Food Logistics January/February 2020 by Supply+Demand Chain/Food Logistics

Food Logistics

LIFT TRUCK INNOVATION

FLEET MANAGER’S 2020 FORECAST ®

Global Supply Chain Solutions for the Food and Beverage Industry

HOW WAREHOUSE AUTOMATION INCREASES SPEED TO MARKET AUTOMATION, OPTIMIZATION AND FLEXIBILITY HELP WAREHOUSE MANAGERS BETTER RESPOND TO CONSTANTLY CHANGING MARKETS.

E-COMMERCE WMS TECHNOLOGIES Issue No. 213 January/February 2020

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ON THE MENU

January/February 2020 ISSUE NO. 213 COVER STORY

Warehouses to Focus on Agility, Speed of Goods to Market in 2020 Here’s how automation, optimization and flexibility help warehouse managers better respond to constantly changing markets.

16 FEATURE

TRANSPORTATION

THIRD-PARTY & REFRIGERATED LOGISTICS

When it comes to automation, autonomous vehicle technology is rapidly progressing from concept to application.

Fleet Management Initiatives in 2020

More fleet managers will migrate into a hybrid combination of both traditional scheduled maintenance practices and predictive maintenance.

SECTOR REPORTS

SOFTWARE & TECHNOLOGY

WAREHOUSING

How Today’s Lift Trucks Manage the Heavy Lifting

From automation and robotics to alternative energy and worker safety, today’s lift trucks are more about making employees’ jobs easier and safer.

Paving the Path to Platooning

WMS Trends in Grocery Supply Chain Management

Logistics experts discuss the latest in warehouse management systems for grocery stores in terms of balancing substitution, picking and packing for e-commerce delivery and curbside orders, while maintaining point-of-sale replenishment. OCEAN PORTS & CARRIERS

How Ocean Carriers Embrace New Wave of Emerging Technologies

Discover how AI, IoT, blockchain and other technologies are ushering in improved operations and visibility for ocean ports and carriers.

www.FoodLogistics.com

Cover Photo: Voxware

COLUMNS FOR STARTERS

New Year, New Editor, Same Quality Content

Meet Marina Mayer, the new editor-inchief of Food Logistics, and learn more about the brand’s refreshed website, show-related interview opportunities and what’s to come in 2020, both editorial- and advertising-wise. COOL INSIGHTS

How KeHE Distributors Became Cold Carrier Certified

KeHE Distributors walks readers through the steps needed to become Cold Carrier Certified.. FOOD (AND MORE) FOR THOUGHT

Food & Drug Administration to Regulate Transportation

As the FDA prepares for enforcement in transport, here’s how trade organizations and transportation companies can prepare.

DEPARTMENTS

Supply Scan 12 Food on the Move 41 Ad Index

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WEB EXCLUSIVES

Apply to 2020 Top 3PL & Cold Storage Providers Award https://bit.ly/2TM9uCn Apply to 2020 Food Logistics Green Providers Award https://bit.ly/37g5nCz Food Logistics Accepts Expert Columns, Contributed Content YearRound https://bit.ly/36j0AyR

Published and copyrighted 2020 by AC Business Media. 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 10 times per year in January/February, March, April, May, June, July, August, September, October and November/December by AC Business Media, 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.

FOOD LOGISTICS | JANUARY/FEBRUARY 2020

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www.foodlogistics.com

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FOR STARTERS

FROM THE EDITOR’S DESK

EXPERIENCED B2B EDITOR JOINS FOOD LOGISTICS F Marina Mayer, Editor-in-Chief

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rom sustainability and automation to robotics, blockchain and the Internet of Things (IoT), Food Logistics’ 2020 editorial calendar is chockful of hot-button issues in the food supply chain and logistics industry. And, that’s just what’s scheduled in print. That doesn’t even encompass the many exclusive online-only content we have lined up for the remainder of the year. Think case studies, expert columns, market research reports and more. That’s because with the New Year comes a new editor of Food Logistics, tasked with upholding the same quality content, but packaging and delivering it in a new and improved way. Please allow me to introduce myself. My name is Marina Mayer, and I am the new editor-in-chief of Food Logistics. I’ve spent the last 8 years as editor-in-chief of a B2B food supply chain and logistics magazine that also covered food processing, packaging, market trends, food safety, new product development and more. I possess close to 13 years’ editorial experience in the food and beverage space, am used to pounding the pavement at tradeshows and have presented at a handful of industry events (look for me at MODEX, March 10, from 10:30-11:15 a.m. in the Transportation & Logistics Theater). Other fun facts, I will be married for 13 years in April, have two kids (8-year-old daughter and 4.5-yearold son) and despite me working in the food and beverage industry, I’m a pretty picky eater.

Something else cool about me is that I am surrounded by a wonderful editorial and sales staff that is super smart. So smart. And, so eager to bring Food Logistics to the forefront of your news and reading list. But, enough about me; I want to learn more about you—our readers and advertisers. I want to build—and sustain—a long-lasting relationship that involves working together to better support and grow the supply chain and logistics industry. Earlier this year, Food Logistics launched a refreshed website, complete with enhanced navigation, a more modern look and more exclusive online-only content. So, what are some topics you would like us to cover that we haven’t thus far? What are we doing well at? Maybe you’re someone I’ve worked with in other stages of our lives, and just want to say hi? I want it all—the good, the bad, and the ugly. (Remind me in a year how that’s going….) Be sure to download our 2020 media kit and editorial calendar to see what topics we’ll be covering throughout the remainder of the year. Let’s connect at upcoming tradeshows (think MODEX) to see how we can work together. Remember, my virtual door is always open. So, whether it’s a press release, a funny joke, a topic idea or just a friendly hello, be sure to be in touch. While you’re at it, follow us on social media, subscribe to our monthly print issue and look for us at future shows.

DETAILS

Published by AC BUSINESS MEDIA 201 N. Main Street, Fort Atkinson, WI 53538 (800) 538-5544 • www.ACBusinessMedia.com

WWW.FOODLOGISTICS.COM

PRINT AND DIGITAL STAFF Group Publisher Jason DeSarle Sales Associate Brian Hines Editor-in-Chief Marina Mayer mmayer@ACBusinessMedia.com Web Editor Mackenna Moralez mmoralez@ACBusinessMedia.com Business Development Manager Lara L. Sowinski lsowinski@ACBusinessMedia.com Senior Production Manager Cindy Rusch crusch@ACBusinessMedia.com Art Director Willard Kill Audience Development Director Wendy Chady Audience Development Manager Angela Franks ADVERTISING SALES (800) 538-5544 Group Publisher Jason DeSarle (440) 476.9526 jdesarle@ACBusinessMedia.com Sales Associate Brian Hines (647) 296-5014 bhines@ACBusinessMedia.com CIRCULATION & SUBSCRIPTIONS P.O. Box 3605, Northbrook, IL 60065-3605 (877) 201-3915, Fax: (847)-291-4816 circ.FoodLogistics@omeda.com LIST RENTAL Jeff Moriarty, InfoGroup (518) 339-4511 jeff.moriarty@infogroup.com REPRINT SERVICES Brian Hines (647) 296-5014 bhines@ACBusinessMedia.com AC BUSINESS MEDIA Chief Executive Officer Barry Lovette Chief Financial Officer JoAnn Breuchel Chief Digital Officer Kris Heineman Group Content Director Jon Minnick Vice President, Sales & Marketing Amy Schwandt Director of Digital Operations & IT Nick Raether Director of Digital Strategy Joel Franke Published and copyrighted 2020 by AC Business Media. 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 | JANUARY/FEBRUARY 2020

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NetSuite Inc. has acquired IQity’s cloud business. The ﬁnancial terms of the acquisition were not disclosed. Thie acquisition extends NetSuite’s cloud

SUPPLY SCAN

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

Descartes Systems Group announced that Automated Logistics Systems (ALS) is improving real-time shipment visibility and operating eﬃciency through the Descartes MacroPoint solution. “Our core focus at ALS is to deliver an epic experience to the customer with passion and energy, and technology is one of the critical elements helping us to drive this,” says Nick Schaefer, director of sales and operations at ALS. “The Descartes MacroPoint solution is fundamental for us to stay on top of our customers’ supply chains, provide real-time visibility on shipments, and most importantly, identify and communicate exceptions in the logistics process, which is especially vital in the automotive market.” By using the Descartes Macropoint solution, companies of all sizes can eliminate the need for time-consuming and ineﬀective check calls with carriers to determine load location details, streamline transportation operations and improve communication about in-transit freight across the supply chain.

FOOD, BEVERAGE SECTOR GAINS GROUND IN LARGEST U.S. WAREHOUSE LEASES

The food and beverage industry, driven by the expansion of grocery delivery, signiﬁcantly expanded its share of the largest 100 U.S. industrial and logistics leases by square footage last year while the share claimed by e-commerce and logistics companies receded, according to a new report from CBRE. The food and beverage industry accounted for several million additional square feet of the largest industrial leases last year than in 2018, as grocers and distributors continue to build out their supply chains for home delivery. Speciﬁcally, food and beverage companies claimed for 13 of the top industrial leases for a cumulative 13 million square feet, up from nine leases for 8.8 million square feet in 2018. E-commerce companies and logistics companies accounted for 52% of the square footage in the largest 100 industrial leases last year, down from 61% in 2018, CBRE found. Still, e-commerce and logistics remain juggernauts for warehouse leasing, accounting together for far more leases (54 million) and square footage (45 million) last year within the Top 100 than the next-closest category—wholesalers at 18 leases for 15.2 million square feet.

LIDL US TO BUILD $100M DISTRIBUTION CENTER IN ATLANTA

Grocery retailer Lidl will construct a $100 million regional distribution center in Newton County, Ga., that will create 270 full-time jobs. “We look forward to breaking ground on Lidl’s fourth regional distribution center in the U.S. and hiring hundreds of new team members in Georgia,” says Lidl US chairman Roman Heini. “This centrally located facility will allow us to eﬃciently deliver outstanding quality products to our customers at the lowest possible prices and expand our network of stores across the region.” The 925,000-square-foot facility will serve as a regional headquarters and will supplyINFORMATION products to Lidl stores across the state. Construction is expected PRESS to be completed within the next two years. FOR IMMEDIATE RELEASE Date: January 3, 2020

FOOD Lidl USLOGISTICS | JANUARY/FEBRUARY 2020

Tumisu / pixabay

AUTOMATED LOGISTICS SYSTEMS IMPROVES TRANSPORTATION EFFICIENCY WITH DESCARTES MACROPOINT SOLUTION

ONLINE GROCERY SHOPPING STILL RARE IN U.S.

