Food Logistics March/April 2022

OFFSHORING VS. NEARSHORING

FTL VS. LTL

BUILDING THE SUPPLY CHAIN OF

TOMORROW

HOW AUTOMATION AND EMERGING TECHNOLOGY FUTURE-PROOF SUPPLY CHAINS Issue No. 232 March/April 2022

FoodLogistics.com

SUPPLY CHAIN VISIBILITY

ON THE MENU

March/April 2022 ISSUE NO. 230 COLUMNS FOR STARTERS

04 Russian Invasion Creates

Ripple Effect Through Supply Chains Despite how and when the Russia/ Ukraine War ends, the impacts are already felt by many supply chains, says Marina Mayer, Editor-in-Chief.

DEPARTMENTS COVER STORY

Building the Supply Chain of Tomorrow How automation and emerging technology future-proof supply chains.

3PL / COLD CHAIN

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What’s the Difference Between FTL and LTL Logistics?

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WAREHOUSING

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06 Farm To Fork 09 Food on the Move www.FoodLogistics.com

TRANSPORTATION

Designing the Automated Warehouse of the Future

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Run Your Supply Chain Like a Cruise Ship

Changing needs in the logistics space generates new questions for shippers.

Westfalia details how warehouse owners are looking to expand temperaturecontrolled storage capabilities.

QAD Precision talks global trade management.

SOFTWARE & TECHNOLOGY

PACKAGING

FOOD SAFETY

Visibility in a Transparent

How Does Labeling Hold Up

9 Best Practices for Ensuring

30 Supply Chain

32 in Cold Storage?

34 Food Safety and Quality

Discover how technology helps the cold food chain achieve a transparent supply chain.

Cold storage temperatures add steps in labeling on the warehouse side.

Emerson advises adopting best practices to maintain strict temperature adherence.

*Correction: Derek Rickard’s name was incorrectly published as Derek Richard in Food Logistics’ Jan/Feb 2022 issue, page 29.

WEB EXCLUSIVES • Supply Chain Network Virtual Summit SCNSummit.com

• The L.I.N.K. to Global

• Supply Chain Supply Chain Intelligence Learning Center foodlogistics.com/podcasts

SupplyChainLearningCenter.com

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MARCH/APRIL 2022 | FOOD LOGISTICS

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FOR STARTERS

DETAILS

FROM THE EDITOR’S DESK

RUSSIAN INVASION CREATES RIPPLE EFFECT THROUGH SUPPLY CHAINS

W

Marina Mayer Editor-in-Chief

hen Russia first invaded Ukraine, the human being side of me sympathized with the families whose lives will never be the same. Families separated at the border or torn apart by death. Infants born in bomb shelters. Mothers struggling to just keep going, no matter what.

But, the journalist side of me, the side that covers supply chains and how they’re impacted by events such as these, immediately thought

continue to rise, further impacting fleets and compounding the driver shortage even more.

Grocery retailers and their consumers are also feeling the heat, as prices for groceries and ingredients continue to rise, while the product shortage remains a threat to the cold food chain.

Several third-party logistics (3PL) providers in Ukraine have been shut down, goods scheduled to import into Ukraine are now be re-routed

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of the havoc the Russia/Ukraine War would mean for the future of supply chains; how the war would impact supply chains already struggling to keep goods moving; companies struggling to stay afloat; workers struggling just to survive.

As the United States embarks on the two-year anniversary of when the Coronavirus disease (COVID-19) pandemic hit, how will this war affect our nation, one that may possibly just be beginning to turn a corner into the right direction.

Well, for starters, fuel prices

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and major ocean carriers and consumer packaged goods brands are pulling out of Russia.

Despite how and when the Russia/Ukraine War ends, the impacts are already being felt by many supply chains, leading to production stoppages, port closures and other bottlenecks that are sure to create additional supply chain disruptions for months to come. This is just the beginning.

AC Business Media Chief Executive Officer Ron Spink Chief Financial Officer JoAnn Breuchel Chief Digital Officer Kris Heineman Chief Revenue Officer Amy Schwandt VP of Operations and IT Nick Raether VP Audience Development Ronda Hughes Director, Demand Generation & Education Jim Bagan GM Online & Marketing Services Bethany Chambers Group Content Director Marina Mayer Published and copyrighted 2022 by AC Business Media.

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FARM TO FORK

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

HYDROPONICS, THE FUTURE OF FARMING

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What do you need to know about hydroponics? In today’s sustainable agriculture, as much as possible. The soil-free process of growing crops is making its way to the forefront of sustainable farming. With reduced water consumption and waste, no runoff and a smaller environmental footprint, hydroponics is the future of farming.

Scan the QR code to learn more. https://foodl.me/wf5br8

FarEye is taking steps toward more sustainable delivery operations. Using route planning, FarEye saw a reduction in emissions and optimized fleets for an overall better consumer experience and greener delivery process.

“In 2021, customers that used our platform collectively helped reduce carbon footprint by 40,961 tons,” says Suvrat Joshi, chief product officer, FarEye. “We see this number continue to increase as our customers adopt and use these new capabilities across first, mid and last mile in their delivery network.”

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

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ONE SMALL STEP FOR MAN, ONE SMALLER CARBON FOOTPRINT FOR MANKIND

HOT TAKES ON COLD STORAGE

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Food Logistics’ managing editor Brielle Jaekel sat down with Michael Walters, VP, managing director of the Corporate Services Group for NAI James E. Hanson Inc. to discuss cold storage in this L.I.N.K. podcast. As companies begin to find their footing with online orders, a New Normal is taking over the industry. Consumers are looking for fresher items and cold storage companies are stepping up to the task.

Scan the QR code to listen now. https://foodl.me/4nfa6k

Waste reduction and increased efficiency is becoming more important as supply chain disruptions continue. According to the United Nations’ Food and Agriculture Organization, more than 1.3 billion tons of food is wasted every year—more than $900 billion in losses. Why? Because supply chain processes remain inefficient.

But this doesn’t have to be the case. Intelligent packaging may hold the key to an efficient supply chain. There are many applications that could improve customer satisfaction; increase visibility; improve security and reliability of supply; prevent product diversion, counterfeit and theft; and reduce product wastage.

Scan the QR code to learn more. https://foodl.me/6e3u6u

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FOOD LOGISTICS | MARCH/APRIL 2022

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THINKING SUSTAINABLY WITH INTELLIGENT PACKAGING

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FARM TO FORK

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

SMART SENSORS REVEAL THE SUPPLY CHAIN BEHIND THE CURTAIN

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The farm-to-fork process used to happen behind the scenes, but today’s consumer is asking for traceability. The solution? Smart IoT-based sensors. From shipment to warehouses, these sensors can be integrated into each step of the supply chain process. Not only does the customer benefit, but companies can also track products, manage efficiency and ensure quality at every step. Marc Pégulu, VP, wireless LoRa and IoT for Semtech, details the full range of smart sensors in the cold food and beverage supply chain space.

INFINITE WAREHOUSES TACKLE SUPPLY CHAIN SHORTAGES

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We’ve all seen the empty shelves and supply chain shortages firsthand. Pod Foods wants to change that. The business-to-business wholesale marketplace connects companies with emerging suppliers to access available product from anywhere.

“It is harder for brick-and-mortar retailers to compete with e-commerce businesses on assortment because they have limited real estate—they have to optimize physical space instead of online space,” says Larissa Russell, CEO and co-founder of Pod Foods. “Our engine provides both offline and online retailers with targeted access to our ‘infinite warehouse,’ making it possible for them to keep shelves and/or fulfillment centers physically stocked with the most relevant products.”

