Food Logistics November/December 2023

3PL TRENDS

CARGO THEFT

STATE OF THE SUPPLY CHAIN

From transportation and e-commerce to sustainability and emerging technologies, here’s the State of the Cold Chain.

Issue No. 241 November/December 2023

FoodLogistics.com

ONBOARDING

ON THE MENU

November/December 2023 ISSUE NO. 241 COLUMNS FOR STARTERS

04 Editor-in-Chief recaps a year of rebuilding and rebranding the supply chain.

DEPARTMENTS 06 Farm To Fork 10 Food on the Move

COVER STORY

Top 10 Trends to Shape Cold Food Chain in 2024

14

With the help of some supply chain visibility, sustainable measures, more focus on people and the ability to pivot at a moment’s notice, 2024 is anyone’s and everyone’s game to succeed.

3PL/COLD CHAIN

Trends Outlook 23 3PL for 2024

If 2023 was the cusp of a transformation for 3PLs, 2024 will be the era of implementation.

TRANSPORTATION

AWARD

Automation 26 How Provides Path to Efficiency

WAREHOUSING

in Cold 31 Investing Storage Facilities and Logistics

The overall supply chain software and technology sector continues to grow.

TexAmericas Center details the significant growth in refrigerated warehousing.

SOFTWARE & TECH

SAFETY & SECURITY

Air Cargo the Move to 32 Transforming 33 Making Here’s why Hermes Logistics Modern Warehouse

Technologies says utilizing a cloud-based solution is the most secure way of integrating and operating within the air cargo landscape.

www.FoodLogistics.com

Management

Gaea Global Technologies Inc. explains benefit of implementing WMS.

AI and Good 34 How Judgment Reduce Risk of Cargo Theft

DAT Freight & Analytics explains how human-powered detective work matters.

WORKFORCE DEVELOPMENT

Compliance 35 Driver Management

FleetDrive360: Understanding driver fitness compliance regulations is essential.

Here’s why. www.foodlogistics.com

WEB EXCLUSIVES • Supply Chain Network Virtual Summit www.SCNSummit.com

• Premium Content: Insights,

Trends, Technology, Best Practices https://www.foodlogistics.com/ premium-content

• Women in Supply Chain Forum www.

WomenInSupplyChainForum.com

NOVEMBER/DECEMBER 2023 | FOOD LOGISTICS

3

FOR STARTERS

BY MARINA MAYER, EDITOR-IN-CHIEF mmayer@Iron.Markets

2024: THE YEAR OF THE RABBIT I

@SergeyNivens.stock.adobe.com

n my column in Food Logistics’ Nov/Dec 2020 issue, I dubbed the year 2020 as the Year of Upended Supply Chains. Then, a year later, I dubbed 2021 as the Year of Mended Supply Chains.

But, while supply chains started to heal, the damage was done, marking 2022 as the State of Grim Supply Chains.

When I started writing this column, it was before the Israel-Hamas attacks. I spent an entire week trying to sum up this year’s occurrences. From inflation, inventory shortages and limited warehouse capacity to geopolitical conflicts, catastrophic weather events and a rise in cargo theft, the ripple effect that is a supply chain disruption can be felt far and wide and for quite some time. But none of it was interconnected. Every disruption or bottleneck was different.

Then the Israel-Hamas War began. And, it became personal.

So, instead of reflecting on what the year was, I started looking ahead to what 2024 could become.

While 2023 may be the Year of Bottlenecks, I’m hoping 2024 re-

sembles that of the Year of the Rabbit. According to Chinese culture, the Rabbit is a symbol of longevity, peace and prosperity.

In fact, the bellwether curve predictions show a year of hope ahead.

A year of progress. A future where supply chains pivot and prosper.

While the strengthening of El Niño will play a significant role in winter weather across the United States, according to AccuWeather, this winter is not expected to be a repeat of last year.

Feelings of optimism continue around the U.S. economy as indicated by the University of Michigan’s consumer confidence measure reading it at 68.1 in September—up 16.2% from this time a year ago.

California’s new regulations come Jan. 1 could present new opportunities in the field of electrification and autonomous vehicles.

A study released by professor and researcher Dr. C. John Langley of Penn State University, along with NTT DATA and Penske Logistics show improved partnerships with third-party logistics (3PL) providers.

The drayage industry is poised to grow from $6.1 billion in 2022 to $8.3 billion by 2027, according to new data from PortPro. The beauty of bottlenecks is that it’s temporary; what was once stuck or limited in movement can be unstuck and in motion.

Here’s to a Year of Longevity, Peace and Prosperity. Here’s to a Year of Rebuilding Supply Chains and Embracing New Relationships.

Here’s to Hope.

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

Managing Editor.......................................... Alexis Mizell-Pleasant amizell@Iron.Markets

AUDIENCE Audience Development Manager........................ Angela Franks PRODUCTION Senior Production Manger........................................ Cindy Rusch crusch@Iron.Markets

Art Director..................................................................... Willard Kill ADVERTISING/SALES Brand Director.......................................................... Jason DeSarle jdesarle@Iron.Markets

Account Executive....................................................... Brian Hines bhines@Iron.Markets

Account Executive.......................................................... Jay Gagan jgagan@Iron.Markets

IRONMARKETS Chief Executive Officer................................................. Ron Spink Chief Financial Officer......................................... JoAnn Breuchel Chief Revenue Officer........................................... Amy Schwandt Corporate Director of Sales................................... Jason DeSarle Brand Director, Construction, OEM & IRONPROS.Sean Dunphy VP, Audience Development.................................. Ronda Hughes VP, Operations & IT................................................... Nick Raether Content Director...................................................... Marina Mayer Director, Online & Marketing Services.......Bethany Chambers Director, Demand Generation & Education.............. Jim Bagan Content Director, Marketing Services.......... Jessica Lombardo CIRCULATION & SUBSCRIPTIONS P.O. Box 3605, Northbrook, IL 60065-3605 (877) 201-3915 | Fax: (847)-291-4816 circ.FoodLogistics@omeda.com

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

REPRINT SERVICES Brian Hines (647) 296-5014 | bhines@Iron.Markets Published and copyrighted 2023 by IRONMARKETS. All rights reserved.

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

Food Logistics (USPS 015-667; ISSN 1094-7450 print; ISSN 1930-7527 online) is published 6 times per year in January/February, March/April, May/June, July/August, September/October, and November/December

by IRONMARKETS, 201 N. Main Street, Fort Atkinson, WI 53538.

Periodicals postage paid at Fort Atkinson, WI 53538 and additional mailing offices.

POSTMASTER: Send address changes to Food Logistics, P.O. Box 3605, Northbrook, IL 60065-3605. Subscriptions: U.S., one year, $45; two years, $85; Canada & Mexico, one year, $65; two years, $120; international, one year, $95; two years, $180. All subscriptions must be paid in U.S. funds, drawn from a U.S. bank. Printed in the USA.

@FOODLOGISTICS

@FOOD-LOGISTICS-MAGAZINE

@FOODLOGISTICS

@FOODLOGISTICS

Published by IRONMARKETS 201 N. Main Street, Fort Atkinson, WI 53538 (800) 538-5544 • WWW.IRON.MARKETS

WWW.FOODLOGISTICS.COM

4 FOOD LOGISTICS | NOVEMBER/DECEMBER 2023

www.foodlogistics.com

Smart Labeling for Your Smart Warehouse Investing in a New WMS? Make sure you’re investing in the right barcode labels and signs to maximize efficiency.

Your Smart Labeling Partner Barcoding is a key part of a smart warehouse operation. Labels and signs connect your software with advanced scanning devices and are the foundation for a well-planned layout and numbering scheme.

If you’re implementing a new WMS, partner with ID Label for the industry’s highest quality barcode labels, signage and turnkey installation services. Thousands of organizations like yours do. That’s smart.

Contact us today to request samples or a quote on your next project.

When We do The Barcodes, You Can Do More 800-541-8506 • info@ idlabelinc.com

idlabelinc.com

FARM TO FORK

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

Supply Chain Tech Improves the Food Chain

@RobertWróblewski.stock.adobe.com

Although food has gotten considerable attention over the last several decades—from nutritional value to carbon footprint—closer attention must be paid to the mechanism by which food is produced— the food supply chain itself.

Arjun Ganesan, founder and CEO of Ancera, says recent advancements in technology are making this data available and usable, leading to more innovation, better financial outcomes, optimized operations and visibility, and countless other opportunities for a more resilient food chain.

Scan the QR code to learn more https://foodl.me/ect0w0ve

Tichauer Technical Laboratories developed a proof-of-concept Freshness Detector, designed to determine the freshness of produce by sensing the produce’s activity level.

The sensor can also be integrated with a barcode reading system to report lot overall freshness. The user interface could be a colorcoded readout based on user-defined breakpoints and be incorporated within user’s data structure for future analysis.

In fact, mode of transportation as well as time in storage can now be quantified in terms of expected loss of freshness. The system can be adapted to drones or handheld devices to scan the produce against a known set of pre-determined parameters.

Scan the QR code to learn more https://foodl.me/xtzknw6l

6 FOOD LOGISTICS | NOVEMBER/DECEMBER 2023

www.foodlogistics.com

@photobank.stock.adobe.com

Fresh Detect for Farm to Table

FARM TO FORK

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

Sugarflation and the Future of the Holiday Season

@gresei/stock.stock.adobe.com

The holiday season is a time of joy, celebration and indulgence.

Families gather around for festivities filled with sweet treats, and retailers stock their shelves with sugary delights to meet the increased demand.

However, this year, there’s a bitter twist to the holiday tale—weather factors and an impending sugar shortage may leave both producers and consumers in a sticky, pun intended, situation.

Alexis Mizell-Pleasant, managing editor at Food Logistics, explains how supply shortages put a damper on consumers and manufacturers alike at the height of the pandemic. At the time, substitutes were made to fill the gaps and systems were tweaked to bring about success in a strained time for supply chain. Similar acts may be on the horizon, as the holiday season quickly approaches.

Scan the QR code to learn more https://foodl.me/in999m3f

ProducePay released findings of an industry-wide survey that explored business stability for produce stakeholders, including growers, packers, distributors, integrated suppliers and end buyers in the United States and Latin America.

“The fresh produce industry is critical to feeding a growing world with sustainable and healthy food, and an economic engine for many rural communities across the globe,” says Patrick McCullough, CEO, ProducePay. “Given the importance of this industry, it’s essential that we support the entire vertical—from grower to retailer—by eliminating the volatility and unpredictability that limits economic growth and investments in sustainable practices, and that results in inefficient forms of waste throughout the supply chain. This requires developing tools and new ways of doing business that give growers and buyers greater control of their business by providing unprecedented access to each other, capital, trading, insights and greater supply chain visibility.”

