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

Food Logistics

WINNERS ARE REVEALED PG. 42

Issue No. 162 Nov/Dec 2014

Global Supply Chain Solutions for the Food and Beverage Industry

SECTOR REPORTS

• Warehouse Energy Optimization • Mobile Devices: Consumer vs. Enterprise-grade

THE FUTURE OF FOOD LOGISTICS

By air, land and sea, transportation innovations are creating new opportunities Pg. 20

F&B PUSHES INTO E-COMMERCE ▼

WHEN CARGO CALLS FOR SPECIAL HANDLING Pg. 36

Subway Improves Data With GS1 'Global Language'

▼ ▼

Pg. 26

WEB EXCLUSIVES

IFDA Solutions Conference Reports Archived Webinars, including FL's Educational Webinar series

WWW.FOODLOGISTICS.COM

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INTRODUCING THE ALL- NEW FORD TRANSIT

POWER TO DO THE JOB.

NO MATTER WHICH ENGINE YOU CHOOSE.

3.5L ECOBOOST

STANDARD

3.7L

ENGINE CHOICES The standard 3.7L gas, the available 3.5L EcoBoost® or the available 3.2L diesel.

Ti-VCT V6

It’s nice when your delivery vehicle delivers for you.

275 horsepower. 260 lb.-ft. of torque. Its twin independent variable cam timing (Ti-VCT) technology automatically adjusts valve opening and closing to match the driving conditions, optimizing performance across the power band. E85 fl ex-fuelcapable and convertible to compressed natural gas (CNG) or liquefi ed petroleum gas (LPG).*

THE ALL-NEW

2015 TRANSIT •

3.2L

POWER

STROKE TURBO DIESEL

The all-new Transit is available with the same engine proven in over 400,000 F-150 trucks, getting the job done with power and durability. It combines twin

turbos and direct injection to squeeze the most work possible out of every drop of fuel with 310 horsepower and 400 lb.-ft. of torque. With towing and hauling power like that, it’s got the chops for any work site.

Great for severe-duty work that forces an engine to idle many hours a day under stop-and-go conditions. This available workhorse delivers 185 horsepower and 350 lb.-ft. of torque. It’s designed to help give you proven Ford diesel ruggedness and dependability. It’s also B20 biodiesel-capable.

THE NUMBERS DON’T LIE

•

*Wh W en ord Wh r ere r d with it th t e CNG/ G LPG L Gaseoous Engg ine Prr ep Pac Packag kage. kag e e.

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Every Transit engine gets a 6-SPEED SELECTSHIFT速 TRANSMISSION designed for low-end acceleration and high-end efficiency. 3.5L EcoBoost not available on vehicle shown.

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ON THE MENU

NOV EMBE R/D EC EM B ER 2014 • ISSU E N O . 162

COVER STORY

The Future Of Food Logistics

By air, land and sea, transportation innovations and developments are creating new opportunities for the global food supply chain. By Lara L. Sowinski

F&B e-tailers employ different business strategies, including home delivery and click-and-collect. By Elliot Maras

36 42 26

SPECIAL REPORT

The 2014 FL100+

Food Logistics’ annual resource guide showcases the growing list of software and technology providers whose products and solutions play key roles in supporting the global food supply chain. By Editorial Staff

SECTOR REPORTS WAREHOUSING

Warehouse Energy Optimization: More Options To Consider

COLUMNS FOR STARTERS

Creating The Next Gen Global Food Supply Chain

Our year-end issue captures the various changes underway that continue to shape our industry. By Lara L. Sowinski

When Cargo Calls For Special Handling

Innovations emerge for lighting, refrigeration, HVAC and improved sustainability. By Elliot Maras

FEATURE

How to manage the delivery of high value, temperature-sensitive food and beverage products. By Elliot Maras

Mobile Devices: Consumer Market Raises The Bar For Work Environments

Mobile communication technology continues to evolve at rapid speed, but user needs still depend on whether the devices are being used inside or outside the “four walls.” By Eric Sacharski

MARKET TRENDS

Food and Beverages Push Into E-Commerce, Raising Questions For The Supply Chain

SOFTWARE & TECHNOLOGY

COOL INSIGHTS

Cold Chain: Key To Supermarkets’ ‘Perimeter’ Sales

The growth in freshly-prepared food dovetails with the opportunities cold chain managers are finding in fresh produce. By Elliot Maras

FOOD (AND MORE) FOR THOUGHT

Nine Innovations To Slash Food Waste

Food waste is a mounting problem in the U.S., but new apps and services aim to reduce waste as well as use expired food for biogas and various other purposes. By Mike Hower

DEPARTMENTS

8 Supply Scan • 14 Food on the Move • 67 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, September, October and Nov/Dec by AC Business Media Inc., 201 N. Main Street, Fort Atkinson, WI 53538. Periodicals postage paid at Fort Atkinson, WI 53538 and additional mailing offices. POSTMASTER: Send address changes to Food Logistics, PO Box 3605 Northbrook, IL 60065-3605. 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.

NOVEMBER/DECEMBER 2014

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• FOOD LOGISTICS

www.foodlogistics.com

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FOR STARTERS FROM THE EDITOR’S DESK

WWW.FOODLOGISTICS.COM

Creating The Next Gen Global Food Supply Chain

his year-end, double issue of Food Logistics represents an excellent compilation of the hottest trends underway in our industry, many of which include a technology angle. Take for example our annual FL100+ list of software and technology providers. This year we added the “+” to accommodate the growing number of important players in this space. From software solutions that improve end-to-end visibility, promote organizational collaboration, and facilitate tracking and tracing of products, to temperature-monitoring deSOWINSKI vices and tools that support an integrated cold chain, along with various telematics solutions and so much more—the exponential growth in this segment is nothing short of extraordinary and the benefits are shared by all, including the end consumer. Our cover story on “The Future of Food Logistics” examines several transportation developments impacting the global food supply chain, or at least poised to do so in the future. Oil prices are bound to reverse their fall sooner or later, which means the unrelenting quest to reduce fuel costs remains top of mind for most. Check out the array of innovations that promise to positively alter our industry with regards to transportation options starting on page 20. You may notice when you read through this issue, as I did before shipping it off to the printer, that the global food supply chain we are collectively creating today looks quite different from the one that existed just a few years ago. Consumers are much Many fleets are replacing diesel fuel with natural gas, which cuts both costs and greenhouse gas emissions. more engaged and informed about the food supply chain and it’s reflected in their buying preferences and demands. The types of food consumers want (local, organic, exotic, fresh, and so on); their desire to shop online, in addition to looking for an improved in-store “experience”; the call for more detailed food labeling and for food free of GMOs, gluten, and trans fats, are a few examples of emerging trends. Foodservice providers, restaurants and grocers are among those tasked with responding quickly to shifts in consumer demands, while simultaneously staying on top of their own business demands and those of their suppliers. The current marketplace requires a laser focus on safety and security (of consumable products, of cargo, of workers, of equipment, assets and data); adherence to multiple local, state and federal regulations; a constant effort to reduce fuel spend and greenhouse gas emissions; and never-ending investments in facilities, technology, and resources. To be sure, the global food supply chain is like no other. That’s what makes this industry so exciting, fresh, challenging and rewarding for each new generation. Enjoy the read.

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

NOVEMBER/DECEMBER 2014

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• FOOD LOGISTICS

Published by AC Business Media Inc.

201 N. Main Street, Fort Atkinson, WI 53538 (800) 538-5544 • www.ACBusinessMedia.com PRINT AND DIGITAL STAFF Publisher Jolene Gulley Editor-in-Chief Lara L. Sowinski lsowinski@ACBusinessMedia.com Managing Editor Elliot Maras emaras@ACBusinessMedia.com Assistant Editor Eric Sacharski esacharski@ACBusinessMedia.com Ad Production Manager Cindy Rusch crusch@ACBusinessMedia.com Art Director Kirsten Crock Senior Audience Development Manager Wendy Chady Audience Development Manager Tammy Steller ADVERTISING SALES (800) 538-5544 East Coast Sales Manager Judy Welp 480-821-1093; Fax: 480-240-4897 jwelp@ACBusinessMedia.com Midwest/West Sales Manager Carrie Konopacki 920-568-8309; Fax: 651-203-0460 201 N. Main Street, Fort Atkinson, WI 53538 ckonopacki@ACBusinessMedia.com National Automotive and Truck Manager Tom Lutzke 630-484-8040 tlutzke@ACBusinessMedia.com 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 CIRCULATION & SUBSCRIPTIONS PO Box 3605, Northbrook, IL 60065-3605 (877) 201-3915, 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 CFO JoAnn Breuchel 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.

12/4/14 11:57 AM

Trucking has its challenges. When K&B Transportation encountered a loading dock issue at one of their largest customers, Wabash National went to work on a solution: from engineering and manufacturing to customer service and sales. With a rapid response team, Wabash National developed an innovative solution that was quickly produced, tested and installed. Problem solved. “Wabash responded with amazing speed.” — Brock Ackerman - Owner, K&B Transportation

When you face challenges in your operation, call the team that gets things done. To hear more about how we helped K&B, visit wabash-trailers.com/responsive.

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SUPPLY SCAN

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

Facilities Must Re-register With FDA By Dec. 31 Food facilities required to register with the Food and Drug Administration (FDA) must renew their registrations between Oct. 1 and Dec. 31, according to the Sandler, Travis & Rosenberg Trade Report. Under section 102 of the Food Safety Modernization Act, all domestic and foreign facilities that manufacture, process, pack or store food, food ingredients, pet foods or dietary supplements are required to renew their registration with the FDA every other year. Facilities can register online, via mail or by fax. U.S. Customs and Border Protection states that beginning on Jan. 1, 2015, if a foreign food facility required to register with FDA fails to do so, food from that facility that is being imported or offered for import into the U.S. could be held at the port upon arrival. As a result, import brokers who file prior notices for food shipments are encouraged to contact clients with high-volume food shipments, inquire about the food facility registration renewal status of foreign manufacturing facilities associated with their shipments, and confirm any new registration numbers.

Online Grocery Sales Set To Quadruple By 2023 By 2023, online grocery sales are projected to range between $80 billion to $123 billion, according to new statistics released by Steve Bishop of Brick Meets Click (BMC) in a recent webinar. Online grocery sales in 2014 are estimated to be about $27 billion by BMC. Currently, online grocery store sales account for about 4 percent of market-level spending, but over the next decade, it’s expected these sales will account for between 11 percent and 17 percent of the total, with some major markets such as New York

NOVEMBER/DECEMBER 2014

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and San Francisco potentially exceeding that level while others where there is less invested online falling below that 11 percent figure, commented Bishop.

Canada Proposes National Database For Tracing Livestock Canada Agriculture Minister Gerry Ritz says a national database for tracing livestock will help improve food safety, according to Canada TV News. The government is spending $7.5 million to develop, implement and operate a centralized service. Plans are to use information from industry groups, including the Canadian Cattle Identification Agency, to build a comprehensive database by 2016. Ritz, saying food safety is the main goal, pointed to the mad-cow crisis, the tainted beef recall in Alberta and a more recent outbreak of porcine epidemic diarrhea in Manitoba.

Amazon.com To Open First Store In New York City Amazon.com, the e-commerce giant, is opening its first store in New York City, according to The Wall Street Journal. The Manhattan store on 34th Street will contain a selection of inventory to accommodate local same-day delivery and shoppers who want to pick up products bought online, according to the report. Amazon is also considering using the space as a showroom for its gadgets, such as its Kindle e-readers and Fire smartphone, the report said. A successful trial could persuade the company to open stores in other cities around the country, the report said. • FOOD LOGISTICS

Thermo King Rolls Out More Energy Efficient Solutions Thermo King has introduced several innovations to extend shipping distance, improve energy efficiency and reduce greenhouse gas emissions. • In 2015, Thermo King will offer marine reefer units with a newer refrigerant that is as energy efficient and reliable as the current refrigerant yet has about half the global warming potential. Customers who want to transition their existing reefer units can do so without any technical adjustments. • The new Magnum Plus Optima enables exporters to provide customers with more sensitive types of fruit and vegetables. Magnum Plus Otima provides an active oxygen removal system within its controlled atmosphere solution. By prolonging the post-harvest life of fresh products, cargo owners can extend shipping distances and reach unexplored markets. The system helps maintain the firmness and crispness of the transported fruits, vegetables and flowers, reducing shrinkage and decay of the cargo. Additionally, it permits growers to harvest produce closer to its natural maturity time and peak flavor. • A new, passive refrigeration technology offers an autonomous refrigeration concept for intermodal applications. Passive refrigeration provides the operational simplicity of a dry container with the cooling capacity and functional benefits of a reefer. The system uses a food-grade eutectic solution to store thermal energy for completely autonomous operation during transport. Passive refrigeration ensures the cargo is transported at the right temperature and humidity conditions to preserve the quality of fresh harvested produce, regardless

of the region, time or operator. This feature gives the cargo owners access to new markets with limited or inadequate conventional reefer services.

Ebola Outbreak Brings Food Crisis To West Africa The Ebola outbreak is causing a food crisis in West Africa. The virus has already killed more than 4,000 people and left many struggling to cope with food shortages and spiking prices, according to news reports. Ebola has now spread throughout most of the country, with a badly-equipped health care system and a series of quarantines hindering the response.

WTO Sees Global Trade Pact Coming The World Trade Organization (WTO) reported there is a “high probability” that an agreement streamlining global customs rules will be implemented after India and the U.S. recently overcame a key impasse. India and the U.S. settled a dispute recently that had paralyzed the WTO and risked derailing the reforms that are seen adding about $1 trillion to global trade. India had plunged the WTO into the deepest crisis in its 20-year history in July by vetoing a deal on streamlined customs rules due to a lack of progress on its demands to be allowed to stockpile food without observing WTO rules on agricultural subsidies. That put the WTO’s future in doubt just months after it appeared to have overcome decades of stalemate on the issue at a meeting in Bali. The breakthrough was the second at the WTO in as many days, following a U.S.-China pact to cut tariffs on IT products, also billed as a $1 trillion advance. The U.S.-India deal is likely to be hailed as a victory for Indian Prime Minister Narendra Modi, who has stressed the importance of ensuring that its 1.25 bilwww.foodlogistics.com

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SUPPLY SCAN

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

Food Security Challenges Mount, Report Claims

Alibaba’s Payment Affiliate Goes Global

store operations and impose costly equipment changes, according to The Food Marketing Institute. The proposed rule changes the listing of several hydrofluorocarbons (HFCs) from approved to unapproved, some of which are commonly used in commercial refrigeration equipment.

Food security poses a growing challenge to the world as the population increases by more than 75 million each year and access to affordable food becomes more difficult, according to the 2014 Global Food Security Index released by DuPont and the Economist Intelligence Unit. Food prices will pose major obstacles to food accessibility as billions in the developing world already spend half to three quarters of their income on food. Rising shortages of water and arable land also present challenges. The Index further noted that obesity and food loss affect access to safe, nutritious and affordable food.

2015 Outlook: E-commerce, ‘Craft’ And Fermented Foods The growth of online grocery shopping and a preference for craft foods, fermented foods and smoked flavors rank among the top food trends for 2015, according to consultant Phil Lempert, known as the “Supermarket Guru.” Lempert predicts the most significant changes next year will stem from a desire for bold-flavored foods that also offer health benefits, and shifts in approach to supermarket shopping – both online and at brick-andmortar stores. Other trends include new eating behaviors among Generation Z and baby boomers, as well as new technologies that improve the ease of reading and understanding nutrition labels.

EPA To Restrict Refrigerants For Retail/Wholesale Food Operations The Environmental Protection Agency has proposed changes that would affect refrigeration systems throughout the grocery store, which could create unnecessary disruptions to

The payment-processing affiliate of Alibaba Group Holding is expanding in the U.S. and Russia, according to reports. Zhejiang Ant Small & Micro Financial Services Group is reorganizing into six business units, including the PayPal-like Alipay, to process digital sales of small businesses globally. The units are focused on areas where they already have a presence, such as Brazil, Spain and China.

tem labels fresh fruits, vegetables and flowers as “good,” “better” or “best” to help shoppers make informed choices in the produce and floral departments.

EU Seeks To Let Members Ban Genetically Modified Crops

European Union (EU) politicians backed a plan to allow nations to ban genetically modified (GM) crops even if they are given approval to be grown in the EU, raising the chance their use will remain limited on the continent. A previous compromise endorsed by EU ministers would have required Whole Foods Market Launchnegotiation with individual comes Fresh Produce Rating panies if a nation wanted to ban a Whole Foods Market has GM crop in the event it had been launched “Responsibly Grown,” approved for EU-wide use. The a tiered proplan approved duce rating by the EU parsystem that liament would assesses growing eliminate that practices that stage and allow impact human member states to health and the ban GM crops environment. on environmenImage courtesy of Whole Foods Market at The rating systal grounds. www.media.wholefoodsmarket.com.

Value USD (Millions)

U.S. IMPORTS OF SUGAR

U.S. Imports of Sugar

$250

U.S. exports of sugar totaled over $1.72 million so far this year (Jan.-Sept. 2014). Sugar exports are down over 10.9% compared with the same time in 2013. Fructose syrup was the top sugar product exported from the U. S. The majority of U.S. sugar exports are arriving in Mexico.

$200 $150 $100 $50

TOP SUGAR HTS EXPORTS (JAN-SEPT 2014)

2014

SEP

AUG

JUL

JUN

MAY

APR

2013

MAR

FEB

JAN

DEC

NOV

OCT

Countries of Destination Jan-Sept 2014 by total value

33%

4% 5%

All data provided by Zepol. Visit zepol.com for a Free Trial

30%

23% 5%

NOVEMBER/DECEMBER 2014

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■ Mexico ■ Canada ■ Japan ■ China ■ Philippines ■ All Others • FOOD LOGISTICS

HTS Code

Value (US$)

1702600050 - Fructose Syrup, Containing More Than 50% By Weight Of Fructose, Nesoi

$321,243,550

1702110000 - Lactose And Lactose Syrup, Containing By Weight 99% Or More Lactose, Expressed As Anhydrous Lactose, Calculated On The Dry Matter

$252,416,622

1704903000 - Confections Or Sweetmeats Ready For Consumption, Without Containing Cocoa

$223,068,224

1702300040 - Glucose Syrup Not Containing Fructose Or Containing In The Dry State Less Than 20% By Weight Fructose

$162,362,909

1704907000 - Sugar Confectionery (including White Chocolate), Not Containing Cocoa, Nesoi

$154,807,521

1702190000 - Lactose In Solid Form And Lactose Syrup, Nesoi

$138,316,051

1701994000 - Cane Or Beet Sugar And Chemically Pure Sucrose, In Solid Form, Refined, Not Containing Added Flavoring Or Coloring Matter, Nesoi

$88,980,422

1702500000 - Chemically Pure Fructose In Solid Form

$69,048,041

1702905000 - Sugars And Sugar Syrups, Including Chemically Pure Maltose In Solid Form, Artificial Honey, Whether Or Not Mixed With Natural Honey, Caramel, Nesoi

$61,620,477

1702300020 - Glucose (dextrose)

$56,325,494

All Others

$188,794,979

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

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SUPPLY SCAN

Image courtesy of Volvo at www.volvocars.com.

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

Budreck Truck Lines Breaks Ground On Cold Facility Budreck Truck Lines broke ground on a 46,500-square-foot freezer/cooler building in Monee, Ill. It will have 4,000 square feet of truck driver lounge/warehouse support areas, 6,000 square feet of trailer maintenance and repair bays, 6,700 square feet of cooler space, 10,000 square feet of freezer space and 12,800 square feet of refrigerated dock space.

implementation of the New Poultry Inspection System (NPIS) rules which would transfer food safety inspection to poultry companies with limited oversight by USDA. The organization alleges NPIS violates statutory requirements, including the Poultry Product’s Inspection Act rule that federal inspectors, not poultry slaughter establishment staff, are responsible for condemning adulterated young chicken and turkey carcasses.