Eighty-one percent of Americans say they never order groceries online, while 11% say they do so at least once a month, according to a study produced by Gallup. Similarly, 88% of U.S. adults never order meal preparation kits containing fresh foods online, while 7% reported they do so at least once a month. For now, Americans are sticking with the traditional ways of getting food: shopping at a grocery store, eating at restaurants and ordering for take-out or delivery. The report found that about seven in 10 U.S. adults purchase food in each of these ways at least once a month. Online grocery shopping is more common among parents and upper-income adults, with 19% of respondents with children under age 18 saying they order groceries online at least once a month, as do 18% of those with annual household incomes of $100,000 or greater. Americans between the ages of 30-49 are also among the subgroups most inclined to get groceries via the internet. Adults who are employed fulltime (15%) are slightly above the national average for buying groceries online. Meanwhile, in-person grocery shopping shows no obvious signs of decline, with the percentages this year similar to those from 2017 and 2018. In-store grocery shopping is by far the most common way Americans get food, with 83% saying they shop at grocery stores at least once a week, including 37% who do so more than once a week. www.foodlogistics.com

media@lidl.us

LIDL TO BUILD FOURTH REGIONAL DISTRIBUTION CENTER AND HEADQUARTERS IN COVINGTON, GEORGIA

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Tumisu / pixabay

It takes more than sound technology and know how to plan and realize the best logistics systems.

For every task, the right solution WITRON‘s storage systems offer a cost-efficient and ergonomic solution for every application across all industries regardless of the branch, whether it is handling large-volume or small-volume articles, whether the article range is small, broad, or inhomogeneous, whether maximum dynamics is required, or a continuous work process is needed. It doesn‘t matter if the products are picked into totes or cartons, onto trays, pallets, or roll containers, or other dispatch units. All warehouse solutions – whether highly automated, semi-automated, or manual – are modular and based on standardized system components.

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About WITRON Since 1971, WITRON Integrated Logistics designs, realizes and operates customized logistics and material flow systems that generate sustainable competitive advantages for its clients. WITRON has all the decisive key elements of a successful project under one roof: logistics design, information and control technology, mechanics design and production, as well as functional responsibility as general contractor for logistics. The WITRON Corporate Group has 3,500 employees worldwide. WITRON’s annual revenue in 2019 amounted to 635 million USD. Aside from it’s headquarters in Parkstein, Germany, WITRON has offices in Arlington Heights, Illinois (USA), Toronto (Canada), Venray (The Netherlands), Stoke-on-Trent (UK), Madrid (Spain), Strasbourg (France), and Singapore.

Be innovative • Be committed • Be successful

EMP (Efficient Mobile Picking)

WITRON Integrated Logistics, Inc. 3721 Ventura Drive Arlington Heights, IL 60004 Phone: +1 847-385-6000 info @witron.com

www.witron.com

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Find all facts and features about our logistics systems under www.witron.com

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BE HONORED FOR YOUR ACHIEVEMENTS! Each year, Food Logistics showcases individual and corporate leaders in the food and beverage industry. Plan now to enter your company — or a cutting-edge client or vendor — in one of these industry-leading recognition programs:

T o a a v

ROCK STARS OF THE SUPPLY CHAIN

CHAMPIONS 2020

n t b F s i i

2020 TOP PROVIDERS

CHAMPIONS AWARD:

ROCK STARS OF THE SUPPLY CHAIN Honoring individuals whose visions are shaping the future of the global food supply chain. Nominations Closed Winners announced in March 2020 issue

TOP GREEN PROVIDERS

n I m e i

Are you a leader in sustainable practices? Share your achievements. Nomination deadline: April 1, 2020 Winners announced in June 2020 issue

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2020

TOP 3PL & COLD STORAGE PROVIDERS

FL100+ TOP SOFTWARE & TECHNOLOGY PROVIDERS

Are you a leading third-party logistics and cold storage provider? Be honored for your achievements.

Showcasing top software and technology providers supporting the global food and beverage supply chain.

Nomination deadline: May 29, 2020 Winners announced in August 2020 issue

Nomination deadline: September 18, 2020 Winners announced in November/December 2020 issue

ONLINE NOMINATIONS OPEN APPROXIMATELY TWELVE WEEKS BEFORE THE DEADLINES LISTED ABOVE. AWARD RESULTS, INFORMATION AND NOMINATIONS POSTED ON:

FOODLOGISTICS.COM/AWARDS Global Supply Chain Solutions for the Food and Beverage Industry

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Nomination dates and issues may change. Consult the call-for-entries email and nomination survey for confirmation

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SUPPLY SCAN

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

GROCERY MANUFACTURERS ASSOCIATION REBRANDS AS THE CONSUMER BRANDS ASSOCIATION

The Consumer Brands Association, formerly the Grocery Manufacturers Association, has officially launched, marking a new era for the consumer packaged goods (CPG) industry and the consumers it serves. The organization will continue to advocate for product affordability; access and innovation; eliminating consumer confusion; and solving large, vexing problems in the marketplace. “The Consumer Brands Association is an entirely new organization with a focused, compelling agenda “FEW INDUSTRIES that establishes the industry as a champion of the IMPACT EVERY billions of consumers it serves daily,” says Geoff HOUSEHOLD Freeman, president and CEO, Consumer Brands AsACROSS THE sociation. “We are on the path to providing the CPG COUNTRY. IT’S industry with a platform and results unlike anything OUR JOB TO it has previously experienced.” HARNESS THAT These interests are reflected in findings from a REACH TO DRIVE new survey of industry executives. The inaugural POSITIVE CHANGE Industry View 2020 shows that the overwhelming — BOTH FOR OUR majority (86%) of CPG executives cite consumer MEMBERS AND expectations as the most influential force shaping FOR THE MILLIONS industry decision-making and long-term success. OF AMERICAN CPG leaders also identified an inconsistent FAMILIES THEY regulatory environment created by state-by-state SERVE EVERY DAY.” policies as their top concern — ranking “complying Geoff Freeman with patchwork state regulations” as the No. 1 issue impacting their business in 2020. The findings also show increasing concerns among CPG leaders regarding transportation costs and growing investment and prioritization around sustainability, echoing the agenda set forth by the Consumer Brands Association.

KNAPP, TAKEOFF TECHNOLOGIES ANNOUNCE MULTISITE ROLLOUT OF MICRO-FULFILLMENT E-GROCERY SOLUTION

KNAPP and Takeoff Technologies confirmed a $150 million, 50-site order that will take their partnership to the next level. Takeoff offers a micro-fulfillment solution that allows grocers to thrive in an online environment. One key element of this design is a new open-shuttle technology that will optimize the space needed for order sorting, while adding flexibility to the overall design and operation of the micro-fulfillment center. “It is extremely exciting to take our partnership between Takeoff and KNAPP to the next level, and deliver on our promise of reliability, affordability and scalability,” says José Vicente Aguerrevere, co-founder and CEO of Takeoff.

PALLETS MARKET SET TO REACH $95B BY 2029

www.foodlogistics.com

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JANUARY/FEBRUARY 2020 | FOOD LOGISTICS

KNAPP/Takeoﬀ Technologies

Significant demand generated from manufacturers and retailers are driving sales of pallets in the global market, according to a study released by Persistence Market Research. Adoption of smart pallets, block pallets and plastic pallets are driving the industry to reach a market value of $95 billion by 2029, as they are boasted to have several benefits over conventional wooden pallets. Demand for plastic and block pallets is largely accounted by the food and beverage industry, which can be attributed to heightening sales of processed food products and increasing need for sustainable cold storage and transportation solutions. The market will also be shaping up with significant increase in the usage of radio-frequency identification (RFID) tags in plastic pallets, robots in processing and handling of pallets and emergence of alternative pallets in the market. The market for pallets is identified to be fairly fragmented on a global level, with leading market players accounting for nearly 8-10% of overall market size as of 2018. Several market players are coming up with technological innovations in pallet production to gain a higher consumer base. Companies are focused on new launches and strategic long-term partnerships to sustain their revenue flow in the pallets market.

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FOOD ON THE MOVE

LOGISTICS TRENDS IN OUR INDUSTRY

Photo by Joey Kyber on Unsplash

MAERSK TANKERS LAUNCHES NEW DIGITAL BUSINESS

ATLANTA TOPS LIST OF TOP 10 PLACES TO FIND SPOT VAN FREIGHT IN 2019 Atlanta was the No. 1 market to find spot truckload van freight in 2019, according to DAT Solutions. A spot load is transactional freight not under contract that a shipper or broker makes available to carriers on the DAT network of load boards. Fresno, Calif., was the market with the most available refrigerated loads, while Houston was the top market for flatbed freight posts. The rankings are based on an analysis of more than 256 million freight matches and a database of $68 billion in market transactions on DAT load boards in 2019. Below are the Top 10 markets for outbound truckload freight by equipment type in 2019:

FLATBED LOADS: 1. Houston 2. Dallas 3. Cleveland 4. Atlanta 5. Fort Worth, Texas 6. Joliet, Ill. 7. Pittsburgh 8. Los Angeles 9. Chicago 10. Lakeland, Fla.

REFRIGERATED LOADS: 1. Fresno, Calif. 2. Atlanta 3. Ontario, Calif. 4. Philadelphia 5. Los Angeles 6. San Francisco 7. Elizabeth, N.J. 8. Joliet, Ill. 9. Chicago 10. Dallas

Photo by Elevate on Unsplash

VAN LOADS: 1. Atlanta 2. Ontario, Calif. 3. Dallas 4. Houston 5. Los Angeles 6. Elizabeth, N.J. 7. Chicago 8. Indianapolis 9. Joliet, Ill. 10. Columbus, Ohio

FOOD LOGISTICS | JANUARY/FEBRUARY 2020

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Maersk Tankers has launched a standalone digital business that will reduce CO2 emissions and optimize vessels’ earnings across the tramp shipping industry. The business has yet to be named. The goal for the project is to develop and sell the software product SimBunker to vessel owners and managers in the tramp shipping industry to help use their vessels more efficiently. The product will help reduce CO2 emissions, supporting the shipping industry’s ongoing efforts toward more sustainable development. “Through significant and strategic investment, we have established Maersk Tankers as the digital frontrunner in the tanker industry. Digitization will enhance customer and partner experience, transform our business and contribute to a more efficient operation, benefitting both sustainability and profitability. This becomes increasingly important at a time when the shipping industry must adapt to take its share in solving complex challenges posed by climate change and new regulatory requirements. With the new setup, we will be able to accelerate our digital strategy,” says Christian Ingerslev, chief executive officer of Maersk Tankers.