EQUIPMENT FINANCING: THE HOWS AND WHATS

NewCold

To fight supply disruptions such as labor and product shortages, companies are implementing modern technology and automation. Chuck Sharbrough, SVP, director, food, beverage and agribusiness of Key Equipment Finance, explores the innovative solutions to these issues—from robots to financing equipment. Sharbrough details what companies should look for when choosing to finance equipment, things to consider and the types of equipment available.

BIG IMPROVEMENTS FOR BIG FREEZER WAREHOUSE

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Key Equipment Finance

Burley, Idaho, is now home to the largest freezer warehouse in North America thanks to NewCold Advanced Cold Logistics. The building was created for McCain Foods, best known across the Northwest for their frozen potatoes and fries. To save on costs and improve efficiency, NewCold turned to automation, collaborating with TGW to implement newly automated processes.

MARCH/APRIL 2022 | FOOD LOGISTICS

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FARM TO FORK

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

CPG GROWTH STRATEGIES IN INFLATIONARY ENVIRONMENT

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TRAINING VS. TECHNOLOGY

The CPG industry currently faces the strongest headwinds it has seen in 30 years, encountering obstacles like inflation, supply challenges, demand uncertainty and dramatically shifting consumer behaviors. Krishnakumar Davey, president of strategic analytics for IRI, provides five key areas of insight and predictions for the remainder of 2022 that will help brands and retailers compete to win market share and consumer loyalty in today’s ever-changing CPG landscape.

The supply chain’s biggest asset is its employees. That’s why it is imperative to keep your company culture high in morale and employee well-being. Steve Gorr, application manager, virtual reality products, The Raymond Corporation, details how integrating continuous training and education into company culture makes for a safe and happy work environment.

Scan the QR code to learn more. https://foodl.me/dsx227

SCN SUMMIT IS BACK!

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SCN Summit is back and better than ever starting the week of June 6! The premier virtual event kicks off with an Executive Outlook on Industry Trends and Technology followed by discussions on Warehouse Automation, Visibility, Risk Management, Sustainability, Transportation and more, all hosted by industry peers and experts. Join us for this can’tmiss week of webinars by registering online at www.SCNsummit.com.

Scan the QR code to learn more. https://foodl.me/egzqq4 www.foodlogistics.com

FOOD ON THE MOVE

LOGISTICS TRENDS IN THE INDUSTRY Daily Updates at FoodLogistics.com

DRIVING DRIVERLESS VEHICLES FORWARD Autonomy in vehicles is progressing rapidly, from parking assist to adaptive cruise control. The next step? Driverless vehicles. The supply chain’s ongoing driver shortage has been detrimental to the industry, but autonomous vehicles could be the answer. Unlike human drivers, autonomous vehicles do not need to be routed home or make frequent stops.

FLYING INTO THE FUTURE WITH DRONE DELIVERY

Plus

As the pandemic surges on, no-contact delivery continues to thrive. The best solution for no-contact delivery comes in the form of a flying robot. That’s because drone delivery lowers labor costs, are not subject to human error and complete deliveries without spreading COVID-19. With regulations, patents and tweaks to the process, drone delivery is set to be the delivery system of the future, according to Verified Market Research’s latest study.

Here’s how the ongoing labor and driver shortage and advancements in driver safety measures impact growth in autonomous vehicles in the trucking space.

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TRANSPORTATION, MEET SUSTAINABILITY

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Pexels

The pressure is on to go green. Everyone from consumers to legislators is turning to a greener future in the supply chain. The biggest player right now is carbon-neutral transportation, but the ultimate goal remains a complete zero-emissions system. Tracking and reducing fuel consumption, automating inefficient steps in the supply chain process and smart packaging can all benefit both companies and consumers alike. Consumers and investors are looking for companies putting in the effort to maintain a sustainable supply chain. To keep up with the competition, the supply chain will have to go green. In this expert column, Vitalii Dutka, business director, logistics and transportation industry of Intellias, explores the fast-approaching industry transition into sustainable alternatives.

ASIAN PORTS FEELING CONGESTED The newest development in port congestion and overcrowding has reached Asia. project44 reports that Asian ports saw 17 ships per day, up from 13.

Hong Kong claims the biggest jump, though, from 18 to 23 ships on average per day from December to January. As Asian ports prepare for delays, U.S. ports are finally seeing respite from congestion.

Scan the QR code to learn more. https://foodl.me/5aqr4m

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FOOD ON THE MOVE

LOGISTICS TRENDS IN THE INDUSTRY Daily Updates at FoodLogistics.com 4 Pete’s Sake - stock.adobe.com

2022’S TOP 5 TRENDS IN E-GROCERY FULFILLMENT What do you need to know about e-grocery fulfillment?

Kevin Price, senior consultant, corporate solution center for Swisslog, details the Top 5 trends to expect in 2022, including e-grocery orders getting smaller and more frequent; consumers expecting faster delivery times; business strategies taking shape for e-grocers; automation saving the day; and consolidation management becoming main focus.

Scan the QR code to learn more. https://foodl.me/vpmpj8

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OmniTRAX

A GOOD YEAR FOR FREIGHT BROKERS

OHIO LOCOMOTIVES GET ELECTRIFIED OmniTRAX’s Newburgh & South Shore Railroad (NSR) plans to launch an operational electric locomotive for its northern Ohio rail lines. At 1,700 gross horsepower, this electric train cuts fuel consumption in half and is estimated to reduce emissions by up to 77%.

The NSR was awarded a grant for the electric locomotive alongside six other grantees by the Diesel Mitigation Trust Fund from the Ohio Environmental Protection Agency. By replacing old diesel vehicles and equipment, there is a cleaner, greener future for the locomotive industry.

Scan the QR code to learn more. https://foodl.me/a6x3j3

Freight brokers are seeing better contract rates on par with the recent spike in spot truckload rates. With the shift brings a seemingly fortunate year for freight brokers. What will hinder growth? Likely, the availability of drivers and ability to hire more brokers. Otherwise, growth is expected to continue from restocking and increased economic activity, as well as the backlog created by supply chain dislocations, according to the latest Bloomberg | Truckstop.com survey.

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

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THE WAR ON THE SUPPLY CHAIN The Russian/Ukraine War has devastated families and entire cities in its short run. Editor-in-Chief Marina Mayer takes a look at the war through the lens of the supply chain. Two years after the COVID-19 pandemic left the supply chain in ruins, this war now comes with new production stoppages, port closures and other bottlenecks sure to create additional supply chain disruptions for months to come. Go to page 4 for more.

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FOOD ON THE MOVE

LOGISTICS TRENDS IN THE INDUSTRY Daily Updates at FoodLogistics.com TruckLabs

FLYING INTO THE FUTURE WITH TRUCKWINGS

BY TRUCKLABS TruckLabs launched an active aerodynamic device called TruckWings to automatically close the gap between the cab and trailer at highway speeds. The new device reduces drag while saving 4-6% on fuel. Trucks across all fuel sources of diesel, natural gas, hydrogen and electric can experience improved efficiency with TruckWings. The company’s goal is to ultimately contribute to a more sustainable trucking industry through innovative technology.

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

TOP 3PL & COLD STORAGE PROVIDERS OPEN FOR NOMINATIONS Attention third-party logistics (3PL) and cold storage providers? Nominations are open for this year’s Top 3PL & Cold Storage Providers award!

There’s different methods of tackling ground transportation. And, different companies are investing in different types of technology and solutions. Plus, this past year saw an abundance of mergers and acquisitions and the implementation of new innovations and solutions. However the transportation industry overall continuest to be challenged with shortages, disruptions, labor shortage and more.