ReeferTek Northeast Starts Refrigerated Truck Rental Program Group Sues To Halt Poultry Inspection System Food & Water Watch recently filed suit in federal court to stop

NOVEMBER/DECEMBER 2014

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ReeferTek Northeast has started a company-managed refrigerated truck rental program, servicing customers in New York, New Jersey, and Connecticut. Previously,

• FOOD LOGISTICS

the company arranged rentals with a third-party vendor on behalf of clients and saw an opportunity to bring the service in-house for the benefit of customers while providing an advertisement for the ReeferTek brand when the vans are out on the road. The company plans to diversify the fleet so customers can sample the various chassis and refrigeration equipment available.

Volvo Nears Deal To Deliver Parcels To Parked Cars Deutsche Post AG’s DHL unit is in talks with Volvo Car Group on a partnership to allow the parcel-delivery service to remotely open autos made by the Swedish manufacturer, according to reports. Discussions with other automakers are also ongoing. The offering would follow a pilot project in Sweden that used Volvo’s GPSlinked On Call service to enter

vehicles. DHL would only get access after the owner accepts delivery via text message.

California Moves On Banning Plastic Grocery Bags Prospects for a California ban on plastic grocery bags improved when the State Assembly approved the measure after an earlier vote failed to garner enough support due to opposition from bag manufacturers, according to Reuters. The measure would ban grocery stores from handing out single-use plastic bags to customers, and would give local bag companies funds to retool to make heavier, multiple-use bags. Customers could purchase paper or compostable plastic bags for 10 cents.

Image courtesy of www.galleryhip.com.

www.foodlogistics.com

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We need to meet on the FSMA requirements

That contamination event is all over the Web

Glad it wasn’t us

Wish we could secure our entire supply chain at the same time Really wish I could watch the game tonight

Gotta get my picks in

After I call logistics back

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To download a free White Paper, visit www.TycoIS.com/FoodLogistics

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FOOD ON THE MOVE LOGISTICS TRENDS IN OUR INDUSTRY

Infinity Transportation (IT) will launch an expedited refrigerated domestic intermodal container service operating from the Pacific Northwest to the Midwest and East Coast. IT’s new intermodal operating platform, Infinity Logistics (ITL), is headquartered in Atlanta, Ga. Daily operations will be managed from a dedicated location in Kansas City, Mo. IT planned to launch its new service in midNovember 2014 with state-of-the-art, 53-foot refrigerated containers built for domestic service. The primary focus of the business will be moving frozen foods and other refrigerated products from Washington and Oregon to the Midwest and the East Coast, with return service to Washington and Oregon. The service will be the only regularly-scheduled, refrigerated domestic intermodal service from Washington to the Midwest and East Coast.

Global Food Cold Chain Council Forms At U.N. Climate Summit Carrier Corp./United Technologies joined the Alliance for Responsible Atmospheric Policy in supporting the formation of the Global Food Cold Chain Council at the special United Nations Climate Summit 2014. The Global Food Cold Chain Council will convene refrigeration system manufacturers, food suppliers, ocean and road transportation providers and food retailers to accelerate the transition to energy efficient transportation and stationary refrigeration systems using lower global warming refrigerants.

Credit: Image courtesy of the United Nations at www.unmultimedia.org.

NOVEMBER/DECEMBER 2014

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ATA Seeks Flexible Hours For Port Truckers

ruckers serving certain ports may soon have some flexibility in federal hours-of-service (HOS) rules if a push by the American Trucking Associations (ATA) and some ports is successful. ATA intends to petition the Federal Motor Carrier Safety Administration (FMCSA) to allow port truckers waivers for some parts of FMCSA hoursof-service provisions, says Petition would seek HOS waiver for some port truckers. Curtis Whalen, director of ATA’s recent Intermodal Carriers Conference. What provisions they may receive waivers for, however, is not yet clear, Whalen says, and will be fleshed out as ATA crafts its petition.

Buffalo Niagara International Gateway Organization To Create Western New York Logistics Hub The steering committee of the Buffalo Niagara International Trade Gateway initiative announced the creation of the Buffalo Niagara International Trade Gateway Organization (ITGO), a not-for-profit entity created to guide implementation of the ITGO strategic plan, released in August, 2014. The primary goal of ITGO is to create a globallyknown logistics hub in Western New York.

Image courtesy of ITGO at www.itgobuffaloniagara.com.

Long Beach Port Drivers Petition For Better Wages And Conditions Drivers and their supporters recently appeared before the Long Beach Board of Harbor Commissioners to ask for help in the fight against trucking companies that misclassify them as independent contractors instead of employees, according to The Contra Costa Times in Contra Costa, Calif. The designation, they argue, allows the trucking compa-

• FOOD LOGISTICS

iStockphoto.com

Infinity Transportation To Launch Expedited Refrigerated Intermodal Service

nies to avoid labor laws and unfairly deduct fuel, maintenance and other fees from paychecks. Harbor commissioners said that while they sympathize with the truckers’ plight, they said they are limited in what they can do to help. Commissioner Rich Dines said the port is working on ways to relieve the congestion for truckers who line up early and wait at a terminal for hours for a cargo container, including efforts to free up more chassis or trailers used to carry containers.

U.S. Postal Service Wants To Test Grocery Delivery The U.S. Postal Service (USPS) has asked the Postal Regulatory Commission for authority to expand a test with Amazon. com (which it entered into for Sunday package delivery) into a broader test to include delivery of groceries, the USPS inspector general has said. Retailers would drop off their grocery orders in color-schemed tote bags at local post offices between 1:30 a.m. and 2:30 a.m., then postal officials would map out the day’s deliveries and city carrier assistants would then load the trucks and deliver the totes between 3 a.m. and 7 a.m., leaving them at front doors, according to FEDweek. Carriers would use iPhones to scan for tracking purposes, the inspector general said. www.foodlogistics.com

12/5/14 8:14 AM

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FOOD ON THE MOVE LOGISTICS TRENDS IN OUR INDUSTRY

South American Vessel Alliance Adds Capacity For JAXPORT

More Supermarkets Rolling Out Pickup Service Several food retailers have recently introduced pickup grocery service. Walmart recently unveiled a pickup grocery service in Northwest Arkansas, according to news reports. Consumers who want to use the service must first register online with an email address. 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. Loblaw Companies Ltd., based in Ontario, Canada, is preparing to pilot a grocery click-and-collect program which will allow shoppers to order online and pick Image courtesy of Walmart at walmart.com. up orders at stores. 16

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Savannah River Deepening To Begin With Raising Of Confederate Ship Image courtesy of JAXPORT.

A new shipping alliance in the South American trade is bringing more big ships into JAXPORT. The agreement, between Hapag-Lloyd, CSAV Group, Hamburg Süd, Aliança, Yang Ming and NYK shipping lines, offers additional capacity for the port to attract cargo moving between the U.S. East Coast and ports in Brazil and Argentina. The ocean carriers will phase in larger capacity vessels for use in the weekly service. As part of the new service, Hamburg Süd’s 5,500 TEU Monte Rosa called on JAXPORT’s Talleyrand Marine Terminal for the first time recently.

Hannaford Supermarkets, based in Scarborough, Me., is proposing a pickup service in the parking lot of one store. Customers will place orders online.

Work could begin as early as December on deepening the Savannah River shipping channel, according to Bluffton Today in Bluffton, Ga. Divers hired to raise a Confederate ironclad sunk 150 years ago could be on site for the anniversary of the intentional sinking which prevented its seizure by Union forces. The CSS Savannah sits on the river bottom, requiring its removal for clearing the way for machines to dig the channel deeper to accomodate lower freighters at low tide.

United Arab Shipping Co. Expands Its Reefer Business United Arab Shipping Co. plans to invest in new reefer units, the company announced at WOP Dubai, the international perishables expo for the Middle East. The company said the expansion of its fleet of refrigerated units and enhanced geographic access to the South America trades – following the carrier’s recently announced cooperation with Hamburg Süd – will ensure its customers have access to the South America trades, including those moving refrigerated cargo.

Reefer Designed For Banana Shipping After the release of the Reefer RoRo Ship design in September last year, Knude E. Hansen A/S, a Denmark-based naval architecture firm, has continued the development of the new Reefer RoRo Ship design, version II. The ship is intended for world-wide operation as a Reefer RoRo Ship in the banana trade, with emphasis on a low box rate by fast and efficient cargo handling in port, which enables slow steaming. In order to optimize cargo handling on the under-deck areas, the bridge and engine in version II have been positioned forward of the ship. Recognizing back-haul cargo potential to Central America, the company increased the height of the four inside decks to allow for general RoRo cargo. On the back haul, the ship is an ordinary RoRo ship.

• FOOD LOGISTICS

States Logistics Services Enhances Sustainability Measures Buena Park, Calif.-based States Logistics Services, Inc. introduced several new sustainability initiatives recently. The company recycles the unused plastic in one packaging operation and has recycled more than 1.3 million pounds per year. Solar roof panels were installed at States Logistics Services’ new Arizona facility while the corporate office in Buena Park, Calif. has a 363-kilowatt, DC solar power system on the roof that produces up to 82 percent of the facility’s electricity. All facilities have undergone an energy audit to review potential energy savings, utility rebates, lighting efficiency and an improved environment. The company has reduced energy consumption on its lighting grid by up to 65 percent by installing fluorescent lighting systems with motion sensors. At the Tolleson, Ariz. facility, only 10 percent of the lighting fixtures are used during daylight periods, thanks to a Kanepi wireless system that provides zonal control and the utilization of ambient light. The company has also begun to convert its transportation fleet to B99 biodiesel fuel, a blend of 1 percent diesel and 99 percent diesel, which yields environmental benefits. The biodiesel reduces sulfates, carbon dioxide emissions, nitrated polycyclic aromatic hydrocarbons and total unburned hydrocarbons.

McKay Transcold Ends Refrigerated Rail Service McKay Transcold, a refrigerated rail provider based in Edina, Wis., has ended operations, the company advised Food Logistics. In cooperation with BNSF Railway, McKay Transcold operated a hub-to-hub, dedicated refrigerated boxcar train between Wilmington, Ill. and Selma, Calif. McKay Transcold began the service with two trains pulling 50 refrigerated boxcars in each direction.

www.foodlogistics.com

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12/5/14 8:14 AM

COOL INSIGHTS BY ELLIOT MARAS

Cold Chain: Key To Supermarkets’ ‘Perimeter’ Sales

Sales growth rates for 2014

hese are exciting times for the food industry. The consumer media and the business press carry colorful reports on how supermarkets are dressing up delis to attract more “home meal” shoppers. A highlight of this year’s Food Marketing Institute (FMI) Connect Conference in Chicago was a tour of Mariano’s Fresh Market. According to many observers, supermarkets recognize in-store deli as the best opportunity to improve sales. Supermarket takeout delis are not new. But in recent years, they have gained a better understanding of the quality and variety consumers look for since retailers began offering “home meal replacement” in the 1990s. Bob Goldin, executive vice president of Technomic, the food research firm, says, “It’s the big growth area” for supermarkets. Much of the focus falls on merchandising, as supermarkets mix fresh, frozen-prepared and refrigerated foods to create enticing takeout meals for time-pressed shoppers. But a big reason so many retailers are fighting back in this arena is a much improved cold chain, notes Dave Donnan, a partner at the consultancy A.T. Kearney. Donnan claims supply chain advancements have revolutionized the speed and scale of food delivery.

Cold supply chain improves A quick check in the field confirms Donnan’s observations. Manny Rangel, Jr., CFO at Amigos Foods, a refrigerated meat distributor with facilities in Houston, Texas, Chicago, Ill., Atlanta, Ga. and Phoenix, Ariz., says the cold supply chain has allowed his company to deliver last-minute “fill-in” orders to supermarkets in just about every part of the country. In addition to filling last-minute orders, his company has been able to capitalize on cross docking opportunities at its warehouses. Freedom Fresh, a Miami, Fla.-based fresh produce and dairy distributor that opened in 2001, now serves six market segments: retail, foodservice, wholesale, cruise ships, exports and cross docking from importers. Jimmy Perez, company vice president, says sales have 18

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been growing 10 to 15 percentage points a year. He credits much of the growth to better software integration. After deploying GreenMile’s routing solution last year, Perez is able to track deliveries as they happen, provide real-time updates to customers, and analyze driver and route productivity. As supermarkets expand their prepared food offerings, food has to be prepared closer to the point of sale, A.T. Kearney’s Donnan says. To do this, they are using the following three strategies: 1) In-store preparation, whereby the store takes delivery of components of final product and completes cooking and assembly in-house; 2) Buying from a commercial commissary, whereby a central kitchen develops food in finished or semifinished form for delivery to retailers, and 3) Buying from a food processor that delivers the finished product directly in ready-to-eat or heat-and-eat form. The growth in freshly-prepared food dovetails with the opportunities cold chain managers are finding in fresh produce. Tom Stenzel, president and CEO of the United Fresh Produce Association, says more fresh produce is being purchased from local growers. The growth in supermarket delis supports this growth as deli offerings include fresh fruit and vegetables, he says. Stenzel sees more growers cashing in on cross docking opportunities as well, serving as forward distribution centers for other growers. He also thinks 3PLs have the expertise to help growers comply with refrigerated transport rules under the Food Safety Modernization Act (FSMA). The growth is still in its early stages, but the food industry isn’t wasting time.

‘Perimeter’ is the growth area FMI recently tapped 30-year Safeway veteran Rick Stein to head up an executive fresh foods council to focus on what supermarket insiders refer to as the “perimeter” of the store – the produce, seafood, meat, instore bakery, deli foodservice and floral. The “perimeter” already accounts for more than half of supermarket sales, he says, and growing. He says e-commerce will further drive

• FOOD LOGISTICS

4.5% 6%

All supermarket food products Perishable departments Freshly-prepared foods within stores

Source: Technomic

this trend since the food e-tailers are mainly pulling traffic from the longer-shelf-life, center store segments. “The perimeter (versus the center) is the differentiator,” Stein says.

In search of even better execution FMI and Technomic are developing a survey to get a better handle on the freshly-prepared food business. The survey will benchmark fresh-prepared food product sales, staffing, labor rates, space allocation, product sourcing, shrink management, merchandising and other key performance indicators for prepared food. Survey questions were not finalized at the time of this report, but Stein says he wants input from supply chain and logistics specialists. The study’s main goal is to find ways to make fresh food profitable, which depends heavily on logistics. He says it’s important for supply chain and logistics people to know what retailers are concerned about, just as retailers should know more about third-party logistic capabilities. As for why “home meal replacement” failed to meet expectations in the 1990s, lessons had to be learned. Technomic’s Goldin says retailers in the 1990s tried to be all things to all people and focused more on variety than quality. A.T. Kearney’s Donnan says they focused on extending shelf life and failed to deliver on consumer expectations. A more capable supply chain is clearly a key reason supermarkets are now more confident in their ability to serve the growing freshly-prepared food market. A larger network of cold storage facilities, better warehouse and transportation management tools, and more all-around professionalism have changed the playing field. ◆ www.foodlogistics.com

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C O V E R

S T O R Y

THE FUTURE OF FOOD LOGISTICS

By air, land and sea, transportation innovations and developments are creating new opportunities for the global food supply chain.

BY LARA L. SOWINSKI

s we near the end of 2014, the price of oil has fallen to a four-year low at roughly $66 per barrel. Ironic, because the rising cost of oil in recent years is largely responsible for driving transportation innovations aimed at reducing fuel costs for supply chains. But considering the U.S. Energy Information Administration estimates that diesel prices will fall from an average of $3.82 per gallon this year to $3.38 per gallon in 2015, it’s unlikely the fossil fuel party will last forever. Fortunately, numerous transportation innovations and developments are in the works and promise to transform the way cargo is transported. Whether by air, land or sea, the goal is improved fuel efficiency and lower emissions. But, that’s not all. New equipment, technologies, infrastructure projects and more are opening up new possibilities for transportation providers and shippers in the food and beverage supply chain.

Look, up in the sky!

fixed-wing, rotary and traditional lighter-thanair (LTA) vehicles to move cargo directly or flexibly to new destinations independent from infrastructure. Both Aeroscraft configurations (models) will move faster than conventional airships (100 knot cruise/120 max) at about 185 kph, outracing boats, trains and trucks.”

The Aeroscraft’s rigid structure is reminiscent of the Zeppelin era, states Kiehle, “but is now built with lighter and stronger carbon fiber and other advanced materials.” A $60 million grant from the U.S. Department of Defense helped fund development of the Aeroscraft in the early stages, although private investors are required to support the next goal—creating a fleet of Aeroscrafts. Igor Pasternak, Aeroscraft’s founder and CEO, wants to build 24 airships and lease them to companies and governments. Aeroscraft has signed memorandums of understanding with several interests, including Singaporebased Pacific Airlift, global aircraft charter company Air Charter Service, and Bertling Logistics (part of Germany’s Bertling Group). The company is now in fleet development for the 66-ton configuration Aeroscraft (ML866), which will be followed by a larger 250-ton pay-

• Clean Energy Fuels targets numerous sectors, including heavy duty trucking.

Helium-filled airships have been used since the 1960s, mostly for advertising, aerial observation and tourism. However, Aeroscraft Corp. believes its new design and engineering advancements will revitalize interest in airships, particularly for cargo applications. John Kiehle, the company’s director of communications, explains that, “Cargo airship utility has been historically hindered by external ballast exchange requirements as well as lack of VTOL (vertical takeoff and landing) flight capability, slow speed, and non-rigid structural design that has limited payload capacity, aerodynamic loading (speed) and propulsion flexibility. The Aeroscraft’s validated, self-ballasting design addresses these limitations, while combining many of the flight attributes and benefits of

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• FOOD LOGISTICS

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load version (ML868). Aeroscraft also expects to begin Type Certification (a certification process that identifes the type of aircraft) with the U.S. Federal Aviation Administration (FAA) in approximately three years. Kiehle says Aeroscraft sees unique transportation options emerging in the food sector. “Aeros shares many bullish industry assessments for the global reefer market and growth prospects for the global food supply chain. We believe the Aeroscraft will soon fill important niches within the global transport landscape, especially with respect to cold chain logistics where the vehicle fleet’s infrastructure independence, landing-site flexibility and overall speed/ cost intermediary status between air and ground alternatives foretells significant strategic and financial opportunities.” Eventually, the Aeroscraft could transport cargoes virtually anywhere in the world quickly and directly, he says, operating in a cost-effective and ecologically conscious manner to provide expedited delivery of large payloads, palletized or containerized cargo. “Lower density, higher value cargoes and perishables will be particularly well aligned to the benefits of transport by the Aeroscraft,” adds Kiehle. “The vehicle is an ideal solution for perishables and other products that require controlledtemperature monitoring, and will be capable of transporting 20-foot, 40-foot and 53-foot containers without requiring ground support equipment,” he says. Meanwhile, Amazon’s much-publicized drones remain grounded, pending regulatory hurdles. Last year, CEO Jeff Bezos announced the company’s Prime Air service would use drones to deliver customer packages in 30 minutes or less. The technology appears ready to go, but the FAA’s proposed rules for drones, which specify that commercial drone operators must be certified pilots of manned aircraft and must remain below 400 feet and in view of the operator, could make it extremely difficult to get Prime Air “up in the air” anytime soon. Global logistics provider DHL is having better luck. In September, the company launched a pilot project on the North Sea island of Juist to test its DHL parcelcopter drones for delivering medications. “This research project represents the first and only time in Europe that a flight by an unmanned aircraft will be operated outside of the pilot’s field of vision in a real-life mission. By taking this step, DHL Parcel has moved to the next phase of the parcelcopter research project it launched in December 2013,” the company stated in a press release. www.foodlogistics.com

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• The Aeroscraft in its Tustin, Calif. hangar. • Engineers monitor the Aeroscraft during a test flight.

