Food Logistics Oct 2014 by Supply+Demand Chain/Food Logistics

Food Logistics

GETTING MORE FROM YOUR 3PL Pg. 24

Issue No. 161 Oct 2014

Global Supply Chain Solutions for the Food and Beverage Industry

SECTOR REPORTS • Telematic Solutions Improve Vehicle Management For Drivers And Fleet Managers • Static Racking Systems Offer More Ways To Stock And Replenish Inventory • Label Solutions Enhance Data Capture, Improve Traceability, Speed And Accuracy

FOODSERVICE CHARGES FORWARD Consumer Lifestyles Drive Away-From-Home Food Sales; Evolving Formats Challenge The Foodservice Supply Chain Pg. 16 ▼ ▼

New guest blogs; exclusive online content.

▼

WEB EXCLUSIVES

Archived Webinars, including FL's Educational Webinar series.

Daily news on 3PLs, Transportation & Warehousing; Sustainability; Cold Chain; and Food Safety & Security.

WWW.FOODLOGISTICS.COM

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INTRODUCING THE ALL- NEW FORD TRANSIT

THE MOST VEHICLE CONFIGURATIONS IIN N IITS T S CLASS. C L A S S*.

OPEN FOR 6'5" TALL BUSINESS OVER

A WIDE VARIETY

With an available cargo ceiling taller than some basketball players, the Transit van has loads of room for boxes, tools 6'5" and you. That comes in handy if you want a mobile workshop that lets you stand up straight. And the advantages just keep piling up.

OF DIMENSIONS The Transit van and wagon are available in 2 different wheelbases, 3 different lengths and 3 different heights. That makes it easy to choose one that will fit you and your business exactly. And if that’s not enough, it’s also available as a chassis cab and cutaway.

THE ALL-NEW

2015 TRANSIT •

The Transit van is available with the best-in-class** maximum rear cargo door opening height. The doors open a full 270°† and the floor is as low as 28 inches.† It’s all about making loading and unloading easier. No matter what your business is.

THE NUMBERS DON’T LIE

•

*Based on body type, body length, and wheelbase and roof height. Class is Full-Size Vans. **Class is Full-Size Vans. † When properly equipped. ††Class is Full-Size Vans, when properly equipped. Excludes diesel competitive models.

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The 2015 Transit can offer a best-in-class gas-powered maximum CARGO CAPACITY OF 487.3 CUBIC FEET.††

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ON THE MENU OCTOB ER 2014 • ISSU E N O . 161

16 24 26 16

COVER STORY

Foodservice Charges Forward

Consumer lifestyles drive away-from-home food sales while evolving formats challenge the foodservice supply chain. By Elliot Maras

THIRD PARTY/REFRIGERATED LOGISTICS

Getting More From Your 3PL

Taking collaborative relationships to the next level pays dividends for today’s food and beverage shippers. By Lara L. Sowinski

SECTOR REPORTS

How Do You Rack It?

Static racking systems offer more ways to stock and replenish inventory. By Elliot Maras

Stricter Regs Ahead: Telematics To The Rescue

Labels: Simple Yet So Sophisticated

Telematics solutions improve vehicle management for drivers and fleet managers. By Elliot Maras

Label software can enhance data capture and improve traceability, speed and accuracy. By Elliot Maras

COLUMNS

FOR STARTERS Foodservice Sees Amazon In The Rearview Mirror International Foodservice Distributors Association (IFDA) president and CEO Mark Allen ponders Amazon’s impact on the foodservice industry. By Lara L. Sowinski

COOL INSIGHTS Cold Storage Expansion Stays Brisk

More capacity comes online to handle growing cold chain activity. By Lara L. Sowinski

FOOD (AND MORE) FOR THOUGHT The Survey Says: Leveraging Existing Technology Investments A Top Priority For Food Manufacturers ERP solutions come under pressure to deliver quicker ROI and more. By Thomas R. Cutler

DEPARTMENTS

8 Supply Scan • 14 Food on the Move • 49 Marketplace

Published and copyrighted 2014 by AC Business Media Inc. All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording or any information storage or retrieval system, without written permission from the publisher. Food Logistics (USPS 015-667; ISSN 1094-7450 print; ISSN 1930-7527 online) is published ten times per year in Jan/Feb, March, April, May, June, July, August, October, October and Nov/Dec by AC Business Media Inc., 1233 Janesville Avenue, Fort Atkinson, WI 53538, (920) 563-6388. Periodicals postage paid at Fort Atkinson, WI 53538 and additional mailing offices. POSTMASTER: Canada Post PM40612608. Return Undeliverable Canadian Addresses to: Food Logistics, Station A, P. O. Box 25542, London, ON N6C 6B2. Subscriptions: US, one year $45, two years $85; Canada & Mexico, one year $65, two years $120; International, one year $95, two years $180. All subscriptions must be paid in U.S. funds, drawn on U.S. bank. Printed in the USA.

OCTOBER 2014

• FOOD LOGISTICS

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www.foodlogistics.com

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10 great ways our partners have improved the landscape in the last 10 years. Global leadership in green freight.

Carbon savings and reduction of carbon pollution.

Efficiency in moving more tons of freight.

Corporate citizenship and social responsibility.

Cost savings by using less oil.

Proven technologies that are EPA-verified and save fuel.

Data excellence for program quality and credibility.

Networking with peers, sharing success stories.

Promoting sustainability to stakeholders and the public.

Collaboration with other SmartWay partners.

SmartWay is an innovative, public-private partnership that helps companies improve their transportation supply chain efficiency and environmental performance. Since 2004, 3,000 top companies have registered with SmartWay. To learn what companies will be doing in the next 10 years, visit epa.gov/smartway

Any way you ship it, move it the SmartWay.

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FOR STARTERS FROM THE EDITOR’S DESK

WWW.FOODLOGISTICS.COM

Foodservice Sees Amazon In The Rearview Mirror

he so-called Amazon Effect has many industries—including foodservice—grappling with how this retail behemoth and its dominance in e-commerce will potentially impact their home turf. Mark Allen, president and CEO of the International Foodservice Distributors Association (IFDA) examined this topic in the group’s recent Executive Update newsletter. According to Allen, while Amazon “isn’t currently targeting the foodservice operator with their offerings…given their core capabilities and the investments they are making and strategies they are SOWINSKI employing, it also wouldn’t be much of a stretch to envision them having an impact on foodservice distribution.” Where Amazon and other successful e-commerce players get it right is with their customer experience. Make it easy for customers to shop, order, read reviews, and return items if necessary. That’s the not-so-secret sauce that any company engaged in e-commerce should aspire to, whether B2C or B2B. Furthermore, Allen identifies six ways that Amazon uses to stay ahead in the e-commerce space; all of which could work equally well for foodservice distributors. They include: Amazon has a relentless, enterprise-wide focus on the customer. EVERYTHING starts with the customer; They love to invent and pioneer (and don’t see a need to protect legacy revenues); They are making tremendous, continuous investments in infrastructure; They are intently focused on having much more control over their deliveries/last mile; Their growth model is simple and focused on continuously driving greater volume; They have a huge data advantage (think GS1—complete and accurate data). Foodservice distributors cannot afford to lose market share, warns Allen. Even if Amazon avoids taking “direct aim” at the industry, they could “nibble around the edges.” When you consider that Amazon is in the midst of adding 91 million square feet of warehouse space to their network, much of it multi-temp, with a goal of providing same-day delivery to 80 percent of the U.S. population with 80 percent of their products, then it’s time to sit up and take notice, he says. However, the foodservice industry does have an advantage, Allen reassures. Unlike the Amazon model that relies on technology interacting with humans, foodservice is about humans interacting with humans and providing a high level of value-added service and information. Great advice for any industry who doesn’t want Amazon to smoke them in the passing lane. Enjoy the read.

LARA L. SOWINSKI, EDITOR-IN-CHIEF LSOWINSKI@ACBUSINESSMEDIA. COM

OCTOBER 2014

• FOOD LOGISTICS

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Published by AC Business Media Inc.

PO Box 803, 1233 Janesville Ave., Fort Atkinson, WI 53538-0803 (800) 547-7377 • www.ACBusinessMedia.com PUBLICATION STAFF Publisher Jolene Gulley Editor-in-Chief Lara L. Sowinski 262-443-5919; lsowinski@ACBusinessMedia.com Assistant Editor Eric Sacharski 920-563-1680; esacharski@ACBusinessMedia.com Managing Editor Elliot Maras 800-547-7377, ext 1693; emaras@ACBusinessMedia.com Ad Production Manager Cindy Rusch 920-563-1664, crusch@ACBusinessMedia.com Art Director Kirsten Crock Senior Audience Development Manager Wendy Chady Audience Development Manager Tammy Steller EDITORIAL ADVISORY BOARD Jaymie C. Forrest, vice president, supply chain practice, Alexander Proudfoot Kam Quarles, director, legislative affairs, McDermott Will & Emery LLP Pamela Erb, vice president of supply chain, Wegmans ADVERTISING SALES East Coast Sales Manager Judy Welp 480-821-1093; Fax: 480-240-4897 jwelp@ACBusinessMedia.com Midwest/West Coast Sales Manager Carrie Konopacki 920-568-8309; Fax: 651-203-0460 1233 Janesville Ave., Fort Atkinson, WI 53538 ckonopacki@ACBusinessMedia.com CIRCULATION & SUBSCRIPTIONS PO Box 3257, Northbrook, IL 60065-3257 (847) 559-7598, Fax: (800) 543-5055 Email: circ.FoodLogistics@omeda.com LIST RENTAL Elizabeth Jackson, Merit Direct LLC (847) 492-1350, ext. 18, Fax: (847) 492-0085 Email: ejackson@meritdirect.com REPRINT SERVICES Nick Iademarco, Wright’s Media (877) 652-5295, ext. 102 niademarco@wrightsmedia.com AC BUSINESS MEDIA INC. Chairman Anil Narang President and CEO Carl Wistreich Executive Vice President Kris Flitcroft VP Content Greg Udelhofen VP Marketing Debbie George Digital Operations Manager Nick Raether Published and copyrighted 2014 by AC Business Media Inc. All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording or any information storage or retrieval system, without written permission from the publisher.

10/7/14 8:22 AM

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SUPPLY SCAN

NEWS FROM A CROS S THE F O O D SU PPLY C H AIN

FDA Seeks To Make FSMA More Flexible

of those risks. The FDA will accept comments on the revised provisions for 75 days after publication in the Federal Register.

The U.S. Food and Drug Administration suggested changes to four rules proposed to implement the FDA Food Safety and Modernization Act (FSMA). The changes include: Water Quality Testing – More flexible criteria for determining the safety of agricultural water for certain uses and a tiered approach to water testing; Produce Safety – A commitment to conduct extensive research on the safe use of raw manure in growing areas and complete a risk assessment; Preventive Controls for Human and Animal Foods – Requirements that human and animal food facilities test products and the food facility’s environment, as well as implement supplier controls; Foreign Supplier Verification Program – A more comprehensive analysis of potential risks associated with foods and foreign suppliers, and more flexibility for importers in determining appropriate supplier verification measures based on their evaluation

PSI Technics Introduces Motion Analysis/Test Kit PSI Technics’ Motion Analysis Kit marks what it considers the industry’s first service that sheds new light on the performance of crane systems used in food logistics. The kit offers the ability to analyze the behavior of any crane system used in automated storage and retrieval facilities in real time. The kit records a crane’s actual motion path to determine how the system behaves with and without load. For information, visit http://www.psi-technics.com/ MA6000MC-MAK.

United Natural Foods To Open Three Distribution Centers United Natural Foods, Inc. plans to open distribution centers in Hudson Valley, N.Y.; Prescott, Wis. (near Minneapolis); and Gilroy, Calif., according to reports.

Asian Distributor Leases Cold Storage Facility In Vernon, Calif. H.C. Foods Co. Ltd., a distributor of Asian food products, has leased more than half of a modern cold-storage industrial facility in Vernon, Calif. in an off-market transaction valued at $4.2 million, Colliers International reported. Term of the lease is five years.

Goya Foods Unveils Distribution Center in Georgia Goya Foods will open a stateof-the-art distribution center in Georgia to aid with the expansion of business in the southeast region. The custom-designed, energyefficient facility will be the main distribution center for the entire state of Georgia, along with parts of South Carolina, Alabama and Tennessee. The facility spans over 150,000 square feet, and the

U.S. IMPORTS OF DAIRY

$150 $100 $50 $0 JUL

JUN

MAY

APR

MAR

FEB

JAN

DEC

NOV

SEP

OCT

TOP DAIRY HTS IMPORTS (JAN-JULY 2014)

2013

2014 Jan-July 2014 by total value

■ Italy ■ New Zealand ■ France ■ Canada ■ Spain ■ All Others OCTOBER 2014

• FOOD LOGISTICS

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Lineage Logistics, a provider of cold storage facilities, recently unveiled a 226,000-square-foot, state-of-the-art, LEED-certified cold storage and food processing facility in Santa Maria, Calif. The facility, which spans more than 10 acres and 5.7 million cubic feet of freezer warehouse storage space, is a centerpiece for regional agricultural production and storage. The facility will create ® more than 250 jobs, both on-site and at adjacent food processing facilities, while at the same time setting a new standard in cold storage distribution facilities for the area.