Scan the QR code to learn more https://foodl.me/ro4fzkie www.foodlogistics.com

NOVEMBER/DECEMBER 2023 | FOOD LOGISTICS

7

@Iozochka.stock.adobe.com

How Weather Impacts Produce Business

FARM TO FORK

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

Verification Solutions to Combat Fraud

@Aryan.stock.adobe.com

DAT Freight & Analytics partnered with Verosint to create what is said to be the first artificial intelligence (AI)-powered identity-verification solution designed to help prevent the unauthorized use of customer login credentials and combat identity theft in trucking and logistics.

This new technology leverages AI and machine learning to validate user identities and scrutinize suspicious accounts.

Users of the DAT network can now verify the identity of the entities they are doing business with; ensure the legitimacy of load postings on the DAT load board; monitor, detect and block fraud in real time; and leverage DAT rules, signals and intelligence to identify signatures and block fraud.

@pakorn.stock.adobe.com

@gage.stock.adobe.com

Scan the QR code to learn more https://foodl.me/f84wp0h9

Climate Change and Climate-Controlled Logistics The infrastructure required to manufacture, transport, and store such amounts of ice cream—known as “the cold chain”—is itself a major contributor to climate change and rising global temperatures. Ice cream is actually a small percentage of the throughput handled by the cold chain every year. It is estimated that 70% of all food farmed or manufactured passes through the cold supply chain. An unfortunate truth about refrigerated and frozen foods is that not all of it will get eaten. Every year, 12-13% of the global food supply is wasted due to failures in the cold supply chain, rotting or otherwise expiring before it reaches retail destination. Ben Rubin, CEO and cofounder of SnoFox, says innovative industry leaders are already embracing such technology, but will require a full buy-in from end-to-end stakeholders to ease the impact of increased demand for cold logistics. The time to act is now and the urgency is high.

Scan the QR code to learn more https://foodl.me/l7vqonqw

8 FOOD LOGISTICS | NOVEMBER/DECEMBER 2023

Digitalization of Customs Clearing and Drayage in Perishable Goods Rick Tellez, co-founder of KlearNow. AI, says that the operational complexities are significant, given that each perishable product has a different life span and transportation requirements in terms of optimal temperature, transit times, and packaging and handling requirements. This translates into higher demand for cold storage at the landside and reefer containers for maritime transport, as well as access to visibility of cargo throughout its journey.

Given the operational complexities and comprehensive documentary and procedural requirements, importers and exporters of perishable commodities should incorporate digital solutions to streamline logistical aspects and customs clearance to help ensure the integrity of the products and exceed customer expectations.

Scan the QR code to learn more https://foodl.me/41si93ef www.foodlogistics.com

FARM TO FORK

NEWS FROM ACROSS THE FOOD SUPPLY CHAIN

@aprilian.stock.adobe.com

@DusanKostic.stock.adobe.com

Daily Updates at FoodLogistics.com

4 Ways to Manage Energy Use in Cold Chains Companies in the cold chain use a lot of energy to keep food safe from farm to fork. Many are thinking about how to reduce their footprint, but food safety and throughput remain paramount.

Jason Massey, founder and CEO of Ndustrial, details how new energy management tools are helping food producers and logistics providers optimize refrigeration equipment; maintain realtime temperature records; measure energy; and prepare for the electrification of trucks and TRUs. Scan the QR code to learn more https://foodl.me/s1w9f6l3

Initiative to Study Food Procurement Policies Public food procurement plays a critical role in feeding many people worldwide, particularly children from food insecure households.

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

“Food procurement is a complex process that has many associated rules, regulations and challenges, especially with local procurement efforts,” says Dr. John Reich, FFAR scientific program director. “The way institutions purchase food can positively impact a food system, and strong modeling will better support their decision-making process and the food purchasing environment.”

Scan the QR code to learn more https://foodl.me/sa3nqeh9

“Protecting the planet is important. So is protecting my business and getting the best value I can.”

The waste in your supply network is a measure of its inefficiency.

When you choose to use CHEP’s pooled pallets and containers, you become an essential part of one of the world’s largest circular economies. This means you benefit from less unnecessary waste and greater supply chain knowledge and experience, adding more value than anyone else could.

Expect more with CHEP.

See how www.foodlogistics.com

NOVEMBER/DECEMBER 2023 | FOOD LOGISTICS

9

FOOD ON THE MOVE

LOGISTICS TRENDS IN THE INDUSTRY Daily Updates at FoodLogistics.com

Southern Glazer’s Launches Logistics Arm

@5m3photos.stock.adobe.com

Southern Glazer’s Wine & Spirits launched Ankaa Global Logistics, a new wholly-owned subsidiary and premier logistics service provider for the beverage alcohol industry.

Ankaa’s mission is to provide seamless vertical integration solutions for beverage alcohol suppliers that are efficient, transparent, and differentiated. The 3PL company will provide inventory storage solutions, including temperature-controlled rooms in secured facilities for both short- and long-term needs, offer value-add packaging capabilities, such as repacks, labeling, and lot-tracking, and has the ability to store raw materials (i.e. glass, cardboard, etc.), barrels, and finished goods.

Scan the QR code to learn more https://foodl.me/wth800dx

High School Programs for Future of Trucking

Scan the QR code to learn more https://foodl.me/qko52ghg

@ttonaorh.stock.adobe.com

Reported Losses for Ports

10 FOOD LOGISTICS | NOVEMBER/DECEMBER 2023

Most port-proximate industrial real estate markets are registering tempered demand totals due to lower port volumes coupled with softening economic conditions, according to new data from Cushman & Wakefield.

Key port markets, such as Los Angeles and New Jersey, posted net losses through the first half of the year amid a slowdown in deal activity coupled with some large occupiers right-sizing their footprints and placing large blocks of logistics space onto the market for sublease. Also, tempering demand has been the notable annual decline in loaded inbound containers, as both key gateways have yielded year-over-year decreases more than 20%.

Scan the QR code to learn more https://foodl.me/3gnpwv2d

www.foodlogistics.com

@doubletreestudio.stock.adobe.com

The Next Generation in Trucking (NGT) Foundation announced plans to launch a first-of-its-kind Curriculum Companion to support high school commercial driver’s license (CDL) programs nationwide.

“Imagine how different our industry would look and feel if trucking was a first career choice for more people. Ten years from now, we’ll look back at this point back as this defining moment in the trucking industry when high schools took a proactive approach and provided the highest level of training for our students,” says Dave Dein, co-founder of the Next Generation Trucking Foundation and teacher at the flagship high school CDL program in Patterson, Calif.

The Curriculum Companion supports high school teachers in facilitating a year-long CDL course and prepares high school students to complete the CLP exam after they turn 18.

FOOD ON THE MOVE

LOGISTICS TRENDS IN THE INDUSTRY

@laszlo.adobe.com

First Commercial Autonomous Trucking Lane A.P. Moller - Maersk and Kodiak Robotics, Inc. launched what is dubbed as the first commercial autonomous trucking lane between Houston, Texas, and Oklahoma City, Okla.

“Teaming with Kodiak enables Maersk to stay at the forefront of innovative solutions. Autonomous trucks will play an instrumental role in digitizing the supply chain. We expect self-driving trucks to ultimately become a competitive advantage for Maersk as we execute on our strategy to provide customers with a sustainable, end-to-end logistics solution across air, land, and sea,” says Erez Agmoni, Maersk’s global head of innovation, logistics and services.

@sittinan.stock.adobe.com

Daily Updates at FoodLogistics.com

Nearshoring for Resilient Operations In light of recent disruptions, supply chain leaders are increasingly recognizing the need to mitigate risks through diversification and proximity-based strategies. Hybrid models that blend nearshoring and offshoring provide a robust solution to address these concerns. John Marrow, president of supply chain solutions at R. R. Donnelley & Sons Company, says the adoption of hybrid models offers organizations the opportunity to mitigate risks, meet customer expectations and drive sustainable practices. By strategically diversifying operations, optimizing inventory management, and embracing regional sustainability initiatives, businesses can forge a path towards greater supply chain strength, adaptability and success in the dynamic market environment.

Scan the QR code to learn more https://foodl.me/m8an3vkg

Scan the QR code to learn more https://foodl.me/0b0ta99p

Industrial Networks LLC (INet) released the SMRTag system, which fully automates railcar inventory collection for industrial railyards.

The SMRTag uses the latest in IoT-based location and asset management technologies, which enables single-point collection of multiple railcars for industrial shipping and storage facilities.

The system revolutionizes this process with INet’s SMRTMesh network by strategically positioning battery-operated, groundmounted anchors throughout the railyard to locate each SMRTag affixed to the railcar to give its exact position in the railyard. The INet technology significantly increases the speed and accuracy of railcar inventory while reducing tedious manual work and improving worker safety and efficiency.

Scan the QR code to learn more https://foodl.me/ez5bznu9

www.foodlogistics.com

@ulf.stock.adobe.com

Railcar Location Tracking Tech

NOVEMBER/DECEMBER 2023 | FOOD LOGISTICS

11

FOOD ON THE MOVE

LOGISTICS TRENDS IN THE INDUSTRY Daily Updates at FoodLogistics.com

@metamorworks.stock.adobe.com

Revolutionizing Through Cold Chain Telematics Telematics software offers a continuous stream of data, ensuring that temperature, humidity, and other crucial parameters remain within the specified range. This capability not only prevents spoilage but also empowers quick interventions when deviations occur.

In a world where precision and efficiency are the cornerstones of success, telematics emerges as a pivotal tool for the cold chain logistics sector.

The ability to monitor, analyze and respond to real-time data ensures that food and beverages traverse the supply chain with the utmost care. Hesam Seyedi, marketing, branding and communications specialist for GoFleet, describes that on the cusp of further advancements, the potential of cold chain telematics to reshape the industry for the better is boundless.

Scan the QR code to learn more https://foodl.me/sav4u9cb

Thermo King introduced the Advancer S-DRC slimline rail unit for cargo rail and intermodal applications. Utilizing the S-Series engine, the S-DRC will replace the SLXi-DRC and be what is dubbed as one of the first slimline units in North America that meets current CARB Ultra-Low Emission Transport Refrigeration Unit emissions standards, making it compliant in all 50 states.

Features include 10% improved fuel efficiency over the previous generation; next-generation control system that enables precise temperature management; a slimline profile that allows a competitive 15-pallet capacity and enables a smooth transition to over-the-road; two ThermoLite solar panels as standard; and integrated shore power.