Ocean carriers support a growing cold chain With imports/exports of fresh and frozen foods increasing worldwide, containerized and specialized reefer carriers are ramping up investments to keep pace with growing demand. As example, South American reefer exports to North America rose 10 percent during the first half of 2014; one of the busiest trade lanes. Containerized carriers are updating and adding to their reefer equipment fleet. United Arab Shipping Corp (UASC) announced a partnership with Hamburg Sud to gain access to the South American trade lane and plans to make “significant investments” in new reefer units. Gareth Madsen, head of reefer management at UASC, remarked at WOP 2014, the Middle

East’s international perishables expo, that, “Through partnerships with leading operators, investment in some of the largest and most eco-efficient container vessels ever built, and a commitment to expanding reefer services, UASC is moving up the rankings of the global container liner shipping industry in a way that reflects our strategic growth plans. We are continuously investing in our container fleet to meet customer demand and to comply with the most up-to-date specifications. Expanding our reefer fleet will ensure that we continue to offer our customers the most cutting-edge, energyefficient solutions for the carriage of frozen and chilled cargoes.” UASC’s reefer fleet is one of the youngest in the industry, with equipment averaging three years of age. In June, CMA CGM’s Danube set sail on her maiden voyage. The 9,400-TEU vessel is the first of a series of 28 ships in this size that will be delivered through the third quarter of 2016. The Danube boasts a capacity of 1,458 reefer plugs—the largest so far on such a ship—and provides direct service between Asia, Turkey and the Black Sea.

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Seatrade, the world’s largest specialized reefer ship operator, is also making sizeable investments, with orders placed for two new 2,200-TEU vessels that will be deployed on its “Fast, Direct and Dedicated” reefer service. China’s Yangfan Group is the shipbuilder and plans to deliver the vessels in January 2016. According to Seatrade, the vessels “are of an eco design and are equipped with a high reefer capacity that equates to approximately 12,000 pallets,” or approximately 600 standard 40-foot reefer containers per vessel. Reefer vessel designs are also changing to adapt to new marketplace requirements. Denmark’s naval architecture firm Knud E. Hansen A/S recently released version II of its new Reefer RoRo Ship design, which targets the banana trade. The vessel design allows for quick loading and discharge in port, which offsets lost time due to slow steaming (the “new normal” for the shipping industry). In the meantime, the Panama Canal expansion project and new Nicaragua Canal will alter the future of the global food supply chain as well, providing all-water routes for bigger vessels with more reefer capacity. “Those vessels are going to be everywhere when a widened Panama Canal opens,” said Hamburg Sud’s Poul Hestbaek, senior vice president for Latin America West Coast & Caribbean, in a recent interview referring to the new access that containerized carriers will have once the expansion project is completed. At the same time, specialized reefer carriers are expected to continue losing market share to containerized carriers, despite efforts to maintain their niche business. Their share of the 100 million ton perishable trade is forecast to fall to 20 percent by 2018 (from 28 percent in 2013). Construction on the Nicaragua Canal, the largest infrastructure project in Latin America’s history, is set to break ground by the end of the year. The $50 billion, 173-mile long waterway will be designed, built and operated by the Hong Kong Nicaragua Canal Development Group, headed by Chinese entrepreneur Wang Jing. Providing the project sees completion, it would add yet another all-water, east-west trade lane—and direct competition to the Panama Canal.

On the ground, it’s all about alternative fuels From trucks to forklifts, the trend is moving towards alternative fuels that reduce operating costs and cut down on greenhouse gas emissions. Liquefied natural gas (LNG)- and compressed natural gas (CNG)-powered trucks are replacing those that run on diesel fuel, while hydrogen fuel cells are one of the newest

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• The two-man Aeroscraft test flight crew is seated inside the airship’s glass and aluminum cockpit suspended below the hull. options for powering electric forklifts. In September, Clean Energy Fuels Corp. announced an agreement with Bimbo Bakeries USA, the largest bakery in the U.S., to fuel the first heavy-duty natural gas trucks deployed in the company’s California-based fleet. The 16 heavy-duty natural gas trucks use fuel from

Clean Energy’s public access CNG gas station network throughout Northern California. It’s expected that Bimbo Bakeries USA will cut its greenhouse gas emissions by more than 580 metric tons with this initial deployment. Clean Energy and approximately 40 competitors have opened nearly 100 public heavyduty stations this year. According to the U.S. Department of Energy’s Alternative Fuels Data Center (AFDC), there are currently 15, 129 alternative fuel stations in the U.S. (not including private stations). Ryder System, Inc. also announced a significant deal involving alternative fuel. In October, Northeast Foods, based in Baltimore, Md., signed a full-service lease agreement for 25 CNG tractors to support its exclusive distribution and delivery operations for McDonald’s. The vehicles will be delivered to Northeast Foods in 2015. Ryder is a leading provider of natural gas vehicle solutions for the commercial transporta-

Global Fishing Watch Aids Food Sustainability Efforts

hree partners—SkyTruth, Oceana and points covering over 25,000 unique Google—recently unveiled Global Fishing vessels. For the initial fishing activity Watch, a big data technology platform that map, the data is limited to 35 million detections leverages satellite data to create the first global from 3,125 vessels that Google and its partners view of commercial fishing. On Nov. 14, 2014, a were able to independently verify as fishing vessels. prototype was presented at the 2014 IUCN World Global Fishing Watch can then display fishing effort Parks Congress in Sydney, Australia. A public in terms of the number of hours each vessel spent release version is in development. Global Fishing engaged in fishing behavior, and puts it all on a Watch will ultimately give citizens a simple, online map that anyone with a web browser will be able platform to visualize, track and share information to explore. about fishing activity worldwide. Google and its partners state that, “With According to a press release, the platform works hundreds of millions of people around the world by analyzing data points depending on our ocean for from the Automatic their livelihoods, and many Identification System more relying on the ocean (AIS) network. AIS for food, ensuring the longis essentially a GPS term sustainability of our broadcast of a ship’s ocean is a critical global location, and was priority. We need a tool designed primarily as that harnesses the power a safety mechanism to of citizen engagement to avoid collisions at sea, • An interactive Web tool shows all of the hold our leaders accountbut information about able for maintaining an trackable fishing activity in the ocean. the vessel’s behavior abundant ocean.” can be derived by analyzing the identity, speed and Eventually, Global Fishing Watch will be availdirection of broadcasting vessels. Global Fishing able to the public, allowing anyone with an Internet Watch removes all the cargo ships and other nonconnection to monitor when and where commercial fishing vessel activity, providing an unprecedented fishing is happening around the globe. Citizens can view of human interaction with the ocean. use the tool to see for themselves whether their The current version of the Global Fishing Watch fisheries are being effectively managed. Seafood started with 3.7 billion data points, more than a suppliers can keep tabs on the boats they buy fish terabyte of data from two years of satellite collecfrom. Media and the public can act as watchdogs to tion, covering the movements of 111,374 vessels improve the sustainable management of global fishduring 2012 and 2013. A behavioral classification eries. And, fishermen can show that they are obeymodel was applied across the data set to identify ing the law and doing their part, while researchers when and where fishing behavior occurred. The will have access to a multi-year record of all trackprototype visualization contains 300 million AIS data able fishing activity.

• FOOD LOGISTICS

www.foodlogistics.com

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tion industry, deploying CNG and LNG vehicles into the fleets of its customers throughout California, New York, Michigan, Texas, Arizona, Utah, Georgia and Louisiana, as well as in Canada. The company also operates Liquefied to Compressed Natural Gas (LCNG) fuel stations at its Fontana and Orange, Calif., service stations. In addition, Ryder operates an LNG fuel station at its Fulton, Ga. maintenance facility. When it comes to powering electric forklifts, Plug Power Inc. is making headway with advancements in hydrogen fuel cell technology as an alternative to lead-acid batteries. Recently, Newark Farmers Market expanded its invest-

• Clean Energy Fuels’ nationwide network boasts nearly 500 LNG/CNG filling stations. ment in this clean energy alternative by choosing to integrate a full GenKey solution from Plug Power to support material handling operations for a new food distribution building currently under construction at its Newark, N.J. site. Newark Farmers Market purchased an addi-

tional 110 GenDrive units, which will more than double the size of its fuel-cell-powered lift truck fleet at the Newark location. Under the GenKey contract, Plug Power will construct a complete GenFuel hydrogen infrastructure, including indoor dispensers and outdoor fuel storage. The entire GenFuel hydrogen infrastructure will address the current and new GenDrive fleets. Furthermore, in October, Plug Power announced that Golden State Foods, a global, California-based food manufacturer and distributor for the quick-service restaurant industry, would deploy GenDrive hydrogen fuel cells in the material handling fleet at its new food distribution center in Illinois. The 158,300-square foot regional headquarters and logistics center, built on a 15-acre parcel west of Chicago, will serve more than 460 McDonald’s in the U.S. Midwest region. The facility meets LEED Gold Certification standards and other sustainability targets. ◆

For more information: AEROSCRAFT CORP., 818-344-3999, aeroscraft.com AIR CHARTER SERVICE, +44 (0)20 8339 8555, aircharter.co.uk BERTLING LOGISTICS, 281-774-2300, bertling.com CLEAN ENERGY FUELS CORP., 949-437-1000, cleanenergyfuels.co CMA CGM, cma-cgm.com DHL, 800-225-5345 (U.S.), dhl.com Hamburg Sud, 49-40-37050, hamburg-sued.com HONG KONG NICARAGUA CANAL DEVELOPMENT GROUP, hknd-group.com GOOGLE, 650-253-0000, google.com KNUD E. HANSEN A/S, 45-32-831391, knudehansen.com OCEANA, 202-833-3900, oceana.org PACIFIC AIRLIFT, +65-6297-8862, pacificairlift.com.sg PLUG POWER INC., 518-782-7700, plugpower.com RYDER SYSTEM INC., 305-500-3726, ryder.com SEATRADE, (32) 3-544-9493, seatrade.com SKYTRUTH, 304-885-4581, skytruth.org UNITED ARAB SHIPPING CO., uasc.net/en U.S. ENERGY ADMINISTRATION, 202-586-8800, eia.gov U.S. DEPARTMENT OF DEFENSE, 703-571-3343, defense.gov U.S. DEPARTMENT OF ENERGY ALTERNATIVE FUELS DATA CENTER, 800-254-6735, afdc.energy.gov U.S. FEDERAL AVIATION ADMINISTRATION, 866-835-5322, faa.gov YANGFAN GROUP, 0580-3012168, eyangfan.com

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• FOOD LOGISTICS

www.foodlogistics.com

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M A R K E T

T R E N D S

Food And Beverages Push Into E-Commerce, Raising Questions For The Supply Chain F&B e-tailers employ different business strategies, including home delivery and click-and-collect.

BY ELLIOT MARAS

-commerce: it offers so much promise for the food industry, but it remains a promise largely unfulfilled. E-commerce has expanded rapidly in other industries as it offers consumers the ability to shop online, letting them shop when and where they want. The food industry has been the slowest major consumer sector to expand into e-commerce, due to issues such as freshness, product damage, low margins and logistical challenges. According to the research firm BI Intelligence, only 15 percent of U.S. adults have bought food items online and only 1 percent of food and beverage sales are purchased online. But the pace of growth has hastened and will continue to accelerate. BI Intelligence predicts that through 2018, online grocery sales will grow at a compound annual growth rate of 21.1 percent, reaching nearly $18 billion by the end of the forecast period. For comparison, offline grocery sales will rise by 3.1 percent annually during the same period. BI Intelligence offers the following factors for its optimistic assessment of online grocery shopping: • Convenience and a large selection of products. • The emergence of concierge shopping and subscription-prepared meals that are innovating on the online grocery model and offering services that are differentiated from traditional supermarket shopping.

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• Door To Door Organics uses its own fleet for deliveries.

• Some of the biggest names in technology — Amazon, eBay, and Google — are beginning to offer and promote same-day delivery services. As consumers get used to the convenience of ordering something online and receiving it the same day, grocery e-commerce will benefit too, with people more likely to buy food they know they will get quickly. According to Brick Meets Click, an e-commerce consultant, online grocery sales will jump to 17 percent of total grocery sales by 2024.

• FOOD LOGISTICS

Logistics and e-commerce Logistics plays an important role in e-commerce. And because there are different e-commerce business models currently in use, no one knows what model, if any, will dominate f&b e-commerce going forward. This article will provide an overview of the different f&b e-commerce initiatives. A review of these efforts indicates the food industry’s e-commerce challenge is a marketing one more than a logistics one. While logistics plays an www.foodlogistics.com

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A NEW CENTURY OF UTILITY

IS ABOUT TO BEGIN

AFTER 3 SUCCESSIVE RECORD YEARS, we’re still charting a course towards a bright future here at Utility. We can’t wait to share it.

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important role in the economics of e-commerce, the e-tailers that best understand consumer needs will win the future. Hence, while e-tailers employ logistics in investing for growth, no one fully knows what transportation, materials handling and warehouse management systems will dominate e-commerce operations until the most successful business models have been determined. How long this takes is unknown. Datassential, a Chicago-based food research firm, recently examined the food e-commerce market and identified three different markets: prepared meal delivery, meal kit delivery and grocery/packaged goods delivery. Companies such as SpoonRocket, Munchery, Sprig and Caviar deliver complete prepared meals. Services like Blue Apron, Plated and HelloFresh offer customers a choice of dishes from which to order; the companies send ingredients and recipes. Grocery delivery services include Amazon, Peapod and Instacart. While food delivery services have been around since the 1950s, Datassential notes that consumers have only recently become more comfortable with online shopping. The company says phone apps make it easier than ever to order a meal, track delivery and provide feedback.

How will deliveries be made? A big question e-tailers face is whether to handle fulfillment and delivery in-house or to outsource. This year, Kroger agreed to acquire Vitacost.com, a dedicated health and nutrition e-tailer. Vitacost.com’s e-commerce technology and fulfillment centers will enable Kroger to serve customers in all 50 states, including 16 states currently not served by Kroger supermarkets, expanding the grocer’s reach into new U.S. markets as well as internationally. The two largest grocery e-tailers to date, Amazon and Peapod, are following different

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The Sprig app offers a daily rotating menu of three seasonal and sustainable meals designed by former Google executive chef Nate Keller. strategies (see sidebar below). Peapod uses its own fleet for delivering to homes and pick-up centers while Amazon outsources most of its deliveries, the exception being fresh food under its recently-introduced Amazon Fresh. While home delivery is expected to play a major role in grocery e-commerce, it may not be the dominant method by which customers

receive their orders. The pickup option, where customers pick up orders at a destination, has emerged as a promising alternative to home delivery. Most observers believe both methods will be used; which will dominate remains unknown.

Tesco offers guidance The most instructive experience to date can be found in the United Kingdom, where Tesco PLC, a multinational grocery and general merchandise retailer, has dominated grocery e-commerce. While the United Kingdom differs

Grocery E-Commerce In The U.S.:

Who’s ‘On First’ – Amazon or Peapod?

nalysts following the growing grocery e-commerce market agree that volume plays an important role in the long-term success of e-commerce. The investment in infrastructure, materials handling equipment and human resources make e-commerce a highly capital-intensive proposition. E-commerce profitability relies heavily on economies of scale. The faster an e-commerce retailer can turn inventory, the greater the profitability and the faster the return on investment. Grocery e-commerce observers agree that at present, Amazon.com and Peapod are the leading U.S. contenders. Amazon’s f&b volume is unknown since the company does not break out sales by merchandise type in its financial reports. Amazon has a nationwide infrastructure and delivers dry foods in many if not most markets. Its perishable foods venture, Amazon Fresh, is limited to Seattle, Wash., Los Angeles, Calif., San Francisco, Calif. and New York City. Amazon has the advantage of offering customers food in addition to non-food. According to its annual report, Amazon Prime Fresh members pay $299 a year and receive same-day and early-morning delivery not only on fresh grocery items but also on over 500,000 other items ranging from toys to electronics to household goods. Peapod, a dedicated grocer, partners with existing supermarkets and therefore has access to an extensive infrastructure that can support grocery e-commerce. Peapod also delivers to pickup locations, which allows it to offer more options to customers and a larger volume of business against which to leverage its assets. Another difference: Amazon outsources most deliveries where Peapod uses its own fleets. Still another question that could prove to be the most important of all is financial resources. Peapod is owned by Dutch retail conglomerate Dutch Ahold NV, which in August reported second-quarter earnings that missed estimates. Amazon recently reported a $544 million operating loss in the third quarter, compared with an operating loss of $25 million in third quarter 2013. What’s uncertain is how patient the investment community will be as Amazon continues to invest in its infrastructure. Phil Terry, a supply chain consultant who has worked with e-commerce, says Amazon will need to extend its infrastructure to support the delivery of perishable food. Whether or not they will be able to accomplish this will depend on how patient the investors are. “If Wall Street demands faster profit, they won’t be able to do it,” Terry says. Investor patience has been pressed with the Chinese e-commerce giant Alibaba Group’s recent public offering and plans to expand into the U.S., Terry adds. Alibaba’s success in a market with less established infrastructure can lead investors to wonder if Amazon is a good investment, he says.

• FOOD LOGISTICS

www.foodlogistics.com

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F&B E-commerce Formats At A Glance A recent Food Institute report identifies the following types of f&b e-commerce formats. • Retail stores with an online store. These offer home delivery and pickup. Orders are fulfilled from store shelves and/or e-commerce distribution centers. Examples include TheFreshMarket.com, Target.com, Meijer.com and Plummarket.com. • Dedicated e-tailers that stock inventory. There is no physical storefront, but the company maintains its own warehouse. Examples

include Amazon, Quidsi Vine.com, Vitacost and MyNaturalMarket.com. • Virtual e-tailers. These have no physical storefront or warehouse. They drop ship from distributors like UNFI or manufacturers. • E-tailers that provide their own delivery. Examples include FreshDirect, Amazon Fresh, Relay Foods, Peapod and Door to Door Organics. • Virtual home delivery: Examples: Instacart, Google Shopping Express and Uber.

from the U.S. in some ways--such as a more concentrated population--Tesco’s experience offers insight into the factors that grocery marketers must consider in utilizing e-commerce to increase sales. Within the U.K., Tesco offers customers the ability to “click and collect” (the customer places an order online and picks up the order at a local Tesco store drive-through), according to published reports. Tesco also offers a home delivery service in certain parts of the country where the company can provide a home delivery based on a customer’s preferred one-hour time slot. When Tesco began its e-commerce offering in the late 1990s, it followed a model currently used by several U.S. supermarkets, according to Marc Wulfraat, owner of MWPVL, a supply chain consulting firm. Tesco associates traveled through the store aisles with trolleys to pick and pack the orders. The orders were placed in vans out of the back room of the store where routes were planned with as many deliveries as possible. This model proved inefficient, Wulfraat says. It was labor-intensive, not all stores had all products offered on the Web site, and having associates pick products in the store interfered with regular in-store shoppers to the extent that store sales declined. In 2006, Tesco began using dedicated e-commerce depots, Wulfraat says. Associates picked orders across dry, chilled and frozen temperature zones. Tesco drivers performed the deliveries using a private fleet of vans. As Tesco expanded its dedicated e-commerce depots, it increased warehouse efficiency by introducing mechanized conveyors and automated material handling systems such as mini-load ASRS systems and goods-to-person picking systems. The company now operates six dedicated dotcom depots and labor productivity has increased by 82 percent over the original, conventional operation, Wulfraat says. Hence, Tesco has shown that a dedicated e-commerce infrastructure plays an important role in grocery e-commerce, even for a company with a traditional retail infrastructure already in place.