HTS Code

Lineage Logistics is a warehousing and logistics company built to deliver sophisticated, customized, and dependable cold chain solutions nationwide. Lineage was formed through the combination of premier regional temperature controlled warehousing companies with long histories and strong reputations. The Lineage name combines our unique heritage and expertise with the connectedness of cold chain logistics. It conveys our forward-looking momentum as well as our core values of personal integrity and a commitment to enduring partnerships.

Port-Centric Warehousing Strategic locations linking U.S. and global markets

Manufacturing Outsource product manufacturing to streamline logistics

Dedicated Distribution Facilities 3rd party facility management and design, build, and operate solutions

High-pressure Processing Preserve and protect product while extending shelf life

Dry Warehousing Highly-customizable services for

Re-distribution Optimize the supply chain by shortening$143,434,094 transit times and reducing costs

On-Site Food Processing OpportunitiesNesoi, for co-located customer 0406909500 - Cheese And Substitues For Cheese Including Mixtures, Containoperations ing Cow’s Milk (except Soft-ripened Cow’s Milk Cheese),addtl processing U S Note 16& Provision

0406905600 - Cheeses Made From Sheep’s Milk In Original

Transportation LTL, consolidation programs, LoavesTruckload, And Suitable For Grating drayage, and transportation management

COMPLETE COLD CHAIN SO

HIGHLIGHTS

COMPANY OVERVIEW

0404901000 - Milk Protein Concentrates, Whether Or Not Sweetened, Nesoi various goods and processes

Countries of Origin

Lineage Logistics Opens Cold Storage Facility In California

U.S. imports of dairy totaled over $966 million so All data provided by far this year (Jan-July 2014). Dairy imports are up Zepol. Visit zepol.com over 6.7% compared with the same time in 2013. for a Free Trial Milk protein concentrates were the top dairy SERVICES Logistics Consulting product imported in the United States and the Public Warehousing New market evaluation and project Distribution professionals with diverse development advisory majority of U.S. dairy imports originate in Italy. product and commodity expertise

$200

AUG

Value USD (Millions)

U.S. Imports of Dairy

space allows for future expansion of an additional 50,000 square feet.

Value (US$)

Packaging State of the art packaging and $121,445,565 repackaging solutions Customs Brokerage Single-point provider for import / $97,478,572 export services

0406909900 - Cheese And Substitues For Cheese, Including Mixtures, Nesoi $78,131,074 21700 Barton Road, Colton, CA 92324 lineagelogistics.com 0406904600 - Cheese, Swiss Or Emmenthaler With Eye Formation, Described In Additional U.s. Note 25 To This Chapter And Entered Pursuant To Its Provisions

$70,791,297

0406904200 - Romano, Reggiano, Parmesan, Provolone And Provoletti Cheeses, Made From Cow’s Milk, Nesoi

$53,099,513

0406905700 - Cheese, Pecorino Made From Sheep’s Milk, In Original Loaves, Not Suitable For Grating

$39,901,528

0404100500 - Whey Protein Concentrates, Modified Whey, Whether Or Not Containing Added Sugar Or Other Sweetening Matter

$31,887,234

0406909700 - Cheese And Substitues For Cheese Including Mixtures, Nesoi, Containing Cow’s Milk (except Soft-ripened Cow’s Milk Cheese), Nesoi

$30,929,252

0406109500 - Fresh (unripened Or Uncured) Cheese, Including Whey Cheese And Curd, Nesoi

$28,931,140

All Others

$242,279,585

SCALE

▷ 2nd largest facility netwo

North America

▷ 544MM+ cubic feet of ca ▷ 102 facilities across 21 st

STRATEGIC

▷ An experienced, dedicat that puts our customers aims to exceed expectati

▷ Locations prime for reta distribution, food harves production, import and and blast freezing

▷ Expertise in a broad rang solutions to creatively an energetically meet custo

▷ Continually improve and leading edge to help cus thrive in changing, comp environments

1 (800) 678 7271

Source: Zepol, www.zepol.com www.foodlogistics.com

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SUPPLY SCAN

NEWS FROM A CROS S THE F O O D SU PPLY C H AIN

Swire Cold Chain Logistics Opens Shanghai Facility Swire Cold Chain Logistics Co. Ltd., a wholly-owned subsidiary of Swire Pacific Cold Storage Ltd., opened a new cold storage facility at Fengxian in Shanghai, China, according to Global Cold Chain Alliance. John Slosar, chairman of Swire Pacific Ltd. and J. B. Rae-Smith, Swire Pacific’s executive director for the trading and industrial division, officiated at the opening ceremony, with Jiang Hongxia, deputy director of development zone of Fengxian District, and Xu Jianlong, director of Economic Commission of Fengxian District as guests of honor.

The new facility is Swire Pacific Cold Storage’s first wholly-owned cold storage facility in Mainland China, marking the company’s expansion into the country’s fast growing cold chain logistics industry. Driven by the increasing affluence of the middle classes, who have a growing appetite for frozen packaged foodstuffs, China is seeing a burgeoning demand for cold chain services. The growing awareness of food safety issues has also highlighted the importance of modernizing the country’s food supply chain.

Carrier Transicold Uses Solar Panels To Maintain Refrigeration A new accessory from Carrier Transicold harnesses the power of the sun to charge transport refrigeration unit (TRU) batteries to maintain peak performance in an environmentally sustainable way. Developed specifically to maintain TRU battery charge, the thin-film, flexible solar panels are installed on the roofs of trailers, truck bodies and refrigerated rail cars chilled by Carrier Transicold or other sys-

OCTOBER 2014

tems. When exposed to daylight, the panels continuously charge TRU batteries, ensuring power for system starts and helping to avoid issues and costs associated with a weak or dead battery. “Refrigerated fleet demands for value-added electrical loads have increased in recent years, tapping refrigeration system batteries to power additional electronics such as telematics devices, fuel-level sensors, interior trailer lighting and other accessories,” said Jason Forman, marketing manager for truck trailers at Carrier Transicold Performance Parts Group. Solar panels can also help conserve fuel by minimizing the need to run the TRU engine to charge the battery. Carrier Transicold solar panels provide up to 1.8 amps per hour and are compatible with 12-volt wet cell and absorbent glass mat batteries. Amorphous silicon solar cell technology performs reliably even in low and indirect lighting conditions. Weighing less than 2 pounds, the panels are highly flexible and measure less than oneeighth of an inch thick. Designed to withstand the harsh transportation environment, they are waterproof and puncture-resistant and have a 5-year limited warranty on power output.

Woolworths Australia Posts Online Grocery Sales Boom Woolworths revealed a boom in online grocery shopping that has made Internet shopping its fastestgrowing segment, according to The Sydney Morning Herald in Sydney, Australia. Woolworths spent the past year investing millions developing its online shopping offering and infrastructure – including a so-called dedi-

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cated Internet only dark store – for its food and alcohol businesses and in response, customer orders soared. That drove revenue from online shopping up 50 percent from $0.8 billion in 2013 to $1.2 billion in total transactions this year. That translates into about 3 million items being delivered to homes every week around the country. The company focused its efforts this year on equipping existing stores to offer “click and collect,” where customers can order online and pick up in person. This service is now offered at 202 of its 931 stores around the country. It also offers 17 “drive-thru” options.

Kroger Tests Click And Collect Service In Cincinnati Kroger officials said they are testing a grocery pick-up service in Cincinnati, according to The Courier Journal in Louisville, Ky. Modeled after Harris Teeter’s “click and collect” at 150 stores in the Southeast, Kroger is now tinkering with the service at its Liberty Township store. Customers order groceries via the Internet, then drive up to pick up their order. Kroger bought Harris Teeter for $2.5 billion in January and has been studying the program for months with plans to expand it elsewhere. The service is not yet available to customers – Kroger is in such early testing, only associates are using it.

Walmart Wades Deeper Into Online Grocery Service Walmart recently unveiled its Walmart Pickup Grocery service to registered customers in Northwest Arkansas, according to news reports. Consumers who want to

use the service must first register online with an email address. WalMart said it will begin extending invitations to try the same-day service via email. Registered shoppers can order from the online site which contains roughly 10,000 grocery and consumable items including fresh meat, dairy, produce and common household products. The consumer then schedules a pickup time ranging from two hours to three weeks after the order is placed. The shopper then drives to one of the kiosk stations at the pickup grocery site at the scheduled time and notifies the attendant who will bring their order to the car. Orders are paid for online. Wal-Mart said this test extends its everyday low prices with no hidden fee or surcharges.

Second Card Fraud Hits Supervalu, Jewel-Osco Supermarkets All Jewel-Osco stores in Illinois, Indiana and Iowa were among several U.S. supermarkets affected by a second payment card fraud incident, according to news reports. The latest attack appears to have occurred in late August or early September, AB Acquisition said. The attack also hit some stores operated by Jewel-Osco’s former owner, Supervalu, which continues to provide IT services to Jewel-Osco and other chains it no longer owns. Jewel-Osco’s parent company could not say in late September how many people were affected by the incident. The company said it believed the malware issue affected all Jewel-Osco stores. The latest attack appears to involve malware different than was used in an incident announced in mid-August. Investigations into both incidents continue, AB Acquisition said. www.foodlogistics.com

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Ideas as Good as Gold There’s more to saving money than cutting expenses. In fact, spending in the right areas of your supply chain—when done wisely—can positively impact your bottom line. Integrating innovative solutions, alternate freight options, and a broad array of services into your supply chain can help safeguard against unnecessary logistics costs.

accelerateyouradvantage.com

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FOOD ON THE MOVE LOGISTICS TRENDS IN OUR INDUSTRY

Port Tampa Bay Signs Agreement With Cartagena, Columbia Port Port Tampa Bay signed a memorandum of understanding agreement with the Port of Cartagena, Colombia that strengthens the bond of comradeship between the two ports and establishes a strategic alliance for collaboration toward commercial pursuits. This recent signing is the latest Raul Alfonso, left, Port in a string of similar Tampa Bay executive vice agreements brought president, shakes hands to fruition between with Giovanni Benedetti, Port of Cartagena comFlorida’s largest port mercial director. and other key Latin American ports such as Quequén, Argentina; Barranquilla, Colombia; Veracruz, Mexico; JAPDEVA, Costa Rica; and the Panama Canal Authority. As with existing “sister port” agreements, this latest one with Cartagena’s port will encourage and support a working business relationship and opportunities for trade growth between the ports and establishes an alliance of cooperation between two ports with similar diverse business portfolios and growth plans. The Latin American trade lane is the strongest and most active for Tampa’s large and diverse port.

Last Mile Carrier LaserShip Teams With ProShip Inc. ProShip, Inc. announced a partnership with LaserShip, the premier last mile parcel carrier that serves the U.S. East Coast. The newfound relationship between ProShip and LaserShip, headquartered in Vienna, Va., will provide a mutual benefit to both of the companies and their customers as ProShip is now recognized as compliant with an additional East Coast carrier. Known for its delivery network, which enhances the speed of shipping, LaserShip will be another carrier for ProShip’s customers to choose from when shipping packages.

Farmbox Direct Subscription Delivers Local, Organic Produce Farmbox Direct brings 100 percent 12

OCTOBER 2014

• FOOD LOGISTICS

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CMA CGM, China Container and United Arab Shipping Form 3-Way Alliance

rench container shipping group CMA CGM has created an alliance with two rivals after an attempt to partner with Maersk and Switzerland’s MSC was vetoed by China earlier this year due to competition concerns, according to Reuters News. CMA CGM has agreed to a route-sharing alliance with China Shipping Container Lines Co Ltd. (CSCL) and United Arab Shipping Co. (UASC) to be known as Ocean Three in a bid to save costs on key container routes. The shipping industry has been battling overcapacity linked to a glut of new vessels ordered during a boom period before the global financial crisis of 2007-2009, forcing operators to look for ways of becoming more efficient. CMA CGM said the new alliance would cover routes between Asia and Europe, as well as Asia and North America.

