Edition 2 • 2022
All things food supply chain.
FOOD SHIPPERS OF AMERICA OPTION 1
LEARNING TO
ADAPT FOOD SHIPPERS REALIGN SUPPLY CHAIN STRATEGY DUE TO VOLATILE RATES, CAPACITY
INSIDE:
TOP
Food Chain Technology Collaboration with Providers: Formulas for Success Football Great Tony Dungy Shares Life Lessons
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FOOD CHAIN Digest
EDITION 2 2022
EDITION 2 • 2022 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 32082 USA 952-442-8850 x201 www.MindShare.bz
All things food supply chain.
IN THIS ISSUE COVER STORY
FOOD SHIPPERS OF AMERICA OPTION 1
Billing Address: MindShare Strategies, Inc. P.O. Box 843 Springfield, TN 37172 USA Group Editorial Director and Publisher: Brian Everett, ABC 952-442-8850 x201 brian@mindshare.bz Editorial Content This Edition: Faith Boone Brian Everett Courtney Bloom Cassidy Haley Advertising Sales: Cassidy Haley 952-442-8850 ext. 215 cassidy@mindshare.bz Design/Production Manager: Todd Pernsteiner 952-841-1111 todd@pernsteiner.com Accounting/Administration/Circulation: Karen Everett 952-442-8850 x203 karen@mindshare.bz
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8
Learning to Adapt: Food Shippers Realign Supply Chain Strategy Due to Volatile Rates, Capacity
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Spotlights on Monster Beverage and U.S. Foods
MESSAGES 4
The Increasing Importance of Technology in Supply Chain By Brian Everett, Publisher
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FSA Conference a Huge Success By David Domencic, FSA President, Director of Procurement, ARMADA
FEATURE STORIES 14
Walmart Food Chain Snapshot: Home Delivery Innovation
16
Collaboration with Providers: Formulas for Success
26
Football Great Tony Dungy Shares Life Lessons
Food Shippers of America Board
28
Food Shippers of America Executive Director Paul Newbourne
Board Advisors Motor Carrier: Mary Kearney Tucker Freight Lines
Top Technologies Minimize Food Chain Disruptions
29
Top in Food Chain Technology
President David Domencic ARMADA
Railroad: Jonathan Tinker BNSF Railway
Vice President Mike Marquardt Birchwood Foods
Technology Advisor: Jim Mueller Food Shippers of America
©2022 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.
Secretary Darica Schneider Univar Solutions Treasurer Ernie Seibert Food Shippers of America Board Chair Steve Stein Danone North America Board Members Clyde Coleman Performance Foods Group Chris Domey Ocean Spray Lori Lammers Hostess Brands LLC Rob Lyall Simmons Foods
Media Advisor: Chris Wilkes Celtic International FSA Media Committee Stace Knabel Promise Delivered Chris Wilkes Celtic International
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2022
34
Food Shippers Adjust Purchasing Patterns to Address Supply Chain Patterns
36
Food and Consumer Trends in a Pandemic World
38
Food Companies Embrace Electric Class 8 Trucks
40
Chobani: Putting Humanity First in Its Business Focus
34
NEWS BRIEFS 42
FSA Awards Scholarships
46
BUYER’S GUIDE
40 www.foodshippersofamerica.org |
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LETTER FROM THE PUBLISHER
Brian Everett, Publisher Senior Partner, MindShare Strategies 952-442-8850 x201 brian@mindshare.bz
The Increasing Importance of Technology in Supply Chain Process automation, artificial intelligence (AI), cloud computing and the Internet of Things (IOT) are driving significant change in how technology can impact supply chain efficiencies and productivity in the food industry. This has never been more apparent as my team and I reviewed the 2022 “Top Food Chain Technology” nominations from this first-ever recognition program. Today, all eyes are on the food chain – and supply chain leaders must figure out how to deal with rapidly changing demand and disruptions. And the COVID pandemic taught us that we can’t just optimize for the new normal. In fact, not surprisingly in new Accenture research on supply chain and the cloud, 53 percent of supply chain executives say the pandemic made them rethink their overall supply chain. According to Gartner, supply chain organizations expect the level of machine automation in their supply chain processes to double in the next five years. At the same time, global spending on IOT platforms is predicted to increase to U.S. $12.44 billion in 2024 – attaining a 40 percent compound annual growth rate (CAGR) in seven years. Specific to the food
and beverage industry, we’re already seeing significant business advantages in the areas of more accurate inventory management, avoidance of accidental duplicating of orders, warehousing efficiencies, enhanced safety, reduced operations costs, on-time delivery of products, and enhanced customer experience. As for cloud computing, it has become the core of companies’ digital transformation efforts to drive value. This includes the supply chain, which is under incredible pressure to boost its resiliency in the face of ongoing disruptions. According to a survey by Accenture of 1,050 supply chain executives around the
world, 21 percent say they have deployed cloud-enabled capabilities across their entire supply chain while another 97 percent of these “cloud leaders” have at least three-quarters of their supply chain running in the cloud. Approximately 41 percent say the desire to increase supply chain efficiency was a top-three reason for migrating their supply chains to the cloud. Approximately 26 percent say the achieved an increase in demand forecast accuracy, 16 percent reduced supply chain operating costs, and 5 percent say they experienced an increase in revenue growth and profitability.
Optimized Operations Increased Visibility
Benefits of Food Chain Technology
Improved Decision-Making Increased Efficiency Enhanced Responsiveness Added Competitive Advantage Enhanced Customer Experience Source: Most Common 2022 Top Technology Innovator Nominations, Food Chain Digest
ACCORDING TO GARTNER, SUPPLY CHAIN ORGANIZATIONS EXPECT THE LEVEL OF MACHINE AUTOMATION IN THEIR SUPPLY CHAIN PROCESSES TO DOUBLE IN THE NEXT FIVE YEARS. AT THE SAME TIME, GLOBAL SPENDING ON IOT PLATFORMS IS PREDICTED TO INCREASE TO U.S. $12.44 BILLION IN 2024 – ATTAINING A 40 PERCENT COMPOUND ANNUAL GROWTH RATE (CAGR) IN SEVEN YEARS.
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| FOOD CHAIN DIGEST • EDITION 2 • 2022
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MESSAGE FROM THE PRESIDENT
David Domencic President, Food Shippers of America, Director of Procurement, Armada
FSA Conference a Huge Success FOOD SHIPPERS OF AMERICA'S 66TH ANNUAL CONFERENCE WAS HELD AT THE BEAUTIFUL JW MARRIOTT GRANDE LAKES & SPA IN ORLANDO, FL, FEBRUARY 20-22. Following a year off due to the pandemic, it was great to get back together as a food shipper community. Our Co-Chairs Rob Lyall, Simmons Foods and Steve Wutke, Prime Inc. brought together an outstanding lineup which included the inspirational keynote from Tony Dungy, fantastic industry insight shared from our industry icons and driver panelists, and ‘food for thought’ from Peter Hinson and Duncan Wardle. As a volunteer organization, FSA relies on the many volunteers who come together to help plan, set up, support, and then pack up once complete. Thank you for your tireless
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| FOOD CHAIN DIGEST • EDITION 2 • 2022
efforts that make our conference such an enjoyable experience for our attendees! I would also like to thank all of our amazing sponsors. Your incredible generosity helps to make our annual conference a success year after year. This year, the FSA leadership welcomes two new board members, Clyde Coleman with Performance Food Group, and Chris Domey with Ocean Spray. The team is excited to have them on board and look forward to their contributions to the organization. As an organization, FSA upholds a high
standard regarding code of conduct. Following the 2022 conference, we developed and posted our code of conduct on the FSA website. Reviewing the code of conduct will also be a requirement when registering for future conferences. Lastly, FSA returns to Palm Desert in 2023. Following the record-breaking attendance in Orlando, the 2023 conference will be a hot ticket. Please be sure to keep your eyes open for the registration details which will be sent later this summer and into the fall. Thank you and I look forward to seeing all of you in Palm Desert next year!
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LEARNING TO
ADAPT FOOD SHIPPERS REALIGN SUPPLY CHAIN STRATEGY DUE TO VOLATILE RATES, CAPACITY
8 | FOOD CHAIN DIGEST • EDITION 2 • 2022
COVER STORY
Economic forces, consumer demand, seasonality, natural disasters, and a host of other factors contribute to the success of shippers. However, given the volatility of the freight economy as indicated by such factors as trucking’s transactional spot market and warehousing rates, what are food shippers doing to adjust their supply chain strategy?