THE LEADER IN TEMPERATURECONTROLLED LOGISTICS Building trust through outstanding performance Warehouse Solutions | Transportation Solutions Brokerage Solutions | CES Solutions

This award recognizes leading 3PL and cold storage providers in the cold food and beverage industry that are at the forefront of keeping perishables moving through the cold chain. Nominations close May 22.

Don’t delay, apply today!

Scan the QR code to learn more. https://foodl.me/h84ymn 908-351-2800 | EastCoastWarehouse.com

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COVER STORY

BY MARINA MAYER, EDITOR-IN-CHIEF

BUILDING

THE SUPPLY CHAIN OF

TOMORROW

How automation and emerging technology future-proof supply chains.

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www.foodlogistics.com

D

igitalizing the supply chain is the future. But, getting there takes automation and emerging technology. It requires investing in solutions designed to track and trace, produce data analytics and deliver real-time alerts when parts of the supply chain fall off track. It requires buy-in from all decision-makers to help build the supply chain of tomorrow.

And, it’s this automation and emerging technology that helps the cold food chain build the supply chain of tomorrow.

That’s because automated technologies answer the call for several challenges plaguing the cold food supply chain, with labor being the most pressing one, according to Tom Swovick, market development director, Dematic.

“Cold chain environments have always been one of the less attractive work environments due to low operating temperatures and multi-shift operations.

The current labor shortage has been amplified in cold chains. Additionally, many existing sites are aging, located in the wrong area and not energy efficient.

While there is a high interest in automation, current supply chain challenges have increased the timeline for implementation. Lastly, many of the existing manual operations are not very automated,” he adds.

Plus, working in a freezer continues to be one of the more difficult jobs in the supply chain industry.

“Coupling that with how hard it is to find and retain labor in this market climate, and the challenges for cold food chains come into sharp focus,” says Carsten Funke, CEO of Picavi. “So, if you can employ tools that assist the worker, bringing greater job satisfaction while also getting more efficiency out of the people you have, this is a win-win for the company.”

Intelligent inventory management remains another challenge, says Lior Elazary, CEO and co-founder, inVia Robotics.

“It’s particularly important in online grocery ordering. Just like with standard e-commerce supply chains, fulfillment has to be organized around random access, whereas store fulfillment entails replenishing supplies of SKUs in bulk pallets and cases, direct-to-consumer delivery means each order is made up of multiple unique SKUs in ‘onesies and twosies’ quantities,” he adds. “And, online ordering for groceries is one of the categories that has grown the fastest since COVID. In 2021, nearly 49% of consumers were purchasing groceries online in some capacity.”

Other such solutions are collaborative robots (cobots), which carry out multiple tasks with maximum precision vs. just one task at a time from typical warehouse robots, says Adhish Luitel, industry analyst at ABI Research.

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COVER STORY

The Dematic Mixed Case Fulfillment Solution automates all facets of the order fulfillment process from inbound receiving to outbound shipping.

Dematic

Blue Planet Studio

“They are also able but also to offer to perform better with a consistent end every iteration through customer experience. machine learning Government and are more mobile exemptions at the and lightweight than federal and state conventional robots. levels have allowed As collaborative for miles of real-life robots offer various operations for at possibilities to enhance least the next several Shipments of cobots to warehouses worldwide are expected to cross 47,000 by 2026 at a warehouse operations CAGR of over 37%, according to ABI Research. years,” adds Susan and perform better than Beardslee, principal comparable solutions, it’s not surprising and just over 2,000 cobots shipped in 2020. analyst at ABI Research. that they are surging in popularity and And, autonomous mobile robot What’s more is, the warehouse will continue to do so in the coming years,” shipments for last-mile delivery will automation market is expected to grow Luitel adds. increase from 7,000 in 2021 to 309,000 in to $27 billion by 2025; twice the size it 2030. was roughly five years ago, according to Automation, robotics “The challenges of last-mile delivery Research and Markets. become future of include shrinking delivery timelines and Fortunately, there are a number of warehousing profitability concerns with approximately new solutions in the market that make Shipments of cobots to warehouses 50% of all shipping costs attributed to last automating tasks previously performed worldwide are expected to cross 47,000 mile. There are scaling issues based on by low-skill labor more feasible, says Josh by 2026 at a CAGR of over 37%, according available staff and fleet. It is critical that Cloer, director of sales, Mujin Corp. to ABI Research, representing dramatic businesses fully optimize the final leg of “Today, you can automate picking tasks growth compared to under 10,000 units the transportation journey to, not only for induct or fulfillment with intelligent shipped to warehouses globally last year materially reduce the cost of delivery, robotics solutions,” he says. “You can

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manage your material movements within your operations with autonomous vehicles. You can store your raw materials and finished goods with automated storage and retrieval systems (AS/RS). The solutions are there to solve any challenge with automation, and the warehouse control and execution software is available to seamlessly connect the different solutions to fully automate your operations from door to door.”

For example, Dematic developed the Dematic Mixed Case Fulfillment Solution, which automates all facets of the order fulfillment process from inbound receiving to outbound shipping.

“A growing expectation of refrigerated public warehouses is fulfilling orders on a more granular basis, frequently at a mixed case level. The system allows users to reduce picking labor and rapidly build high-density, store-ready pallets and carts,” adds Swovick.

Picavi’s Pick-by-Vision is an assisted reality vision solutions that helps workers optimize their performance and add 10-30% productivity per worker, Funke says.

“Plus, the ease and ergonomics of the solution increases job satisfaction from both the physical and actual aspects of the work, leading to employee retention in addition to these gains in productivity,” he adds.

Meanwhile, inVia’s Logic software applies its patented inVia SmartPath pick path algorithms to its inVia Picker mobile robots to retrieve goods.

“When robots are used, our customers see 4- to 5-time improvements in productivity, and they can see 2- to 3-times improvement by just deploying the software to guide their people,” Elazary says. “This productivity translates directly into faster cycle times, so ordered goods move more quickly through the fulfillment process. With perishable goods, every second saved in the warehouse means more time for consumers to keep them for use at home.”

DHL Supply Chain, for instance, accelerates its digitalization efforts through the implementation of cobots to eliminate routine tasks such as moving between picking locations in a warehouse.

DHL also deployed autonomous forklifts to automate some of the heavy-lifting activity.

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DHL deployed autonomous forklifts to automate some of the heavy-lifting activity in the warehouse.

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COVER STORY

 inVia’s Logic software applies its patented inVia SmartPath pick path algorithms to its inVia Picker mobile robots to retrieve goods.

It’s time to automate.

What’s next?

At the end of the day though, supply chain disruptions and challenges aside, one of the main pitfalls in implementing automated technology is learning where/how to start and what kinds of emerging warehouse automation technologies will make the most impact.

That’s because it’s a crowded field of options for those interested in integrating more automation across their operations, Foreman says. It can be overwhelming for companies who don’t know where to start, and sometimes just the one solution by itself is not enough.

“We take a more holistic approach with our clients, beginning with the existing client’s business data and an engineering analysis, which leads us to the best

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technology solutions for their specific operations.

We can help customers to ready their operations to adopt new technologies, as well as to integrate them gradually to reduce upfront investment costs, risks and operational challenges,” he adds.

“The added benefit of our experience in operating automation lends credence to return on investment (ROI) projections and we can offer scale opportunities across multiple regions if a technology fits our customers’ requirements.”

Also, there are now intelligent robotics solutions that can be deployed in a matter of days; companies just need to find a place to start.

“By combining 3D vision with advanced robotics solutions, you can solve nearly any picking or packing challenge that you are currently using low skill labor to manage,” Cloer says. “There is likely an operation within your warehouse that is perfect for automation with a reasonable payback and quick deployment. Stay away from highly custom, larger systems for now and just find the low hanging fruit.