USDA-certified, organic, seasonal and pesticide-free produce to customers weekly on a subscription basis from New York to Washington D.C. Farmbox Direct offers three different size boxes ranging from $36.95 to $58.95. Following the company’s launch in Manhattan and Brooklyn, Farmbox Direct has expanded throughout the East Coast and plans to expand and serve customers nationally. This fall, Farmbox Direct will make its first move on the national stage, releasing a monthly subscription box stocked with up to 12 packaged snacks—everything from popcorn and cookies to rice—that will ship out on the 15th of the month. Prices will range from $20 to $30, and customers can elect

Ashley Tyrner, founder and CEO of Farmbox Direct, brings 100 percent USDA certified organic seasonal, and pesticide-free produce to customers weekly on a subscription basis from New York to Washington D.C.

to continue ordering any of the products in future deliveries.

Transportation Investment To Grow Fast In Africa And Asia Global capital project and infrastructure spending in Africa is expected to grow to more than $9 trillion annually by 2025, up from $4 trillion in 2012, according to a new report issued by PwC, “Capital Project and Infrastructure Spending: Outlook to 2025.” The report, for which Oxfords Economics provided research support, analyzes infrastructure spending across 49 of the world’s largest economies, which account for 90 percent of global economic output. It covers five industry sectors – extraction, utilities, manufacturing, transport and social – and forecasts their impact on seven major world economic regions (Western Europe, Latin America, Asia-Pacific, Middle East, sub-Saharan Africa, Former Soviet Union, and Central and Eastern Europe). It estimates the scale of current infrastructure investment and assesses the prospects for future investment from now to 2025. Overall, close to $78 trillion is expected to be spent globally between now and 2025 on capital projects and infrastructure. The report finds that during 2011 to 2012, the global infrastructure market rebounded www.foodlogistics.com

10/6/14 2:36 PM

Clean Energy Fuels Corp. announced it will fuel the first heavy-duty natural gas trucks deployed by Bimbo Bakeries USA, the largest baker in the U.S. Trucking fleets across the nation continue to expand or begin natural gas fueling operations. Clean Energy and approximately 40 competitors have opened nearly 100 public heavy-duty truck-friendly stations so far in 2014, according to the U.S. Department of Energy Alternative Fuels Data Center. This translates into an annual infrastructure growth rate of over 20 percent with certain markets like Texas experiencing significant natural gas fueling station growth. Grant awards affecting Clean Energy and its growing portfolio of natural gas fueling customers were also announced.

Loblaw Tests Click And Collect Drive Through Loblaw Companies Ltd. is preparing to pilot a grocery click-and-collect program which will allow shoppers to order online and pick up their completed order at stores, according to The Toronto Star. The Loblaws at 301 High Tech Road in Richmond Hill, Ontario has been set up with a bright orange click-and-collect area that includes assigned parking. Customers will be able to pay online and have the groceries loaded into their vehicles. Loblaws announced earlier this year that it would pilot a click-and-collect program, but provided few details. A company spokesman declined to elaborate recently, although he did confirm that Richmond Hill will be the first location to offer the new service. “The service is not yet available to the public, but we’re excited by the prospect of offering busy customers another option www.foodlogistics.com

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Kane Is Able Acquries Nexus Distribution’s Southeast And Northeast Hubs Third-party logistics provider Kane Is Able, Inc. has acquired the Southeast and Northeast regional hubs of Nexus Distribution Corp., a third-party logistics company headquartered in Bloomingdale, Ill. The acquisition of Nexus’ Atlanta, Ga.

and Allentown, Pa. distribution campuses reflects Kane’s strategic focus on bringing integrated logistics solutions to new markets. Kane customers will immediately benefit from expanded distribution coverage and increased capabilities. Nexus Distribution Corp. will continue to operate its Chicago-area locations. With the expanded distribution capability in Allentown and Atlanta, Kane increases its total managed square footage by more than 10 percent to 7.5 million square feet of space, with locations in every region of the U.S.

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from the global financial crisis, and will continue to grow between 6 percent to 7 percent yearly to 2025. The report shows that the recovery will be geographically uneven, led mainly by Asia, as spending overall shifts from West to East. The Asia-Pacific market will represent nearly 60 percent of all global infrastructure spending by 2025, driven mainly by China’s growth. Western Europe’s share will shrink to less than 10 percent from twice as much just a few years ago.

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• OCTOBER 2014

10/6/14 2:36 PM

COOL INSIGHTS BY LARA L. SOWINSKI

Cold Storage Expansion Stays Brisk

he pace of expansion in the cold chain sector remains full speed ahead. A number of significant developments are supporting growing fresh and frozen food shipments, both within the U.S. and internationally. Containerized ocean carriers are adding more reefer capacity while cold storage providers continue building out their network, particularly near key ports. Preferred Freezer Services (PFS) is one company in the midst of expansion domestically and abroad. The New Jersey-based cold storage provider added to its presence in China with the opening of a third facility located in Tianjin last year. Two other facilities are located in Shanghai and another Asian facility opened in Vietnam in 2010. In June, PFS opened its seventh cold storage facility in California, a 250,000 squarefoot facility in San Leandro, near the Port of Oakland. The facility features an oversized truck yard, 23 dock doors, and three different temperature zones to accommodate a range of products under one roof. “Our existing and new customer demand in San Francisco Bay Area for additional cold storage space has continued to grow over the last three years and we are thrilled to finally be able to meet those requests,” said CEO John Galiher. The company also expanded in South Florida with a new Miami facility in July, bringing the number of facilities in the state to four. Boasting 9 million cubic feet of storage space, the facility is located near all major roadways and can perform on-site inspections as well as packing and labeling services. PFS’s newest project got underway this spring in Richland, Wash., the first PFS cold storage facility in that state. Once it is completed in 2015, it will be the largest public refrigerated warehouse in North America and the largest single cold storage facility built at one time in the world, according to the company. 14

OCTOBER 2014

• FOOD LOGISTICS

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Preferred Freezer Services’ newest cold storage project is located in Richland, Wash. Once completed, it will be the largest public refrigerated warehouse in North America.

Specifically, “The completed facility will stand at 120 feet tall. It will cover 455,000 square feet with 313,000 square feet dedicated to automated freezer space,” said PFS. Furthermore, the freezer facility will be automated with robotic cranes rather than human-operated equipment. The new facility is sited near an existing railroad spur. The track system will provide 207 miles of pallet support and will have the capacity for 50 rail cars per day. Meanwhile, South Carolina’s Port of Charleston is betting additional cold chain capacity will help it attract more business and heat up competition with its rival, the Port of Savannah. In September, AGRO Merchants Group opened a new cold storage facility near the Port of Charleston that offers 121,000 square feet with 14,000 pallet positions along with USDA meat import and export inspection services and eight 24-hour blast freezing cells. The new facility more than doubles the cold storage capacity in the Charleston market. “In some respect, we are taking a risk by coming to a market like this because we are putting a lot of pallet positions in a space that’s going to be competing with a more mature market in Savannah,” said Chris Hughes, president of AGRO Merchants Group, in an interview with Charleston’s

The Post and Courier. “But I happen to think that, because of all the things the port has to offer here, and the fact that our customers have told us, ‘Hey, we really want to be in Charleston,’…we think it’s a really good spot for us.” Indeed, the Charleston area is seeing an uptick in cold storage projects. New Orleans Cold Storage received $12 million from the South Carolina Ports Authority towards an expansion project of its facility in North Charleston, while Lineage Logistics announced in June that it plans to move forward on a 340,000-square-foot refrigerated warehouse project in Palmetto Commerce Park, located near the Port of Charleston. Jim Newsome, president and CEO of South Carolina Ports Authority, noted, “The port is experiencing strong growth in the refrigerated container business; the addition of Lineage’s cold storage and blast freezing facility provides Charleston with the increased capabilities necessary to meet the needs of this important cargo segment.” Lineage is just as busy on the U.S. West Coast. In March, Lineage and Baker Cold Storage broke ground on a new facility near the Los Angeles-Long Beach port complex, which is slated for completion next spring. The facility will eventually accommodate roughly 54 million pounds of food, with 2 million pounds of food transloaded daily. Last month, Lineage opened a new 226,000 square-foot facility in Santa Maria, Calif., that spans more than 10 acres and supports the region’s agricultural production. ◆ www.foodlogistics.com

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C O V E R

S T O R Y

FOODSERVICE CHARGES FORWARD Consumer lifestyles drive away-from-home food sales; evolving formats challenge foodservice supply chain.

BY ELLIOT MARAS oodservice will post its sixth consecutive sales increase this

year as the nation continues to recover from the recession, according to the National Restaurant Association. This year’s anticipated 3.6-point aggregate foodservice sales gain builds on a long-term growth trend of away-from-home food sales as convenience eating plays a bigger role in consumers’ lifestyles. And as eating habits become more irregular and consumers exert greater control over their meal choices, thanks in large measure to the Internet, the foodservice industry continues to find new ways to meet a more demanding customer. While the long-term outlook for aggregate foodservice sales remains positive, established foodservice operators face an onslaught of challenges from evolving foodservice formats such as ecommerce, fast casual, onsite foodservice in non-food retail establishments and more. In response to these challenges and the rising cost of operations, foodservice operators find themselves in a perpetual quest to improve operating efficiencies. They continue to look to foodservice manufacturers, distributors and logistics professionals for ways to reduce overhead, improve service, increase sales and reduce customer attrition. All industry shareholders face rising operating costs, a major driver shortage, increasing regulations and more competition. Foodservice manufacturers and distributors in recent years also cite increasing profit margin pressure from foodservice operator buying groups. The operator purchasing groups have more volume-based buying power when negotiating terms with manufacturers and distributors, who in turn look for ways to reduce costs to maintain profit margins.

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• FOOD LOGISTICS

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Foodservice operators consolidate buying power

is expected to achieve annual synergies of at least $600 million after three to four years, primarily from supply chain efficiencies, merchandising activities, and overlapping general and administrative functions. The Hale Group notes that Sysco is changing its business model to be in line with market realities which include “more contracted business, lower cost-to serve multi-unit operators, a competitive set of highly efficient system distributors, and less influence on operators’ product selection.” The Sysco/US Foods merger naturally raises concern about the level of competition in the foodservice distribution channel. Foodservice operators and manufacturers have both expressed concern that Sysco will be in a stronger position to dictate buying and selling terms. However, the market dominance resulting from the merger will focus mainly on one segment of the foodservice industry–multi-unit operators. And while multi-unit operators command

Foodservice operator buying power will continue to consolidate, according to a report, “Foodservice 2020,” by The Hale Group, a Danvers, Mass.-based global food consultancy, in partnership with the International Foodservice Manufacturers Association (IFMA). The Hale Group expects that by 2020, nearly 80 percent of all foodservice operator purchases–products and services–will be made through a centralized purchasing organization. In response to this pressure, distributors are looking to manage costs, the most obvious example being the proposed Sysco/ US Foods merger. The combined entity will command annual sales of Willow Run Foods in Kirkwood, N.Y. has begun using natural gas to power about $65 billion, accord- some of its tractor trailers, notes Len Basso, vice president of operaing to the companies. The tions. The company has also deployed a Cadec fleet management companies said the merger solution which provides an activity-based compensation plan for drivers. www.foodlogistics.com

10/6/14 4:17 PM

Broadline Foodservice Distributors Drive Efficiencies; Alternative Distributors Find A Place

a large and growing share of the foodservice market, the market continues to create opportunities for niche distributors specializing in fresh produce, locally-sourced foods, ethnic foods and non-traditional foodservice formats such as college bookstores. In the meantime, several regional and local foodservice distributors have reported winning business from Sysco and US Foods as the merger proceeds. A Sysco official told The Wall Street Journal in late September the company expects its market share to suffer slightly as competitors win customers during the merger process. The number of foodservice distributors in the U.S. has actually increased in recent years, according to Technomic, the Chicago-based foodservice research firm. Technomic reports that the number of foodservice distributors has grown in the last seven or eight years. Bob Goldin, vice president at Technomic, says there are more distributors carrying fresh, local and ethnic foods. He further notes that the number of independent restaurants has also increased in recent years following a contraction during the recession, along with multi-unit chains.

