels.

• Coordination between in-store and DC teams to ensure smooth order fulfillment and timely delivery.

• Future demand predictions to ensure omnichannel shoppers find what they need when they need it. This data is important when helping to manage inventory for omnichannel fulfillment.

Transforming grocery operations with automated solutions

Software can provide myriad benefits, but its seamless integration with automation is critical for effectively leveraging these advantages. Properly implemented automated solutions play a pivotal role in:

• Improving order accuracy and handling SKU proliferation.

• Meeting large and immediate in-store and online order fulfillment demands.

• Addressing labor challenges leading to scarcity, high turnover, and increased costs.

• Maintaining display quality and preventing damaged products.

• Fulfilling smaller and more frequent deliveries.

• Streamlining last-mile delivery and distribution operations.

As a grocer navigating an extremely competitive market, it’s critical to invest in the customers who shop in multiple ways.

ABOUT THE AUTHOR

BREAKING DOWN LABOR MANAGEMENT PROGRAMS

As technology and innovation continue to expand the capabilities of distribution operations, companies are looking to automation to solve the rising labor costs, high turnover, and increasing productivity demands.

While automated solutions can solve many of these demands, they are likely expensive and can be difficult to show a robust ROI. Additionally, not all organizations have the luxury of investing in fully autonomous systems or incorporating innovative technology into existing operations, leaving the question, how do you compete and grow, while driving down costs without breaking the bank?

Most companies are diligently driving down labor costs by improving processes, modifying material flow/layout configurations, and making low-cost adjustments to storage and pick equipment, however a broader topic of workforce development must also be considered to remain competitive.

When considering workforce development, multiple topics come to mind, including staffing levels, shift structures, labor rates, key performance indicators, incentive programs, bonus programs, pay for performance, work culture, work environment, attracting labor force, and increasing retention.

When considering how a labor management program can keep an organization competitive in today’s market, it is important to understand the facts and fiction often associated with labor management.

Labor management is just a software solution–fact or fiction?

Fiction. While a labor management program is often associated with a software solution, this view is extremely limiting and does not capture the true value a comprehensive labor management program can add to an organization.

To capture the full scope of possibili-

ties, it is more accurate to think of labor management software as one part of a labor management program. This system complements standardized processes, automation, layout, shift strategies, optimized storage, replenishment policies, travel paths, slotting, waving/batching strategies, directed work/zoning logic, as well as performance standards, which includes employee assessment, incentives, training, structured engagement, and an accountability infrastructure.

Labor management programs require dedicated engineers–fact or fiction?

Fiction. While it’s beneficial to have organizational or site engineers support labor management standards, it is not a requirement to get started or improve an existing labor management program. Most program success depends more on the creation of a strategy for improvement and an operational leadership team that understands how daily decisions impact the program outcome. Leaders must understand how to remove barriers that impact productivity. These barriers can be systemic, staffing, non-standard processes, exceptions, behavioral gaps,

inadequate training, building layout, and ergonomics.

Labor management programs require more than operational involvement–fact or fiction?

Fact. Labor management is a culture for all levels of an organization, and not only all levels of the operations, but all supporting departments. This includes but is not limited to human resources, safety, quality, training, warehouse support and planning, and slotting, to name a few. This level of engagement helps develop buy in and creates understanding of how a labor management program will benefit the business.

Implementing a labor management program is costly and time consuming—fact or fiction?

Fact and fiction. Implementing labor management can be both, depending on where you start and what you are trying to accomplish.

There is a growing number of labor management programs available in the marketplace, including stand-alone sys-

tems. The key is not rushing through the development and implementation of a new labor management program.

When considering where to start on a network, gain organizational buy in and quick wins by starting with an operation that is “easier” to set up the first labor management program. This program includes establishing labor standards, key performance indicators, labor productivity reports, personnel feedback structure, labor performance accountability policy, pay structure, and other change management requirements. Once implemented, it is encouraged to audit the overall success of the program before rolling out to additional facilities.

A new labor management system is required to make labor management improvements–fact or fiction? Fiction. If there is no money (or appetite) to invest in a new labor management

program or system, examine how existing practices can be changed to improve labor management. Start by observing the operation and talking with operators to discover what problems they encounter daily. Then, investigate improvements to these daily issues, increase performance feedback and conduct on-going training to support productivity improvements.

