Food Logistics June 2015

Food Logistics 2015 TOP GREEN PROVIDERS Pg. 27

2015 TOP PROVIDERS

®

Issue No. 167 June 2015

+

Global Supply Chain Solutions for the Food and Beverage Industry

SECTOR REPORTS •H ow To Prepare For A Warehouse Technology Upgrade • M obile Apps Evolve, Empowering Employees • A lternative Fuels: The Quest Continues

▼ ▼

• Free Flow Wines Pours On The Sustainability With Premium Keg Wine

▼

On Target With SUSTAINABILITY

Pg. 18

WEB EXCLUSIVES Dunkin' Donuts/Baskin Robbins Re-Engineers Its Supply Chain WERC Conference: Robots In The Warehouse Archived Webinars, including FL's Educational Webinar series WWW.FOODLOGISTICS.COM

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INTRODUCING THE NEW FORD TRANSIT

THE MOST VEHICLE CONFIGURATIONS IIN N IITS T S CLASS. C L A S S*.

OPEN FOR 6'5" TALL BUSINESS OVER

**

A WIDE VARIETY

With an available cargo ceiling taller than some basketball players, the Transit van has loads of room for boxes, tools 6'5" and you. That comes in handy if you want a mobile workshop that lets you stand up straight. And the advantages just keep piling up.

OF DIMENSIONS The Transit van and wagon are available in 2 different wheelbases, 3 different lengths and 3 different heights. That makes it easy to choose one that will fit you and your business exactly. And if that’s not enough, it’s also available as a chassis cab and cutaway.

THE NEW

2015 TRANSIT •

The Transit van is available with the best-in-class maximum rear cargo door opening height. The doors open a full 237° and the floor is as low as 28 inches.** It’s all about making loading and unloading easier. No matter what your business is.

THE NUMBERS DON’T LIE

•

* sed *B *Ba s on bodyy typ y e, e bod bodyy length, l , an and whee e lba lb se s and roof hei eiight ht. Clas asss is Full ull-Si -Size ze Van Vans. s. **W When h pr p ope o rly eq equip uipped p . ped † Claass is Fulll-S -Size -S ize ze Vaans, wh when en proope perly per lyy equ eq ipp ip ed. Ex Excluudes di d eseel comp comp ompeti etitititiv tivee mode tiv dels. ls. s s.

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The 2015 Transit can offer a best-in-class gas-powered maximum CARGO CAPACITY OF 487.3 CUBIC FEET.†

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ON THE MENU JUNE 2015 • ISSU E N O . 167

COVER STORY

In The 18 Sustainability Food Supply Chain: ROI Makes Strides

Research finds food and beverage players now cite sustainability as a competitive advantage. By Elliot Maras

SPECIAL REPORT

Logistics’ 2015 27 Food Top Green Providers 18

2015 TOP PROVIDERS

Our annual list of companies, products and technologies that are supporting sustainability throughout the global food and beverage supply chain.

By Editorial Staff

& TECHNOLOGY 44 SOFTWARE Mobile Apps Evolve

Evolving mobile technology and cloud-based software brings new management tools. By Elliot Maras

50 Voice Recognition Expands Beyond Order Picking

Voice technology can manage replenishment, transfers, cycle-counting, receiving and more in the warehouse.

By Elliot Maras

COLUMNS

STARTERS 6 FOR A Little Green Goes

A Long Way

Sustainability is a constant bright spot that spurs innovation and inspiration.

By Lara L. Sowinski

SECTOR REPORTS

36 WAREHOUSING How To Prepare

36

For A Warehouse Technology Upgrade

Retailers must effectively respond to the impact of e-commerce and omnichannel.

By Keith Phillips

40

40 TRANSPORTATION Alternative Fuels:

The Quest Continues

As alternative fuel vehicle technology continues to innovate, companies at the forefront are finding that switching fuels requires collaboration and strong partnerships

By Eric Sacharski

50

44

INSIGHTS 16 COOL Emerging Markets

Point To Future Cold Chain Infrastructures New cold chain innovations can play a pivotal role in developing economies. By Elliot Maras

(AND MORE) 52 FOOD FOR THOUGHT

Port Congestion Woes

Fallout from the recent labor disruption along U.S. West Coast ports continues to prove costly for shippers.

By Elliot Maras

DEPARTMENTS 8 SUPPLY SCAN

12 FOOD ON THE MOVE

51 AD INDEX

Published and copyrighted 2015 by AC Business Media Inc. All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording or any information storage or retrieval system, without written permission from the publisher.

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www.foodlogistics.com

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FOR STARTERS FROM THE EDITOR’S DESK

WWW.FOODLOGISTICS.COM

A Little Green Goes A Long Way

Published by AC Business Media Inc.

SOWINSKI

N

early a decade ago, I wrote a cover story for another B2B publication on sustainability in the transportation sector. Admittedly, it probably fell a little short in audience appeal. But, there were a handful of people in the supply chain industry who clearly understood the connection between sustainable supply chains and the impact on the bottom line. These weren’t tree huggers; they were shrewd executives.

There was a story shaping up and it was intriguing.

Shortly thereafter, the global economic crisis hit hard. I was certain that the early progress surrounding sustainability in the transportation sector would be jettisoned, particularly those initiatives that required an upfront investment with an ROI that wasn’t immediate.

Yet, that’s not what happened. The forward-thinking people who viewed sustainability as a business imperative actually doubled down. They went after the low-hanging fruit first, starting with their truck fleets—making sure tires were properly is inflated, reducing excessive idling, installing a constant bright spot speed governors—then fought hard to get funds for TMS solutions and other software that spurs innovation and equipment upgrades that could squeeze and inspiration. even more fuel efficiency from their fleets.

Today, sustainability is fundamental to supply chain strategy. “Green” equals lean; that’s easy. Sustainability is also a mindset. It’s a new way of thinking for companies and leadership who not only recognize the business case attached to it, but also appreciate the long-term benefits of sustainability beyond their organizations.

The food and beverage supply chain gets this—environmental stewardship and agriculture are intimately related. Moreover, food waste can be reduced substantially in developed and emerging economies, while food security can be improved as well.

Our annual “Top Green Providers” list, which highlights sustainability in our industry, continues to grow (page 27). The 2015 list is twice as big as last year’s and the depth and breadth of the various sustainable initiatives under way is impressive.

Sustainability is a constant bright spot that spurs innovation and inspiration. For example, in December, NPR reported on a movement to embrace “ugly fruit” as a way to reduce food waste. According to the United Nations Environment Program, as much as 20 to 40 percent of fresh produce is wasted because it doesn’t meet retailers’ cosmetic standards. French retailer Intermarche, the country’s third-largest supermarket, launched an “inglorious fruits and vegetables” campaign to cultivate consumers’ acceptance of less-than-pretty produce.

The movement is spreading throughout Europe and is even taking hold in the U.S. It is also another example of how sustainability continues to manifest in our industry.

Enjoy the read.

SUSTAINABILITY

6

LARA L. SOWINSKI, EDITOR-IN-CHIEF LSOWINSKI@ACBUSINESSMEDIA.COM

JUNE 2015

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201 N. Main Street, Fort Atkinson, WI 53538 (800) 538-5544 • www.ACBusinessMedia.com PRINT AND DIGITAL STAFF Publisher Jolene Gulley Editor-in-Chief Lara L. Sowinski lsowinski@ACBusinessMedia.com Managing Editor Elliot Maras emaras@ACBusinessMedia.com Assistant Editor Eric Sacharski esacharski@ACBusinessMedia.com Ad Production Manager Cindy Rusch crusch@ACBusinessMedia.com Creative Director Kirsten Crock Senior Audience Development Manager Wendy Chady Audience Development Manager Tammy Steller ADVERTISING SALES (800) 538-5544 East Coast Sales Manager Judy Welp (480) 821-1093 jwelp@ACBusinessMedia.com Midwest/West Sales Manager Carrie Konopacki (920) 542-1236; Fax: (920) 542-1133 201 N. Main Street, Fort Atkinson, WI 53538 ckonopacki@ACBusinessMedia.com National Automotive Sales Tom Lutzke (630) 484-8040; tlutzke@ACBusinessMedia.com EDITORIAL ADVISORY BOARD Smitha G. Stansbury, partner, FDA & Life Sciences Practice, King & Spalding Raymond J. Segat, director, cargo & business development, Vancouver Airport Authority Dr. Barbara Rasco, professor and interim director, School of Food Science, Washington State University Adriano Melluzo, vice president, national sales, Ryder CIRCULATION & SUBSCRIPTIONS PO Box 3605, Northbrook, IL 60065-3605 (877) 201-3915, Fax: (800) 543-5055 Email: circ.FoodLogistics@omeda.com LIST RENTAL Elizabeth Jackson, Merit Direct LLC (847) 492-1350, ext. 18, Fax: (847) 492-0085 Email: ejackson@meritdirect.com REPRINT SERVICES Carrie Konopacki (920) 542-1236; Fax: (920) 542-1133 ckonopacki@ACBusinessMedia.com AC BUSINESS MEDIA INC. Chairman Anil Narang President and CEO Carl Wistreich Executive Vice President Kris Flitcroft CFO JoAnn Breuchel VP Content Greg Udelhofen VP Marketing Debbie George Digital Operations Manager Nick Raether Digital Sales Manager Monique Terrazas

Published and copyrighted 2015 by AC Business Media Inc. All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording or any information storage or retrieval system, without written permission from the publisher.

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SUPPLY SCAN

D A I LY U P D AT E S AT WWW.FOODLOGISTICS.COM

NE WS FROM ACROSS THE F O O D SU PPLY C H AIN

FDA Seeks Comment On Mandatory Recalls

items such as milk, cereal, and baby food as well as household cleaners, The Wall Street Journal reported. Amazon has sought trademark protection for more than two dozen categories under its Elements brand, including coffee, soup, pasta, water, vitamins, dog food and household items like razors and cleaning products. Diapers and baby wipes—the latter of which is still on the market—were Amazon’s first line of Elements, available to customers who pay $99 a year for a Prime unlimited shipping membership.

The U.S. Food and Drug Administration has released a guidance document for mandatory recalls. The 7-page document has been released for comment and is presently non-binding. The purpose is to provide guidance to industry on the implementation of the mandatory food recall provisions of the Food Safety Modernization Act. The guidance in this document is in the form of questions and answers and provides answers to common questions that might arise about mandatory recall provisions.

ucts are getting notices of big price increases that could soon find their way to consumers.

FDA To Expedite Imports With Good Safety Record

Bird Flu Crimps Egg Supply The bird flu that’s squeezing the nation’s egg supply is creating headaches for food companies all along the supply chain — from agribusiness colossus Cargill to small-town bakers, according to news reports.

Bakers and others that rely on eggs as key ingredients for prod-

Grocery Giants Ahold And Delahaize Explore Merger With U.S. Focus Dutch grocer Ahold, which owns Peapod and several U.S. supermarket chains, and Belgian rival Delhaize, which owns Food Lion in the U.S., are exploring a merger, a source familiar with the matter said,

Amazon.com Expands Into Private Label Food Amazon.com Inc. is preparing to expand its fledgling lineup of private-label brands to include an array of grocery

The U.S. Food and Drug Administration (FDA) is establishing a voluntary, feebased program for the expedited review and importation of foods into the U.S. from importers with a proven food safety track record. The FDA is publishing a draft guidance for industry to explain how this new program will work.

The Voluntary Qualified Importer Program will benefit both industry and consumers.

Importers with a robust system of supply-chain management will receive expedited entry for imported foods that are in the program.

sending stock shares soaring, though analysts were split over the merits of any deal, according to Reuters. Both companies declined to comment.

U.S. SEAFOOD IMPORTS AND EXPORTS

Top 5 U.S. Seafood Imports

By harmonized tariff schedule (HTS) total value

$900

2013

$800

2014

2015

Millions

$700 $600 $500 $400

The U.S. seafood trade continued to grow in 2014 although total imports and exports in Q1 of 2015 have shriveled. U.S. exports of seafood in Q1 of 2015 have remained stagnant compared to Q1 of 2014 and U.S. imports of seafood have actually declined by 1 percent compared with last year. The leading import and export products continue to grow. Lobster, the U.S. top seafood export by total value, has grown rapidly since 2012. Shrimp, the top seafood import by total value, had its highest values ever in Q4 of 2014.

$300 $200

$6

$100 $0 Q3

Q4

Q1

Q2

Q3

Q4

0306.17.0040 - Shrimps & Prawns, Frozen & Peeled 0304.41.0010 - Atlantic Salmon Fillets, Farmed Fresh or Chilled

Q1

Q2

Q3

Q4

2014

2015

$250 $200

Billions

2013

2014

2015

$4

By harmonized tariff schedule (HTS) total value

$300

Millions

2013

$5

1605.21.1030 - Shrimps & Prawns, Frozen 0304.61.0000 - Tilapia Fillets, Frozen 0302.14.0003 - Atlantic Salmon, Farmed, Fresh or Chilled

Top 5 U.S. Seafood Exports

Imports

$3 $2

$150

$1

$100 $50

$0

$0 Q3

Q4

Q1

Q2

Q3

Q4

0306.22.0000 - Lobsters 0304.99.1130 - Surimi of Alaska Pollock, Frozen

8

U.S. Seafood Imports and Exports (by total value)

Q1

JUNE 2015

Q1

Q3

Q4

0304.75.0000 - Alaska Pollock Fillets, Frozen 0303.63.0000 - Cod Frozen 0303.90.4040 - Salmon Roe, Frozen

• FOOD LOGISTICS

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Q2

Exports Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q1

All data provided by Zepol. Visit zepol.com for a free trial.

Source: Zepol, www.zepol.com www.foodlogistics.com

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Pallet Flow

Push Back

Wide Span

Selective Rack

Cantilever

Warehouse Racking

SolutionS 8 7 7. 6 3 2 . 2 5 8 9

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SUPPLY SCAN

D A I LY U P D AT E S AT WWW.FOODLOGISTICS.COM

NEWS FROM A CROS S THE F O O D SU PPLY C H AIN

Coca-Cola Co. Unveils All-Plant-Based PET Bottle Coca-Cola Co. unveiled the world’s first PET plastic bottle made entirely from plant materials at the World Expo in Milan, Italy. PlantBottle packaging uses patented technology that converts natural sugars found in plants into the ingredients for making fullyrecyclable PET plastic bottles. The packaging looks, functions and recycles like traditional PET but has a lighter footprint on the planet and its resources. Since 2009, Coca-Cola has distributed more than 35 billion bottles in nearly 40 countries using its current version of PlantBottle packaging, which is made from up to 30 percent plant-based materials.

Watchdog Group: FSMA Requires Grocers To Post Recall Notices The Food and Drug Administration (FDA) must require grocery stores to post notices alerting their customers to food recalls in order to comply with the Food Safety Modernization Act (FSMA), according to the nonprofit Center for Science in the Public Interest (CSPI).

The group told Deputy Commissioner for Foods Michael Taylor that in-store notification is critical to protecting the health and safety of consumers who may not otherwise learn about recalled food products.

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A survey of CSPI members found 98 percent believed grocery stores should provide information on recalls with most wanting signs posted at the location at the site of the recalled product.