Market changes challenge foodservice distributors One reason foodservice outlets are expanding is that convenience, grocery and mass merchant retailers are adding foodservice, notes Richard Tracy, executive vice president of Dot Foods Inc., the Mt. Sterling, Ill.-based redistributor which resells products in less-than-truckload (LTL) quantities to distributors nationwide. www.foodlogistics.com

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From the consumer’s perspective, food can be purchased in more locations than ever, such as electronics stores, hardware stores and others, Tracy says. “We are seeing more and more retailers like this offer things such as salty snacks and candy near their checkout stands,” he says. Foodservice broadliners should pay attention to this growth since they have the expertise and products to help non-traditional food retailers succeed, Tracy says. “There are so many opportunities (for consumers) to buy food,” he observes. In Tracy’s view, convenience stores are working especially hard in foodservice and see it as an opportunity to increase their profit margins. Convenience stores are sometimes serviced by convenience wholesalers that carry a lot of foodservice products and have the necessary expertise, Tracy says. However, not all c-store wholesalers are set up to do this, which presents an opportunity for foodservice broadliners. To Tracy’s point, the National Association of Convenience Stores recently held a webinar on how to optimize the foodservice supply chain. Speakers Joe Chiovera, principal of XS Foodservice and Marketing Solutions; Chris Chila, senior category marketing manager for Hess Corp.; and Tim Barry, corporate director of foodservice and fresh food for Core-Mark all emphasized the importance of commitment and communication when it comes to implementing a fresh food program.

Distributors invest in technology As already noted, small and regional foodservice distributors have claimed the pending

he broadline distributors emerged in the early 1970s offering the concept of a “onestop-shop” distributor, according to The Hale Group. By 2010, they accounted for nearly 60 percent of all distributor sales to operators. The broadline distributor services multi-unit operators with a streamlined and tailored set of services valued by these large operators. As broadline distributors improve operating efficiencies, they will increase the minimum purchase size per delivery and that will cause smaller operators to be unable to meet this requirement, The Hale Group notes. Also, operators will realize alternative distributors offer lower prices for products because the alternative distribution outlets have a different business model and part of this model is lower gross profit margins. Alternative distributors are most often “cash and carry-like” distributors or wholesalers, according to The Hale Group. This includes club format outlets, classic cash and carries and a newer breed of restaurant depots and similar formats. This format is evolving to be more attractive and more popular with the small operator not purchasing through a centralized purchasing organization. The growth achieved by this set of distributors is well above industry growth rates because operators are increasingly recognizing the value provided by these distributors, The Hale Group notes. Specialty distributors provide value by offering a set of specific categories of products that they assemble or manufacture and then distribute to the operator. ◆

Sysco/US Foods merger has created growth opportunities since some foodservice customers want to explore alternative distributor options. The opportunity has encouraged a number of distributors to invest in new technology that will improve their operations and help them serve customers better. In the long-term, Sysco, a leader in warehouse management and transportation management technology, will “raise the bar” for all foodservice distributors as it consolidates US Foods’ facilities, industry observers note. Britt Wood, vice president of industry programs and services at The International Foodservice Distributors Association (IDFA), says IFDA members are investing more in technology in order to improve efficiency. He says they are investing in software, transportation monitoring technology and driver training. IFDA recently began providing its members a quarterly financial report to help with business management. The association has members FOOD LOGISTICS

• OCTOBER 2014

10/6/14 4:17 PM

REDISTRIBUTION:

Remove Hidden Costs In Limited Time Offerings BY TOM VARGA

any restaurant chains and purchasing cooperatives have already implemented redistribution for savings on items their restaurants will use all year. But redistribution has even more benefits to offer for items related to limited-time offerings (LTOs) and regional menu offerings (RMOs) as well. First, a quick primer on redistribution: with redistribution, manufacturers ship truckload quantities of slower moving or seasonal items to a redistributor, who then ships full and mixed truckloads of products to foodservice distribution centers (DCs). By purchasing truckload quantities and then creating full truckload shipments of consolidated SKUs, chains and co-ops can reduce freight costs while experiencing greater reliability. Most chains or co-ops find that redistribution’s initial cost savings run 10 to 40 percent as compared to the cost of LTL shipments. And that’s before other costs related to inefficiencies in the supply chain – like LTOs and RMOs – are even uncovered. LTOs and RMOs are inherently fraught with logistical inefficiencies. These select items will only be carried for a limited time. DCs easily can get overstocked or run out of inventory before the LTO or RMO is over. It’s difficult to properly allocate product in a short period of time using traditional distribution. Often, as the LTO phases out, one DC will have a surplus of items they can’t get rid of fast enough, while others will be out weeks before the LTO is over. The cost of overnight freight to get the items from one DC to another to fill demand is tremendous—it impacts

provide financial metrics, such as net sales, cases sold, gross margin, operating margin and head count, then provides a report that allows members to compare against their individual performance. Wood says small and regional distributors have been growing slowly since 2008. The Hale Group identifies five areas where distributors will be looking for ways to reduce costs and improve efficiencies: Sales force reduction to have broader coverage and apply technology-based solutions to sales tasks. Web-based automated order and information retrieval. Rationalized product offerings based on category management and greater use of redistribution. Improved warehouse and delivery efficiencies through improved order selection, automation, larger drops, better route efficiency and night drops. Improved people skills through the use of technology.

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• FOOD LOGISTICS

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profitability excessively, and just like any other cost, shouldn’t be overlooked. With the right supply chain redistribution partner handling LTOs, they are able to micro-control the supply chain from the time the LTO rolls out to its conclusion. Or, redistribution may only come into play toward the end of the LTO when less product is needed. Since a redistributor can combine SKUs into full truckloads, there’s no minimum order. Another detail that gets overlooked is product managers’ time managing LTO and RMO items. It’s a labor-intensive process for supply chain professionals who get called in on a Saturday when a DC runs out of product. While this isn’t a cost that gets factored into overall landed costs, it affects efficiency. The correct redistribution partner can do the heavy lifting to make sure these items are properly allocated and get where they need to be, when they need to be there. One client used to have four people dedicated to managing LTO items, but after bringing on a redistribution partner, they’ve reported that having this off their plate has not only freed up the time of four staff people, they’re also not experiencing the same phase-in/phase-out inventory management issues they used to have. While redistribution doesn’t eliminate work for co-ops and chains, it certainly reduces their responsibilities in micro managing the supply chain. Supply chain costs will inevitably go up due to any number of uncontrollable factors, from the price of gas to driver shortages. Supply chain managers and product managers have to do everything they can to mitigate those cost increases. Utilizing redistribution to bring costs down is something they can control. ◆ Tom Varga is vice president, business development for Consolidated Distribution Corp., LLC (CDC), a Lemont, Ill.-based foodservice supply chain company serving the fast-casual, quick-serve and casual-dining restaurant industry.

Major focus: driver recruitment One advantage larger companies have in the near term is more resources to invest in driver recruitment, training and retention. Foodservice, like all industries that utilize vehicle fleets, sees the nation’s driver shortage as its most immediate challenge. Foodservice companies are investing in recruitment, training and retention more aggressively than at any time in the industry’s history, both on an individual company basis and through industry trade groups. “In the foodservice industry, so much of the product moves via truck, that the driver shortage and the associated increased costs has almost an exponential effect,” says Mike Seekins, vice president of transportation at Performance Food Group (PFG), the Richmond, Va.-based food distributor. “Obviously we monitor our compensation levels to ensure we are competitive, but more and more of our focus is on the quality of life aspects. How the work is done, how the trucks are loaded, how to keep sched-

ules consistent, and recognition.” PFG supports industry efforts to address the problem because it not only affects the company’s fleets, Seekins notes, but those of its suppliers and customers. “My supplier may not have the driver to bring me my product,” he says. The need to improve the driver’s experience is one reason Conklin, N.Y.-based Maines Paper & Food Service now replaces its trucks every three to four years, says Pat DeOrdio, vice president of operations. This is also one of the reasons the company has introduced XRS mobile software for driver performance compliance. The company, which serves 35 states, also has its own driver training institute. Once hired, drivers have six weeks of further training. Concern about driver quality is a reason Sherwood Food Distributors recently introduced the Geotab fleet management solution, says Jim Gell, executive vice president of operations for the Detroit-based food distributor. In addition to helping management monitor driver behavior, the telematics-based solution makes it easier for drivers to immediately improve their driving behavior. The in-vehicle audible alerts notify drivers of unsafe or potentially risky driving events. “All of this supports the quality of the driver, which is diminishing,” Gell says. In years past, Vietnam-era soldiers returning from military service filled many of the driver, logistic and warehouse positions. That generation is retiring. The soldiers returning from the Middle East have strong skills but very few seem to be filling the driver jobs, Gell says. The IDFA has published a series of articles on its website on ways to meet the challenges of driver recruitment and retention.

Electronic proof of delivery grows One technology that several foodservice distributors are embracing is electronic proof of delivery, which improves accuracy, requires less time for the driver and contributes to sustainability. Some distribuAirclic’s electronic proof tors find electronic of delivery (ePOD) offers proof of delivery real-time order tracking. helpful in keeping track of customer credits. This is important when servicing foodservice accounts. Merchants Foodservice is in the process of introducing Airclic’s proof of delivery system to one of its four DCs, says Matthew Granlund, vice president of operations and logistics for the Hattiesburg, Miss.-based distributor. The company’s drivers will use Intermec’s CN 70 handheld device to capture proof of delivery information. Customers want this, he says, but it takes time to teach drivers how to use it. www.foodlogistics.com

10/6/14 4:17 PM

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A driver confirms delivery with Airclic’s ePOD using a Motorola handheld. Proof of delivery is one of several vehicle management tools Merchants Foodservice is using, says Granlund. The company is also looking into Thermo King’s temperature control system to monitor trailer temperatures. It also has been looking at introducing Lytx Inc.’s Drivecam, a camera placed in the windshield that allows management to review driver activity and provide feedback to improve driving habits.

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• FOOD LOGISTICS

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PFG is testing a proof of delivery sent via email rather than with paper which it hopes to deploy in 2015, says PFG’s Seekins. In many cases, customers want proof of delivery sent to more than one party, such as the company headquarters or a franchise organization. The email notification is easier to send to multiple recipients. “That handheld device becomes the driver’s connection,” he says. “Accuracy of invoice is a big problem in food distribution,” agrees Mike Lee, CEO of Airclic. Airclic’s cloud-based fleet management solutions track transactions in real time and integrate with enterprise applications, such as ERPs, and transportation management and warehouse management systems. “If you don’t have an automated solution, you just can’t keep track of what’s going on through the course of the day,” Lee says. Where distributors used to invest in technology to improve efficiencies, Lee says they are now being driven by customers to enhance supply chain visibility. “The customer is driving those investments,” he says. Real-time visibility is being included in some companies’ requests for propsosal.

Fleet management capabilities expand to meet new demands The second major fleet management goal for foodservice distributors is being able to direct a driver’s mandatory work flow, Lee says. The technology is helpful because the work flow will vary from one customer to another, and it can even vary by the individual product being delivered. For some products, for instance, it is necessary for a driver to take the temperature at the point of delivery. “That becomes part of the electronic record,” Lee says. Mandatory work flow is also important for managing some of the materials a driver handles, such as expensive pallets, freezer bags and titanium racks, Lee says. Still another consideration in foodservice is managing “catch weights.” A customer might order 10 pounds of salmon. “It’s impractical to suggest they’re going to get exactly 10 pounds of fish,” Lee says. When the bulk salmon is packaged at the DC, the actual weight might be differ-

ent than the ordered weight. The real-time invoice allows the driver to charge the customer the exact weight of the delivered package at the time of delivery. The software also provides the driver a map of where everything is in their truck, saving them time at the stop looking for packages, Lee says. This “trailer mapping” software instructs the loader at the DC where to put the product in the truck and the driver will have this available on the handheld.

Telematics-based solutions improve driver performance Kirkwood, N.Y.-based Willow Run Foods, an employee-owned company with a fleet of 84 tractors and 118 trailers serving restaurants such as Wendy’s, Arby’s, Quiznos, and Popeye’s in the Northeast and Mid-Atlantic regions, improved the visibility of its operations with the help of a Cadec telematics-based fleet management solution. The company uses an activity-based compensation plan that pays drivers on a number of variables, including percentage of on-time deliveries, cases delivered, miles driven, number of stops and idling time, says Len Basso, vice president of operations. This type of compensation system requires insight into driver behavior and data. Cadec’s open architecture, Saas-based solution, called PowerVue, ties in to Willow Run Foods’ internal system which allows for management of multiple operations from a single interface, says Basso. “To manage a fleet well, just having an onboard computer isn’t enough,” he says. Cadec’s fleet management solution has also helped Willow Run Foods deploy compressed natural gas (CNG)-fueled vehicles, Basso notes. The company powers 15 of its 84 tractor trailers with CNG. “PowerVue is tracking fuel mileage for both types (diesel and CNG) to help us assess if it makes sense to add more CNG vehicles to our fleet in the future,” says Basso. “With PowerVue, we have the ability to separate the data of the CNG and diesel vehicles, enabling us to track the differences between the two types of fuel.”

