Food Chain Digest Edition 1 2024

EDITION 1 • 2024

All things food supply chain.

THE

POWERFUL

IMPACT

FOOD SHIPPERS OF AMERICA OPTION 1

OF ESG ON

SUPPLY CHAINS INSIDE:

New Safety Mindset Marks Road Ahead

Electric Vehicles Show Promise

Mitigating Supply Chain Risk

Food Shippers and Retail Truckload Carrier Service

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1

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FOOD CHAIN Digest

Edition 1 2024

EDITION 1 • 2024 Published three times a year for: Food Shippers of America 1144 East State Street, Suite -288A Geneva, IL 60134 847-302-1496 executivedirector@foodshippers.org www.foodshippers.org Published by: MindShare Strategies, Inc. Ponte Vedra Beach, FL 32004 USA 952-442-8850 www.MindShare.bz

All things food supply chain.

IN THIS ISSUE

10

FOOD SHIPPERS OF AMERICA OPTION 1

COVER STORY

Billing Address: MindShare Strategies, Inc. P.O. Box 843 Springfield, TN 37172 USA

10

Group Editorial Director and Publisher: Brian Everett, ABC 952-442-8850 x201 brian@mindshare.bz Editorial Content This Edition: Faith Boone Karen Kroll Courtney Bloom Conrad Winter Brian Everett

MESSAGES 4

Food Shippers 2024 Annual Conference: Content Reflects Key Challenges, Opportunities

By David Domenic, President, Food Shippers of America

Design/Production Manager: Todd Pernsteiner 952-841-1111 todd@pernsteiner.com

6

What’s at the Core of Your Supply Chain?

By Brian Everett, Publisher

Accounting/Administration/Circulation: Karen Everett 952-442-8850 x203 karen@mindshare.bz

FEATURES

Advertising Sales: Cassidy Mullins 952-442-8850 ext. 215 cassidy@mindshare.bz

©2024 MindShare Strategies, Inc. All rights reserved. Contents may not be reproduced by any means, in whole or in part, without the prior written permission of the publisher. The opinions expressed in this publication are not necessarily those of MindShare Strategies, Inc., nor Food Shippers of America.

Printed in USA.

Food Shippers of America Board

7

What the Truck? Electric Vehicles Show Promise

18

Where is the Talent?

Finding the Next Generation of Supply Chain Leaders

22

Mitigating Supply Chain Risk

26

Dollar General Uses AI to Optimize Produce Ordering

Food Shippers of America Executive Director Paul Newbourne

Board Advisors Motor Carrier: Craig Paulsen Schneider

27

President David Domencic ARMADA

3PL Advisor: Chris Wilkes, Celtic International

No Truck Parking: A National Safety Concern

29

Vice President Earnie Seibert Food Shippers of America

Railroad: Jonathan Tinker BNSF Railway

A New Safety Mindset Marks the Road Ahead

MARKET INTELLIGENCE

Secretary Darica Schneider Univar Solutions Treasurer Earnie Seibert Food Shippers of America Board Chair Steve Stein Danone North America Board Members Clyde Coleman Performance Foods Group

Technology Advisor: Jim Mueller Food Shippers of America Media Advisor: Mary Kearney Tucker Freight Lines

The Powerful Impact of ESG on Supply Chains

32

18 22

29

Buyer’s Guide

7

FSA Media Committee Stace Knabel Promise Delivered Jon Pruitt Nutrabolt

Chris Domey Ocean Spray Eric Kaufold, Smithfield Lori Lammers Dawn Foods

www.foodshippers.org |

3

FROM THE TOP

FSA President David Domencic, Director Transportation Procurement, ARMADA Supply Chain Solutions

Food Shippers 2024 Annual Conference: Content Reflects Key Challenges, Opportunities The 68th Annual Conference by Food Shippers of America takes place March 3-5 in Orlando, FL, and the content reflects current opportunities and challenges facing today’s food shippers. I’d like to give you a peek at what to expect: Transportation Outlook and What to Consider. In the aftermath of the pandemic, supply chains are becoming more integrated into business strategies. The C-suite now understands the value of holistic supply chains rather than treating them as a series of cost centers to attack for savings. Eric Starks of FTR explains key supply chain indicators expected to shipper costs along with a forecast and risk assessment to help craft a better supply chain strategy.

Top 10 Challenges in Trucking. From workforce shortages to infrastructure challenges and environmental mandates, the issues that impact the trucking industry ultimately affect the entire supply chain. American Transportation Research Institute President Rebecca Brewster will share ATRI’s findings on major concerns and what the industry is doing to address each.

How Artificial Intelligence (AI) Will Impact Your Supply Chain. Today’s supply chain will be impacted by advances in audio, video/face recognition, and data surveillance.

Professor Ken Goldberg presents advances in AI, robotics, and networking and the potential dangers they raise in security and privacy.

4 | FOOD CHAIN DIGEST • EDITION 1 • 2024

The Future of Supply Chain Talent.