You will see benefits beyond the labor savings with things like safety and reliability improvements. Make sure you understand the full cost of each option and find a solution that gives you guaranteed performance and reliability.”

And, because human workers are still vital to the cold food chain, it is also important to consider how automation can help reduce annual manual process cost.

“Automation that amplifies the cognitive abilities of humans in the warehouse will ultimately drive the inVia Robotics

“These technologies boost productivity, allowing us to process higher volumes with the same labor resources and space, offsetting some of the hiring challenges while improving the safety and well-being of our associates who enjoy working with this advanced technology,” says Greg Foreman, VP of operations, retail, DHL Supply Chain. “We also just recently announced a $15 million investment in robotics solutions from Boston Dynamics to further automate warehousing in North America. The agreement will equip DHL facilities with Stretch, Boston Dynamics’ newest robot specifically designed to automate the unloading process in distribution centers.”

SVT Robotics, for its part, is working with technology partners to simplify integration of systems such as voice picking, vision picking, automated guided vehicles (AGVs) or autonomous mobile robots (AMR) solutions and Internet of Things (IoT) monitoring.

“With our agnostic SOFTBOT Platform, companies can finally deploy automation and optimize their solution without six figure development requirements and lengthy custom integrations,” says T.J. Fanning, VP of growth at SVT Robotics.

costs of those processes down with better process efficiency and increased productivity,” Funke says.

“End-to-end automation is hard to attain, challenging for operational reasons and expensive. Plus, the reality is that warehouses rely heavily on the human-powered processes already in use. Companies need to rely on short implementation timeline pilots to ensure they are seeing results and can move forward with widespread rollouts of new technologies.”

Plus, it helps that automation is no longer a brave new frontier, but instead a mainstay that has become more commonplace in many of today’s supply chains. “[Automation is] proven and it works. With that fundamental thought in mind,

 AS/RS help store raw materials and finished goods.

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eliminating hang-ups starts with the basics.

The age-old adage of ‘don’t automate a bad process.’ When you get past the business essentials, you must look at the materials to be handled. Understand those and make certain the mechatronics applied are robust enough to handle the complete range of entities. When those activities are complete, you must complete some due diligence regarding the ‘most bang for the buck.’ If 5% of the need drives 30, 40 or a greater percentage of the cost, look for an alternate solution for the 5% and reap the benefits for 95%. Make sure you have a good plan to maintain the system, whether that be a service contract with your solution provider or your own well-trained employees. Lastly, find a proven solution partner that you can trust. Work closely and collaboratively, while establishing a healthy, open two-way dialog,” says Swovick.

When considering automation plans, Fanning suggests to “start with a five-year vision and assume that the hardware will reduce in price by 40%.”

Start small, continuously optimize and transition accordingly.

THE STATE OF WAREHOUSE AUTOMATION

T

he driver shortage has been a significant issue in the supply chain, but since the Coronavirus disease (COVID-19) pandemic prompted the Great Resignation, the warehousing sector is now just as affected. That, in addition to changing

consumer needs and an immediate jump in e-commerce, warehouses continue to look to automation to bridge the gaps in operations, improve efficiency and accuracy and ease the burden of manual labor on human employees.

That’s because warehouse automation will hit beyond $30 billion in market value within four years, growing at a 14% rate, according to a market study from LogisticsIQ. “Labor cost and shortage have been the biggest driver due to a huge demand from e-commerce in last decade,” says Avi Gupta, principal analyst for LogisticsIQ. “Things have accelerated further with additional demand due to pandemic and we can witness e-grocery fulfillment as the latest trend at present. Picking and packaging are the new focus for the warehouse automation as it is the least automated and time-consuming function.”

The future of warehouse automation also lies in automation, robotics, wearables and other technologies coexisting and working together through a warehouse execution system (WES), according to Deloitte.

What’s more is, Deloitte reports that private 5G networks will grow to enable the Internet of Things (IoT) in the warehouse. Other future trends include interoperability of robotic solutions using sensors, digital twins for variable planning, integrated control towers to handle operations, real-time performance monitoring and issue detection and improvements to vision technology and artificial intelligence (AI).

Want to learn more about the state of warehouse automation?

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future.

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MARCH/APRIL 2022 | FOOD LOGISTICS

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3PL / COLD CHAIN

BY BRIELLE JAEKEL, MANAGING EDITOR

WHAT’S THE DIFFERENCE BETWEEN FTL AND LTL LOGISTICS?

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Changing needs in the logistics space generates new questions for shippers, like whether they should use LTL or FTL freight services.

E

very shipper has different wants and needs for their cargo, which can often change along with the evolving business landscape in both the consumer and supply chain worlds. Now that consumer demands shift to more online ordering, even in the cold chain industry, the way trucking companies carry cargo is different as well.

Trucking loads are separated into two categories—full truckloads (FTL) and less-than-truckloads (LTL)—and shippers can choose which one to hire based on their needs.

The meaning of FTL FTLs are shipments that take up a significant amount of space in a delivery truck, where the driver is likely going to only one or a very limited number of destinations. FTL trucks may stop off while enroute to its destination, but these are normally shipments that are on one bill of lading going to one destination and shown in capacity of volume or weight. These loads are typically more than 32 linear feet, can weigh from 20,000-42,000 pounds or consist of more than 20 pallets.

The meaning of LTL

Loading smaller packages from different shippers is known as LTL.

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LTL trailers consist of numerous shipments from different shippers for different destinations. Almost like Uber’s Pool feature but for cargo in a truck instead of passengers in a car. These shipments’ destinations are typically toward the same general direction, and the LTL transportation strategy takes it closer to the destination but usually not all the way there.

LTL cargo is usually no more than six pallets, weighs between 150-5,000 pounds, never takes up an entire truck and is priced based on the amount of space in the truck it fills. Because these trips consist of numerous destinations, the time of delivery is longer.

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The growth of online ordering changes both FTL and LTL.

MARCH/APRIL 2022 | FOOD LOGISTICS

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3PL / COLD CHAIN

FTL vs. LTL freight Traditionally, shippers choose FTL for a large product shipment that is worth it for a logistics company to focus the trips’ attention on. This is why FTL shipments are typically larger, more expensive, only one destination and on one bill of lading. While the entire shipment is more expensive than an LTL, it is generally lower cost per unit, like buying in bulk as a consumer. The trip is often faster due to the lower number of stops, which is more convenient for the driver and costs less for the transportation company. FTLs also require less handling of the products.

LTLs are often more expensive per unit, require more handling, take up less space and are a part of many other shipments from numerous shippers and stops on the trip. This type of shipment helps when there many shippers that have many smaller loads to transport, since it would be inefficient to make long-distance individual trips for each small shipment.

Many times, an LTL shipment will be loaded and unloaded up to or more than five times in one trip before reaching its final destination.

Because of this, LTLs are less predictable in terms of delivery and sees a higher risk of damage.

According to Kory Harb, senior product manager of HaulSuite, LTL typically works best with palletized and uniform shipments so the carrier can maximize the space used in a trailer. For fragile or large and awkwardly shaped loads that take up more room in the trailer, parcel companies or FTL carriers may be a better and more costeffective option.

However, when it comes to FTL shipments, shippers are pigeonholed to one type of commodity, and shipments with different needs are not possible.

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For instance, if the shipper wants to transport different products with different temperature needs, an FTL shipment will not be possible. This instead would require numerous, smaller LTL shipments in ways that can accommodate each cargo’s individual needs.

“The problem with FTL shipments is that you must pay for the entire commodity prior to the actual sell of the product in many cases in addition to paying for transportation costs,” says Reo Hatfield, VP of business development at TA Services.