ConAgra To Pay $11.2 M Fine Over Food Poisoning A ConAgra Foods Inc. unit agreed to pay a record fine and plead guilty to a federal misdemeanor charge stemming from a 2006-2007 salmonella outbreak, according to Dow Jones Newswire. ConAgra will pay $11.2 million to resolve allegations that the company shipped contaminated peanut butter under its Peter Pan brand and Wal-Mart Stores Inc.’s Great Value label. The salmonella contamination sickened more than 700 people. The fine, the largest ever levied in a food safety case, marks the latest in a string of successful efforts by the U.S. Justice Department to hold food companies or their executives accountable for outbreaks of foodborne illnesses that, added together, have sickened thousands.

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Walmart Tells Suppliers To Reduce Antibiotics And To Treat Animals Well Walmart is pressing meat, seafood, dairy and egg suppliers to reduce the use of antibiotics, becoming the first large retailer to take such a public stand against the excessive use of drugs in raising farm animals, according to Reuters.

The voluntary guidelines would limit suppliers to using antibiotics to treat and prevent disease, and not for promoting growth, a controversial practice by livestock producers.

The move comes as concern is growing that excessive use of antibiotics in animals can spawn drug-resistant superbugs, endangering human health.

PeopleNet Acquires Cadec Global Inc. PeopleNet, a Trimble company, has acquired the assets of Cadec Global Inc. of Manches-

ter, N.H. Cadec’s driver and truckbased platforms coupled with its back office analytic tools enable companies to maximize the value of their foodservice and private fleets and improve customer service. The addition of Cadec will further extend the fleet mobility technology and transportation solutions of PeopleNet in the foodservice and private fleet industries.

Paxxal Inc. Releases Fully Recycleable Pallet Paxxal Inc., a Noblesville, Ind.-based material science and industrial technology pallet manufacturer, has unveiled its proprietary patented pallet.

Siluma constitutes virgin HDPE combined with high-

grade silica sand that is blended with a patented unifier. The combination of Siluma and high-volume, fully-automated, rotational molding pallet manufacturing capabilities enables Paxxal Inc. to create consistently-manufactured pallets with a fully-foamed core that is strong and 100 percent recyclable. Exempt from fumigation requirements, with resistance to bacteria, corrosion and creep, the pallet is suited for use in the food and dairy industry. www.foodlogistics.com

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DELAYS CAN CHANGE EVERYTHING. That’s why Penske Logistics has customized supply chain solutions to help keep your business moving forward.

Visit gopenske.com or call 844-868-0818 to learn more.

© 2015 Penske. All Rights Reserved.

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FOOD ON THE MOVE LOGISTICS TRENDS IN OUR INDUSTRY

House Of Representatives Approves Funding For U.S. Ports The U.S. House of Representatives passed a spending bill for water programs that would boost funding for ports to upgrade their cargo-handling capabilities, according to news reports. The bill, which also funds energy programs, would add $36.3 million to the harbor maintenance tax revenue that the Army Corps of Engineers can use to dredge harbors at major ports in the 2016 fiscal year that begins Oct. 1.

Target, Walmart Race To Build eCommerce Fulfillment Centers Competition in e-commerce has set off a construction race in the physical world.

Walmart and Target Corp. are busy building giant new facilities to fulfill ever-growing numbers of online orders, according to The Wall Street Journal. In the current quarter, Walmart expects to open four such facilities, each more than 1 million square feet.

CN Rail Invests $20M To Expand North American Cold Chain Canadian National Railway Co. (CN) announced a $20-million investment in the expansion of its cold supply chain capacity to help producers and distributors of chilled or frozen foods grow their businesses in North American and overseas markets.

To accommodate growth, CN is acquiring 200 more domestic, 53-foot temperature-controlled containers, which will add to the current fleet of containers in North America. CN is also acquiring 32 electrical generators to move 40-foot international marine reefers to and from CN-served ports on CN intermodal trains. The power packs provide economies of scale by connecting up to 17 international marine reefers at a time.

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Port Of Savannah Ramps Up Frozen Cargo Capacity

T

he Georgia Ports Authority approved $5.85 million for 20 refrigerated container racks at Garden City Terminal to meet growing demand. “Increased on- and off-terminal capacity gives customers more options for moving refrigerated commodities to and from international markets,” said GPA Executive Director Curtis Foltz. “This additional infrastructure will strengthen Savannah’s position as the premier East Coast facility for refrigerated exports.”

Uber Extends Food Delivery To New York And Chicago People in New York and Chicago can now use Uber for more than just a car ride, according to CNET. Typically known for competing with taxi and limo services by offering people different types of rides via its mobile app, Uber has also branched out into the food delivery business with a service called UberEats. First tested in Los Angeles and Barcelona, Spain, the service will expand to New York and Chicago.

Uber faces challenges in the food trade from a handful of other tech companies.

A taxi app called GetTaxi is changing its name to Gett and in July will start to offer people the ability to order food, such as sushi, pizza or wine. Apps such as GrubHub, Seamless and Eat24 also offer food delivery.

McDonald’s Tests Postmates Direct Delivery Customers in New York City will be able to enjoy McDonald’s food when and where they want it with the launch of a McDonald’s delivery test with Postmates, a directto-consumer delivery service. Customers in

An additional 20 racks will increase Garden City Terminal’s refrigerated container rack capacity by 28 percent.

select boroughs can go to Postmates.com or download the Postmates mobile app (available for iOS and Android) to order McDonald’s food for delivery within an hour. The test involves 88 select McDonald’s restaurants in Manhattan, Queens and Brooklyn. McDonald’s full menu, except ice cream cones, will be available for delivery during the normal operating hours of participating restaurants. Certain restaurants will offer delivery 24 hours a day.

Domino’s Offers ‘Tweet To Order’ Domino’s, the pizza delivery behemoth, will roll out a “tweet-to-order” system for U.S. customers, reported USA Today.

Domino’s will be the first major player in the restaurant industry to use Twitter on an ongoing basis to place and complete an order. Domino’s regulars will be able to order by tweeting only the pizza emoji to @Dominos.

“It’s the epitome of convenience,” said CEO Patrick Doyle in a phone interview. “We’ve got this down to a 5-second exchange.” It’s all about attracting busy, younger consumers. Close to 50 percent of Domino’s sales already take place digitally.

www.foodlogistics.com

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www.foodlogistics.com

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FOOD ON THE MOVE LOGISTICS TRENDS IN OUR INDUSTRY

Foodcareplus Launches Reefer Consolidation From Canada To Europe For Seafood Foodcareplus announced the launch of the new, deep-frozen reefer consolidation service from Halifax to Antwerp, allowing the Canadian seafood industry to market to Europe easier. The launch of the weekly

reefer service follows discussions during and after a tour organized by the Canadian Mission to the European Union (EU), the Port of Antwerp and Foodcareplus during the Global Seafood show in Brussels in 2014.

Joined by the Minister of Foreign Trade Ed Fast and Canada’s EU High Commissioner David Plunkett, a Canadian delegation of lobster exporters discussed the logistics challenges and opportunities in light of the Comprehensive Economic and Trade Agreement between Canada and Europe.

CMA CGM Expands Services To U.S. East Coast French shipping line CMA CGM, sailing

against trends toward larger ships and growing alliances, will expand services to the U.S. East Coast by adding stops using smaller ships at four Eastern Seaboard ports and adding calls at Baltimore to a separate, smaller shipping run, according to news reports. The new services out of Northern Europe are part of the company’s effort to operate its own East Coast network rather than buying space on ships belonging to its competitors. What CMA CGM calls its “New Vespucci” line will use 15 ships, each with capacity for 4,500 20-foot equivalent units, or TEUs, a common measure of the number of shipping containers a vessel can carry. The service will stop at New York, N.Y., Norfolk, Va., Charleston, S.C., and Savannah, Ga.

DAT SOLUTIONS’ MONTHLY FREIGHT REPORT

The Roadcheck Effect

I

f truckload capacity felt tight during the first week of June, it’s not because factory output spiked or there was a sudden bumper crop of tomatoes.

It may have been the Roadcheck Effect.

Roadcheck is the 72-hour truck and bus inspection blitz held across North America during the first week of June. On average, 17 vehicles are inspected every minute and one in four is found to have at least one out-of-service violation.

This year, Roadcheck was June 2 to 4, and not coincidentally, some truckers took a mini-vacation.

When capacity leaves the market even for a few days, spot rates can be affected. During Roadcheck 2015, DAT load boards saw a 5.5 percent increase in truck posts and a 36 per-

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By Mark Montague

cent increase in available loads compared to the previous week. While the numbers are skewed by the Memorial Day-shortened workweek, the imbalance between demand (load posts) and capacity (truck posts) contributed to an average van rate increase of 5 cents (2.7 percent) to $1.90 per mile. The reefer

rate climbed 4 cents (1.8 percent) to $2.23.

The same imbalance and upward rate pressure played out last year, with the number of loads up 37 percent and capacity down 9 percent. During Roadcheck 2013, loads were up 30 percent and trucks were up 9 percent.

Looking at load-to-

HOT MARKETS: REEFER DEMAND & CAPACITY DAT Network load-to-truck ratios, May 2015

truck ratios for the weeks before, during, and after Roadcheck, it seems clear that the event can have a disruptive effect on spot market capacity. The loadto-truck ratio is the number of load posts divided by the number of truck posts on DAT load boards.

Many factors influence spot rates, capacity, and available freight. During the first week of June, it appears you can add Roadcheck to the list.

Mark Montague is industry rate analyst for DAT Solutions, which operates the DAT® network of load boards and RateView rate-analysis tool.

He has applied his expertise to logistics, rates, and routing for more than 30 years.

Load-to-truck ratios represent the number of loads posted for every truck posted on DAT load boards. Higher numbers indicate greater demand. © DAT Solutions. All rights reserved.

On average there were 5.9 reefer loads for each truck posted on DAT load boards in May, down 2.8 percent compared to April and off 28 percent compared to the unusually high demand of May 2014.

www.foodlogistics.com

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www.foodlogistics.com

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COOL INSIGHTS

BY ELLIOT MARAS

Emerging Markets Point To Future Cold Chain Infrastructures

T

Inland DCs near cities supplied by rail links from ports.

Cooling for DCs using electricity with liquid nitrogen for backup; liquid nitrogen filled at port.

he cold chain, the roots of which can be traced to the 19th Century Industrial Revolution, ensures the availability of large quantities of life-sustaining perishable food. As the cold chain evolved over the years, energy-intensive storage and transportation systems emerged to support it.

However as populations and overall demand grow, particularly in developing economies, supporting the cold chain becomes more challenging. The good news is that cold chain innovations and technologies are becoming more widespread and affordable.

Developing markets stand at a crossroad Developing economies, particularly those throughout Asia – with rising incomes and a growing taste for animal protein and a Western diet – are investing aggressively in their cold chains.

But don’t expect them to simply copy the infrastructure that exists in the more developed markets.

If these countries had the same refrigerated transportation and warehousing capabilities as the developed world, 200 million tons of wasted food would be saved each year – increasing the food supply by 14 percent, according to a report, “Cold Chains and the Demographic Divide,” by Dearman, a London, U.K.-based technology firm.

But policy makers in these 16

JUNE 2015

Inland cold store and pack houses in rural locations cooled using intermittent electricity where available, using liquid nitrogen for back up.

Fresh produce processing center (chilled or frozen) and fresh produce gateway port, cooled using electricity and liquid nitrogen for back up.

Inland road-based, cold chains for export leading from rural cold stores to port and back. Cooling for trucks provided by liquid nitrogen filled at port and inland.

Liquid nitrogen production in conjunction with LNG regas, both at large scale port-based facilities and distribution LNG models.

emerging markets recognize that industrial development comes with a cost – congestion and pollution – and they will consider all available options. New warehousing and transportation technologies can reduce greenhouse gas emissions, improve air quality, and replace environmentally destructive refrigerants with benign alternatives.

A recent study by Londonbased Institution Of Mechanical Engineers and British energy consultancy E4tech has shown how one new technology, liquid nitrogen gas (LNG), can make a difference in a sustainable cold chain. LNG terminals could become the hubs of extensive import-export cold chains, and even develop into a broader “cold economy.”

• FOOD LOGISTICS

FLOG0615_16-17_CoolInsights EM_ES_LS.indd 16

MARAS

Meanwhile, vehicle emission technologies are emerging to address transport refrigeration units (TRUs). Battery-electric TRUs are already available, as are eutectic plates that store cold in a salt solution (similar in principle to a beer cooler cold pack), both of which are quiet and, with fewer moving parts, lower maintenance.

The evaporation of cryogenic liquids can also power refrigeration. Such systems evaporate liquid nitrogen through a heat exchanger in the goods compartment, which removes the need for a TRU engine and compressor altogether – although power is still required for fans.

The University of Birmingham (U.K.) recently secured close to $20 million in govern-

• This illustration demonstrates how cold waste from liquid nitrogen gas (LNG) re-gasification could power the “cold economy” in India.

Dearman and E4tech

ment and industry funding for a new Centre for Cryogenic Energy Storage to study clean cold technologies.

At the same time, a report from the LaPine, Ore.-based Postharvest Education Foundation makes a case for liquid airequipped refrigerated vans.

The developing countries stand at a crossroad: whether to build their cold chains using conventional technologies or the cleaner technologies of the future. These countries will ultimately become the leaders of tomorrow’s cold chain. ◆ www.foodlogistics.com

6/12/15 9:13 AM

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C O V E R

S T O R Y

SUSTAINABILITY IN THE FOOD SUPPLY CHAIN:

ROI MAKES STRIDES

Research finds food and beverage players now cite sustainability as a competitive advantage.

W

hat are you doing to be sustainable? It’s a question that people have been asking for several years now. And it’s an especially important question for the food and beverage (f&b) industry since f&b uses more natural resources than most industries. Which is why every year, f&b companies invest in new ways to operate more sustainably.

FACTORS THAT ARE IMPORTANT WHEN CONSIDERING FOOD AND BEVERAGE SUSTAINABILITY Average

Long term profitability

28%

Leadership buy in

25

Budget

19

Public perception

17

27 35

19

Staff Retailer

Supplier

27 27

9

Proven ROI

38%

19 Wholesaler

23%

30%

31

27%

15

21%

19

21%

19

20%

19

19%

Source: Grant Thornton

WHY SUSTAINABILITY IS IMPORTANT TO A FOOD AND BEVERAGE FIRM’S BUSINESS STRATEGY

Retailer Supplier Wholesaler Critical to growth 68% 80% 50% Profitable in the long term 75 74 44 Consumers expect it 57 87 61 Competitive differentiator 60 76 58 Profitable in the short term 23 30 22

Total 68% 68 67 64 25

Source: Grant Thornton

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To calculate the amount of investment f&b companies make in sustainability would be almost as difficult as trying to quantify how much time, energy, resources and waste are being saved as a result of these efforts. For the purpose of today’s discussion, it’s sufficient to say that these initiatives continue to expand. Consumer research has confirmed that the public wants food to be safe and also wants business to contribute to the well being of society and the environment. And the f&b industry is listening.

Sustainability refers to environmental and social responsibility.

Grant Thornton LLP, a Chicago-based audit and advisory firm, researched what f&b companies are doing to make their operations more sustainable and why. The biggest takeaway from the 2014 survey, “The State of Sustainability at Food and Beverage Companies,” is that sustainability has become a competitive advantage. The study measured attitudes about sustainability from 189 respondents at U.S.