The modern workplace has increased levels of uncertainty leading to individuals becoming burned out, disengaged, unfulfilled, and unhappy. Joshua Evans is helping people to destroy toxic workplace preconceptions and pursue a future of work where they find deeper purpose in what they do. In addition, Dr. Stephanie Thomas with the University of Arkansas solicits candid feedback from recent college students working as interns in the supply chain departments of food companies and their views on ideal work environments.

Gender Diversity: A Path to Success. Diversity continues to be an important business strategy for many companies in the food logistics and supply chain industry. Jennifer Hedrick, President and CEO of the Women In Trucking Association and Brian Everett, Publisher of Redefining the Road (WIT’s official magazine) provide insights on the direct link between diversity of talent, thought, and experiences to the ability for a company to deliver optimum value and results.

The Leading Edge to Optimizing Relationships. Collaboration is critical to business success and managing strategic partnerships is crucial.

Competitive advantage is gained when you optimize partnerships and alliances. Carey Lohrenz explains how deeper relationships with partners can be the key to long term success and growth.

Annual Economic Update. Bob Costello, Chief Economist and Senior Vice President of the American Trucking Association returns to present current economic data and its effects throughout the Supply Chain.

New this year: We’re adding educational sessions to the conference agenda on Sunday of the conference so make sure to take it all in. A special thanks to this year’s Conference Co-Chairs: Lori Lammers, Senior Director of Transportation, Dawn Foods Global; Darica Schneider, Senior Director Transportation Operations, Univar Solutions; and Darlene Wolf, Senior Vice President, Strategic Partners at Arrive Logistics.

See you in Orlando!

2024 Keynote Speaker Cal Ripken Baseball’s all-time “Iron Man” and an American icon.

His playing career spanned 21 seasons with his hometown Baltimore Orioles. After retiring from the game he remained dedicated to baseball through the establishment and growth of Ripken Baseball and the Cal Ripken, Sr. Foundation. He works with Major League Baseball and the U.S. State Department to keep kids from all walks of life engaged with the sport of baseball and use the game to spread goodwill.

Where Quality Meets Your Plate OUR ROLE IN THE SUPPLY CHAINS POSITIVELY IMPACTS LIVES—AND WE’RE PROUD OF THAT. We consistently elevate industry standards by exceeding global benchmarks for food safety while achieving the highest BRC scores and AIB sanitation ratings. We ensure the exceptional quality of your product is maintained through the supply chain and all the way to your consumers’ plate.

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5

LETTER FROM THE PUBLISHER

Brian Everett, Publisher Senior Partner, MindShare Strategies 952-442-8850 x201 brian@mindshare.bz

What’s at the Core of Your Supply Chain?

It’s mind-blowing to think about the evolution of the supply chain in the food industry these last few decades. In the 1960s and 70s, physical distribution was becoming more important but supply chains as a concept didn’t even exist.

Trucking deregulation in the 1980s saw an explosion of logistics options and opened minds (and doors) to a more complex process of planning, implementing and controlling food chains to satisfy growing customer demands. In the 1990s and 2000s, ERP and advanced planning and scheduling along with globalization opened new business possibilities. Then AI, data, and the Internet of Things IoT have accelerated it all – but the pandemic helped the general public understand the critical importance of supply chains worldwide.

But there’s an entirely more complex dynamic with today’s supply chain. The modern (digital) supply chain enables food companies to use highly advanced and integrated technology to ensure the expansion of the customers’ portfolio.

However, more complex issues in governance, food safety and security, geopolitical and climate events, social concerns, and a shortage of human talent all have a tremendous impact on today’s supply chains. This edition of Food Chain Digest will spotlight some of these issues: Environmental, social and governance.

ESG concerns have come to the fore in recent years as food companies felt the strains of supply chain disruption due to the pandemic in particular. Supply chain ESG challenges range for food shippers from staying aware of evolving regulatory frameworks and how to reduce Scope 3 emissions to ensuring a diverse and capable workforce. In

6 | FOOD CHAIN DIGEST • EDITION 1 • 2024

this article on page 10, we also take a look at some of biggest ESG priorities for leading food brands such as ADM, Conagra, Coca-Cola, Hershey, Hormel Foods, KraftHeinz, Kroger, and Nestle.

Finding next-generation talent. Clearly one of the biggest challenges currently facing food supply chains is recruiting and retaining qualified talent to keep their goods and information flowing – particularly as Baby Boomers and Gen Xers leave the workforce. This feature article on page 18 gives advice and best practices on how to keep pace with talent demand and creative ways to reach new and younger talent.

Mitigating supply chain risk. No food company is immune to risk. They range from supply disruptions, supplier relationships and project disorganization to financial, legal, environmental, and sociopolitical. In our feature article starting on page X, Tyson Fresh Meats

and The Hershey Co. share ideas and best practices on how they avoid disruptions and improve their readiness when they do happen. Another significant factor that can negatively impact on-time supply chain deliveries is the lack of truck parking. Our article No Truck Parking (page 22) addresses how this chronic problem has the potential to place professional truck drivers in an untenable position to either violate hours-of-service regulations or park in unsafe, unauthorized locations.