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Amazon changes course Amazon, a dedicated e-commerce provider, has fine-tuned its logistics infrastructure as it expands in ways that give it more control over outbound deliveries, according to Wulfraat. He notes that beginning in 2013, Amazon introduced sortation centers, which are different from its fulfillment centers. The sortation center aggregates shipments from one or more fulfilment centers for delivery to groupings of zip codes. The U.S. Postal Service and other couriers then deliver the shipments from the sortation center to the consumer. The sortation center allows Amazon to bypass the major parcel couriers such as UPS and FedEx, thereby increasing speed of delivery at a lower overall cost, says Wulfraat. He says there will be 15 sortation centers in the U.S. by the end of 2014. “Looking ahead, we can expect that Amazon will roll out this strategy such that all major fulfillment centers or ‘clusters’ will be supported by a sortation center to better service regional high population markets,” he says.

own fleet of GPSequipped, ambienttemperature vans using a TMS system, says Chad Arnold, CEO. Routes deliver 60 to 120 orders per day, with orders ranging from $30 to $120. There is no additional delivery fee. New York Citybased Farmbox Direct delivers weekly orders of organic produce to subscribers in 14,000 zip codes on the East Coast, says founder and owner Ashley Tyrner. Orders are packaged and sorted manually in one warehouse. Farmbox Direct sends a weekly email advising customers what’s available for the week. Customers choose from one of three order sizes and can customize orders based on Farmbox Direct’s available inventory. Minimum order is $36.95 plus $4.95 for handling and packing.

Retrofit Kits Make Insulation Easy For Refrigerated Delivery Vans

he growing home delivery business has been keeping FG Products Inc., the Rice Lake, Wis.-based manufacturer of bulkheads and other products for the refrigerated transportation industry, busier. The company’s COOL-R Kits can handle ambient to frozen applications. The COOL-R Kit’s internal reinforcements minimize BTU transfer. Logistic track What remains to be seen, however, is how can also be attached for load securement. Matt Amazon will manage fresh, refrigerated and Nelson, vice president, says the COOL-R Kits frozen food. Under its Amazon Fresh program, offer a preferable alternative to using dry ice, Amazon has established dedicated fresh and gel packs, utetic plates or built-in refrigeration. frozen delivery operations in Seattle, Wash., “Today’s cargo vans and refrigeration units California and New York City, and it limits its combined with our Cool-R Kits make a great deliveries to those markets. Unlike the United vehicle under 10,000 pounds with excellent fuel TRANSIT CONNECT INSULATION PACKAGE mileage,” Nelson says. “At FG, we focus on the Kingdom, there is no national e-commerce high roof cargo vans for three reasons: 1) Safety. player in the U.S. for fresh, refrigerated and Most personnel can stand up in them, frozen food, and the DISTRIBUTION SOLUTIONS and get in and out without trouble. main competitors tend to Brand Image requires the finest People, Product and The maneuverability and back-up provide regional services Service. A simple delivery involves all three. Choosing cameras makecanthem feel like a car. 2) the right equipment in metro areas with high therefore be critical. Advertising. Deliver consistent If you are going to deliver, populations. temperatures with The advertise while doing it. Today’s COOL-R Kit from FG Products. To date, home delivThe most thermal efficient Van Insulation Package. billboards. 3) Cargo vans are mobile ery of perishable food Reduce fuel consumption, food safety risks, driver capacity. Insulating a van reduces the is available on a local or turnover and regulation restrictionssize with a slightly, Transit interior and smaller vans regional basis. Connect COOL-R Kit. tend to be more specialized, which APPLICATIONS Louisville, Colo.-based can make vehicle utilization more dif• Hot Shot delivery Door To Door Organics • Home/business delivery • Sales/demonstration vehicle ficult. For example, our portable bulkhead option • Specialty distribution: provides next-day deliveries to customers in 11 Catering, Seafood, Meat, can create a true multi-temp van one day, and a Floral, Produce, Medical states from five DCs where product is manually single-temp van the next.”

The cold food challenge

COOL-R Kits

packed and sorted. The company manages its

• FOOD LOGISTICS

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Fresher solutions. That ’s Ryder. According to the 2013 FORTUNE Datastore, nine of the top ten food and beverage companies use Ryder to streamline their supply chains, unlock efficiencies, and bring more value to the table. Discover how outsourcing with us can improve your fleet management and supply chain performance at ryder.com.

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Ryder and the Ryder logo are registered trademarks of Ryder System, Inc. Copyright © 2014 Ryder System, Inc. Ever better is a trademark of Ryder System, Inc. Copyright 2013 Time Inc. FORTUNE® and the FORTUNE Database names are trademarks of Time Inc. All rights reserved. For requests for commercial publication or use of substantial portions of the FORTUNE Databases, please contact datastore@fortune.com.

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Unlike Door to Door Organics, Farmbox Direct outsources its deliveries to FedEx. Tyrner says she learned which delivery service to use by trial and error. New York City-based Blue Apron encourages customers to try new recipes and delivers ingredients from three fulfillment centers: two in New York City and one in Richmond, Calif. The company outsources its deliveries to several carriers, according to Matt Salzberg, co-founder and CEO. Blue Apron’s $60 weekly subscription translates to a cost of about $10 a meal per person, with customers getting three meals a week for a party of two. Users choose from six recipes, which the company changes each week.

Carrier delivery rates to rise DiscountCoffee.com began its refreshment e-commerce business 16 years ago and uses UPS for its deliveries, says Kirby Newbury, CEO. The major carriers are moving from weight-based billing to dimensional weight billing, a technique which takes into account the

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length, width, and height of a package. Newbury anticipates shipping costs will rise more than 30 percent in 2015. “We don’t have the answer right now how we’re going to absorb this 30 percent increase,” he says. Newbury nevertheless thinks f&b e-commerce has a big future once product marketers figure out the best methods for delivering orders. He says his own company has been able to move product for manufacturers in ways they are not equipped to do themselves. For instance, his company assembles packages in its warehouse that manufacturers would have a hard time doing themselves. Biscomerica Corp., a confection manufacturer in Rialto, Calif., forwards all e-commerce inquiries from its own website to DiscountCoffee.com. 1-800-FLOWERS. com Inc. will do $640 1-800-FLOWERS offers a variety of food and gift baskets delivered overnight via courier services from its distribution centers.

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Ashley Tyrner, founder and CEO of Farmbox Direct, ships certified organic produce to customers weekly on a subscription basis. Tyrner learned which delivery service to use by trial and error. million this year in gourmet food, says company spokesman Joe Pittitto, who pegs the company’s annual food sales growth in the mid- to uppersingle-digit percentage range. Nearly 70 percent of the company’s sales are through e-commerce. Orders are delivered overnight by FedEx, UPS and the U.S. Postal Service from the company’s DCs. Dr Soda, a refreshment services provider to Los Angeles businesses since 1984, fell into home delivery shortly after launching online ordering for its business customers in the late 1990s. Once consumers came across the company’s website, they began placing orders. Dr Soda’s five, multi-temperature-zone trucks deliver to homes that fall within its regular routes; the company uses UPS for all other deliveries.

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One thing the above examples show is that e-commerce has allowed food and beverage marketers to target specific market segments. Farmbox Direct, 1-800-Flowers Inc., DiscountCoffee.com and Dr Soda have all uncovered product specific niches that can be served via e-commerce. Whether or not e-commerce will become a major shopping channel for regular f&b purchases is a different question.

warehouse. Associates shop the store aisles and are able to offer customers the same prices for in-store and online shopping. Orders are packed in a separate area of the store so that hot foods remain hot and cold foods can be refrigerated while they await delivery or customer pick-up. Whichever method – home delivery or clickand-collect – comes out ahead will likely depend on which players are able to establish high volume since “economies of scale” is so critical to e-commerce profitability. Will home delivery rule? UPS is covering both options, having recently Nor is it settled that home delivery will domannounced it is expanding its My Choice proinate grocery e-commerce fulfillment. Industry gram and its Access Point network. observers note that the My Choice members jury is still out whether receive advance delivery For more information: or not U.S. consumers notifications informing are willing to pay for them of the delivery BI INTELLIGENCE, 212-255-5490, businessinsider.com home delivery. Mike timing of each UPS Griswold, research vice package. Consumers BRICK MEETS CLICK, 773-832-1658, brickmeetsclick.com president at Gartner also have the ability to Inc., the researcher, says reroute eligible packDATASSENTIAL, 312-655-0622, datassential.com the focus in the U.S. ages to another address should be on click-andor reschedule deliveries FEDEX, 800-622-1147, fedex.com collect since the U.S. for a future date before FOOD INSTITUTE, 201-791-5570, consumer has not asked a UPS driver makes foodinstitute.com for home delivery. a delivery. ConsumFG PRODUCTS INC., 715-234-2334, Home grocery ers can also activate fgproducts.com delivery took a hit a vacation setting to GARTNER INC., 800-213-4848, gartner.com in the U.S. in 2001 have packages held and MWPVL, 514-482-3572, mwpvl.com when Webvan declared delivered when they SEQUOIA CAPITAL, 650-854-3927, bankruptcy. But much return home. sequoiacap.com has changed since then. Under the UPS UPS, 800-742-5877, ups.com High-speed Internet Access Point network, U.S. POSTAL SERVICE, 800-275-8777, was not reliable or local businesses, priusps.com widely available in marily neighborhood 2001. Consumers were convenience and gronot using mobile Internet for shopping as they cery stores with evening and weekend hours, are today. are designed to be approximately 10 minutes or In addition, e-commerce software has less from the consumer’s delivery address. UPS improved. One cannot ignore the fact that one drivers, when unable to deliver a package at the of Webvan’s investors, Sequoia Capital, has consumer’s residence, will leave a note informinvested in Instacart, a grocery delivery service ing them when they can expect to collect their launched in 2012 that delivers groceries in an package at a nearby UPS Access Point location. hour or less and has opened in major cities from Consumers will go to www.ups.com and use the coast to coast. tracking number on the note to get the address. But the extent to which home delivery will dominate grocery e-commerce is still uncertain. B2B and B2C: can you do both? Not all supermarket chains have welcomed B2B poses another question for f&b e-tailers. delivery services such as Instacart, Uber and The Internet provides the ability to reach both Google Shopping Express. B2C and B2B. Since the advent of e-commerce ShopRite, with more than 250 locations in more than two decades ago, B2C e-commerce New York, New Jersey, Connecticut, Pennsylvaplayers have expanded into B2B, and vice versa. nia, Delaware and Maryland, has found it makes But because differences exist in the economics sense to offer both pickup and home delivery, of warehousing, inventory management, order says Karen Meleta, spokesperson for Wakefern fulfillment and delivery functions for B2C and Food Corp., the retailer-owned cooperative that B2B, f&b producers may have to decide which provides services to ShopRite stores. of these audiences to pursue. E-commerce sales have increased every year Long-term, the prospects for f&b e-commerce since 2002, when the option was added to the are positive. According to one survey, 15 percent company’s website, Shoprite.com. The stores of U.S. adults have purchased general food items have dedicated staff and delivery vehicles for online, but 25 percent of millennials said they handling e-commerce orders, but not a separate would pay a premium for same-day delivery. ◆ www.foodlogistics.com

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FOOD LOGISTICS

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3 P L / R e f r i g e r a t e d

L o g i s t i c s

When Cargo Calls For Special Handling

Managing the logistics and security of high value, temperature-sensitive food and beverage products. BY ELLIOT MARAS

very day, more people see themselves as citizens of a “global village,” thanks to the Internet. And when it comes to food and beverage choices, consumers on every continent exercise their personal preference for their choicest foods and beverages, be it fresh seafood, gourmet chocolate, fresh meat, special cheese, fine wine or craft beer.

Credit the f&b supply chain for creating the most spoiled generation of consumers in history. But as these consumers acquire a taste for their favorite foods and beverages, the supply chain finds itself called upon to ensure that high value cargo can be delivered reliably, safely and timely in a cost-efficient manner. Not a small order. Real-time tracking has become an important tool for f&b shippers delivering products that require strict temperature control. Products that are easily damaged in transit or susceptible to theft can also require special handling, delivery updates and weather monitoring. Special handling and delivery options include packaging assistance, proactive status checks while in transit and weather monitoring.

Globalization brings high value imports The growing globalization of food preferences has boosted imports of many high value products, observes John Gaudet, vice president of business development at Newfield, N.J.-based RLS Logistics, which provides temperaturecontrolled warehousing, LTL and TL services. Such imports include seafoods, specialty meats from Europe, and veal lamb from New Zealand and Australia. “We have seen an increase in

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product value per pound,” Gaudet says. “Many have a value range from $6.00 to over $25.00 per pound.” The Crab Broker, based in Las Vegas, Nev., with a warehouse in Tacoma, Wash., supplies restaurants, retailers, resorts and consumers with Alaska King Crab and Snow Crab via FedEx, full truckloads and LTLs. Proactive monitoring of FedEx shipments from PeriShip, a logistics provider, has been important to The Crab Broker’s ability to ensure the reliability of its FedEx deliveries, according to Lois Barrie, The Crab Broker’s office manager. PeriShip, an exclusive FedEx partner, monitors flights and weather information and provides real-time status updates. FedEx contracts PeriShip and includes the services in FedEx customer invoices. PeriShip tracks real-time weather information, including hourly forecasts for individual zip codes. When weather conditions change, PeriShip’s customer service representatives call customers whose shipments will be impacted. Barrie was grateful for a call she recently received about a cargo plane’s maintenance problems. Not only was she able to alert her customer, but PeriShip arranged to get the cargo sent to a refrigerated facility to preserve the

• FOOD LOGISTICS

product. “They handheld my package,” Barrie says. “FedEx is acknowledging that perishable shipment is important.” BestFiletMignon.com, a Los Angeles-based e-tailer, ships individually-packed, insulated packages of fresh filets overnight via FedEx. Each 4-pack starts at $85.50, shipping included. Delays are rare, says CEO Ed Diaz, and PeriShip calls his customer if they occur. Having a third party make this call for him gives added credibility and insures his customer relationship. “It adds a layer of supervision which we, as a small company, can’t do on our own,” he says. BestFiletMignon.com’s customers do not have to sign up and pay for such notification, Diaz says. “We want to make it easy (for customers) and provide the best service possible,” he says. Diaz remembers an instance in which he noticed an incorrect label zip code on his computer after the package was already sent.

A stainless steel beer keg costs between $120 and $140. Hence, there is a real incentive to manage the asset efficiently so it does not sit idle in the supply chain. 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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The Crab Broker’s fresh crab products require strict temperature control. Cold chain integrity must remain intact even if a shipment is delayed. Keeping customers informed of shipment status at all times is key for The Crab Broker.

PeriShip alerted FedEx and made the correction in time for the scheduled next-day delivery. “Those are the things we alone do not have access to and cannot do,” he says. “The joint efforts and services of these two logistics providers are invaluable to a small company like ours shipping high value, perishable products. They are integral to our success.” PeriShip conducts test shipments with customers in order to determine packaging and shipping factors, including package durability, temperature control, and product presentation, says Jack Wang, the company’s chief information officer. This is important for the e-commerce shippers who are coming on fast in f&b. Wang says many of the small and medium-sized f&b shippers are using innovative product configurations, and the best type of packaging can require trial and error. Effective packing systems are critical to the presentation of the shipper’s product to the customer. “Our team uses our knowledge and resources to help identify more efficient packaging and point the customer in the right direction,” Wang says. “These efforts can save our customers both time and money when it comes to streamlining their supply chain.”

Packaging assistance makes a difference Packaging assistance was critical for New York City-based Farmbox Direct, which delivers weekly orders of organic produce to subscribers in 14,000 zip codes on the U.S. East Coast. Ashley Tyrner, founder and owner, was a newcomer when she launched her business two years ago. Her employees assemble boxes of organic coffee, breads, olive oils, teas and produce. The first carrier she hired to do the deliveries offered no guidance on packaging, and she ended up

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having to halt her service after two months. Fortunately for Tyrner, FedEx reached out to her and offered her guidance about packaging her boxes, advising her about the particular liner, wax paper and dry ice needed for the boxes ranging between $39.95 and $59.95 in retail value, including the shipping. She was able to resume her shipments and grow the business. Ryder Supply Chain Solutions, the Miami, Fla.-based 3PL, offers customers the ability to track shipments in real time through an Internet portal under its premium “white glove service” for time-sensitive deliveries, says Steve Sensing, vice president and general manager of health care, technology and retail. Vehicles equipped with GPS devices support this permium service.

Tamper-proof seals secure cargo Johanson Transportation Service requires carriers of higher value cargo such as wine and seafood to be properly trained, insured, and to seal the vehicle’s doors, says Randy Gabardi, vice president of operations for the Fresno, Calif.-based 3PL. The seals are uniquely numbered, tamper-proof devices that prevent the cargo trailer’s doors from being opened without breaking the seal, which only the recipient is allowed to do. In all situations, the carrier will seek an insur-

For more information: FEDERAL EXPRESS, 800-463-3339, fedex.com FLAGSHIP LOGISTICS, 800-497-2029, flagshiplogistics.com JOHANSON TRANSPORTATION SERVICE, 800-742-2053, johansontrans.com L&M TRANSPORTATION SERVICES INC., 800-632-3030, lmts.com LOAD DELIVERED LOGISTICS, LLC, 877-930-5623, loaddelivered.com NFI INDUSTRIES, 877-634-3777, nfiindustries.com PERISHIP, 866-928-6428, periship.com RLS LOGISTICS, 856-694-2828, rlslogistics.com RYDER SUPPLY CHAIN SOLUTIONS, 888-793-3702, Ryder.com SATELLITE LOGISTICS GROUP, 877-795-7540, slg.com

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3 P L

ance waiver or an additional value rider policy for unusual merchandise or shipments that are valued above that of its own insurance coverage. Keith Warren, president of transportation for Los Angeles-based Flagship Logistics LLC, says this would be the case for many high value products such as ice cream, collectors’ wine or specialty food items. It would not be unusual for 20 pallets to require $10 million worth of coverage, he says. Acting as the transportation broker, Flagship Logistics’ carriers would be responsible for $100,000 worth of coverage and the client would be responsible for losses above that limit. The risk can also be mitigated by splitting up the shipments, making sure the vehicles can be monitored electronically, and having an escort vehicle for additional security if the situation warrants that level of protection, Warren says. Ice cream is a high value product due to the unusual temperature requirements. Warren says he makes sure that the trailer has the necessary equipment to keep the temperature at minus 20 degrees Fahrenheit. He also makes sure the carrier and dock minimize the time that the doors are open for deliveries that involve multiple stops during which doors open and close. Specialty ice cream can require even more measures, Warren says. One reason is that specialty ice cream typically is shipped LTL due to the lower volume of these shipments. Additional measures can include specially-insulated trailers, specific defrost cycles and a specific engine management system that minimize temperature fluctuations inside the trailer. Sometimes market conditions can change a cargo’s value. Depending on the market, the retail value of fresh produce (raspberries, asparagus, cherries, etc.) can exceed the standard $100,000 insurance coverage provided by most carriers, notes Doug Stoiber, vice president of transportation operations at L&M Transportation Services, a Raleigh, N.C.-based 3PL. In such cases, his company requires carriers to provide additional coverage. Fresh fruit can be rejected for excess condensation, bruising (more likely a condition than a handling issue unless there is clear evidence the load was tumbled, not secured properly or shifted during transit), or if the onboard temperature recorders indicate the temperature was out of the acceptable temperature range for too long.