BY ELLIOT MARAS

f&b retail, distribution and manufacturing companies.

Top findings include: Businesses are working to reduce their environmental impact, and more companies are calculating the carbon footprint of their operations. Cost management emerges as the key driver for corporate social responsibility, followed by customer demand and because it’s the right thing to do.  How a business is perceived to be operating is also important. The majority of f&b businesses are involved with local charities, either through donating time, money or products.

Forty-four percent of respondents rated sustainability as extremely important or important in their company’s business strategy. Nearly 70 percent said sustainability is critical to growth (68 percent), long-term profitability (68 percent), expected by customers (67 percent) and a competitive differentiator (64 percent). One of the most critical findings is that companies that invest www.foodlogistics.com

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HOW FOOD AND BEVERAGE SUSTAINABILITY EFFORTS ARE MEASURED Average

Energy consumption

60%

Total waste

47

Amount of recycled material Impact of social responsibility initiatives

67% 64

37 28

51 26 39

41% 33

30

14

LEED certification

14 13 26

Other No efforts measured

26

Supplier

40%

22 24%

10 0

Retailer

50%

19 25%

Carbon footprint

13

58%

16%

6%

44

26%

Wholesaler

Source: Grant Thornton

Wholesalers, who rarely sell directly to consumers, were the least likely to engage in sustainability activities and were significantly less likely to reduce energy consumption and fund social programs. Wholesalers were the most likely to say that sustainability is a fad that will disappear in a few years (25 percent of wholesalers versus 7 percent of retailers and 4 percent of suppliers.)

Tax credits and incentives

BENEFITS FROM FOOD AND BEVERAGE SUSTAINABILITY EFFORTS

Retailer Supplier Wholesaler Savings through energy efficiency 74% 62% 48% Savings through source reduction 39 57 44 Local green tax initiatives 22 16 16 Federal programs (e.g., pollution credits) 13 3 4 Other 2 5 0 Not aware of incentives 24 30 48

Total 65% 46 19 8 3 31

Source: Grant Thornton

in these initiatives are seeing a strong ROI.

How f&b prioritizes sustainability The study also uncovered differences in how different types of f&b businesses prioritize sustainability.

Retailers are more likely to reduce energy consumption and pursue paper and packaging recycling.

Kroger, for instance, tested and adopted hydrogen fuel cells to power material-handling fleets at its Compton, Calif.,

DC, which supplies groceries for Ralph’s supermarkets, the study notes. The site decreased maintenance costs by approximately 20 percent. And since hydrogen fuel cells emit less heat and water, they reduced the forklift-generated carbon footprint.

Manufacturers are more likely to reduce production waste. Manufacturers also are also more likely to measure sustainability efforts (87 percent of suppliers versus 74 percent of retailers and 56 percent of wholesalers).

The survey also noted that government tax credits and incentives allow companies to recover part of their sustainability investments. Nearly one in five (19 percent) reported saving money through local green tax incentives and 8 percent through federal programs.

At the same time, 31 percent of survey respondents were unaware of credit and incentive opportunities. Wholesalers, especially, are largely uninformed about them (48 percent).

Walmart steps forward In researching individual company initiatives, Food Logistics found that many of the country’s leading food retailers

and manufacturers have invested heavily in sustainability initiatives over the years, and these efforts continue.

Walmart, the largest food retailer, has taken a major leadership role with sustainability.

It has demonstrated leadership in its own operations and has set sustainability goals for its product suppliers. The company launched its Sustainable Product Expo more than 10 years ago, a three-day collaboration to expand the availability of products that sustain people and the environment.

In October 2014, Walmart announced four pillars for providing a more sustainable food system: 1) improving the affordability of food, 2) increasing food access, 3) making healthier eating easier and 4) improving the safety and transparency of the food chain.

Walmart also launched its “Climate Smart Agriculture Platform” to drive improvements in agricultural productivity through efficient use of fertilizer and water. By the end of 2014, the company had established joint agricultural partnerships with 17 suppliers, cooperatives and service

 Newport Avenue Market in Bend, Ore. uses refrigeration cases that utilize 70 percent less energy.

Independent Oregon Grocer Invests More Than $2.5 M In Sustainability

N

ewport Avenue Market, an independent grocery store in Bend, Ore., has invested more than $2.5 million in technologies to reduce the store’s carbon footprint in the last few years.

One technology has been electronic shelf tags from Sweden-based Pricer AB, replacing paper tags.

The tags “sleep” at night to conserve energy, allowing the batteries to last nearly one decade. The tags also reduce a fair amount of labor since the information on the tags can be changed from a desktop. In addition, they are well received by customers, notes Lauren www.foodlogistics.com

FLOG0615_18-26_Sustainability EM_ES_LS.indd 19

Johnson, chief operating officer at Newport Avenue Market.

The store has also added new, state-of-the-art, refrigeration cases with glass doors from Bridgeton, Mo.-based Hussmann that use 70 percent less energy than the previous cases, which were open. The energy savings has allowed the company to qualify for state rebates.

The store was recently honored for its waste composting program. The award recognized Newport

Avenue Market as the first company of its size to have such a program.

“We’re always trying to keep up with the latest technology trends, think of innovative ways to keep our customers happy, and maintain that great shopping experience that Newport Avenue Market offers,” Johnson says. ◆ FOOD LOGISTICS

• JUNE 2015

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providers on 23 million acres of land, with the potential to reduce 11 million metric tons of greenhouse gas (GHG) by 2020.

F&b manufacturers, encouraged by retailers and consumers, have embraced similar initiatives.

“We have worked with our retailers to advance their sustainability strategies for several years,” says Niki King, senior manager for the corporate social responsibility program office at Campbell Soup Co. “A great example would be the work we have done with Walmart in the areas of greenhouse gas reduction, sustainable agriculture and even hunger relief.” One goal is to eliminate 100 million pounds of packag-

ing by 2020 from Campbell products.

Most of the multi-national f&b manufacturers release yearly global sustainability reports that detail progress in sustainable agricultural sourcing, energy efficiency, waste reduction and recycling, water efficiency, packaging reduction, health and wellness initiatives, protecting animal welfare, and social and community involvement.

F&b companies of all sizes, however, are embracing sustainability. The sidebar stories accompanying this article profile several smaller size companies that invest in sustainable activities.

“We aim to use the power of business to make the world a better place,” Sandy Yusen, a

Goya Foods Opens Headquarters To Provide Net Zero Carbon Footprint

G

oya Foods, the largest Hispanic-owned food company in the U.S., opened its new, state-of-the-art and sustainable corporate headquarters in Jersey City, N.J., as part of a $500 million global expansion the past 10 years.

Constructed to provide a net zero car Peter Unanue, left, and Bob bon foot print, the facility will be 100 perUnanue, right, welcome New cent powered by a solar-powered energy Jersey Gov. Chris Christie to the system using 12,000 panels on 11 acres grand opening of the Goya Foods of rooftop. The system will fulfill the entire sustainable corporate headquarfacility’s electrical needs without drawing ters in Jersey City, N.J. any energy from the public grid. This translates into the ability to generate enough energy to power 30,000 homes on an annual basis.

“We are very excited to complete this stage of our strategic plan and to reap the overall benefits that it will provide,” says Peter Unanue, executive vice president of Goya Foods. “We recognize the important role businesses play in leading the way for social and environmental change. Each new facility will enable us to operate more efficiently and environmentally friendly as well as support our growth for many more years to come.” ◆

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spokesperson for Keurig Green Mountain, tells Food Logistics.

This past year, Keurig Green Mountain updated its responsible sourcing supplier guidelines and worked to communicate them across its supply chain.

The company also developed a new data management tool — the sustainability performance management system — to streamline efforts to track, measure, and communicate the its sustainability efforts.

The company’s latest initiative is ensuring that 100 percent of its Keurig K-Cup pods are recyclable by 2020.

Continuing focus: carbon reduction While sustainability encompasses many aspects, reducing the carbon footprint has emerged as an area that many companies address. Reducing the carbon footprint includes energy efficiency and waste reduction.

Nanci Tellam, group director of environmental services at Ryder System Inc., says a growing emphasis on carbon management has caused more customers to ask the company about sustainability. “Mostly, our customers are looking for data related to their own emissions and are hoping to leverage some of our best-in-class technologies and programs to improve their operations and environmental programs, as well as reduce emissions,” she says.

Ryder has committed to reducing energy consumption at operating facilities by 20 percent—below 2009 levels—by 2020, using employee awareness and training, conservation upgrades at its locations, and installation of energy efficient lighting at shop locations.

Ryder also recycles nearly all automotive waste streams, including 3 million gallons of used oil, as well as automotive filters, solvents, and used tires.

The result is the prevention of approximately 22,000 metric

Penske’s Sustainability Initiatives Cover A Wide Gamut Penske-owned facilities in North America engage in a variety of sustainability practices. The company specs all of its equipment for maximum fuel savings, including the latest engine and exhaust technologies, aerodynamic devices and auxiliary power units.

Metrics from onboard systems identify inefficient vehicle or driver performance that can be corrected through operating parameter adjustments and driver training.

There is an annual GHG emission inventory for all company operations.

Penske Logistics discloses GHG emissions information and energy usage/reduction efforts to the Carbon Disclosure Project.

Energy audits identify opportunities to save money and reduce the carbon footprint. This includes upgrading to more efficient lighting, supporting renewable energy through purchase of renewable energy credits, waste management/ recycling programs, and solid waste and electronics recycling. ◆

tons of GHGs annually, which is equivalent to more than 50,000 barrels of oil consumed or emissions from 4,000 passenger vehicles.

Energy technology has become more affordable in recent years, giving f&b companies new ways to reduce their carbon footprints. “It does have to be something you can afford to do,” says Shaun McFaul, operations manager at Ben E. Keith Co., the Fort Worth, Texas-based foodservice distributor.

McFaul’s company achieved EPA LEED (Leadership in Energy & Environmental Design) gold for its new headquarters, says McFaul. The energy savings come from LED smart lighting, cooling tower rainwater capture and underground cooling tanks.

“It’s only recently been cost effective,” McFaul said for the LED lighting.

Ben E. Keith Co. is also reducing fuel costs by using plug-in reefers in its staging www.foodlogistics.com

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facilities instead of running diesel engines.

Asked if the company was motivated by financial gains versus wanting to be good corporate citizens, McFaul replies, “We’re doing it for both reasons.”

McFaul concurs with the observation that foodservice in general has not been as aggressive in investing in sustainability as f&b retail and manufacturing. “A lot of foodservice doesn’t have as much infrastructure as a lot of the (big) retail,” he says. But he’s quick to point out that foodservice distributors are investing more in energy efficiency.

of CO2 emissions per year and improved service levels to the marketplace. “We have been able to make significant reductions in usage and emissions while improving efficiencies of our delivery operation,” says Denis Conway, national logistics manager at Glanbia Consumer Foods Ireland.

Packaging reduction Packaging reduction has emerged as a way to reduce the environmental footprint for many companies.

Robert Ulery, vice president of solution design in retail logistics at GENCO, a FedEx company and 3PL based in Pittsburgh, Pa., notes that packaging costs can be greater

Logistics plays a key role Logistics often plays an important role in reducing a company’s carbon footprint.

Ocean Spray Cranberries Inc. was able to ship product more efficiently by partnering with fruit shippers and a rail operator to claim unused cargo space in returning boxcars from New Jersey to Florida.

“An existing logistics partner made us aware of an opportunity to utilize back-haul capacity from New Jersey and Florida,” Earl Larson, director of supply chain at Ocean Spray, tells Food Logistics. “We were pleased to leverage this largely untapped opportunity for collaboration between companies in order to reduce costs and emissions together. In total, over the 12-month period, emissions and transportation costs in the southeastern corridor were reduced by 20 and 40 percent due to the initiatives we implemented.”

Glanbia, an Ireland-based global nutritionals and dairy business group, improved vehicle utilization by 15 percent and reduced the annual number of routes by 10 percent using Paragon Software transportation optimization software. This reduced more than 100 tons 22

JUNE 2015

Sustainable agricultural sourcing

California Caterer Scores High With Natural Degreaser Carrying EPA’s ‘Safer Choice’ Label

M

ax Catering in Palmdale, Calif., has benefited in several ways from an organic degreaser that carries the EPA’s “Safer Choice” label, according to Mitchell Frieder, company owner and chef. Naturama CBD from Las Vegas-based Green Life Development Inc. keeps the kitchen clean without the need for toxic chemicals. Being a natural  Max Catering in product, Naturama protects Frieder and his Palmdale, Calif. finds the employees from toxic exposure.

Naturama CBD degreaser Frieder, who also teaches at the Internathat has the EPA’s Safer tional Culinary School at the Art Institute, has Choice label useful in cleanbeen happy to replace his chemical cleaners. ing all types of surfaces Chemicals, in addition to carrying potentially with no chemical residue. dangerous fumes, left unpleasant odors. The Naturama degreaser works faster than chemical products and it can be used in a variety of environments, such as preparation equipment, kitchen floors, on windows, even on vehicles.

Frieder’s first priority for any cleaner is effectiveness. Sustainability is a secondary concern.

The common complaint about natural or “green” cleaners is that they aren’t as effective as chemical products. Frieder found this to be the case with other natural cleaners he used.

Naturama CBD, he discovered, removes grease quickly from equipment, walls, windows and hoods. In using it on floors, he says it made the floor more resistant to slips than any product he has used. “It strips grease, oils and fats out of floors amazingly well,” he says.

Naturama CBD – whose formula is proprietary – carries the EPA’s “Safer Choice” label, which promotes safer product design and green chemistry alternatives through “informed substitution,” the considered transition from a chemical of particular concern to safer chemicals or non-chemical alternatives. More importantly, Naturama CBD also meets the EPA’s Direct Release criteria, meaning the product is considered safe enough to be discharged into the environment, bypassing sewage or septic systems. ◆

• FOOD LOGISTICS

FLOG0615_18-26_Sustainability EM_ES_LS.indd 22

for products sold through traditional retail channels than b2b. Hence, the manufacturers and retailers of consumer goods have more incentive to invest in recyclable packaging solutions.

Ulery says that 3PLs are investing more in sustainability practices because it’s good for the environment, plus it’s a way for customers to differentiate themselves in the market.

“We focus on going above and beyond what our clients ask us to do. That includes considering sustainability in our solution design process and in ongoing process improvements,” he says.

Food processors are increasingly turning to sourcing sustainable agriculture.

General Mills Inc. recently reported on its progress toward sustainably sourcing 100 percent of its 10 priority ingredients by 2020. These ingredients represent 50 percent of General Mills’ total raw material purchases. The company works with farmers in developing economies and larger-scale growers in developed economies to address challenges and pursue opportunities unique to each growing region.

Verification and validation A variety of organizations have emerged to assist companies with ways to verify their sustainability claims. These include Fair Trade, the Rainforest Alliance, the Carbon Disclosure Project (now CDP), the Global Reporting Initiative (GRI), the Dow Jones Sustainability Index, the Walmart Sustainability Index, and more.

Keurig Green Mountain participates in the Fair Trade, Rainforest Alliance and USDA Organic coffee certifications.