Safety in the supply chain. With all the challenges in the supply chain, staying on top of protecting the freshness and integrity of food shipments is vital.

In our article beginning on page 27, several experts educate us on the fact that while not a new concern in food logistics, safety touches two very hot buttons today: truck driver turnover and high insurance rates.

Top Concerns/Opportunities of Food Shippers We’ll cover all these issues in this (and upcoming editions) of Food Chain Digest in 2024.

• Environmental, Social and Governance (ESG) • Talent Recruiting and Retention • Supply Chain Risk Mitigation and Management • Safety Practices in Food Handling and Supply Chain Activities • Economy and Demand Forecasting • Rising Supply Chain-Related Costs • Technology and Supply Chain Visibility (and Cybersecurity) • Regulatory Compliance • Emerging technologies, such as driverless and electric vehicles

EV photos: NACFE Run on Less – Electric DEPOT

?

K C RU

FEATURE

T E H TT

C I R T C E S L E E HICL VEOW SHOMISE PR WHA

For manufacturers, retailers and distributors in the food and beverage industry that operate their supply chains using their own freight transport equipment, deploying battery electric vehicles (BEVs) within fleets has been an uphill battle, but the results of the North American Council for Freight Efficiency (NACFE) Q3 2023 Run On Less (ROL) pilot reveals that the road ahead may be evening out.

Shown: Mike Roeth interviews Dejan Antunovic, Electrification Program Manager, PepsiCo, with Tesla SEMI in background.

www.foodshippers.org |

7

FEATURE In particular, ROL participant PepsiCo observed some trucks in its fleet of Class 8 Tesla BEVs making the mountainous trek from Sacramento to Nevada and recovering their charge on their return, thanks to regenerative braking.

PepsiCo’s fleet of Teslas demonstrated their ability to achieve high range with a fullyloaded tractor. The vehicles combined with 750KW charging stations that can restore bars to 95% from five or 10% in 20-30 minutes, shows the potential for beverage shippers performing regional deliveries with different shifts of drivers sharing trucks.

Amanda DeVoe, Director of Fleet Transformation and Strategy at PepsiCo told Food Chain Digest: “In addition to the benefit of regenerative breaking to extend

charge, we have also gathered key learnings in the value of a high rate of charge to maintain business continuity and neutralize charging in slip seat, continuous transportation operations.”

Another ROL participant, OK Produce, which distributes produce throughout California, experienced a regenerative boost as well. Their Freightliner eCascadia semis ran 80- to 120-mile delivery routes through hilly terrain and returned to base with charges as high as 47%, according to OK Produce Director of Transportation, Bob Thomason in a ROL video.

OK Produce’s Orange EV yard tractors benefited from regenerative braking too—but from frequent starting and stopping.

OK Produce’s experience in ROL showed regenerative breaking, the ease of onsite charging, and the

reduction of diesel exhaust around the terminal make yard trucks an optimal duty cycle for BEVs. According to Mike Roeth, the Executive Director of NACFE, yard trucks are also a good choice for food shippers considering BEVs for the first time. “They’re a great place to start today because they’re easy to do, get into and start learning for fleets.”

Light trucks are another BEV application that shined in the ROL pilot.

Stop and start delivery routines and exhaust-producing terminal operations in urban environments have long been crying out for electrified fleets.

ROL participant, Frito-Lay demonstrated the possibilities with their fleet of Ford E-Transit delivery vans.

Portable Chargers are used at US Foods’ La Mirada, CA location and can be easily relocated to other facilities.

8 | FOOD CHAIN DIGEST • EDITION 1 • 2024

FEATURE

Mike Roeth interviews Amanda Devoe, Transformation and Strategy Director, PepsiCo, with Tesla SEMI and BYD Terminal Tractor in background.

Jordan Ratcliff, the Electrification Strategy Manager at Frito-Lay told Food Chain Digest: “Small format delivery vehicles are a solution that is ready to scale, particularly in urban and compact environments.

“Most routes are less than 40 miles per day at FritoLay’s Queens, NY distribution center. This duty cycle allows for highly scalable adoption and meaningful emissions reductions in areas that are often congested, noisy and face significant air quality challenges.”

Noise reduction is more than a nice-to-have for serviceconscious food shippers and their customers. In a ROL video, Tim Marten, the Southern California Area President of US Foods shares, “We have hospitality clients that love when electric vehicles pull up because it doesn’t wake up their guests.”

Additionally, Marten says clients value seeing zeroemission vehicles in the fleet more than ever. “We have large accounts that have their own GHG goals and our trucks contribute to their lower emissions.”

Mike Roeth interviews Hernesto Sandoval, Transport Driver, PepsiCo, with Tesla SEMI in background.