Temperature monitoring grows L&M Transportation Services and other 3PLs are also requiring carriers to have electronic temperature sensors for certain perishable cargo. In the past two years, Dan Simon, vice president at Chicago-based Load Delivered Logistics, LLC, has witnessed 3PLs requiring temperature sensors for high value cargo like fresh shrimp. But the tool has not come without its own www.foodlogistics.com

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• FOOD LOGISTICS

issues. As shippers place temperature sensors on packages, the recorded temperatures don’t always match the carrier’s temperature readings, says Simon, “This is going to be a growing trend,” he says. The likelihood of theft also impacts cargo value. Simon says locations close to ports and airports are tempting for thieves since cargo is harder to trace once it has left the country. To address cargo theft, NFI Industries takes special precautions, says Greg Banks, vice president of intermodal operations. The company makes sure the truck begins the delivery with a full tank of fuel to minimize the number of stops. With telematics and satellite technology, NFI also has the capability to monitor every leg of the delivery in real time.

Craft beer calls for special care Craft beer is one of the faster growing segments in the beer industry requiring special handling, observes Kevin Brady, CEO of Satellite Logistics Group (SLG), based in Houston, Texas, which specializes in beer and beverage supply chain solutions. Where larger brewers’ product traditionally has been distributed nationally, craft brands cater to smaller markets and more local distribution. A shift in consumer preference towards craft brands is leading to greater market share and expansion in geographic regions. “The market response to different craft beer flavors and styles has gotten the attention of larger brewers, who have responded with additional brands and flavors to regain that market share,” Brady says. “That changes the dynamics of the entire supply chain. There is a proliferation of SKUs flooding the supply chain nodes and retail outlets adding complexity to supply chain management.” The distribution of beer and wine has long required special handling. Supply chain management of any alcoholic product distributed in the U.S. is layered in federal regulations, additional taxation and tighter controls, Brady says.

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PeriShip has found the best type of packaging often requires trial and error.

Getting the product to market is only one facet of the beverage supply chain. In addition, brewers sometimes have unsaleable product (caused by recalls, product expiration, or packaging errors) that must be pulled from the market and legally disposed of. They also need a process and network in place to manage their reusable kegs and assets. A stainless steel keg costs between $120 and $140, so there is value in managing those assets efficiently to avoid the assets getting trapped or sitting idle somewhere in the supply chain. This past year, Crown Imports LLC, a Chicago, Ill.-based beer distributor, improved its supply chain. SLG was able to collect Crown Imports’ kegs more frequently and cost effectively, doubling previous keg turns, according to an SLG case study. By monitoring kegs constantly, SLG helped to drive Crown Imports’ keg loss down to approximately 3 percent, well below the industry average of 6 to 8 percent. By changing processes for keg returns during the peak summer season, they were able to turn kegs faster while maintaining service levels. Crown Imports recently worked with SLG to develop proprietary keg scanning software to increase the efficiency of keg management in the company’s brewery in Nava, Mexico. Logistics providers have more technology tools at their disposal to better manage high value and temperature-sensitive f&b shipments, which continue to grow as retailers take advantage of e-commerce to reach more customers in new markets. ◆ www.foodlogistics.com

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S P E C I A L

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The 2014 FL100+ Food Logistics’ annual resource guide showcasing the growing list of software and technology providers whose products and services play key roles in supporting the global food supply chain.

or the eleventh consecutive year, Food Logistics has compiled an impressive list of software and technology providers who are major players in our industry, as well as the supply chain sector at large. These companies’ products and solutions benefit our industry in multiple ways, from helping reduce food waste and extending shelf life, to facilitating safe and sanitary transportation of product while assuring regulatory compliance.

Company: Allen

Lund Company/ ALC Logistics

Web site: www.allenlund.com Year founded: 1976 Number of employees: 390 Number of food customers: 900+ Solution name(s): ALC Logistics TMS Worth noting: While our software is programmed to handle any type of freight, ours is the first TMS solution designed to handle the very complicated world of produce transportation. We tie in with live load and temperature tracking. Company: Arkieva (formerly Supply Chain Consultants) Web site: www.arkieva.com Year founded: 1993 Number of employees: 50+ Number of food customers: 7 Solution name(s): Arkieva Worth noting: We have food processingcentric solutions for managing and scheduling product packaging, product allocation, and inventory optimization. Company: Armada Web site: www.armada.net Year founded: 1890 Number of employees: 338 Number of food customers: 25 Solution name(s): Technology Solutions; Warehouse Solutions; Transportation Solutions; Global Logistics; and Supply Chain Planning Worth noting: Armada combines in-depth experience with proprietary technology to create

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more transparent, efficient, cost-effective supply chains for our clients. From lethargic to agile, from reactive to proactive, Armada is changing how supply chains are managed. Armada technologies gather data and apply context to it— transforming the data into relevant, accessible information. This lets us focus on your specific supply chain opportunities and automate manual components of it. The result is a dynamic supply chain that rapidly adapts its activities to variations in demand and supply, whether they are actual or anticipated. Company: ArrowStream Web site: www.arrowstream.com Year founded: 2000 Number of employees: 74 Number of food customers: N/A Solution name(s): ArrowStream Crossbow, ArrowStream OnDemand Worth noting: Over the past 14 years, we have defined inbound logistics best practices and evolved our technology to help our customers transform their supply chains. Our Softwareas-a-Service platform allows an organization to connect the entire supply chain, from the manufacturer to the actual store in one system. Our flexible, yet dynamic Software-as-a-Service solutions are Crossbow and OnDemand: Crossbow is a patented, strategic, inbound logistics planning and performance management tool. This particular solution is a game changer in the market because it establishes proactive

• FOOD LOGISTICS

decision-making between the purchasing and logistics teams. This has historically been a reactive process in which logistics can only work with the orders as they are given. Crossbow now enables optimization of order patterns and shipment routing simultaneously. By creating a proactive, collaborative relationship between the two entities, we are seeing significant results; including at least a 7 percent freight cost reduction, 2 to 5 percent inventory reduction, 5 percent dock capacity reduction and a 10 percent carbon footprint reduction. OnDemand is a centralized visibility and decision-making tool that drives impactful savings by empowering restaurant chains to uncover and proactively address the biggest opportunities and threats in their supply chain. Our customers are seeing realized savings: 10 percent spend reduction on newly contracted items; 20 percent in landed cost due to improved visibility and tools; up to 30 percent in spend recovery with price verification tools. Company: Avercast, LLC Web site: www.avercast.com Year founded: 2008 Number of employees: 63 Number of food customers: 25+ Solution name(s): Avercast Business Forecasting, Avercast Supply Planning, Avercast Retail Analysis, Avercast Sales Forecasting, Avercast Rough-cut Capacity Planning, Avercast Supplier Connection Worth noting: Avercast provides forecasting and demand planning technologies to name www.foodlogistics.com

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brand companies all over the world. With customer support centers in every major time zone, Avercast customers receive the help they need, where and when they need it. At Avercast, it’s not just about the world leading forecasting and demand planning technology, it’s about building enduring business partnerships for decades to come. Company: Blue Ridge Web site: www.blueridgeinventory.com Year founded: 2007 Number of employees: N/A Number of food customers: 23 Solution name(s): Blue Ridge Supply Chain Planning Cloud Worth noting: Blue Ridge technology is changing the way supply chains connect with consumers by focusing on what drives consumers to buy, rather than a mere estimation of sales. By uniquely analyzing every customer transaction, Blue Ridge powers a deeper understanding of demand, and in turn the most precise inventory alignment across the supply chain. Our Cloud platform is the cornerstone of delivering low total cost of ownership, rapid deployment, the nearly limitless scalability required to process consumer data, and a flexible, centralized platform for agile innovation. Because Blue Ridge technology is unified as a single instance of code, supply chain planning functions are inherently harmonized. Customers achieve unparalleled efficiency from leveraging a single well of “demand truth” across supply chain planning processes.

Internet and other business applications. PowerVue offers a highly-configurable driver workflow that eliminates activities that are not part of the drivers’ tasks and matches specific driver terms and exact activities. Company: CAMS Software Web site: www.camspro.com Year founded: 1998 Number of employees: 20 Number of food customers: N/A (All customers are grocery retailers or wholesalers) Solution name(s): CAMS Prospero, CAMS Profiler, CAMS Professional, Backhaul Optimizer, Salvage Optimization, Tour Builder,

Multi-Site Director Worth noting: CAMS Software is the leading supplier of dispatch and driver payroll software to the grocery industry; every day, across the country, more grocery trucks are dispatched using CAMS software than any other product. CAMS was designed and developed exclusively for the grocery industry and is not used outside of grocery. Since 1998, CAMS Software has been implementing our products at distribution centers across the U.S. and CAMS has a 100 percent success rate for deployments.

Company: Cadec, Inc. Web site: www.cadec.com Year founded: 1976 Number of employees: 80 Number of food customers: 74 Solution name(s): PowerVue Worth noting: With over 38 years’ experience, Cadec is the only fleet management systems provider solely focused on private fleets. In addition, Cadec, working on a project with FritoLay, was the first fleet management system to offer electronic driver logs (eLogs) that included DOT-compliant Hours of Service (HOS) with FMSCA approval. The PowerVue product assists food distribution companies by consolidating data across the supply chain with direct integration of fleet data into food distribution business systems such as ERP, warehouse, inventory, invoicing/billing, time/ payroll and many more. It helps food distribution fleets lower costs and increase efficiency by consolidating technology in the cab through its on-board computer acting as a smart hub to the www.foodlogistics.com

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Aut om ate dM Bar ate co d rial eS Han yst Cus dlin em tom s gS er R olu tion ela Dat s tion aS ync shi p h r M Dem oni a n zat age and ion me Ma nt Ent nag erp e me rise n t R es Fre our igh ce t Pa Pla y me Glo nni n bal ng t Tra de In v Ma en t nag or y em Con en t Lo a trol dP lan n i ng Mo bile Tec hno R ad log io F y req uen Rou cy ting Ide and ntif Sup ica Sch tion ply e dul Cha ing in M Sys te m ana s In gem te g Tra ent rati nsp on orta t ion Wa reh Ma ous nag eM em Wir en t ana ele g em ss T e ech n Yar t nol dM og y ana g em Oth en t er

1 4SIGHT Supply Chain Group (www.go4sight.com)

• Supply Chain Systems Implementation, Consulting and Engineering 2 Acsis Inc. (www.acsisinc.com) 3 AFS Technologies, Inc. (afsi.com) 4 Airclic (www.airclic.com) 5 Allen Lund Company/ALC Logistics (www.allenlund.com) 6 Arkieva (formerly Supply Chain Consultants) (www.arkieva.com) 7 Armada (www.armada.net) 8 ArrowStream (www.arrowstream.com) 9 Avercast, LLC (www.avercast.com) 10 Barcoding, Inc. (www.barcoding.com) 11 Blue Link Associates Limited (www.bluelinkerp.com) 12 Blue Ridge (www.blueridgeinventory.com)

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Cloud demand forecasting, planning, inventory replenishment, optimization and supply chain analytics

13 C3 Solutions (www.c3solutions.com) 14 Cadec, Inc. (www.cadec.com) 15 CAMS Software (www.camspro.com) 16 Cardinal Logistics Management, Inc. • (www.cardlog.com) 17 CaseStack (www.casestack.com) 18 Cass Information Systems, Inc. (www.cassinfo.com) 19 Chainalytics (www.chainalytics.com)

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Supply Chain Intelligence, Analytics, Consulting 20 CHEP Pallecon Solutions (www.cheppallecon.com) 21 Corcentric (www.corcentric.com) 22 Coyote Logistics (www.coyote.com) 23 Crown Equipment Corporation (www.crown.com) 24 Datex Corporation (www.datexcorp.com) 25 Demand Solutions (www.demandsolutions.com)

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26 Dematic Corporation (www.dematic.com) 27 Derive Efficiency (www.deriveefficiency.com)

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28 DiCentral (www.dicentral.com) 29 Elemica (www.elemica.com) 30 enVista (envistacorp.com) 31 ExtenData (www.extendata.com) 32 EXTOL International (www.extol.com) 33 Fleet Advantage (www.fleetadvantage.net)

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Forklift fleet and operator management

Sales & Operations Planning/Integrated Business Planning

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Proof of Delivery; Direct Store Delivery

SaaS to monitor expenses/fuel economy in fleet; intel on when to buy new truck(s) according to fuel economy improvements

Company: CaseStack Web site: www.casestack.com Year founded: 1999 Number of employees: 200 Number of food customers: 2,000+ Solution name(s): CaseStack Warehouse Account Management System Worth noting: CaseStack monitors industry changes and adapts our technology to stay ahead and prevent problems before they arise. CaseStack employs a three-server hierarchical test environment. Experts design new solutions on the R&D server, migrate to another for testing and only move new designs into our customers’ live environment when they are production ready. Each of our customers is assigned a triad of full-time staff who ensure that data is integrated cleanly and each customer is fully trained

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on the system. A dedicated client development manager, warehouse account manager and IT representative provide complete administrative, technical and shipping support. Company: Cass Information Systems Web site: www.cassinfo.com Year founded: 1906 Number of employees: 1,033 Number of food customers: 25 Solution name(s): Cass Information Systems (for transportation, utility, telecom, waste, and banking sectors) Worth noting: Cass’ large base of food and beverage customers provides us with the industry knowledge and expertise to be of benefit to this market. Cass transportation expense management services assists in: Reducing expenses

• FOOD LOGISTICS

through an outsourced freight rating, audit, payment and business intelligence solution; Achieving processing efficiency through process automation such as increased use of EDI, online reporting, document and payment visibility, etc.; Obtaining operational enhancements through tactical performance improvements and use of metrics; and Decision support to aid in strategic planning and execution. Company: Corcentric Web site: www.corcentric.com Year founded: 1998 Number of employees: 86 Number of food customers: 140 Solution name(s): Corcentric Worth noting: Corcentric is a leading provider of financial process automation solutions. www.foodlogistics.com

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knapp.com

E-Grocer

Efficient picking solutions for e-commerce food distribution

KNAPP has ideal solutions specially designed for food distribution ordered online, covering typical challenges of this market segment, such as minimal order throughput times, flexibility and fast, ergonomic picking of small quantities in sequence at dedicated Pick-it-Easy work stations. KNAPP E-Grocer solutions based on OSR Shuttle technology increase productivity as proven by leading companies in this fast growing market. Contact us to learn how KNAPP can increase your profit and provide a competitive advantage for your company in the online food retail business.

KNAPP Logistics Automation, Inc. | 2124 Barrett Park Drive, Suite 100 | Kennesaw, GA 30144 +1 678 388 2880 | sales.us@knapp.com | knapp.com/us

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S P E C I A L

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Our solutions make B2B commerce faster, simpler and more transparent. We help customers automate and manage complex transactions that streamline both order-to-cash and procure-topay processes. Corcentric solutions incorporate: Deep knowledge of how the accounts payable process actually works; Supplier portal and e-invoicing through the Corcentric supplier network; Best-in-class invoice imaging and OCR data capture; Workflow technology configured using your business rules; Automated invoice matching using straight through processing technology; and the Ability to connect with 100 percent of a customer’s supply base. Company: Crown Equipment Corporation Web site: www.crown.com Year founded: 1945 Number of employees: 10,700 Number of food customers: Thirty percent of Crown’s global Crown Insite Productivity Suite customers come from the food/bev industry Solution name(s): Crown Insite Productivity Suite Worth noting: It’s not uncommon to find technology from third-party suppliers in warehouses and distribution centers. It is uncommon to find an experienced material handling solutions provider equipped with its own comprehensive technology platform. Through Crown Equipment’s decades of material han-

dling experience, the company offers its customers technology that is supported with the relevant expertise, deep resources and an established distribution channel that end users require for a long-term solution. Software upgrades are provided at no additional charge. Updates, which are the culmination of customer suggestions and improvements, are done in-house and made about every six months. The technology is durable and a functional fit for material handling environments. Company: Demand Solutions Web site: www.demandsolutions.com Year founded: 1985 Number of employees: 250 Number of food customers: 59 Solution name(s): DS Forecast Management, DS Requirements Planning, DS Sales & Operations Planning, DS Retail Planning, DS Supply

Chain Collaboration, DS Advanced Planning & Scheduling, DSX Forecast Management, DSX Requirements Planning, DSX Sales & Operations Planning and DSX Collaboration Worth noting: Demand Solutions has helped address our customers’ most challenging supply chain planning issues for almost 30 years. During this time, we have worked with over 3,000 customers and have assisted our customers in over 77 countries. This level of experience is unusual and shows the value of our solutions and the ongoing commitment that Demand Solutions has made to support the planning needs of the food/bev industry. It has required continuous improvement and innovation in both the value and functional capabilities of our software as well as the underlying technology infrastructure. Stability, longevity, and innovation are three hallmarks of Demand Solutions. Company: Dematic Corporation Web site: www.dematic.com Year founded: 1939 Number of employees: 4,700+ Number of food customers: 55+ Solution name(s): Deep Lane Pallet Storage Solution and Dematic Multishuttle Staging/Sorting/Sequence/ Buffer Worth noting: Dematic

Corcentric makes B2B commerce faster, simpler and more transparent. We help companies automate and manage complex transactions that streamline both order-to-cash and purchase-to-pay processes. For more information call (888) 525-7677 or visit corcentric.com.

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• FOOD LOGISTICS

www.foodlogistics.com

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has the largest customer service department in North America and can support companies on many levels from “800” phone support to resident site maintenance. Company: Derive Efficiency Web site: www.deriveefficiency.com Year founded: 2014 (founded after the merger of SCT and Bully Dog) Number of employees: 130 Number of food customers: 13 Solution name(s): Derive Efficiency Worth noting: Derive Efficiency is the only truly active fleet control solution. Most other solutions are passive in nature (i.e, telematics)—identifying issues with specific drivers/ vehicles (i.e., speeding, excessive idling) and providing behavior modification recommendations for the driver. At Derive, we resolve the key issues in proactive manner—by transferring the responsibility from the driver to the vehicle. The result is a massive savings—in time and frustration—for the fleet manager, who would otherwise have to constantly dig through and monitor data, and then spend time and effort disciplining drivers...and for drivers who have to constantly worry about being beeped/buzzed by alerts and admonished by their bosses rather than focusing on the other jobs they are tasked with performing. www.foodlogistics.com

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Company: ExtenData Web site: www.extendata.com Year founded: 2002 Number of employees: 25 Number of food customers: 36 Solution name(s): MobileConductor is ExtenData’s proof of delivery, direct store delivery, and single device in the cab solution for foodservice and food distributor organizations Worth noting: MobileConductor had been recognized by the FL100 for three years running and was recognized in 2013 by the International Dairy Foods Association for Innovation in Food Safety. This year we are proud to submit the newest version of MobileConductor, which can now act as the single in-cab interface for drivers. Further improving the efficiency of drivers and reducing in-cab costs, MobileConductor™ is a cohesive and easy-to-use mobile app that supports several critical in-cab functions. Imagine one device for a driver that provides proof of delivery, driver logs, daily vehicle inspection reports, integrated vehicle telematics, route scheduling, turn-by-turn navigation, and messaging—this new capability for MobileConductor means decreased hardware and data plan costs and simplification of DOT regulatory compliance for delivery and distribution companies.