“It’s a stamp of approval that provides assurance to the conwww.foodlogistics.com

6/12/15 9:10 AM

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•

ON THE COVER

Free Flow Wines Raises Its Glass To Sustainability

By Lara L. Sowinski

T

he wine-on-tap movement is becoming more popular and shedding consumer misperceptions glass by glass, thanks to pioneer and industry leader Free Flow Wines—a true market disrupter whose logistics and delivery solutions are clever— and sustainable.

According to Jordan Kivelstadt, CEO and co-founder, the concept came about during a particularly bad day at work about seven years ago. At the time, he was working at a winery, where like most other wineries, it was common practice to use kegs for storing extra wine that couldn’t fit into the barrels.

“I remember thinking, ‘Why can’t we just sell wine

in one of these?’ That’s when the light bulb went off,” recalls Kivelstadt. The idea for using stainless steel kegs to transport premium wines to restaurants, hotels and other retail outlets, which not only eliminates bottles, but also spoiled and oxidized wine, was born. Today, more than 450 premium wines are available in the Free Flow format throughout the U.S. And since 2011, Free Flow Wines and its winery partners have kept millions of bottles from ending up in U.S. landfills.

A critical piece of Free Flow Wines’ success is its ERP system, says Kivelstadt. “Early on, I realized that we had to build a scalable platform for interacting with lots of customers. We had a complex pipeline, and we had all of these assets (stainless

steel kegs) that we needed to track to make sure they came ‘home.’”

Free Flow Wines chose NetSuite’s ERP system.

“We had to have a fundamentally integrated platform and a company that could scale as fast as we were scaling,” says Kivelstadt. “NetSuite allowed us to create something unique—an asset tracking module.

Even though they didn’t offer exactly what we needed with the asset tracking module, we didn’t want to have an ERP platform that would have forced us to work with a completely independent system; something that couldn’t ultimately communicate with the ERP.” It’s the flexibility of NetSuite’s ERP that was attractive to Free Flow Wines. “One of the things we really liked about NetSuite is the open API (application programming interface). It’s basically an invitation for people to create programs that can interact with NetSuite. That was hugely important because it allowed us to find companies that could write custom code to build our asset tracking module and have it completely integrated into the ERP. It looks, acts and feels like it’s a part of NetSuite. It gives us the ability to operate our entire company under one umbrella.”

Kivelstadt emphasizes that, “Sustainability is one of the four tenets of our company. I’m a big believer in the double bottom line. I think that whenever possible, you should create a company that is both profitable and does something good for the environment.” He explains that, “One, we’re a green certified business. Two, our kegs have thus far kept more than 5 million bottles from the landfill.”

The business model also cuts down on wine corks, cases and other materials that add to the waste stream. Furthermore, the company overhauled its Napa, Calif.-based facility in 2013 to recycle 99 percent of all water used to clean the stainless steel kegs, which helped the company save about 1.5 million gallons of water annually, adds Kivelstadt. ◆

Free Flow Wines provides industry leading solutions for cleaning, filling, packaging and tracking of wine kegs. In addition, the company goes the extra mile by training clients’ sales team and distributor(s) on how to effectively sell wine on tap and providing customizable wine on tap sales and marketing materials.

24

JUNE 2015

• FOOD LOGISTICS

FLOG0615_18-26_Sustainability EM_ES_LS.indd 24

www.foodlogistics.com

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sumer they are purchasing a product that is grown responsibly,” Yusen says.

Kellogg also began assessing ethical performance compliance through a collaborative organization called Sedex, which works with buyers and suppliers around the world to deliver improvements in responsible sourcing. Sedex offers an online database for storing, sharing and reporting on suppliers’ responsible sourcing information. Sedex’s database allows supplier companies to answer a single, uniform questionnaire about their labor standards; health, safety and environmental practices; and business ethics.

“Through our partnership with Sedex, we will identify and address risks in our supply chain,” Diane Holdorf, Kellogg’s chief sustainability officer, tells Food Logistics. “The pro-

cess also helps us understand how our suppliers’ policies and programs support workers. We are in the process of identifying the risk-based priorities within our supply chain and will be reporting on our progress over time.”

Kellogg developed the Kellogg’s Origins Grower Survey tool. The survey asks farmers for data on environmental, social and economic indicators such as energy, water and fertilizer use; number of smallholder and women farmers and existing supporting programs (where appropriate); and climate risk and adaptation measures.

Waste reduction Waste recycling and reuse is another sustainability initiative.

In 2014, General Mills reused or recycled 87 percent of its waste in North American operations, up from 85 percent

For more information: CARBON DISCLOSURE PROJECT, 212-378-2086, cdp.net GENCO, 800-677-3110, genco.com EPA SMARTWAY, 734-214-4767, epa.gov/smartway GLOBAL REPORTING INITIATIVE, 31(0) 20-531-00-00, globalreporting.org GRANT THORNTON LLP, 414-289-8200, grantthornton.com GREEN LIFE DEVELOPMENT INC., 702-448-6977, greenuses.com NETSUITE, 877-638-7848, netsuite.com PARAGON SOFTWARE, 888-347-5462, paragon-software.com PENSKE, 888-236-3560, www.gopenske.com RYDER SYSTEM, INC., 800-793-3765, www.ryder.com SEDEX, 888-487-6146, sedexglobal.com SMITHSONIAN MIGRATORY BIRD CENTER, 202-633-4202, nationalzoo.si.edu THE FOREST TRUST, 206-414-0758, tft-earth.org in 2013. Reuse increased from 14 percent to 23 percent of the total and landfill decreased from 14 percent to 12 percent.

Recapturing value from waste has become a revenue source for General Mills, representing a record $10 million of net rev-

enue in 2014 for North American operations.

More focus on reducing water consumption Water reduction has become a more important sustainability goal for many companies, espe-

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FOOD LOGISTICS

• JUNE 2015

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cially in light of the California drought which has resulted in mandatory reductions in consumer water use.

Nestle Waters claims to be working to reduce water use in its bottling and manufacturing operations by 10 to 30 percent.

Coca-Cola Co. has mandated all of its bottling plants to assess the quality and quantity of local water sources and to develop and implement comprehensive source water protection plans. The company also reported continuous improvement in its plants’ water use ratios from 2004 to 2013.

Keurig Green Mountain in early 2014 conducted a comprehensive water footprint of the value chain related to the creation and use of its coffee portion packs to more fully understand the impact of its products and identify areas for

How To Get Started With Sustainability

T

he Grant Thornton LLP study on f&b sustainability examined the factors that are critical when considering and planning sustainability programs.

The most widely noted factors include support from the c-suite, a focus on profitability and measurable performance targets.

Leadership buy-in (27 percent) is one of the top two factors (profitability is the first) for companies when considering sustainable practices.

Another important factor is the organization’s overall risk profile and how sustainability will affect it. Companies must consider questions such as: If I change suppliers, am I moving to a supplier with less financial stability, or one operating in a country with less geopolitical stability?

Seventy four percent of respondents said that their company measured sustainability efforts. Energy consumption (58 percent), total waste (50 percent) and amount of recycled materials (40 percent) were the most frequently mentioned ways of measuring sustainability efforts. ◆

26

JUNE 2015

improvement.

The findings indicate that the company is not a large direct consumer of water and that its coffee brewers actually promote water savings.

“We believe our products lend themselves to water savings,” Yusen says.

The company announced a new target to balance the water used in its 2020 brewed beverage volume of all beverages, ounce for ounce, through projects that restore water for natural and community uses.

For Ryder System Inc., water use is primarily associated with truck washing. “Vehicle washing is performed daily at most Ryder facilities and all wash services are performed in accordance with our environmental policies that are designed to maximize reuse, recycling, and pre-treatment discharge solutions,” Ryder’s Tellam says.

Supply chain transparency Many companies are focusing on supply chain transparency as part of their sustainability efforts.

Coca-Cola Co.’s “Pass It Back” program attempts to achieve end-to-end visibility of respect for human rights by working with eligible suppliers to pass its workplace rights expectations back through the supply chain. The company works with suppliers in the program to ensure alignment of policies and due diligence measures. It requests transparent and routine stewardship reporting.

The Hershey Co. recently announced the results of its first phase in tracing its global palm oil supply chain. Working in partnership with The Forest Trust (TFT), Hershey has traced its supply chain to more than 94 percent of all the mills that supply its palm and palm kernel oil globally. Hershey’s supply mapping has given the

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Coffee Industry Pioneers Sustainability With Fair Trade And Other Certification

T

he coffee industry boasts one of the most visible programs for sustainability through its Fair Trade certification, which has entered its third decade. In the Fair Trade model, producers charge a premium, and the extra charge is intended to support coffee workers and the environment.  Birds A key aspect of the Fair Trade program is its certification. & Beans in Various organizations serve as third parties to validate the Boston, Mass.

Fair Trade claim. carries coffee In recent years, new causes have emerged, bringing new certified by certifications. The “Bird Friendly” label from the Smithsonian the SmithsonMigratory Bird Center of the National Zoo certifies coffee is ian Migratory shade grown to protect bird habitats.

Bird Center of Cause certifications have not been without their critics. the National But many coffee producers say these certifications educate Zoo to protect consumers about sustainability. bird habitats.

“The certification is the only way the end user knows this coffee comes from where it says it comes from,” says Bill Wilson, owner of Birds & Beans in Boston, Mass., a roaster who carries USDA Organic, Fair Trade and Bird Friendly certified coffees. Among his certifications, Wilson says USDA Organic is the most recognized by the consumer. He sees Fair Trade and Bird Friendly as stricter organic certifications, with the latter being the “platinum.” In time, these lesser known certifications will be better understood. “I think we’ve been successful in heightening the awareness of what Bird Friendly certification means.”

Wilson also thinks Fair Trade is gaining acceptance among consumers.

“I think it’s a respected certification among the consuming public,” he says.

“Consumers like Fair Trade certification since they know that there’s a certain element of social justice in it.”◆

company insight into its palm oil sources from suppliers originating back to the mill level.

This will help the company better understand if any sourcing is linked to areas of potential deforestation or social challenges within the production of its palm oil.

“Our customers are seeing the same demands we are for transparency because consumers are increasingly expecting more from their favorite foods and brands,”

says Kellogg’s Holdorf. “This is one of the reasons we partner with retailers to understand consumer trends and needs.

And in some cases, we’re also collaborating with retailers to deliver sustainability goals that optimize supply chain innovation and change. Last year, for example, Kellogg and Walmart announced a joint commitment to help support the livelihoods of rice growers and improve rice crop sustainability.” ◆ www.foodlogistics.com

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FOOD LOGISTICS’ 2015 TOP GREEN PROVIDERS 2015 TOP PROVIDERS

Sustainability manifests itself in a variety of ways throughout the food and beverage supply chain, from reducing food waste to ‘leaning’ transportation and operations and boosting renewable energy use. BY FOOD LOGISTICS EDITORS

This year’s Top Green Providers represent transportation providers, 3PLs, cold storage providers, technology companies, pallet manufacturers and others key to supporting a more sustainable global food supply chain. Following are expanded profiles of some of these companies on the 2015 list.

CaseStack

(www.casestack.com) Casestack’s consolidation protects suppliers’ resources by providing proportional, full truckload pricing instead of costly LTL rates, boosting on-time performance, maximizing in-stock rates, limiting the potential for damages/shortages and lowering total logistics costs. Collaborative consolidation programs help retailers conserve financial resources by eliminating supplier minimums, reducing supplier lead times to their DCs, increasing supplier on-time deliveries, optimizing in-stock levels, and rightsizing inventory levels.

Consolidation programs help conserve natural resources by reducing dock congestion, improving warehouse efficiencies and decreasing the number of trucks on the highway. The resulting supply chain consumes less energy and produces lower amounts of carbon emissions.

Fewer trucks on the road also results in fewer interactions with motorists. From energy efficient warehouse upgrades to the Retailer Consolidation Program, www.foodlogistics.com

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CaseStack’s solutions are based on a common sense model; reduce waste and maximize efficiency by streamlining processes and consolidating resources.

CHEP (www.chep.com) As the leader in pallet and container pooling solutions, CHEP has a history of reducing environmental impacts across the supply chain. CHEP is able to leverage its expertise to extend the life of the assets in its pool, which minimizes the resources needed to maintain and grow the pool. Controlled ownership and accountability are key components of the CHEP program, which facilitates appropriate end-of-life management, maximizes material reuse and diverts residual material from landfills.

CHEP also offers its food and beverage customers environmental benefits via transportation efficiency in the supply chain. The CHEP network enables more efficient transport distances between CHEP and customer locations, including both distribution and retail locations. These shorter distanc-

es save fuel, reduce transportation costs and reduce CO2 emissions throughout the supply chain. CHEP USA has been using Life Cycle Assessment (LCA) methodology to quantify and reduce the environmental footprint of its products and services since 1999.

cent fuel improvement. Three quarters of the company fleet is SmartWay Tractor-approved.

C.R. England also utilizes dedicated services to optimize its network with customers to create efficiencies.

C.R. England

DSC’s overall goal is to eliminate waste and cost in the supply chain for all of its customers. Sustainability has become a core element of the supply chain strategy: “We adopt practices that promote the responsible use of resources throughout our company and we align our efforts with your sustainability initiatives.” To achieve this at the corporate level, DSC’s Sustainability Steering Committee oversees and implements initiatives encompassing multiple aspects of overall carbon footprint reduction, energy reduction and recycling. At the local level, there is Green Team representation at all DSC logistics centers. These team members regularly review goals and company-wide sustainability communications. They also implement sustainability opportunities within the logistics centers. DSC has been tracking sustainability on five metrics (electricity, natural gas, water, propane, and recycling)

(www.crengland.com) C.R. England continually looks for ways to reduce its carbon footprint in equipment enhancements. The company also works actively with customers to identify improvement areas, including adjusting appointment windows that avoid down time for drivers and excessive idling of trucks.

Customers will oftentimes have drop and hook loads where C.R. England drops off one trailer and picks up another loaded trailer to further eliminate down time. In addition, the company has a designated person that reviews untethered trailer tracking loads to watch for empty trailers with the reefer running.