REPORT HIGHLIGHTS TRENDS IN THE FORKLIFT TRUCK MARKET The forklift truck market is expected to register a CAGR of over 6% during the forecast period (2020-2025), according to a report published by Mordor Intelligence. Although, there are a large number of automated solutions arriving in the market, the demand for manual internal combustion (IC) and electric forklifts have not dwindled. The growing demand from the European and the Asia-Pacific regions are expected to further increase the sale of these units over the forecast period. While the tremendous demand from the retail industry, especially from the e-commerce sector, is driving the forklift truck market headlong, the advent of automated guided vehicles poses a significant challenge to the market. However, the uneven weight distribution is due to a more massive rear section to compensate for the loads being carried in the front, which is increasing the chance of tipping over during tight turns. It is evident that the energy-consumption costs of an electric forklift are comparatively less. Furthermore, advantages like zero emission, zero noise pollution and the ability to virtually perform every task that an IC forklift can do is increasingly approving electric forklift trucks to gain more market share every year. According to the estimates of Clark Material Handling Co., the United States contributed over $25 billion annually, supporting more than 200,000 jobs annually. As this aligns with the interests of the current U.S. government, the sales of this equipment are expected to witness considerable growth in the region over the forecast period, making North America one of the fastest growing regions for the forklift trucks market. For more on forklifts, go to page 30. www.foodlogistics.com

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KUEBIX AND TRIMBLE ENTER DEFINITIVE ACQUISITION AGREEMENT

Trimble has signed a definitive agreement to acquire Kuebix. This acquisition will enable Trimble to bring together its network of private fleet and commercial carrier customers with Kuebix’s extensive community of more than 21,000 shipping companies, creating a new platform for planning, execution and freight demand-capacity matching. The transaction is expected to close in the first quarter of 2020. Financial terms were not disclosed. “Combining Kuebix’s innovative platform and rapidly-growing community of shippers with Trimble’s history of innovation, strength and scale will provide a transformative transportation supply chain solution that creates new opportunities for collaboration throughout the logistics ecosystem,” says James Langley, senior vice president, Trimble Transportation. “This combination will help carriers uncover inefficiencies in their network, make better decisions, optimize operations and transform the way the transportation industry works.” With Kuebix, Trimble will now be able to break down technology barriers, enable actionable visibility and improve collaboration by delivering a single logistics platform for all participants in the supply chain. This Software-as-a-Service (SaaS), multi-tenant, cloud platform will optimize the entire logistics process from order management to financial settlement, improving efficiency and asset utilization for carriers and giving shippers access to expand capacity and reduced costs. Kuebix’s business will be part of Trimble’s Transportation Sector.

GLOBAL COLD CHAIN MONITORING MARKET TO GROW 10.8%

The cold chain monitoring market worldwide is projected to grow by $3.9 billion, driven by a compounded growth of 10.8%, according to a report produced by MarketsandMarkets. In the study, hardware demonstrates the potential to grow at over 9.5%. The shifting dynamics supporting this growth makes it critical for businesses in this space to keep abreast of the changing pulse of the market. Poised to reach over $4.7 billion by the year 2025, hardware will bring in healthy gains, adding signiﬁcant momentum to global growth. The United States will maintain a 12.4% growth momentum by 2025. Within Europe, Germany will add over $176.1 million to the region’s size and clout in the next 5-6 years. Over $178.4 million worth of projected demand in the region will come from the rest of the European markets. In Japan, hardware will reach a market size of $349 million by the close of the analysis period. China exhibits the potential to grow at 10.4% over the next couple of years and add approximately $661.2 million.

www.foodlogistics.com

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HIGH-BAY WAREHOUSE FOR HIGH-BAY DEEP FREEZE WAREHOUSE FOR INTRALOGISTICS DEEP FREEZE AT ITS BEST INTRALOGISTICS In Burley, Idaho, AT ITSNewCold BEST celebrated the grand opening of one of the largest frozen storage facilities of its kind. This impressive project includes a high bay warehouse with 90,000 pallet positions supplied by SSI SCHAEFER.

The demand for deep-freeze products continues to grow. As volumes increase, requirements placed upon deep-freeze logistics are getting more complex. SSI SCHAEFER offers flexible, modular, and scalable solutions that optimize storage, picking processes, and profitability within cold storage facilities.

ssi-schaefer.com

JANUARY/FEBRUARY 2020 | FOOD LOGISTICS

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COOL INSIGHTS

BY Ari Goldsmith

HOW KEHE DISTRIBUTORS BECAME KeHE Distributors

Ari Goldsmith, vice president of marketing and digital media at KeHE Distributors.

eHE Distributors, Naperville, Ill., is one of the largest national distributors of fresh, natural, organic and specialty products to over 30,000 chain, independent and natural grocery stores in North America. With more than 5,500 employee-owners, 550 trucks and a 16-distribution center network across the continent, KeHE spreads the word on healthy eating, sustainable living and responsible business.

Impact of FSMA

In 2016, the Food and Drug Administration (FDA) issued a final ruling for the Sanitary Transportation of Human and Animal Food (STF) detailing specific roles and requirements for the transportation industry to take preventative measures against food safety risks. The STF ruling designated four supply chain roles to include the shipper, loader, carrier and receiver, each with specific requirements. Under the new rule, KeHE classifies as a stakeholder and an actor within each of the roles. And, as with any new law directly impacting a business, KeHE examined its distribution centers to ensure they complied with the new requirements. In doing so, KeHE benchmarked previous cold chain transport business practices to ensure alignment with the Refrigerated Transportation Best Practices Guide by International Refrigerated Transportation Association (IRTA), under the parent organization of the Global Cold Chain Alliance (GCCA), Alexandria, Va.

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KeHE Distributors

COLD CARRIER CERTIFIED Cold Carrier Certified

In February 2019, IRTA approached KeHE to participate in a pilot for the new Cold Carrier Certified certification, which focuses on compliance with the STF ruling as well as excellence in refrigerated transportation. The Cold Carrier Certified designation ensures shippers and receivers that the carrier aligned their business and personnel to the highest industry standards of sanitary and safety in transportation of perishable products. (Go to page 42 to learn more about the program). KeHE, along with six other organizations, agreed to pilot the program, and were tested on their business practices and employee knowledge, ensuring they aligned with industry best practices and standards.

The Process

The program required participants to apply for proof of conformance to the Refrigerated Transportation Best Practices, which includes

“By earning the Cold Carrier Certification, KeHE has taken a step to ensure our professional truck drivers have more education about food and food safety,”

examples of written documents of operational loading and transportation standard operating procedures. Two months after the pilot, KeHE became one of the first of seven companies to receive the Cold Carrier Certified designation. “What motivated us to become certified was that we wanted the validation that our internal documentation and processes met and exceeded the stringent guidelines for best practices set by IRTA,” says Tom Hardin, corporate equipment manager for KeHE. The certification ensures customers that KeHE aligned its business and personnel to the highest industry standards for its commitment to the safe and sanitary transportation of perishable products. “By earning the Cold Carrier Certification, KeHE has taken a step to ensure our professional truck drivers have more education about food and food safety,” says Chris Sieburg, executive vice president of operations for KeHE. “Our company is taking precautionary steps to ensure the food our suppliers create and [what] our retail partners order is arriving within food safety standards. The third-party verification further legitimizes our commitment to food safety.”

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COVER STORY

BY MARY SHACKLETT, PRESIDENT OF TRANSWORLD DATA

WAREHOU FOCUS ON A

SPEED OF GOODS TO M I

n 2020, warehouse managers will face continuing pressures to deliver goods at a rapid pace, which will require a greater agility to respond to constantly changing markets. At the same time, warehouses are expected to process and deliver goods in bulk faster, and e-commerce continues to drive customer personalization. This is forcing warehouse managers to re-think processes in order to expeditiously address the rapid processing of “one of” orders. The conﬂict between

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personalized “one of” orders and the ability to ship vast quantities of merchandise quickly presents a dichotomy to managers. On one hand, warehouse managers are expected to introduce new technologies and work methods to keep pace with the speed of business. On the other hand, managers must retain the ability to customize orders and stay within workable budget parameters as they strive toward operational optimization. “Based on what we hear from customers, it’s all about throughput

in the distribution center and optimizing the workforce,” says Keith Phillips, president and CEO of Voxware, Hamilton Township, N.J. So, how can warehouse managers maximize throughput, optimize operations and yet stay within budget? Here are several leading warehouse technologies and trends likely to shape warehouse strategies in 2020: Over the past few years, voicebased technology has embedded

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The power of voice

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OUSES TO N AGILITY,

TO MARKET IN 2020

of J.

itself into numerous warehouse process. Voice is no longer an end in itself, but instead has become an integral communication component that can operate alongside a myriad of human and automation-based work practices in the warehouse. Voice-based communications, which enable hands-free operation and greater accuracy in order and item identiﬁcation, integrates with most of today’s warehouse management systems (WMS), mobile devices and appliances. Voice can operate in almost every operational phase of the www.foodlogistics.com

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warehouse—from goods intake to stocking, moving, picking, scanning, loading and querying WMS systems. “Many companies we work with tell us that they understand voice picking and the beneﬁts that come with it, so they are looking for other ways to increase productivity throughout their warehouse,” says Phillips. “Anywhere companies have human capital deployed, they need automation to increase productivity, and voice-based technologies embellish this. We’ve almost seen voice technology come

full circle. Years ago, using voice was about gaining productivity. Then, it became accuracy, and now we’re back to productivity. Companies just can’t keep up with rising consumer demands and will need to deploy technologies like voice in order to remain competitive.” Companies will see a 20-30% increase in productivity by just deploying voice for picking alone, adds Phillips. “We have many customers who also deploy our supply chain analytics software, and realize an

Voxware

For Voxware, it’s about the multimodality of the solution and providing customers with the right technology to complete their specific tasks, whether that be through scanning, voice or augmented reality.

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COVER STORY

company would have required an additional 150,000 square feet of ﬂoor space. Throughput is now 8,000 cases per day, compared to a former throughput of 4,000 cases per day.

continued

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Autonomous vehicles

Voxware

Voxware customers who rely on VoxPilot are said to see an additional 10-15% more productivity from their workforce.

additional 10-15% in performance gains,” he adds. “It’s about the multimodality of the solution.”