Company: EXTOL International Web site: www.extol.com Year founded: 1989 Number of employees: 95 Number of food customers: 124 Solution name(s): EXTOL Business Integrator, EXTOL Data Synchronizer, EXTOL EDI Integrator for i (EEI), EXTOL VAN, EXTOL Secure Exchange Worth noting: EXTOL International is celebrating its 25th year in business, a significant milestone for software companies. Additionally, EXTOL is celebrating its remarkable Net Promoter Score (70.1) that it earned this year. Net Promoter Score is a customer loyalty measurement based on a survey of its customers. According to a study published in 2013, the highest Net Promoter Score for top North American B2B software companies was 47, which is 23 points lower than EXTOL’s score. EXTOL also touts a 96 percent customer retention rate and prides itself on unrivaled customer support. Company: Fortna Inc. Web site: www.fortna.com Year founded: 1958 Number of employees: 300+ Number of food customers: 25 Solution name(s): N/A Worth noting: At Fortna our primary business principle is that our “Clients’ interests

FOOD LOGISTICS

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34 Fortna Inc. (www.fortna.com) 35 Galleria RTS (www.galleria-rts.com) 36 GE Transportation

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37 GENCO (www.genco.com) 38 GreenMile (www.greenmile.com) 39 Groom Energy Solutions (www.groomenergy.com) 40 HighJump Software (www.highjump.com) 41 Honeywell-Vocollect (Honeywell Scanning & Mobility/Vocollect

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42 I.D. Systems, Inc. (www.id-systems.com) 43 icix (www.icix.com) 44 InfinityQS International, Inc. (www.infinityqs.com) 45 Infor (www.infor.com) 46 INFRATAB, INC. (www.infratab.com) 47 Inmar (www.inmar.com) 48 INSIGHT, Inc. (www.insightoutsmart.com) 49 Instructional Technologies (www.instructiontech.net) 50 Intelligrated (www.intelligrated.com)

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51 Interlink Technologies (www.thinkinterlink.com) 52 John Galt Solutions (www.johngalt.com) 53 Junction Solutions (www.junctionsolutions.com) 54 KNAPP Logistics Automation, Inc. (www.knapp.com) 55 KTL Solutions, Inc. (www.ktlsolutions.com) 56 LeanLogistics (www.leanlogistics.com) 57 Llamasoft, Inc. (www.llamasoft.com) 58 Logility (www.logility.com) 59 Logistix Solutions (www.logistixsolutions.com) 60 Lucas Systems (www.lucasware.com) 61 MADE4NET (www.made4net.us) 62 Manhattan Associates (www.manh.com) 63 MAVES International Software (www.maves.com) 64 MercuryGate (www.mercurygate.com) 65 Merit-Trax Technologies, Inc. (www.merit-trax.com)

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66 METTLER TOLEDO (www.mt.com)

voice solutions)

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Risk management, compliance management Manufacturing Intelligence Hub

Shelf-life Management Quality Control

Supply Chain Network Design Safety and Operations Training

Warehouse Control Systems, Labor Management Systems, Business Intelligence,Voice and Light-picking solutions

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come first,” ensuring that we provide the best possible solutions for their challenges and earning our clients’ trust and long-term partnership. Company: GreenMile Web site: www.greenmile.com Year founded: 2004 Number of employees: 91 Number of food customers: 200+ Solution name(s): GreenMile Live, GreenMile Route, GreenMile Driver, GreenMile Manager, GreenMile Sales, GreenMile Merchandiser, PROER Consulting Services Worth noting: GreenMile was formed by a group of ex-Roadnet Technologies executives with more than 70 years’ combined experience

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working with the food/beverage market. Our cloud-based technology was created specifically to fill the gaps that exist within this vertical regarding lastmile transportation and fleet performance software. Company: INFRATAB, Inc. Web site: www.infratab.com Year founded: 2002 Number of employees: 19 Number of food customers: 6 Solution name(s): Freshtime Worth noting: At the core of Infratab’s game-changing solution is Freshtime Points— metrics for quantifying the remaining life of a perishable. It is powered by sophisticated analytics developed in partnership with our Chief Scientist, Dr. Theodore Labuza of the University of Minnesota, the foremost

• FOOD LOGISTICS

Weighing

industry authority on time-temperature integrators and shelf life prediction for foods and pharmaceuticals. Because Freshtime Points can be trusted, it is poised to become a universal standard for freshness Company: K NAPP

Logistics Automation, Inc. (daughter-company of

KNAPP AG, Austria) Web site: www.knapp.com Year founded: 1952 Number of employees: 2,450 Number of food customers: 58+ Solution name(s): KiSoft WMS, KiSoft AUTOMOTIVE, KiSoft RMS (Reusables Management), KiSoft Pick-it-Easy, KiSoft Beverage Solutions, OSR Shuttle, KiSoft Open Shuttle, KiSoft FAST (Fully Automated Standard Tray), Flexible Case Picking, KiSoft E-Grocer Worth noting: KNAPP suggests automation in a sensitive way, only where it makes sense, in order www.foodlogistics.com

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One Device in the Cab MobileConductorâ&#x201E;˘ provides food distributors a one device in the cab solution. Utilizing best of breed Android devices and a single platform solution, MobileConductorâ&#x201E;˘, aggregates all of the necessary in-cab driver applications into one easy to use interface.

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67 Minotaur Software Ltd. (www.minotaursoftware.com)

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MM4 (MarketMaker4) (www.marketmaker4.com) NCR Corporation (www.ncr.com) NECS, Inc. (www.necs.com) NeoGrid (www.neogrid.com)

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NetSuite (www.netsuite.com) Netwin Solutions (www.gtkonnect.com) Network Global Logistics (www.nglog.com) Next Generation Logistics, Inc. (www.nextgeneration.com) NiceLabel (www.nicelabel.com) Nulogy (www.nulogy.com)

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78 OmniVue (www.skull-software.com) 79 Onset Computer Corporation (www.onsetcomp.com)

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80 Optricity Corporation (www.optricity.com) 81 Outperform (www.outperformplanning.com) 82 PakSense (www.paksense.com) 83 Paragon Software Systems (www.paragonrouting.com) 84 Park City Group (www.parkcitygroup.com) 85 PeopleNet (www.peoplenetonline.com) 86 PINC Solutions (www.pincsolutions.com) 87 Plug Power Inc. (www.plugpower.com) 88 Power Automation Systems (www.powerautomationsystems.com) 89 ProCat Distribution Technologies, Inc.

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Cold Chain Management Solutions

Data Analysis

Hydrogen Fuel Cell Power System

Order Picking Solutions

(www.procatdt.com) Warehouse Technologies

90 PSI Technics Ltd. (Positioning Solutions Int’l) • • Sensor Protection for sub-zero/freezer (www.psi-technics.com/E) environments 91 RedLine Solutions (www.redlineforproduce.com) • • • • • • • 92 Retrotech, Inc. (www.retrotech.com) • • • • • • 93 Reverse Solutions, LLC • • • • • • • • (www.reversesolutions.com; www.reverserecycling.com) 94 Riversand Technologies (www.riversand.com) • • Master Data Management 95 Roadnet Technologies (www.roadnet.com) • • • • • • 96 Ryder System, Inc. (www.ryder.com) • • • • • • • • • • • • • • • • 97 SafetyChain Software (www.safetychain.com) • • 98 Safeway Management Group, Inc. • • • • • • • • Quality Control Management,

(www.smgsafety.com) Trending Analysis

99 SAP America (www.sap.com)

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to stay flexible and prepared for further change and growth. Therefore, a broad range of solutions is available and is offered tailor-made to the clients. Company: Llamasoft, Inc. Web site: www.llamasoft.com Year founded: 1998 Number of employees: 200 Number of food customers: 43 Solution name(s): Supply Chain Guru, Transportation Guru, K2 Enterprise, Data Guru Worth noting: LLamasoft was the first company to combine enterprise level simulation with full-feature network and inventory optimization within a single modeling application. We have a rapidly growing international presence with offices in countries throughout the world, including Japan, China, United Kingdom,

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France, Germany, South Africa, Brazil, Colombia and Mexico and customers in many more. Company: Logility Web site: www.logility.com Year founded: 1996 Number of employees: 180 Number of food customers: 175 Solution name(s): Logility Voyager Solutions Worth noting: Logility Voyager Solutions is a suite of collaborative, best-of-breed supply chain solutions that help small, medium, large and Fortune 1000 companies realize substantial bottom-line results in record time. It gives you proven, best-of-breed capabilities to streamline your global supply chain operations. From planning and forecasting…to sourcing and production…through warehousing and transportation

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management…you’ll have the tools, flexibility and supply chain visibility you need to achieve a competitive advantage. Company: MercuryGate Web site: www.mercurygate.com Year founded: 2000 Number of employees: 147 Number of food customers: We are a Transportation Management Software (TMS) solution, and sell to shippers, 3PLs, LSPs, brokers and freight forwarders that have both domestic and international transportation. Currently, we have over a dozen direct food/bev accounts, but through our transportation-related customers we connect with over tens of thousands of food/ bev accounts. Solution name(s): MercuryGate TMS www.foodlogistics.com

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State-of-the-Art Success Fully Automated case picking to mixed order pallets was long thought to be impossible. WITRON forever changed this perception when it developed the Case Order Machine (COM). Success Story • More than 570 COM’s operational in 36 projects throughout the World • Proven reliability and return on investment with evidence of 80% of new projects generated from existing clients • Successful implementation in Ambient, Perishable and Frozen environments • Over 3 billion cases picked with COM since implementation. Over 5 million cases picked with COM per day Advantages • Automatically pick & palletize more than 15,000 unique SKUs in one operation • Complete elimination of product pickfront • New warehouse footprint reduction of up to 50% • Transportation cost reduction of 10% • Store aisle aligned pallet loads reduce shelf stocking time by 75%

Be innovative • Be committed • Be successful

Gener al c ont r ac t or f or t he design, r e aliz at ion, and t he op er at ion o f c os t- e f f ic ient logis t ic s and pic k ing systems f or trade and industr y. Design, IT, control engineering, mechanics, and ser vice – all from one hand. 3721 Ventura Drive · USA-Arlington Heights IL 60004 · Phone: +1 847 385 6000 · email: info@witron.com · www.witron.com

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100 Seagull Scientific (www.seagullscientific.com) 101 ShipXpress Inc. (www.shipxpress.com) 102 Silvon Software (www.silvon.com) 103 SmartDrive Systems (www.smartdrive.net)

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• • Business Intelligence • Video-based safety program with

integration to Active Safety Systems

104 Sparta Systems, Inc. (www.spartasystems.com)

• Quality Management, Supplier Quality Management 105 SPS Commerce (www.spscommerce.com) 106 Supply Chain Optimizers (www.supplychainoptimizers.com) 107 Supply Chain Services (www.supplychainservices.com) 108 Symphony EYC (www.eyc.com) 109 SYSPRO (www.syspro.com) 110 Technology Group International, Ltd. (www.tgiltd.com) 111 Telogis (www.telogis.com) 112 Teradata (www.teradata.com) 113 Terra Technology (www.terratechnology.com) 114 Testo (www.testo.com) 115 The Raymond Corporation (www.raymondcorp.com) 116 TMW Systems, Inc. (www.tmwsystems.com) 117 topVOX Corporation (www.top-vox.com) 118 TraceGains, Inc. (www.tracegains.com) 119 Transplace (www.transplace.com) 120 Transportation | Warehouse Optimization

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121 Transportation Insight (www.transportationinsight.com) 122 Tyco Integrated Security

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123 TZA (www.tza.com) 124 Viastore Systems (www.viastore.com) 125 Virtual Logistics Inc. (www.virtuallogistics.ca) 126 Vormittag Associates, Inc. (VAI) (www.vai.net) 127 W&H Systems (www.whsystems.com)

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Packaging Optimization

e-Commerce, EDI, Business Intelligence

Data analysis Transportation Forecasting

Load optimization, purchase order (www.warehouseoptimization.com) optimization, case-picking and truck loa ing optimization, and ship point optimization

(www.tycois.com/insights-and-opinions/articles/food-defense-initiative)

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Security Solutions Workforce Management

Data Integration

Warehouse Control System, Conveyors,

Sortation Units, AS/RS

128 Werner Enterprises/Werner Global Logistics (www.werner.com) 129 West Monroe Partners (www.westmonroepartners.com) 130 Westfalia Technologies, Inc. (www.westfaliausa.com) 131 Wolters Kluwer Transport Services (www.wktransportservices.com; www.transwide.com) 132 WITRON Integrated Logistics (www.witron.com) 133 Yale Materials Handling Corporation (www.yale.com)

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Worth noting: Not all organizations are “optimizing” their TMS investments. In fact, just one in four companies fully leverage the features and functions of its system. By ignoring a TMS’ status as a platform for innovation and continuous improvement, the other 75 percent of companies miss out on key benefits and cost savings. Those that do leverage their TMS’ rich capabilities also gain access to real-time decision-making—the Holy Grail for compaies in today’s competitive business environment. With MercuryGate’s configurable architecture and workflow engine, MercuryGate clients are able to manage parcel,

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LTL, intermodal, and truckload shipments as well as complex multi-leg, ocean, air, and rail movements. Company: Plug Power Inc. Web site: www.plugpower.com Year founded: 1997 Number of employees: 150 Number of food customers: 21 Solution name(s): GenKey, GenDrive, GenFuel, GenCare Worth noting: With GenKey, adopting hydrogen fuel cell power has been made simple by Plug Power. GenKey takes the complexity out of the equation for customers by delivering a complete range of turnkey services to streamline the entire process. Plug Power provides full integration and deployment of the entire

• FOOD LOGISTICS

GenKey solution package for customers like Walmart, P&G, Sysco and Kroger to ensure a seamless transition to hydrogen-fuel, cell-based power for material handling operations. The GenKey package was founded on customer trust and Plug Power’s proven performance. Plug Power acts as a single-source vendor, handling the power, fueling, service integration and deployment, so customers can focus on their core competency and business objectives. As part of the GenKey solution, the lease payments are rolled into one monthly sum that also includes fuel and maintenance. Plug Power has deployed 11 GenKey sites in North America in 2014. In total, there are over 5,000 GenDrive fuel cell units powering lift trucks in North American operations. These units have accumulated over 20M hours of run time. www.foodlogistics.com

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Company: Power Automation Systems Web site: www.powerautomationsystems.com Year founded: 2000 Number of employees: 50-100 Number of food customers: 20 Solution name(s): PowerStor, PAS Voyager, PowerStor4000, PowerStage Worth noting: PowerStor is the only fullyautomated warehouse solution on the market today. It has been proven to significantly increase storage capacity, provide absolute inventory control, reduce product damage and waste, and provide significant cost savings and energy output. Company: ProCat

Distribution Technologies, Inc.

Web site: www.procatdt.com Year founded: 2001 Number of employees: 20 Number of food customers: 100 Solution name(s): PickRight by ProCat— hands-free order picking/loading solution for warehouse distribution incorporating visual touchscreen display and ring scanner for virtually 100 percent order accuracy. Worth noting: PickRight by ProCat is an affordable, hands-free order picking/loading system providing virtually 100 percent order accuracy that is easy to install, easy to learn and does not require a warehouse

management system. If you can print a pick ticket, you’re ready for PickRight. In addition, PickRight is ready to help manage the ever-growing needs and customer customization required in today’s complex market place. Company: Retrotech, Inc. Web site: www.retrotech.com Year founded: 1985 Number of employees: 120 Number of food customers: Approximately 32 percent of current client sites are food/bev Solution name(s): Retrotech WCS Worth noting: Modernizing and enhancing the capability or repurposing existing automated equipment is a key opportunity for the food/ bev industry. The industry’s need to change the performance and capability of its existing automation and our retrofitting and modernizing software programs are outstanding investments in lieu of asset replacement. Company: Ryder System, Inc. Web site: www.ryder.com Year founded: 1933 Number of employees: 28,900 Number of food customers: 4,000 active customers across Ryder Solution name(s): N/A Worth noting: A competitive differentiator of Ryder’s is the linkage it creates by combining lean operating principles to the data available in warehouse management system (WMS), yard management system (YMS), and transportation management system (TMS), to drive continuous improvement opportunities throughout the supply chain. Company:

The global standard for food supply chain interoperability The world’s food producers, processors and manufacturers use BarTender ® label software, the trusted choice for supply chain management and traceability. We can help with your GFSI, FSMA, PTI, EU allergen and GHS labeling compliance projects. To learn more, visit our website, or give us a call.

www.SeagullScientific.com

Americas +1 800 758 2001

EMEA +34 91 435 25 25

APAC +886 2 3765 2440

Japan +81 3 5847 5780

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• FOOD LOGISTICS

SafetyChain Software Web site: www.safetychain.com Year founded: 2011 Number of employees: 60+ Number of food customers: 65+ Solution name(s): SafetyChain for Food Suite, SafetyChain Supplier Compliance, SafetyChain Food Safety & Quality Data Management, SafetyChain

Audit Management, SafetyChain for HACCP/HARPC, SafetyChain for GFSI, SafetyChain SPC, SafetyChain Mobile Worth noting: SafetyChain’s tremendous growth and adoption in the food industry is due to several key differentiators; SafetyChain is focused on prevention versus reaction. Our solutions are designed to alert non-conformances at the earliest point possible—for timely corrective/preventive actions (CAPA)—before non-compliant products go in to commerce; SafetyChain affects your bottom line with a proven return on investment model; SafetyChain for food is the only cloud-based, end-to-end FSQA suite that includes solutions for every phase of the supply chain—from supplier compliance, to plant safety and quality management, to coldchain/transport FSQA, to onsite monitoring in stores/restaurants and to regulatory/third-party compliance; and SafetyChain goes far beyond document management—we actually automate the management of food safety plans such as HACCP/HARPC, GFSI schemes, SOPs, GMPs, PRPs and the like. Company: S afeway

Management Group, Inc.

Web site: www.smgsafety.com Year founded: 2004 Number of employees: 14 Number of food customers: 46 Solution name(s): Quality Management System, Food Safety/HACCP Plans, Quality Control Module, Quality Training, Transportation Safety Program, Workplace Safety Program, Human Resources Program, File Maintenance, Document Control, Regulatory Compliance Services, Recruitment Process Outsourcing, E-Training Worth noting: We think of our services as “Software Plus.” You’ll receive superior technology with a human factor that only Safeway Management Group offers. Working with us will provide your company with a complete quality and/or safety department for a fraction of the cost. Company: Seagull Scientific Web site: www.seagullscientific.com Year founded: 1985 Number of employees: 120 Number of food customers: 2,000+ Solution name(s): BarTender Worth noting: BarTender’s position as the global standard in labeling and barcoding software offers unparalleled business-to-business interoperability, communication and harmonized data capabilities. Company: Supply Chain Services Web site: www.supplychainservices.com www.foodlogistics.com

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Year founded: 2002 Number of employees: 39 Number of food customers: 140 Solution name(s): Barcode Scanners, Barcode Printers, Rugged Mobile Computers Worth noting: As specialists in the automated identification and data collection (AIDC) industry, we provide knowledgeable sales and IT support with industry and technology expertise. Our methodology is built on understanding business needs and applying appropriate technologies—incorporating barcode readers, barcode scanners, barcode printers, rugged mobile computers, and barcode labels. We are a single source for evaluating, designing, integrating, implementing, managing, and supporting data collection technology infrastructures that generate very high and very fast return on investment for our customers. Our goal is to help our customers operate better. Company: Technology

Group International

Web site: www.tgiltd.com Year founded: 1990 Number of employees: 30+ Number of food customers: 400+ Solution name(s): Enterprise 21 ERP Worth noting: TGI is unique in that Enterprise 21 ERP is developed, sold, implemented, and subsequently supported directly by TGI. We do not sell through resellers, implement through business partners, or outsource our software development and/or technical support services to third-party companies or overseas. This means that food processors and distributors can have a single company partner relationship with TGI for all of their enterprise software needs.