C.R. England has invested in automatic transmissions for new tractors that come equipped with adaptive cruise, predictive cruise, and E-coast, all of which help in fuel efficiency. Initial tests have resulted in a 5 per-

DSC Logistics

(www.dsclogistics.com)

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PROVIDERS

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ArrowStream www.arrowstream.com X Axios Mobile Assets Corp. www.axiosma.com X BST Technologies, Inc. www.palletdawg.com X X X C.H. Robinson www.chrobinson.com X C.R. England www.crengland.com X CaseStack www.casestack.com X X CHEP www.chep.com X CHEP Pallecon Solutions www.cheppallecon.com X X X Classic Transportation & Warehousing www.classictransportation.com X X X Crown Equipment Corporation www.crown.com X X X X Dematic Corp www.dematic.com X X X Automated material handling systems DGX - DEPENDABLE GLOBAL EXPRESS INC www.dgxglobal.com X X X DSC Logistics www.dsclogistics.com X Echo Global Logistics http://echo.com/ X Elemica www.elemica.com X enVista www.envistacorp.com X X X X Supply chain consulting Fetch Logistics Inc www.fetchlogistics.com X Fleet Clean Systems, inc. http://fleetcleanusa.com Mobile fleet washing FST Logistics www.fstlogistics.com X X X GreenMile www.greenmile.com X Grupo Porteo SA de CV www.grupoporteo.com.mx X X Henningsen Cold Storage www.henningsen.com X X X X iGPS www.igps.net X IMC Companies www.imccompanies.com X X X Inmar www.inmar.com X X X Liquidation and remarketing INSIGHT, Inc. www.insightoutsmart.com X International Asset Systems www.interasset.com X International Business Systems www.ibs.net X Johnson Refrigerated Truck Bodies www.johnsontruckbodies.com X X Jungheinrich North America www.jungheinrich-lift.com X X Kenco www.kencogroup.com X X X X X X X X X Layer Saver www.layersaver.com X X X Lineage Logistics www.lineagelogistics.com X X M & W Distribution www.wwestlgi.com X X Marten Transport Services, LTD www.marten.com X Modalytics, LLC www.modalyticsllc.com X Murphy Warehouse Company www.murphywarehouse.com X X Next Generation Logistics, Inc. www.nextgeneration.com X X NFI www.nfiindustries.com X X

across 40-plus locations for four years. Yearly goals include: further waste stream reductions; LEAN initiatives to reduce process steps and waste in the supply chain; and supply chain modeling to reduce logistics center footprints.

FST Logistics

(www.fstlogistics.com) FST Logistics employs both external and internal measurements in seeking to reduce its carbon footprint and promote 28

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sustainability. External measurements include contract commitments with customers to make measureable strides each year. FST submits the man-hours its employees contribute to green activities such as recycling, Earth Day or volunteer work in this area.

The company also tracks the tonnage of cardboard it recycles and the amount of alternative fuel it uses. Internal measurements include savings on fuel usage, new lighting systems,

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and recycling truck oil to heat the shop. FST Logistics built an on-site, compressed natural gas (CNG) fueling station in partnership with US Oil in early fall of 2014. In conjunction with this, the company converted some day cabs to hybrid CNG/diesel. The station is open to the public to support CNG development.

Henningsen Cold Storage (www.henningsen.com)

Henningsen Cold Storage is

one of the largest public refrigerated warehousing companies in the U.S., delivering awardwinning refrigerated logistics through a national warehouse network totaling more than 53 million cubic feet of multi-temperature controlled storage (-20 to +60 F). The company offers a range of services, including freezer, cooler and dry storage, blast freezing, transportation management services, crossdocking, transloading, import/ export services and distribuwww.foodlogistics.com

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tion. Furthermore, Henningsen Cold Storage is committed to energy efficiency on many fronts. Two of the company’s locations have roof top solar panels and all warehouses use variable drive compressors to run the refrigeration systems.

The engineering team manages these systems in real time and adjusts depending on need.

Most of Henningsen’s warehouse locations have switched to energy-saving LED lighting to help conserve resources.

iGPS (www.igps.net) The iGPS Logistics lighter pallet is approximately 20 pounds lighter than wooden pallets. This means less fuel consumption, a reduced carbon footprint, and the ability to transport more products per truckload. Using plastic pallets reduces the use of wood pallets, helping to conserve forests. In addition, because of the lower damage rates, substantially less natural resources are needed for repairs, transportation and handling. iGPS plastic pallets are cleaned as they pass through its depot network, which works well for customers using them in product-sensitive manufacturing areas. There are no protruding nails or broken boards that can injure employees or damage equipment and products. The pallets don’t absorb liquids, are impervious to infestation, are 100 percent recyclable, and are consistently uniform in size and dimension.

Optimizing pallet selection leads to lower total costs throughout the supply chain. iGPS Logistics works closely with each of its clients to identify and provide effective solutions that eliminate, or significantly reduce, unnecessary costs in production and warehousing.

www.foodlogistics.com

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Johnson Refrigerated Truck Bodies

(www.johnsontruckbodies.com) JTB is committed to manufacturing the most thermally efficient, durable refrigerated truck bodies. Products are constructed of composite materials, and the company uses all-electric refrigeration systems with cold plate and cold plate blower systems rather than diesel-fueled systems. Johnson’s design and manufacturing team has proven its composite bodies are 175 times more resistant to heat penetration and 850 times more resistant than aluminum bodies. Testing also rates Johnson bodies as having the industry’s highest insulation value, and power grid plug-in refrigeration is proven to provide a clean operation.

Jungheinrich North America

(www.jungheinrich-lift.com) Jungheinrich set the industry standard for electric forklifts by developing the first 3-phase alternating current (AC) system. Today, Jungheinrich warehouse products continue to be recognized for cuttingedge technology, proven reliability and lower total cost of ownership. With advanced AC technology, Jungheinrich products are capable of running up to two shifts on one battery charge in most applications—resulting in a cleaner work environment. Grocery and food service distributor customers are able to measure the results in these efforts by counting the reduced number of battery changes per shift in addition to the number of batteries required for their operations. Jungheinrich’s ACpowered electric lift trucks also produce zero harmful emissions, providing another benefit for customers seeking to reduce their overall carbon footprint.

Since Jungheinrich products

Go green

Lower Costs Great news for your bottom line.

There are more than 40 areas of savings when businesses switch from wood pallets to iGPS plastic platforms. This includes lower transport costs, less product damage and reduced equipment downtime. The new and stronger iGPS has reemerged as a driving market force with its unique Plastic Pallet Pooling System, that provides cutting edge, global supply chain solutions for some of the leading companies and manufacturers in the world.

To see more green for your company call 1(800) 884-0225, or visit:

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North American Bioindustries LLC nuVizz Inc. OPEX Corporation ORBIS Paragon Software Systems Paxxal Inc. Penske Logistics PINC Solutions Power Automation Systems PRP Industries, Inc. Retrotech Reverse Solutions LLC RLS Logistics Romark Logistics Ryder System, Inc. Saddle Creek Schneider ShipXpress Inc. Sonwil Distribution Specialized Logistics, LLc States Logistics Services, Inc. Supply Chain Optimizers, LLC SYSPRO Tetra Pak

The Raymond Corporation Transportation Insight TTS Logistics Unified Grocers, Inc

www.northamericanbio.com Facility maintenance www.nuvizz.com X www.opex.com X www.orbiscorporation.com X X www.paragontruckrouting.com X www.paxxal.com X www.penskelogistics.com X X X X X www.pincsolutions.com X www.powerautomationsystems.com X X www.prpindustries.com X www.retrotech.com X X www.reversesolutions.com X www.rlslogistics.com X www.romarklogistics.com X www.ryder.com X www.sclogistics.com X www.schneider.com X www.shipxpress.com X www.sonwil.com X X www.specializedlogistics.net X www.stateslogistics.com X X www.supplychainoptimizers.com X www.syspro.cm X www.doingwhatsgood.us and tetrapak.com/us X www.raymondcorp.com X X X www.transportationinsight.com X www.ttslogistics.net X Non asset-based 3PL http://unifiedgrocers.com Grocery warehouse supply chain

United Natural Foods Inc. Urban Produce, LLC

www.unfi.com X X www.urbanproduce.com Growing vegetables in urban areas;

Veracity Logistics Werner Enterprises Westfalia Technologies, Inc. Witte Bros. Exchange, Inc. Yale Materials Handling Corporation

www.veracitylogistics.com X www.werner.com X X www.westfaliausa.com X www.wittebros.com X X X X www.yale.com/north-america/en-us X X

retail support

less water

have a longer run time off one battery charge, customers also benefit from an overall reduction in hydrogen gas emissions, which are emitted each time an electrical battery is charged—in addition to an increase in productivity for their operation.

Kenco (www.kencogroup.com) Since 2013, Kenco has upgraded lighting at eight facilities in Chattanooga, Tenn., McBee, S.C., Memphis, Tenn., Dundee, Mich., Avenel, N.J., Allentown Pa., and Reading, Pa., with annual 30

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savings of over $250,000. The lighting systems have saved over 1,500,000 kilowatt hours annually and are anticipated to reduce greenhouse gas emission by over 1,000 tons annually.

Currently, there are four more facility lighting upgrades in the planning stage. Kenco has also employed new sustainability dashboards. The dashboards bring together an array of data to conveniently display progress on key sustainability metrics.

They also track usage of electricity, natural gas and water, plus they monitor labor costs

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and measure the output of both landfill waste and recyclable materials. Baseline data on each metric is monitored to set goals toward lowering costs, reducing energy use, and producing less waste in customer warehouses managed by Kenco.

nuVizz Inc. (www.nuvizz.com) nuVizz is a business solutions and services company providing complete mobile business SaaS solutions and supply chain consulting services. The company is headquartered in Atlanta, Ga., with offices

in India and France. nuVizz boasts a strong portfolio of mobile apps and a comprehensive enterprise mobile toolkit, all supported by a team of core business process and mobile solutions experts. nuVizz solutions contribute to less paper and more efficient delivery of goods. One recent client in the food and beverage industry reported savings of 2.88 million sheets of paper over the past year alone. Furthermore, nuVizz accomplished reductions in materials purchased, improved its storage costs per www.foodlogistics.com

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Switch to natural gas for less than the cost of not switching to natural gas.

It isn’t just better for the environment. With its more predictable pricing, natural gas often means more accurate forecasting and planning, better resource allocation and less overall risk. And that makes it better for business, too. Be Ever Better. Discover how outsourcing with Ryder can improve your fleet management and supply chain performance at Ryder.com.

Ryder and the Ryder logo are registered trademarks of Ryder System, Inc. Copyright Š2015 Ryder System, Inc. Ever better is a trademark of Ryder System, Inc.

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usage, and achieved measureable savings in employee time.

OPEX Corporation (www.opex.com)

OPEX Corporation’s 2,077 megawatt solar array makes it a net-zero operation. As a result, every product the company manufactures at its campus in Moorestown, N.J. is made with 100 percent renewable energy derived from solar power.

Additionally, its material handling automation, Perfect Pick, draws significantly less energy than competitive technologies. By eliminating complex front-end equipment-like lifts, conveyors or transfers from the design, ongoing operational expenses are reduced. Additionally, Perfect Pick’s wireless robots, iBOTs, are powered by onboard ultracapacitors, which are extremely energy efficient and charge “on the fly.” The solar installation is monitored via a Web-based dashboard, while the HVAC system is monitored by a commuterbased, programmable system that tracks and operates 100plus rooftop units. Other sustainability efforts are monitored via utility bills, reports, etc. OPEX has implemented numerous environmentally focused improvements at its campus. These include lighting retrofits, roofing improvements, HVAC automation, and recycling initiatives.

Penske Logistics

(www.penskelogistics.com) Penske’s diversified portfolio of customers includes warehousing and distribution center operations for leading food, beverage and grocery customers in North America, Europe and Asia. Penske operates and manages eight refrigerated warehouse facilities in North America encompassing over 850,000 square feet of space.

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DeliverIt, the mobile delivery tracking and execution app from nuVizz, offers delivery/shipment tracking, dispatch management, delivery automation and mobile delivery management solutions built on technologies that help reduce costs of doing business and improve efficiencies.

of alternative fuel vehicles by providing CNG/LNG vehicle specification expertise to customers, providing training to maintenance technicians, and constructing and retrofitting maintenance facilities so they are equipped to service CNG/ LNG vehicles. Through its partnership with the SmartWay Program, Penske has hosted educational events for customers via Webinars, oneon-one education, and strategy sessions. Penske actively recruits customers to join the SmartWay Program and assists them with data collection and submission of the SmartWay reporting tool for their transportation category (e.g., shipper, carrier, logistics). For the third straight year, Penske Truck Leasing has been honored by the U.S. Environmental Protection Agency (EPA) as a SmartWay Affiliate Challenge Award winner. Penske is one of seven organizations across the U.S. to be given the award at the Transportation Intermediaries Association (TIA) Capital Ideas and Exhibition Conference in Orlando, Fla.

a way to also grow corporate responsibility for sustainability.

It’s the environmental value that complements the economic value sought after by food and beverage companies.

The warehouse automation solutions provided by PAS not only assist with economic value, but also do so in a way that helps the environment by reducing the carbon footprint of large warehouses. When efficient, precisely-sized and utilized electric servo motors replace oversized fuel guzzling fork trucks, and when lighting requirements are reduced by 80 percent due to the use of automation, the drain on planet resources is much less, making a sustainable balance more achievable. In addition, when efficient, precisely-sized and utilized electric servo motors make all the product moves in a warehouse, the energy required for those moves is recordable as kilowatt hours of electric power.

This can be compared to the operational costs of fork trucks, which include fuel and maintenance costs.

Power Automation Systems

(www.retrotech.com)

Romark Logistics

Recently, Retrotech consolidated two functionally separate warehouse operations into a single warehouse control system (WCS) for a client, which enabled the entire facility to operate as a single DC. Doing

New Jersey-based Romark Logistics prides itself as a leader in the establishment of warehousing “green initiatives.” The company considers “green” to be a core commitment that

(www.powerautomationsystems.com) Power Automation Systems (PAS) enables its customers to go beyond the corporate responsibilities of growth—such as consistency, competitiveness, and profitability—by providing

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so allowed the operation to run more efficiently. The client achieved 99.9 percent on-time arrival for shipments one month following the “go live” of the WCS. In turn, this predictability in arrival time allows customers to schedule their resources more accurately and receive orders on an expected time cycle. The client reduced loading time by automated stacking of pallets and increased trailer fill capacity. The increase in fill capacity allowed for a reduction of the number of trailers used for order fulfillment, thereby reducing the overall fuel consumption and reducing the number of over-the-road miles driven to fulfill the same number of customer orders.

Retrotech

Reverse Solutions LLC

(www.reversesolutions.com) Reverse Solutions strives to add value to the level of service it provides to clients by incorporating the greenest approach possible to their processes. The company tracks all tonnages slated for recycling for clients and provides quarterly reports.

Clients then receive rebates based on the amount of material sent to the mill for recycling. Reverse Solutions also implemented a repurposing program to add an additional option for recycling for clients.

Any product that meets the qualifications for convertibility can be sent out and converted to cow feed at a fraction of the cost versus the standard landfill fee. The company has also reached out to local farmers and donates organics to be fed directly to cows or pigs.

(www.romarklogistics.com)

www.foodlogistics.com

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Sometimes the best way to use resources...

is to conserve them.

Five of the many ways we’re reducing our environmental impact At DSC Logistics, we are: • Reducing fuel usage and carbon emissions with network modeling, shipment consolidation and transportation collaboration • Saving water with green-scrubbers that use 70% less water to clean our Logistics Centers • Recycling paper, plastics , electronics, batteries, and other materials

• Decreasing paper and packaging waste with an innovative machine that designs each container to fit its contents precisely • Measuring consumption of water, electricity, propane and natural gas to monitor and drive improvement DSC launched our network-wide sustainability program in 2009 and since then, we’ve won 19 awards for initiatives that conserve resources and reduce costs.

We think greener!