“LTL shipping allows the destination purchaser to buy only what they expect to sell in the near future, saving them money and allowing the freight to be available in

The difference in FTL and LTL depends on what the shipper needs.

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a timelier manner. Full truckload shipping can also limit a shipper to transporting only one type of commodity at a time.

Because of this, LTL shipping may be the better option for shippers looking to have multiple mixed commodities available for consumers. The LTL shipping method

allows shippers to transport in sizes that are closest to the volume of considered potential sales activity.”

Trends in FTL and LTL freight Because of the significant increase in demand and such changes in the industry, costs in both FTL and LTL shipping are on the rise. The rising costs coupled with decreased weight per shipment, increase in volume and severe constraints in capacity change things significantly for shippers and operators.

“Due to increased demand, rising costs and capacity issues stemming from driver and equipment shortages, transportation companies must become smarter about how they plan and route their shipments,” says Harb. “The old way of managing operations are inefficient so carriers need to adopt new technologies and processes to help them adapt and overcome these challenges. The carriers that embrace technology will be more efficient and will be able to compete more effectively. These advantages will translate into faster deliveries, more efficient pricing and increased quality of service for shippers.”

Additionally, technology changes along with these evolving demands. In both FTL and LTL freight, shippers tap newer, more robust transport management systems (TMS) that use data to select the best matched carrier for the type of shipment. Ken Sherman, president of IntelliTrans, says that TMSs can gather a wide range of data throughout the enterprise, consisting of information that helps make better decisions and address problems. Shippers can use the data to allocate transportation capacity and improve service in a cost-effective manner.

There will also likely be a shift toward

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Smaller packages with smaller weights are becoming more frequent in logistics.

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dedicated and private fleets, as companies make moves to ensure their supply chains are protected and LTL carriers will become more selective in shipments they accept. Oddly shaped, lengthier sized and non-palletized cargo will accrue additional fees, especially as more shipments made for FTL spill into the LTL space due to the growing capacity constraints.

For the FTL space, shippers that act in a manner that makes for a positive experience for drivers in fleets will become preferred as the driver shortage impacts the space. Given the greater need for logistics providers, FTL carriers will have the ability to be selective about which customers they ship for.

Outside firms and FTL providers are likely to invest in their own LTL services, since the sector continues to grow at a rapid pace while taking up a smaller percentage in the overall number of shipments. New multi-carrier networks will become more of a staple as asset-light or non-asset logistics providers sub-contract partial or even full needs out to other carriers.

Once the pandemic subsides, its lasting impression on rates and operation will remain.

“Rates for transportation will continue to go up as supply chains recover from the pandemic,” Sherman adds. “Port congestion, worker shortages, supplier shortages put pressure on rates and services. Companies need visibility into their shipment processes so they can monitor costs, shipment locations, cargo security and more to make sure that what is shipped, regardless of the method, arrives at the right place at the right time.”

The future is open for innovation as shippers and carriers alike try to mitigate growing costs and a shortage in materials and workers.

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21

SECTOR REPORT

WAREHOUSING

FARM (TO WAREHOUSE) TO TABLE: Designing the Automated Warehouse of the Future

Because an AS/RS can operate in extreme conditions, workers can reduce exposure to sub-zero temperatures, eliminating both a safety hazard and significant area of productivity loss.

Westfalia Technologies

A

s families gather around the kitchen table, they want to know the food on their table is fresh, safe and handled with care. However, the CDC estimates that roughly 48 million Americans suffer from foodborne illnesses each year. With reputation and market value being top priorities for the food and beverage industry, efficiency and compliance in food and beverage storage is crucial to a company’s longevity, especially in temperature-controlled environments. Considering that the cold storage market is projected to increase to over $330 billion by 2030, it’s critical for food and beverage manufacturers to operate safely and be efficient while doing so.

To accomplish this, many warehouse owners are looking to expand temperature-controlled storage capabilities, including refrigerated and frozen storage options to accommodate current and future demand. Not only that, manufacturers and distributors must consider other supply chain trends like the labor shortage and the influx

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of SKUs, all while keeping an eye on future growth.

Today’s food and beverage leaders can do this in four ways.

1. Automation’s role in the future warehouse Large conventional warehouses that experience high SKU counts and large case volumes inevitably find themselves facing issues with first-expired, first out (FE+FO) rotation, lot skipping and general storage inefficiencies when facilities become too large. A transition toward automation pivots away from laborious tasks such as manual case picking and pallet handling. Efficiency gains in both labor productivity and reliability, energy consumption and stateof-the-art data mining capabilities are enjoyed by those investing in more automated systems.

A highly effective solution would be to implement an automated storage/retrieval system (AS/RS), reducing key operational challenges often faced in conventional

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warehouses. With an AS/RS, products can be retrieved from storage with significantly less touches, meaning less opportunity for damage, contamination or wastage. Implementing an AS/RS also makes up for the labor gap exacerbated by “The Great Resignation.”

In fact, because an AS/RS can operate in extreme conditions (like -30°F), workers can reduce exposure to sub-zero temperatures, eliminating both a safety hazard and significant area of productivity loss.

2. A data-driven design Finding a company that offers warehouse automation solutions is easy, however, seeking a long-term partner when making the transition is essential to success.

Regardless of system design, automation solutions should always possess a data-

centric approach from the start. In fact, this should be one of the first critical steps for designing the right warehouse automation solution.

If that inventory and order data is not

available, then the right partner can help collect it.

This methodology is the first step in implementing a successful automated system as it lays the foundation for a risk mitigation framework. Ultimately, risk mitigation will help eliminate downtime, reduce

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23

SR: WAREHOUSING continued maintenance costs and ensure redundancies are designed into the system as needed.

One of the benefits of AS/RS is that it can be implemented in virtually any warehouse, new or existing, regardless of SKU or pallet volume. For example, retrofitting existing infrastructure has the versatility of scaling as low as 20 feet, with systems specifically designed to maximize cube. A data-first approach allows businesses to determine specific pain points so the system can be customized to solve specific challenges and meet industry requirements.

3. A standard of sustainability As consumers increase focus on making ethical and progressive buying decisions, sustainability should be a core value for a future-focused food and beverage company. Utilizing an AS/RS contributes to greater energy efficiency, especially in a temperaturecontrolled

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environment, and decreases the overall footprint of a facility by up to 50% or more. Opting for a vertical warehouse design with AS/RS allows for a landlocked facility to expand, while preserving valuable land space. Bringing sustainability into warehouse design not only builds customer loyalty, but also translates to up to 40% less energy use and therefore lower energy costs, too.

to evaluate peaks in demand and promote re-slotting of certain items to improve productivity.

AS/RS can also be programmed with just-in-time (JIT) order fulfillment, which reduces product having to be re-stored, so inventory isn’t sitting on the loading dock for long periods of time. In fact, JIT order fulfillment helps ensure that orders are picked in congruence with truck arrival times, reducing the size of a staging system.

Ultimately, an AS/RS is ideal for food and beverage and temperature-controlled warehouses with high SKU counts and case volumes.

Creating an efficient and sustainable warehouse is extremely important to longevity in the food and beverage industry. With the right automated system designed for your needs, the

4. A system is only as good as its software While automated warehouse systems come in many forms, the right warehouse execution system (WES) or warehouse management system (WMS) is critical to the overall functionality of the system. Employing proper software alongside warehouse automation provides several key benefits including increased traceability and reduced fulfillment errors. The ability to track product movement accurately and in real time with detailed logging of all automation events provides insights that were previously unavailable. It also helps avoid costly mistakes by reducing unexpected stock-outs, back-orders and fulfillment errors.