How to Assess the Food Chain Marketplace Supply chain executives in the food and beverage industry are challenged with staying on top of market conditions – including such factors as freight transportation rates, warehousing capacity in various markets, and overall consumer demand and buying habits. But how can you stay on top of such complex issues? While food shippers lean on their logistics partners and their professional networks, there are several additional sources that food shippers turn to for market intelligence: • Leading industry associations such as Food Shippers of America (FSA), Council of Supply Chain Management Professionals (CSCMP), Retail Industry Leaders Association (RILA) • Reputable industry analysts that routinely provide industry-specific market intelligence, such as J.P. Morgan, KeyBanc Capital Markets, and Stifel • Market observers and reputable economists such as Bob Costello of the American Trucking Associations (ATA) and Avery Vise of FTR Freight Intelligence
• Indexes such as the ATA Truck Tonnage (which FSA reports on monthly via the Food Shippers of America Blog), the Truckload Linehaul Index by Cass Information Systems, and market capacity sources, such as Truckstop.com and DAT Food shippers also lean on government agencies for additional market insights. For example, the producer price indexes (PPI) for long-distance truckload and lessthan-truckload (LTL) pricing from the U.S. Bureau of Labor Statistics (BLS) show the impact of higher contract rates and surcharges. The BLS Longhaul Truckload PPI rose 5.1 percent in April from March and was up 7 percent from February. The BLS LTL PPI rose 5.2 percent in April from March and 14.2 percent from February. Year over year, the
LTL PPI rose 23.9 percent in April, while the truckload PPI was up 39.6 percent. Escalating fuel surcharges likely account for a significant portion of the annualized increase, on top of contract price hikes in LTL. In June, one gallon of diesel cost an average of over U.S. $5.60, according to Department of Energy (DOE). That was a price increase of more than two U.S. dollars compared to the previous year and the highest average monthly price in decades. Diesel prices have been rising significantly in the last few months as the world was first gripped by an energy supply shortage and then suffered further fuel constraints due to the Russia-Ukraine war.
Assessment of the Current Economy Despite rampant inflation in the wider economy, a still-tight labor market,
US LTL pricing index rises 14 percent from February through April 2022
BLS long-haul less-than-truckload producer price index (PPI), with annualized percentage change 450
30%
400
25%
350
20%
300 250
15%
200
10%
150
5%
100
0%
50 0
-5% Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 Mar-21 Apr-21 May-21 Jun-21 Jul-21 Aug-21 Sep-21 Oct-21 Nov-21 Dec-21 Jan-22 Feb-22 Mar-22 Apr-21
Food shippers in North America are anxious to get into a more balanced and stable purchasing environment as they manage their supply chains for the remainder of this year and into next. After the past two years of extremely elevated rates and limited capacity, food manufacturers, retailers and distributors are finally seeing some indicators of relief and slightly more predictability.
BLS LTL PPI Source: US Bureau of Labor Statistics data, JOC analysis
Year-over-year % change ©2022 IHS Markit
www.foodshippersofamerica.org |
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COVER STORY
SOME FOOD SHIPPERS AND INDUSTRY EXPERTS SUGGEST THAT THIS IS NOT A FREIGHT RECESSION BUT RATHER A REALIGNMENT OF HOW FREIGHT IS MOVING. ongoing supply chain issues, summer shipping, and of course, record-high prices at the pump, the industry has recently seen. In the short-term there recently was a sharp correction in truckload spot rates that saw linehaul rates on load boards drop more than $0.44 per mile from March to May. While food shippers are welcoming the rate relief they’ve been experiencing in this short-term spot market, that relief seems to be predominantly limited to that area in overall logistics. Overall U.S. trucking costs remain well above pre-pandemic levels, buoyed by rising fuel prices, contract rates that have risen by double-digit percentages in each of the past two years, and resilient freight demand. What are some of the other economic indicators to follow? Data from the U.S. Federal Reserve Board shows total industrial production moved down 0.2 percent in June but advanced at an annual rate of 6.1 percent for the second quarter as a whole. Manufacturing output declined 0.5 percent for a second consecutive month in June; even so, it rose at an annual rate of 4.2 percent in the second quarter. In addition, estimates of U.S. retail and
food services sales for June 2022, adjusted for seasonal variation and holiday and trading-day differences, but not for price changes, were $680.6 billion, an increase of 1.0 percent (0.5 percent) from the previous month, and 8.4 percent (0.7 percent) above June 2021. Some food shippers and industry experts suggest that this is not a freight recession but rather a realignment of how freight is moving. The COVID pandemic and recession were unlike the last serious recession of 2008–09, when things went back to normal after a few years. Many believe longer-term impacts of the pandemic are going to play out in the next few years. After two years of supply chain disruption caused by the pandemic-induced surge in U.S. consumer imports, logistics managers with food shippers are recalibrating their networks and their relationships with carriers and brokers. By shifting a substantial amount of freight from the spot market to contracts, shippers essentially caused those spot market rates to correct downward. While some food shippers struggle to take advantage of that market shift, others have committed to higher
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rates in their contract agreements with carriers. Some have since tried to renegotiate, but others see this as too risky a move in an uncertain economy. Overall, truckload and LTL rates have risen in recent months, propelled by higher contract pricing and fuel surcharges that burn away any savings on the base linehaul rates. Falling truckload spot rates do pull down contract rates, but it usually requires several months, and contract rates tend to not decline as far as spot rates. This is one reason carriers are pursuing new sources of contract business such as dedicated trucking, drop-and-hook trailer pools, and managed transportation services. And what about product inventories? A buildup of product inventories occurred in late 2021 and early 2022 as part of a broader realignment of inland supply chains. Grocery retailers are pulling more inventory into the U.S. earlier than usual this year, racing to close gaps that led to stockouts last year and in some cases building an inventory glut. This implies that retail inventories likely will continue to rise - despite inflation, fueling greater freight transportation and warehousing demand for the remainder of this year. Industrial real estate vacancy rates have been at record lows for much of the COVID19 pandemic, particularly in regions serving major import gateways. “However, the economy is never going to return to where it was before,” says one industry observer. “All the discussion of when things go back to normal or to the way they were is pointless. It could be possible that as we head into 2023 and 2024, we have a different economy in some ways than we did in 2018 or 2019.”
7/9/20 1:05 AM
COVER STORY
NAVIGATING THE MARKET:
SUPPLY CHAIN BEST PRACTICES BY SHIPPERS FOOD CHAIN DIGEST HIGHLIGHTS CREATIVE AND POWERFUL INITIATIVES THE DEMONSTRATE HOW FOOD SHIPPERS ARE NAVIGATING CHALLENGES IN THE MARKETPLACE.
Monster Beverage at a Glance*
U.S. Foods at a Glance*
3,600+ employees in 66 countries
Nearly 28,000 employees
31 brands
More than 70 locations
504.8 million cases sold in 2020 (up from 12.5% from 2019)
Purchased from 6,000 individual suppliers Total case volume increased 16.9%
Products sold in 154 countries and territories
$29.4 billion in annual revenue
$4.6 billion total net
Monster Beverage Corporation, with operating subsidiaries, develop and market energy drinks, offsetting rising freight costs by sourcing more in the United States and repositioning finished inventory across its distribution network. They are also redistributing finished inventory across its U.S. distribution centers to reduce excessive cost of long-distance freight. Freight costs reduced profits by $6 million in Q1. “We were able to steadily rebuild inventories in the 2022 first quarter, while at the same time meeting strong customer demand,” says Co-Chief Executive Officer Hilton Schlosberg. “Significant increases in freight-in and fuel costs continue to impact costs of sales. The shortage of shipping containers and global port congestion remain a challenge, with the need for airfreighting of certain ingredients. We believe that some of the increased costs that we are experiencing are likely to be transitory.
US Foods, one of the largest foodservice distributors in the United States, has launched a delivery route optimization initiative as it adapts to changing customer order patterns. According to Bill Hancock, Chief Supply Chain Officer, the company is focusing on identifying wasted miles in its current routing system and will be remapping routes so customers are routed to the most efficient distribution center by mileage and service. The company then will work to replace its current system with dynamic routing technology. The initiative has already resulted in roughly 10 percent improvement in case volumes per mile in the company’s leading markets as compared to the same period in 2019. The company’s routing technology upgrade will allow it to offer dynamic delivery windows and real-time visibility to customers, improving service and further reducing miles and cost. The initiative comes as US Food looks to maintain on-time delivery while reacting to a bounce back in demand and servicing new customers in new locations.