Lead Logistics Partner • Third-Party Logistics • Supply Chain Analysis & Design Network Management • Logistics Center Management • Transportation Management Value-Added Services • Business Process Integration • Supply Chain Visibility Dynamic Supply Chain Management

www.dsclogistics.com 1.847.635.4952

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benefits its employees, customers and the communities it operates in. Romark Logistics has reduced its carbon footprint with 8,512 solar panels and achieved landfill-free status of 98.7 percent. Solar is measured with Draker utility grade meters and the landfill-free status is measured by various recycling vendors. In addition to these accomplishments, the company completed many energy efficiency reduction projects such as LED lighting, T5 warehouse lighting, motion sensors, refrigeration changes, office lighting retrofits to LED, office dimmer switches and water conservation devices.

Ryder System, Inc. (www.ryder.com)

Ryder helps food and beverage companies meet their sustainability objectives and “green” their fleets and supply chains by focusing on carbon reduction in three critical areas:

Romark Logistics installed 8,512 solar panels on their Pennsylvania warehouse, cutting greenhouse gas emissions by 1,520 metric tons annually.

network design, facilities and building use, and transportation. By designing a supply chain network with the reduction of the carbon footprint as one of its primary focuses, Ryder advises customers on factors such as the location of DCs, miles to be traveled, amount of inventory, and size and number of facilities included in the network.

For the use of buildings and facilities, Ryder offers lighting efficiencies, cutting-edge energy technologies, alternative use of by-products, and other strate-

gies to reduce waste and carbon emissions. In transportation, customers are not only able to take advantage of Ryder’s engineering expertise optimizing shipments, routes and modes, but can also tap into Ryder’s industry leading natural gas vehicle program. Ryder is also the market leader in natural gas vehicle and maintenance solutions for the commercial transportation industry.

The Raymond Corporation (www.raymondcorp.com)

As a means to help support the sustainability efforts of food and beverage customers, Raymond forklift trucks provide Eco-Performance—a design philosophy that Raymond incorporates into the design and engineering of its products for maximum economic and ecological benefits.

The Raymond 4000 Series Stand-Up Counterbalanced trucks are equipped with Eco-

Performance to deliver quicker acceleration and industryleading lift and travel speeds to boost operating efficiency and maximize the number of pallets that can be moved per hour.

Designed to reduce energy consumption and increase productivity in dock-to-stock, loading and unloading and cold storage applications, the Raymond 4250 Stand-Up Counterbalanced Truck delivers 9 percent more productivity and 17 percent more energy efficiency than competing models, based on independent third-party testing conducted by the United States Auto Club (USAC).

In addition, the Raymond 4000 Series features powerful AC drive and lift that helps to increase productivity with more torque, better acceleration and less downtime; requires fewer battery changes; and reduces overall CO2 emissions—helping to support sustainability efforts in the warehouse.

Our Services…

• Warehousing • Transportation • Packaging • Consulting • Real Estate • Energy Solutions • Plant Support New Jersey | Texas | Pennsylvania | Florida | California

www.romarklogistics.com

© 2015 Romark Logistics. All rights reserved. 822 South Avenue West Westfield, NJ 07090 Phone (908) 789-2800 Fax (908) 228-2553

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Transportation Insight

(www.transportationinsight.com) Transportation Insight (TI) is an enterprise logistics solutions provider offering a bundled solution of freight bill payment and audit, carrier sourcing, transportation management and business intelligence reporting. Its sophisticated transportation management system, Insight TMS, helps food and beverage clients achieve green supply chain results through optimal mode and carrier selection.

In conjunction, the comprehensive data management and logistics reporting capabilities help clients streamline supply chain networks based upon simulation with historical data to reduce energy costs, mileage and fuel usage.

Using the TI enterprise logistics solution, clients can streamline their operations by: • Reducing freight costs on www.foodlogistics.com

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inbound and outbound shipments • Providing transportation management systems to simplify shipment routing and execution • Supplying actionable business intelligence reporting to help leadership monitor key performance indicators • Auditing and paying freight invoices to significantly reduce overcharges • Applying specific GL coding rules to freight invoices, reducing administrative time • Assisting in the development and refining of purchasing strategies to lower costs on indirect materials, such as MRO supplies and secondary packaging

Veracity Logistics

(www.veracitylogistics.com) Headquartered in Clearfield, Utah, Veracity Logistics is a leading provider of warehous-

ing, distribution, and transportation services. The company’s various sustainability initiatives include: • Recycling aluminum cans • Using alternative fuel for all forklifts • No-idle policy for all trucks • Best in class practices for lean operations • Recycling plastics and broken wood • Utilizing skylights during the day to dramatically reducing watt usage • Receiving an alternative fuel credit each year

Witte Bros. Exchange, Inc. (www.wittebros.com)

The Witte Bros. Exchange facility in Troy, Mo., uses vertical storing levelers on truck bay doors to provide a complete seal when the truck bay door is closed by removing the leveler from the opening. The savings achieved from this measure are

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realized in reducing the infiltration of outside air into the refrigerated space when the door is both opened and closed. The system involves three components, the leveler, the truck bay door, and the dock seal. Meanwhile, the company’s warehouse lighting features a T-5 fluorescent lighting system and the lights are motion sensor equipped. The refrigeration system is an ammonia-based system design,which uses recirculated liquid fed to evaporators. Witte Bros. uses the Frick Opto22 control system to monitor equipment status, temperatures, pressure readings, etc. Glycol underfloor heat in the freezer is used to keep the ground from freezing. Three compressors are used in this design. Compressor 1 is used to run all the time, while Compressor 2 has a VFD to be used as the trim during peak loads.

Compressor 3 is designed to be used as the backup. ◆

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SECTOR REPORTS

WARE HOUS ING: TE CHNOLOGY UPGRA DE

How To Prepare For A Warehouse Technology Upgrade

BY KEITH PHILLIPS

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xperts predict that retail will evolve more over the next five years than it did over the last 100, but most warehouse managers don’t need experts to know this fact to be true. The rise of e-commerce already significantly altered the way companies fulfill orders. Across industries, companies are taking steps to modernize both their warehouse technology and their warehouse infrastructure to keep up with these changes.

Not only did retail change substantially since most warehouses were built, but so did warehouse technology. Voice automation technology is growing as a faster, safer and more accurate alternative to paper and radio frequency (RF) scanner systems that can help companies keep up with the quickening pace of direct-to-consumer fulfillment. As more and more companies deploy voice, it’s important to make sure they are choosing solutions that help facilities adapt to the changes that already affected the industry as well as ones that will happen in the future.

New tech and your warehouse management system (WMS): Five questions to consider The last time many companies installed warehouse technology, on-premise software was the only option. As a result, many organizations invested heavily in information technology (IT) staff and supporting IT infrastructure to build, host, and maintain a WMS and additional technology. Any set of features the company requested at the time of installation were hard-coded into the system and essentially locked in for its lifetime.

Additionally, the technology that companies installed before the rise of e-commerce and direct-to-consumer fulfillment simply doesn’t offer the features warehouses now need.

As companies consider implementing new voice technology solutions in the warehouse, they are going to want to consider how it performs on five key criteria: 1. What’s the impact on the warehouse’s finances? One of the biggest drawbacks of on-premise technology is the immense financial impact it has on warehouses.

Not only is it expensive to install the software, but it’s also expensive to build supporting technology infrastructure to host the solution on site and to make upgrades as the company’s needs change.

2. What’s the impact on the warehouse’s day-to-day workflow? Warehouses should also pay attention to the impact the software has on day-to-day workflows. In particular, companies want to look for solutions that allow them to

www.foodlogistics.com

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adapt their workflows. It’s important to implement technology that allows warehouse operators to quickly and easily change and redesign workflows as the industry changes.

3. How easily does the solution interface with the WMS? Companies should look for technology solutions that easily link up with a WMS without requiring customers to do their own coding. One way to address this challenge is to look at cloud-based voice technology that eliminates the need for warehouses to invest in on-site IT. 4. How quickly can the solution become fully functional?

With on-premise technology, building and installing the system can be a lengthy process. With old paper-based management systems, training staff and new hires can also take up valuable time. But with cloud-based voice, both installation

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Constance Food Group doubled its pick rate with voice picking. Source: voxware.com/videos/ Voice has allowed Nestle Canada to hire more seasonal workers due to the ease of learning. Source: voxware.com/videos/

and training are quick and easy, which allows companies to get up and running with new technology fast—sometimes in as little as 10 days.

5. How easy is it to make changes to the solution? The true cost of an on-premise solution is becoming apparent to many companies as they prepare to upgrade or replace the WMS. Not only is ripping out the technology an expensive and time-consuming process, but warehouses are also finding that replacing the WMS also means replacing the technology and functionality that was hard-coded into it. With the cloud, companies can make changes to their voice solution without having to worry about a negative ripple effect to other parts of the operation.

Adapting to e-commerce’s effect on the supply chain One of the biggest changes affecting the physical structure of the warehouse and the supply chain is the rise of e-commerce. Ever-

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faster shipping expectations mean that companies must now move more product through the warehouse at greater speeds than their facilities were designed to accommodate. Warehouses that were built before e-commerce existed as a meaningful channel simply weren’t set up to fulfill mass volumes of direct-to-consumer orders.

Before e-commerce, most retailers typically stored all units of a particular item in a single picking location in pallet-size quantities. Now, in order to fulfill both e-commerce and brick-and-mortar orders, warehouse staff may have to pick items by the pallet, case or single item—which means that multiple distinct storage locations for each item are required to keep the warehouse organized.

In addition to storage, processing direct-to-consumer orders also requires more time. Shipping a pallet to a retailer may be one distinct workflow. Shipping a pallet’s worth of individual items requires many more distinct tasks. www.foodlogistics.com

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As important as it is for retailers to update their technology and facilities to adapt to changes that already took place along the supply chain, it’s even more important for retailers to implement solutions that can be easily changed in the future. The next five years will continue to see growth in e-commerce and mobile commerce, and beyond that, companies can expect even greater change. Consumers who are enabled by an ever-increasing bevy of technology are driving changes in retail— and these changes will only accelerate.

Keith Phillips is the president and CEO of Voxware.

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Retail is not at the end of an evolutionary cycle, but is, in fact, right at the beginning of a coming wave of technology-driven changes. Companies must take measures to implement solutions that can easily adapt to changing conditions that don’t lock them into any one way of doing things. The risk that time will make technology obsolete in just a short time and costly to replace is just too high. Companies taking measures to avoid solution lock-in are more likely to avoid solution obsolescence and costly replacements in the future.

TECHNICI ICE

As a result, the biggest strategy question that many fulfillment centers are asking themselves right now surrounds the question of how to pick. Seeing the need for more space, some companies are building additional warehouse facilities to accommodate directto-consumer distribution. Others are investing in retrofitting their existing facilities to accommodate omni-channel fulfillment.

Companies will ultimately make this decision by evaluating the percentage of orders that they ship to brick-and-mortar stores and the percentage they ship directly to consumers as they account for future trends.

To stay ready for change, it’s important to not only have facilities that can accommodate different types of fulfillment, but also to implement technology and infrastructure that can adapt. Elastic walls that can be easily moved around and reconfigured are one of the best tools a warehouse operator can deploy. Setting up flow racking and conveyor belts to accommodate both pallets and individual parcels can help a warehouse continue to run smoothly. Lastly, no changeready warehouse would be complete without a flexible fleet of trucks and trolleys to move various size orders around the warehouse.

Simply put, Perfect Pick was engineered to simplify order fulfillment technology.

Perfect Pick’s “one touch” design is based on a single automated ® component – the iBOT. Perfect Pick does not require the use of multiple transfer points, lifts or conveyors, which add complexity to the system and represent potential failure points and added cost.

Grows with Your Business Perfect Pick’s simple design and streamlined operations result in a more flexible and scalable system. It offers growing businesses the opportunity to invest in technology to meet today’s fulfillment challenges, secure in he knowledge that it can quickly and easily adjust to often unpredictable future demands and business cycles.

To learn more about Perfect Pick go to www.opex.com/perfect-pick

 Voice allowed Dunkin’ Donuts to eliminate checker positions. Source: voxware.com/videos/ www.foodlogistics.com

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FOOD LOGISTICS

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SECTOR REPORTS

TRA NS P ORTATION: A LTE RNATIV E F UE L V E HICLE S

ALTERNATIVE FUELS: (Photo by Darren Hauck/Invision for Frito-Lay/AP Images)

The Quest Continues As alternative fuel vehicle technology continues to innovate, companies at the forefront are finding out that switching requires collaboration and strong partnerships.

BY ERIC SACHARSKI

W

ith general concerns over energy security and the thought of stronger emissions regulations from the Obama Administration on the way, it’s no surprise that fleet professionals across the food and beverage sector are focusing on alternative fuel vehicles (AFVs).

Even though the price of diesel fuel is still over a full dollar cheaper now than it was in

May of 2014, it’s noteworthy that the price has gone up for six straight weeks. Most transportation industry thought leaders are convinced the current low diesel prices are only temporary.

In addition to the benefits offered by some alternative fuels such as lower costs, smaller carbon footprints and reduced emissions, fleet operators have to consider the upfront costs, including the need to train drivers and maintenance technicians about new technologies. They also have to consider the available fueling infrastructure, tax credits and incentives, all of which can vary significantly among geographic regions.

Customer request ‘fuels’ interest An early adaptor of alternative fuel vehicles was States Logistics Services, Inc., a third-party logistics solutions provider based in Buena Park, Calif. States Logistics runs its entire California fleet using B99 biodiesel fuel, a blend of 1 percent diesel with 99 percent biodiesel that can be used in compression-ignition (diesel) engines with little to no modifications. But the switch for States Logistics didn’t happen because they wanted to lower 40

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Dan Walsh, a Frito-Lay employee, uses a Frito-Lay’s CNG fueling station in Beloit, Wis.

their footprint, reduce emissions or lower their fleet costs … it was sparked by a much easier explanation.

“One of our customers asked if we were using biodiesel trucks, then asked if we’d be interested in using it if we were not,” says Dale Fietsam, business development manager at States Logistics. According to Fietsam, the switch has proven to be a competitive advantage for States Logistics.

“The Port of Los Angeles and the Port of Long Beach don’t charge a ‘clean truck’ fee anymore, but trucks still have to meet certain emission requirements in order to pick up containers at those ports,” says Fietsam. “By using the biofuel, we meet those requirements easily. It’s really a benefit for our customers, and we’ve had potential customers come to us because they see the benefits the biofuels provide and they want to use a carrier that can provide that service.”

AFVs ‘urban’ deliveries Back in late 2014, Nestlé Waters North America put

five medium-duty trucks fueled by propane autogas into service at its Los Angeles location delivering Arrowhead Mountain Spring Water to area businesses and residents.

Among the reasons Nestle cited for the purchase of the propane trucks includes the fact they maintain full factory warranty, the ease of fueling, the low infrastructure cost and the unexpected benefit of lower electricity costs. Autogas infrastructure is less expensive to install than other transportation fuels—conventional or alternative, with autogas costing up to 50 percent less than diesel on average.

“Nestlé Waters North America is committed to delivering customers drinking water with reliable, innovative and efficient green transportation solutions,” says Bill Ardis, fleet manager.

While electric, propane and hybrid AFVs are still considered the “green” vehicles of choice for high-density, intracity routes, the alternative fuel choice for most medium/ heavy-duty fleets has become compressed natural gas (CNG). www.foodlogistics.com

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Hybrids, Nitrogen Engines And AFV Technology The trends from 2014 and emerging ideas for 2015 and beyond.