Company: Testo Web site: www.testo.com Year founded: 1957 Number of employees: 2,000 Number of food customers: 5,000 Solution name(s): Testo 184 Series Data Loggers Worth noting: The newly released Testo 184 Series Data Loggers eliminate many of the problems that international shippers contend with: easily pulling data from logger at destination, quickly and accurately configuring multiple loggers, and keeping track of certification documentation, by offering a USB logger with pdf configuration that is easily copied and pasted to multiple loggers and certification documentation that is stored directly on the logger. Company: The Raymond

Corporation Web site: www.raymondcorp.com Year founded: 1922 Number of employees: 1,500+ Number of food customers: N/A Solution name(s): iWAREHOUSE Worth noting: Raymond’s iWAREHOUSE fleet and warehouse optimization system con-

tains two solutions tailored to a business’ needs, iWAREHOUSE Essential and iWAREHOUSE Enterprise. These iWAREHOUSE solutions combine fleet efficiency, warehouse optimization and professional services. iWAREHOUSE Essential provides access control and compliance, and monitors and collects lift truck and operator data in real-time, allowing warehouse managers to increase visibility of assets and labor. iWAREHOUSE Enterprise turns collected asset and labor information into actionable data that helps warehouse managers identify opportunities for fleet and warehouse optimization. The solution integrates with select labor management systems (LMSs) to help increase productivity and reduce operating costs, and can be used by Raymond’s expert consultants to enhance additional optimization decisions. Company: TMW Systems, Inc. Web site: www.tmwsystems.com Year founded: 1983 Number of employees: 550 Number of food customers: 200+ Solution name(s): TMWSuite, Appian DirectRoute, Appian DRTrack and 3GTMS Worth noting: Solutions from TMW Systems enable companies to process both inbound and outbound shipments and optimize product movements for either local distribution or

Company: Terra Technology Web site: www.terratechnology.com Year founded: 2001 Number of employees: 100+ Number of food customers: 9 Solution name(s): Demand Sensing, Multi-Enterprise Demand Sensing, Long-Term Demand Sensing, Multi-Enterprise Inventory Optimization, Transportation Forecasting Worth noting: Terra Technology uses better mathematics to sense demand, optimize inventory and predict transportation and warehousing requirements for some of the world’s best-known companies including Shell, Procter & Gamble, Unilever, Mondelez International, KimberlyClark, AkzoNobel, Kraft Foods, General Mills, ConAgra Foods, Kellogg, Campbell Soup and others. Terra invented demand sensing in 2002 and offered the first solutions to use retailer data systematically to improve supply chain efficiency, enhance service, cut inventory and reduce waste. Terra’s solutions are currently used in more than 160 countries. www.foodlogistics.com

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• NOVEMBER/DECEMBER 2014

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S P E C I A L

R E P O R T :

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Company: Transportation Insight Web site: www.transportationinsight.com Year founded: 1999 Number of employees: 300 Number of food customers: 25 Solution name(s): Bundled enterprise logistics solution provides freight bill payment and audit, transportation management (Insight TMS), busiCompany: topVOX Corporation ness intelligence (Insight Fusion), and carrier Web site: www.top-vox.com sourcing. Transportation Insight also provides Year founded: 1995 Extended LEAN, a lean consulting methodology Number of employees: 110 worldwide that extends LEAN practices outside the four Number of food customers: 200+ walls of a company to its suppliers and customers. Solution name(s): Lydia speech-based soluWorth noting: Insight TMS is Transportions, Voxter hardware suite specializing in voice tation Insight’s Web-based transportation recognition systems management solution that gives clients access Worth noting: The Lydia voice directed to tools that empower them to maximize solution is speaker independent, so employees productivity, save time and improve decision don’t need to create a voice template to use the making by presenting all of the transportation system. That information needed in one place. Insight means workers TMS allows clients to rate shop and select become much carriers across multiple modes, create shipmore producping documents, tender shipments, track tive in less time shipments to their destination and more. since absolutely Eliminating the need for significant capital no training investment on customers’ parts, Insight is required to TMS is hosted, flexible and scalable, easily obtain excellent adapting as businesses grow or technology recognition. needs change. Because Insight TMS will help clients reduce effort spent on time-consuming and repetitive tasks, customers will be able to spend more time focusing on managing and growing their business. Increase visibility and Insight Fusion is control over operations our ground-breaking Big Data solution Real-time Actual vs. Average Decrease and interactive busiPlan information in Miles Driven ness intelligence engine. Transportation analytics throughout the supply chain. Web-based or on-premise dispatching and reporting tools provide time-critical information to customers, management staff, service personnel and drivers. Cost-tracking and fleet-tracking features expand visibility and support better operational decision-making.

DON’T TRACK VEHICLES, TRACK PERFORMANCE

11%

and dashboards Cloud based applications and mobility platform

Average Increase in Stops per Route

Request a demo at sales@greenmile.com WWW. G R E E N MILE . C O M | 8 5 5 - 5 0 4 - 4 11 8

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• FOOD LOGISTICS

Company:

Tyco Integrated Security Web site: www. tycois.com/insightsand-opinions/articles/food-defenseinitiative Year founded: 1874 Number of employees: 10,000 Number of food customers: Hundreds Solution name(s): Food Defense Assessment, Access Control,

Intrusion Detection, Alarm Monitoring Services, Video Surveillance, Loss Prevention, Fire and Life Safety Worth noting: The focus of FSMA is on preventing food contamination, not reacting to an event after it has occurred. Tyco Integrated Security can help companies protect their brand as well as comply with the forthcoming intentional adulteration rule of FSMA by implementing a proactive food defense program to assess the key vulnerabilities in their food supply chain and mitigate the risks of disgruntled employees and terrorists intentionally adulterating food to harm the consumer. Company: V ormittag Associates, Inc. (VAI) Web site: www.vai.net Year founded: 1978 Number of employees: 143 Number of food customers: 39 Solution name(s): S2K Enterprise for Food Worth noting: VAI is a two-time IBM Beacon Award winner for: Outstanding Solution for Midsize Business and Most Innovative “Built on IBM Express Portfolio” Solution Company: WITRON Integrated Logistics Web site: www.witron.com Year founded: 1971 Number of employees: 2000 Number of food customers: 30 Solution name(s): Order Picking Machinery (OPM) Worth noting: Our Warehouse Automation technology doesn’t just make work easier inside the distribution center, but also in the stores and on the road. Thoroughly calculated and storefriendly pack-patterns save space on the trailers and make the unpacking and replenishment of goods at the stores easier than ever. Company: W olters

Kluwer Transport Services

Web site: www.wktransportservices.com and www.transwide.com Year founded: 2000 Number of employees: 200+ Number of food customers: 34 Solution name(s): Transwide TMS Worth noting: With regional sales, implementation and support offices in New York, Brussels and Shanghai, we have a unique capability deploying solutions anywhere across the globe, and are already delivering rapid ROI for 200+ companies in 80 countries across four continents. Our modular solution design and SaaS (“Cloud”) delivery/business models are ideal for shippers who are looking to take advantage of the benefits of automating their transportation and logistics operations and processes, but doing so in a way that allows for minimal risk, rapid ROI and achievable deployment objectives, thanks in part to a modular, “pay as you go” business model that allows customers to access our powerful Transwide TMS solution. ◆ www.foodlogistics.com

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Sensing demand in over

160

countries

Terra has been the global leader in demand sensing since inventing it in 2002. We help some of the worldâ&#x20AC;&#x2122;s largest manufacturers accurately predict demand in volatile markets, cut unnecessary inventory and ensure product availability. Learn how demand sensing can improve your customer service and cash flow. terratechnology.com 203-847- 4007 x136

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SECTOR REPORTS

WARE HOUS ING: E n e r g y E ffic ie n c y

Warehouse Energy Optimization: More Options To Consider Innovations emerge for lighting, refrigeration, HVAC and improved sustainability. By Elliot Maras

anaging energy in a distribution warehouse has become a highly specialized field in recent years, thanks to the evolution of alternative energy, be it solar power, wind power, and various innovations for managing machinery, lighting and temperature control. Food and beverage (f&b) warehouse operators too are discovering new ways to use energy more efficiently. Not surprisingly, these efforts help save costs and meet sustainability goals. Lineage Logistics, the Colton, Calif.-based cold storage provider, joined the U.S. Department of Energy’s Better Plant Challenge for 2015, a pledge to reduce energy intensity corporate-wide by 25 percent over 10 years, says Neil O’Leary, senior director of business development. This initiative led the company to embark on a variety of energy management projects. “Capital improvements include projects like LED lighting, refrigeration system upgrades, real-time energy monitoring and solar panels,” O’Leary says. “Operational efficiency projects include continuing education for our engineers, third-party facility tune-up programs and internal operations studies, like the one we recently performed on blast freezing.”

Facilities embrace LED lighting The most significant change in many warehouses in recent years has been the introduction of LED (light emitting diode) lighting. LED offers more versatile lighting at a lower cost than fluorescent and metal halide lights. It also reduces air conditioning costs since LED lights do not emit heat. Intelligent LEDs use advanced sensing technologies, wireless networking and metered data to fundamentally change how lighting is being used or not used in a warehouse. It also allows a customer to restrict illumination to when and where it is needed. Intelligent LED systems allow facilities to monitor non-lightingrelated energy loads, such as HVAC systems 58

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Richard Murphy claims the solar arrays produce 12 percent of the facility’s electricity and have delivered $20,000 in annual savings for Murphy Warehouse Co.

and warehouse machinery. In addition, connecting warehouse equipment to the lighting system can provide detailed energy usage and performance data via the same energy and analysis platform used to manage lighting. In this way, intelligent lighting systems give facility managers a way to manage energy facility-wide. Allison Parker, director of marketing at Digital Lumens, the Boston, Mass.-based manufacturer of LED lights, says one of the most significant benefits a warehouse realizes from intelligent LED systems is on the activity patterns taking place. For example, “You see exactly where people are going at what time of day; you realize the lights are on in aisle four all the time,” Parker explains. Conklin, N.Y.-based Maines Paper & Food Service saved 1.7 million kilowatts per year after Digital Lumens replaced 400 metal halide lights with LED lights throughout the company’s facility, Parker says. The intelligent lighting system has increased light levels for

• FOOD LOGISTICS

facility staff, while reducing energy usage by a documented 87 percent. Maines also qualified for New York State financial incentives to install the system. Fort Worth, Texas-based Ben E. Keith Co.’s newest facility incorporated Digital Lumens’ LED smart lighting system in its 475,000-square foot DC. The LED smart lighting reduced lightingrelated energy use significantly, says Shaun McFaul, operations manager at Ben E. Keith Co. Backed by performance data from the company’s distribution centers, the Digital Lumens system is expected to save the new facility 90 percent of the lighting energy versus high-intensity fluorescents, and 75 percent over plain LEDs without integrated sensors and software controls. “It’s been a great product,” McFaul says. “I thought the high bay fluorescents were great, but these LEDs have even blown those high bay fluorescents out of the water.” Repeatedly cycling fixtures on or off, dimming, or continuous cold temperature operation will not impact the longevity of the LED fixtures. Therefore, the lights can be turned off whenever a space is unoccupied for a specified period of time, even in areas where temperatures consistently reach minus www.foodlogistics.com

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At left, Ben E. Keith Co. installed an intelligent LED lighting system at its Fort Worth, Texas facility and realized significant savings. At right, vertical storing hydraulic dock levelers in a facility managed by Ryan Companies provide a smooth transition from a trailer bed to the dock leveler.

40 degrees Fahrenheit. By running at a low wattage, the smart lighting system reduces thermal loads placed on its new refrigeration systems, saving additional energy and shortening refrigeration duty cycles, McFaul says. By eliminating re-lamping, re-ballasting and other routine maintenance costs, Ben E. Keith’s Houston facility will eliminate those expenses from the annual operating budgets.

Key cost: warehouse refrigeration For cold storage facilities, refrigeration consumes the most energy. State-of-the-art refrigeration systems are designed to achieve and maintain the specific required conditions of a facility’s refrigerated space by producing enough cooling to overcome the heat added by external and internal loads as well as the heat generated by the product, says Bob West, director of business development for the industrial sector of Ryan Companies, a commercial real estate firm providing design-build construction, real estate development, and real estate management services. Refrigeration systems usually have four major components — compressor,

condenser, expansion device and evaporator, West says. To maximize the overall efficiency of a refrigeration system, he says it is important to consider the interaction among components as well as the individual performance of each. Although the particular equipment and control strategies that produce the most efficient refrigeration system will vary by facility, West cites the following factors to consider: type and variability of load (temperature and humidity requirements for product, including entering product temperatures and product turnover); system size and cooling requirements; geographic location (ambient temperature, seasonal temperature changes); for existing systems, age of the system. Control technologies on compressors can enhance the performance of a refrigeration system, West says. An effective control technology with energy savings potential is the variable frequency drive (VFD), which controls the motor speed based on required load, he says. Systems with variable cooling loads can benefit substantially from VFD retrofits; however the viability of this option depends on equipment-specific factors, and

the compressor manufacturer should be consulted, he says. For systems using multiple compressors, one strategy is to optimize the sequencing of compressors, says Tim Bauer, director of industrial architecture at Ryan Companies. Control systems can sequence compressor operations so they match variable load requirements. Condenser design also plays a role in refrigeration system efficiency, Bauer says. The capacity and performance characteristics of the condenser have a direct effect on compressor efficiency. Selection of the appropriate condenser depends on the ambient weather conditions, the amount of heat rejection needed, and the available space.

Dock levelers boost efficiency Vertical storing hydraulic dock levelers are a fairly new development for improving warehouse efficiency, adds Bauer. An extended lip chamfer--a beveled edge connecting two surfaces--provides a smooth transition from the trailer bed to the dock leveler. A smooth transition between loading dock and trailer reduces jolts to forklift operators, thereby minimizing product and

Simple and Secure Automatically generated PDF reports no software, no worries. testo 184 cold chain data loggers 800-227-0729 www.testo.com/184 60

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www.foodlogistics.com

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equipment damage. The overhead door closes all the way to the pit floor, providing better environmental control over temperature and humidity extremes. “There is no air getting in and out because of that vertical leveler,” notes Charla Whalen-Mueller, director of marketing and recruitment at Witte Bros. Exchange Inc., an asset-based 3PL based in Troy, Mo., that has used vertical storing hydraulic dock levelers. Whalen-Mueller also concurs with Ryan Companies that the VFD allows the compressor to run at a lower speed in accordance with the work load. The selection and control of other equipment located in the refrigerated space can have a big impact on the energy requirements of the refrigeration system, Ryan Companies’ Bauer says. Lighting, motors, forklifts, human traffic and other internal heat sources all contribute to the cooling load and should be considered when pursuing energy saving strategies. Other sources of heat gain include infiltration and fenestration through the building shell. Door openings, ventilation and insulation materials are some of the factors affecting heat gain through the building shell, he says.

Condenser control plays a part Another control strategy is condenser floating head pressure control, Bauer says. In many standard systems, head pressure is controlled to be at the fixed design condensing temperature set point, which is typically high enough for the compressor to be able to meet the maximum system design load at ambient conditions. In these systems, condenser capacity is controlled through condenser fan cycling or adjustment of the fan speed,

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Bauer notes. With condenser floating head pressure control, the condenser head pressure is allowed to “float” down to lower levels by taking advantage of the increased cooling capacity of the condenser during cooler ambient conditions, he says. The control system is only one aspect of energy management, Bauer says. The equipment needs to be properly operated. “You can have a good design and operate it

system,” Smith says. He sees LED lighting as the most significant new innovation in energy management. Smith further notes that the next generation of refrigerants will be cryogenic refrigeration, which uses freezing mixtures such as dry ice, solid CO2, liquid CO2, or liquid nitrogen. “This next generation of refrigerants will be better for the environment as their global warming potential is significantly lower than traditional refrigerants,” he said. Ohio Farm Uses Tax Credits To Install Meanwhile, the application Energy Saving Wind Turbines of cascade carbon dioxide Cooper Farms, a turkey and pork producer in Van Wert, Ohio, took and ammonia refrigerating advantage of the state’s energy credits and three years ago installed three systems has been gaining wind turbines that power three quarters of the plant’s electricity. The bigpopularity in food distribugest electricity output is for cooling. The plant continuously cooks 100,000 tion facilities in recent years, pounds of meat. Gary Cooper, owner, says the company is on track to according to Tim Nguyen, recover its $6 million investment over seven or eight years. In addition to the regional vice president of installation costs, the turbines require about $100,000 in annual mainteHartland, Wis.-based ESI nance, Cooper says. He says it would not have made sense to invest in the turbines without the federal and state tax credits. Van Wert, in Northwestern Group, a design-build general Ohio, sits at the tail end of a jet stream, which undoubtedly contributes to contractor. The primary facthe effectiveness of the wind turbines, Cooper says. In addition to providing tors contributing to the lower an efficient source of power, the turbines have helped with the company’s cost are in operating efficiensustainability initiatives and its public relations. cies of the system, including Wind has accounted for 33 percent of all newly smaller, low-stage compresinstalled U.S. electricity generation capacity sors; smaller low-temperature over the last seven years, according to the U.S. suction piping, valves, and Department of Energy. ◆ liquid separating vessels; less piping and vessel insulation. Wind turbines provide However, the type of refrigerthree quarters of ation that makes the most sense depends on the electricity at the warehouse’s refrigeration needs, Nguyen Cooper Farms in Van says. He adds that the cost comparison of the Wert, Ohio, a turkey and pork producer. cascade carbon dioxide and ammonia system is such that it makes sense for clients with poorly,” he says. “We find that a lot.” multiple warehouses to determine a baseline Penske Logistics utilizes dock levelers, load for energy use comparison. high speed doors, variable speed pumps, automatic lighting and LED lighting to Battery charging and water reduce the cost of warehouse refrigeration, management matter too says Mark Smith, area vice president. He While refrigeration accounts for the largest also sees satellite monitoring of temperature use of energy, savings can also be achieved in creating new opportunities to save on energy. vehicle battery charging and lighting, Nguy“You don’t have to be on site to monitor your en says. A comprehensive energy manage-

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ment system can determine when peak loads occur and allocate functions that are not time sensitive, such as battery charging, to nonpeak times. This can reduce the likelihood that the energy use will exceed the point where the company will incur a surcharge. Murphy Warehouse Co. in Minneapolis, Minn., achieved substantial energy savings through more efficient water management, says Craig Wilson, co-owner and principal of Sustology, a Minneapolis-based sustainability consulting firm that has assisted Murphy Warehouse in upgrading more than 2.7 million square feet of warehouse space in the Twin Cities. The $580,000 storm water management system on the Murphy Minneapolis headquarters campus retains 97 percent of storm water on site versus 95 percent running off site before the project, saving the company $74,000 in annual fees. The system will deliver a 7-year return on investment. The company upgraded its plumbing fixtures and installed a state-of-the-art satellite-based irrigation system, in addition to a soil moisture system that responds to weather data, meaning the irrigation system will not run if rain is in the forecast. Murphy Warehouse Co. augmented its plumbing and irrigation measures with new

HVAC equipment. Dock blankets have increased temperatures by about 10 degrees and reduced heating expense by 15 percent in the winter. Programmable thermostats and occupancy sensors also decreased energy consumption, along with replacement of window air conditioning units with Energy Star-rated HVAC units that have programmable thermostats, says Neil Manns, Murphy Warehouse marketing coordinator. They have also upgraded one 350,000-square foot facility with LED lighting inside and out. The exterior lights run at 20 percent until the area is occupied; they then switch to 100 percent power. Murphy’s overhaul also involved installation of a 326 kilowatts of solar PV in roof solar arrays; the company now produces 12 percent of the facility’s electricity on site, which translates into $20,000 in annual energy savings, says Manns. Through a series of federal state and local energy company initiatives, the company’s investment in solar energy will deliver a 4-year return on investment.

Solar power blazes ahead

Solar power has emerged as one of the more controversial energy systems in recent years, due to the government credits and incentives that some observers claim are necessary to costjustify the installation of solar panels. Some The 2016 VNL: companies claim they have been able to construct multimillion-dollar facilities without spending any of their own money. ESI Group’s Nguyen says solar power makes sense in certain geographic areas where there is more sun, such as the U.S. West and Southwest. He also says tax credits and incentives are needed for solar projects to be cost-justified. ESI Group has installed solar panels on some warehouses. RLS Logistics, the Newfield, N.J.At Volvo, fuel efficiency isn’t just a feature—it’s a philosophy that guides everything we do. That’s why we outfitted the 2016 model year VNL based logistics proseries with new aerodynamic enhancements and the latest evolution of vider, partnered with our award-winning XE powertrain packages. Saving your fleet money. That’s innovation with purpose. HelioSage, a solar Learn more: volvotrucks.us/VNL2016 project development firm, and Dynamic

Every difference makes a difference.