Engineered standards are developed to establish task times to account for the exact/discrete work being performed (i.e., distance traveled, item weight, quantity picked, etc.). For many organizations, starting with reasonable expectancies is the first step in a labor management program strategy as it allows a workforce to adjust to a more structured and standardized environment while building a performance management culture.

Next steps

As with anything new, the hardest step is often the first step. With some strategic

planning, an organization can chart the course of operational excellence through a labor management program that includes a sustainable foundation, integrated systems, optimized processes, and engaged people to manage metrics, output, and organizational productivity.

A labor management program does not have to be complicated to be effective. By examining the factors that contribute to an organization’s ability to reach their full potential, operations can increase productivity, decrease costs, and keep the bottom-line healthy.

DAWNYA BROWN project manager, St. Onge Company. ABOUT THE AUTHOR

HOW MULTILINGUAL WAREHOUSES SUPPORT DIVERSE WORKFORCE

The United States has always been and continues to grow as a mix of different cultures, languages, and even dialects. In the United States, the number of people who spoke a language other than English at home nearly tripled from 23.1 million (about one in 10) to 67.8 million (about one in five) over three recent decades, according to the Census Bureau. Approximately 430 languages are spoken or signed by the U.S. population.

The realities of language in the warehouse

Although 21.7% of U.S. residents speak a language other than English at home, only 8.2% speak English less than “very well.” However, the problem is that the English they understand might not be the language of the warehouse, which has its own special lingo and acronyms. Naturally, people whose first language is not English may struggle with specific occupational terms in the fast-paced environment of a warehouse, having a negative impact on their ability to do their jobs. As a result, these workers might be initially overlooked because employers see language proficiency as a prerequisite for performing well. In some jobs, being good at the local language is crucial for safety. Being able to warn co-workers or understand instructions is critical, especially when dealing with heavy and fast moving machinery. Companies can help by investing in language training that focuses on industry-specific words to open up more opportunities, but some companies might hesitate because it takes time, effort and expense to train and communicate with them.

Voice technology can build a multilingual advantage

Voice recognition software has been a proven solution in the warehousing industry for more than 25 years, and its continuing evolution and advancements provide more accessibility to users who struggle

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with English or may want to blend their native language with the working language. For example, some dual-speech recognition software can support at least 34 languages, notably English, Spanish, French, Arabic, Mandarin etc.

The distinctive use of two simultaneous speech engines guarantees peak speech recognition, even for users with strong accents or speech difficulties. Workers can mix languages as they please, making their job easier and less stressful.

User-defined training is a trend that workers are welcoming. This means tech that enables workers and devices that can help train you, while you can “train” them through machine learning. Some voice-directed systems allow workers to regulate playback speeds to their own preferences, capabilities and comfort level. To complement the language advantages, some multi-modal systems also can include images for hard-to-pick items.

Language choice helps attract and retain workers

With tight labor markets for warehouse

workers, using voice-directed technology can became a competitive advantage when trying to hire new workers.

Moving forward, having multi-language instructions in warehouses isn’t just a possible choice; it’s a must to support the diverse U.S. workforce. It aligns with principles like diversity, equality, and inclusivity (DEI) and gives a boost in hiring and keeping workers. By investing in language learning and creating an inclusive workplace, companies not only bridge the language gap but also show they value their employees’ cultural backgrounds. Multi-language instructions recognize and support the success of a diverse workforce, breaking down barriers and creating a better, more attractive work environment.

JASON TRISOLINE account manager, Lucas Systems. ABOUT THE AUTHOR

NEARSHORING VS. OFFSHORING

The dynamic landscape of global supply chains has prompted companies to reevaluate their sourcing strategies, with the decision to nearshore or offshore becoming increasingly pivotal. Among the various regions considered for nearshoring, Mexico stands out as a top destination, offering numerous advantages that align with the strategic goals of American businesses.

The industry has experienced a massive influx in corporate investment in Mexico specifically related to logistics, with companies pledging $100 million-plus investments for manufacturing in the country.