PepsiCo recently committed to cutting its GHG 75% by 2030. Like other food shippers with ambitious ESG goals, they are looking to BEVs for answers today.

Roeth’s advice for companies holding off for the right time to invest in a BEV fleet is to get started now and learn about the field.

The results of the ROL program show viable options in regional heavy-duty trucks, yard trucks, and light-duty vehicles that are ready and waiting.

“Get your truck OEM and your charging people and your utility. Get those relationships together Because if you wait, you’re going to get run over with trying to do too much too fast later on.” www.foodshippers.org |

9

COVER STORY

THE

POWERFUL

IMPACT

OF ESG ON

SUPPLY CHAINS 10 | FOOD CHAIN DIGEST • EDITION 1 • 2024

Environmental, social and governance (ESG) has quickly become a hot button for food manufacturers, retailers, wholesalers and distributors.

For leading companies like Nestle, General Mills, Kelloggs, Kraft, and Wrigley, not only is ESG a moral imperative but it’s a good business practice.

COVER STORY

SUPPLY CHAIN ESG IS AN APPROACH THAT ACCOUNTS FOR THE ENTIRE FOOTPRINT OF THE COMPANY’S SUPPLY CHAIN OPERATIONS. IT MEANS SEEING DEEP INTO THE SUPPLY CHAIN TO UNDERSTAND WHERE MATERIALS COME FROM, WHOSE HANDS TOUCH THOSE MATERIALS, AND HOW THEY REACH PROCESSING AT THE COMPANY’S SITES.

With global supply chains under more scrutiny, food companies are working to improve resilience, boost efficiency and continue delivering value to customers.

Supply chains have always been critical to the success of all enterprises, but in years past they often operated quietly behind the scenes of corporate operations.

The disruption of the COVID-19 pandemic changed that, revealing the importance of food chains to a wider audience including customers, partners, employees and investors.

ESG Defined At its highest level, ESG covers Environmental, Social, and Governance. At their most basic level, these issues impact a company’s internal dynamics and external footprint. They also encompass how food companies do business and how they impact the world.

Environmental issues encompass everything that has to do with a company’s impact on the environment and the sustainability of its operations – and supply chain activities such as logistics, transportation, warehousing and distribution can have a significant impact on these areas. Emissions, climate change, and a company’s overall carbon footprint can be addressed through ESG. It also can cover use of materials in production and packaging, land and water, as well as pollution and waste responsibilities. Consideration must be given to indirect effects that

occur upstream or downstream, such as greenhouse gas emissions from product use or a company’s supply chain activities, sometimes referred to as Scope 3 emissions.

Social issues cover how a food company’s activities – from hiring workers, to sourcing goods – impact both internal workers and the global supply chain and community. At the highest level, social issues can involve workplace diversity, safe working conditions, fair compensation, employee and consumer data privacy, whistleblower protections, forced or child labor, and conflict minerals.

Governance issues largely relates to a food company’s internal governance structure, including how rights and responsibilities are distributed within an organization.

How a company governs itself, meets stakeholder needs, discloses information, enforces policies and standards, and complies with the law are just a few ways this ties into ESG overall.

Further Exploring Supply Chain ESG Supply chain ESG is an approach that accounts for the entire footprint of the company’s supply chain operations. It means seeing deep into the supply chain to understand where materials come from, whose hands touch those materials, and how they reach processing at the company’s sites.

Digging deeper, ESG and supply chain ESG are inextricably linked.

That is because food companies

cannot truly understand their own ESG position without including the impact of their suppliers or looking at their overall supply chain. Since a large portion of a food company’s ESG footprint can be found in their supply chain, it must be tied to any resultant program.

In addition, improving a company’s ESG position must include a manufacturer’s vast network of partners who provide parts, materials, chemicals, service, and other important components.

As more manufacturers and individuals focus on ESG’s importance, it will be vital to ensure that strategies are in place to address these issues. With a comprehensive view into your supply chain, and an understanding of the various challenges that could affect everything from market access to reputation, you can mitigate risks and create substantive ESG programs that are proactive and transparent.

Additionally, focusing on supply chain ESG gives a food manufacturer greater insight as to where and how materials are sourced. For example, a supply chain ESG framework allows a food manufacturer to make sure its materials aren’t produced with child labor, don’t utilize conflict minerals, and don’t negatively impact environmental sustainability.

Effective supply chain ESG solutions allow a manufacturer to both positively impact the world around them and mitigate risk by anticipating where future shortages or redesigns can occur.

www.foodshippers.org |

11

COVER STORY

ESG SCORECARD HIGHLIGHTS FOR TOP FOOD COMPANIES

Food Chain Digest has done comprehensive research on some of the largest food brands to determine their reported progress and areas of focus in ESG. While this is not a comprehensive list, this gives you a glimpse at some of the progress being made.