*Based on 2021 reported figures
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| FOOD CHAIN DIGEST • EDITION 2 • 2022
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Food Chain Snapshot
Home Delivery Innovation: Walmart Delivers the Goods Walmart, like other retailers, continues to expand its delivery operations to help customers get the items they need when they need them. From Express delivery (where customers can have items delivered to their doorsteps in as little as two hours) to InHome (where they can get those orders placed right into their refrigerators) Walmart is offering customers multiple options that help them save time and money. Two recent developments in home delivery by the retailer giant, involve drone delivery and online white-label delivery – and the food chain industry is taking note. Drone Delivery to Bring Convenience to 4 Million U.S. Households Over the past year, the mega-retailer has been working on home delivery via drone. Walmart recently announced DroneUp delivery network to 34 sites by the end the 2022, providing the potential to reach 4 million U.S. households across six states – Arizona, Arkansas, Florida, Texas, Utah and Virginia. This provides Walmart the ability to deliver over 1 million packages by drone in a year – including food products. Between the hours of 8:00a and 8:00p, customers can order from tens of thousands of eligible items for delivery
by air in as little as 30 minutes. For a delivery fee of $3.99, customers can order items totaling up to 10 pounds. “While we initially thought customers would use the service for emergency items, we’re finding they use it for its sheer convenience, like a quick fix for a weeknight meal,” says David Guggina, Walmart’s SVP of Innovation and Automation. “Case in point: The top-selling item at one of our current hubs is Hamburger Helper.” Participating stores will house a DroneUp delivery hub inclusive of a team of certified pilots, operating within FAA guidelines, that safely manage flight operations for deliveries. Once a customer places an order, the item is fulfilled from the store, packaged, loaded into the drone and delivered right to their yard using a cable that gently lowers the package. GoLocal Expands Delivery to 1,600 Locations In addition to home delivery by drone, Walmart GoLocal, the retail giant’s white-label delivery service now is delivering from 1,600 retail and business locations in the United States as it expands its customer base, according to President and CEO Doug McMillion on a recent earnings call. This volume is up from nearly 1,000 service pick-up points he noted on an earnings call in February. At that time, McMillion predicted GoLocal to end this year close to 5,000 locations – an aggressive goal, to be sure. Adding more delivery locations is expected to spur more volume for the retailer, a critical component to its strategy of making this evolving service more efficient and sustainable as it competes with other same-day delivery retailers. “This is good for customers, our clients, and for us as we lower the cost per order by increasing the combined order size and the route density,” says McMillion of Walmart GoLocal’s service expansion. GoLocal also is pursuing new customers, including mid-sized and independent grocers, by linking up with platforms that help retailers fulfill last-mile deliveries.
“THIS IS GOOD FOR CUSTOMERS, OUR CLIENTS, AND FOR US AS WE LOWER THE COST PER ORDER BY INCREASING THE COMBINED ORDER SIZE AND THE ROUTE DENSITY.” - DOUG MCMILLION, PRESIDENT & CEO, WALMART GOLOCAL
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| FOOD CHAIN DIGEST • EDITION 2 • 2022
GOLOCAL ALSO IS PURSUING NEW CUSTOMERS, INCLUDING MID-SIZED AND INDEPENDENT GROCERS, BY LINKING UP WITH PLATFORMS THAT HELP RETAILERS FULFILL LAST-MILE DELIVERIES.
For example, in February, Cognetry Labs (a company that helps grocery retailers compete with the largest retailers in omni-channel) engaged with GoLocal as a provider. In March, GoLocal secured a contract with Delivery Solutions, which offers same-day delivery providers such as DoorDash (which serves thousands of restaurants, grocery stores, and convenience stores), Shipt (which provides same-day delivery for major food shippers like Costco Wholesale, HyVee, Meijer, Target, Winn Dixie, and Walgreens), and Instacart (which is a leading retail enablement platform that works with grocers and retailers like Kroger, Publix and Wegmans to transform how people shop).
www.foodshippersofamerica.org |
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COLLABORATION WITH PROVIDERS –
FORMULAS FOR SUCCESS Food shippers continue to find value in collaborating with third-party logistics partners – particularly when they know what they’re trying to accomplish but don’t dictate how to do it. When it comes to transportation, shippers find that 3PLs can help them through the capacity crunch by engaging the right carriers, effectively consolidating LTL or LCL freight, tracking freight payment and supply chain-related documentation, and helping to manage private fleets. When shipping globally, they find a logistics partner can navigate through global shipping requirements that can be extremely challenging, such as customs clearance, product consolidation, and local bottlenecks in service.
Food Chain Digest looks more closely at a few success stories of food shippers collaborating with logistics partners – from the simplest level in supply chain management to the more complex. Talking Rain Outsources Distribution Management
Photo: Talking Rain
Progressive and sustainable, Seattle-based Talking Rain Beverage Company is a U.S. market leader of sugar-free bottled waters and beverages. They were looking for a 3PL that would replace their insourced transportation department and operational execution. They sought to lower their costs, improve service, increase shipment visibility and provide solutions to support the retail
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| FOOD CHAIN DIGEST • EDITION 2 • 2022
market. They also wanted a supply chain partner capable of thinking creatively about product distribution. Talking Rain successfully transitioned its in-house distribution network to outsourced transportation management by XPO Logistics. Talking Rain chose XPO for its track record of innovating across the supply chain. Through this initiative, XPO has transformed Talking Rain’s truckload distribution network by implementing a comprehensive control tower solution that includes procurement, freight payment and digital tracking. The XPO Connect™ transportation platform gives Talking Rain real-time visibility into its network, and a dedicated XPO team manages shipments of Sparkling Ice® and Talking Rain® products with rigorous carrier oversight and analytics.
Photos: XPO Logistics
Of course, if a food shipper needs more than physical space to accommodate inventory and needs help with supply chain strategy, they can turn to a logistics specialist to strategically locate facilities to help reduce transit times, scalable operations to accommodate fluctuating business volume, or even robust systems that provide unmatched inventory visibility.
Collaboration with Providers: Formulas for Success “We’ve moved Talking Rain from a fragmented broker base to centralized management of assetbased carriers, with seamless efficiency across North America,” says Troy Cooper, former President of XPO Logistics and current Senior Advisor for the company. “We’re proud to partner with this exciting company in elevating service to Talking Rain customers.” In the first nine months of implementation,
West Liberty Foods Remains Nimble for Retailers West Liberty Foods is a protein copacker for retailers and quick serve restaurants around the world. With expertise in turkey, beef, pork, and chicken, the company handles a wide range of packaging, processing, and slicing services.
Photo: West Liberty Foods
One of its challenges is the everchanging retailer requirements. Retail compliance programs are one-way retailers seek to meet changing consumer demands. Advancing requirements require companies like West Liberty Foods to provide more comprehensive supply chain visibility, consistent delivery schedules, and precise real-time updates. Today’s retail compliance programs vary by
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XPO managed the transportation of more than 32,000 shipments for Talking Rain. The company’s average procurement cost per truckload has improved by as much as 6 percent below comparable retail market rates, with 100 percent reliability in securing capacity. “We wanted a supply chain partner capable of thinking creatively about product distribution,” says Oscar Mayorquin, Vice President of Supply Chain at Talking Rain. “XPO has impressed us with their insights, and importantly, their technological capabilities.”
retailer, but across the industry the goal is the same—efficiently get the right product in the right location at the right time. A few years ago, existing LTL strategy needed to be adjusted. West Liberty Foods previously relied on multi-stop truckload service when delivering to retailers. In-house logistics planners created shipments based on the company’s production schedule. Accordingly, they often moved delivery dates to fit the need of the planned truck. At the time, the company’s top retail customers allowed for a four-day delivery window, making adjustments easy to manage without penalty. Following this process, West Liberty Foods boasted an average on time
ABOUT TALKING RAIN Product Line: Beverage producer & marketer (Sparkling Ice is America’s #1 Sparkling water) Ownership status: Privately held Headquarters: Preston, Wash. Growth Rate: Experiencing doubledigit growth Recent Innovation: Awarded patent for discovery of use of a novel ingredient used to stabilize natural colors in beverages
delivery rate of 80 percent to retailers—which was well above the industry average. Then, one of West Liberty Foods’ retail customers reduced their delivery window expectations from four days to a single day. West Liberty Foods knew their existing strategy would have to adjust. The logistics team at West Liberty Foods began an analysis of their retail strategy. The conclusion was clear: they needed scale and expertise to meet changing retail requirements. Ideally, the solution would have the scale to grow with their business in anticipation of more stringent requirements in the future. And they needed a provider with a global suite of services. West Liberty Foods turned to C.H. Robinson as a single-source provider to help meet changing retail requirements. “We looked for a provider that had a good amount of shipping volume,” says Jerrod Carlson, Executive Director of Logistics with West Liberty Foods. “Volumes that would scale to grow with our business meant more consistency and a bigger retail advantage for us. That was a big factor in why we chose C.H. Robinson.”