Why

are U.S companies choosing nearshoring (to Mexico) vs. offshoring?

Proximity to the U.S. market. One of the primary motivations for nearshoring is proximity to the U.S. consumer base. Production facilities closer to the United States significantly reduce transportation time and costs. This proximity enhances the speed of delivery and enables companies to be more responsive to market demands, fluctuations and adverse events.

Cost and efficiency advantages. Nearshoring to Mexico offers significant cost benefits due to its considerably lower labor costs compared to the United States, and competitive wages that are 60-100% lower than in China. Although Mexican labor costs may be higher than in other Asian countries, the savings in transportation and tariffs often offset this difference. Shipping a container from Mexico to the United States can result in average savings of $5,000-9,000 per container compared to its Chinese counterparts. This cost efficiency, plus shorter supply chains, enhanced control and coordination, and favorable trade terms under the U.S.-Mexico-Canada Agreement (USMCA), makes nearshoring to Mexico a compelling choice.

Geopolitical stability and risk reduction. Rising geopolitical tensions with traditional manufacturing hubs like China have further

prompted companies to reconsider their offshoring strategies. Trade wars, tariffs, and political uncertainties increase the risk and cost associated with offshoring. Nearshoring to Mexico offers a more stable and predictable environment, minimizing these geopolitical risks by shortening supply chains and enhancing control and coordination. Mexico sharing a 1,954-mile border with the United States gives it a distinct geopolitical advantage that other countries simply cannot compete with.

The U.S.-Mexico trade growth story

The U.S.-Mexico trade relationship has evolved significantly, particularly in the context of shifting dynamics with China. For the first time in nearly 20 years, the United States imports more from Mexico than China, with Mexico comprising 16% of total U.S. trade in October 2023 compared to China’s 12.7%. This shift underscores the growing importance of Mexico as a key trade partner and nearshoring destination for American companies.

In 2023, around 7.5 million loaded trucks and rail containers crossed from Mexico to the United States, a 34% increase from 2022. This surge is reflective of the increasing trend toward nearshoring, which is also supported by Foreign

Direct Investment in the country, most notably in the manufacturing sector. In 2023, 50% of Mexico’s foreign direct investment (FDI) was directed toward manufacturing, with significant portions concentrated in strategic locations such as Nuevo León, Coahuila, and Chihuahua.

Strategic infrastructure developments are supporting this growth. The Port of Laredo handled goods worth over $300 billion, an 8% increase despite a global trade decline of 4%. Enhancements such as additional lanes at the World Trade Bridge and expansions at the Colombia Bridge are underway to accommodate the increasing trade volume.

The decision to nearshore or offshore is multifaceted, involving considerations of cost, efficiency, risk, and strategic alignment. As companies increasingly prioritize supply chain resilience and risk management over pure cost savings, nearshoring to Mexico offers a compelling blend of advantages.

@
DANNY GORDON head of strategic accounts, Nuvocargo.

NEARSHORING: A STRATEGIC APPROACH TO SUPPLY CHAIN OPTIMIZATION

Nearshoring has gained significant attention as an innovative way for businesses to rethink operations while mitigating risk and increasing speed to market. What are the benefits and challenges for companies in the consumer packaged goods (CPG) space?

Oe of the primary drivers of nearshoring to Mexico is the suite of economic incentives and tax benefits introduced by the Mexican government. These measures are strategically designed to attract foreign direct investment (FDI) and bolster Mexico’s competitive edge in the global market, while benefiting companies in the United States at the same time.

Why choose Mexico?

Mexico’s proximity to the United States, which accounts for roughly 25% of the world’s GDP, remains a crucial driver for nearshoring in 2024. This geographical advantage substantially reduces transportation costs and delivery times for companies serving North American markets. With over 50 border crossings along the 2,000-mile U.S./Mexico border, products can reach U.S. customers in 3-5 days, compared to the 15-50 days typically required for sea shipments from Asia. This supply chain optimization allows for faster and more flexible supply chains, which are essential to meet consumer demands in today’s age.