Climate, water stewardship, sustainable agriculture, circular packaging, entrepreneurship, diversity, equity and inclusion (DEI).

Focus on ethical business conduct, environmental impact reductions, animal welfare, product safety and quality, and employee safety, diversity and professional development.

Main categories are Feed the World, Protect Nature, and Enrich Lives.

Focus on nourishing people with its foods, feeding people in need, nurture people and the planet by supporting farmers, and conserving natural resources across the company’s value chain.

Expanding transparency on impacts of its operations, products, services, and supply chains worldwide.

Three broad pillars are Healthy Living & Community Support, Environmental Stewardship, and Responsible Sourcing.

High focus on water security strategy and a circular economy for packaging because to reduce waste and carbon emissions.

Advancing positive impacts for people, planet and systems with a framework designed to unlock greater value for the company’s associates, customers, and communities.

Make food that’s safe while addressing environmental and social impacts linked to its products (i.e., responsible sourcing, reducing impact on climate change, preserving water resources).

Priorities drive innovative, more sustainable growth the right way for people and the planet through nutrition and well-being, DEI, and sustainability.

Zero hunger, good health and wellbeing, clean water and sanitation, decent work and economic growth, responsible consumption and production, and climate action.

Focus on people, families and pets (through improved, tailored and affordable nutrition), people & planet (packaging and circularity, climate, water and nature & biodiversity), and people in communities (DEI, human rights, and sustainable sourcing).

Focused on Food (i.e., safety, nutrition); Planet (climate change, eliminating deforestation, regenerative agriculture, water stewardship, packaging, sustainable operations), and People (Human Rights, Workplace Safety, DEI).

Products that meet our specified local, sustainable or well-being criteria; people fostered by diversity and inclusion, and plant through greenhouse gas reduction goals as an example.

Its Brew a Better World 2030 strategy guides the company on a path to zero impact on the environment; an inclusive, fair and equitable world; and moderation and no harmful use.

Sustainability and regeneration of retail and product supply chains, reduce or avoid greenhouse gases from the global supply chain, create more resilient communities, and operate with the highest standards of integrity.

Cocoa sustainability, responsible sourcing and human rights, environment, and people.

12 | FOOD CHAIN DIGEST • EDITION 1 • 2024

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Energy-Efficient Warehouses With motion-activated lighting and pristine spaces, we actively limit our energy usage and the amount of pollution we create.

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C

E

T I A N R G B TH E L E

Where is the Talent?

FINDING THE NEXT GENERATION OF SUPPLY CHAIN LEADERS It’s clear that supply chain management in the food industry is facing a talent shortage crisis. For the long-term solution to this dilemma, it’s critical to address these challenges in the context of Millennials.

Millennials (people born between 1980 and 1995) and Gen Z (born in late 1990s and early 2000s) are a primary source of new talent.

To attract new and younger talent, chief supply chain officers must up their game and ensure that careers in supply chain really appeal to young people, so they know that supply chain is much more than transactional procurement and logistics.

18 | FOOD CHAIN DIGEST • EDITION 1 • 2024

“We actively pursue Millennials and Gen Z recruits through intentional social media engagement and by ensuring purposeful profit that prioritizes the prosperity of all people and the planet – a culture that attracts a younger workforce,” says one supply chain executive with a beverage company.

Keep Pace with Talent Demand Skills shortages are now seen across all points of the supply chain continuum, from sourcing to production, logistics, and delivery of goods and services. The key to attracting these individuals?

Make supply chain management appealing.

“We must do a much better job at telling our own story,” says Angie Freeman, Chief Human Resources

Officer for C. H. Robinson, one of the largest logistics platforms in the food industry.

“Supply chain management is Angie Freeman an exciting and rewarding career.

Positioned at the center of global commerce, the industry makes a difference in the lives of people across the globe by delivering the products they need, when they need them. Let’s tell this story—and not only to university students, but also to young people at the high school and middle school levels.”

It’s also important to know your target audiences, explains Freeman.

For example, Millennials want a clear career path and guidance on what they need to accomplish to be successful in a role, but without

FEATURE being micromanaged. They don’t want to be treated like a number. Millennials prefer supervisors who take a genuine interest in employees’ needs, goals and ambitions. This can be difficult for leaders who have been schooled to maintain a professional distance from subordinates.

Social Hiring: How to Reach New Talent Social media recruitment, otherwise known as “social hiring,” is the use of social platforms to identify, engage and vet individuals the company may want to hire. Recruiting via social media can be more cost-effective than conventional recruitment methods such as on-campus event and in-person job fairs, which often require travel and many work hours to set up and staff.

Social hiring enables organizations to create a unique presence on social media sites that bolsters their brand, showcases their corporate culture and, ultimately, generates interest in people in applying for jobs.