A WES will also supply data from inventory and order fulfillment events, turning that data into forecasting and trending models. For example, better planning tools allow operators

best software to manage the facility and the data to ensure product safety, consumers and suppliers can rest assured they’re receiving the best quality food–from the farm or factory to the warehouse to their table.

ABOUT THE AUTHOR DAN LABELL president, Westfalia Technologies

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SECTOR REPORT

TRANSPORTATION

RUN YOUR SUPPLY CHAIN LIKE A CRUISE SHIP

I

magine you’re laying on a cruise ship deck, the sun is shining, your “out of office” replies are on and you’re about to hit up the second round of that all-you-can-eat buffet. You’re probably not thinking about the fact that the dairy products in your breakfast are unpasteurized, or the cocktail you’re enjoying is duty-free.

From nearshoring to offshoring to just-in-time (JIT) fulfillment, the food logistics world is complex and constantly working behind the scenes, so consumers don’t have to think about those details. Cruise ships are an anomaly—floating in international waters where they can source tastier food at a lower cost without worrying about duties or compliance delays.

As the food logistics world faces new challenges every day, today’s food manufacturers and distributors

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could learn a thing or two from those who operate in international waters. Let’s walk down the path of least resistance—global trade management.

Nearshoring vs. offshoring vs. just-intime fulfillment: Time to reassess?

First, it’s important to understand the different tactics global supply chains use to save costs, distribute faster and manage international regulations. Offshoring is the practice of developing supplier and logistics partnerships in developing countries because it has made fiscal sense to offshore operations. However, as fuel and shipping container costs continue to rise—skyrocketing further since the beginning of the pandemic—many chief supply chain officers (CSCO) are reassessing their strategy, both

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from a cost and reliability perspective.

One alternative to offshoring is nearshoring, locating operations in a bordering country to save costs, while still being close enough to the customer base to make fiscal sense. However, cross-border distribution can be complicated, requiring specific customs documentation or costly duties to get the product from facility to customer on time.

Both near and offshoring have played a part in the proliferation of the JIT fulfillment model. JIT was originally used to achieve high-volume production and eliminate waste, with the goal to minimize inventory on hand to meet demand “just in time.” In a post-pandemic world, that strategy needs to be rethought. Take an appliance manufacturer for example who makes refrigerators for global distribution.

During the pandemic, their manufacturing facility ran out of a certain sized bolt, causing the entire production line to be shut down for months.

In the face of the pandemic where food manufacturers and logistics providers have been unable to meet demand or supply basic materials because the inventory was stuck overseas in an offshore facility or a specific ingredient was out of stock because it was stuck on a shipping container off the coast of California, it’s simply not a viable choice for businesses today amid unprecedented disruption. When the inventory is so lean that a single part can shut down production for months, it’s time to rethink your strategy.

But, many manufacturers and distributors will ask, if I no longer follow JIT, how can I afford to pay 25% duties and carrying costs on inventory that I may or may not use?

The real question should be, how can I best serve my customer, at the lowest possible overhead, while still preparing for supply chain disruption?

That’s where solutions like foreign-trade zones (FTZs) and global trade management come in.

and taxes. However, FTZs offer a solution to that. In fact, using an FTZ is a lot like cruising in international waters.

FTZs, also referred as “free-trade zones,” are designated areas in the United States where goods may be received, packaged, manufactured, processed and re-exported without the intervention of the customs authorities. In essence, FTZs allow domestic activity involving foreign items to take place prior to formal customs entry.

As a result, manufacturers and distributors can leverage these zones to drastically reduce or eliminate duty costs and improve supply chain productivity. Savings on weekly entry fees, duty exemption and inverted tariff relief, to name a few, can add up to millions of dollars in cost savings and offer a strong competitive advantage for U.S. manufacturers and distributors.

Take liquor distribution as an example. If a beverage distributor does not use a FTZ or deferral bonded facility, they have to pay both federal and state taxes, which can add up quickly. With FTZs, the alcohol is brought into the zone, then distributed to the individual states, but they only pay that tax once.

As a manufacturer or food logistics organization navigates a change in their supply chain strategy, it’s important to undergo a cost/benefit analysis to identify key areas that may benefit

from an FTZ. Some may ask, FTZs are a great way to eliminate heightened costs, but what about other areas of my business affected by supply chain shortages and disruptions?

When navigating a supply chain strategy shift, it’s critical to understand all affected elements of your business, such as: •Duty implications of changing your source/country of origin.

•Applicable free trade agreements.

•Differing cross-border regulations or jurisdictions.

When a company distributes a product, especially in the food and beverage industry, the process is complex, with different rules for each country of origin.

While FTZs are an unbeatable cost-saver, it can put a wrinkle in the overall global trade process.

Grab your passport: Global trade management In the food and beverage industry, regulations and requirements differ depending on the destination and/or country of origin. For example, what’s considered “gluten-free” in the United States is different than in Australia. Or virgin olive oil in the states is classified differently than what it is in Europe. This is primarily due to differing organizations—

Solutions like foreign-trade zones (FTZs) assist growth in global trade management.

Set sail on a new global trade strategy It’s important to note that one of the many reasons companies have chosen to nearshore is to avoid costly U.S. tariffs

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QAD Precision

MARCH/APRIL 2022 | FOOD LOGISTICS

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SR: TRANSPORTATION continued

U.S. Food and Drug Administration, Australian Department of Agriculture and Water Resources, the European Food Safety Authority, to name a few, that regulate the food and beverages that enter and exit their jurisdiction.

As a food logistics organization, ensuring compliance with these entities is critical to promoting a safe, efficient and costeffective supply chain for a company and its customers. Global trade management (GTM)

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software can help reduce friction for distribution channels across international borders. Much like a cruise ship that can import from Europe, the United States or China without regulatory disruptions, why shouldn’t your business?

GTM can automate cross border distribution, seamlessly identifying the documentation, customs reporting, procedures and certificates needed to get the products from a facility to the customer quickly and in the most cost-effective way. This is often done through import/ export management, restricted party screening and FTZs. GTM can also standardize shipping processes across organizations, track and manage deliveries, verify freight costs and switch between carriers if needed.

This not only

improves the bottom line, but also builds customer loyalty and takes advantage of every tool available to ensure on-time and cost-effective delivery for the supply chain and its customer.

It’s time to rethink your supply chain strategy. In a new post-pandemic world, nearshoring, offshoring and JIT may no longer fit your business needs—or your customers’. Take the time to evaluate your processes so your supply chain is ready for today’s challenges and beyond. Much like the all-you-can-eat buffet on the next cruise, one thing is guaranteed—with global trade management, it’s smooth sailing from here on out.

ABOUT THE AUTHOR COREY RHODES CEO, QAD Precision

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FOOD LOGISTICS 2022 TOP 3PL & COLD STORAGE AWARD This coveted award recognizes third-party logistics and cold storage providers that exceed the crucial demands of the cold food and beverage supply chain.

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SECTOR REPORT

SOFTWARE & TECH

BY HANNAH GOOCH, ASSOCIATE EDITOR

VISIBILITY IN A TRANSPARENT SUPPLY CHAIN

Unveiling the source of privately labeled products creates a social connection between local or diverse sources and customers. yanadjan/Adobe Stock

W

ith the pandemic, labor shortages, port congestion and a myriad of disruptions, supply chain visibility has never been more pertinent. Luckily, the need comes at a time where innovative technology is accessible to a resilient and driven supply chain.

From real-time data to Internet of Things (IoT)-based sensors, both companies and consumers can track shipments at every step of the supply chain process.

To help decipher and report on the process, companies like MaetaData utilize technology solutions.