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Collaboration with Providers: Formulas for Success West Liberty Foods began collaborating with C.H. Robinson to develop a cohesive retail consolidation program that provided the consistent, reliable deliveries the retailer expected. As part of the retail consolidation program, C.H. Robinson combines West Liberty Foods’ orders with orders from other companies that deliver to the same retailers. This allows West Liberty Foods to meet the expectations of their retail customers while improving operational efficiency internally. In addition, the West Liberty Foods’ retail consolidation program relies on C.H. Robinson’s information advantage to inform their processes for ongoing improvements. By taking advantage of C.H. Robinson’s scale and expertise, West Liberty Foods drives better outcomes. Using C.H.
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Robinson’s unparalleled data and key performance indicator (KPI) reporting, the team can see clearly what’s working well and where improvement opportunities exist — a necessary step to help grow their business. “Because we have documented processes, action plans, and monthly check-in meetings, we know the smartest way to move forward every month,” says Carlson. “From an operational standpoint, each department finds value in these action plans because everyone understands what their role is and how it impacts our overall success.” While developing the retail consolidation program, West Liberty Foods realized that the speed of data was crucial to tracking shipments. The team needed a solution that worked for their supply chain professionals.
Together, the teams decided automated connectivity between West Liberty Foods’ transportation management system (TMS) and C.H. Robinson’s Navisphere® platform was the best way to receive the necessary appointment updates and arrival information in a timely manner without tedious manual work. Through Navisphere, West Liberty Foods achieves many positive supply chain outcomes, including a 100 percent automated order entry process. West Liberty Foods’s TMS now automatically transmits all orders to C.H. Robinson for planning and delivery appointment scheduling. “This is a crucial piece of being successful and efficient, with distribution centers having smaller receiving windows, it’s critical that we have our orders scheduled prior to a distribution center being full
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Collaboration with Providers: Formulas for Success and moving us to the next available delivery day,” says Carlson. And since the company’s logistics planners used to spend 60 percent of their time building multi-stop loads and scheduling appointments, this saves West Liberty a great deal of time that they can spend on other areas of the business. The initial retail consolidation program aimed to meet a specific retailer’s requirements, but West
Liberty Foods saw an opportunity to improve their overall service. So they proactively applied the program to all retail customers. This approach helps West Liberty Foods stay ahead of changing retailer requirements; and just as importantly, established their reputation as a company that delivers on time in full, reliably. Thanks to a continuously improving retail consolidation program, West
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Liberty Foods routinely delivers on time to the retail customer that started it all 98 percent of the time and averages 94 to 96 percent on-time delivery rates for the rest of their customers. But that’s just for now, Jerrod’s team hopes to improve on time rates to 98 to 99 percent across the board. This is only imaginable because of the proactive nature of the retail consolidation program. Today, West Liberty Foods operates in a true just in time (JIT) environment—one that wouldn’t have been possible if they still relied on multi-stop truckload service. Now, West Liberty Foods purchases raw materials using forecast data and order trends. They only create a production schedule once customer orders are received, which drastically reduces the amount of food needed in inventory. Customers are happy that orders are ready faster and fresher than ever before. But West Liberty Foods isn’t stopping there. The logistics team continually looks for ways to improve their retail supply chain and their established relationship with C.H. Robinson helps them reach the goals they set. “We trust our relationship with our C.H. Robinson team, because they always do what’s best for us,” explains Carlson. “That’s a huge differentiator. It means we’ll be ready for whatever changes retailers have for us next.”
ABOUT WEST LIBERTY FOODS Product Line: Manufacturer of ham, turkey, chicken and beef products found in well-known grocery stores and restaurants nationwide Ownership status: Privately held Headquarters: West Liberty, Iowa Scope of Operation: 2,100 people across four facilities and offices in Iowa, Illinois and Utah
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LESSONS FROM
THE SIDELINES
Football Great Tony Dungy Shares Life Lessons “What separates the truly great teams from the mediocre ones?” This was the question asked by Tony Dungy as he opened his keynote presentation at the 2022 Food Shippers Conference. He then proceeded to answer this question by explaining four simple yet highly effective principles he has coached (and lived) by: selflessness, ownership, unity, and larger purpose. And he should know. Dungy is the former American football safety and coach who served as a head coach in the National Football League (NFL) for 13 seasons with the Tampa Bay Buccaneers and Indianapolis Colts. His teams became perennial postseason contenders under his leadership, missing the playoffs only twice with Tampa Bay. He also led the Colts to victory in Super Bowl XLI—making him the first black head coach to win the Super Bowl in 2007. FSA Conference attendees were hanging on every word as Dungy defined these critical principles: • Selflessness: Putting individual needs aside for the good of the team. • Ownership: Fulfilling your role by learning it thoroughly and by consistently giving 100 percent. • Unity: Understanding and rallying around your team’s mission, philosophy, and culture through open communication and positive conflict resolution.
• Larger Purpose: Contributing to the wider community in a lasting and significant way.
member school, for demonstrating joint athletic and academic excellence throughout their college career.
Important Moments in Tony’s Life
Dungy shared how he became emergency quarterback for the Pittsburgh Steelers in a 1977 game against the Houston Oilers when both Terry Bradshaw and Mike Kruczek went down with injuries on October 9. “That was an important moment in my football career because, even though we lost the game, it put me in the spotlight,” said Dungy.
Much of Dungy’s keynote was telling his stories with intriguing life lessons he’s learned over the years – lessons that we all can apply to our own lives. Born and raised in Jackson, Michigan, Dungy graduated from Parkside High School in 1973 and then played college football at the University of Minnesota (he was the Gophers' most valuable player at quarterback in 1975 and 1976). In 1977, he was awarded the Big Ten Medal of Honor, recognizing one student athlete from the graduating class of each Big Ten
Dungy shared his story about beginning his head coaching tenure in 1996 with the Buccaneers, a franchise he said was regarded as one of the league's worst. Through implementation of the Tampa 2
“FAMILY IS IMPORTANT. FRIENDSHIPS AND COMRADERY ARE IMPORTANT. FAITH IS IMPORTANT. FINDING YOUR LIFE’S PURPOSE IS IMPORTANT.” 26 | FOOD CHAIN DIGEST • EDITION 2 • 2022
defensive scheme, Dungy brought new success to the Buccaneers, leading them to four playoff appearances in six seasons. He is credited with constructing the team that won Super Bowl XXXVII the following year. After his departure from Tampa Bay, Dungy served as the Colts' head coach for seven seasons, qualifying for the playoffs in each. His greatest success occurred with the Colts' Super Bowl-winning season in 2006, the franchise's first in more than three decades and the first since relocating to Indianapolis. He retired from coaching following the 2008 season. Dungy explained how his coaching style developed from the Pittsburgh Steelers' dynasty of the 1970s. He was influenced by the defensive schemes learned under Chuck Noll and Bud Carson. Dungy said that he inherited most of the coaching philosophies from Noll and he is proud to be a protégé of Noll. He
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said he picked up an important lesson from him: “As a player, you need to get to know the city because you represent it.” That same principle can be applied to corporate leadership: get to know your employees, your team, and your organization very well. What about coaching individuals? “When I was coaching, I told every guy on the team that his role was important,” said Dungy. “If you came in as a free agent and were just a gunner on the punt team or the third safety, you were doing something the team needed to win. It was a way to emphasize that no one is irreplaceable.”
Finding Your Purpose “Another thing I always told my players: Don’t make football your life,” he said. “Family is important. Friendships and comradery are important. Faith is important. Finding your life’s purpose is important.”
Dungy has certainly found his life’s purpose: to make a difference in the lives of others. Since retiring, he became the national spokesman for the fatherhood program “All Pro Dad.” Dungy explained that the All Pro Dad program is the fatherhood program of Family First, a national non-profit organization based in Tampa, Florida. Launched in 1997 by Mark Merrill with Dungy’s help, All Pro Dad is built on a football theme and features more than 50 NFL players, coaches and alumni who speak out on the importance of being a good father. Dungy closed his presentation by reminding the audience “to set your goals high, help your staff to be the best they can be, let them know you hear them and you’re listening, and remember the fundamentals of paying attention to details.” Good advice coming from a football legend.
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TOP TECHNOLOGIES Minimize Food Chain Disruptions The lingering effects of a global pandemic, escalating inflation rates and a questionable economy, tight capacity in all modes of transportation, food ingredients shortages, ransomware attacks, and a tight labor pool are just a few of the biggest challenges that food shippers are facing. This article identifies leading-edge technology providers that are helping food shippers to navigate and conquer the business challenges they face.
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Artificial intelligence (AI), cloud computing, process automation, and the Internet of Things (IOT) are driving significant change in how technology can impact supply chain efficiencies and productivity in the food industry. Food Chain Digest highlights the 2022 “Top Food Chain Technology” list. This is the first year of this program’s existence. It’s an industry mechanism to identify stand-outs in the food transportation, logistics, distribution
TOP TECHNOLOGIES
2022
and supply chain management industry. It highlights technology platforms, applications and the innovators that create them to help food shippers be more aware of the technology options available to them. For complete details on the program, visit foodshippers.org and click “Top Lists” under the “News & Trends” tab. In the meantime, here are the top technology selections for 2022.