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For more information: DIGITAL LUMENS, 617-723-1200, digitallumens.com DYNAMIC SOLAR LLC, 484-318-8800, dynamicsolar.com ESI GROUP, 262-369-3535, esigroupusa.com HELIOSAGE, 434-293-7589, heliosage.com LINNEAGE LOGISTICS, 800-678-7271, linneagelogistics.com MURPHY WAREHOUSE CO., 612-623-1200, murphywarehouse.com PENSKE LOGISTICS, 800-529-6531, penskelogistics.com RLS LOGISTICS, 856-694-2828, rlslogistics.com RYAN COMPANIES, 877-717-2520, ryancompanies.com SUSTOLOGY, 612-455-2177, sustology.com U.S. DEPARTMENT OF ENERGY, 202-586-5000, energy.gov WITTE BROS. EXCHANGE INC., 800-325-8151, wittebros.com

Solar LLC, a solar integrator, to install a 257-kilowatt solar array on the roof of the company’s headquarters, says John Gaudet, vice president of business development at RLS Logistics. The power generated by the array will provide RLS with instant cost savings and a reduced dependence on grid power. The 257-kilowatt array will power more than 300,000 kilowatt hours a year, enough electricity to power 25 typical U.S. homes. The solar array reduces the facility’s CO2 emissions by 200 tons per year, which is equivalent to taking 40 cars off the road or avoiding 70 tons of landfill waste each year. Under a contract known as a power purchase agreement, RLS hosts the solar array and pays a monthly power bill, which has allowed the company to go solar without any capital outlay, Gaudet says. Moreover, the price RLS will pay for solar electricity over the 15-year agreement represents a considerable discount to its previous rates for power. Energy management has become an increasingly specialized field in warehouse operations, given the evolution of lighting systems, refrigeration technology, computerized compressors, facility improvements, refrigerants and other innovations. Warehouse operators are increasingly turning to specialists to help them operate more efficiently while meeting their sustainability goals. ◆ www.foodlogistics.com

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SECTOR REPORTS

SOF TWA RE & TE CHNOLOGY

Mobile Devices: Consumer Market Raises The Bar For Work Environments Mobile communication technology continues to evolve at rapid speed, but user needs still depend on whether the devices are being used inside or outside the ‘four walls.’ B Y E R I C S A C H A R S K I

hese days, the “next best thing” in mobile devices, smartphones and tablets that you simply cannot live without roll out every other week. And since the speed of business requires workers to be able to do everything involved in their day-to-day activities from a mobile device, it has become the norm, not the exception. The need for fast and reliable mobile tools is especially important in the food and beverage sector. Factor in the idea that an entire generation of workers and management, the same generation that will soon be your future managers and leaders of your business if they aren’t already, have grown up with some form of a mobile device connected to them at all times. The reality of where your business currently sits with its mobile solutions has become crucial to your bottom line, so keeping pace with the rapidly-evolving mobile device market is just as important as many other items on your company’s balance sheet.

Needs are driven inside the ‘four walls’ With a maze of choices, including hardware models, applications and operating systems, the task of choosing a mobile device can often be a confusing one. But the bottom line is that it’s still all about customer needs and what environment the device will be used in that drives the decision. 64

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A delivery driver uses his Zebra Technologies’ enterprise-class mobile device to confirm details in real time.

“The device still really depends on the use case, the sophistication of the users and the IT organization,” says Kenneth Currie, vice president of business development for Barcoding, Inc., a company that specializes in enterprise mobility systems from barcode labels and mobile devices to RFID technology and wireless networking. “We are constantly asking our customers about their needs,” adds Bruce Stubbs, director of industry marketing at device manufacturer and mobile solutions provider Honeywell. “We Zebra Technologies’ TC70 touch computer is the industry’s first enterprise-class mobile computer running the Andriod KitKat operating system, combining the ease of use of a smartphone with the durability, reliability and performance that businesses demand.

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don’t want to develop devices that aren’t solving specific needs of clients.” Consumer-grade mobile devices, like smartphones, tablets and wearable technology products like Google glass and Apple watches that people can buy off the shelf at electronic or cellular stores around the corner, are becoming better in quality and performance every day. But the fact remains that there is still a huge gap in their performance and durability when they are compared to enterprise-grade devices developed and designed specifically for DC, warehouse and cold storage facilities found across the food and beverage sector. This quality and durability gap is what drives the market today, giving consumer level devices bought off a store shelf a much higher total cost of ownership (TCO). “Customers who have tried consumer products have found that it has cost them more money in the long run,” adds Girish Rishi, senior vice president of enterprise solutions at device manufacturer and mobile solutions provider Zebra Technologies. These costs are often referred to as “indirect costs” when calculating a device’s TCO and they typically include significant service costs when consumer devices fail or break, as well as replacement costs when devices cannot be fixed and need to be replaced. They also include operational costs associated with voice and data plan rates that are often lower for enterprise-grade solutions over the entire life of the product. All of this device “downtime” also equates to perhaps the biggest and www.foodlogistics.com

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most important indirect cost, the cost of losing business and worker productivity. When devices don’t work and need to be repaired constantly, workers stand around waiting and so do customers, something that just cannot happen in today’s competitive market. “In a DC, a consumer-grade device just doesn’t last,” says Jay Blinderman, director of product marketing at Vocollect/Honeywell emphatically. “Smartphones are great for a supervisor or management level role, but they simply aren’t practical in a DC environment.” “Their (consumer-grade devices) product development life cycles are very short, it’s typically measured in months and not years,” adds Mark Wheeler, director of supply chain solutions for Zebra Technologies. “There are plenty of users for consumer-grade devices, like in sales calls and delivery, but they just don’t last long enough inside the four walls of a plant and it drives the total cost of those products way up.” Questions about durability and the differences between consumer- and enterprisegrade devices were some of the biggest dilemmas confronting Foodstuffs when they went looking for a mobile device solution. Foodstuffs is a wholesaler, distributor and retailer of groceries in New

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Honeywell’s Captuvo SL62 enterprise sled encases an Apple® iPad mini™, transforming it into an enterprise-ready device for businesses that prefer the simplicity and familiarity of iOS.

Zealand with extensive warehousing and transport operations and more than 6,000 employees, so a mistake in making their solution choice could be catastrophic. Foodstuffs was using manual and paperbased systems which were slowing down the distribution of goods to over 650 retail outlets, and their systems were also prone to human error because information was being handled two or even three times by different people, according to Murray Gray, support manager at Foodstuffs, in a case study. These inaccuracies were costing Foodstuffs money and it needed to simplify the supply chain processes to increase accuracy and free up resources to concentrate on other tasks. Foodstuffs introduced Zebra Technologies’

Symbol devices into their supply chain and it has helped ensure that the right products are on the shelves and alleviated the strain on resources, according to Murray. Now they can maximize uptime and ensure that the staff has the tools they need to continue working at maximum efficiency.

Enterprise versus consumer tools In order to close the gap in quality between an enterprise device and a consumer-grade device, technology providers are finding ways to adapt consumer devices to make them more durable and rugged for use inside the harsh and sometimes unforgiving conditions found in cold storage facilities and manufacturing and warehouse environments. Zebra recently unveiled a new device called the TC70 touch computer, a handheld device that combines the look and feel of a smartphone with the durability needed in a DC, warehouse or manufacturing facility. It gives users an “all-touch” screen similar

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to their own devices, yet with the durability and ruggedness that allows them to be used with or without gloved fingers in cold conditions, and inside extreme temperatures and humid environments. Perhaps the most important feature is that it is the first “enterprise-quality” device that runs on the Android KitKat operating system, so it literally operates like the device employees bring to work every day with access to all of the Android-based applications available on the market currently. Although, as Blinderman points out, employers need to be careful of what they wish for when he adds “a device with a screen that runs normal apps enables workers to do things on it they probably shouldn’t be doing at work.” Honeywell has developed a product it calls the Captuvo Enterprise Sled, a compact device holder that transforms the popular Apple iPod touch and iPad devices into an enterprise-ready device designed to be used in barcode scanning, inventory management and inside the DC applications. These sleds can take iPads and iPods right off the shelf and make them durable and rugged enough that workers can go straight from the office to the forklift without the worries normally associated with those types of transfers. Instead of being forced to stop their work session, log out of the computer mounted to the forklift, move over to a fully-charged forklift and re-log in on a new computer to resume their work, now workers can simply detach their iPad and move with almost instant turnover, cutting down wasted time while increasing productivity and efficiency. “Smartphones and tablets are becoming more prevalent in our day-to-day conversations with our customers, and it’s being driven by the executive level and companies determined on becoming a BYOD (bring your own device) environment,” says Prashant Bhatia, vice president of industry strategy at JDA, a supply chain solutions provider. “Being able to use a tablet on a forklift, for instance, is quickly becoming a viable solution and it’s not being used as a replacement or as the same function as a handheld unit.”

Mobility enhances multi-tasking These types of solutions also give users a real time data solution that enables them to continue to do their office-based work while on the shop floor, which increases a manager’s presence to motivate and monitor staff, investigate operational performance problems and even interact with customers. With worker mobility becoming less of a luxury and more of a requirement, especially 66

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STEPS To Finding

• Application and Environment Demands. Can your device survive the inevitable? If your line-ofbusiness environment involves extreme temperatures, humidity, dust or dirt, harsh wash-down disinfectants, direct sunlight or the inevitable drop from multiple story heights, you’ll need a device capable of handling these extremes without fail. • Data Capture Requirements. How often will the device double as a scanner? Whether the application to your environment requires scanning hundreds of bar codes a day, if it will need signature capture and credit card payment capabilities and the speed and accuracy to do it all day long, now and/or in the future as your business grows, are all important factors to consider before purchase. • Power Needs. Will the device be in continuous use all day or over multiple shifts? Will workers be constantly on the move and unable to access a charging solution for long periods? Power management issues go beyond having a high-capacity battery or being able to swap out a battery in the middle of a shift. • Training and Ease of Use. How will your workers adapt to their new device, or will your deployment be prone to workarounds and noncompliance? Familiarity with the operating system is a huge factor here, and the demographics of your workforce and their preferences will have as much of an impact on the device you choose to help or hinder their completion of everyday tasks. • Security Requirements. What are the risks and implications of a potential security breach from your mobility deployment? Security used to have a narrow focus around items like credit cards and personal information, but now it has a much broader scope because any information about your customers and operations is considered a serious breach of trust. Ultimately, securing your mobility deployment comes down to the capabilities of the device you select. • Connectivity Options and Quality. Does the

with regards to track, trace and safety regulations inside food and beverage facilities, the need for mobile devices to move in tandem with those demands is critical. Staying on pace with the changing technology in today’s device market is important. Is your company using the best mobile solution for your environment or are you losing money with outdated and insufficient devices? ◆

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The Right Mobile Device

ebra Technologies recently put together a guide to help managers in any sector find the right mobile device for each and every situation. Since both consumer and enterprise-grade devices have their own niche and place in the business realm, the right solution will help a user gain the productivity, efficiency and service necessary to realize the full return on their investment.

•

device have the power and features required to remain connected for high-quality performance? When workers need to access job-related data or back-end systems on the move, robust WAN/ WLAN connections and seamless roaming can make all the difference. Will your system need to span one building, several buildings, and/or support workers in the field? All are important factors to take into account. Manageability, Control and Support. Will the device lighten the load placed on the IT department or add to it? The ability to centrally and remotely manage your device fleet is critical for everything from pushing upgrades to troubleshooting. This is especially important in situations of a BYOD (bring your own device) solution, because it could force employees to become responsible for their own support, or require IT personnel to be familiar with hundreds of different models. Support and Repair Services. Is the support plan cost effective and all encompassing? To keep the entire fleet of devices up and running requires fast turnaround on repairs and replacements. Start by evaluating device failures and the implications of those failures on your business and customer service, then find a support plan that can mitigate these risks. Lifecycle Management. How will the rate of device churn impact your deployment? Constantly replacing failed devices and/or upgrading too frequently can result in a fleet of mixed generation devices with significant support complexities. Total Cost of Ownership (TCO). How much will the device really cost? When you factor in potential costs of worker downtime, replacement cycles, additional accessories and support needed for implementation, it’s easy to see that the true cost of deploying mobility to support your business goes far beyond just the device’s initial purchase price. To avoid any financial surprises, calculate the TCO of each device and consider these factors prior to any mobile deployment. ◆

For more information: BARCODING, INC., 888-860-7226, barcoding.com HONEYWELL, 877-841-2840, honeywell.com JDA SOFTWARE, 678-639-5000, jda.com VOCOLLECT, 412-829845, vocollectvoice.com ZEBRA TECHNOLOGIES, 866-230-9494, zebra.com www.foodlogistics.com

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Transportation

ADVERTISER INDEX ADVERTISER

PAGE

ADVERTISER

PAGE

Newell Rubbermaid....5, 9, 25, 34-35

California Natural Products........... 47

Penske .......................................... 39

CAMS Software Corp.................... 33

PROCAT Management Services... 65

CaseStack Inc............................... 53

ProMat 2015.................................. 63

Cass Information Systems, Inc..... 55

Raymond Corp.............................. 12

Corcentric...................................... 43

Rehrig Pacific................................ 23

Cubic Designs, Inc........................ 40

Rite Hite Doors, Inc....................... 19

Dematic......................................... 11

RYDER INC.................................... 31

ExtenData...................................... 49

Seagull Scientific........................... 54

Extol International, Inc................... 61

Technology Group Int'l.................. 46

FG Products, Inc........................... 32

Terra Technology........................... 57

Ford Motor Co.............................. 2,3

Testo.............................................. 60

Green Mile..................................... 56

TMW Systems, Inc........................ 17

Interlake Mecalux.......................... 37

Tyco Integrated Security................ 13

Intrafab.......................................... 24

Utility Trailers................................. 27

Johnson Refrigerated Truck Bodies.70

Volvo Trucks North America.......... 62

KNAPP Logistics Automation........ 45

Wabash National............................. 7

Magline Inc.................................... 41

Witron............................................ 51

Mercury Gate Int'l.......................... 29

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FOOD (and More) FOR THOUGHT

MIKE HOWER

Innovations To Slash Food Waste

t’s no secret that food waste is a mounting problem in the U.S. In 2010, 31 percent—or 133 billion pounds—of the 430 billion pounds of the national food supply went uneaten, according to the U.S. Department of Agriculture. Several companies and organizations are innovating to develop new tools and approaches to solve our food loss problem. Here are nine of the most notable ones: Reusable shipping vessels. After working with design consultants at RKS to create a more efficient solution for made-ondemand, direct-to-consumer food delivery, FreshRealm developed a first-of-its-kind, temperature-controlled and reusable shipping vessel. Unlike other available shipping options, the vessel delivers food two days after it’s made and keeps that food cold at 40 degrees F for 40 hours without any electricity or consumables. Redirecting food in-store. Food Star partners with retailers to redirect food in-store before it is wasted. Through flash sale emails, shoppers are notified of limited-time produce sales events where they can buy at extreme savings. After the event, any unsold perishables are directed to composting instead of landfills. Automated food waste tracking systems. LeanPath seeks to replace the food industry’s inefficient “paper and clipboard” approach to waste management with a fully automated food waste tracking system. Using anaerobic digestion to turn food waste into energy. Feed Resource Recovery has designed and implemented a zero-waste solution for the food industry that leverages customers’ existing transportation and distribution systems to generate clean, sustainable power for onsite operations—reducing emissions and saving millions of dollars on waste-removal costs. In nature, wetlands use anaerobic digestion to purify the earth’s wastewater. Feed uses this natural process, along with technology and optimization advancements, to cleanly and efficiently convert the carbon in organic waste into a renewable natural gas. Similarly, Waste Management, Inc. collects food scraps from restaurants, grocery stores, hotels and food processing plants, takes them to a company facility in Carson City, Nev., and grinds them into a slurry. That liquid is taken to a wastewater treatment plant, where it is mixed in with sewage—one part food waste to nine parts human waste—and processed in an anaerobic digester. This results in a biogas that can be burned as fuel. Leveraging food waste for fertilizer. California Safe Soil provides a full-cycle process that helps supermarkets recycle their organics, 68

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improve store hygiene and reduce costs, while also helping farmers save money, increase crop yield and reduce nitrate runoff. The company’s fertilizer product mechanically grinds and heats food collected from supermarkets, then processes it through enzymatic digestion to obtain a liquid that is pasteurized, screened, stabilized and homogenized to an average particle size of 26 microns. HOWER Cutting food waste with consumer apps. Apps such as Green Egg Shopper allow consumers to save food and money in three steps. First, users create a shopping list starting with a new or archived list. They can plan the quantity of food by viewing previous lists, as well as check prices of which items previously were bought. Second, users “tick off” items in the list while shopping, or set a “Use by” date for perishables. Setting “Use by” automatically ticks off the item in the list. Third, users can view a list of items near expiry, and check the “Use Me Now” list before planning meals. Delivering groceries via drone. Amazon.com CEO Jeff Bezos said the goal for the company’s fresh grocery business is to expand to more cities and eventually use drones to deliver packages. It will take years to advance the technology and for the Federal Aviation Administration to create the necessary rules and regulations for this to become mainstream, but this could prove to be a great technology for reducing waste by rapidly delivering groceries. Targeting post-harvest waste. The Post Harvest Project looks at food waste before it hits supermarket shelves by working across the public, private and non-profit sectors to improve harvest-to-plate food preservation in low- and middle-income countries. The organization selects a commodity or small group of commodities and begins a holistic assessment of food waste throughout the supply chain within a country or region. It then identifies problem areas where industry, technology and/or training could reduce waste and ensure partners meet the needs identified in the assessment. Helping charities reclaim food waste. Food Cowboy helps food charities look and act more like supply chain companies by helping truckers and other donors search for them by location, operating hours, storage capacity and even loading dock type. It can also handle scheduling and communications so transfers happen as efficiently as possible, as well as streamline charitable donation paperwork so donors can get tax benefits. ◆ Mike Hower is a writer focusing on sustainable business and public policy. This article was reproduced in part with permission from GreenBiz, an organization that advances the opportunities at the intersection of business, technology and sustainability. www.foodlogistics.com

12/5/14 10:52 AM

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Ports & Ocean Wednesday, August 26 Software & Cold Chain Carriers Technology _________________

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Efficiency, safety and productivity are paramount for warehousing and distribution facilities in the food supply chain. The application of warehouse automation technologies, from robotics to AS/ RS and more, is getting much-deserved attention as companies explore the benefits and cost savings of the various offerings. Join a panel of experts in a roundtable discussion to find out how warehouse automation is making an impact in the food supply chain.

Third-party logistics providers are a key strategic and competitive asset for many companies in the food supply chain, providing support in the areas of transportation and logistics, compliance, import/export, risk management, and software and technology. Join executives from leading 3PLs in the food/ bev sector to find out how to develop a more collaborative working relationship with the goal of getting more from your 3PL.

Ports and ocean carriers are a primary link in the global food supply chain, particularly with the rise in imports/exports as more food companies expand their presence in overseas markets. At the same time, the migration of refrigerated food shipments from specialized carriers to containerized carriers is resulting in a fundamental shift in the cold chain. Join port and ocean carrier executives to learn more about the changes underway in the global food supply chain.

The global food supply chain depends on an integrated and sophisticated cold chain infrastructure, from refrigerated truck transportation to cold storage providers and others, whose products and services support time- and temperaturesensitive shipments. This educational webinar looks at some of the latest cold chain innovations in this important and growing sector.

From TMS and WMS solutions to new products and equipment, software and technology advancements are driving safety, efficiency, compliance and visibility throughout the food supply chain. Join a panel of executives in a roundtable discussion to learn more about the latest developments in this fast-moving segment of our industry.