Alternative fuels attracting foodservice distributors Willow Run Foods is one of several distributors embracing alternative fuels as a way to operate more sustainably. “We wanted to be environmentally responsible,” says Dan Kindle, at Monarch Beverage Co., an Indianapolis, Ind.-based beer and wine distributor. In addition, he believes the CNG will be more economical due to the lower cost of natural gas compared to diesel and the state and federal credits. Three quarters of the company’s vehicles – a total of 95 trucks – will use CNG by the end of the year, he says. Chain restaurants are often interested in alternative fuels as part of their sustainability initiatives, but not all distributors are finding it an easy choice, given the costs involved. PFG, www.foodlogistics.com

10/6/14 4:17 PM

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according to Seekins, is hoping to begin testing a natural gas fleet, but the company has not even decided which type of natural gas to test. “I can see natural gas as a viable option, but it’s not the answer everywhere,” he says. Dot Foods is testing a natural gas truck in its West Coast operation, Tracy notes. It is a “home every night” type of a truck that does local deliveries. “We are optimistic that natural gas could provide distribution companies an opportunity to lower their costs while reducing their emissions,” he says. “However, there are still barriers to all of this such as limited fueling stations, high costs of the equipment, and the associated maintenance costs.”

Reinhart Foodservice allows customers to place online orders using an iPad.

the product catalog and managing inventory consumption, customers can access recipes, Some companies have found solutions that analyze food costs and review purchase history. marry fleet management with online ordering Additional product information, such as nutrifor customers. tion data, can be viewed with an additional Rosemont, Ill.-based Reinhart Foodservice click. TRACS Direct is accessible 24/7, so LLC recently introduced its latest version of operators don’t have to field quite as many cusTRACS Direct, an online ordering system tomer questions and can spend more time with that helps foodservice operators manage their their kitchen staff managing the front-of-house business, notes Derek Exline, customer engageand back-of-house functions. TRACS Direct is ment manager. now also available in an iPhone version, which Going beyond simple ordering, the system makes taking inventory and placing orders even addresses the most important and often most easier by using the camera function to simply time-consuming tasks for a restaurant operator: scan products. building menus and controlling their food costs. Based on inventory, an operator can simply In addition to placing online orders, browsing push one button to replenish to par level. This also makes it easy for customers to integrate their non-Reinhart purchases, says Exline. Another benefit of TRACS Direct is for owners that have multiple locations. They can see orders, invoices OVER 29,000 ITEMS and inventories across ALWAYS IN STOCK different locations. PFG has also introduced a mobile app that allows customers to track their deliveries in real-time and gain access to recipes, industry ideas, market trends and rebates. “Timing matters in the foodservice business, so we’re excited to provide our customers with the ability to track their delivery status so they can prepare and plan accordingly,” says Fred Sanelli, PFG’s senior vice president for marketing, brands and sales development. The app features the following options:

Online ordering creates options

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• FOOD LOGISTICS

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• Where’s My Truck?: Existing customers can find out when their current delivery is due to arrive, as well as when past deliveries occurred if they were away from the operation. • Recipes: This tab enables users to search a collection of recipes by type of cuisine, season/occasion, day part and type of food. • News and Ideas: In this section, customers can access business ideas and product information. • Market Trends: Users are able to get weekly market updates to help them make informed purchasing decisions. • Videos: Customers can view videos on topics ranging from new products to food shows. • Savings Center: This tab provides current rebate offers available to PFG customers. • Favorites: Customers can create their own list of favorites to refer back to ideas, recipes and rebates whenever needed.

Warehouse automation brings efficiencies, more choices While generally embracing technology, foodservice distributors are moving cautiously with automated warehouse solutions. Most distributors say the cost of automated storage and retrieval systems require a high volume of business to be cost justifiable. Dot Foods’ Tracy notes the company has deployed automation in its Mt. Sterling, Ill. facility. He says it is especially helpful for managing slow-moving frozen inventory. But “automation isn’t the end-all solution,” he says. “We don’t see many (foodservice distribution) companies investing much in automation.” The foodservice market continues to grow as consumers choose to eat away from home more often. While this growth creates opportunities for all participants in the foodservice supply chain, competitive pressure forces operators, distributors and manufacturers to improve their operating efficiencies. ◆

For more information: AIRCLIC, 866-707-2542, airclic.com CARDEC, 800-252-2332, cardec.com GEOTAB, 416-352-7432, geotab.com THE HALE GROUP, 978-777-9077, halegroup.com INTERMEC, 425-348-2600, intermec.com INTERNATIONAL FOODSERVICE DISTRIBUTORS ASSOCIATION, 703-532-9400, ifdaonline.org LYTX, 858-430-4000, lytx.com NATIONAL ASSOCIATION OF CONVENIENCE STORES, 703-518-4272, nacsonline.com NATIONAL RESTAURANT ASSOCIATION, 202-331-5900, restaurant.org THERMO KING, 330-659-3831, tkrichfield.com TECHNOMIC, 312-876-0004, technomic.com www.foodlogistics.com

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GETTING MORE FROM YOUR 3PL Taking collaborative relationships to the next level pays dividends for today’s food and beverage shippers. B Y L A R A L . S O W I N S K I

ecent surveys of the third-party logistics (3PLs) industry are uncovering similar findings when it comes to how 3PLs are repositioning themselves in the market. In short, many 3PLs are seeking to avoid commoditization by offering value-added services to customers while strengthening the relationship between the two parties.

Food Logistics asked a handful of 3PLs with a significant presence in the food/beverage sector their thoughts about how customers can “get more” from them while maintaining a mutually beneficial arrangement. “With capacity levels at an all-time high and little relief in sight, building relationships with your core transportation service providers has never been more important,” states Steve Covey, executive vice president, Choptank Transport. “Shopping by price alone, and not service and reliability, will leave many shippers with big problems when seasonal surges occur and there

is tightened capacity. Maintaining a strong supply chain will help ensure operations continue to run smoothly, without interruption due to lack of capacity.” Indeed, the capacity crunch is only getting worse. The American Trucking Association (ATA) estimates the industry is short by roughly 30,000 truckers nationwide while the improving economy is straining an already extremely tight market. It’s no wonder that more shippers have come to appreciate the value of building a relationship with their 3PLs in the current environment.

Relationships are a fundamental aspect of business. Creating true partnerships between 3PLs and customers opens up new possibilities for cost savings and collaboration.

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Robert Nathan, CEO of Load Delivered Logistics, LLC, also advises shippers to focus on relationships as they look for ways to optimize their transportation and logistics strategy. “The first step towards getting more out of your 3PL is consolidating your carrier network. To maximize 3PL performance, shippers must create mutually beneficial, dedicated relationships with their logistics providers. That means working with fewer, more specialized carriers, creating open lines of communication and focusing on automation tactics and technology,” he says. Additionally, “If you ship perishable products, working with a ‘Jack of All Trades’ 3PL will only harm your cold chain,” says Nathan. “Instead, focus your transportation spend on logistics providers who specialize in what you ship—those providers have relationships with the right carriers and the knowledge and experience to handle your product safely. Once you choose the right 3PL, increasing integration and automation with your provider will ensure that both parties are accountable, accurate and as efficient as possible.” Relationships are naturally a two-way street, and at OHL a considerable amount of effort is placed on customer service as a foundation for building that relationship. “The customer relationship and strong collaboration should be at the heart of the services the 3PL provides,” says Sean Kelly, senior vice president, food and beverage vertical. “At OHL, one of our core values is to provide customers with superior customer service that drives continuous improvement through operational excellence, innovation and flexibility.” To enhance customer service and collaboration, OHL incorporates several vital components into its relationships with customers, including strong account management with regularly scheduled meetings and ongoing communication; forecasting tools and metrics that are contractually tied to account performance outcomes; and continuous improvement prowww.foodlogistics.com

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For more information: grams, such as OHL’s Making Our Customer Great, that includes evaluations of customers’ supply chains to identify opportunities for quality improvement and best practices that can be shared throughout OHL’s customer base. Kenco’s Todd Johnson, senior vice president, operations, suggests the best way for shippers to boost the return on their 3PL investment is “to have a strong cultural fit with your logistics providers and create long-term goals.” He emphasizes that, “Cultural fit can be the single most important element of a successful 3PL partnership, since the chemistry between the two companies—and the people who work for those companies—can make or break a business relationship.” When companies share values, communication occurs naturally, interactions are productive, and success in ongoing, says Johnson. “Trust is a big component. If you can avoid micromanaging every transaction with your 3PL, then both of you can focus on the results,” he says. “To do this, the partners should capitalize on their strengths and be equally invested in each other’s success.” According to Johnson, many companies start working with a 3PL to fix an isolated problem at the lowest possible cost. However, those relationships are usually temporary and only fill an operational gap. On the contrary, a thoughtfully

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CHOPTANK TRANSPORT, 800.568.2240, www.choptanktransport.com COLUMBIAN LOGISTICS NETWORK, 888.609.8542, www.columbianlogistics.com KENCO, 800.758.3289, www.kencologisticservices.com LOAD DELIVERED LOGISTICS, LLC, 877.930.5623, www.loaddelivered.com OHL, 877.401.6400, www.ohl.com planned 3PL partnership, with a strong cultural alignment, can produce invaluable system-wide results that focus on sustainable operational gains, rather than a temporary price break. Choptank Transport’s Covey agrees with the idea of leveraging relationships to uncover opportunities for cost savings throughout the supply chain. “Always ask your 3PL for suggestions regarding possible cost savings,” he explains. “Opportunities to save on pricing can range from a change in palletization, alternate days and routes for shipping, intermodal options and volume pricing.” While moving from a transactional relationship to a collaborative one may not come easy for some shippers, “Open books are easier to read,” proposes Blair Thomas, director of customer care at Columbian Logistics Network. “Sharing information with your 3PL shouldn’t

be considered a loss of control. Consider it an investment into a partnership.” Thomas advocates pushing the boundaries of that partnership into new territory. For example, instead of putting the sourcing of supply chain services into the hands of the purchasing department, “We recommend letting the supply chain professionals handle the sourcing in order to produce a more collaborative solution.” He adds that, “For better visibility and control of your inventory, consider putting the 3PL on your IT system’s platform. It’s become more common, and 3PLs can often provide the operational expertise you’re looking for without the cost and headaches of EDI or other communications integration.” Load Delivered Logistics’ Nathan underscores the key role of software and technology in the overall relationship between shippers and 3PLs. “The supply chain and logistics world is quickly changing. Gone are the days of faxing and emailing—the name of the game is automation and technology. In pricing, warehousing, billing and sourcing alike, manual processes are being streamlined and automated, allowing for increased, high-level analysis and growth. Shippers who adopt automation and find 3PL partners who do the same will be the ones escalating the customer experience and leading the way for the next generation supply chain.” ◆

FOOD LOGISTICS

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SECTOR REPORTS

WARE HOUS E : S to r a g e S o lu tio n s

How Do You Rack It?

Static racking systems offer more ways to stock and replenish inventory. By Elliot Maras

ith food and beverage manufacturers introducing more SKUs to meet the demands of a more diverse customer base, supply chain decision makers are increasingly scrutinizing their warehouse storage layouts and racking systems. Supply chain managers look for ways to improve storage density while at the same time reduce product damage caused by their method of storage. Decision makers also have to consider safety and sustainability. Much attention of late has focused on automated storage and retrieval systems and automatic guided vehicles which offer new storage and retrieval options. Automation, however, requires an investment that not all companies can afford. This article does not address automated systems as such solutions merit their own articles. Static racking systems include numerous options. There are two main types of sys-

The new Goya Foods facility in Jersey City, N.J. has pallet-flow and pushback racks, overseen by Bob, left, and Peter Unanue.