Scan the QR code to learn more https://foodl.me/98rizca5

Thermo King

Ultra-Low Emission Trailer Refrigeration for Rail

@AKA-RA.stock.adobe.com

All About the ‘Freight Recession’ The transportation industry experienced an unprecedented surge in demand as the global economy adapted to changes post-COVID-19. Today, the world and the economy continue to evolve and the industry now finds itself in the midst of a “freight recession,” reports managing editor Alexis Mizell-Pleasant. This shift reflects the changing dynamics of global trade, consumer behavior and economic conditions, now hitting major players in the shipping space.

From Yellow to Convoy, and whatever comes next, it’s clear that changes and challenges are ongoing.

We can blame changing consumer behavior, supply chain adaptations, rising costs and ongoing economic uncertainties, but the blame game never really brings about a way forward. Instead, the search for solutions is on to ensure a resilient future for the industry and workforce.

Scan the QR code to learn more https://foodl.me/fh6bkwoq

12 FOOD LOGISTICS | NOVEMBER/DECEMBER 2023

www.foodlogistics.com

FOOD ON THE MOVE

LOGISTICS TRENDS IN THE INDUSTRY Daily Updates at FoodLogistics.com

Looking Ahead to the Future of Supply Chain

@Bernice.stock.adobe.com

This December, the SCN Summit live webinar series hosted by Food Logistics and Supply & Demand Chain Executive dives into the future of the supply chain. Hear from Accenture on the state of volume rebates based on Enable’s recent State of Volume Rebates report. Listen in as an expert from Interact Analysis explains the importance of warehouse management systems and how automation, robotics and wearables can provide forecasting, inventory refill, traceability and visibility.

Industry experts from PLM Fleet will talk food safety and electrification. And National Retail Federation will provide its annual State of E-Commerce. Tune in live or on demand post-event.

Scan the QR code to learn more https://foodl.me/2btd1js8

FROM VINE TO MARKET Getting perishables to the market in excellent condition is a tough job. But with our help, it’s a little easier. With a fleet of more than 1,400 53-foot refrigerated trailers and containers, Alliance Shippers Inc. has the capacity to manage the largest protective-service tasks.

When you have temperature-sensitive products — and a time-sensitive schedule — turn to us.

2017+2019 EXCELLENCE AWARD WINNER CERTIFIED MEMBER SINCE 2006

www.alliance.com www.foodlogistics.com

NOVEMBER/DECEMBER 2023 | FOOD LOGISTICS

13

COVER STORY

BY MARINA MAYER, EDITOR-IN-CHIEF

TOP 10 TRENDS TO SHAPE COLD FOOD CHAIN IN 2024

A

s of press time, inflation still exists, with climbing diesel prices causing financial stress for carriers and a rise in prices of finished goods being felt by consumers.

Companies still strive to nearshore, especially as the Hamas-Israel and Ukraine-Russia Wars hammer on.

Strikes at ports fused with unpredictable weather events pose additional challenges.

And, the influx in cargo theft, cybersecurity concerns and ever-changing industry regulations continue to threaten the safety and security of tomorrow’s supply chains.

But, when it comes to the State of the Supply Chain, the implementation of technology mixed with the ability to be flexible, nimble and versatile will enable the logistics world to pivot accordingly.

It’s anyone’s and everyone’s game to succeed.

Here’s a breakdown of Top 10 trends to watch in 2024, along with an outline of the

State of Transportation, State of Grocery E-Commerce, State of Software and Technology and State of Sustainability as it relates to the cold food chain.

Top trends to watch in 2024 Cargo theft. According to BSI’s Supply Chain Risk Insights Report 2023, food and beverage products were the most stolen products in 2022, and as of Q2 of this year, are being stolen at a rate of just over 2:1 of the next most stolen product, according to Erica Bressner, business intelligence analyst, BSI.

“A major contributing factor in the high levels of F&B being stolen was inflation, which was at about 9% in 2022 compared to wage growth of only about 5%,” Bressner says.

Automation and GenAI. Automation is expected to be a driving factor in the progression of the supply chain industry, especially amid ongoing labor shortages,

14 FOOD LOGISTICS | NOVEMBER/DECEMBER 2023

says Jacob Olson, director, solutions, Cleo.

“Automation of end-to-end workflows is transforming the industry by creating more efficient and resilient processes. Not only automation, but use of intelligence, specifically generative artificial intelligence (GenAI), will be increasingly helpful for demand forecasting, customer service and support,” Olson adds. “Some organizations are already leaning into more strategic uses of GenAI, including across operational functions such as procurement, production, and sales.”

What’s more is, automation is a means to an end.

“No matter the objective (lower cost, higher productivity or efficiency, mitigating labor risk, etc.), automation opportunities continue to be explored by many organizations to ensure long-term success rather than be subject to short-term volatility,” says Kira Bilecky, senior supply chain consultant, St. Onge Company. “Invest-

www.foodlogistics.com

@nicholashan.stock.adobe.com

ments remain high, but benefits continue to improve as well.”

Emerging technologies. As Internet of Things (IoT) technologies like sensors (RFID, GPS, eSIMs, etc.), cloud data storage and artificial intelligence (AI) and machine learning (ML) prediction models mature, the more likely companies can better track shipments in transit in real-time, according to Chris Pickett, COO, Flock Freight.

“We believe that not only can we dramatically improve the overall reliability of the food and beverage supply chain, but better visibility tech can also be leveraged to better utilize the transportation capacity in a marketplace that remains as fragmented as it’s always been,” Pickett adds.

To piggyback on the visibility trend is the growing adoption of these digital technologies to improve efficiency, visibility and traceability.

“This includes technologies such as AI, ML, big data analytics and IoT. For example,

www.foodlogistics.com

AI can be used to predict demand, optimize transportation routes, and identify potential disruptions,” says Jim Bresler, director of product management, food and beverage, Plex by Rockwell Automation.

Also crucial to AI is data, says Ryan Leigh, CTO of Bringg.

“Not only crucial to drive AI functions, customer data is the fuel for true optimization, empowering businesses to make crucial decisions around delivery prices and offerings based on customer loyalty and lifetime value to create more efficient and profitable strategies. This will become increasingly important to grocers of all sizes,” he adds.”

AI also has great potential to be a force for good, making supply chains more robust and efficient, Bressner says.

“But of course, there is a role for building trust too. BSI’s Trust in AI poll of 10,000 people around the world found that 77% of people said complete or at least some level of trust is needed for AI to be used to enable ethical supply chain management,” Bressner adds.

Cold food supply chain companies are also using predictive analytics to anticipate disruptions and make better decisions, Bresler says.

“This helps them to reduce waste, improve efficiency and increase customer satisfaction. For example, predictive analytics can be used to predict demand surges, identify potential transportation delays, and forecast the risk of food spoilage,” adds Bresler.

Warehousing constraints and the rise of 3PLs. As the digital transformation of retail continues with e-commerce now accounting for +15% of the total, Pickett says, consumer tastes are evolving faster than ever before.

“Building supply chain agility and nimbleness will be key. Those that can adapt to shifting consumption patterns the quickest will outpace those that can’t. So again, this one is all about velocity,” adds Pickett.

Despite facing continued challenges of capacity constraints, labor shortages and rising operational costs, 94% of third-party logistics (3PL) providers reported an increase in sales within their last measurement period, according to an Extensiv report.

What’s more is, the fourth-party logistics (4PL) market will continue to grow, and collaboration between 3PLs and 4PLs will help counter industry consolidation. Plus, omnichannel fulfillment will continue to grow for direct-to-consumer and B2B markets, leading 3PLs and 4PLs to experiment with micro-warehousing and optimize fulfillment times.

3PLs also leased more big-box (200,000 square feet or larger) warehouse space in North America than any other occupier category, according to a CBRE report.

Accounting for 41% of all big-box lease transactions in 2022, 3PLs expanded their footprints and claimed the largest share for the first time since CBRE began tracking activity in 2012.

Plus, over the past two years, 50% of shippers increased their spend with outsourced providers, compared to only 12% that decreased spend, according to a Coyote Logistics study, and 82% of shippers rely on 3PLs to procure capacity for at least some of their freight, with 38% using 3PLs for a majority of their shipments.

Freight recession. The trucking industry has been in a freight recession since basically Q2 2022. And, while some analysts believe that a new freight cycle will begin soon, others believe truckers won’t see any meaningful increase in rates until at least Q2 2024, according to Lewie Pugh, EVP, Owner-Operator Independent Drivers Association (OOIDA).

“Two things need to occur before we enter the next up-cycle—demand surges to such an extent that it outstrips available supply, and contract rates and spot rates inverse, meaning spot rates must exceed contract rates,” adds Pugh.

Extreme weather, unpredictable geopolitical landscape and environmental implications. There are three immediate— and constant—threats to the global cold food and beverage landscape that tend to interchange. One of the most immediate though is extreme weather, “which is causing widespread fires, flooding, and drought, leading to agricultural losses, and prompting countries to take an isolationist approach to their food supply, cutting off exports of critical foodstuffs like grains, sugar, rice, and edible oils,” says Julie Gerdeman, CEO of Everstream Analytics.

NOVEMBER/DECEMBER 2023 | FOOD LOGISTICS

15

COVER STORY continued

@Елена Дзюба.stock.adobe.com

In fact, the strengthening of El Niño will play a significant role in the weather across the United States throughout the entire winter season, according to AccuWeather.

A shift in the polar vortex could open up the gates of the Arctic to unleash frigid air across the central and midwestern U.S. late in the winter, resulting in some of the coldest conditions.

And, war and trade restrictions will continue destabilizing food chains and exacerbating global food shortages, Gerdeman says, and increased scrutiny of environmental and labor implications in global food supply chains will cause further disruptions, “as forced, and child labor allegations, ecological degradation, and current and emerging supply chain regulations will lead to production halts and sourcing issues of critical ingredients and inputs,” she says.

Nearshoring, risk mitigation and building resiliency. The top supply chain trends to watch in 2024 include a keen focus on mitigating supply chain risk, reshoring and nearshoring to source reliable production closer to customers, finding backup sources of supply, creating resiliency in the endto-end supply chain, digitizing the supply chain, and keeping an eye on cybersecurity threats, according to Lisa Anderson, president, LMA Consulting Group, Inc. “Since there is heightened risk in the global supply chain due to geopolitics, conflicts over natural resources, ongoing concerns related to the Russia-Ukraine war, South China Seas, new threats in the Suez Canal related to the Israel-Hamas conflict, Panama Canal issues related to drought, and concerns about natural disasters, labor negotiations/labor shortages, and cyber threats, smart executives are taking control,” she adds.

Sustainability. Despite all of the challenges and disruptions the supply chain industry faces, sustainability still remains a key trend for 2024, especially as companies race to deliver on their net-zero commitments by 2030.