2022 Top in Food Chain Technology The Raymond Corporation
RLS Logistics
The Raymond Corporation, a Toyota Industries Company, is a global provider of material handling products and intralogistics solutions. Raymond’s integrated automation, telematics, virtual reality and energy solutions provide ways to optimize operations and improve performance. From automated guide vehicles that perform well in repetitive applications to automated storage and retrieval systems that offer a fast, efficient way to move goods through your facility, automated solutions free labor to perform more value-driven tasks and reduce inefficiencies. raymondcorp.com
RLS Logistics is in the top 10 warehouse providers in North America with over 59 million cubic feet of cold storage warehousing. Additional services include temperature-controlled LTL and TL transportation nationally, and direct-toconsumer pick and pack services. Through Anello, its customer platform, RLS provides data analytics that customers need to make good business decisions. Having one accountability partner who can execute but also understand how to use the data collected to the customer's advantage is key. rlslogistics.com
Breakthrough Breakthrough empowers shippers with data, technology solutions, and market knowledge to reduce cost, create fair partnerships, and improve transportation network efficiency and sustainability. Their technology suite of solutions include: Capac-ID (a carrier search and linehaul rate benchmarking tool), Network Intelligence and Fuel Recovery to helps manage fuel reimbursement, monitor key performance areas, and FELIX (a web-based transportation intelligence platform that offers advantages in energy, freight, and sustainability solutions. breakthroughfuel.com
nuVizz, Inc. nuVizz, Inc. is a delivery and transportation orchestration SaaS platform that empowers a transparent and fully optimized delivery and fulfillment lifecycle. The platform connects the food shipper’s network of stakeholders providing everyone with real-time visibility. Advanced optimization powered by AI and ML helps to better utilize capacity, and reduce miles driven and cost. The platform automates some of the manual processes like inventory and backend financial reconciliation and takes away much of the labor cost involved. nuvizz.com
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2022 Top in Food Chain Technology Edge Logistics Edge Logistics is a multi-mode transportation solutions provider with a fully automated digital freight matching platform (CAPACITY). From streamlined tracking and status updates to customized metrics, CAPACITY enables carriers to make standard load bids, search available loads, and much more. This results in better access to on-demand status reports and GPS updates, all without long hold times waiting for emails and calls. Carriers can access the portal and use it in real-time to find shippers and secure loads with state-of-the-art digital freight matching. edgelogistics.com
Uber Freight Uber Freight is a logistics platform reshaping global logistics and deliver reliability, flexibility and transparency for shippers and carriers. Since launching in 2017, we have built one of the world’s largest digitallyenabled carrier networks and transformed pricing and booking practices to reduce inefficiencies and
increase growth and collaboration opportunities. It’s marketplace technology that matches supply and demand at scale through a massive shipper-carrier ecosystem with transparent pricing, and helps shippers reliably source capacity at the touch of a button — all while gathering, organizing, and delivering insights across millions of data points every day. uber.com/us/en/freight
FourKites FourKites combines real-time data and machine learning to track more than 2.5 million shipments daily across road, rail, ocean, air, parcel and courier, and reaches more than 185 countries. With the largest network of logistics tracking data and proprietary machine learning technology, FourKites’ realtime visibility platform powers datadriven insights and proactive risk management on food and beverage shipments. FourKites helps improve customer satisfaction, lower operating costs, and reduce waste. fourkites.com
PLM Fleet PLM Fleet has developed a comprehensive, cloud-based IoT management solution for automated, touchless, supply chain ecosystems. PLM TrustLink™ captures data at the case level product KDE’s and CTE’s or can extend along the entire supply to provide financial and food safety benefits. Once product is marked, it can be digitized with a unique birth certificate to be shared within the facility or along the supply chain in a permissioned platform to provide real-time inventory data and status of products to drive cost out of the business. plmfleet.com
Everstream Analytics Everstream Analytics delivers insights and risk analytics for a smarter supply chain using artificial intelligence (AI) and predictive analytics. It integrates with procurement, logistics, and business continuity platforms generating complete information, sharper analysis, and accurate predictions required to turn the supply chain into a business asset. Everstream combines AI predictions with expert human analysis to provide customers with real-time insights needed to continually push their supply chain decisions to be faster, smarter, safer, and leaner. everstream.ai
Transplace Transplace powers one of the largest managed transportation and logistics networks in the world with $15 billion of Freight Under Management (FUM). Its tech-enabled services and solutions focus on three key areas: logistics technology and solutions, capacity services, and cross-border logistics. Transplace has several on-demand offerings for shippers including Transplace’s TMS, Network Services, OptiPro, Lanehub, and Dynamic Continuous Moves. In Nov. 2021, Uber Freight completed its acquisition of Transplace, bringing
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2022 Top in Food Chain Technology together Uber Freight’s vast network of digitally-enabled carriers with Transplace’s shipper technology, managed transportation services and operational solutions. transplace.com
Tive Tive provides real-time supply chain visibility insights to help logistics professionals actively manage in-transit shipments' location and condition to ensure shipments arrive OTIF. Tive's solution provides data generated by its trackers that allow clients to actively optimize their shipments and unlock supply chain insights in an actionable real-time manner. Food shippers have realtime visibility of their shipment’s location and condition (temperature, light, shock, and humidity) to ensure shipments are not delayed or damaged/spoilage. tive.com
Lytx® Lytx® is a provider of machine visionand artificial intelligence-powered video telematics, analytics, safety, and productivity solutions for commercial, public sector, and field service fleets. Our solutions leverage video to empower drivers and fleets to be safer, more efficient, productive, and profitable. Driver-centric tools help prevent collisions to protect a fleet’s bottom line. They can alert drivers to behaviors associated with collisions, including cell phone and seat belt use, inattentiveness, failure to stop at intersections, weaving within or departing from lanes, and unsafe following distances. lytx.com/en-us
Leaf Logistics Leaf Logistics improves transportation planning through strategic use of data analytics and machine learning. Its platform connects shippers, providers, and partners to gain network efficiencies and unlock a forward view of the transportation market. Its technology helps food shippers by providing tools to re-optimize
their transportation plans throughout the year as their business needs and market conditions change. Leaf Adapt provides shippers with a forwardlooking view of their capacity needs so they can better navigate through market volatility. leaflogistics.com
warehouse, and supply chain workflows. RFgen has served more than 3,000 customers around the world. The use of mobile barcodes, scanned by workers, allows up-todate inventory changes each time a transaction occurs. rfgen.com
Vector
UChain Group
Vector is a digital platform built to improve throughput in the logistics industry, providing shippers, carriers, retailers and 3PLs with a contactless, data-driven solution to make pickup and delivery faster, more efficient and more collaborative. Vector helps food and beverage shippers eliminate manual processes, streamline operations and create efficiencies within their supply chain. Vector's end-to-end solution digitally captures all workflows to facilitate contactless pickups and deliveries for drivers. withvector.com
UChain Group began the unloading, financial and information logistics movement for grocery distribution in 1982. Since then, this company has developed trend setting services and cutting-edge technology that benefits distribution center and transportation partners across the U.S. FreightSmith provides a fully digital contactless inbound solution from gate to gate. The solution allows delivering drivers to check-in, receive direction/ communication including a VIP gate pass, and pay for unload services via the FS app. freightsmith.net
JLT Mobile Computers
Princeton TMX
JLT Mobile Computers is a leading developer of reliable computers that are customized for specific requirements of the food industry. Next to the outstanding quality of their hardware, JLT supports customers from device selection through to system design, integration and lifecycle management. As part of its high-touch business model, JLT invests a lot of time understanding the customer’s specific goals, concerns, challenges, and priorities to ultimately shape our solution recommendations and ensure that what we propose will enable the customer to achieve their goals. jltmobile.com
Princeton TMX is a transportation management software company that streamlines, optimizes and automates transportation transactions including load tendering and carrier assignment. This helps to ensure that the ideal carrier is hauling the freight for the best price. The company also offers users an intuitive experience in which they can manage all aspects of their day-to-day operations. The results are increased efficiency, ease of workflow, and lower cost. princetontmx.com
RFgen Software RFgen Software provides highreliability mobile barcoding software that directly integrates with enterprise software to help organizations reduce cost while increasing efficiency. Through certified integrations to all major ERPs, RFgen enables automation of critical inventory,
Emerge Emerge is one of the fastestgrowing start-ups in the U.S. and is transforming the transportation and logistics industry with its digital freight procurement platform. It provides access to direct capacity and live market conditions helping shippers and carriers make the strongest, most beneficial decisions when procuring domestic freight. Emerge is different from other freight procurement technologies in that it fosters a unique
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2022 Top in Food Chain Technology marketplace that allows shippers and carriers to interact directly, with visibility into the entire process. emergemarket.com
optimized efficiency. AutoScheduler uses machine learning to predict better what is likely to happen inside of a facility. autoscheduler.ai
AutoScheduler
RoadSync
AutoScheduler provides an intelligent warehouse orchestration solution that works with a company's WMS to optimize all warehouse operations within specific constraints. AutoScheduler uses machine learning to predict better what is likely to happen inside of a facility to improve fulfillment rates and to streamline operations. With more supply chain challenges than ever, AutoScheduler combines data from numerous systems into a single operational plan for warehouses and distribution centers. It takes disparate data, identifies bottlenecks, and prescriptively creates plans to orchestrate campus operations for
RoadSync, a digital financial platform for logistics, offers fast, convenient, and secure ways to move and manage money, dramatically reducing payment processing time and maximizing revenue collection. RoadSync offers payment products for warehouses, carriers, brokers, repair/tow merchants and drivers, automating the financial systems fueling the logistics industry. The cold food and beverage supply chain can expedite shipments and cut down time wasted on inefficient paper systems that are error-prone and fraud-prone. roadsync.com
Zethcon Corp. Zethcon Corp. is a provider of supply chain execution software and services. The company’s flagship product, Synapse, is a marketleader in warehouse management systems. Zethcon is recognized for its deep commitment to highly responsive service and building longterm partnerships that make their customers’ business better. Synapse WMS offers a scalable, configurable platform suitable for both smaller, growing operations and multi-site enterprises supporting hundreds of customers. zethcon.com
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Simplified Tech for Easy Shipping At Becker Logistics, we know food shipping. We have the technology, capacity, and processes to ensure the successful shipment of each and every load that we move. We offer real time tracking, automated updates, and detailed reports to ensure your supply chain is the best it can be.