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tems: those designed for warehouses storing large volumes of a limited number SKUs, and those storing smaller volumes of a larger number of SKUs. Drive-in racking, where the forklifts access the rack from an aisle, remains the dominant configuration in f&b manufacturing DCs. Pushback racking, with rails installed at the front of each lane to enable pallets to move back and forth, supports full pallet storage and retrieval. Single-deep pallet racking has low storage density and is good for storing fast-changing SKUs that are retrieved on a first-in, first-out (FIFO) basis. The most efficient rack configuration depends on how the available space in a warehouse matches the volume of inventory, the number of SKUs, how frequently the inventory turns, the lift truck equipment and labor capability. In some cases, the height of the warehouse also comes into play. Goya Foods, Inc., in its new headquarters/distribution facility in Jersey City, N.J., opted to install pallet-flow and pushback racks instead of the drive-in racks it was using in its previous facility, notes Peter Unanue, executive vice president. Pallet-flow racks are on the ground level; pushback racks are above and replenish the pallet-flow racks. “It will allow us to keep an aisle more full more of the time,” Unanue says. “By utilizing pallet flow, we will separate replenishment aisles from picking aisles.” Goya Foods considered installing multiple platforms and having an automated conveyor system, but this would have been a much bigger investment. The company has the option of installing an automated conveyor system in the future, Unanue says. In response to customer demands, many f&b product manufacturers are developing large, centralized distribution centers designed to ship both full pallets with a single SKU as well as partial pallets with a mix of multiple SKUs on the same pallet. “Frequently, we will see facilities that are built with high-density unit load racking configured to handle the

Wakefern Foods in Edison, N.J. uses a carton flow rack, shown by Don Russo, grocery operations manager. Cases are loaded in the rear and picked from the front.

full pallets, combined with less dense racks to support layer picking and ‘each picking’ to support the mixed SKU deliveries,” says John Krummell, president of Advance Storage Products, a rack manufacturer. Warehouses that support ecommerce often use carton flow racks in which retail units can be taken out of a master carton to fulfill single-item purchases. DCs use carton flow racks for general merchandise, health and beauty aids and specialty food items, which are slower moving SKUs, says Marc Wulfraat, president of MWPVL International Inc., a Montreal, Canada-based supply chain consulting firm. Such warehouses usually have carton flow racks at the ground level where employees can pick single items; the upper rack levels can store reserve pallets.

High density storage at less cost A new type of high-density storage media called a flow-rail system can be installed using existing post and beam or drive-in racking systems, Wulfraat says. Two or three rails need to be installed for the full depth of the rack structure which can be up to 10 positions in depth. The box-shaped rails are bolted onto the horizontal beams of back-toback, single-deep racks. A chain within the box-shaped rail rotates clockwise and counterclockwise within the rail to allow pallets to www.foodlogistics.com

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Pallet Flow

Push Back

Wide Span

Selective Rack

Cantilever

Warehouse Racking

SolutionS 8 7 7. 6 3 2 . 2 5 8 9

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be stored and retrieved. A fundamental benefit of the flow-rail system is that there are no angles required as there are with a pushback or flow-through racks. “You get much better use of the clear stacking height of your building and that can translate into higher storage capacity in some buildings,” Wulfraat says of the flowrail system. Earth2O, a bottled water manufacturer based in Culver, Ore., recently installed a flow-rail system at its warehouse, notes Mike Peterson, vice president of operations. The company had been stacking cases of 6-, 12and 24-unit shrink-wrapped packs of 12-oz., 16.9-oz., 20-oz. and 1-liter bottles on the floor. The Exglobe flow-rail system installed within the last few months has improved storage density, Peterson says. Peterson says he investigated other racking options and determined the flow-rail system is the most cost efficient. He says there is no need for a forklift to enter an aisle to retrieve cases. This cuts down on labor, travel time and forklift-caused damage. It doesn’t take any longer for the forklifts to stack the pallets than it did before, he adds. The pallets are stacked two and three levels high in the flowrail system. The Earth20 warehouse now stores 1,500

Plastic Pallets Enhance Sustainability In an effort to drive sustainability, many companies are converting from wood/corrugated packaging to plastic reusable pallets. Orbis Corp. recently enhanced its 40- by 48-inch RackoCell, a pallet engineered specifically to meet the needs of the food manufacturing industries where hygiene, durability and ease of washing are required. The RackoCell is molded in one piece from polypropylene copolymer to offer enhanced stiffness and edgeracking performance up to 2,200 pounds, and features a flow-through design that washes and drains quickly for high sanitation. ◆

pallets compared to the previous 450 pallets, Peterson says; seven to 10 days’ worth of inventory versus two or three days.

Seismic challenges for rack strength This year’s earthquake on the West Coast generated interest in rack strength. Hannibal Industries developed a rack that is designed to absorb a lot of force, such as that which can be caused by a seismic event. Hannibal Industries tested the TubeRack against a standard structural rack using a wrecking ball simulating a forklift traveling

two miles per hour. The forklift hit the racks direct, angled and head on. Steve Rogers, vice president at Hannibal Industries, says the standard structural rack was not able to withstand the force of the forklift while the TubeRack was able to bounce back and yield minimal damage. The TubeRack is designed to respond to a seismic event in a way that allows the rack to move with the motion rather than resisting it, Rogers says. The TubeRack can also feature a doublewide design provided by Twinlode, another manufacturer, that allows loading or unloading two pallets at a time while reducing handling costs, Rogers says. The tubular design also makes it possible to ship more product within trucks and containers and ultimately reduces freight costs. Some building codes on the West Coast are requiring larger foot plates due to seismic events, notes Kevin Rowles, president of Storage Solutions, a storage solution distributor and installer. Some building codes have increased pallet rack foot plate requirements from eight square inches to 12 square inches. “Every time the earth shakes, the plates get bigger,” he says.

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OCTOBER 2014

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The mezzanine option Installing a mezzanine is another way f&b warehouses can add storage space, says Shannon Salchert, marketing coordinator at Cubic Designs, which specializes in mezzanines. A mezzanine creates an additional floor without removing existing floor space since racks can be installed beneath a mezzanine. The mezzanines are built off site, then installed in the location, leaving minimal disruption to processes on the plant floor. Mezzanines can help in providing access to large conveyors and/or palletizers, Salchert says. This was the case at New Belgium Brewery, a Fort Collins, Colo. brewery that was looking to support a bottle conveyor and depalletizer. The brewery wanted to maximize floor space while accommodating diverse elevations and multiple access points to new equipment. The steel mezzanine provided an overhead platform to support a bottle conveyor from a depalletizer to ground-level infeed of filling equipment. The platform includes stairs, ladders and crossovers that provide access to the conveyor system. To address all the various racking considerations, the Rack Manufacturers Institute (RMI) recently released guidelines for storage layout, racking installation, forklift considerwww.foodlogistics.com

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As Volume Grows, Consider Automation Traditional conveyor and static storage approaches work well for smaller enterprises, however, in highdensity, high-throughput operations, employing warehouse automation technologies will be more costeffective long-term, says Rodney Tipton, president of Power Automation Systems (PAS). Candidates for automating their operations typically have more substantial runs per SKU, require deep lane storage, and have a medium to high throughput. ◆

ations, aisle considerations, etc. RMI also issued guidelines for the assessment and repair or replacement of damaged racks. The RMI developed this document in recognizing that used racks continue to play a big role in today’s warehouses, says Shawn MacDonald, president of Joliet, Ill.based Mac Rak, which specializes in rack repair and replacement. MacDonald notes that high employee turnover is a major safety issue in f&b warehouses; employees need to be trained how to operate forklifts and pallet jacks safely to not only prevent accidents, but to minimize damage to racks. As f&b companies respond to changing customer demands, supply chain managers

For more information: ADVANCE STORAGE PRODUCTS, 770-748-4860, advancestorageproducts.com CUBIC DESIGNS, 800-826-7061, cubicdesigns.com EXGLOBE, 514-855-0097, exglobe.ca HANNIBAL INDUSTRIES, 323-513-1200, e-hii.com MAC RAK, 815-723-7400, macrak.com MWPVL INTERNATIONAL, 514-482-3572, mwpvl.com ORBIS CORP., 800-890-7292, orbiscorporation.com POWER AUTOMATION SYSTEMS, 209-249-1616, powerautomationsystems.com RACK MANUFACTURERS INSTITUTE, 704-676-1190, mhi.org STORAGE SOLUTIONS, 844-249-2060storage-solutions.com TWINLODE, 800-535-6719, twinlode.com

need to consider what racking system will yield the greatest productivity, efficiently, safely and sustainably. The traditional static racking systems continue to meet many of today’s warehouse needs, but new concepts are emerging. ◆ FOOD LOGISTICS

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SECTOR REPORTS

TRA NS P ORTATION: Te le ma tic s

STRICTER REGS AHEAD:

Telematics To The Rescue

Telematics solutions improve vehicle management for drivers and fleet managers. B Y E L L I O T M A R A S

f the Department of Transportation’s Hours of Service (HOS) regulations aren’t enough of a hassle for vehicle fleet managers, they will soon face another mandate, the Electronic Logging Device (ELD) rule that ensures commercial vehicles are complying with the HOS regs. The ELD mandate, scheduled to take effect in late 2016, is designed to ensure drivers are not working beyond a maximum number of hours. (See sidebar on page 32.) To help fleets comply with ELD, HOS and other regulations, telematics solution providers have introduced a variety of vehicle management solutions. As the systems evolve, fleet managers and drivers alike find that many of the solutions improve recordkeeping, location finding, vehicle maintenance, safe practices, route planning, temperature monitoring and other aspects of the job. A telematics device installed in a vehicle connects to the engine control module. The device collects data and sends it via modem to a server that organizes it into reports. The device can also send the data wirelessly to a mobile computer in the cab and/or to an office. The computer(s) receiving the data can use it for any number of functions, including driver compliance, engine diagnos-

A driver enters hours of service details using Cadec’s fleet management tools, which help improve compliance and recordkeeping with real-time data, reporting and analytical features.

tics, driver coaching, video cameras, temperature sensors or RFID readers. Some drivers have found telematics-based solutions afford them more drive time since they can track their hours of service faster and more accurately. In addition, an electronic log that a driver can access with the push of

a button helps them comply more easily with roadside inspections. Tracking HOS with an onboard computer can also help drivers avoid financial penalties under the Compliance, Safety Accountability (CSA) rules. Fleet managers have found systems designed to improve safe driving practices can lower insurance premiums, which helps the company’s finances and therefore supports job security.

Telematic solutions evolve

Greenmile software uses satellite images to view a location while reviewing routing activity.

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Increasingly, telematics solutions are bundling more solutions into their offerings. Integrated solutions allow a fleet manager to monitor more functions without having to access as many different Internet portals. Fleet management solutions are also allowing shippers to access functions that meet their specific needs, which can vary significantly. Valley Proteins, which operates 450 vehicles and provides disposal services to supermarkets, poultry processors and restaurants www.foodlogistics.com

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Maria Sotra, Geotab’s director of marketing and communication, says the system is designed to be flexible since customer needs vary. Fleet managers can customize reports, dashboards and exceptions depending on the fleet’s individual needs in the “MyGeotab” interface.

ELD Helps Fleets Comply With HOS And Other Driver Safety Rules

with access to the real-time delivery information through the GreenMile Delivery app, available on any Android or iOS device, Lear says. Telematics solution providers are he electronic logging device (ELD) mandate is one of several regulations offering more fleet and driver manfor commercial truck drivers enforced by the U.S. Department of Transagement options that include both portation’s Federal Motor Carrier Safety Administration (FMCSA). hardware and software. The ELD, which takes effect is 2016, is a way to enforce the drivers’ Telogis offers a single-platform, hours of service (HOS) mandate, which limits a driver’s working hours to 70 Improving visibility for scalable, Web-based solution, which hours in order to lessen the risk of fatigue-related accidents. vehicles and routes it refers to as “vehicle as a hub.” In addition to the HOS, every commercial driver must record the name of GreenMile’s cloud-based transThe onboard device interfaces the driver, duty status, date and time, location of their vehicle, distance travportation suite allows users to moniwith other Wi-Fi readers such as eled, and the USDOT number of the motor carrier. Another regulation affecting the transportation sector is the Comprehentor fleet performance against their RFID readers, onboard cameras, sive Safety Analysis (CSA) 2010, a program administered by the FMCSA planned routes, providing real-time temperature sensors, driver safety designed to improve truck safety and reduce accidents by tracking and feedback on what’s happening in the alerts and other functions. evaluating carriers. CSA’s Safety Measurement System (SMS) calculates the field and automatically passing this Shamrock Foods, a Denver, preceding two years of trucking violations and crash data, and determines updated information back into their Colo.-based foodservice distribua safety score. The information used to calculate a safety score includes route planning software to create tor with a 500-truck fleet, recently crash reports, roadside inspection reports and violations discovered during better routes going forward, says Jeff selected XRS mobile fleet optimizainterventions. Lear, vice president of sales. “With tion and its mobile application proIn addition, FMCSA’s Driver Vehicle Inspection Report (DVIR) requires drivthe click of a button, they can comgramming interface to improve cusers to create a report on their vehicle’s equipment.◆ pare a vehicle’s progress against the tomer service, comply with FMCSA route plan, providing visibility into regulations and the upcoming ELD the delivery day and allowing the distributor to route, customer locations, and status of mandate. Shamrock will use handhelds that easily answer the ‘where’s my delivery’ question their vehicles. They can drill down into any run the XRS application for compliance and from customers.” number of dashboards and reports to get key truck performance data, in conjunction with With multiple map views including performance indicators on their mobile assets proof of delivery applications from Systems Google satellite and Google street view, fleet and transportation goals. Additionally, the Application Engineering, Inc. (SAE). The managers can quickly identify the planned user can choose to provide their end customer driver has one application for both tasks.