“In many sectors, Scope 3 emissions can account for up to 80% of a company’s total emissions. Lowering Scope 3 presents one of the most significant opportunities for decarbonization, and the industry will look for opportunities to gain operational efficiencies,” Gerdeman says. “For exam-

Cold food supply chain companies are using predictive analytics to anticipate disruptions and make better decisions.

ple, our clients are using our analytics to optimize the mode, route, and equipment selection for temperature-sensitive goods, saving money by protecting products from freezing or spoilage, reducing refrigeration costs when cold blankets do the trick, reducing fuel costs, and lowering their carbon emissions.”

In fact, global food and beverage production accounts for roughly 34% of global greenhouse gas emissions (GHG), and according to the Food and Agricultural Organization, the food and beverage supply chain is on track to become the industry’s largest polluter. OXFAM found that the emissions of 10 of the largest food and beverage fleets equaled the total emissions of all Scandinavian countries combined.

Visibility also plays a role in helping supply chains go green.

“Recent years have seen the emergence of visibility platforms, highlighting their ability to foster greater efficiencies, enhance information sharing and (hopefully) lower costs. But visibility has another role to play in enhancing traceability and transparency efforts. There’s huge upside in potentially reducing Tier 2 and 3 emissions, which could comprise up to 80% of total carbon for CPG companies and similar benefits in terms of ensuring supply chains are free of forced or child labor, among other

16 FOOD LOGISTICS | NOVEMBER/DECEMBER 2023

noble goals,” says Tom Madrecki, VP, supply chain, Consumer Brands Association. [Go to https://foodl.me/77d66r43 to watch a webinar with Madrecki on the State of the Industry].

Increasing regulations. New regulations are likely to shape food and beverage supply chains, especially as they relate to environmental, social, and governance (ESG), Bressner says.

“However, the requirements entailed by these requirements will also shape the agricultural and food industries in other countries, especially those in South America, as export markets work towards compliance. Namely, these regulations include the Regulation on Deforestation-free products, the proposal for a ban on goods made using forced labor, and the Directive on Green Claims,” Bressner adds.

In April, the California Air Resources Board (CARB) approved the Advanced Clean Fleets rule, a first-of-its-kind ruling that requires a phased-in transition toward zero-emission medium-and-heavy duty vehicles by 2045. What this means is, fleet owners operating vehicles for private services such as last-mile delivery and federal fleets will begin their transition toward zero-emission vehicles starting in 2024.

Other regulations with Jan. 1, 2024, compliance dates include:

www.foodlogistics.com

Faster and More Accurate Warehouse-to-Store Delivery

DUO LIFT

Rehrig Pacific revolutionizes warehouse-to-store delivery with innovative solutions specifically designed to meet the needs of the Food Service Industry. Our one-of-a-kind powered lifts and sleds increase driver retention and job satisfaction by helping drivers get their job done faster, safer, and more efficiently than ever before.

HYBRID SLED

Learn more at rehrigpacific.com

COVER STORY continued • • •

from last year, according to a new study by the Association for Supply Chain Management (ASCM).

State of transportation The driver shortage still exists, diesel fuel costs are still on the rise and U.S. container imports continue to experience an uptick month-over-month.

But, it was the UPS-Teamsters labor negotiation dispute that set a chain reaction of supply chain disruptions.

“There are obvious lessons to be learned from the UPS and the Teamsters dispute earlier this year. A lot of businesses now understand the need to diversify and manage their risk, and that trend will definitely continue into 2024,” Leigh says. “We’ve seen a big demand for multi-carrier management technology over the past few years; where previously the focus of most projects was on speed; now we see attention shift to capacity planning, quicker onboarding of new carriers, and the mitigation of risk to avoid missing out on profitable consumer revenue.”

Other strikes that created a ripple effect of disruptions was the port strike at International Longshore and Warehouse Union (ILWU) Canada.

“As union-supported labor action gains more ground, especially on the heels of the ILWU win, further strike action by transportation and logistics workers (including railway and airport workers) will likely occur,” Gerdeman says. “The ongoing shortage of truck drivers has been well documented and will continue to make it increasingly difficult to get products from ports to store shelves and drive up prices, as will bankruptcies like Yellow Corp. Prolonged issues with shipping through the Panama Canal will continue to disrupt the transport of dry bulk goods such as grains and soybeans well into 2024.”

The Yellow Freight bankruptcy also created a ripple effect on the industry, one that is still somewhat being felt.

“Customers had to scramble, opportunities arose for competitors, and the supply chain evolved,” Anderson says. “Similarly, the threat of a potential rail strike and West Coast port strike caused customers to transition to alternate modes of transportation and pursue alternate routes. The same is occurring with the UPS strike and the

18 FOOD LOGISTICS | NOVEMBER/DECEMBER 2023

@Андрей Журавлев.stock.adobe.com

Advanced Clean Trucks (ACT) Advanced Clean Fleets (ACF) Zero-Emissions Powertrain Certification • Zero-Emissions Transport Refrigeration Unit (TRU) What’s more, beginning Jan. 1, 2024, trucks must be registered in the CARB Online System to conduct drayage activities in California. Legacy (non-zero-emissions) trucks must register by Dec. 31. Starting in 2025, trucks that exceed their minimum useful life will be removed from the system. Also, starting Jan. 1, 2024, new additions to the registration system must be zero-emissions trucks. And, beginning in 2035, all drayage trucks will be required to be zero-emissions.

“To prepare, fleets should be evaluating the vehicles in their fleet today to determine which vehicles and locations are best suited for electrification, and working with manufacturers and utilities to ensure vehicles and infrastructure can be deployed together,” says Alberto Larios, CARB public information officer.

Company culture. One trend undergoing a severe uptick across all supply chain categories is focus on company culture, implementing diversity and inclusion (D&I) programs and nurturing legacy employees.

This is being done through continuous education and enforced worker safety measures. In fact, workplace cultures strong in D&I have been linked to increased productivity, and companies in commercial freight transportation are increasingly formalizing D&I policies, according to the 2023 WIT Index, developed by the Women In Trucking Association (WIT).

For example, QAD Redzone launched Redzone University, an online training platform designed to certify frontline operators, supervisors and leaders in the use of the QAD Redzone Connected Workforce solution.

The Next Generation in Trucking (NGT) Foundation will launch a first-of-its-kind NGT Curriculum Companion to support high school commercial driver’s license (CDL) programs nationwide.

What’s more is, salaries for supply chain professionals continued to rise, with a median income of $98,570, including base and additional compensation, which is up 3%

According to BSI’s Supply Chain Risk Insights Report 2023, food and beverage products were the most stolen products in 2022.

UAW strike as supply chains are moving to account for these types of issues.”

Shipper costs and performance levels are in a better place than peak pandemic panic, Madrecki says, “but we aren’t out of the woods just yet. The underlying issues in terms of labor scarcity remain, as do issues like sagging rail performance and lack of efficiency at ports relative to international peers. ‘Chugging along’ might be the most succinct descriptor.”

State of e-commerce E-commerce in grocery didn’t really become a thing until COVID-19 forced several supermarkets and grocery retailers to create a B2C arm of their business almost overnight.

Fast forward to what will be 4 years later, and the rise of e-commerce in grocery is here to stay.

“Across the food industry, retailers, manufacturers, distributors and delivery services have benefitted from this wave of demand in e-commerce and trends indicate that demand will only grow,” says Olson.

“The increase in e-commerce sales cements the need for integration of software to fulfill orders, reduce shipping costs, optimize shipping routes and improve visibility for the customer. The popularity of e-commerce is not only its availability but its visibility and traceability of the supply chain, which is made possible through technology. As e-commerce continues to rise, so will organizations’ and consumers’ dependence on software to monitor, integrate and predict outcomes.”

Plus, demand for new channels and new products remains strong, Madrecki says.

www.foodlogistics.com

“The broad theme here is added modal complexity and increasing levels of complexity overall across supply chain distribution patterns. That’s a bigger, arguably more impactful philosophical shift that supply chain executives will be forced to reckon with,” he adds.

Similarly, B2B channels are growing.

“For example, cold chain needs will explode as computer chip capacity comes online with the expansion of manufacturing with the CHIPS Act,” says Anderson. “Thus, cold chains are expanding at a rapid rate and will continue to thrive in 2024. Cold storage is limited, and even though there are inflationary pressures escalating the cost to build cold storage facilities, growth will be robust. Innovation will be essential to meeting these needs in a way that will provide customer value in a sustainable and profitable manner in 2024.”

On the other hand though, the demand for D2C cold chain and grocery “waned nearly as rapidly as is waxed, as customers returned to in-store shopping to a great (though not equal to pre-pandemic levels) degree,” Bilecky says. “Now, however, cold chain and grocery providers have a preview of what life will be like with increased D2C demand and are identifying the best means to meet that demand as it inevitably grows in the future.”

Case in point: The U.S. online grocery market declined 3.1% in September vs. last year, ending the month with $7.5 billion in sales, according to the latest monthly Brick Meets Click/Mercatus Grocery Shopping Survey. Declines in order frequency and spending per order contributed to the drop while an

expanded base of monthly users softened the slip in overall sales and signaled continued interest in buying groceries online.

State of software and technology

As a result of the uptick in e-commerce channels, the last-mile underwent its own growth within the cold food chain channel.

From route optimization, driver apps, traceability functions, track-and-trace in real time, predictive analytics and even GPS tracking, “the next iteration of technology will take the complexity of a multi-mode, multi-channel network and internalize it, making decisions using AI and other technologies that will optimize spend and

Speed and Service We’re already known for our operational excellence and worldclass customer service. Now the Port of Long Beach is expanding rail, electric and digital infrastructure to increase speed to market and weather changes in the supply chain.

@MaksymYemelyanov .stock.adobe.com

Demand for new channels and new products remains strong.

www.foodlogistics.com

NOVEMBER/DECEMBER 2023 | FOOD LOGISTICS

19

COVER STORY continued maximize outcomes,” says Leigh. “This means dynamically choosing between modes and channels to cope with consumer demand and flex up or down the capacity of the network. The best tools are starting to take entire batches of daily demand and optimize across channels to plan and execute tasks while still respecting the consumer promise. This allows retailers, grocers, and carriers to focus on their own brand differentiation while still maximizing the bang for their buck in transport spend.”

Automation is also critical.

“Time-consuming operations, like inventory purchasing and asset maintenance orders, can be automated to reallocate employee time to focus on more creative and higher value challenges. When organizations automate repeatable tasks, they not only increase productivity but also make jobs at their facilities more attractive to the next generation of workers, who see technology as core to their future and the future of any business,” says Bresler. “By leveraging smart manufacturing technology

to automate processes, cold food and CPG companies can extract data from their operations and assemble actionable insights to seek opportunities for profitable growth and transform at pace, despite workforce uncertainties. Technology is also helping the industry accelerate their agility and competitive differentiation, serving as an advantage for manufacturers to improve quality, agility, innovation and attract the next generation of talent.”