More flexible AS/RS

Automated storage and retrieval systems (AS/RS) that place and retrieve products from diﬀerent storage locations within warehouse and distribution centers will also see their use expanded as more high-volume loads need to be processed quickly. AS/AR’s automation capabilities reduce the need for human intervention. Reducing human involvement in storage and retrieval processes promotes warehouse safety and enables warehouse vertical and horizontal space that humans can’t access to be better taken advantage of. A new twist to AS/RS is the ability to diﬀerentiate products, so that mixed pallets or loads of products can be produced. The need to variegate products at the pallet level is rising in the food and beverage industry, as retailers respond to the individual needs of customers and move to more “one of” orders. This change will likely

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Autonomous vehicles are also saving miles of walking on warehouse concrete floors. This is a safety and a health objective for warehouse workers, and a way to expedite warehouse operations with the power of artificial intelligence (AI), autonomous vehicles and automated forklifts. As e-commerce and rising consumer demands force warehouse operators to process work around the clock, machines are part of the solution because they don’t wear out. Autonomous machines can also offset human labor costs. Key areas of warehouse operations where autonomous vehicles play a role include picking and placing items and boxes, cycle inventory, load handling and moving, scanning and tracking. Another important area of focus

generate a new wave of AS/RS technologies that will be more agile and better equipped to work with a diversity of warehouse fulfillment scenarios. Meanwhile, at the macro level of AS/RS, the benefit to warehouses is the ability to rapidly process products and save on real estate and facility costs. For example, Martignetti Cos. used AS/RS to consolidate two warehouses into a single 50-foot-high facility at its Taunton, Mass., headquarters. It achieved the facility savings by implementing AS/RS that could overcome the physical limitations of humans working with high stacks. The AS/RS stores and retrieves thousands of pallets per day out of its new 600,000-square-foot Companies like Lucas Systems work with clients to integrate up-and-coming technology that can improve warehouse. Without warehouse operations and build upon the existing the benefit of AS/ technology bases that companies already have in place. RS technology, the www.foodlogistics.com

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mu I aut he can tha hu ho

oa s

for warehouse operators in 2020 will be cobotics, the collaboration of humans and robotics such as autonomous vehicles working together for

personnel who can recognize and resolve an exception situation in a workﬂow or innovate a better way of performing a task is still needed. Skilled employees working alongside autonomous vehicles facilitate this combniation. It will be up to warehouse managers and technology vendors to focus

is or o

mutual advantage. In the warehouse, an autonomous forklift moves heavier loads than a human, and can operate with greater safety than a forklift operated by a human operator, but the “know how” of experienced warehouse

Packaging automation and process optimization

In packaging operations, warehouses can also automate by creating packages, cartons and sealing products without human assistance for repetitive processes. Line operators can quickly change the dimensions of a case or a pallet with the click of a button when working with automation. Automated robotic packaging operations can also work around-the-clock picking, placing and removing items, as well as moving empty boxes. Given the eﬃciencies of packaging automation, companies will continue to invest in it in 2020. Equally important will be packaging sustainability initiatives. “Sustainability is a major concern within the packaging industry and amongst consumers,” says John Ashby, president of Lucas Systems

ts to mprove ting in place.

on this human-machine interface and work with employees to develop best practices.

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Crawford Packaging, Canada. “Our expectation is, with this continued emphasis on sustainable packaging, that future packaging technologies will focus on waste reduction and recyclability. Whether that’s through replacing certain materials with more sustainable ones or by implementing simplified packaging that is both durable and lightweight, there is a significant effort to re-think packaging best practices.” That’s why companies are encouraged to perform a packaging audit for best results. “Unless you have a packaging expert overseeing the creation of your packaging workflows specific to your application, then there’s a good chance that time and money is being wasted in one or more areas,” says Ashby. “A packaging audit is a complete assessment of a business’s packaging practices. When a business requests a packaging audit, we send a packaging specialist on-site to identify areas for packaging optimization and improvement and work directly with the business to develop customized packaging workflows that save time, money and reduce packaging. This improves packaging efficiency.”

Workflow optimization, budget conservation and future proofing Warehouse technology oﬀerings and customer demands continue to expand and drive warehouse improvements, but one thing hasn’t changed much for warehouse management—the need to keep budgets under control and maximize assets already under management. For warehouse managers, this means making careful technology “picks” to improve the warehouse, while continuing to work with legacy and other systems that have proven their value over time. “We ﬁnd many companies are dealing with legacy systems, or even have their own homegrown WMS systems,” says Justin Rotter, JANUARY/FEBRUARY 2020 | FOOD LOGISTICS

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COVER STORY

continued

Lucas Systems

sortation, so items are placed in individualized orders before being shipped. All of these tools are needed to better orchestrate warehouse workflows to meet the growing customer fulfillment trend of “one each” picking for individualized orders. Mindful of operating expenses and budgetary constraints, warehouse managers can be expected to choose wisely when it comes to technology Ost lu s ape nkoO es P lena / IStock / Gety Imag investments in 2020. legacy At the same time, they systems and understand that the rate at which new technology has products are now expected to the potential to return investment be delivered and the growing at a faster rate, as it costs less to demands of customers will not add new capabilities to support abate. changing business needs and The personal success of enables companies to continue managers—and of the warehouses running the systems already in place. It also helps warehouses gain they operate—will depend upon meeting the dual and sometimes a footing in new technologies and conflicting goals of agility and applications while they continue to speed. run their older systems. In this environment, technology In the future, workflow offers the best answers for both. optimization tools will incorporate “There are a lot of companies machine learning, so that softwarethat have been slow to adopt based analytics can provide technology in the distribution answers to questions such as how center,” says Phillips. “With the long individual tasks should take, current economy and the labor how to allocate workers, when to shortage still very prevalent, we move product from one location to believe that companies that do not another and more. automate will struggle to remain Artificial intelligence tools are competitive.” already in use to determine how best to combine orders for the SCAN THIS QR CODE most efficient to learn more about these and pick sequence other WMS and warehouse and then execute automation solutions on the appropriate display at MODEX 2020.

Companies will continue to invest in packaging automation in 2020.

director of project operations for Lucas Systems, Wexford, Pa. Companies like Lucas work with clients to integrate up-and-coming technology that can improve warehouse operations and build upon the existing technology bases that companies already have. This eliminates the need for companies to develop massive capital budgets for “rip and replace” technology projects. “We can use an approach like this to migrate paper-based and older system operations to newer technologies that can optimize replenishment, picking and other processes. These newer technologies, including voice and wearable technology, can improve hands-on processes, and also give warehouse managers better visibility into warehouse workflows and into exception situations that may arise on the floor and require resolutions,” says Ritter. “Many of these solutions also use GS1 barcodes to support barcode scan and capture and product trackand-trace capabilities.” The mixed environment of

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JANUARY/FEBRUARY 2020 | FOOD LOGISTICS

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COVER STORY

BY ELLIOT MARAS

NE W AVA IL A BL E IN T EL L IG EN T A L L-WHEEL D RI V E

SCHOOLKIDS GET SNOW DAYS. FURNACE REPAIRMEN… DON’T. T HE NE W 2020 F O RD T R A N SI T. B UILT T O HEL P YO U R B USINE SS P U L L A HE A D.

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THIRD-PARTY & REFRIGERATED LOGISTICS BY MARY SHACKLETT, PRESIDENT OF TRANSWORLD DATA

FLEET MANAGEMENT INITIATIVES IN 2020 I

n 2020, fleet managers will take a measured approach to investments, allowing them to respond to an uncertain economic environment. And, it’s the uncertainty that’s prompting many fleet managers to consider longer term investments in technologies designed to improve fleet performance, regardless of what type of economic and competitive environment fleet operators find themselves in. In fact, over 60% of fleet operators plan to increase their investments in technology over the next year, with goals such as tracking drivers, vehicles, cargo and other assets in near real-time, according to Susan Beardslee, principal analyst for freight transportation and logistics for ABI Research, Oyster Bay, N.Y. “No singular technology will address every need or provide the same benefit to every fleet,” she adds. “To succeed, they will need to develop greater knowledge of the fundamentals at a minimum and form trusted relationships with external experts.” At the same time, fleet managers want to manage their operating costs, whether it is for their own private fleets or for the contracts and spot engagements in which they engage outside logistics

providers. Fortunately, technology provides benefits for cost and asset management. Here are six fleet management trends and technologies likely to impact the 3PL and refrigerated logistics industry in 2020:

1. Rate management

Key challenges for shippers, for-hire fleets and private fleets that use for-hire resources are volatility and uncertainty. “In the last three years, we’ve experienced both the lowest and the highest transportation rates on the market,” says Ken Adamo, chief of analytics at DAT Solutions, Beaverton, Ore. “The challenges for fleet managers using outside services is to find ways to mitigate the uncertainty in rates.” Historically, companies like DAT have provided rate information for shippers and transporters for making transportation transactions, managing costs and entering optimal contracts or spot assignments. In January 2019, DAT partnered with Knight-Swift Logistics, Phoenix, Ariz., for a pilot program designed to produce advanced predictive rates for freight that will aid in future forecasting. “The best predictor for future rates is historical rates,” says

The best “ predictor for future rates is historical rates.

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”

iStock.com/StockVisual

In 2020, more fleet managers will begin to migrate from day-to-day maintenance scheduling into a hybrid combination.

Adamo. “We use these rates to help shape data models that take into account seasonality, day of week, week of month, etc., if for example, you are shipping produce.” Perfecting a rate forecasting engine is an iterative process. DAT plans to use machine learning to detect patterns in data that can lead to new insights about future rates and trends. The company also plans to develop software-based algorithms that can perform tasks such as predicting spot truckload freight rates; identifying historical, current and future market conditions; and availing greater visibility in the supply chain about where loads are located and when they will be delivered. “There are always uncertainties, and no forecasting system is perfect,” says Adamo. “If through continuous refinement we can reach 70-90% accuracy in our predictions, this will provide a

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valuable forecasting tool for ﬂeet managers who do not have access to these predictive insights today.”

2. Logistics optimization On a hot day in July 2019, sensors saved an Atlanta-bound truckload of lettuce from spoiling. The truck’s cloud-based transportation management system (TMS) was integrated with the sensors, alerting the manager when environmental controls for the lettuce failed. Worried that it would spoil en-route, the manager re-routed the truck to a more proximate location, where the produce arrived safely. For produce and other temperature-sensitive goods, sensor-based intelligence down to the single pallet or package level in a truck will be a goal in 2020, as www.foodlogistics.com

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will telematics being collected from truck-based sensory systems that were initially implemented for ELD compliance in 2017.