The impact social media has on recruiting is intense, according to Astin Robertson, Senior Director of Enterprise Talent Acquisition with Covenant Logistics: “Millenials and Gen Z use social media to explore. They can see everything about an organization before they go to work there. We at Covenant use social media in our early careers recruiting process to target new college grads – and it’s critical that you intentionally do it. If you can’t see it, touch it, relate to it, comment on it, or write a review on it, they’re not interested.”

SYSCO PARTNERS WITH UNIVERSITIES TO RECRUIT TALENT Sysco Corporation, a leading global foodservice distribution company, recently launched its new ‘Recipe for Sustainability’ program. Through this program, Sysco will collaborate with top universities to explore innovations that will accelerate climate action and lead the industry towards a more sustainable future.

Students at Arizona State University and Pennsylvania State University will have the opportunity to solve real-world challenges and propose innovative, cost-effective solutions to reduce packaging and food waste and the use of plastic in takeout containers.

“Sustainability is not only important to Sysco, it is one of the most frequent topics students ask us about during our college engagement events,” says Neil Russell, Chief Administration Officer for Sysco, who is one of the program’s executive sponsors and was instrumental in its launch. “Through our Recipe for Sustainability program, we’re cultivating partnerships with leading universities to help develop Neil Russell the next generation of sustainability leaders. Last year, students at Arizona State University and Pennsylvania State University worked with Sysco leaders to explore innovative, costeffective solutions to real-life sustainability challenges related to food and packaging waste. This year, we’re excited to expand and diversify the program to include more universities – in the U.S. and internationally in Canada and Great Britain. It is a powerful opportunity for Sysco and the students to work together and provide new perspectives on how we can make the food supply chain more sustainable.”

In 2021, Sysco set an industry-leading science-based climate goal to reduce its direct emissions (Scope 1 & 2) by 27.5% by 2030. Sysco also committed to engaging supplier partners representing 67% of Scope 3 emissions to set their own science-based targets by 2026.

In addition to partnering with Penn State on sustainability innovations, Marie Robinson, Sysco’s former Supply Chain Officer, was recently appointed to the Penn State Center for Supply Chain Research (CSCR®) Board of Advisors. The CSCR® Advisory Board members commit to a two-year appointment where they are active in CSCR®-sponsored programs and events and provide input and guidance for the center’s strategic plan and forward-thinking initiatives, as well as approve faculty research affiliates and fellowships.

Amy Noah, President of JobsInLogistics, agrees. “The company needs to explain what a day in the life is like – and social media is a great solution for this,” she says. “Social media enables you the opportunity to show off your culture, create videos that tell stories and personal experiences of your employees, your leaders, your drivers.

Candidates you’re recruiting want to understand it and feel it from a day-

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FEATURE to-day perspective, directly from those who work for your organization.”

A New Approach for a New Generation Building such demands into career programs for Millennials can be challenging, and each company needs to incorporate its own approach that reflects its unique culture. Here are some tactics that can work well: • Emphasize the unique opportunities for personal and career development, and the importance of learning from failures.

• Reinforce the big-picture significance of the work done by supply chain professionals.

• Highlight the importance of corporate citizenship.

• Develop a positive onboarding experience.

• Make a special effort to build a career map for each individual and monitor/encourage their progress.

• Develop meaningful performance conversations.

Whether it’s leveraging social hiring strategies or partnering with universities, companies are looking at creative and innovative ways to successfully recruit the next generation of supply chain leaders.

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FEATURE

Mitigating Supply Chain No food company is immune to risk, nor does any food company have a fool-proof mitigation readiness with perfect scenario-based action plans to avoid supply chain disruptions.

However, that’s not an excuse for not having improved readiness and enhanced competitiveness through synchronized business and supply chain and procurement strategies. Advanced planning and risk-reward-based supply chain execution is critical.

Consolidating Logistics to Combat Challenges As the meat and poultry processing industry faces challenges such as higher feed costs, demand shifts, and labor shortages, Tyson Foods consolidated its logistics with the development of a newly formed supply chain center. This center is

22 | FOOD CHAIN DIGEST • EDITION 1 • 2024

led by Brady Stewart, who assumed the role of President of Tyson Fresh Meats this year.

“The creation of an enterprise Supply Chain Center further advances our capabilities and enables the John R. Tyson organization to drive datafocused decision making through the expanded use of digital tools,” says John R. Tyson, Chief Financial Officer.

After struggling in its 2023 fiscal third quarter, these consolidated efforts which also include warehouse operations, transportation business and manufacturing and engineering are to combat several challenges the company has faced and return to profitability.

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FEATURE Boosting Supply Chain Capacity Following recent concerns over meeting increased customer demands, The Hershey Co. has developed a multi-year plan to invest U.S. $1 billion in its supply chain. Focused on longevity, the plan includes a new chocolate factory in Hershey, Pa., 13 new production lines, and upgrading 11 existing production lines. The primary focus of these initiatives will be core brands such as Reese’s.

“We enable growth by the availability of our product, consistency and the delivery of high quality, and then also making sure that we bring Jason Reiman capabilities that fit the unique needs of our customers and our customers,” says Jason Reiman, Hershey’s Chief Supply Chain Officer.