And, the use of software that leverages these other emerging technologies such as AI, cloud computing, robotics, IoT and ML is critical to the growth of the cold food supply chain. Doing so automates processes, tracks temperature and shipments and provides visibility to the what, where, why and how of every cold chain product.

However, technology is just a small component of the overall picture.

“While there is a strong focus on real-time in-transit visibility for high-value and temperature-sensitive goods, very little can be done when something goes

wrong in transit. While there are opportunities to take corrective actions and avoid a temperature excursion, success depends on many factors, and in practice, is very challenging,” says Gerdeman. “The real value add of this technology is in enabling the wireless download of the environmental conditions experienced in transit. It is common to find that the time and temperature data is never downloaded. It is simply too time-consuming to locate the monitor in the shipment and physically initiate a download of the data. This is particularly true in the food sector. Unless the monitor is alarmed, the data collected by the monitor is never downloaded and stored. Adopting wireless technology guarantees that the full-time and temperature graph will be available because the manual downloading process is virtually eliminated.”

State of sustainability A main focus for many companies in the cold chain is how to produce and transport temperature-controlled products in the

Plex by Rockwell Automation

The growing adoption of digital technologies helps to improve efficiency, visibility and traceability.

20 FOOD LOGISTICS | NOVEMBER/DECEMBER 2023

www.foodlogistics.com

most efficient manner possible. This entails everything from reducing carbon emissions to revamping packaging materials.

“With ESG regulations up 155% globally, regulation overall will continue to shape supply chains in the coming year. Within the EU, companies should not only be aware of [these] regulations but also the potential Corporate Social Responsibility Due Diligence Directive and the European Green Deal, which obligates non-financial disclosures aligned with the Task Force on Climate-Related Disclosures reporting standards,” says Jason Willoughby, business intelligence analyst, BSI. “For instance, in the U.S., regulatory bodies such as the Federal Trade Commission (FTC) and the Environmental Protection Agency (EPA) have Green Guides, which were first issued in 1992 and are updated periodically, to help marketers avoid making unsubstantiated environmental claims that mislead consumers. Compliance with these types of regulations can be crucial to bridging the trust gap and ensuring consumers have accurate information about the products they purchase.”

Implementing visibility in all facets of an organization also aid in achieving most sustainable goals.

“Visibility is the first stop on the route to reduction, and in the last mile, this could take several forms. Route optimization is a great first step, enabling retail businesses to reduce their carbon footprint on a delivery-by-delivery basis and empowering quick results. Of course, green vehicles such as bikes can be used in city centers. However, fleet electrification for longer distances will feel like a bigger commitment, requiring a huge investment made over time,” says Leigh.

What’s more is, In the United States, the Security and Exchanges Committee (SEC) is considering certain regulations on supply chain sustainability, such as greenhouse gas emissions, according to Olson.

“This will force businesses to adapt to these increasing regulations. This could lead to a greater use of technology to monitor and inform businesses of climate related sustainability goals,

www.foodlogistics.com

especially to better orchestrate supply chains to optimize transportation routes, reducing food waste and fuel consumption,” Olson adds.

Carbon and emissions data is also becoming increasingly important “in mode and routing decisions, and carriers providing lower carbon equipment and transport

will have a competitive advantage,” says Gerdeman. “Governments worldwide are adopting legislation to ensure businesses can’t turn a blind eye to exploitation in their supply chains. We see this with the UK Anti-Slavery Act, the U.S. Uyghur Forced Labor Prevention Act, known as UFLPA, the German Supply Chain Act, the Japanese

INNOVATION THAT DELIVERS FROM JACKSONVILLE TO SAN JUAN

Trust your tempsensitive goods to the trade’s most innovative fleet.

With our continued investment in cutting-edge equipment, including state-of-the-art reefers,GPS tracking technology, and CoolConnect Service, we have the tools in place to ensure the integrity of your cargo from the port to its final destination.

PROUD TO SERVE PUERTO RICO

877.775.7447

TOTEMARITIME.COM

NOVEMBER/DECEMBER 2023 | FOOD LOGISTICS

21

COVER STORY continued

@metamorworks.stock.adobe.com

New regulations are likely to shape food and beverage supply chains, especially as they relate to ESG reporting.

National Action Plan, and the upcoming EU Supply Chain Act. These regulations include due diligence obligations to counter all forms of forced labor. They hold companies responsible when exploitative labor practices are found anywhere in their supply chains.”

However, supply chain sustainability isn’t just about reducing tailpipe emissions; it also pertains to the products being transported and how those products move from Point A to Point B. “The U.S. wastes 119 billion pounds of food each year. This is an obvious environmental and human issue, but it’s also a business problem. That wasted food equates to $408 billion thrown in the landfill because of surpluses in grocery stores, low crop prices, issues during transportation, and a whole variety of events in foods’ lifecycle,” says Pickett. “In a Flock Freight study released this year, we found that the average shipper had 2,436,137 pounds of product go to waste from damage and lost shipments in 2022. That’s the equivalent of 1 truckload a week per shipper. Effective in 2022, SB1383 requires reducing statewide disposal of organic waste 50% by 2020 and 75% by 2025 in California. It also required grocery stores, food wholesalers, hotels and restaurants to recover at least 20% of disposed edible food for human consumption by 2025. It’s time for supply chain partners to think ahead and contribute to reducing food disposal to help their customers cut costs and comply with emerging state and federal regulations.”

What’s to come in 2024?

While 2023 may have been the Year of Bottlenecks, 2024 opens the door to longevity, peace and prosperity (see page 4).

Yet to achieve those elements, companies must be more proactive, more agile and more forward-thinking.

“Instead of being reactive, forward-thinking executives are making the shift to being proactive. Thus, they are setting up a resilient supply chain with the ability to scale up/ down quickly, utilize backup sources of supply, alternate logistics and transportation providers and routes, and educating a cross-functional workforce. They are also rolling out proactive and predictive demand and supply planning programs such as SIOP (Sales Inventory Operations Planning), forward positioning of inventory and capacity, and predictive analytics. As no client has enough highskilled talent, the best organizations are automating, digitizing, and using robotics, autonomous vehicles, artificial intelligence, IoT and the metaverse (AR/VR) to best utilize limited resources while supplying customer needs,” says Anderson.

Furthermore, “supply chain leaders today must not only be ‘old school’ supply chain experts to drive operational efficiencies and results, but embed themselves within the enterprise, understanding that product development, sales, go-to-market strategy and other facets of the business are just as much ‘supply chain’ as anything in their stock job description,” adds Madrecki.

22 FOOD LOGISTICS | NOVEMBER/DECEMBER 2023

“Now more than ever, supply chain executives must be developing the resiliency and reflexes to respond to anything.”

Supply chain leaders also need to become curious, says Gerdeman.

“We must foster cultures of curiosity and be open to using data and technology to dig more deeply to produce the creative solutions needed for the increasingly complex and multi-faceted problems we face.

Leading companies are shifting their supply chain tracking and management solutions toward integrated global solutions over previously siloed regional systems. This will give them visibility into the entire network and the ability to understand and mitigate the risks that could impact that network both upstream and downstream. This endto-end perspective also gives them a view of opportunities to optimize operations, gain a first-mover advantage, and improve ESG performance, ultimately creating more resilient, sustainable supply chains worldwide,” adds Gerdeman.

Collaboration is also crucial, according to Leigh.

“Technology vendors, expert consultancies and carriers all needed to ensure an efficient and successful delivery ecosystem that can adopt to ever-changing demands in the industry,” he adds.

Because supply chains are constantly evolving, supply chain companies are encouraged to make the time and commit the resources and financial support/effort to make improvements within the supply chain, says Bilecky.

“I think we can all agree a day in the life of supply chain or logistics is never the same and something is always on fire. While no one can expect a company to halt their operations to look seriously at improvement opportunities, the classic quality mantra of ‘right first time’ has significant benefits vs. continuing to apply temporary, band-aid type fixes. Companies need to strike a fine balance that helps them remain competitive while also preparing them for the future,” Bilecky adds.

2024 is the Year of Hope. With the help of some supply chain visibility, sustainable measures, more focus on people and the ability to pivot at a moment’s notice, 2024 is anyone’s and everyone’s game to succeed.

www.foodlogistics.com

3PL/COLD CHAIN

BY ALEXIS MIZELL-PLEASANT, MANAGING EDITOR

@Елена Дзюба/.stock.adobe.com

Technology-driven transporation industry.

WHAT’S NEXT: A 3PL TRENDS OUTLOOK FOR 2024

I

n the world of logistics and supply chain management, the role of a third-party logistics (3PL) provider is a necessity. As we look ahead to 2024, the 3PL industry is poised for significant transformation, with a convergence of advanced technologies and innovative approaches. This year has been a whirlwind of supply chain invention set to shape the way companies move forward.

www.foodlogistics.com

AI-powered efficiency Artificial intelligence (AI) is shaking up every part of the logistics process. The use of AI algorithms for demand forecasting, route optimization and real-time tracking is enhancing supply chain visibility and efficiency. 3PLs are harnessing AI to make data-driven decisions, reduce operating costs and improve service quality.

Machine learning algorithms can predict

demand patterns, allowing companies to stock inventory strategically and ensure products are readily available when needed.

Talk of the use of tools like ChatGPT in the space is ongoing. According to Priyesh Ranjan, CEO of Vorto, “the dynamic and interconnected supply chain forces constant communication between shippers, carriers and suppliers for ordering

NOVEMBER/DECEMBER 2023 | FOOD LOGISTICS

23

3PL/COLD CHAIN continued products, scheduling appointment times, communicating with the carrier about delivery, solving for unpredictable but inevitable problems that arise in transit and communicating with the shipper and the receiver about delivery,” says Ranjan.

And it’s with this assumption that ChatGPT and similar AI tech could be a growing tool for dealing with dynamic communication and problem solving in a quick capacity.

Warehouse automation and more The rise of e-commerce and the demand for faster deliveries have pushed 3PL providers to adopt warehouse automation technologies. Robotics, automated conveyor systems and autonomous forklifts are streamlining operations and increasing the speed and accuracy of order fulfillment.

Practical sustainability The environment will remain a priority in 2024. Electric and hydrogen-powered vehicles, as well as eco-friendly last-mile delivery solutions, are up to bat in an effort to improve the carbon footprint of logistics operations. 3PLs are integrating these practices to meet the demands of eco-conscious consumers and adhere to stricter environmental regulations.

As Polakoff describes, 3PLs are reviewing their carrier network to see if

any carriers are moving to EV trucks or to trucks that use alternative fuels.