More CNG fueling stations have popped up to support the growth in CNG, both private and public. But costs are still relatively high, which means the most successful ventures are often shared among a team of partners.

On the day Frito Lay Inc. unveiled a brand new CNG fueling station in Beloit, Wis., they also announced plans to break ground on seven more public fueling stations across the U.S. with the goal of turn42

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ing 20 percent of their delivery fleet to CNG vehicles. In order to get partners Questar Fueling, based in Salt Lake City, Utah, and Trillium CNG from Chicago, Ill., to invest in the venture with them, Frito Lay guaranteed to purchase a base volume of the gas to help justify building the infrastructure.

On Earth Day, Penske had a ribbon-cutting ceremony in Pottsville, Pa., at the grand opening of a new Trillium CNG fueling station that

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Image courtesy of XL Hybrids.

E

Partnerships build CNG infrastructure

Image courtesy of Penske.

ven though natural gas and propane have gained a larger share of the alternative fuel vehicles (AFV) market, they are by no means the only options making noise in the marketplace. As AFV technology continues to make substantial progress, options like hybrid engines and Coca-Cola condual-fuel engines are gaining in popularity. verted 175 serThe U.S. Department of Energy continues to vice vans to hybrids offer grant money to companies willing to invest in and after driving developing AFV technologies, and the investment more than 1.5 million service miles, is starting to produce options like liquid nitrogen the hybrid system engines and other innovations that will help to showed an approxitransform how food and beverage companies mate 20 percent transport goods and materials. reduction in fuel Coca-Cola operates the largest heavy-duty used compared to hybrid electric delivery fleet in North America. The conventional vans. company is partnering with Boston, Mass-based XL Hybrids to upfit all new vans with the innovative XL3 hybrid electric drive system.

XL Hybrids pioneering electric powertrain technology is charge sustaining, which eliminates the need for plugs, return-to-base fueling, and added operating and maintenance costs. The hybrid system saves fuel through regenerative braking, a process by which the electric motor helps slow the vehicle when the driver brakes, charging the battery. When the driver accelerates, the battery releases the energy to the electric motor, helping propel the vehicle.

After converting 175 service vans to hybrids and driving more than 1.5 million service miles, vehicles with the XL3 hybrid electric drive system showed an approximate 20 percent reduction in gallons of fuel used compared to Coca-Cola’s conventional vans.

Based on brake maintenance savings, engine downsizing, fuel savings and driver productivity, CocaCola estimates they are saving $15,000 to $20,000 per van in operational savings per year.

Penske also just recently announced that they Penske recently have been awarded a $400,000 grant from the announced a grant U.S. Department of Energy to expand its Alternafrom the U.S. tive Fuel Vehicle Demonstration and Enhanced Department of Driver Experience Project, to educate and further Energy to expand introduce AFV innovations to customers currently its alternative fuel not utilizing the technology. ◆ vehicle project.

involved the collective efforts of Rochester, N.Y.-based Wegman’s Food Markets, Cherry Hill, N.J.-based supply-chain solutions provider NFI, and consultants Gladstein, Neandross and Associates out of Santa Monica, Calif.

Drew Cullen, Penske senior vice president, called the station opening “an excellent example of how several organizations can work together and create a success story for the transportation industry to transition to alternative fuels.”

As the CNG infrastructure continues to grow, companies are having an easier time finding partners to support the investment.

“There are still challenges to implementing these tractors, and we will continue to test and implement this fuel wherever possible. But as the natural gas infrastructure grows, we will expand our footprint and introduce these power units in other areas of the country,” says Ron Hall, vice president of equipment and fuel at C.R. England, a Salt Lake City, Utah-based transportation solutions provider.

“We invest in advanced fuels, associated infrastructure, and advanced fuel vehicles to diversify our fuel sources … with a current emphasis on natural gas,” says Nanci Tellam, group director, environmental services at Ryder System, Inc., headquartered in Miami, Fla. Ryder’s investment has been a big one, too. They have already rolled out natural gas transportation solutions in Arizona, Texas, California,

New York, Utah, Georgia and Michigan. But they wouldn’t be doing it without the help of public and private industry partnerships.

Ryder’s $38.7 million SANBAG Project, a partnership between the U.S. Department of Energy, the California Energy Commission, and the Southern California Association of Governments Clean Cities Coalition, has Ryder deploying 202 heavy-duty, natural-gas-powered trucks across three Southern California locations. The project includes upgrading three maintenance facilities to service natural gas vehicles and constructing two publicly-accessible natural gas fueling stations.

When fully implemented, the project is expected to displace an estimated 1.5 million gallons of diesel fuel with 100-percent domestically produced natural gas.

No matter if it’s an electric, CNG, a hybrid or even an advanced alternative fuel that drives more fleets away from traditional diesel transportation, AFVs will continue to make a larger impact on how we transport the global food supply to all corners of the globe. ◆

For more information: C.R. ENGLAND, 800-453-8826, www.crengland.com ENVIRONMENTAL DEFENSE FUND, 800-684-3322, www.edf.org PENSKE, 888-236-3560, www.gopenske.com RYDER SYSTEM, INC., 800-793-3765, www.ryder.com STATES LOGISTICS SERVICES, INC., 714-521-6520, www.stateslogistics.com TRILLIUM CNG, 800-920-1166, accel.trilliumcng.com U.S. DEPARTMENT OF ENERGY, 202-586-5000, www.energy.gov XL HYBRIDS, 617-718-0329, www.xlhybrids.com www.foodlogistics.com

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SECTOR REPORTS

SOF TWA RE & TE CHNOLOGY: HOTTE S T A PPS

MOBILE APPS EVOLVE,

Empowering Managers And Employees In The Food Supply Chain Evolving mobile technology and cloud-based software brings new management tools. BY ELLIOT MARAS • With mobile apps, managers can up-

date information quickly while an operational change is being made.

information, and interfacing to networks to monitor activities.

“Mobile apps are really starting to become the desired input for data,” says Joe Scioscia, vice president of sales at Vormittag Associates, Inc. (VAI), the Ronkonkoma, N.Y-based ERP software provider. “They’re very application-focused.

Mobile apps are very singular-focused and user-friendly.”

And as people of all ages become used to mobile apps, “cloud” technology enhances their versatility. Cloud-based systems allow companies to access data more quickly and easily compared to on-site, browser-based software.

Worker empowerment

E

“

nterprise mobile management” and “mobile device management” are terms that describe the way businesses are now using smartphones, tablets and PCs to manage their operations.

The tools give both managers and employees real time feedback and direction. They work on a range of operating systems and they can improve performance in nearly every type of work environment.

While these mobile networks are largely in their infancy, the food and beverage (f&b) supply chain is finding that they facilitate many key functions. Growers, processors, wholesalers, distributors, retail44

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• The mobile app software from

IFoodDecisionSciences directs workers to conduct an environmental assessment in the field.

ers, carriers and 3PLs are all finding mobile management makes them more productive.

Smartphones and tablets are already enabling many tasks, including acting as remote controls, displaying and analyzing

One of the most revolutionary aspects of mobile management is its level of worker empowerment. It is a form of automation that can enhance personalization in the work place.

Church Brothers Produce Inc., a grower, processor and retailer based in Salinas, Calif., has found cloud-based mobile enterprise systems deliver several benefits, says Drew McDonald, vice president of quality, food safety and regulatory affairs.

Denver, Colo.-based Go Spot Check allows Church Brothers Produce workers to complete quality reports and take pictures in the field via Android and Apple smartphones and tablets. The software ensures that the field team organizes the data according to Church Brothers Produce’s own parameters. Management creates its own checklist for various field tasks. www.foodlogistics.com

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Church Brothers Produce uses another cloud-based software for compiling realtime reports for food safety monitoring.

This software from Seattle, Wash.-based iFoodDecisionSciences comes programmed to check for certain types of data.

McDonald gives high marks to both Go Spot Check and iFoodDecisionSciences for taking into account the way a grower operates. Both software systems streamline processes for documentation, filing and exporting data to other programs. “They’re very appropriate for what we’re trying to

do,” he says. iFoodDecisionSciences was founded two years ago to help growers, packers and processors collect and analyze food safety data, according to company CEO Diane Wetherington. Growers, in particular, are faced with an increasing demand for food safety data and collection, she says.

Two fortuitous developments have recently converged, Wetherington says.

One: mobile devices have become widely used. Two: cloud computing has provided an efficient and affordable way for companies to store and access data in real time.

Workers can now log data from the field, factory or warehouse. Because of real time alerts about hazards, such as unsafe chlorine or pH levels in a water tank, “you don’t have to wait for somebody to find the appropriate supervisor to take action,” Wetherington says.

FSMA drives innovation • A worker at Duda Farm Fresh Foods in

Oviedo, Fla. reports on the condition of produce using the iFoodDecisionSciences mobile solution.

Wetherington says these tools will help companies comply with the Food Safety Modernization Act (FSMA). While most FSMA rules have not yet taken effect, customers are already using her apps to verify compliance with Good Agriculture Prac-

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tices (GAP) and Hazard Analysis Critical Control Point (HACCP) standards.

Mobile solutions are also playing a bigger role in f&b transportation.

Karlsburger Foods Inc. in Monticello, Minn., has begun using mobile apps for field sales and proof-of-delivery. The company finds the mobile apps easier, faster and less expensive than manual systems – as well as much more accurate, allowing better customer service. The company’s foodservice division upgraded this year from laptops to Vormittag Associates, Inc.’s (VAI) browser-based, enterprise system.

Karlsburger Foods provides its drivers iPads for the mobile apps.

Mike Maher, CEO at Karlsburger Foods, says the company’s route sales drivers were having connectivity issues with the laptops they were previously using. The mobile

Food & Beverage ERP software with built in mobility VAI’s Award Winning S2K Enterprise for Food is specifically designed to meet the unique requirements for the food industry, and to help companies meet the challenges of today’s economic environment.

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solution that has replaced the laptops allows sales reps to access customer sales information in real time and provide electronic receipts. The reps still carry Bluetooth printers for those customers that want paper receipts. About half are still getting paper receipts.

The connectivity issues with the laptops were especially problematic. If a laptop could not connect to the Internet, the sales could be assigned to the wrong month, which created administrative problems. “Our reps were always having issues with the connectivity. That was always an issue for us not be ‘live,’” Maher says. It wasn’t unusual for a rep to spend 30 minutes to connect to the virtual private network.

Deploying the mobile software to Karlsburger Foods’ 37 cube van drivers was easy since it only takes 30 seconds to download the app. If a driver loses an iPad, all he needs to do is get another one.

“All the information is stored in the cloud.

That’s a huge advantage for us,” says Maher.

The laptops they previously used cost between $1,000 to $1,200 and required software installation, making the total cost $1,400 to $1,800. The mobile system is about half the cost.

In addition to making deliveries more efficient, the mobile solution makes the company “greener” and improves the company’s image with customers.

Deliveries improve Monsanto Co., a provider of agricultural products for farmers, found a mobile enterprise solution improved its deliveries.

The mobile solution from Atlanta, Ga.based nuVizz Inc. allows drivers to complete orders faster and more accurately. It also allows the company to track deliveries and capture customer feedback from the field in real time.

Each contracted carrier has their own Monsanto portal from which they assign deliveries. Once the driver downloads the app, they can receive orders in real time. If they travel to an area without connectivity, they will still be able to execute the delivery since the app has offline capability built in.

The nuVizz software integrates with Mon46

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MOBILE APPS:

Native, Web-based and hybrid

W

hen introducing mobile apps, companies face the choice of using a Web-based app or what is called a “native” app. The Webbased app is device-neutral, while the native app has functionality built into its operating system.

A mobile Web app works across all mobile platforms and operating systems.

They don’t need a different mobile Web app for iOS, Android, Blackberry, and Windows devices. Even if another operating system becomes popular in the next few years, that same mobile Web app will work on that platform as well.

Sal Stangarone, product consultant at MRC, an Oak Brook, Ill.-based

provider of Web application software, says both app types can allow a worker to access and record data while disconnected from the Internet.

“Mobile apps will do everything most businesses need,” Stangarone says.

While both app types can access all functions, a native app will provide more seamless integration for accessing a camera or a microphone than a Web app, he says.

In addition to mobile and native apps, there are also “hybrid” apps. The hybrid is a mobile Web app wrapped in a platform-specific shell. This shell provides native qualities, such as full device integration, native installation, and app store/market distribution. ◆

• Mobile apps such as

Freight, YRC, and over 50 other carriers, Jutilla says. The result is better spot market rates, service levels and delivery timeframes. uShip initially offered a mobile Web app, but found that native apps provide better location finding, sharing, tracking, and search santo’s SAP ERP system, and payment capabilities. The uShip app is allowing real-time visibility available on Android and iOS platforms. of deliveries. It also allows the In October 2013, Ivan Tsybaev started drivers to provide electronic proof-of-delivery Trucker Path, a mobile app that truck drivto customers. ers can download to access road information, such as availability of weigh stations, A new LTL freight marketplace condition of truck stops, parking availabilMobile apps have helped a new group ity, washing facilities, etc. The app works of freight Websites revolutionize the LTL on Android and iOS operating systems. carrier marketplace. Freight Websites such Truckers, being a closed knit commuas Austin, Texas-based uShip and San nity, spread the word, and in less than two Francisco, Calif.-based Trucker Path allow years more than 400,000 of them downshippers to post loads in real time and let loaded the Trucker Path app. truckers bid for them.

Once this critical mass was reached, The carriers don’t have to pay subscription Tsybaev got the idea of inviting freight brofees, which can be around $100 per month if kers to post carrier loads and let the truckthey are accessing several load boards. ers bid for them. The drivers place bids and “They only pay when they have a the brokers accept them. Trucker Path gets match,” says Dean Jutilla, vice president a percentage of the sale. The drivers have to of marketing at uShip. “You don’t have to be licensed with the carrier. make any phone calls.”

Tsybaev has been testing the system Shippers periodicalsince March 2014 in ly check the spot rates Texas and California. on uShip and compare More than 300 freight them to their existing brokers have placed carrier’s contract rates, 30,000 truckloads.

Jutilla says.

He plans to release it He says drivers find nationwide in June.

No the app very conveTsybaev estimates 19% nient. that more than half of uShip aggregates his freight is f&b. competing rates from Like Wetherington 70 to 80 percent of the at iFoodDecisionLTL market, including Sciences, Tsybaev Yes FedEx Freight, Old thinks his timing Dominion, Con-way has been fortuitous.

Source: Manhattan Associates Trucker Path have allowed independent truckers to access a variety of route information in addition to finding available LTL shipments.

CURRENTLY PLAN TO USE MOBILE SOLUTIONS FOR SUPPLY CHAIN MANAGERS

81%

www.foodlogistics.com

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As Summer is now in full swing, so must be your food safety certification program. Even though employees take a break, your food safety programs cannot. The culture you drive when building your programs must remain thorough so that your company can produce or distribute products with the safety and quality expected by your customers – and theirs.

Heat and humidity bring rain – a lot of it to the Southern part of the USA in the past few weeks. Food and packaging producers and distributors in those areas will hopefully have had an emergency plan in place to both mitigate the risk of product contamination, but also to react to now that an emergency exists.