Hershey has also turned to outsourcing production to eliminate the number of underutilized production lines. This included moving the company’s Zero candy

production to a third party in Canada which allowed for higher production of PayDay candy bars.

lines” that utilize robotics and automation. “These lines allow for smaller production runs and shorter changeover times,” Reiman says.

“PayDay capacity grew by over 25%, and PayDay was about a fifth of our overall retail Will Bonifant sales growth last year as a result of these moves,” says Will Bonifant, Vice President of Hershey’s U.S. and Canada supply chain.

The food industry’s supply chain is becoming increasingly complex as it continues to expand and evolve. Food shippers must access their appetite for risk, know how to build a framework to predict, assess and manage sourcing risks, and implement best practices to optimize performance and achieve expectations. By doing so, these companies have the ability to enhance resilience and improve competitiveness in the midst of unprecedented and fast-developing market disruptions.

Focusing on flexibility and agility is another key supply chain factor for the company as they implement modular “advanced technology

Hershey views its supply chain as a growth enabler rather than an expense to manage.

Here, Reese’s Peanut Butter Cups funnel through a plant production line.

Managing Known Risks Food companies can use a combination of structured problem-solving and digital tools to effectively manage their known risk portfolio through four steps: 1.

Identify and document risks. Map out and assess the food chains of your major products. Assess each node of the supply chain (suppliers, plants, warehouses, DCs and transport routes). Regularly track your risks.

2.

Build a supply chain risk management framework.

Score each risk based upon three dimensions: impact on the organization if the risk happens, the likelihood of the risk happening, and your company’s preparedness to deal with the risk.

3.

Monitor the risk. Once this framework is established, regularly monitor each risk. An effective monitoring system is customized to your company’s need – incorporating impact, likelihood, and preparedness perspectives.

24 | FOOD CHAIN DIGEST • EDITION 1 • 2024

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FEATURE

Dollar General Uses AI to Optimize Produce Ordering Dollar General is investing in artificial intelligence (AI) to enhance its ordering and stocking of fresh produce at stores.

In this significant move to provide convenient access to fresh affordable foods, Dollar General has joined forces with Shelf Engine for a national rollout of its automated AI-ordering technology for produce.

By the end of fiscal year 2023, this collaboration will see Shelf Engine’s AI technology implemented in approximately 3,000 stores, reaffirming Dollar General’s commitment to addressing food insecurity across the country.

This national expansion follows a successful two-phased pilot that began December 2022 of Shelf Engine’s unique technology in more than 400 Dollar General stores. Its AI-driven platform is designed to generate orders, with a goal of optimizing in-stock levels that directly contribute to providing Dollar General customers with the freshest food possible.

“Adopting Shelf Engine’s AI solutions aligns seamlessly with our mission of Serving Others, helping our teams enhance value and convenience for our customers,” says Allen Warch, Vice President, Food & Fresh Merchandising at Dollar General. “This collaboration is a strategic step toward improving our operational efficiency while serving our customers with improved in-stock levels of fresh produce.”

A recent survey of retail and consumer executives, conducted by KPMG, found that they were 64% likely to apply AI toward trend and predictive analysis for inventory management. Another 2023 survey conducted by supply chain software company BlueYonder found that demand forecasting and inventory optimization are among the top uses of AI and machine learning technologies by supply chain executives.

26 | FOOD CHAIN DIGEST • EDITION 1 • 2024

A Dollar General customer browses the discount retailer’s produce section. Dollar General has partnered with AI specialist Shelf Engine to automate and optimize ordering fresh produce.

FEATURE

NO TRUCK

PARKING: A National Safety Concern

It’s increasingly common to see 18-wheelers parked on highway offramps, side streets, and the shoulder of rest areas. It’s a symptom of a major problem facing food shippers and their logistics partners.

A chronic, nationwide shortage of truck parking is forcing America’s professional truck drivers into an untenable position—either violate federal hours-of-service regulations that mandate rest breaks at specific times, or park in unsafe and unauthorized locations.

Approximately 98% of truck drivers regularly experience this fraught

scenario—a problem that grows more pervasive as cities across the country prohibit trucks from parking within city limits.

The parking shortage isn’t just an inconvenience for truckers and a strain on food chains. It is a serious safety hazard for the entire motoring public—a point that leading law enforcement

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organizations across the nation are now sounding the alarm over.

In fact, according to the 19th annual Top Industry Issues list by American Transportation Research Institute (ATRI), the lack of truck parking is the second top concern. Across all respondents, the economy was selected as the top industry concern in 2023, Daniel Murray,

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FEATURE

APPROXIMATELY 98% OF TRUCK DRIVERS REGULARLY EXPERIENCE THIS FRAUGHT SCENARIO—A PROBLEM THAT GROWS MORE PERVASIVE AS CITIES ACROSS THE COUNTRY PROHIBIT TRUCKS FROM PARKING WITHIN CITY LIMITS.