For example, Nexterus runs carriers through a list of qualifying questions that includes analytics and KPIs, their on-time delivery ratio and carbon footprint.

“So even if the carrier was going to move to more environmentally friendly transportation, the carrier would have to meet our stringent requirements for excellent customer service and value.

However, if the shipper requires us to secure a carrier that is using more environmentally friendly transportation, then we can do that,” says Polakoff.

There are pitfalls to electrification that should be considered. Charging is still a limited infrastructure and vehicle ranges vary—both major hurdles in transportation. Last-mile may be the best space for EVs to make their mark. However, Polakoff says, specialized fleets, such as those for refrigerated transport or heavy cargo, are often not electrified because the technology just hasn’t advanced enough.

Electric vehicles are just one facet, however. Schultz says another strategy for the time being is moving inventory as

@TAW4.stock.adobe.com

Kevin Schultz, president and co-founder of The 357 Company, explains that at the warehousing level, these types of technology are extremely important and increasingly play a more involved roll.

“High labor costs, coupled with a scarcity

of willing workers, are driving companies to adopt this technology even sooner than they initially planned,” says Schultz.

The use of automation not only reduces labor costs but also minimizes. Today, Ryan Polakoff, president of Nexterus, says 3PLs can leverage these technologies, such as automated sorting systems, autonomous vehicles and robotic material handling to streamline processes, reduce human error and improve order fulfillment times, and this equipment is often more accurate and lends itself toward a reduction in errors, lower product damage and improved customer satisfaction.

Warehouse automation increasing efficiency.

24 FOOD LOGISTICS | NOVEMBER/DECEMBER 2023

www.foodlogistics.com

@panaphat.stock.adobe.com

Tech and new ideas taking shape in global logistics.

close as possible to its final destination to decrease the cost and time for the final mile. Nearshoring and reshoring will continue to grow in priority through the next year, offering sustainable practice and efficiency when disruptions arise.

Growth in emerging technologies Blockchain and Internet of Things (IoT) are expected to continue the transformation of transparency and traceability in 3PL. Sensors and RFID tags provide real-time information on the exact location and condition of the goods in transit. These devices can be paired with transportation management systems (TMS) to keep ETAs updated while tracking for any issues or delays.

“Some IoT devices monitor tempera-

www.foodlogistics.com

ture and humidity, which can help ensure conditions are correct for shipping goods that would be affected by deviations of these condition, such as food or pharmaceuticals,” says Polakoff. “IoT devices can provide proof of delivery and condition upon receipt, reducing disputes and improving accountability. IoT devices can improve security of the goods in transit by alerting us to unauthorized access to the vehicle.”

In the warehouse, these advancements in technology are initially being adopted and will then slowly branch into the transportation side of the business, says Schultz, describing that transparency and one source of truth for paperwork and historical documentation would be incredibly helpful for highly regulated goods in the food sector.

“A strong 3PL usually has great relationships with a robust, fully vetted partner network that offers the flexibility and speed to meet the needs of shippers for fast, efficient urban, suburban, and rural deliveries,” says Schultz. “3PLs are also seriously exploring how drones can be integrated into the mix for last-mile deliveries. Those strong 3PLs are building their own proprietary technology to provide shippers with full viability and data on which to make informed decisions.”

If 2023 was the cusp of a transformation for 3PLs, 2024 will be the era of implementation. The integration of AI and warehouse automation will enhance efficiency and accuracy, while emerging trends in transportation will solidify sustainable practice and the necessity of data and analytics.

NOVEMBER/DECEMBER 2023 | FOOD LOGISTICS

25

TOP SOFTWARE & TECH AWARD

BY MARINA MAYER, EDITOR-IN-CHIEF

HOW AUTOMATION PROVIDES PATH TO EFFICIENCY F rom robotics and warehouse automation to procurement and enterprise resource (ERP) software, warehouse management systems (WMS), transportation management systems (TMS) and supply chain visibility solutions, the supply chain software and technology sector continues to boom. These solutions (and many more) are designed to streamline, optimize and innovate the supply chain and logistics space, and do so by incorporating emerging technologies and a path to efficiency.

What’s more is, revenue in the supply chain management software market is projected to reach $19.25 billion in 2023, according to Statista.

Plus, 61% of respondents to a Gartner survey say technology is a source of competitive advantage.

That’s why, this year’s Top Software & Tech award, traditionally exclusive to just the Food Logistics audience, opened up to the Supply & Demand Chain Executive audience as well to better spotlight new-to-market software and technology solutions.

NEW THIS YEAR: This award is now broken down into two main categories (Small Business <$50 million and Enterprise >$49 million) and then five sub-categories within each main category: Procurement/ERP Software, Robotics; Supply Chain Visibility Solutions; Warehouse Automation; and WMS/TMS Software, with one overall winner from each category.

Of the 123 total submissions, close to 58% pertained to supply chain visibility solutions, followed by WMS/TMS software, warehouse automation and procurement/ERP software at 18% each, and robotics at just 9% of the submissions.

Fifty-eight percent of the entries came from small businesses, under $50 million, and 56% of the nominations focused on new-to-market solutions, with 44% focused on an enhancement to an already existing technology.

The new software/technology solution must have been introduced or gone through a major update between September 2022 to September 2023, and winning submissions were based on the ability to outline in detail the specifics of the software and/or technology solution in the nomination form, including

26 FOOD LOGISTICS | NOVEMBER/DECEMBER 2023

details about its benefits to the supply chain industry, its innovative advantage over the competition, any ESG functionality, etc.

Congratulations to all five of our overall winners, and a special thanks to all those who submitted nominations. Let’s meet the five overall winners.

www.foodlogistics.com

PROCUREMENT/ERP SOFTWARE

Fleet Advantage

Fleet Advantage www.fleetadvantage.com Name of Solution/Technology: EVAN (Electric Vehicle Analytic Navigator) Product Description: Fleet Advantage unveiled EVAN (Electric Vehicle Analytic Navigator), a new EV Life Cycle Cost Analysis Tool within its Total Cost of Ownership Tech Stack that powers advanced analytics and business intelligence. Designed to help U.S. corporate transportation fleets leverage data technology, asset management and flexible financing, EVAN acts upon vehicle obsolescence while sustainably driving down operational costs and increasing profit levels. EVAN helps companies cross the “bridge” to make accurate apples-to-apples comparisons for sound decision making. EVAN takes into consideration various inputs such as equipment cost, charging, cost of energy, cost of diesel, grants, tires, depreciation, etc., and converts them into a cost-per-mile datapoint to determine the total cost of operating an electric vehicle over its lifetime.

Fleet Advantage compared a diesel truck with a BEV truck and looked at life-cycle cost comparisons in Hawaii and Florida.

When taking into account any electric grants, finance costs, forecasted maintenance costs, and expected fuel vs. electricity expenses based on locally calculated data inputs, EVAN was able to determine that a grocery distribution fleet in Hawaii would save approximately $238,528 per unit on a three-year operating lifecycle for a 2024 model-year diesel truck. Projecting a fleet of 100 trucks, these cost savings would exceed $27 million over the three-year life cycle. In the case of the Florida location comparison, when taking into account any electric grants, finance costs, forecasted maintenance costs, and expected fuel vs. electricity expenses based on locally calculated data inputs, EVAN determined that a foodservice fleet in Florida would save approximately $43,609 per unit on a six-year operating lifecycle for a 2024 model-year diesel truck. Projecting a fleet of 100 trucks, these cost savings would exceed $4 million over the six-year life cycle.

Fleet Advantage unveiled EVAN (Electric Vehicle Analytic Navigator), a new EV Life Cycle Cost Analysis Tool within its Total Cost of Ownership tech stack.

www.foodlogistics.com

NOVEMBER/DECEMBER 2023 | FOOD LOGISTICS

27

TOP SOFTWARE & TECH AWARD continued

SUPPLY CHAIN VISIBILITY SOLUTIONS

TransmetriQ powered by Railinc ww.transmetriq.com Name of Solution/Technology: Reporting & Analytics Product Description: TransmetriQ, a Railinc brand, developed Reporting & Analytics, a new comprehensive railcar fleet reporting tool that synthesizes asset location, health, and repair data to provide deeper fleet insights. Reporting & Analytics provides a new visibility tool for shippers of food and other high-volume products and commodities who manage owned or leased fleets of rail equipment. Keeping these fleets in service—rather than sidelined at remote repair facilities—is critical to their safe, efficient, and sustainable supply chain operations. The

In March, Agility Robotics unveiled Digit, the first human-centric, multipurpose robot made for logistics work.

decades of research, development, and scientific breakthroughs in dynamic mobility and manipulation from Agility’s team, allowing it to navigate obstacles with ease and walk on uneven surfaces in different human environments, all while handling and moving objects. Because of Digit’s design and mechanics, it can reach high and low, and assume a crouching position all with dynamic stability that comes with a legged robot. Digit becomes a connective piece to all these islands of automation and is designed to work in the world already designed for humans.

tool was developed through careful research with railcar fleet managers, which revealed a need to more closely monitor equipment and control repair and maintenance costs. With customizable, interactive dashboards and configurable alerts, Reporting & Analytics aids fleet managers in recognizing optimization opportunities and areas of concern.

Shippers and car owners can customize the data viewed in Reporting & Analytics based on their needs, choosing to view tracing reports, health, and/or repair insights. The data provides user-friendly insights so that interested parties can more easily access information related to where repair dollars are being spent, what is driving the spending, and where repairs are occurring. Information can also be used to drive performance improvements and identify problem areas such as frequent failures of specific components.

It provides critical information such as fleet health reporting, component performance analytics, remaining wheelset life, cycle and dwell times, equipment characteristics and other key car insights. Reports & Analytics

28 FOOD LOGISTICS | NOVEMBER/DECEMBER 2023

TransmetriQ, a Railinc brand

Agility Robotics www.agilityrobotics.com Name of Solution/Technology: Digit 4.0 Product Description: In March, Agility Robotics unveiled the next generation of Digit, the first human-centric, multi-purpose robot made for logistics work. Digit is designed from the ground up to go where people go and do useful work safely in spaces designed for people, starting with bulk material handling within warehouses and distribution centers. Digit is multi-purpose -- it can execute a variety of tasks and adapt to many different workflows. A fleet of Digits will be able to switch between applications depending on current warehouse needs and seasonal shifts. Digit is human-centric; it is the size and shape of a human and is built to work in spaces designed for people. As a result, Digit is easy to deploy into existing warehouse operations and as-built infrastructure without retrofitting. Digit incorporates

Agility Robotics

ROBOTICS

TransmetriQ, a Railinc brand, developed Reporting & Analytics, a new comprehensive railcar fleet reporting tool that synthesizes asset location, health, and repair data to provide deeper fleet insights.

also provides out-of-the-box reports and fully customized reporting capabilities.