These technology capabilities will be enhanced so that traﬃc, weather and conditions can be gathered from sources outside of sensors, integrating into a single data repository that reports through central ﬂeet management software.

3. Sustainability

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Volatility and uncertainty will be key challenges for shippers, for-hire fleets and private fleets that use for-hire resources in 2020.

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In September 2019, Amazon ordered 100,000 electric delivery vans, further influencing many fleet managers to take note of their fleet’s environmental impact. With fuel comprising nearly twothirds of vehicle operating costs, more fleet managers are considering moving toward electric vehicles. That’s because e-vehicles cost less to refuel, have longer life cycles, require less JANUARY/FEBRUARY 2020 | FOOD LOGISTICS

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3PL

continued

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With fuel comprising nearly two-thirds of vehicle operating costs, more fleet managers are seriously considering moving toward electric vehicles.

maintenance and feature lower carbon emissions. Monitoring driver behavior through sensor-generated data, such as the time trucks are left idle or the speed at which drivers drive, also enables fleet managers to reduce the fleet’s overall carbon footprint and fuel consumption. Reducing fleet carbon footprints is not only good business, but it also puts companies in a leading position for when government regulations become more stringent, as the effects of climate change become more prominent.

company runs, integration isn’t an issue. However, many companies already have tried and proven older systems, so integration of new tracking technology is still on 2020 project lists. In 2020, the integration of fleet tracking is likely to extend even further, such as leveraging GPS tracking data to enable business partners or customers to also have visibility of particular fleet vehicles.

4. Asset management

At the same time, more data is being appended to GPS locational tracking. For example, a truck driver can snap a photo at a certain location and upload it to the central TMS system. If there is an incident or an accident that management needs to be informed of and act upon, management can receive visual information in near real-time.

11%

DAT Solutions

5. Fleet life-cycle management

The other side of fleet asset management is maintaining fleet vehicles, so managers know when they need to be replaced. The rule of thumb is that maintenance comprises 11% of a truck’s total cost once it hits 500,000 miles. This places maintenance third behind fuel consumption (61%) and depreciation (25%). Companies that wish to avoid high maintenance costs and downtime will opt to replace aging vehicles more aggressively, thus protecting the safety of the driver in the long run. Those who choose to delay major capital or leasing expenses will use their vehicles as long as they can. Between these two extremes are fleets that balance the value of new, low-maintenance vehicles against the value of vehicles with extended life cycles that can defer purchases or leases. Based on the nature of the business and the fleet, fleet managers and financial

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once it hits 500,000 miles.

Fleet asset management is a cornerstone of a well-run fleet. That begins with knowing where your assets are. To obtain real-time locational information about fleet vehicles, fleet managers have equipped their vehicles with GPS tracking sensors over the past few years. If the sensors are part of a TMS that the

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is now available on ﬂeets can be aggregated into a common data repository and queried by analytics software that comes up with optimal predictive maintenance recommendations. By anticipating maintenance needs before they occur, ﬂeet managers can prevent vehicle downtime, save on labor and even avoid the need to store spare parts in cases where the parts are not likely needed.

6. Move to more predictive maintenance management

Historically, ﬂeet maintenance has been scheduled and administered by looking at miles traveled or hours operated. A combination of Internet of Things (IoT) and outside data that

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analysts have to determine the optimal mix of new and older vehicles in fleets. Fortunately, more information is available to assist fleet managers in making a data-based determination on which vehicles to keep and which to replace. Fleet management software providers also include fleet lifecycle analytics as part of their offerings. In 2020, more fleet managers will elect to use analytics as an aid to fleet vehicle life-cycle determinations.

In 2020, more fleet managers will begin to migrate from day-to-day maintenance scheduling to a hybrid combination of both traditional scheduled maintenance practices and predictive maintenance.

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800.655.5465 JANUARY/FEBRUARY 2020 | FOOD LOGISTICS

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SECTOR REPORTS WAREHOUSING

HOW TODAY’S LIFT TRUCKS MANAGE THE HEAVY LIFTING From automation and robotics to alternative energy and worker safety, today’s lift trucks manage the heavy lifting.

s the food and beverage industry expands to become all things to all consumers, so too does the equipment used to produce, package and move product from Point A to Point B. And, lift trucks are no exception. The evolution of lift trucks expands beyond just a make and model. That’s because today’s lift trucks encompass everything from automation, robotics and alternative energy to space-saving and worker safety features. Couple these elements with an increasing labor shortage and a pragmatic approach to connectivity, and the lift truck of tomorrow is doing more of the heavy lifting than ever before. In fact, 2018 marked the fourth consecutive year of historic growth in forklift sales, with over a quarter million units sold and a 2.8% increase from 2017, according to stats presented by the Industrial Truck Association (ITA), Washington, D.C.

BY MARINA MAYER, EDITOR-IN-CHIEF

“All five truck classes exhibited growth in 2018, representing diverse demand across product lines,” says Scott Johnson, chairman of the board of directors for the Industrial Truck Association and vice president of marketing and sales for CLARK Material Handling Co., Lexington, Ky. Year-end results of forklift truck sales totaled 260,180, including electric rider trucks (Class 1 and Class 2 combined), motorized hand trucks (Class 3) and internal combustion (IC)-powered trucks (Class 4 and Class 5 combined). Electric and IC truck sales grew at similar rates, showing annual increases of 2.8% and 2.7%, respectively. Overall, electric products accounted for approximately 64% of the market, with Canada and Mexico being the two largest export countries for U.S. forklift manufacturers. Looking ahead, the forklift market is expected to register a CAGR of over 6% during the next 5 years, according to a report published by Mordor Intelligence, India. Increasing demand from the European and Asia-Pacific regions are expected to further increase sales, the study says, while demand from the retail industry, specifically the e-commerce sector, continues to drive market growth.

R gen and ber con pro

Labor shortage prompts influx in automation

Industrial truck sales continue to play an integral role in keeping the U.S. economy moving, says Brian Feehan, president of ITA. “Forklifts contribute annually over $25 billion to the U.S. gross domestic product, support a total of 209,000 U.S. jobs and create 2.5 additional jobs in the U.S. economy for each full-time employee in the manufacturing industry,” he adds. Plus, more than 60% of the industrial trucks sold in the United States are electric powered. In fact, the No. 1 trend in lift trucks is automation, says Carl Modesette, director of product engineering for UniCarriers Americas, Marengo, Ill. This is driven by a shrinking labor pool for operators as well as a desire to make material handling safer and more efficient. “For the forklift industry, one of the most practical applications is to improve fleet management,” he adds. “This data helps answer questions like ‘How many forklifts do I need, and what types?,’ ‘Am I moving material in the most efficient way?,’ ‘What are my fleet operating costs and how can I improve them?,’ ‘How can I reduce accidents or damage in my facility?,’ ‘How can I minimize downtime with my equipment?’ and more.”

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Rite-

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.5 my e

In fact, there is a wealth of data that can be gathered from forklifts, says Craig Bruns, vice president of customer support, Crown Equipment, New Bremen, Ohio. “Many companies are starting to make their way through the hype around Big Data and connectivity, and are now taking a realistic approach that is based on clear, strategic business objectives that enables them to work toward measurable goals,” he adds. Plus, technology continues to evolve, making automated forklifts more practical for use in warehouse and distribution environments. “The technology is evolving to the point where it holds real promise to be an integral part of the supply chain,” adds Bruns. “In many cases, eﬀorts to introduce forklift automation into facilities is being guided by a realistic plan with realistic expectations. Companies are identifying those tasks and equipment that are ideal for automation and developing a clear path for tangible return on investment that they can build upon to strategically

o ds.

evolve their automation efforts.” And, as technology evolves, the advantages of using semi- and fully automated solutions to increase productivity and address the labor shortage are clear, outlines Michael Field, chief executive officer of The Raymond Corp., Greene, N.Y. “Before getting too invested in the latest material handling trend, however, optimization is a crucial step that must happen first,” he adds. “The application of automation can likely make production and distribution processes quicker, easily repeatable, consistent and cost-effective, but only if your process is well defined and optimized.” Raymond’s iWAREHOUSE intelligent solutions platform helps the food and beverage industry address a number of these challenges, including increasing consumer demands for obtaining products faster. “This is an entire IoT-Industry 4.0 platform offering integrated endto-end solutions, including automated vehicles, labor management, equipment tracking, virtual reality Rite-Hite’s newest technology— Dok-Vu—is a secure, browser-based software system that connects forklift drivers and other material handlers with managers, yard personnel and carriers.

education and energy solutions,” says Field. For its part, food and beverage operations are the biggest users of robotic lift trucks, says Mick McCormick, director, robotics and automation, Yale Materials Handling Corp., Greenville, N.C. Yale’s robotic reach truck offers vertical lifting capability as high as 30 feet, and reaches into double deep storage, making it an ideal fit for operations with growing inventories but limited square footage. “Getting to that stage of actually transferring to robotic lift trucks requires a true picture of forklift operations,” says McCormick. “As more lift truck models are become ‘roboticized,’ robotic lift trucks become increasingly capable solutions that can take on new tasks. And, as it relates to lift trucks, connectivity and cloud-based technology enables operations to leverage data for greater productivity and efficiency. For example, data about lift truck utilization can enable managers to make smart decisions about fleet size and the types of trucks that comprise it, ensuring the most efficiently structured fleet with no excess expenditures on lift trucks.” Driverless forklifts and robotic lift trucks continue to gain notoriety, according to Steven LaFevers, vice president, emerging technology for Hyster Co., Greenville, N.C. “Some end users may focus on using robotic lift trucks for horizontal transport to start. For example, this means delivering pallets to manufacturing areas or storage, moving loads from storage to shipping, and from conveyors and automated storage and retrieval systems to a stretch wrap station,” he says. “Regarding navigation technology, our Hyster robotic lift trucks use LIDAR (light detection and ranging), which uses lasers to measure distances to an object.” Additionally, Hyster Tracker offers intuitive, user-friendly dashboards via an online portal to help users make sense of data from material handling equipment. Here, managers can see utilization

Hyster Co.

Raymond’s iWAREHOUSE intelligent solutions platform helps the food and beverage industry address a number of challenges, including increasing consumer demands for obtaining products faster. The Raymond Corp.

Hyster’s Hyster Tracker mobile app provides near-real time fleet utilization metrics and notifications when events like impacts or errors on pre-shift safety checklists occur.