SETTING THE PACE FOR SUPPLY CHAIN SOLUTIONS Engineered to be the Best Supply Management Company in North America

Together, International Traders, Inc. (ITI) & First American Carriers, Inc. (FAC) are a comprehensive supply chain solutions and total logistics organization with a core competency and expertise in the retail and foodservice segments of the food industry. ITI & FAC are trusted by leading manufacturers, national chain foodservice operators and distributors as their fully integrated supply chain management partner managing and delivering goods in an optimized, efficient and timely fashion. Our suite of services are anchored in 5 key value components designed to deliver highly reliable and affordably flexible solutions across our customer landscape.

Network Design and Engineering

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OCTOBER 2014

800 Tiffany Boulevard, Suite 300, Rocky Mount, NC 27804 • FOOD LOGISTICS Phone: (252) 407-2000 | E-mail: info@ITI-FAC.com | www.ITI-FAC.com

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www.foodlogistics.com

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SECTOR REPORTS

LAB E LING S OFTWA RE

Labels: Simple Yet So Sophisticated

Label Solutions Enhance Data Capture, Improve Traceability, Speed And Accuracy, And Integrate With Management Software BY ELLIOT MARAS

eeping track of all the label regulatity. The solution includes a thermal transfer tions has become a bigger challenge printer, a POS touch-screen PC and heatfor food and beverage supply chain resistant labels. The solution has proved more managers in recent years. Changes efficient than the pre-printed stickers that to the Nutrition Facts labels is one required a chef to check off boxes. example. Meanwhile, companies Companies that use automatic identificathat export to Europe have to comply with a tion and data capture solutions – such as new European Union regulation concerning bar codes and RFID tags – can fulfill and allergens. Produce shippers are facing requirereplenish orders faster and more accurately. ments to meet the new Produce Traceability Such tools also allow companies to trace Initiative. And, more retailers are requiring products in response to safety recalls. In addivendors to comply with tion, companies use GS1 standards. The these solutions to onus is on label software track assets such as systems to keep pace with pallets, cases, bins new demands. and racks. In addition to helping Label printers food and beverage supply are available as chains to comply with small mobile deviclabel information requirees or stationary ments, label printing tabletop industrial solutions offer automatic printers. Ken Boyd, identification and data marketing director capture capabilities for at Supply Chain inventory management. Services, an OakMost label printing soft- Dynamic Systems’ printer creates labels dale, Minn.-based that include the GS1 barcode and comply reseller of label ware used in food and beverage warehouses inte- with the Produce Traceability Initiative. solutions, cites the grate label printing with following factors as inventory tracking operations. important in selecting a printer: durability, Companies can print labels for almost any power, speed and adaptability. application, including shipping and receivDean Jackson, global partner manager for ing, order and price sheets, packing lists and manufacturing at Zebra Technologies, a procompliance labels. vider of label printers and software, identifies By giving companies easier access to more two of the most popular ways label printers accurate inventory data, such solutions allow integrate with Enterprise Resource Planning users to respond to customer needs faster. (ERP) software: Gate Gourmet, which provides meals for • Direct XML: XML (Extensible Markup airlines and railways, recently found a way to Language), a set of rules for encoding provide special meal labels more efficiently in documents electronically, offers a universal response to increasing customer requests for way of exchanging documents and data such meals. across applications and platforms. With NiceLabel, a label solutions provider, Direct XML, a label design tool designs tapped its Swiss partner, Labeltech AG, to the label and loads the label templates in develop a data-entry form for Gate Gourmet the printer’s memory. ERP data streams are that shows all the product database entries sent out as XML directly to the printer for and allows quick printing in any given quanlabel printing and/or RFID encoding. 34

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• Middleware: ERP output is directed to “middleware” software installed on a server instead of going directly from the ERP to the printer. The middleware translates the ERP output into a format the printer can recognize. Examples of middleware include TEKLYNX, Loftware, Bartender, Niceware and Adobe Interactive Forms. McLain Farms, a Lyons, Ga.-based onion grower, recently installed a barcode label system in its packing facility to comply with the Produce Traceability Initiative (PTI), an industry-wide effort to improve track and trace procedures through the food manufacturing supply chain. McLain Farms installed a Dynamic Systems barcode printer. The Dynamic Systems barcode tracks, labels and ships an unlimited number of products and records their specific characteristics (type, size, grade, weight, etc). The system automatically generates bills of lading and verifies shipments which eliminate charge-backs. A simple touch of the screen determines the contents of the label and how many labels to print. The software automatically collects production information—lot numbers, product attributes, weight and quantity of cartons packed—and provides inventory and traceability reports. The label information is then stored in the inventory database which provides data for inventory management, traceability and shipping. Randy McLain, the company’s owner, says the system increased overall production speed. He says it delivered real-time, accurate production reports; fulfilled traceability requirements; provided accurate real time inventory; printed professional looking carton and pallet labels; and expedited van loading. The PTI is one of several standards that food handling companies need to pay attention to, notes Jenna Wagner, global marketing director at TEKLNX, a label software solution provider. Companies handling exports to Europe have to comply with allergen regulations, she notes. www.foodlogistics.com

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Label printers and software allow companies to print barcodes on clamshell labels.

New software integrates processes Sartori Co., a cheese manufacturer based in Plymouth, Wis., selected a label software solution from TEKLYNX last year in response to the need to manage more products. Multiple custom labels are required which vary in size, type and weight. The company also creates labels for both internal and external use. Pallet tags are used in the warehouse to track inventory quantity and location, while one-off labels are created to communicate specific information to different teams. Sartori worked with Waukesha, Wis.based reseller Miles Data Technologies and TEKLYNX to reconstruct its labeling process and developed new ways to incorporate business data from their ERP system into their label designs. A user now simply has to scan a barcode on the work order and all relevant information is pulled into the label design. This process, which previously took up to a minute per job, has been reduced to seconds, according to TEKLYNX.

www.foodlogistics.com

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For more information: DATAMAX-ONEIL, 800-816-9649, datamax-oneil.com DYNAMIC SYSTEMS INC., 800-342-1662, dynamic-systemsinc.com INFRATAB INC., 805-986-8880, infratab.com MILES DATA TECHNOLOGIES, 800-272-9013, milesdata.com NICELABEL, 888-894-6423, nicelabel.com SUPPLY CHAIN SERVICES, 888-231-9452, supplychainservices.com TEKLYNX, 888-629-4444, teklynx.com ZEBRA TECHNOLOGIES, 866-230-9494, zebra.com

While barcodes allow companies to manage inventory efficiently, RFID offers an alternative data capture and identification technology. RFID uses radio waves to transfer data from an electronic tag, called an RFID tag, through a reader to identify and track the object. RFID tags can be read from several meters away and beyond the line of sight of the reader and can hold more information than a barcode. While RFID tags bring new capa-

bilities to managing and controlling inventory, the technology is more expensive. Many food and beverage supply chain managers believe that barcodes provide the necessary functionality. Many of the newer barcode printers have the ability to also encode RFID tags. From a functional point of view, there are three principal drivers of using both barcode and RFID, according to Datamax-Oneil, a provider of label printers and software: 1) When the environment requires both visual and encoded data; 2) When more memory and/ or greater security is needed; 3) When nonline-of-sight tracking and visual data tracking are both needed. While RFID began as an inventory control technology, the RFID tag’s ability to gather more information than other tools has given it a role as way to control foodborne illness. Infratab Inc., which provides temperature and shelf life monitoring sensors, allows users to track temperatures and the condition of perishables using RFID tags. Infratab sensors can track temperature by case and even item level. Infratab’s data collection software covers a wide range of functions from temperature mapping of rooms and transport vehicles to fine tuning best-used-by dates, monitoring shelf life, and correlating product life with quality assessments. The company’s predictive analytic reports enable analysis of data, budgeting and forecasting, matching sales to inventory freshness, and score carding suppliers and processes. Infratab is currently introducing near-field communication (NFC) tags for mobile phones. “NFC enables small handlers, service providers and users to know how fresh a perishable is,” says Terry Myers, company president. The proliferation of labeling requirements throughout food and beverage supply chains means label software solutions are playing a more important role than ever before. ◆

FOOD LOGISTICS

• OCTOBER 2014

10/7/14 10:40 AM

MARKETPLACE

Load Transfer

Routing Software

Truck Routing Software

Transfers loads from one pallet type to another

Software Tools For:

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Load Transfer Solutions - Enhance safety for personnel

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C ON S ULTIN G

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Phone: 1.855.472.7236 sales@paradoxsci.com www.paradoxsci.com

- Category 3 safety compliant - Prevents contamination from entering production areas - Safer, cleaner & faster than other load transfer devices - Helps meet FSMA, HACCP and GMP compliance

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Visit Booth # N-6106 1-800-628-4065 www.loadtransfer.net

Transportation

ADVERTISER INDEX ADVERTISER........................................................................................ PAGE Airclic.................................................................................................................. 31 C. H. Robinson Worldwide Inc........................................................................... 11 Choptank Transport............................................................................................ 25 Dematic................................................................................................................ 7 EPA Smartway Transport...................................................................................... 5 Ford...................................................................................................................2-3 H & M Bay Inc.................................................................................................... 20 Instructional Technologies.................................................................................. 29

CONSOLIDATION, DISTRIBUTION AND WAREHOUSING ° 888.771.0009

Interlake Mecalux............................................................................................... 27 Isuzu Truck......................................................................................................... 15 ITI & FAC............................................................................................................. 32 Johnson Refrigerated Truck Bodies................................................................... 40

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• Alcohol • Recouping, • Over 1 million beverage repackaging & square feet of storage relabeling storage space • WMS/EDI/RF • US bonded • Rail Served • Food Grade • Close to the NY/ facility • Case pick/piece NJ Piers pick

Lasar Logistics

Phone Number: 732.329.9100 Toll Free: 888.771.0009 E-Mail: sales@lasarlogistics.com

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MoveIt................................................................................................................. 37 Newell Rubbermaid.............................................................................................. 9 Orbis................................................................................................................... 23 PROCAT Management Services........................................................................ 33 PSI Technics....................................................................................................... 35 Ryder.................................................................................................................. 19 Save-A-Load...................................................................................................... 13 Uline................................................................................................................... 22 Utility Trailers...................................................................................................... 21 Westfalia............................................................................................................. 28

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Online Freight Management

Statement of Ownership, Management, and Circulation (Requester Publications Only) 1. Publication Title

2. Publication Number

Food Logistics

015-667

3. Filing Date

4. Issue Frequency

5. Number of Issues Published Annually

09/29/14 Jan/Feb, March, Apr, May, June, Jul, Aug, Sept, October, Nov/Dec

6. Annual Subscription Price

SAVE MONEY

Free to Qualified Subscribers

7. Complete Mailing Address of Known Office of Publication (Street, City, County, State, and Zip+4)

Contact Person

AC Business Media 1233 Janesville Ave Fort Atkinson, WI 53538

Telephone

Tammy Steller

With Online Freight Claim Management

920/568-8393

8. Complete Mailing Address of Headquarters or General Business Office of Publisher

Automate your entire claims process

AC Business Media, 1233 Janesville Ave, Fort Atkinson, WI 53538 9. Full Names and Complete Mailing Addresses of Publisher, Editor, and Managing Editor Publisher (Name and Complete Mailing Address)

Our clients have a 95% success rate in reclaiming losses

Lara Sowinski 3 Huntington Quadrangle, Suite 301N Melville, NY 11747 Managing Editor (Name and Complete Mailing Address)

MyEZClaim

10. Owner (Do not leave blank. If the publication is owned by a corporation, give the name and address of the corporation immediately followed by the names and addresses of all stockholders owning or holding 1 percent or more of the total amount of stock . If not owned by a corporation, give the names and addresses of the individual owners. If owned by a partnership or other unincorporated firm, give its name and address as well as those of each individual owner. If the publication is published by a nonprofit organization, give its name and address.) Full Name

Complete Mailing Address

AC Business Media

1233 Janesville Ave, Fort Atkinson, WI 53538

TranSolutions

Visit TranSolutionsInc.com/money for details

11. Known Bondholders, Mortgagees, and Other Security Holders Owning or Holding 1 Percent or more of Total Amount of Bonds, Mortgages or Other Securities. If none, check here. ¤ None Full Name Complete Mailing Address

1233 Janesville Ave, Fort Atkinson, WI 53538 1233 Janesville Ave, Fort Atkinson, WI 53538

Anil Narang Carl Wistreich

Safety Equipment KEYWARNER

12. Tax Status (For completion by nonprofit organizations authorized to mail at nonprofit rates) . (Check One) The purpose, function, and nonprofit status of this organization and the exempt status for federal income tax purposes: ¤ Has Not Changed During Preceding 12 Months ¤ Has Changed During Preceding 12 Months

Wireless Pedestrian Warning

PS Form 3526-R Facsimile

13. Publication Title

September 2014

15. Extent and Nature of Circulation

Average No. Copies

(1) b. Legitimate

No. Copies of Single

Each Issue During

Issue Published

Preceding 12 Months

Nearest to Filing Date

25176

25046

20045

19286

a. Total Number of Copies (net press run)

Paid and/or Requested Distribution (By Mail and Outside the Mail)

Fits to any forklift Sounds alarm within 50’

14. Issue Date for Circulation Data Below

Food Logistics

Outside County Paid/Requested Mail Subscriptions stated on PS Form 3541. (Include direct written request from recipient, telemarketing and

813-877-4500

www. KEYTROLLER .com

Internet requests from recipient, paid subscriptions including nominal rate subscriptions,

Transportation

employer requests, advertiser's proof copies, and exchange copies.)