TransmetriQ worked with customers to identify unusual spending patterns and the repairs that were causing them. Leveraging the best visibility into component life across the North American fleet and using AI and advanced data science, Reporting & Analytics enables shipper owners and leasors of railcar fleets to maximize equipment mileage, minimize maintenance interruptions, reduce maintenance spend and keep cars in service.

www.foodlogistics.com

WAREHOUSE AUTOMATION

Packsize

Packsize www.packsize.com Name of Solution/Technology: X5 Product Description: Packsize’s X5 solution is said to be the world’s first fully-automated erected box system and the most advanced, flexible, efficient and sustainable platform available for the e-commerce industry. The X5 solution produces ready-to-pack, right-sized erected boxes at industry-leading speed. This packaging solution cuts, creases, glues, erects, and labels ready-to-pack, rightsized boxes for automated output onto a conveyor, cart or packstation, streamlining and enhancing packaging production through lean manufacturing. The X5 can also meet high-volume demand for regular slotted container-style boxes, ideal for e-commerce and manufacturing businesses, producing up to 600 ready-to-pack, custom erected boxes per hour, sometimes handling between 2,500-3,000 orders a day.

The X5 also reduces packaging waste caused by oversized boxes, negates void filler like plastic air pillows, reduces shipping emissions, and improves the end-consumer’s overall experience. By right-sizing boxes, companies can minimize their costs and environmental impact associated with over-sized and necessary corrugated cardboard, fitting 66% more boxes on freight and delivery carriers. The X5 also streamlines packaging processes and workflows, and incorporates eight automation features, holding a 99% average machine uptime.

With Packsize right-sized packaging, retailers have eliminated empty space in their shipments, taken 23 million unnecessary truckloads off roads, saved nearly 2 million gallons of diesel, and eliminated over 17 billion kilograms of carbon emissions. For every 1 million square feet of corrugated cardboard used, Packsize customers typically save 40% box size reduction 60% less void fill used 26% reduction of corrugated usage 25 tons CO2 reduced globally.

Packsize’s X5 solution is said to be the world’s first fully-automated erected box system and the most advanced, flexible, efficient and sustainable platform available for the e-commerce industry.

www.foodlogistics.com

Every hour. Every day.

We ship loads of confidence.

Lighten your load and your worries. Partner with Syfan for drama-free shipping delivered with the highest level of reliability. Over 450 professional team members strong, Syfan Logistics ships coast to coast, as well as Mexico and Canada.

Count on your trusted partner. Because when we make a promise, we deliver.

SyfanLogistics.com Gainesville, GA 855.287.8485 | 770.287.8485

NOVEMBER/DECEMBER 2023 | FOOD LOGISTICS

29

TOP SOFTWARE & TECH AWARD continued

PortPro www.portpro.io Name of Solution/Technology: drayOS Automated Terminal Appointments Product Description: In early 2023, PortPro introduced a major update to the drayOS platform with dray OS Appointment Setting, an automated appointment-setting function for ports with terminals running on different systems. drayOS Automated Terminal Appointments eliminates the need for carriers to log into different websites to secure an appointment, as it connects all sites and booking capabilities into one portal. Available in New Jersey-New York, Seattle-Tacoma, Los Angeles-Long Beach, Norfolk, Charleston, Miami, Mobile, and Oakland ports, Automated Terminal Appointments also allows drivers to be connected to many of the major ports and auto book an appointment. Enhancements include container tracking, document management, empty return information, per diem tracking, export container tracking and appointment setting. drayOS Automated Terminal Appointments also offers unprecedented visibility so carriers can see exactly where each

π SHIPPING SUPPLY SPECIALISTS

PortPro

WMS/TMS

In early 2023, PortPro introduced a major update to the drayOS platform with dray OS Appointment Setting, an automated appointment-setting function for ports with terminals running on different systems.

load is with accurate time delivery projections. Automated Terminal Appointments integrates appointment booking directly within a transportation management system (TMS) to save both time and effort. Automated booking features also lead to a reduction in operational costs and elevate customer experience through timely deliveries and reduced delays.

T R AN S F E R LOADS F R O M ON E T Y P E OF PAL L E T TO A N OT H E R .

FOOD SERVICE ESSENTIALS

ORDER BY 6 PM FOR SAME DAY SHIPPING

» Safer, cleaner and faster than other load transfer devices » Enhance safety for warehouse personnel » Category 3 safety compliant » Helps meet FSMA, HACCP and GMP compliance » Helps reduce contamination from entering production areas

COMPLETE CATALOG

1-800-295-5510

1 8 0 0 6 2 8 4 0 65 W W W. LO A DT R A N S F E R . N E T

uline.com

30 FOOD LOGISTICS | NOVEMBER/DECEMBER 2023

www.foodlogistics.com

SECTOR REPORT WAREHOUSING

INVESTING IN COLD STORAGE FACILITIES AND LOGISTICS

Changing dynamics of food distribution The past decade has seen a considerable transformation in the way food is transported and stored. Just-in-time inventory management, a standard practice for years, has given way to a more robust inventory system. This change has been driven by the need to build up inventories, ensuring a reliable and consistent supply of food in the wake of the COVID-19 pandemic. Also, the diversification of food sources and the requirement for safe transportation has led to an increase in refrigerated warehouses.

They provide a buffer against unexpected delays or breakdowns in the supply chain. If a truck breaks down en-route, there must be facilities available to off-load the perishable goods, preventing spoilage and waste.

The role of logistics Effective logistics are the lifeblood of the cold storage industry. Whether it’s refrigerated trucks or rail transport, a well-planned logistics system is essential for the seamless movement of food products. Suppliers and providers within the market play a pivotal role in maintaining the flow of goods and preventing disruptions.

When considering investing in or expanding within cold storage, the importance of logistics is critical. The cold storage sup-

www.foodlogistics.com

@CzintosÖdön.stock.adobe.com

I

n the last decade, cold storage has become a prominent topic of discussion in the realm of commercial real estate and logistics. As the demand for fresh and diverse food options continues to grow, the need for reliable cold storage facilities has never been more pressing. The modern era of food manufacturing and distribution has reshaped the dynamics of moving perishable goods, prompting the rapid expansion of refrigerated warehousing. With significant growth, there are key considerations that need to be accounted for when investing in or expanding existing cold storage facilities.

ply chain is a complex web of processes that demands precision, efficiency, and reliability to ensure the safe delivery of perishable goods from Point A to Point B. The maintenance of these systems is equally critical since breakdowns can result in substantial losses.

Moreover, traceability and monitoring are critical aspects of logistics in cold storage and transportation. See what advanced tracking systems are available to allow for real-time monitoring of products, ensuring they remain within the specified temperature range.

Considerations for cold storage facilities Selecting the right location is crucial for the success of a cold storage facility. Access to reliable and affordable electricity is a top priority, as these facilities are energy intensive. Furthermore, the increasing demand for data centers in the same area adds complexity to the electrical supply equation. Developers and businesses must assess the cost, capacity and reliability of the local electrical grid.

In an era of growing environmental consciousness, it is imperative to incorporate sustainability into facility design and operation. This can be achieved by implementing renewable energy solutions.

Building solar panels onto a cold storage facility reduces operational costs and aligns

with environmental, social, and governance (ESG) principles.

If planning a future expansion, developers and businesses should consider the most efficient and flexible approaches. Rather than attempting to add onto an existing cold storage facility, a parallel structure on additional acreage may offer a more practical solution.

Consider the local labor market, the presence of truck driving schools, and options for outsourcing labor to third-party providers (3PLs). By tapping into their experience and resources, businesses can enhance efficiency and minimize operational risks.

Investing in cold storage is a complex endeavor that demands careful consideration from location and energy costs to environmental sustainability and customer service.

By addressing key considerations, businesses can establish and expand their presence in the cold storage industry.

Scan the QR code to read this column in full: https://foodl.me/z057yb5u

ABOUT THE AUTHOR

BY ERIC VOYLES EVP and chief economic development officer, TexAmericas Center.

NOVEMBER/DECEMBER 2023 | FOOD LOGISTICS

31

SECTOR REPORT TRANSPORTATION

HOW CLOUD-BASED SOLUTIONS TRANSFORM THE AIR CARGO SECTOR

I

Unleashing agility and scalability

The air cargo industry is notorious for its fluctuations in demand. Peaks and troughs in shipping volumes can put immense pressure on legacy systems, leading to inefficiencies and operational bottlenecks.

This is where cloud-based solutions step in, as leveraging cloud infrastructure can offer unparalleled agility and scalability.

Within the cloud, airlines, ground handling agents (GHAs) and other stakeholders can seamlessly adjust their IT resources based on demand. This elasticity ensures that operations run smoothly during spikes in traffic and allows for cost savings during quieter periods.

For instance, consider a scenario where a holiday season leads to a sudden surge in cargo shipments. Using a cloud ecosystem, airlines and cargo handlers can effortlessly scale up their resources to accommodate the increased workload, all without disrupting ongoing operations.

Redefining collaboration and accessibility

The air cargo industry thrives on collaboration between various stakeholders, including airlines, ground handlers, customs authorities and freight forwarders. Traditional on-premises systems often hinder real-time information sharing due to their inherent limitations. Cloud-based solutions bridge this gap by enabling seamless collaboration

32

@mariakray.stock.adobe.com

n today’s fast-paced and interconnected world, the air cargo industry plays a vital role in global trade and logistics. To meet the growing demands and challenges of this dynamic industry, innovative technological solutions are imperative. The introduction and rollout of cloud-based solutions is and will continue to be a game-changer transforming the air cargo sector.

Here’s why utilizing a cloud-based solution is the most secure way of integrating and operating within the air cargo landscape. and accessibility across the ecosystem.

Within a cloud ecosystem, data is stored centrally and securely in the cloud. This allows authorized parties to access and update information from any location and device with an internet connection. For instance, imagine a situation where a cargo shipment’s priority needs to be modified due to unforeseen circumstances. Through a cloud solution, either directly or via an integration software if permitted, this can be updated and all relevant parties can be instantly notified, minimizing disruptions.

Fortifying security measures

Security is paramount in the air cargo industry, where sensitive information such as shipment details, customs documentation, and compliance records must be safeguarded. Contrary to common misconceptions, cloud-based solutions offer robust security measures that often surpass those of traditional systems, as they can provide continuous monitoring and regular security audits.

In fact, the cloud’s centralized security approach often enhances protection against data breaches, as opposed to scattered on-premises solutions.

Enhancing analytics and insight capabilities

In today’s data-driven world, the ability to extract meaningful insights from the

FOOD LOGISTICS | NOVEMBER/DECEMBER 2023

vast amount of cargo-related data leads to a competitive advantage. Cloud-based solutions empower the air cargo industry with advanced analytics and predictive capabilities.