Rite-Hite

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SR: WAREHOUSING

Big Joe Forklifts introduced the new LPT44 48V lithium-ion-powered pallet truck, which boasts a 4,400pound capacity and the smallest power head, making it what is dubbed to be the most maneuverable pallet truck in its class. Big Joe Forklifts

continued

information for individual lift trucks and other mobile equipment to inform decisions on fleet size and structure. Hyster Tracker also tracks GPS locations, impact information and more, and matches that information with specific operators, allowing managers to use these inputs to evaluate employee performance. Earlier in 2019, Hyster debuted the Hyster Tracker mobile app, which provides near-real time fleet utilization metrics and notifications when events like impacts or errors on pre-shift safety checklists occur. “It works as a companion to the desktop portal, bringing data-driven insights and management functionality to the shop floor,” says LaFevers. Also promoting connectivity is Rite-Hite’s newest technology for material handling operations. DokVu is a secure, browser-based software system that connects forklift drivers and other material handlers with managers, yard personnel and carriers, says Tim Kubly, business development manager for the Milwaukee, Wis.-based company. Dok-Vu’s intuitive loading dock dashboard provides an at-a-glance status of each dock position. And, accessible via platform-integrated tablets on forklifts and other approved devices, the Dok-Vu dashboard displays critical logistics operations information such as trailer presence, loading/unloading activities and dock status.

Safety first

A strong safety culture is vital to creating and maintaining a safe working environment, says Bruns. “To help achieve and maintain a vibrant safety culture, many companies are introducing technology that creates a more informative and personalized experience for operators. They are providing real-time feedback to operators that reinforces correct behavior and recognizes incorrect behavior. Some are even introducing friendly competition as a way to keep employees engaged and motivated when it comes to safe behavior,” he adds. In fact, there’s a number of ways forklift manufacturers can contribute to enhanced safety. For instance, Combilift USA, Greensboro, N.C., developed the Combi Safe-Lift, a safety interlock that stops an operator from overloading a lift truck with an over-capacity load or lifting a load at an extended load center. Furthermore, many companies are looking to replace ride-on forklifts with pedestrian-operated equipment to improve safety. “Pedestrian-operated stacker trucks and powered pallet trucks typically work at a slower speed than ride-on forklifts and have less potential for accidents,” says Martin McVicar, chief executive oﬃcer for Combilift. “Operators, at ground level, are more aware of their surroundings compared to when they are sitting in a cab. Visibility from all angles makes for enhanced safety, not just for the operator, but for other personnel or

members of the public who may be in the vicinity.” Combilift also added another dimension to the safety of walkie/pedestrian stacker with its patented multi-position tiller arm, which realigns the rear wheel independently of the tiller arm by removing the operator from the crush zone behind the unit, thus reducing the aisle dimension by almost 24 inches and giving the operator full visibility. To further promote operator safety, ITA will host its 7th annual National Forklift Safety Day on June 9. “This day provides an opportunity for the industry to raise awareness and educate customers, policymakers and U.S. government oﬃcials on forklift operating safety practices,” says Feehan. “The safe operation of forklift trucks has always been a top priority for the industry. We believe that thorough training of powered industrial truck operators is the centerpiece of an eﬀective workplace safety program.”

Alternative energy options

The forklift industry has been trending more electric over time, with lithium-ion batteries in position to replace lead-acid batteries.

UniCarriers’ BXC65 cushion tire electric forklift features a 6,500-pound capacity and other optional components such as a bottler’s tilt with an 8-degree forward and 5-degree backward angle. UniCarriers Americas

FOOD LOGISTICS | JANUARY/FEBRUARY 2020

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continued

“The forklift industry is starting to see the introduction of trucks designed specifically around lithium-ion batteries, which is opening up more opportunities to re-think the fundamental sizes, shapes and envelopes of the trucks themselves,” says Modesette. “Lead-acid batteries have been a large box that engineers had no choice but to design around, but lithium-ion brings a lot more flexibility with shape and space, so the trucks can be designed more toward the application and the operator and the lithium-ion batteries can be ‘bent’ around that. Typically, the end-result is a far more ergonomic and compact machine.” Lithium-ion batteries are particularly relevant to the food industry because they offer a cleaner, encapsulated solution that requires little ongoing maintenance, according to Field. For instance, the lithium-ion powered Raymond 8250 features builtin heaters surrounding the battery compartment, which enables it to thrive in refrigerated warehouses. Lithium-ion batteries also offer greater energy efficiency over lead-acid batteries. That’s why Crown Equipment offers a V-Force Lithium-Ion Energy Storage System (ESS) for

Crown Equipment’s V-Force Lithium-Ion Energy Storage System allows trucks to display battery discharge levels, alerts operators through an early warning system before truck operation stops and includes a modular V-Force charger, as well as a battery management system that extends battery life. Crown Equipment Corp.

FOOD LOGISTICS | JANUARY/FEBRUARY 2020

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Combilift

SR: WAREHOUSING

Combilift introduced the new 2020 production model of 33NE (Narrow Electric) Aisle Master, what is said to be the smallest articulated narrow aisle truck on the market.

a majority of its electric forklifts. The V-Force Lithium-Ion ESS is fully integrated with the truck for ﬂexibility, scalability and convenience, which allows it to display battery discharge levels and alert operators through an early warning system before truck operation stops. The system also includes a modular V-Force charger, as well as a battery management system that extends battery life. For its part, Big Joe Forklifts, Lombard, Ill., introduced the new LPT44 48V lithium-ion-powered pallet truck, which boasts a 4,400-pound capacity and the smallest power head, measuring just 17 inches.

Future-forward technologies ahead

Combilift introduced the new 2020 production model of 33NE (Narrow Electric) Aisle Master with 3,300-pound capacity. The 33NE features a patented over-articulated steering system, dual bearing mast support system, compact mast top bearing with ﬁbreglass cover, ergonomic operator’s control console complete with arm rest and an overhead guard with high-visibility aperture for product placing and retrieval.

Raymond debuted the Raymond Courier 3030 Automated Stacker, a man-on, man-off truck ideal for pick-up/drop-off, end-of-aisle and end-of-line applications, as well as conveyor picking. The Courier 3030 utilizes Seegrid vision-guided technology to capture a 360-degree view of its surroundings while mapping locations, identifying obstructions and controlling vehicle behaviors. UniCarriers’ BXC65 cushion tire electric forklift features a 6,500-pound capacity and other optional components such as a bottler’s tilt with an 8-degree forward and 5-degree backward angle. No power source is one-size-fitsall, says McCormick. “Picking the right one for each operation requires balancing meeting sustainability and hygiene targets, run time requirements, space constraints and more,” he adds. Regardless of how a company moves product from Point A to Point B, today’s lift trucks provide automation, robotics, worker safety and energy efficient features to better manage the heavy lifting of even the most complex warehouse or distribution center.

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SECTOR REPORTS TRANSPORTATION

BY JOHN R. YUVA, CONTRIBUTING EDITOR

PAVING THE PATH TO

PLATOONING Platooning system technology can yield significant driver productivity gains while also addressing the growing driver shortage.

▼ Autonomous trucks will likely roll out in four waves beginning with constrained platooning of trucks with a driver involved, before the next stages of constrained autonomy and full autonomy without driver involvement.

hen it comes to automation, autonomous vehicle (AV) technology is rapidly progressing from concept to application. So much so that in early January, the U.S. Department of Transportation rolled out the Automated Vehicles 4.0 initiative. While several companies are testing autonomous food delivery vehicles in urban settings, innovation is also occurring in the heavy-duty, Class 8 vehicle segment. However, to reach the stage of mainstream autonomous truck delivery in food and beverage, platooning will play a significant role. Allied Market Research, Portland, Ore., reports that the global truck platooning market size was valued at $500.9 million in 2017, and is forecast to reach $4.590 billion by 2025, a CAGR of 32.4% from 2018-2025. North America accounts for the largest segment of the truck platooning market. In its report “Distraction or Disruption? Autonomous Trucks Gain Ground in US Logistics,” McKinsey & Co., New York, finds companies will see autonomous trucks roll

Constrained platooning of trucks

2018–20 Driver in each truck

• 2 drivers platoon 2 trucks on interstate highway • Drivers drive individually on noninterstate highway

2022–25 Driver in leading truck

out in four waves—in a platooning formation. The first wave begins with two trucks, each with a single driver, and then gradually transition to wave four, which has two or more fully autonomous trucks. When platooning technology is engaged, drivers primarily drive as usual while wireless technology links each vehicle, says Mark Petersen, vice president of temperature-controlled logistics for C.H. Robinson, Eden Praire, Minn. A forward-looking radar sensor senses obstacles ahead and automatically applies brakes in both trucks faster than humans can. “When platooning, trucks can travel closer together than what’s safe when drivers are manually driving. The shorter gap between trucks positively alters aerodynamics, reduces wind resistance and results in fuel savings for both trucks,” he says. “As self-driving capabilities in trucks increases, so do the savings. In a two-truck platoon, removing one driver from a truck (partial autonomy) can lead to 15% savings per mile, and removing drivers from both trucks (complete

Constrained autonomy

2025–27 Driver for pickup and drop-off

Full autonomy

2027+ Driverless

• Platooning only on interstate highway between dedicated truck stops with 2 trucks, with single driver in leading vehicle

• Autonomous trucks ride on interstate highway without drivers (platooning 2 or more trucks when possible)

• Autonomous trucks drive individually on all highways and in platoons of 2 or more trucks

• Drivers drive individually onnoninterstate highway

• Drivers drop off trucks at dedicated truck stops

• Driver involvement eliminated throughout the journey100%

autonomy) could lead to 40% cost savings per mile.” Peloton Technology, Mountain View, Calif., also continues to invest in the potential of platooning. Food Logistics interviewed Joyce Tam, vice president of customer programs for Peloton, to gauge platooning insights and advantages for food and beverage companies.    FOOD LOGISTICS: How can platooning most benefit the food and beverage industry? TAM: Connectivity is transforming the commercial trucking industry by enhancing highway safety, driver awareness and providing significant economic/efficiency benefits for fleets. Truck platooning allows commercial fleets to save fuel, improve safety and glean operational insights about routes or the health of fleet vehicles. This can be especially useful when transporting perishables, which require fleets to maintain tight delivery schedules along dedicated routes. Deploying truck platooning systems can also provide a significant competitive advantage to food and beverage fleets that today commonly operate on razor-thin margins; this includes providing them with approximately 7% fuel efficiency gains across a pair of platooning trucks, reducing safety-related incidents and delays through the utilization of linked active truck safety systems and building in new operational efficiency enhancements. Using platooning systems also present opportunities for food and beverage fleets to achieve fuel efficiency-related reductions in CO2 emissions and other harmful particulate matter expelled through the combustion of diesel fuel. This can help food and beverage fleets reduce their own carbon emissions or attract new, environmental-

Distraction or Disruption? Autonomous Trucks Gain Ground in US Logistics, 2018 McKinsey & Co.