The United States-Mexico-Canada Agreement (USMCA) also plays a pivotal role by providing businesses with tariff-free access to the U.S. and Canadian markets. Since the USMCA’s implementation, Mexico has become the primary trading partner for the United States. In 2022, Mexico’s exports to North America comprised ~80% of its total global exports, a proportion that increased to ~85% during January to September 2023. Additionally, in 2023, Mexico emerged as the United States’ leading export partner, with exports amounting to $476 billion, surpassing China which

@ Christina Felschen .adobe.com

experienced a 20% year-on-year decline in exports to the United States during the same period.

This upward trend in Mexico’s exports is expected to continue due to strong U.S. market demand and favorable USMCA conditions.

Companies in the United States are also often looking to reduce dependence on China amid recent developments. The UMSCA agreement has strategically reduced the United States’ reliance on Chinese imports, positioning Mexico as a preferred alternative for manufacturing and supply chain operations.

Managing global risk

In 2023 and 2024, attacks on commercial ships in the Red Sea have disrupted vital sea-based shipping lanes, and six of the Top 10 container carriers have diverted their routes away from the Red Sea, impacting an estimated 62% of global shipping capacity. These crises have increased delivery lead times and created raw material and ingredient shortages, highlighting the urgency for supply chain resilience and diversification. Mexico’s proximity to the United States,

coupled with its stable political environment, provides a strategic advantage for companies aiming to reduce risks associated with geopolitical instability.

Strategies for companies navigating nearshoring

Make sure your company is selecting the right supplier partner, making note of the need for a diverse supplier base and avoiding sole-supplier situations.

Having a set of mutually agreed-upon performance goals is crucial. When buyers and suppliers work together and share data, insights, and ideas, risks decrease, and new opportunities for innovation are uncovered.

By leveraging Mexico’s proximity, skilled workforce, and favorable trade agreements, businesses can create more resilient and responsive operations.

RITESH KUMAR director of procurement and supply chain intelligence, The Smart Cube.

TRAILERS-AS-A-SERVICE REDUCE COMPLEXITY IN FOOD LOGISTICS

Efficiently managing food supply chains is challenging when questions about your trailer pool persist. Issues range from optimizing usage amid fluctuating capacity and ensuring proper maintenance for maximum uptime to deciding when to invest in expanding capacity. New trailer supply models and technologies can help more easily answer these questions.

Subscription-based access to trailers, for example, can give reliable availability to trailers and the flexibility to scale up the trailer fleet as needed, without the upfront costs or long-term commitments of ownership. Increased use of technology on trailers and more streamlined processes for acquiring parts can also help improve trailer uptime and better utilize the trailer pool.

A more flexible way to manage trailer capacity

Whether you buy or lease trailers, you face similar challenges, like ensuring you have enough capacity to meet demand and keeping them properly maintained for reliable, on-time deliveries.

But now, you have a third option for accessing trailers—Trailers-as-a-Service (TaaS).

With TaaS, fleet managers can subscribe to trailer capacity based on need. Trailers are provided with guaranteed uptime, and capacity can be scaled up or down to meet changing demand. Loaners and insurance are also both included as part of the subscription.

TaaS-delivered trailers can also help maximize the uptime and overall management of the fleet using telematics and analytics. With these technologies, operators always have a real-time view of the trailers’ health, location, performance and cargo.

For instance, a third-party logistics (3PL) provider uses TaaS to enter new markets at a lower cost compared to buying or

leasing trailers. This 3PL can adapt to customer needs and secure business even during downturns, as it doesn’t need to source trailer capacity in advance.

Data to optimize fleet uptime and utilization

Telematics aren’t just limited to TaaSdelivered trailers. They’re available as standard technology on certain OEM dealer-stocked trailers. However, they’ve been fundamentally limited to large transportation companies that have enough resources to manage them–until now.

Today, dealers can package telematics in a way that makes them manageable for small- and mid-size companies to monitor and proactively maintain their fleets.

For example, they can be used to track and locate trailers for the growing use of drop-and-hook loads. Telematics data can also be used for predictive maintenance to help optimize trailer uptime. And the data can be used to trigger alerts if trailers go off their expected routes, which can help protect trailers and the cargo they carry.