Keep Communication Open Leverage our Analytics Maintain Visibility Load #: 4587302-049877 Status: ON-TIME ETA: 16 minutes, 23 seconds Temperature: 42°F / 5.5°C Contact: 1.800.GO.BECKER Ext. 3663 Food@BeckerLogistics.com BeckerLogistics.com/Food
MARKET INTELLIGENCE
Food Shippers Adjust Purchasing Patterns to Address Supply Chain Disruptions There have been dramatic challenges facing food shippers in 2022. Transportation delays, constraints in the labor pool, and global uncertainties all have led to supplier slowdowns. As a consequence of these factors in supply chain disruption, food manufacturers in particular have been completely rethinking their purchasing patterns. Some expanded their sourcing pool, while others inked long-term agreements with vendors to jointly add capacity. One business even sent its own workers to a supplier factory to speed up deliveries. So what can food companies do to address these significant challenges? Here are a few recent examples of how food manufacturers are reacting to these challenges to lessen the impact of higher costs, longer lead times and a lack of raw materials in their food chains.
Quickly Building Out Manufacturing Capacity at Oatly Oatly, a Swedish food company that produces alternatives to dairy products from oats, will expand its
sourcing options after poor harvest conditions strained the supply of oats. The plant-based milk producer has been increasing prices to offset higher costs for raw materials worldwide, the company has enough oat and other raw material contracts and supply in place to meet its growth expectations for 2022, according to Christian Hanke, the company’s Chief Financial Officer. Drought conditions last year pushed North American oat harvests to near-record low levels, threatening the supply of a popular ingredient used in plant-based milk, says Hanke. U.S. oat production declined 39 percent last year from 2020, with harvested acreage at a record low 650 thousand acres, according to the National Agricultural Statistics Service. Canada is a major oat supplier to the United States, yet the country saw its smallest oat crop since 2010, according to Agriculture Canada. In addition, rail shipping issues also have added to supply woes. Unseasonal flooding in western Canada at the end of 2021 washed out major rail lines, and railroads
AS PART OF THE SOLUTION, OATLY HAS BEEN RAPIDLY BUILDING OUT ITS MANUFACTURING CAPACITY TO MEET DEMAND FOR OAT MILK AND MITIGATE THE EFFECTS OF THESE INGREDIENTS SHORTAGES.
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| FOOD CHAIN DIGEST • EDITION 2 • 2022
were unable to meaningfully make progress on the resulting backlog due to a cold snap at the beginning of 2022. Continued rail constraints come as Oatly already expects lower production volumes in the first quarter due labor and raw material challenges. To add complexity to the supply challenges, these conditions have been factors in elevating oat prices. According to the USDA’s Economic Research Service, the average price of oats in the 2021-22 season is expected to reach $4.20 per bushel, which would surpass the 2012-13 record of $3.89. Oatly is paying anywhere between 8 percent to 50 percent more for oats, depending on the region. As part of the solution, Oatly has been rapidly building out its manufacturing capacity to meet demand for oat milk and mitigate the effects of these ingredients shortages.
Reformulating Products at General Mills General Mills, a multinational manufacturer and marketing of
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www.foodshippersofamerica.org |
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MARKET INTELLIGENCE
Food and Consumer Trends in a Pandemic World
The food industry has been in flux for years, as buying power shifted from Boomers to Millennials. Clear trends such as healthy living, sustainability, technology and convenience have been dramatically changing how, where and when shippers spend their money. But retail change quickly changes with the arrival of the COVID-19 pandemic, and there were several containment measures that drastically changed everything. Consumers shopped different stores, bought different items, and began preparing more meals at home. Consumers quickly realized every link in the food supply chain is essential.
What Forces Have Accelerated Changes? There are numerous forces at play, although the pandemic has added fuel to quite a few of them. These include: Changing consumer preferences. More than ever, consumers are health-conscious and looking
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| FOOD CHAIN DIGEST • EDITION 2 • 2022
for fresh, additive-free food with traceable origins, with an increasing preference for local, according to a recent Forbes article on Ways that COVID has changed the way we eat. Changing trade conditions. As global trade wars continue and ensuing political tensions rise, COVID19 and related containment measures are putting the brakes on international trade, according to a Forbes article particularly citing the trade tensions between the U.S. and China. This will have an increasing impact on food shippers – particularly those that are super-regional or global in scope of operation and market reach. Tightening rules and standards. Food safety concerns are expected to further heighten in the wake of the pandemic, leading to even more regulatory pressure. Demographic and social changes. While growing populations and middle classes will remain a theme, new social patterns are likely to emerge
in the post-outbreak era, such as a decrease in globalization, as regional and local products capture a bigger share in production and consumption. Rapid technological advances. IT innovations are improving not just efficiency and sustainability, but also supply chain visibility - particularly vital now to spot and address supply chain issues in an early stage.
Food Shippers: Highlighted Trends to Focus On During the recent 2022 Food Shippers Conference in Orlando, Fla., speaker Anne-Marie Roerink of 210 Analytics, shared specific trends that food companies should be aware of. Specializing in quantitative and qualitative research in several Anne-Marie Roerink industries including food, Roerink served as the Director of Research for the Food Marketing
SMART FOOD SHIPPERS WILL CONTINUE TO ASSESS AND UNDERSTAND THE FORCES THAT ARE ACCELERATING CHANGE IN THEIR ENTERPRISES AND THE TRENDS THAT WILL HAVE A DRAMATIC IMPACT ON THEIR FOOD SUPPLY CHAINS. Institute (FMI). Responsible for all research projects, she distilled complex research data into usable and easy-to-understand materials for business audiences ranging from America’s largest retail chains to single-store family companies. Studies and presentations she has been involved in include shopper insights, retailer benchmarking and trending in financial, and operational and tactical areas. Roerink identified these nine trends for food shippers to be aware of that likely will have a significant impact on their business strategy and supply chain operations: 1. COVID will continue to have a firm grip on how and where food dollars are spent.
2. Retail still has a majority share of dollars, but food service recovery is ongoing.
9. Labor issues will accelerate technology integration throughout the supply chain.
3. Spending and distribution will grow more splintered with many new channels/formats.
Smart food shippers will continue to assess and understand the forces that are accelerating change in their enterprises and the trends that will have a dramatic impact on their food supply chains. “Trends from convenience to sustainability will continue to change the food landscape,” concludes Roerink.
4. Inflation and supply chain challenges will continue to impact purchase decisions. 5. Expect a greater emphasis on carbon footprint and net zero carbon efforts. 6. Continued pull between fresh and frozen in retail and foodservice. 7. Demographic shifts will impact shipping routes and needs. 8. Micro-fulfillment and last mile will take on an even bigger role.
There are a number of factors that have significantly impacted migration patterns, including COVID policies, cost of living and taxes – but also more flexible policies of “working from home,” according to Roerink: “This is having a major impact on consumer behavior and food chains throughout the country.”