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www.foodlogistics.com

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PLATOONING AND AUTONOMOUS ENVIRONMENTAL IMPACTS

Platooning has other potential impacts beyond the road. Mark Petersen, vice president of temperature-controlled logistics for C.H. Robinson, Eden Praire, Minn., highlights four areas where structural, regulatory and employee changes are likely to occur.

ly-conscious customers looking for fleets that can help them better achieve their logistics-related sustainability goals.    FOOD LOGISTICS: What has Peloton Technology learned through its customer pilots? TAM: We have learned through customer pilot activities, many of which have included partnering with food and beverage fleets, that fleet drivers enjoy the driver teamwork and enhanced roadway awareness that comes with platooning drivers traveling routes together. The platooning system allows them to share real-time information about changing road conditions or prepare for lane changes through a push-to-talk radio link and look-ahead video screen that gives the follow driver a view of what’s ahead of the lead truck. In the future, platooning systems will lay the foundation for automated following truck technologies. Peloton’s AutoFollow system, an evolution of the company’s PlatoonPro, utilizes a human-driven lead truck to guide the acceleration, braking and steering of a sensor-equipped, automated following truck. The technology is expected to yield significant driver productivity gains for the trucking industry by doubling the amount of freight a professional driver can haul in a single trip all while addressing the growing professional driver shortage. Professional drivers remain at the heart of piloting both our systems. In the food and beverage industry, this can give these fleets a competitive advantage, as one human in an automated following system and two humans in a platooning system, are physically present to handle on-site delivery and the time-sensitive unloading of perishable cargo. www.foodlogistics.com

FLOG0120_34-35_TRANSP.indd 35

➊ Physical structure adjustments. The physical structures created to support the movement of goods will need to adjust when automation increases. Think of how parking facilities will need to change if and when platooning becomes more prevalent. • If there is just one driver in the front truck, but two or more trucks behind that mimic the front vehicle, what does that mean when they arrive at a delivery point? • How do multiple trucks in a convoy unload at a dock? Is there enough space? Who is going to agree to this? • Are drive-through loading locations going to change to be more like railyards? • Do we need to change how we design distribution centers? We’ll have to ask ourselves if it enables a higher level of efficiency.

➋ Facility resources. Understanding that last point of where autonomy stops and resources are needed to complete the transaction is important. The technology will need to evolve or change to enable this.

➌ Regulations. Regulations have the potential to change too. As autonomous vehicles don’t have to sleep, the hours of service may have to adjust based on the level of automation the industry is experiencing. Having autonomous vehicles on the road could also create a culture of more law-abiding drivers. From speed limits to using blinkers, there’s no human element to refute a law.

➍ Employee roles. Job roles are likely to change. More positions will be smarter vs. task-oriented. One other benefit is that with vehicles being tracked and monitored remotely, there might be better real-time visibility into delivery locations.

   FOOD LOGISTICS: How are today’s food and beverage companies integrating truck platooning into their operations? TAM: Platooning can fit seamlessly into the mid-haul logistics operations of many logistics segments, especially within the food and beverage industry. Through our customer pilot programs, we have platooned with alcoholic and non-alcoholic beverages, baked goods, frozen and prepared foods and products within the restaurant supply chain to transport them from various warehouses to distribution centers. So far, daily platoon miles averaged approximately 600 miles at more than 80% of the approved segments. Of importance to the food and beverage industry, specifically, Level 1 (L1) platooning systems are suited for customers who transport goods using a wide variety of dry vans and refrigerated trailers. These trailer types provide the most improved aerodynamics to maximize fuel savings. Since July 2018, we have worked

with customer fleets from various sectors to better understand how platooning fits into fleets’ existing operations and to introduce customer fleet drivers to our platooning system. Some operational fleet data from these trials has shown slightly improved performance for on-time departure due to team driving. Some fleets have implemented a platoon departure time window to ensure that platooning does not introduce operational delays. Through partnerships with fleets in these real-world freight environments, we have been able to apply lessons learned and recommend best practices to streamline operations for future deployment of platooning systems. Trials have also given us new insights into fleet customers’ trailer populations. While working with food and beverage customers, we were able to use different trailer configurations to perform additional track tests, which helped us improve overall platooning performance and bolster support for a broader range of trailer types.

JANUARY/FEBRUARY 2020 | FOOD LOGISTICS

2/4/20 12:38 PM

SECTOR REPORTS SOFTWARE & TECHNOLOGY

BY GIGI WOOD | STAFF WRITER

TRENDS IN GROCERY SUPPLY CHAIN WAREHOUSE MANAGEMENT SYSTEMS Logistics experts discuss the latest in warehouse management systems for grocery and online retail supply chains.

hallenges of online grocery continue to plague the industry. From keeping up with regulations to integrating the correct equipment to an increased demand in online grocery, there is seemingly no end in sight. That’s why more grocers are adding warehouse management systems (WMS) to their logistics network. The size of the overall grocery market, which includes both instore and online sales, is expected to reach $678 billion this year, according to a report by IBISWorld, New York. Online grocery currently makes up just a fraction of that number, but will only grow in the years to come. While it was reported in February 2019 that 3% of U.S. grocery shopping occurs online, by December 2019, just 10% of shoppers were regularly shopping online for groceries. And, according to a Gallup study published in August 2019, 81% of Americans never order groceries online, while 11% say they do once a month. But, the slow adoption of online food ordering could indicate that consumers enjoy picking their own groceries in person, or that they don’t see sufficient savings of time or money to justify the switch, the Gallup study says. So, what does this mean for the future of WMS in grocery?

Industry challenges

“Customers in the food retail space face challenges that are fairly unique,” says Adam Kline, senior director, product management at Manhattan Associates, Atlanta. “Only, perhaps, the pharmaceutical and beverage industries face the

FOOD LOGISTICS | JANUARY/FEBRUARY 2020

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level of regulatory rigor that food WMS, must morph to approximate retailers (and food distributors) closer to an e-commerce-type proface.” cess,” Kline says. “To be effective in Today’s grocers must use WMS such an environment, a WMS must that satisfy regulations while also excel both in retail store fulfillment meeting business needs. and e-commerce fulfillment. By “A WMS must enable food commastering both styles of fulfillment, a food retailer can drive efficiency, panies to comply with ever-changwhile simultaneously gaining an ing and ever-tightening regulation. Core capabilities such as expiration edge on their competition.” date tracking, batch tracking, FIFO (first-in/ first-out) and FEFO (first-expiration/first-out) allocation, and robust transportation routing and planning are key areas a WMS must excel,” says Kline. “Other areas, such as cross docking and flowthrough distribution add a layer of efficiency that is critical in an industry where An efficient warehouse management system allows retailers to keep complex processes that go into warehousing and distributing food, margins tend to while operating simpler systems at the store level. be thin.”

Integration of multiple systems

When implementing delivery and pickup options for online grocery shopping, grocers may have to add functionality to existing in-store systems that were previously only included in on-site inventory and point-of-sale systems. “As food retailers grow beyond just replenishing their stores and begin to reach customers in a more direct manner, the operational procedures, and hence, usage of the

To manage fulfillment, many retailers use “dark stores,” or centralized distribution centers that have layouts similar to the store, but are not open to the public. “Progressive food retailers will work out how to manage deliveries to their direct customers from the local store via curbside delivery or via third parties, such as Instacart,” Kline says. “To eliminate disruption within the store, however, managing direct deliveries from the warehouse can appear to be a good

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Integrating POS with WMS

In-aisle picker congestion and rectifying product substitution are trending issues associated with grocery retailer WMS systems. “Grocers are trying to figure out how to balance the customer satisfaction aspect of it, the cost aspect of it and the service aspect of it,” says Fred Rudolph, account executive with Fortna, West Reading, Pa. WMS allow grocer retailers the flexibility to adjust and improve processes to enhance customer satisfaction. “Another reason why WMS are a good value proposition for a grocer is that if customers that shop in the stores get inconvenienced by professional pickers who are picking orders for a curbside or home delivery, when a store is really crowded on Sunday and the customers realize that a third of the people that are in the store are picking the orders for other people, it creates congestion, and it can reduce the customer satisfaction of the customers that are actually shopping for themselves in the stores,” he says. “A lot of them started piloting programs, like taking orders in the store. And, that’s a current normal chain of theirs and they will replenish those stores based on their existing processes.” Still, substitution of products is an issue that retailers are hammering out, though. “When you’re shopping, you go to the grocery store, you see that [one tomato sauce brand] is out, but [another brand] or multiple other tomato sauce brands are available,” he says. “We as shoppers will just decide, ‘Okay, well what I want is the 24-ounce can, I don’t care about the company (brand) or I do care about the company and

Some stores also integrate in-store inventory systems with their WMS, says Jon Kuerschner, vice president of supply chain consulting, HighJump, Minneapolis. “The WMS is directly integrated with the point of sale. The WMS provides the inventory visibility, provides all of the receiving in the back, as well as the picking pro-

Picker congestion and product substitution

cesses for either a customer pickup or a courier-executed delivery,” he says. That integration links in-store systems with the dark stores to help pickers find items on their lists. “Oftentimes, the stores don’t carry enough of the commodity products to be able to support that many in-aisle shoppers [for] customer pickups,” Kuerschner says. “They also have pickers that are working in geographically-centered dark stores picking commodity items and then, via couriers or an internal fleet, delivering it to the store and marrying it up with the rest of the customers’ orders. We’re www.foodlogistics.com

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I’ll just get two 14-ounce cans and just waste the last 4 ounces. You make those decisions yourself, but if a picker makes that decision and then you’re not happy with the result, it might not be a big deal, or it might be a big deal.” That’s why grocer retailers are actively working on better solutions to substitution, he says. “A lot of the grocery chains are trying to get this right because you don’t want to antagonize your store-shopping consumers, but you also want to make it a good value proposition for those customers who do want to use curbside or home delivery, so that it’s a winwin for everyone,” Rudolph says. There are several ways a WMS can help improve efficiencies and integrations within grocery retail operations. From automation and inventory mapping to improving productivity through the use of other technologies, the challenges of online grocery persist, regardless if items were purchased in-store or online for pickup. But, as customer demands for shopping options increases, and grocery retailers continue to expand their shopping channels, implementing WMS continue to help them stay ahead of today’s-and tomorrow’s--trends. Go to https://foodlogistics. com/21112791 to learn more about the different ways WMS can enhance grocery retail operations.