Telematics data can also help indirectly optimize trailer maintenance over the long term. OEMs can use the data in aggregate to learn more about the health and repair needs of their trailers. This can help provide better guidance to both dealers and customers, such as the specific parts they should keep in stock for different trailer models.

Streamlining parts access

Real-time health and predictive maintenance data enable more timely and targeted trailer maintenance. But for that maintenance work to happen as needed, something else is required–reliable access to genuine parts.

In recent years, parts shortages have delayed vital maintenance work and kept trailers off the road. Sometimes, parts have been available but issues like supplier

friction or inefficiencies have slowed their delivery.

Trailer OEMs have taken action to improve parts availability by breaking down barriers and better aligning teams both within their own organizations and by working with dealers to streamline deliveries.

Some OEMs, for example, have made it easier for dealers to order parts with improved online ordering. OEMs have also taken steps to allow dealers to order parts directly from them instead of from third parties.

All of this has made it easier and more efficient for dealers to buy genuine OEM parts, which in turn makes it easier for you to reliably get the genuine parts you need at consistent pricing.

Food logistics with fewer questions

Managing a trailer pool is demanding work that requires close attention to detail and constant engagement. Using these new approaches to trailer lifecycle management can keep the focus on freight instead of the logistical challenges that can bog down deliveries and the business.

EMERGING TECHNOLOGIES BRING NEW OPPORTUNITIES TO FREIGHT MANAGEMENT

Just looking at this year alone, the freight management industry underwent a significant transformation driven by advanced technologies, which includes everything from artificial intelligence (AI), machine learning (ML) and digital twins to Internet of Things (IoT), software-as-a-service (SaaS) and cloudbased technologies.

With emerging technologies taking hold across the supply chain industry, the role of transportation management systems (TMS) and other emerging technologies is ever-changing. Designed to increase speed and overall customer satisfaction, these solutions add reliability to an industry that continuously evolves.

“Overall, fleet managers can face many challenges when looking to implement fleet management technology–from finding the right technology for their business need to changing logistics processes to work with the new tech–many factors come into play,” says Sam Thompson, VP, customer success and fleet telematics at Penske Transportation Solutions.

For example, Penske unveiled Catalyst AI, an AI platform designed to deliver real-time insights into fleet performance. This platform leverages Penske’s patent-pending algorithm and a vast collection of over 57 billion data points to provide recommendations for optimizing fleet operations.

“There are constant and continuous pressures to keep costs down and optimize fleets hauling food. Until the launch of Catalyst AI, there was no true way to easily, answer this question without data-backed insights. Luckily, now food customers can use the platform’s proprietary fleet algorithms to benchmark against similar vehicles operating across the robust Penske network,” adds Thompson.

For its part, ProvisionAi launched Level-

Load, a patented technology that reduces volatility and cuts costs for shippers and carriers. This platform reaches a 30-day outlook and can make the decision to move items forward or back on any lane based on a variety of factors. LevelLoad also can consider what will be on each truck and how it impacts in-stock customer service. LevelLoad determines which truck or trucks from which location are needed most to minimize the chance of a stockout, taking into account available warehouse space.

“The trend is for shippers to consider ‘partner’ carriers in their longer-term capacity plans in the same ways as they would evaluate adding another shift or increasing warehouse capacity,” says Tom Moore, founder and CEO of ProvisionAi. “The outlook is positive for less ‘boom-bust’ inefficient coupling parties to a smoothed commitment to stability.”

NetLogistik is also making technological

leaps in supply chain management. For smaller, less complicated environments, NetLogistik developed TEP (Transportation Efficiency and Productivity), which seamlessly syncs the entire transportation management process, from planning and tracking to freight settlement. TEP provides online visibility of shipping processes and costs, and allows the integration of catalogs of operators, carriers, users, and warehouses.

“TEP optimizes the efficiency and accuracy of transportation operations with complete visibility into orders, shipments, and deliveries—while building stronger relationships with suppliers, carriers, and customers through reliable, on-time performance,” says Jagan Reddy, managing director of NetLogistik. “Businesses that have utilized Netlogistik’s TEP solution have achieved impressive results, including up to 33% reduction in administration times; up to 5% savings in total transpor-

With emerging technologies taking hold across the supply chain industry, the role of TMS and other emerging technologies is ever-changing.

tation costs; and up to 50% improvement in customer service. TEP maximizes order management, shipment planning, transport selection, documentation management, route monitoring, and shipment costs.”