“We have our own proprietary data that we provide to others, so we end up being the technology others rely on,” Linda Mallers, CEO and president, MaetaData says. “We provide insight in two ways. One is to provide insights for individual foodservice locations such as schools, universities, hospital systems and workplaces to generate insights by their own definition of local and

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sustainable supply chains, and the other is to provide identical insights to enterprise clients—foodservice management and distributors—across their organization.”

MaetaData, like most companies, was not immune to the disruptions that plagued the supply chain over the past year. However, the company’s solutions have become more valuable than ever as a transparent supply chain is now an expectation.

“While it has not changed what we do, the pandemic has highlighted what we are doing and our value,” Mallers says. “We are still seeing customers, particularly schools, struggling to get the foods needed to feed students at the most basic level. You are seeing the USDA relaxing nutritional standards, even creating temporary standards, and you are seeing pizza being served when nothing else is available. There are countless stories of foodservice heroes doing what they can to provide lunch. All of this, however, is evidence of the dire need

for supply chains to be more diverse, and thereby, more resilient. Relying on one or two suppliers for a product is now seen as a potential risk. This, in turn, creates great opportunity for new, smaller, regional, women- and minority-owned suppliers to enter supply chains that were once closed to them.”

Transportation management systems (TMS) and warehouse management systems (WMS) are also becoming more commonplace in warehouse environments, however additional technologies such as robot operating systems, analytics and navigation will be more prevalent in coming years.

“We can expect the software related to robotics analytics and simulation for utilization and optimization, ROS (robot operating system) and navigation, as more robots (AGV/AMR) and shuttles are expected to be used in the warehouses or dark stores,” says Sunny Mehta, principal consultant at LogisticsIQ.

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According to a survey conducted by Food Logistics and Supply & Demand Chain Executive, https://foodl.me/2kanym, the best software to use when first implementing automation is cloud-based software solutions and track and trace.

“Automation is just a big trend right now,” says Rob Wilson, managing director and partner at L.E.K. Consulting. “If you’re a grocer, you’ve already had the need to accelerate. This is only further accelerated because long-term labor costs are going to continue to rise and it’s just creating more of an incentive for folks to look to automate where possible. You can’t always replace people and thank goodness for that, but there are certain things that can be automated. A bolder view from some is that this is going to the model of grocery because grocery is historically operating on razor-thin margins.”

To stay on top of the newest supply chain visibility technology trends, Mallers recommends not getting caught up in hype, but rather to keep reading to stay informed.

“Two years ago, we were invited to the USDA to meet with Secretary Purdue. It was a small group invited to discuss the potential benefits of blockchain in the agricultural supply chain. We were invited because we represent small growers and regional businesses. We have had a patent-pending type of blockchain since we started. It collects data through the chain of custody from farm to customer,” Mallers explains. “Sometimes, solutions don’t need to be as complicated, or as expensive, as one would think to deliver full transparency. Today, headlines are filled with technology trends like blockchain, bitcoin, NFTs and W3, which can intimidate small and regional food producers that make our supply chains diverse. Certainly, precision agricultural solutions are needed to feed our planet at scale, and require very sophisticated innovation and automation, but are not mandatory for all of us. A suggestion would be to keep reading and know the difference between where science is needed versus solid record-

keeping that is transparent and visible online.”

The future of supply chain visibility relies on a mix of new technology and regulations. In a transparent supply chain, every business is accounted for from source to distribution.

“The FDA has new Food Safety Modernization Act (FSMA) regulations for food safety that put increased scrutiny on the entire food supply chain,” Mallers says. “A concern we are seeing is how to balance supply chain diversity with new regulations that have high cost and compliance complexity. We are beginning to be called upon to bridge this gap, which is exciting. Solutions can no longer exclude all but large national suppliers, as business is now won and lost in the bidding and RFP process based on the ability to transparently demonstrate support of small, local, MBE/WBE/BIPOC businesses.”

Supply chain visibility will only grow as more disruptions continue to plague U.S. supply chains.

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SECTOR REPORT

PACKAGING

L

abeling is an important step in the food manufacturing and shipping process but does not get as much attention as some other aspects of the supply chain. Add in the factor of the extreme cold temperatures in a cold chain warehouse or a reefer truck and those that deal with the labeling parts of the process have quite a bit to keep in mind.

For starters, regulation and safety is top of mind when it comes to labeling in food, with regards to both the packaging label of the product as well as the backend identification labels for storage and logistics purposes. Because consumers directly ingest these products, influencing consumers’ health, the cold food sector is more regulated than most.

“New technology, government regulations and shifting consumer demands for more choice, convenience, healthy ingredients and transparency are making cold chains—and all food supply chains— increasingly complex,” says Maggie Allen, senior account executive at Loftware. “This is especially true when it comes to labeling.

“Unfortunately, label design and creation are often relegated to a background operation, and many businesses are still using dated and disparate systems. This leads to a plethora of problems, many of which can be disastrous to a brand, and worse, life threatening to consumers,” she adds.

Allen explains that modern technology is an important part in keeping up in this industry. Cloud-based labeling software that integrates directly with leading enterprise resource planning (ERP) and manufacturing execution systems (MES) applications allows for more agile pivots to stay on top

BY BRIELLE JAEKEL, MANAGING EDITOR

HOW DOES LABELING HOLD UP IN COLD STORAGE? Ensuring that labels do not fall off in cold storage is key.

of fast changes regarding regulation. Disparate systems with siloed, on-premises-only solutions can cause lost time, money and productivity.

Even adhesives gain modern innovation Beyond regulation, those working in cold

ID Label

Barcoding becomes more sophisticated in today’s warehouses.

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storage need to consider the actual adhesive of the label to hold up in extreme cold environments. Extra steps and the right labels need to be used to ensure performance. Ensuring accurate storage labeling that holds up in the cold helps productivity and the safety of the product. There are also many other factors to consider in a cold warehouse other than just the temperature.

“There are several environmental factors that affect warehouse freezer label performance,” says Malcolm Aitken, VP of sales at ID Label Inc. “This includes the installation conditions, facility temperature and the adhesives and materials used. Standard do-it-yourself barcode labels are not likely to perform reliably in a cold storage facility.

Conventional adhesives will harden in the frigid environment and the labels are likely to peel and fall from their rack beams in short order.

“You also must understand the type of

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and then allow 48 hours for bonding.

For the facility labeling side, label materials and adhesives progressed dramatically in the last few years, moving from general all-purpose adhesives and paper face sheets for everything to customer solutions for specific applications and environments.

The cold storage industry’s growth in popularity throughout the past few years pushes

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surface on which the location labels will be applied to find the best solution. Many adhesives bond well with painted metal, powder coatings, plastics and other surfaces. For upright racks with ‘teardrop’ holes, magnetic labels are highly recommended,” Aitken says.

“For maximum adhesive bond strength, surfaces should be clean and dry, free of moisture and frost. If there is frost build-up on poor-quality labels, mobile devices won’t be able to scan them accurately. With workers who are probably wearing bulky gloves, being forced to manually enter data due to failed scans is particularly inconvenient and time consuming. And there is greater opportunity for costly mistakes due to human error,” he adds.

ID Label recommends a four-step process to install warehouse freezer location labels such as acclimate the labels in the cooler/freezer for 24 hours; apply labels to a clean, dry surface; press firmly to apply

managers to make more focused decisions, even when it comes to the right adhesive in labeling.

Additionally, newer warehouse management systems (WMS) and other technologies rely on new forms of barcode labeling and signage, as the entire business landscapes adopts a more mobile approach to hardware. The mobile imagers of today are more sophisticated than their predecessors, says Aitken, allowing the ability to scan from longer ranges with increased scan read rates. This means that labels can include greater capabilities like two-dimensional barcodes, which can store thousands of characters of information through vertical and horizontal data encoding.