Yozayo / iStock / Getty Images Plus

seeing that as a growing trend, and the reason for it is simply space, and then also the in-aisle congestion.”

Getty Images

to keep g food,

option. In this scenario, a WMS must be flexible enough to handle both movements of large quantities required by store fulfillments, but also smaller quantities required by the direct customer.”

As customer demand for shopping options increases, implementing WMS continues to help grocery retailers stay ahead of today’s--and tomorrow’s--trends.

JANUARY/FEBRUARY 2020 | FOOD LOGISTICS

2/4/20 1:02 PM

SECTOR REPORTS OCEANS & PORTS

BY CYNTHIA Y. MCCANN, FREELANCER

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EMERGING TECHNOLOGIES Discover how AI, IoT and blockchain are ushering in improved operations and visibility for ocean ports and carriers..

hile ocean carriers handle 90% of the world’s trade, the sector itself lags in the adoption of technology. However, changes in shipping are currently underway, allowing companies to engage in a competitive race to incorporate artificial intelligence (AI), Internet of Things (IoT) and other emerging technologies to improve operations, visibility and decision-making. AI-based software helps ocean carriers process massive amounts of information at high speeds. Results range from increased fuel efficiency to optimized transit times, while access to more detailed and actionable information is becoming more beneficial for cargo owners. That’s because AI can be deployed in several areas of maritime navigation, such as managing vessels, port traffic and vessel maintenance. In addition, the technology is being developed for the use in autonomous vessel operations. But, reducing vessel emissions and improving fuel efficiency remains an ongoing goal. For example, in June 2019, Fujit-

su and Kongsberg unveiled a new tool called Vessel Fuel Optimization (VFO), which takes information from a vessel’s Vessel Data Recorder and uses AI to learn the ship captain’s strategy and the vessel’s performance, then combines them

o n p co with meteorological and hydrographic forecasts to provide the best routing for maximum fuel eﬃciency, safety and proﬁtability. The solution is particularly timely following the Jan. 1 implementation of the International Maritime

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Sea Machines Robotics

Sea Machines Robotics’ AI-powered situational awareness and advanced perception system in use on a containership.

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2/4/20 1:28 PM

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Maersk Line’s new Remote Container Management platform and Captain Peter virtual assistant are among the most recent solutions introduced to the market. Maersk

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Sea Machines Robotics

Organization’s (IMO) new restrictions on sulfur emissions from bunker fuel. At the same time, the sector is grappling with the risk associated with cybersecurity. In June 2017, for instance, Maersk, Denmark, was hit by the NotPetya cyberattack, which wiped out its entire IT network within seconds. Recovery time took 10 days, costing the company between $250-300 million. An array of emerging technologies targeting ocean carriers are not only coming from tech companies, but also from the shipping companies themselves. Maersk Line launched its Remote Container Management (RCM) platform in 2015 to provide beneficial cargo owners with real-time GPS tracking of their containers and other features, such as temperature, CO2 and humidity monitoring. The latest enhancement to RCM, a smartphone app named Captain Peter, is a virtual assistant that alerts shippers when conditions inside a container go outside of spec, or if the container experiences some other breach (ie., is dropped, the door is opened, etc.). OceanPro, Maersk’s technology accelerator program targeting startups in India, supports developments in AI/machine learning, blockchain, image analytics, IoT, fintech and augmented reality/ virtual reality (AR/VR). “There are several startup accelerators in Bangalore, but OceanPro is a pioneer in start-up accelerators in the shipping and logistics domain,” says Sriram Narayanasami, global commercial process head at Maersk. “In India, we have 29,000 customers; every one in five dry containers go on a Maersk vessel and every one in four refrigerated container goes on a Maersk vessel. With such a

www.foodlogistics.com

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large customer base, we are able to test some of the solutions with our customers.” Meanwhile, CMA CGM, France, partnered with Infosys, India, and Shone, San Francisco, to develop AI systems on board container ships. Shone’s technology protects

the seafarers, as well as the vessel. Autonomous ocean carriers are also becoming a reality, but seafarers will still be onboard and at risk. Shone’s AI system provides an anti-collision alert system, using data from the ship’s existing sensors—more speciﬁcally, radar

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VISIT FOOD LOGISTICS ONLINE FOR: • Digital editions of the magazine • Channels of content specific to technology, cold chains, 3PL/4PL, and risk/compliance and more • Upcoming educational webinars • Nomination information for the following industry awards: Food Logistics Champions, Top Green Providers, Top 3PL & Cold Storage Providers, and FL 100+ • E-newsletter subscriptions • And more!

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and cameras—as well as navigation assistance for piloting and safety decisions. Boston-based Sea Machines Robotics launched proprietary technology that connects to the vessel’s propulsion system to create autonomous and/or remote-controlled capabilities. Recently, the U.S. Coast Guard and American Bureau of Shipping approved use of the company’s SM200 wireless helm on a class of U.S. ﬂag tugboats. Remote-controlled vessels give the primary operator ﬂexibility to command from locations other than the vessel’s wheelhouse, thereby maximizing visibility and providing safer transits. Maersk uses Sea Machines Robotics’ Enhanced Situational Awareness for its Winter Palace ice-class containerships. Sea Machines Robotics also integrated encrypted software to protect hardware and software from cyber vulnerabilities.

“Sea Machines’ AI-powered situational awareness and advanced perception system is currently being trialed aboard a Maersk container ship in Denmark. Expected for release to commercial markets for ships and other vessels later this year, this intelligent system merges computer vision, LiDAR, thermal sensors, radar, AIS, GPS and ECDIS charts on a real-time, intuitive display to provide unprecedented situational awareness and visibility that is far superior to the human eye across all conditions,” according to Michael Johnson, founder and CEO of Sea Machines Robotics. “As we approach commercial release of this product, it’s clear that Sea Machines lowers at-sea risk, reduces manual eﬀort and improves ships’ predictability and performance.” CargoSmart, Hong Kong, uses a combination of AI, IoT and blockchain solutions to enhance transparency for ocean carrier shipments. The company uses block-

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chain to make documents more traceable by linking them together for accurate tracking, followed by a tamper-proof audit trail and then context-based documentation for validation and collaboration, which triggers alerts when data inconsistencies or deadlines occur. In addition, CargoSmart’s ForeSea solution provides a holistic view of the shipping process, allowing the customer access to a vessel’s departure, location and ETD. Predictive insight allows the customer to analyze and make better decisions about their shipments. Ultimately, emerging technologies are ushering in a new era for ocean shipping, including a more digital, connected and cost-eﬀective supply chain. Better crew management and safety, fewer human errors and mitigated risk are some of the most important beneﬁts, along with improved cargo care and customer service.

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KNAPP Logistics & Automation ................................. 33 MSC Mediterranean Shipping Co .............................. 43 Old Dominion Freight Line Inc .................................... 15 The Raymond Corporation ........................................... 5

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JANUARY/FEBRUARY 2020 | FOOD LOGISTICS

2/4/20 1:29 PM

BY DON DURM

FOOD (AND MORE) FOR THOUGHT

FDA to Regulate Transportation T DON DURM, vice president, customer solutions for PLM Trailer Leasing, and member of IRTA board of directors

here have been little signs to indicate that the Food & Drug Administration (FDA) specifically targeted transport companies for enforcement under the revised Food Safety Modernization Act (FSMA). But, the FDA is in the process of preparing enforcement in transport, which means now is the time for trade organizations and transportation companies to update their transportation supply chain networks. While different food safety laws have been laid out for many years, FSMA is different. To start, the FDA will be one more entity regulating transportation. Under FSMA’s Sanitary Transportation of Food (STF), the agency will be holding carriers to a standard of industry best practices “because it is our intent to pattern this rule on existing industry best practices.” This comes years after not having a unified best practice to ascribe to.

ing and the scientific community to establish a comprehensive industry best practice. The result was the issuance of the globally accepted IRTA’s Refrigerated Transportation Best Practices Guide. Food producers and retailers have commonly ascribed to one of the certification bodies from the Global Food Safety Initiative (GFSI) to ensure food is being produced to the highest standards. The IRTA board of directors recognized the need to take the next step toward certification and leverage the global acceptance of IRTA’s Transportation Best Practice Guide. That’s why it developed the Cold Carrier Certified designation.

perishable products. In April 2019, the formal program was introduced with the following companies achieving the Cold Carrier Certified designation—Frozen Food Express (FFE) Transportation Services, Dallas, Texas; Great Plains Transport, Mapleton, N.D; JB Hunt, Lowell, Ark.; Midwest Refrigerated Services, Inc., Pleasant Prairie, Wis.; Trailiner, Springfield, Mo.; WEL Cos., Joliet, Ill.; Charger Logistics Inc, Ontario, Calif.; Congebec, Mississauga, ON; and Sethmar Transportation Inc., Overland Park, Kan.; and KeHE Distributors, Naperville, Ill. (Go to page 14 to learn more about how KeHE became Cold Carrier Certified).

Cold Carrier Certified program

Why get certified?

The Cold Carrier Certified program requires company participants to submit proof of conformance to, and adoption of, the Refrigerated Transportation Best Practices Guide Second, the carrier management Establishing industry personnel must undergo proof of practice knowledge on specific requirements from the guide. The Cold CarriThe board of directors for the er Certified designation ensures International Refrigerated Transporshippers and tation Association (IRTA) receivers that under the parent the carrier has organization of aligned their the Global Cold business and Chain Alliance personnel to (GCCA), Alexandria, es Guide n Best Practic Transportatio Refrigerated the highest Va., recognized industry stanthis challenge and dards for their commissioned a commitment 2-year taskforce to to sanitary bring key cold chain and safe stakeholders from transpormanufacturing, 3PLs, tation of transport, warehousitary Transpor

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Just because your company may not have experienced enforcement of the STF yet doesn’t mean you’re in the clear. As the FDA increases their reach for audits, the transportation sector will be impacted by the requirements in the future. From a regulatory preparedness perspective, obtaining a Cold Carrier Certified designation will help companies and personnel prepare for such an audit. As a carrier, obtaining the designation will be beneficial in competitive situations to demonstrate ascribing to the highest industry standards of transporting food in a sanitary and safe manner. As a shipper of food, the STF Act designates the regulatory accountability to provide safe transport of food, and will look for companies to obtain the Cold Carrier Certified designation. www.foodlogistics.com

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