(2)

In-County Paid/Requested Mail Subscriptions stated on PS Form 3451. (Include direct written request from recipient, telemarketing and internet requests from recipient, paid subscriptions including nominal rate subscriptions, employer requests, advertiser's proof copies, and exchange copies.)

(3)

Sales Through Dealers & Carriers, Street Vendors, Counter Sales, and Other Paid or Requested distribution Outside USPS. (4) Requested Copies Distributed by Other Mail Classes Through the USPS. (e.g. first-Class Mail) c. Total Paid and/or Requested Circulation [Sum of 15b(1), (2), (3), (4)] (1) Outside County Nonrequested Copies stated on PS form 3541. (Include Sample copies, Requests Over 3 years old, Requests induced by a Premium,

d. Nonrequested Distribution (By Mail (2) and Outside the Mail)

MoveIt Delivers!

20050

19291

4279

5088

Bulk Sales and Requests including Association Requests, Names obtained from Business directories, Lists, and other sources.)

In-County Nonrequested Copies stated on PS form 3541. (Include Sample copies, Requests Over 3 years old, Requests induced by a Premium, Bulk Sales and Requests including Association Requests, Names obtained from Business Directories, Lists, and other sources.)

(3)

Nonrequested Copies Distributed Through the USPS by Other Classes of Mail.(e.g. First-Class Mail, Nonrequestor Copies mailed in

496

412

excess of 10% Limit mailed at Standard Mail or Package Services Rates)

(4)

Nonrequested Copies Distributed Outside the Mail (Include Pickup Stands, Trade Shows, Showrooms, & other sources)

e. Total Nonrequested Distribution (Sum of 15d (1), (2), and (3)) f. Total Distribution (Sum of 15c and e)

4775

5500

24825

24791

g. Copies Not Distributed

351

255

h. Total (Sum of 15f and g)

25176

25046

i. Percent Paid and/or Requested Circulation (15c / 15f x 100)

80.8%

77.8%

16. Electronic Copy Circulation

a. b. c. d. x

Average No. Copies

No. Copies of Single

Each Issue During

Issue Published

Preceding 12 Months

Nearest to Filing Date

2,711 22,761 27,536 82.5%

Requested Electronic and Paid Electronic Copies Total Requested and Paid Print Copies (Line 15C) + Requested/Paid Electronic Copies Total Distribution (Line 15F) + Requested/Paid Electronic Copies) Percent Paid and/or Requested Circulation (Both Print & Electronic Copies) I certify that 50% of all my distributed copies (Electronic & Print) are legitimate requests.

17. Publication of Statement of Ownership for a Requester Publication is required and will be printed in the October issue of this publication. 18. Signature and Title of Editor, Publisher, Business Manager, or Owner

Greg Udelhofen

2,643 21,934 27,434 79.9%

Date

September 29, 2014

I certify that all information furnished on this form is true and complete. I understand that anyone who furnishes false or misleading information on this form or who omits material or information requested on the form may be subject to criminal sanctions (including fines and imprisonment) and/or civil sanctions (including civil penalties).

Are you looking for reliable logistics solutions for your retail merchandising equipment? Contact MoveIt Freight Solutions today for a free cost analysis of your current shipping program. • Retail Merchandising Equipment Project Logistics • White Glove Inside Delivery • Unpacking • Set up and Installation • Storage and Inventory • Pick up and scrap old equipment • Forward Deployment • Coverage in all markets in US and Canada

Discover why major brand retailers rely on the experience and knowledge of MoveIt Freight Solutions for on-time, damagefree shipments and the highest customer satisfaction in the business.

MARKETPLACE

Track trends to prevent future damage claims

Jolene Gulley 1922 East Washington Ave Gilbert, AZ 35234 Editor (Name and Complete Mailing Address)

866-576-0030 www.moveit.com

Contact: Todd Partridge, VP of Operations

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10/7/14 2:18 PM

FOOD (and More) FOR THOUGHT

THOMAS R. CUTLER

The Survey Says:

Leveraging Existing Technology Investments A Top Priority For Food Manufacturers

he most comprehensive survey of technology usage by North American food manufacturers was recently completed by the marketing research division of TR Cutler, Inc. A total of 512 companies participated in the survey. Respondents ranged from c-level executives to IT managers. All respondents were employed by companies with 100 or more employees with headquarters in North America (including the U.S., Canada, and Mexico.) Here’s a snapshot of the survey results: Leveraging existing IT resources: a key finding. Nearly all the respondents indicated that within the past five years their food company invested significant resources (both financial resources and human resources). The most frequent technology referenced was an ERP (enterprise resource planning) solution. Some of the ERP solutions mentioned by name at least five times included: • bcFood ERP • DEACOM ERP • Epicor ERP • JustFoodERP • Microsoft Dynamics AX ERP • Plex Systems ERP • Ross ERP/Aptean • Sage ERP • SAP ERP • SYSPRO ERP • TGIltd ERP Other ERP solutions were also named sporadically among the survey respondents. Derek Singleton, managing editor at Software Advice, astutely noted, “Not only are food and beverage manufacturers closely regulated, they are also subject to heavy scrutiny by news media.” High profile food recalls have raised the public’s awareness about food manufacturing, he says. On the positive side, “One of the main benefits of food manufacturing software is that it helps food manufacturers ensure quality and accuracy in their products by providing extensive features for traceability and inventory management.” However, unlike new food companies or those looking to replace long-standing legacy systems, respondents to this survey are seeking solutions that will augment, interface, and cull data from a myriad of sources, from file cabinet folders to ERP systems’ data. Unlikely to change or replace ERP solution in the next three years: a key finding. Less than 10 percent of respondents (8 percent) suggested their food company would likely change the ERP solution within the next three years. That said, 68 percent complained current technology was insufficient to address the needs of audit processes and ever-changing regulatory enforcement. This dissatisfaction was amplified when more than half these food leaders (55 percent) said they had expected the ERP solution would be sufficient to address these needs. Justifying expanding technology solutions require integration of ERP data: a key finding. From the Food Safety Modernization Act (FSMA) to BRC and ISO2200, these food manufacturing firms identified that exponentially expanding SKUs, thinner margins, and supply chain complexities were among the factors driving the need for new technology solutions. Nearly nine out of 10 respondents (88 percent) said current technology will be insufficient to address the food safety, food quality, regulatory compliance, and supply chain complexities. Most (81 percent) also noted that the increase in global suppliers exacerbated the challenges of meeting GFSI (Global Food Safety Initiative) standards. 38

OCTOBER 2014

• FOOD LOGISTICS

FLOG10114_38-40_FoodThought LS_ES_EM.indd 38

Full-service supplier compliance transcends ERP: a key finding. Food and ingredient manufacturers and brokers require a Web-based, full-service supplier, compliance, and regulatory document management solution that automates the management of supplier risk, data, and documentation, making them ready for an audit every day of the year. Very few of these document management systems are cloud-based SaaS (software as a CUTLER solution), which work with inhouse solutions such as quality management systems (QMS), enterprise resource planning (ERP), and product life-cycle management (PLM), to close the loop on upstream risk. Gary Nowacki, CEO of TraceGains, insists that, “Only solutions that integrate with existing technology and provide collaborative supplier management to ease compliance with FSMA, GFSI and HACCP remain relevant.” Why many food manufacturers have ERP buyer’s remorse: a key finding. With such a large percentage of respondents having purchased their ERP solution within the past five years, there is little wonder why buyer’s remorse occurs. One reason is that many of these systems were designed for discrete manufacturing. While process manufacturing “add-ons” have been appended to address the unique needs of food processors, these solutions are often little more than a Post-it note. More than 82 percent of those surveyed suggested when “add-ons” are implemented, they do not work effectively and create significant risk and overhead. The fact is that the underlying data model and functional capabilities of a process-oriented ERP application are inherently different than those of either a generic or discrete-oriented solution. The discrepancy of currently installed technology solutions: a key finding. Nearly three-fourths (73 percent) of those responding said they were disappointed the currently installed technology solutions did not provide accountability and management of ingredients, raw materials and finished products, including co-products and byproducts. Most (89 percent) said current technology solutions are insufficient, lacking the ability to predict yields, scale production, cost products and perform product recalls; nor was there capacity to evaluate and predict the effect of variable product characteristics and inventory attributes, including multiple units of measure (UOM) and shelf life. All who responded noted some ERP deficiency in functionality, and nearly all suggested and required customization overhead and ongoing maintenance that established a long (often multi-year) ROI. Indeed, Nowacki suggests solutions must demonstrate an ROI in less than six months. Ultimately, when solutions are able to maximize and leverage the current technology solutions, food companies will embrace these technologies. Thomas R. Cutler is the president and CEO of Fort Lauderdale, Fla.based, TR Cutler, Inc. (www.trcutlerinc.com). www.foodlogistics.com

10/7/14 8:26 AM

2014 Educational Webinar SERIES Food Logistics’ Educational Webinar series in 2014, entitled “The Cold Chain: Uncovered,” delves into various aspects of the global cold chain, from the latest advancements in reefer equipment and cold storage facilities, to new transportation services and how shippers and logistics providers are maintaining a safe food supply chain from farm to fork. A different cold chain topic will be explored once per quarter.

Global Supply Chain Solutions for the Food and Beverage Industry

■ NOVEMBER 5: Boosting Warehouse Efficiency in the Food/Bev Sector. From floor to ceiling, there are multiple opportunities to boost efficiency in the warehouse. For some companies, simple and relatively low-cost upgrades involve racking and lighting, while large-scale warehouse Sponsored by automation projects are the solution for others. Food Logistics sits down with supply chain executives to find out the latest trends in warehouse efficiency. http://bit.ly/warehouseauto

■ DECEMBER 10: The Relationship between Cold Chain Integrity and Food Safety. Today’s cold chain provides a foundation for growing trade volumes of agricultural Sponsored by and processed food shipments, opening new markets for imports and exports and giving consumers access to more fresh food throughout the year. Maintaining food safety is paramount, especially in developing countries with limited cold chain infrastructure. This final Webinar in our series takes a comprehensive look at how various players in the cold chain are maintaining food safety throughout an increasingly global food supply chain.

http://bit.ly/ColdChainIntegrity

WATCH FOR THE 2015 WEBINAR SERIES Visit our archived webinars: The Reefer Box: From ‘Plain Old Cold’ to ‘Smart and Controlled.’ http://bit.ly/1veblt6

Cold Storage Facilities: Safer, More Sustainable, and More Efficient. http://bit.ly/1lwKfwn

Fuel Management Strategies for the Global Food Supply Chain. http://bit.ly/transpmgt

Perishables on the Move: Road, Rail, Ocean, and Air. http://bit.ly/1qn1CTG

If your company wants to be included as one of the panelists/sponsors for any of these seminars, please contact Judy Welp at (480) 821-1093, jwelp@foodlogistics.com. Thanks to all our sponsors and panelists. (Dates are subject to change)

FLOG10114_38-40_FoodThought LS_ES_EM.indd 39

For more information on specific times and how to register, visit us at: www.foodlogistics.com.

10/7/14 8:26 AM

A New Definition of Cool The industry’s most thermally efficient temperature-controlled truck body.

Over eighty years of experience and innovation has made Johnson the leader in insulated composite truck bodies that are cost-efficient and lighter in weight than ever before. Choose from four standard models pre-engineered at competitive prices, or from a wide range of custom options including emission-free all-electric refrigeration. Whichever model you choose, you can be sure that it offers the industry’s highest levels of strength and durability, backed by FleetWise™ authorized service repair at Great Dane locations nationwide.

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l i v e p o u lt r y

Johnson Refrigerated Truck Bodies | 800.922.8360 | www.johnsontruckbodies.com

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