Other new technologies enable direct printing on production and packaging lines through coding and marking devices that can print on any surface, according to Allen.

“But what’s important to note is that there is significant momentum in this area due to the recent advancement of technologies and the availability of integrated solutions to support these devices,” she adds.

“Traditionally these devices have been driven as closed systems with manual entry or purpose-built software for single devices.

This, of course, can lead to mislabeling and delays in switching lines over, along with a lack of consistency with multiple different approaches.”

The growth of technology and consumer demand affects so much of the supply chain today, even the adhesive and labeling technologies see a modern makeover. The more efficient these processes and technologies allow in operation, the stronger the supply chain will become.

Accurate labeling is extremely important when it comes to food.

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SECTOR REPORT

FOOD SAFETY

BEST PRACTICES 9

FOR ENSURING FOOD SAFETY AND QUALITY

F

Preserving quality and minimizing loss Delivering poor-quality perishable products or past-ripe produce only erodes customers’ loyalty and gives them a reason to switch to different brands or shop at a competitor’s grocery store. That’s why temperature control for quality (TCQ) initiatives throughout the cold chain are critical to maximizing freshness and minimizing shrink.

If produce becomes too ripe, it will naturally have a shorter shelf life. Pre-conditioned fruits such as avocados should be carefully monitored to ensure they are continuously kept at the correct temperatures.

Maintaining proper temperatures for safety Keeping shipping temperatures at precise setpoints throughout the journey from farm to fork is critical to ensuring that food is safe to consume while preserving perishable food quality. Temperature control safety (TCS) initiatives are mainly concerned with the safe shipping of fresh and frozen meats, seafood, select produce

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and dairy products. If temperatures deviate from safe ranges or become too warm, the safety of fresh and frozen meat along with seafood will degrade and product will purge (or release water) initially, then begin to grow and spread bacteria, which increases the risk of foodborne illness.

Cross-contamination can also occur when meat, seafood and produce are stacked together closely within a transport shipping container or arranged on a stack of pallets, which increases the potential for foodborne illness outbreaks and customer injuries. Improper sanitization procedures between loads can also lead to cross-contamination.

Emerson

ood retailers have long focused on ensuring food quality and safety; now consumers are increasingly concerned about these issues as well. In a recent Emerson study, 51% said they worry about the safety of fresh and frozen foods during transportation to stores and would be less likely to shop from stores that aren’t using the latest technologies throughout their supply chain to help ensure food safety.

So, the challenge for retailers has become how to meet these consumer expectations while also protecting their brand reputations. The solution? Adopt best practices that maintain strict temperature adherence at every step of the food supply chain.

Best practices for perishable food transport So, how can grocery retailers ensure food safety and quality?

Here are nine best practices for retailers to adopt from inbound harvest and transport to outbound shipping and receipt from distribution centers: 1. Pre-cooling. Stabilize product temperatures with a process after harvest and prior to loading in refrigerated shipping containers.

2. Transport refrigeration. Ensure proper refrigeration and insulation of reefer trucks and trailers.

3. Inspection. Visually inspect trailers between loads to ensure a clean and contaminant-free space.

4. Temperature stability. Maintain continuous setpoint temperatures throughout a trip; do not permit the use of fuel-saver mode or starting/stopping of refrigeration.

5. Calibration. Annually calibrate the thermistor(s) of reefer trucks and/or trains.

6. Loading. Correctly load pallets to

enable proper airflow and consistent temperatures from the front to the back of trailers.

7. Load transfer and receipt. Do not allow trailers to sit in receiving docks for extended durations, especially in warm regions; limit opening of trailer doors to maintain holding temperatures.

8. Avoid mixed loads. Avoid trying to save fuel costs by mixing loads with a combination of fresh and/or frozen products with different ideal temperature setpoints.

9. Data logging. Enable the automatic capturing and recording of trip temperature data for reporting and verification of quality assurance and to help resolve disputes or questions over rejected loads.

Protecting consumer safety is an ethical prerequisite for food retailers. Partner with an expert to deploy the modern tools and technologies needed to address the many challenges associated with perishable cold chain management.

ABOUT THE AUTHOR DOUG THURSTON VP of sales, cold chain digital solutions Emerson

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SECTOR REPORT

A

WAYS A DIGITAL FOOD SAFETY SYSTEM CAN DRIVE OPERATIONAL EFFICIENCIES

ccelerated by the Food and Drug Administration’s (FDA) New Era of Smarter Food Safety, digital food safety systems are the way of the future.

The New Era of Smarter Food Safety is the FDA’s latest initiative to improve food safety throughout the entire supply chain.

It’s never been more clear that food safety regulations are modernizing and the technology used to monitor food safety needs to modernize, too. And, digital food safety systems are a critical solution to achieving this goal. But, these systems don’t just ensure you are meeting industry standards; they also create efficiencies across the entire operation, including increasing auditing speed, standardizing workflow management and automating temperature monitoring.

Reducing time spent auditing and recording As part of the New Era of Smarter Food Safety, traceability records are now required as original paper records, electronic records or true copies. These records must be legible and kept in good condition. In the event of a food safety incident, such as a foodborne illness, the FDA will request traceability records be submitted in the form of a searchable spreadsheet within 24 hours. If reliant on a paper system, an audit could take days to compile, transfer and complete, let alone finding the storage room to house the paper trail is difficult. All that to say, an audit would consume a lot of time and resources to meet the 24-hour deadline.

A digital food safety system, on the other hand, makes this process a lot easier. It uses a cloud-based system to automate the recording and reporting of food safety data. If a company is asked to collect, organize and present documentation within 24 hours, the process would only take hours and

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require very few resources to complete (with a lot less chance for human error).

With some systems, data can even be exported as a searchable spreadsheet.

This not only improves operational efficiency, but it also helps ensure reliable data.

Standardizing simple, everyday compliance tasks

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FOOD SAFETY

Digital solutions can also standardize common food safety procedures. Everyday compliance tasks, such as product logging, temperature checks and cleaning and sanitation are tedious and time consuming and can lead to poor workflow management.

Luckily, advanced food safety systems can automate certain tasks and/or provide a digital management tool to track complete and uncomplete work right from a mobile or computer application. This also increases visibility to day-to-day operations and helps free up employees’ time to focus on other core areas of the business, such as customer service. But, keep in mind, not all digital food safety systems are created equal. Some systems include customizable software modules that can be configured to meet specific HACCP requirements as well as local legislative requirements.

Around-the-clock refrigeration monitoring A digital food safety solution can also save costs by sending notifications and real-time refrigeration alerts to eliminate breakdowns, preserve inventory and prevent spoilage. It also includes traceability modules to help track items throughout the operations. This solution is also tamper-proof

to prevent fraudulent entries.

Automation is the driver Implementing a digital food safety system produces efficiencies that will significantly cut costs from the bottom line. Automating parts of the process not only reduces time and labor, but also increases accuracy. But, where exactly does automation come into play?

One of the most critical aspects of choosing a food safety system is its ability to adapt to an organization’s needs. Find one that is flexible enough to closely mirror current food safety processes (even if it’s a paper process) to limit disruption and reconfiguration requirements.

Whichever digital food safety solution you choose, your organization will be more efficient and one step closer to a more reliable, safer operation. Welcome to the new era of smarter food safety.

ABOUT THE AUTHOR BRIAN DALY product manager, PENN Connected, part of Johnson Controls

MARCH/APRIL 2022 | FOOD LOGISTICS

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