Most notably, cloud-based solutions can capture, process and display an abundance of historical data. This aids airlines, cargo handlers and their partners in optimizing their operations and making better informed decisions.

For example, utilizing historical data, the system might predict that during a certain time of year, there will be increased demand for perishable goods to specific destinations. This insight can guide cargo planning and resource allocation.

Embracing innovation and future-proofing

From autonomous cargo handling, through predictive planning based on AI-driven solutions, cloud-based solutions serve as the foundation for embracing these innovations and future-proofing operations.

ABOUT THE AUTHOR YUVAL BARUCH CEO, Hermes Logistics Technologies.

www.foodlogistics.com

SECTOR REPORT SOFTWARE & TECHNOLOGY

MAKING THE MOVE TO MODERN WAREHOUSE MANAGEMENT

Deployment The main difference in how a system is deployed comes down to its server location. An on-premise WMS is installed locally on company servers or hardware.

A cloud WMS is hosted and maintained in the cloud by a service provider, and users access the software through a web browser or a dedicated application.

Cost of ownership and scalability Cloud WMS are usually billed according to subscription terms, often annually or quarterly. On-premise software is typically purchased via a more expensive license agreement, but the tradeoff is that the expenditure is completed once instead of multiple times per year. An on-premise WMS may have a higher upfront cost, but if used long-term, it can wind up being more affordable than a cloud subscription.

Both options are well suited to scale to accommodate more warehouses as a company grows, but may require an additional expense. With cloud systems, a

www.foodlogistics.com

@GenerativeART.stock.adobe.com

A

t their core, warehouse management systems (WMS) are software solutions used to manage complicated operations, streamline processes and increase warehouse efficiency. Typical functionalities include inventory management, order fulfillment, labor management, slotting optimization and reporting.

WMS applications are a key part of the modern supply chain’s digital transformation prompted by economic trends.

Given today’s challenges, it isn’t surprising that WMS rank as the most implemented technology among third-party logistics (3PL) providers, with 87% of executives interviewed responding that they had implemented it this year. Whether warehouses should use a WMS is no longer in question. Instead, the question has shifted to whether a warehouse should implement a cloud WMS or an on-premise WMS.

company may need to switch to a higher subscription tier. With on-premise, a company may need to purchase more licenses.

Customization and configurability An on-premise WMS can typically be customized to the specific needs of a warehouse through its native app by modifying the code. For example, a company may want to add unique data fields like SKUs, product attributes, or expiration dates during implementation.

If a company wants to have a system in place before peak season, the implementation should be completed by summer.

By contrast, cloud WMS software usually consists of out-of-the-box (OOTB) solutions that perform generally accepted best practices for warehouse management. Although both options require some level of configuration, OOTB solutions typically have faster implementation timelines than on-prem. However, customizations cannot be made during implementation through the native application as with an on-premise solution.

Software updates and maintenance Does your IT department have the time and resources to maintain the software?

With an on-premise WMS system, the customer must track system updates and install on their own time. On the other hand, cloud software updates are rolled out automatically by each system provider.

Security A common misconception is that cloud systems are less secure than on-premise systems. The truth is that the opposite can be true. Organizations are responsible for maintaining their own on-premise software updates, and installing updates is critical for maintaining security.

Making the move Whether you opt for the dependency of the cloud or the tailored customization of an onpremise system, it will also be important to look into the technical functionalities each solution offers.

Scan the QR code to read this column in full. https://foodl.me/xcy17oa6

ABOUT THE AUTHOR JASON ESPOSO business development VP, Gaea Global Technologies, Inc.

NOVEMBER/DECEMBER 2023 | FOOD LOGISTICS

33

SECTOR REPORT SAFETY & SECURITY

HOW AI AND GOOD JUDGMENT REDUCE RISK OF CARGO THEFT

Detecting fraud at scale A load board or digital freight broker can have millions of trucks and loads on its network and generate thousands of login events every day. The challenge is to stop bad actors without creating friction for legitimate users wanting to access a network.

This is where artificial intelligence (AI) and machine learning come in.

Like a detective, an AI engine is trained to evaluate patterns and signals. A well-built risk assessment engine can continuously collect and analyze millions of behaviors for suspicious activity like bots, duplicate accounts, and risky IP addresses and devices.

When it sees an activity that doesn’t match up with a broker or carrier’s past behaviors, it can stop that login and take action as instructed.

Human factors The fact remains that bad actions by

@adam121.stock.adobe.com

G

reat detectives have a keen understanding of human behavior and can recognize patterns that don’t add up.

The trouble is investigators only start looking for clues after the commission of a crime. If you’re staring at an empty dock where a loaded trailer should be, your freight will be long gone by the time authorities take up the case.

What’s needed is a way to detect suspicious activity and block the bad guys before a load is booked.

This is important when talking about identity-related fraud like double brokering, where scammers present themselves as legitimate brokers and carriers for the purposes of cargo theft. It’s easier to fool people into giving up a username and password than it is to hack into an account.

With a stolen username and password, the scammer can post loads or trucks in the name of a legitimate broker or carrier, leading to everything from fuel-advance theft to double brokering, stolen loads, and unforeseen liability.

participants in the logistics value chain are perpetrated by bad actors who prey on the naivete and poor judgment of other human beings. Here’s some recommendations: Know your contract. Most transportation service agreements prohibit double brokering. This differs from co-brokering, where multiple brokers work together to move a load. Typically, a co-brokering contract will outline what each party can expect of the other, including carrier vetting qualifications, insurance requirements, and payment terms.

Establish a recovery network. If someone steals a load, who do you call? Who has jurisdiction over freight that doesn’t belong to the carrier or broker and may not even belong to the shipper; was picked up in one location and meant to be delivered to another; or was re-brokered without permission? Knowing how to talk to law enforcement and an insurance carrier can help get reporting and recovery efforts underway.

Spread awareness. Consider all the people who have access to your organization’s network. Salespeople, administrators, executives, truck drivers, managers—none is directly responsible for security, but each can be a target of scammers trying to steal personal or company information. Provide the training and information needed to be vigilant.

34 FOOD LOGISTICS | NOVEMBER/DECEMBER 2023

Validate your partners. Verify that the person you’re dealing with is a bona fide representative of the broker or carrier.

Compare the caller ID to the company’s contact information. If necessary, verify the business’s authenticity with a return phone call to the phone number listed by the FMCSA, and ask to speak with your contact by name.

Empower your gatekeeper (literally).

Confirm that the name and numbers on the truck that shows up to load are the same as the one you contacted to haul it. Recording the tractor and trailer plate information before it enters a distribution center or facility will assist in identifying the actual carrier.

Request pictures of the truck and trailer, then compare and verify the information on the carrier packets.

Identity theft, double brokering, and load phishing scams are long-time but growing problems in the freight industry. With AI working in the background, human-powered detective work still matters.

ABOUT THE AUTHOR SATISH MARIPURI chief executive, DAT Freight & Analytics.

www.foodlogistics.com

SECTOR REPORT WORKFORCE DEVELOPMENT

DRIVER COMPLIANCE MANAGEMENT FOR COLD CHAIN TRANSPORTATION AND LOGISTICS

www.foodlogistics.com

@MoiraM.stock.adobe.com

I

f you’ve ever read all 44 pages of the Code of Federal Regulations 49CFR391.2 on driver fitness requirements, and still not sure what you need to do to keep your fleet compliant, you’re not alone.

As much as 95% of audit violations are related to recordkeeping, and it’s not just a matter of figuring out how to check all the boxes and fill in the blanks. There are numerous steps and they must be done in a very specific order.

Carriers servicing the food supply chain face the challenge of meeting compliance requirements every day. Compounding the problem is that annual driver turnover is still hovering between 80-120%, on average. It all adds up to a recordkeeping nightmare, even for drivers fully compliant and ready to haul loads.

The first hurdle is defining the internal processes for driver onboarding and compliance. A good place to start is to identify the roadblocks.

How is the HR team handing off a newly hired driver’s credentials to the safety team for compliance processing? Are you using a slow and error-prone process to track and manage compliance? Are you spending a considerable amount of time gathering documentation from different providers using multiple systems and portals?

An understanding of driver fitness compliance regulations is essential as well.

Equally important for carriers in the food supply chain, including private and for-hire fleets, is maintaining compliance records. In fact, a key part of any audit is a review of the step-by-step process and documentation of compliance activities.

Along with up-to-date driver compliance information, auditors want to know that a system of internal processes is in place.

Something as simple as mismatched dates can be seen as red flags.

While electronic and automated driver

compliance is not a requirement, even the best and most accurate manual and paperbased processes are significantly more time consuming. Most FMCSA audits begin with a digital document request, requiring carriers to upload compliance documents to a FMCSA web portal withn 21 days of the notice. Carriers operating with paper files must find a way to scan, organize, and upload the required documentation prior to the deadline or face a potentially more intrusive on-site audit. Today, advanced compliance management solutions streamline those processes while ensuring accuracy and adherence to regulations.

Maintaining paper files often means relying on manual reminders for updating expiring documents and renewing certifications. Digital driver qualification files, on the other hand, offer automated notification systems. Fleet managers receive real-time alerts about approaching expiration dates, pending requirements, or any compliance gaps that need immediate attention.

These platforms facilitate automated driver qualification and compliance and management processes that digitize documents and conduct required preemployment screening, including state and

federal background, and CDLIS, PSP and MVR records checks.

They also enable integrations for importing safety and Hours of Service data and other information from electronic logging devices (ELDs) and the management of drug and alcohol test results.

Driver onboarding is handled very effectively by these solutions as well.

Driver candidates can fill out and submit applications and driver qualification files can be imported seamlessly into the records.

Maintaining accurate driver compliance and qualification records can be challenging, especially for food supply chain carriers with large numbers of drivers. In the end, though, the responsibility is on the carrier to prioritize and streamline compliance processes and minimize risk.

ABOUT THE AUTHOR NIC SALLIS COO, FleetDrive 360.

NOVEMBER/DECEMBER 2023 | FOOD LOGISTICS

35

SFIHT YUOR TNIHNKIG TO MAKE IT HAPPEN

BECAUSE SOMETIMES STAYING IN YOUR LANE SLOWS YOU DOWN. Focus on the road ahead while our team of experts craft a logistics strategy designed to provide visibility, streamline your operations and grow your business.

Throw traditional thinking out the window and take a personal approach to building your supply chain solution with a partner that actually gives a TRUCK.

OUR SOLUTIONS. Domestic Trucking | Intermodal | Drayage Ocean Freight | Cross-Border Logistics International Freight

1.844.TB.SHIPS | Info@TrailerBridge.com