Senior Vice President for ATRI tells Food Chain Digest. “But the lack of available truck parking rose one spot this year to the secondranked issue, followed Dan Murray by fuel prices. The driver shortage dropped two spots this year to rank fourth overall and driver compensation continued as a topfive industry concern.

The lack of safe parking options also ranks among the top challenges facing drivers today. A recent ATRI study found drivers on average sacrifice 56 minutes of drive time every day to secure parking, amounting to a $5,600 annual pay cut.

28 | FOOD CHAIN DIGEST • EDITION 1 • 2024

What are some actions that food companies can take to help minimize the impact of truck parking shortage on their supply chains? “Food companies can create and allow for safe parking at their production and distribution sites and they can write their Congressional representatives and ask for action to address the problem,” advises Paul Newbourne, FSA’s Executive Director.

“They also can work more closely with their carriers to try and better coordinate arrival and load/unload times in order to facilitate the driver being able to find safe parking within their hours of service restrictions.”

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FEATURE

A NEW

Safety Mindset MARKS THE ROAD AHEAD

WHILE NOT A NEW CONCERN IN FOOD LOGISTICS, SAFETY TOUCHES TWO VERY HOT BUTTONS TODAY: DRIVER TURNOVER AND HIGH INSURANCE RATES.

Safety is a key component to a successful retention strategy during today’s driver shortage, according to Marcia Faschingbauer, President and CEO of Excargo Services, a logistics provider that provides intermodal, drayage, transloading and warehousing Marcia solutions to major Faschingbauer food importers and exporters. “Our drivers are hanging with us because of our culture, because they know we’ll fight for them and that we provide

the best environment—and safest environment—that they can find,” she says.

Northland Insurance Company looks at carriers’ introductory safety program for drivers, ongoing safety messages and corrective action training in evaluating safety risks, according to Bob Bob Bringgold Bringgold, Director of Transportation Risk Control.

“Organizations without robust safety programs pay a lot more,” he says.

Faschingbauer and Bringgold agree that safety messages to drivers need to be consistent, constantly reinforced and presented in a variety of ways—from video and printed materials to in-person discussions.

National Carriers, a motor carrier providing refrigerated and logistics services in all 48 contiguous states, coaches drivers in the moment through a dash cam program, according to Jill Maschmeier, Director of Safety & Compliance.

She says it automatically tells drivers when they’re too close to vehicles or when they need to slow down.

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FEATURE “Video is a perfect tool for providing feedback after incidents like harsh braking events,” Bringgold says. He adds that AI now is being used by carriers to comb through video to find coachable moments.

Predictive maintenance technology also is helping to improve safety, Faschingbauer says: “Anything that makes the driver stop and get on the side of the road is a safety hazard.”

Digital keys are another technology that supports driver safety by limiting exposure.

Abby Szafranski, Director and Head of Product Management at

30 | FOOD CHAIN DIGEST • EDITION 1 • 2024

cybersecurity company Irdeto explains that the ability to use mobile phones to control locks enables drivers Abby Szafranski to enter and exit vehicles quickly on roadsides, in busy parking lots or in situations where they might be vulnerable to attack.

Efforts to create safer conditions have expanded to the technology of roads themselves. A freight signal optimization project administered by the North Central Texas Council of Governments (NCTCOG) adjusts traffic

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CARRIERS ARE EXPANDING THE SCOPE OF THEIR SAFETY FOCUS AS WELL. EXCARGO AND NATIONAL BOTH ACTIVELY REACH OUT TO DRIVERS OF PASSENGER CARS INVOLVED IN ACCIDENTS WITH THEIR DRIVERS TO OFFER SUPPORT.

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signals for truckers. According to Morgan Tavallaee, Transportation Planner at NCTCOG, the system gives truck drivers more time to get through a stoplight so they don’t have to brake quickly or run a red light.

Carriers are expanding the scope of their safety focus as well. Excargo and National both actively reach out to drivers of passenger cars involved in accidents with their drivers to offer support. Coupled with driver-centric programs that include offering concerted care to drivers involved in crashes, Faschingbauer says Excargo is creating a safety culture with measurable benefits.

Faschingbauer sees the results in KPIs she values, including excellent driver retention rates and safety numbers with the FMCSA that she says continue to improve.

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BUYER’S GUIDE ADVERTISERS IN THIS EDITION Ascend..................................................................................................... 23

Legend Transportation........................................... Inside Front Cover

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Sharp Transportation............................................... Inside Back Cover

Continental Express............................................................................. 28

Sonwil Logistics......................................................................................25

Doug Andrus Distributing LLC............................................................ 20

Stokes Trucking LLC.............................................................Back Cover

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The Shippers Group.................................................................................5

Hermann Total Distribution Service.............................................. 14-15

Tippman Group....................................................................................... 13

Kottke Trucking................................................................................. 16-17

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