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MARKET INTELLIGENCE
Food Companies Embrace Electric Class 8 Trucks There is growing momentum of food manufacturers, distributors, retailers, and restaurant chains to look at ways to have an impact on their greenhouse gas emissions reduction commitments. One significant strategy is to leverage emerging technologies involving electric vehicles. Food companies, such as grocery chain Albertsons and restaurant chain McDonald’s Canada have made recent commitments in this area. Electric trucks are a little slower to adapt than electric cars, but are nonetheless forging progress in their adoption by the market. Big truck manufacturers such as MAN and Scania have started pouring nearly $2 billion into electric truck research and development. In addition, Volvo is actively putting its VNR Electric Class trucks on the road at an impressive pace with two food shippers: Albertsons and McDonald’s.
Albertsons: Nation’s First Commercial 100% Zero-Emission Refrigerated Grocery Delivery Albertsons Companies, the secondlargest grocery chain in the U.S., recently took delivery of two Volvo VNR Electric trucks at its DC in Irvine, Calif. The VNR Electric models from Volvo Trucks North America are the first zero tailpipe emission, batteryelectric Class 8 trucks to be deployed in Albertsons Cos. company-wide fleet, and will be serving stores in southern California. Albertsons has procured electric-powered transport refrigeration units from Advanced Energy Machines (AEM) to pair with its Volvo VNR Electrics, enabling
Albertsons has procured electric-powered transport refrigeration units from Advanced Energy Machines (AEM) to pair with its Volvo VNR Electrics, enabling Albertsons Cos. to make the first commercial 100% zeroemission grocery delivery with a Class 8 truck in the U.S.
Albertsons Cos. to make the first commercial 100% zero-emission grocery delivery with a Class 8 truck in the U.S. This inaugural delivery, which took place on May 28, 2021 at a LEED-certified Albertsons store in Irvine, California, is an exciting step toward achieving the company’s sustainability goals. Albertsons Cos. operates 1,400 Class 8 trucks nationwide, all of which are certified under the U.S. Environmental Protection Agency (EPA) SmartWay program as meeting high transportation sustainability and efficiency standards. The Southern California fleet covers 335 stores in the region, running from the Central Coast to the California-Mexico border. Increasing its transportation sustainability is just one way in which Albertsons Cos. reduces its environmental impact. Albertsons Cos. maintains ambitious sustainability goals in all sectors of its operations, including energy use, plastics and packaging, and recycling and waste reduction. In April, Albertsons Cos. committed to setting a sciencebased target to reduce carbon emissions. The company’s emissions
reduction target will include their direct operations and value chain in order to support the goals of the United Nations’ Paris Agreement and prevent the worst impacts of climate change. In order to meet their climate goals, Albertsons Cos. will leverage innovative technology, like Volvo VNR Electric trucks, and continue to implement expansive energyefficiency projects and produce renewable energy.
McDonald’s Canada Tests Electric Truck for Restaurant Delivery McDonald’s Canada recently announced the addition of the first-ever electric vehicle (EV) to its distribution fleet. With its supply chain distribution partner, Martin Brower, McDonald’s Canada will trial the new Volvo VNR Electric Class 8 tractor for distribution to restaurants in the Montréal area. The test of this zero-tailpipe emission tractor is part of McDonald’s Canada’s larger plan to transition to lower-emission vehicles in the supply chain fleet that serves more than 1,400 restaurants across the country, where feasible.
ALBERTSONS COS. OPERATES 1,400 CLASS 8 TRUCKS NATIONWIDE, ALL OF WHICH ARE CERTIFIED UNDER THE U.S. ENVIRONMENTAL PROTECTION AGENCY (EPA) SMARTWAY PROGRAM AS MEETING HIGH TRANSPORTATION SUSTAINABILITY AND EFFICIENCY STANDARDS.
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THE TEST OF THIS ZERO-TAILPIPE EMISSION TRACTOR IS PART OF MCDONALD’S CANADA’S LARGER PLAN TO TRANSITION TO LOWER-EMISSION VEHICLES IN THE SUPPLY CHAIN FLEET THAT SERVES MORE THAN 1,400 RESTAURANTS ACROSS THE COUNTRY, WHERE FEASIBLE.
The trial’s outcome could see additional diesel-powered vehicles replaced with alternative-fuel vehicles for distribution in other viable Canadian markets. Globally, McDonald’s has committed to achieve net zero emissions across its operations by 2050.
and our global greenhouse gas emissions reduction commitments, this is an extremely significant moment for the company,” says Jacques Mignault, President and CEO, McDonald’s Canada.
Martin Brower leased the tractor, which will be based out of its distribution center located in Montréal’s Baie d’Urfé area. The Volvo VNR Electric tractor will pull McDonald’s-branded trailers for deliveries to local McDonald’s restaurants within a range of 150 km. The trial will evaluate the tractor’s performance in a variety of weather conditions. In addition to the Montréal trial, McDonald’s has planned another Volvo VNR Electric Class 8 trial in Brampton, Ont. later in 2022. “This trial has the potential to influence a major shift in the way we approach supply chain distribution that will bring us closer to reaching McDonald’s net zero goals. Considering the potential impact the trial could have on our business
The trial’s outcome could see additional diesel-powered vehicles replaced with alternative-fuel vehicles like this one for distribution in other viable Canadian markets. Globally, McDonald’s has committed to achieve net zero emissions across its operations by 2050.
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9/21/20 11:01 PM
THE VOICE OF THE FOOD SHIPPER
Chobani: Putting Humanity First in Its Business Focus Hamdi Ulukaya, known as the “Yogurt King,” is the founder of America’s most popular Greek yogurt brand, Chobani. At the recent Food Shippers of America Conference in Orlando, he shared his story on stage that practically defines the American Dream. Read how he built a company with a corporate culture that fosters collaboration and teamwork to produce outstanding results – all while giving back to the community.
Hamdi Ulukaya grew up in a Kurdish dairy-farming family in Turkey. He left his family farming operation to study political science at Ankara University in Turkey and he eventually immigrated to the United States after a stranger advised him to go to America. He immigrated to the United States in 1994 to study English in upstate New York, an area that reminded him of the small farming villages of Eastern Turkey. His new life in America kicked off on Sept. 15, 1994. At the beginning of 2005, he saw an ad for an old factory that was for sale in New York, and it was already outfitted as a fully equipped yogurt plant, he recalls: “I went to visit the plant the next day and it turns out that this was a very old "I think the factory, almost 80 years old, pandemic has and it was being closed by shown us that Kraft. They were getting out we must go back of the yogurt business and the to basics, and price was extremely cheap. that is people, So, through a loan from the communities, Small Business Administration and the human and some help from local agencies, I bought the plant for relationships $700,000. I hired the first four we have." people from the previous 55 Hamdi Ulukaya and worked on the recipe.” He continues: “I thought ‘I have one shot at this. I bet that people, if they had an option of yogurt being more natural, better and more nutritious and accessible, I could make something out of this.’” He hired a small team to make yogurt that was less sugary and less watery than what was generally produced in the United States. The product was called Chobani and it was a hit. Today, Chobani is a global player and has more than 20 percent of the U.S. yogurt market. In 2012, he built a 1.4 million-square-foot factory in Idaho. “I’ve always had the image in my head of how far Chobani can go, and what kind of challenges I’m going to face during this time,” he says. “It comes down to one reality: it’s all
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about people. The changes that you make along the way, the people who you bring along the way, but the most important is how flexible you are as an organization, to go from one thing to another thing. How do you change? How do you adopt a new reality? That has to be part of the culture. At Chobani, we always welcome it and try to find a way to solve it, or even make it even better.” He says seeing a business as part of the community to serve people was his way of thinking. With no educational background in business, the food industry, or retail, he re-hired four of the original factory workers to turn the building into a new business. He credits the success of Chobani today to those people that helped him get started. “It's one of the most impactful engines you can have,” he says. “The power of people following your business to do things that common sense will say it's impossible to do.” He says today they call it “conscious capitalism.” Ulukaya says his concept of running a business is tied closely to his living experience trying to survive in the United States. His passion for community led him to rehire most of the original workers from the factory. Then, hiring expanded in 2008 and the company started to gain more attention. During Chobani’s growth, Ulukaya learned there were refugees from across the world settling down in the city. Though the government was offering some assistance, they were still having a hard time finding jobs. With his commitment to helping the community over making the most profit, Ulukaya decided he would find a way to help those people by bringing them on to the Chobani team.
THE VOICE OF THE FOOD SHIPPER
Evolution of the Supply Chain
He offered solutions to the many obstacles that laid in their way of having a successful life in America.
And in that you will find a lot of refugees and immigrants, shoulder to shoulder risking their lives.”
