WHAT’S COOKING: Food Warehousing Trends

Like businesses across all sectors of the economy, many food companies are trying to determine “the new normal,” says Rob Doyle, President of The Shippers Group (TSG). Even as supply chain disruptions moderate, business leaders are concerned about inflation, a potential recession, and economic uncertainty, he adds. Many companies are struggling to find workers, and are striving to meet their customers’ interest in more sustainable operations.

To meet these challenges, food warehousing and distribution companies are implementing technology and adjusting processes. At the top of many priority lists are tools and processes that enhance visibility, automation, and efficiency.

Visibility solutions can facilitate automation and reduce non-value add work, like manual data entry. In addition to streamlining operations, cutting manual tasks can help companies attract employees. Nearly half of respondents to the recent Food Shipper Supply Chain Visibility Report, published by Food Chain Digest and sponsored by FourKites, identified labor and talent management as a top challenge.

TSG works hard to attract and retain workers, Doyle says. Along with wage adjustments and incentive programs, Doyle and his team increased the frequency of town hall meetings, gaining a better idea of the challenges workers are facing.

At TSG, another workforce change has been a shift to more flexible work arrangements, Doyle says. Like many companies, the typical TSG employee works about 40 hours each week. While many still do, the company has more part-time employees, or employees that work certain hours. “Trying to have a more flexible workforce has helped us fill spots,” he says

TSG also has added technology, including a warehouse operations system and a new packaging solution.

It’s also looking at material handling equipment and automation. “We’re trying to find ways to increase productivity and augment our personnel,” Doyle says, adding that the return on many of these types of investments continues to increase.

For example, end-to-end visibility solutions allow supply chain professionals to more accurately track materials, goods, and other products. With this information, many can cut their levels of safety stock. That’s significant, given that inventory carrying costs rose by nearly 26 percent in 2021, according to the 2022 State of Logistics Report by the Council of Supply Chain Management Professionals.

Focus On Sustainability

Nearly 40 percent of business leaders rank environmental sustainability as a top priority, according to recent research by IBM. Technology can help food companies reduce waste and operate more efficiently and sustainably.

For example, the QFR Zone® blast freezing solution from Tippmann Group saves energy by emphasizing more efficient air movement. It’s also more laborefficient than a traditional blast cell, while improved fans provide more control over airflow and power consumption. “It’s revolutionized how we think of blasting,” says John Tippmann III, Vice President of Sales Strategy with the company, which provides cold storage expertise and solutions. More than 20,000 QFR Zone® pallet positions of blast freezing capacity have been installed nationwide, the company says. “It’s been exciting and we’ve seen a lot of growth,” Tippmann says.

Effective Processes Remain Key

Even as technology solutions become increasingly important to effective food supply chain operations, strong processes remain essential. Tippmann provides an example: some distributors are working with manufacturers to ensure that the cases the distributors receive are organized in full, rather than half or mixed, layers, boosting picking efficiency. “This can help remove a lot of errors and require less of the person actually picking the product.” he adds.

As food shippers and their providers look at solutions to address their labor pains and corporate performance in times of economic uncertainty, they should continue to explore ways to connect effectively with their workforce, and to create more efficiencies and processes automation through technology. Visit FoodShippers.org to see more educational content, case studies and best practices in these areas.