According to Brian Cupp, director of operations at IntelliTrans, its TMS is a SaaS-based TMS that provides shipment execution and visibility across rail, truck, intermodal, barge, and ocean shipments so shippers can access their entire logistic network from a single system.

“Whether a food or beverage manufacturer ships hundreds or thousands of loads a month, IntelliTrans TMS features have been developed with the purpose of making distribution more efficient and cost effective,” says Cupp. “The IntelliTrans TMS integrates with a variety of IoT device companies and brings in valuable information from a wide array of IoT sensors, which extend the value of visibility data and helps identify risks, such as being able to see that a hatch is open, temperature or speed thresholds have been exceeded, brakes are engaged during movement, or that a notable impact has occurred.”

Today’s TMS systems are tasked with maintaining a rigid standard in the delivery process to ensure timeliness, quality and safety in the delivery of cold chain products and beyond.

And, they’ve grown into much more than scheduling tools, according to Brendan Wiggins, AVP, customer care, strategic accounts from Geotab. In fact, today’s TMS incorporate a broad range of capabilities such as routing and optimization, maintenance tracking, compliance reporting, load management, and driver communication.

“Creating a single place for a fleet operator to see critical performance measurements allows them to make better decisions, informed by data. Transportation management systems provide a lot of data, and AI enables predictability and decreases time to insight; it’s like having a data scientist in your back pocket,” adds Wiggins. Additionally, a lot of what’s happening in the industry now is the transition from legacy technologies.

“There’s a big replacement cycle that’s going on, particularly in areas like delivery route planning. And what happened was there’s been technology out for quite a

long time. But a lot of it is aging technology,” says Chris Jones, EVP, industry and services with Descartes Systems Group Inc. “Tracking real-time data has become a very big area, and how you use that data to be able to deliver more effectively, but empower customers. I think probably the biggest thing that we see is the ability for us to provide technologies to fleet operators that starts when they’re getting orders and goes through how they plan and execute, how they track deliveries, the information they provide customers etc.”

Drivers and transportation professionals used to rely on outdated modes of collecting data to plan their fleet planning and procurement. Platforms like Penske’s Catalyst AI effectively gives fleet managers a method of evaluating the strengths and challenges within their fleet to stay ahead of trends in the industry.

“AI has the power to greatly impact the efficiency and functionality of a fleet. For one example, a recent industry study found that 77% of transportation professionals tend to rely on historical, annual forecasting and industry benchmark reports to inform their fleet planning and procurement decisions. This process is often manual, time consuming and not holistic enough for fleet managers to accurately compare data for their fleets. Catalyst AI effectively empowers fleet managers to evaluate the true performance of their fleets and, ultimately, optimize their operations to stay ahead of the ever-changing industry,” says Thompson.

When adopting advanced technology and data insights, some things fleets need to consider employee adoption and change management.

“Many fleets need to retrain everyone—from frontline mechanics and drivers to their leaders—on what AI-driven fleet management can and can’t do. It’s crucial to manage expectations and create a strong action plan for lasting change. Generative AI in fleet is a new concept and there is a need for clear communication about its role,” says Wiggins.

That’s why Geotab developed Geotab Ace, a generative AI assistant that uses best practices for responsible AI to revolutionize data interactions. This AI assistant enables fleet managers to access real-time information through natural language queries, simplifying the data retrieval process.

“By democratizing access to complex data, this tool supports fleets in making swift, informed decisions, fostering a more efficient and responsive freight management ecosystem,” says Amir Sayegh, AVP, data product discovery, Geotab.

As is common with any new technology, there are bound to be a few challenges in the development of new standards and processes. Changing regulatory requirements also serves as a big challenge for shippers.

And, for some companies in the food logistics space, technology has helped make these challenges a bit easier to overcome.

Thanks to emerging technologies, the freight management industry continues to evolve and bring new opportunities for moving freight along the cold chain.

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