“They're not trained to do the work that people ask about here. They don't have the knowledge. And the last one is, I thought that was the biggest one, is that this you know, unknown. Maybe there’s a little bit of fear of unfamiliarity that people are not used to hiring people from around the world,” Ulukaya recalls.
Ulukaya says today, everyone who works for Chobani has to buy shares. His business model concept is based on his thinking of “why should I get all the credit, when everyone else works just as hard?” He says when it comes to business, it’s always about people.
His response was to start something. They found buses, translators, and trained the workers in the factory. Soon, he had team members from across the world working shoulder-toshoulder making yogurt, helping those individuals provide for their families. “Sometimes we forget how lucky we are until you meet someone who left children behind, or lost a husband, or traveled through the night through the mountains,” Ulukaya says. “I attribute Chobani’s success to those community workers.” Chobani, which means “shepherd” in Turkish, grew as a successful business at an astronomical rate. In no time, Ulukaya and his crew were running the most popular, natural, delicious Greek yogurt company in the country. “These people you don't know, just give them a chance,” he says. “And you'll find what they can do. And they will bring blood and energy and most importantly, the human spirit, to the position, that you cannot capture in specialists.
Even with the devastating effects of the COVID-19 pandemic on businesses across the world, Ulukaya stayed focused on the positive and continued to keep his frontline workers at top of mind. “These are important times,” he says. “We’re all going to watch who is doing what during this time,” he says. “We’ll never forget the neighbor that knocked on your door and asks ‘are you okay?’ We’ll never forget the companies or brands that come out to society and participate to inspire, or help, or encourage. And we’ll never forget, inside the company, how leaders behave.” Ulukaya says keeping his team safe was a top priority during the pandemic. Luckily, in a two-year span, no one in his factory was affected while at work. He also made a point to continue to take care of his workers financially if they had to stay home due to feeling ill. He also offered childcare subsidies to workers with children. “I think the pandemic has shown us that we must go back to basics, and that is people, communities, and the human relationships we have,” he says.
“Chobani uses food as a force for good in the world – putting humanity first in everything we do. Our philanthropic efforts prioritize giving back to our communities and beyond: working to eradicate child hunger, supporting immigrants, refugees and underrepresented people, honoring veterans, and protecting the planet. We manufacture our products in New York, Idaho, and Australia. Chobani products are available throughout North America and distributed in Australia and other select markets.” - Hamdi Ulukaya, Founder, Chobani www.foodshippersofamerica.org |
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NEWS BRIEFS
FSA Awards Scholarships FOOD SHIPPERS OF AMERICA (FSA) ANNOUNCED THE RECIPIENTS OF ITS 2022 JOHN J. MURPHY SCHOLARSHIP PROGRAM AT ITS ANNUAL CONFERENCE. One of the many benefits of FSA membership, eligible applicants are children or dependents (including spouses) of a supply chain or logistics department employee whose membership dues are current. A total of $230,500 in scholarships have been awarded since 2011.
Winners of scholarship awards in 2022 are: • Recipient ($7,500): Madison Pixler (Parent: Holly Pixler, Senior Director-Transportation & Logistics, Ardent Mills), and is majoring in Chemical Engineering at University of Notre Dame
Madison Pixler
Timothy Venable
Nathan Ferrel
Jack Heitbrink
Stephen Venable
Naomi Lin
• Runner Up ($5,000): Timothy Venable (Parent: Brett Venable, IT Business Administrator, Burris Logistics) • 3rd Place ($4,000): Nathan Ferrel (Parent: Hector Ferrel, Transportation Manager, McLane Food Service-Vantix Logistics) • 4th Place ($3,000): Jack Heitbrink (Parent: Sheila Heitbrink, Senior Operations Finance Manager, Danone North America) • 5th Place ($2,000): Stephen Venable (Parent: Brett Venable, IT Business Administrator, Burris Logistics) • 6th Place ($1,000): Naomi Lin (Parent: Michael Lin, Senior Director of Supply Chain, Musco Family Olive Co.)
About the FSA John J. Murphy Scholarship The namesake of the program, John Murphy, was a supporter of FSA in many ways: as an active member with food manufacturer Bordon Foods and then once he retired in 1995, serving as the Executive Director of FSA for 14 years. His impact and contributions to the organization included being the voice and visionary of FSA, serving as an ambassador for the food industry, facilitating the combining of the rail/3PL and motor carrier conferences in 1997, and advancing the mission and values of FSA as an educational resource that drives change in the industry.
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Eligible applicants are children or dependents of Supply Chain/ Logistics department employees at FSA member companies. Requirements include:
• Selection is made by an in-depth evaluation of all scholarship material by sitting Officers and Board Members of Food Shippers of America.
• High School Seniors or current enrollees in undergraduate or graduate programs. Additional merit is given to Business majors, particularly those focused on Supply Chain or Logistics management.
• The scholarship is funded solely by the FSA membership dues and advertising income Food Chain Digest and Food For Thought, FSA’s official magazine and e-newsletter.
• Maintains a 3.5 Grade Point Average • Applications needed to be submitted in their entirety to be eligible.
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24/02/21 12:13 PM
BUYER’S GUIDE ADVERTISERS IN THIS EDITION ATS..........................................................7
Florida Freezer................................... 27
RLS Logistics...................................... 29
Bay & Bay........................................... C4
Hudson Refrigerated Logistics....... 32
RMX Global......................................... 37
Becker Logistics................................ 33
Kennesaw Transportation................19
Ryder/Midwest....................................15
Bettaway.............................................. 17
Kottke Trucking.......................... 24, 25
Sharp Transportation...................... C2
C.A.T Global.........................................19
Lansdale Warehouse........................ 35
Smith Trucking....................................21
Catch-Up Logistics........................... 43
Legend Transportation.................... C1
Stokes Trucking LLC......................... 43
Coldliner.............................................. 23
Loadsmart............................................. 5
Tippman Group.................................. 22
Continental Express.........................20
Minuteman Transport....................... 10
Trailer Bridge........................................ 2
Doug Andrus Distributing LLC........ 32
Pressure Systems International...... 37
Transport Security, Inc..................... 43
DTS Logistics.....................................39
Prime Inc.............................................. 11
United Facilities Inc.......................... C3
Edge Logistics....................................30
Red Classic..........................................13
For advertising information, contact Cassidy Haley | 952-442-8850 x215 | cassidy@mindshare.bz
A new look. Better content. More often. Edition 1 • 2022
All things food supply chain.
GOOD HELP IS
HARD TO FIND FOOD SHIPPERS OF AMERICA OPTION 1
HOW TO NAVIGATE THE LABOR SHORTAGE BY UNDERSTANDING GENERATIONAL DIFFERENCES
What the Infrastructure Bill Means to Food Chains
INSIDE:
TOP
Food Chain Pros to Know
How to Create a Competitive Supply Chain Advantage during Disruptive Times The Voice of the Food Shipper: Our Biggest Challenges
You now have access to more market intelligence, best practices, and industry news on critical topics ranging from capacity and volatile rates to supply chain disruption, multimodal transportation issues, technology, talent management and retention. You’ll find it all through four primary resources: • FoodShippers.org has been modernized with relevant, up-to-the-minute content through the Food Shippers Blog. Check it out online! • Food Chain Digest is our newly designed magazine available in print and digital format. Produced three times by a new publisher, MindShare Strategies, we leverage an editorial team with more than 100 years combined experience in transportation, logistics and supply chain. • Food For Thought is our new e-newsletter that features more relevant information, more often. In fact, it’s published twice a month to give you the current, timely information on the marketplace. • Social media channels provide comprehensive information designed specifically for and about food shippers. Make sure to follow us on LinkedIn (corporate page and discussion group), Facebook, Twitter, and Instagram! Make Sure We’re a Safe Sender: MindShare Strategies is the new publisher of all these channels – so make sure to add mindshare.bz to your safe sender list, along with FoodShippersOfAmerica.org.
Interested in advertising opportunities? Download a 2022 Food Shippers Media Kit at FoodShippers.org or reach out to Cassidy Haley at cassidy@mindshare.bz or 952-442-8850 x215.
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www.FoodShippers.org
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These are extraordinary times in the logistics industry. Supply chains are broken. Manufacturers are scrambling to meet demands. Labor is scarce with mandated annual wage hikes. Margins are disappearing. With nearly 70 years of delivering supply chain solutions, United Facilities has the people, tools and know-how to help your business succeed. Whether it’s high-velocity case picking, floor-ready display assembly, specialty kitting or other 3PL services, we have scalable solutions to fit your needs. And we can get it done for less, in our place or yours. Call us now at 866.699.7271 and learn how a logistics innovation leader can help you meet the challenges of today’s unprecedented supply chain demands.
© United Facilities 2021 www.foodshippersofamerica.org |
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