Having a solid food safety management program that traverses the organization is critical in supporting your customers. Planning for both vacations and emergencies –

natural disasters – is a critical component of a food safety management system. Although HACCP plans and GMPs are important, so are other aspects of building and maintaining a culture of producing safe products.

Some questions to ask yourself: Who is covering for the person on vacation? Have they been trained? Are they qualified? Do they know the proper procedures for the role they will assume? Do they know the safety aspects? Can they document that? What is the plan for a flood, tornado, earthquake, or fire? Are the employees aware? Is a plan in place for senior management to manage on-site or remotely in an emergency?

Develop a system to cover any risks your company may have or may encounter – look forward and think ahead…not just what’s happening today. Are you prepared?

Having answers to these questions and preparing for each scenario will help you establish the best possible food safety system and culture within your organization.

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Learn more by visiting our website and downloading our free standards. Join our group on LinkedIn at IFS Food.

FLOG0615_44-49_SectReptTECH EM_ES_LS.indd 47

www.ifs-certification.com

6/12/15 8:37 AM

Four years ago, less than 30 percent of the truckers used mobile apps. Today, about 80 percent do.

Managing the DC in real time

WHAT DRIVES EMPLOYEE ENGAGEMENT IN THE SUPPLY CHAIN? • Senior leadership continually updates/communicates strategy

Mobile management is also making big inroads inside the DCs. Manhattan Associates recently surveyed DCs on mobile solutions and found that 81 percent plan to deploy such solutions for managers. The top benefits include increased engagement (60 percent), followed by increased oversight (42 percent), real time data (33 percent), supervisor productivity (21 percent), and exception management (19 percent).

While LMS and WMS solutions have long been integrated, sharing performance data in person with employees has been relegated to static reports run at long intervals. Mobile management, however, improves the manager/employee interaction by connecting both parties to performance reports in real time.

Dallas, Texas-based RMG Networks, one of Manhattan Associates’ software partners, recently made its InView Mobile solution available on iOS and Android phones and tablets. RMG’s labor produc-

• Business goals are communicated companywide • Staff goals are aligned with corporate goals

Source: Harvard Business Review

tivity improvement tool provides real-time metrics that let employees to see how they are performing against goals.

Supervisors can send real-time metrics (e.g., picking and packing rates by team or individual members; rankings; actual versus goal performance) via display screens and desktop dashboards to employees on the manufacturing or warehouse floor. This allows them to make decisions in real time.

The data also can be pushed to mobile devices, enabling management to monitor activity from any location or through preset, threshold alert notifications.

Yard management improves

Columbian Logistics Network, the Grand Rapids, Mich.-based 3PL, has found mobile technology helps integrate yard performance into overall supply chain metrics.

Yard management that utilizes mobile Facility Manager Philip Lee, what communication benefits from lower hardware costs and oftentimes, faster training.

When requesting “Knowing a trailer to be moved when one of from one yard locamy coolers tion to another, a is about mobile device can to fail – or receive a real-time already has.” request and identification information, says Blair Thomas, director of customer care at Columbian Logistics Network.

The mobile device can capture the Introducing the Cellular Machines temperature monitoring kit! metrics as the task is Knowing when temperature-critical equipment failures occur can being executed. prevent devastating losses for your retail, wholesale, or distribution In the case of facility. With our temperature monitoring kit, you can: a certain bread Wirelessly monitor key cooling/warming assets 24/7 Receive text alerts and performance stats right on your phone manufacturer, the Even store data on the cloud for easy reporting to management mobile connectivity or regulatory authorities improved communiTake action today. Call 855.639.1993 or cation among buildvisit www.anaren.com/cellularmachines ings that send and

matters to YOU?

48

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• FOOD LOGISTICS

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72% 70% 70% 69% 67%

• Recognition for good performance • Clear understanding of how performance contributes to strategy

receive trailer shipments.

The trailers do not follow a static delivery pattern. Columbian Logistics Network configured YardView, the yard management system from Castle Rock, Colo.based Cypress Inland Corp., to send an email to a distribution list in the receiving warehouse saying, “Hey, a trailer is coming your way, and it’s headed to the yard.” At that point, the person in the warehouse can change that move to another location.

When the trailer arrives at the warehouse, the driver sees a red flashing screen that indicates a change has been made. The driver checks the alert message, sees that the destination has been changed, and completes the move accordingly.

All facilities in this customer’s campus are now using iPads to get the emails in case they are away from the desk when the notification arrives. The iPads are Wi-Fi connected in the buildings, so there is no ongoing cost.

“It’s all about having connectivity to the device, and the program is hardware agnostic,” Thomas says. Mobile technology brings Internet connectivity to every task in the f&b supply chain. ◆

For more information: COLUMBIAN LOGISTICS NETWORK, 888-609-8542, columbianlogistics.com CYPRESS INLAND CORP., 303-781-3430, yardview.com GO SPOT CHECK, 844-359-2502, gospotcheck.com IFOODDECISIONSCIENCES, 206-384-4679, idsfoodsafety.com MANHATTAN ASSOCIATES, 770-955-7070, manh.com MRC, 630-916-0662, mrc-productivity.com NUVIZZ INC., 404-937-1971, nuvizz.com RMG NETWORKS, 800-827-9666, rmmgnetworks.com TRUCKER PATH, truckerpath.com USHIP, 800-698-7447, uship.com VORMITAGG ASSOCIATES INC., 630-873-3502, vai.net www.foodlogistics.com

6/12/15 8:37 AM

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Global Supply Chain Solutions for the Food and Beverage Industry

6/12/15 8:37 AM

SECTOR REPORTS

SOF TWA RE & TE CHNOLOGY: V OICE RE COGNITION

VOICE RECOGNITION Expands Beyond Order Picking Voice technology can manage replenishment, transfers, cycle-counting, receiving and more in a warehouse. BY ELLIOT MARAS

W

hen asked what warehouse technology brings the most immediate improvement in efficiency, voice-directed picking often comes to mind for warehouse professionals. The ability to guide the picker through an order, provide item location and quantity required, then have the action confirmed by voice makes a distribution warehouse more efficient. And given that order picking can account for 40 to 60 percent of the labor in a food or beverage warehouse, this benefit remains a driving force for voice automation.

By using a voice verification system, information from the warehouse management software (WMS) is transformed to speech, instructing the order picker to the item location and

For more information: INTELLIGRATED, intelligrated.com, 877-315-3400 LUCAS SYSTEMS, Lucasware.com, 724-940-7000 MOTOROLA SOLUTIONS, Motorolasolutions.com, 631-525-2139 NUMINA GROUP, numingroup.com, 630-343-2600 TOPVOX, top-vox.com, 847-842-0900 VOCOLLECT, vocollectvoice.com, 412-829-8145 50

JUNE 2015

quantity required. The picker then verbally confirms when the task is done.

But as WMS, voice verification technology and computer hardware all evolve, system integrators are finding ways to expand voice technology’s benefits beyond that of order picking.

While this article focuses on voice technology’s growing capabilities, it is important to note that order picking remains the key benefit that voice technology provides, given the importance of this function in a distribution warehouse.

It must also be noted that voice technology is not the only order picking system that distribution warehouses currently use. Radio frequency (RF)

• FOOD LOGISTICS

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scanners and pick-to-light systems are also being used, both of which have begun utilizing visual logistics to make the order picker’s job easier.

Warehouse managers are advised to consider all options when choosing an order picking technology.

The Wyoming Liquor Division faced a growing demand for overnight delivery, so it expanded the special order and catalog selections at its Cheyenne, Wyo., DC. It soon realized that its manual order fulfillment system was unable to adapt to the shifted retailer preference from full cases or pallet loads to more complex split-case orders.

The division found the Datria Voice solution from Elmsford, N.Y.-based Knighted, an Intelligrated company, offered pick-by-voice order fulfillment featuring hands-free, step-by-step picking instruction and real-time order management. Wireless phones and

Bluetooth headsets replaced paper pick lists, and enabled the WMS to direct workers to each item location for accurate item picking.

Meanwhile, voice technology has expanded to improve warehouse operating efficiencies in areas other than product picking. www.foodlogistics.com

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• The TekSpeech Pro from Motorola Solutions offers speaker independent voice recognition and requires no speaker training for easy and fast deployment.

• At left, wireless devices and Bluetooth headsets enable hands-free operation at Nature’s Way Products Inc. to guide orders to completion. The company uses Knighted’s Datria voice solution. • Above, Bartlett Distribution Services LLC, the logistics hub for Starbucks in New York City and the tri-state area, uses the Lydia’s voice solution from topVOX Corp.

Voice recognition software can manage the following functions: selection (case, piece batch and cluster picking), put-to-store (building location specific pallets, both single and multi-SKU pallets), replenishment, transfers (point-to-point item moving), put-away, line loading (order assembly from www.foodlogistics.com

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belts for pallet building), cycle counting, loading, back stocking, receiving and inventory control.

Jay Blinderman, director of product marketing at Vocollect

by Honeywell, based in Pittsburgh, Pa., notes that accurate cycle counting can eliminate the need for a stand-alone

inventory audit function.

The marrying of bar code scanning and voice – so-called multi-modal applications – marks a more recent advancement in warehouse management.

Jennifer Lachenman, vice president of product strategy and business alliances at Lucas Systems, a Wexford, Pa.-based voice technology provider, says that more than 80 percent of all new customers are using scanning within their voice applications.

Meanwhile, voice technology providers are making their software more “hardware agnostic.”

“We can use any hardware that’s voice-capable, including industrial PDAs and smart phones,” says Marceline Absil, vice president of sales and marketing at TopVOX Corp., a Barrington, Ill.-based maker of voice hardware and software.

The TopVOX “speaker independent” speech recognition engine allows the system to recognize voices without the need for lengthy voice template training.

For Nature’s Way Products Inc., a manufacturer and distributor of dietary supplements based in Green Bay, Wis., the speaker independent feature was an important consideration in choosing a voice technology for the company’s West Coast distribution center in McCarran, Nev., according to Tom Krajewski, Nature Way’s director of distribution.

Nature’s Way Products has used voice verification for functions other than order picking; packing and shipping are also voice-directed. Woodridge, Ill.based Numina Group’s warehouse control system (WCS) manages the order fulfillment automation module. The WCS simultaneously processes the entire mix of order types including split-case orders, Internet and less-than-truck-

load (LTL) shipments.

Motorola Solutions, based in Plantation, Fla., recently introduced a solution called TekSpeech Pro which offers speaker-independent voice recognition and requires no speaker training. A speech analyzer captures all types of time and event information from voice-directed processes, providing the user visibility to maximize workflow and worker productivity.

Hardware evolves As warehouse managers find new uses for voice verification, computer hardware continues to evolve, bringing new management tools to the warehouse. These include smart phones, “smart watches” and visual display technology.

Hence, warehouse managers must consider software/hardware compatibility to be in a position to take advantage of new hardware tools.

Providers of voice verification software increasingly note the importance of “hardware agnosticism.”

For an extended version of this article, go to www.foodlogistics.com/11598300 ◆

ADVERTISER INDEX ADVERTISER......................... PAGE Anaren, Inc.......................................48 Burris Logistics.................................13 CaseStack Inc..................................15 CHEP................................................21 Direct Energy Business....................37 DSC Logistics...................................33 Duke Energy.....................................25 Fleet Advantage.................................7 Ford Motor Co................................ 2-3 Henningsen Cold Storage Co..........35 IFS Management GmbH...................47 iGPS Logistics LLC..........................29 Interlake Mecalux...............................9 Isuzu Truck.......................................17 Johnson Refrigerated Truck Bod......54 MercuryGate International Inc..........53 Mitsubishi Fuso................................43 nuVizz.................................................5 Opex Corporation.............................39 PAS/California Natural Products......38 Penske..............................................11 Romark Logistics..............................34 Ryder System, Inc............................31 Utility Trailers....................................23 Volvo Trucks North America.............41 Vormittag Associates, Inc.................45

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• JUNE 2015

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FOOD (and More) FOR THOUGHT

ELLIOT MARAS

PORT CONGESTION WOES:

Shippers Seek Relief From Excessive Carrier Charges

T

he labor dispute that knotted up U.S. West Coast ports this past fall and winter exacerbated congestion problems that have plagued shippers for some time. While many of the labor issues have subsided, congestion problems continue.

And with international trade expanding, these issues call for attention sooner than later. Shippers, trade groups and politicians are pushing for relief, both short term and long term.

The growth in ship sizes and the emergence of carrier alliances contributed to congestion at the nation’s ports prior to the labor dispute. When the dispute peaked, however, it fueled the fire and caused shippers to lose millions of dollars in lost sales. These losses have yet to be fully passed on through the supply chain.

In the short term, shippers need relief from excessive charges that carriers have saddled them with. In the long term, the Federal Maritime Commission (FMC) needs to take a more proactive role in addressing port traffic problems.

FMC hears shippers’ concerns Prior to the West Coast labor dispute, the FMC held four forums at gateway ports to foster dialogue between industry stakeholders, regulators, and the general public on the causes, impacts and possible solutions for the congestion at ports around the country.

‘Frequently, Shippers told the FMC that terminals demurrage and detention practices of marine terminal operators and only accepted vessel-operating common carriers are containers back unfair. Demurrage is a charge for the for a 2- or 3-day use of space; detention is a charge for the use of equipment. One shipperiod, leaving per told the commission it has paid trucks stranded.’ more than $100,000 in demurrage charges in the last year, compared to approximately $10,000 in the previous year. This disparity highlights shippers’ perceptions that demurrage charges are not serving to speed the movement of cargo, the purpose for which the charges were originally intended.

When work slowed to a trickle along U.S. West Coast ports, the congestion became unmanageable for shippers. They could not return the carriers’ containers before the “free time” expired – typically four to 10 days. Terminals closed abruptly for hours or days at a time, and trucks could not get into the terminals to drop off their 52

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containers. This created gridlock that lasted for weeks and months.

At times, railroads were forced to embargo shipments to the West Coast ports, as there was no place to unload.

The labor contract negotiators reached a tentative agreement in late February. But in the meantime, shippers got charged millions of dollars for delays they did not cause.

MARAS

Carriers levy ‘per diem’ charges Ocean carriers, who were well aware of what was taking place, took advantage of the situation by levying “per diem” charges for customers’ inability to return the containers on time. The fees are totaling hundreds of thousands and in some cases millions of dollars, according to the Agriculture Transportation Coalition (AgTC).

These costs are following nine months of lost sales, cargo damage, lost customers and diverting cargo to air and to alternative ports.

Some carriers are waiving these charges, but others are not, according to Peter Friedmann, AgTC executive director.

“Cut off dates for receiving cargo (and containers) were frequently delayed two or three weeks after we had taken the containers for loading, even though the carriers knew they were only giving us 14 days free time,” says Laura Daniels, transportation manager at Ellensburg, Wash.-based Anderson Hay and Grain Co. “Frequently, terminals only accepted containers back for a 2- or 3-day period, leaving trucks stranded in lines at the terminals all day long.”

The FMC has established a process by which a shipper can file a request for assistance. The process, however, is very difficult. It requires the shipper to provide detailed documentation for each time the terminals were closed. This is almost impossible for many shippers. In some cases, the terminals themselves do not have this information.

AgTC has asked FMC to waive the carriers’ per diem fees imposed during peak congestion at the West Coast ports.

The organization has also been working with federal lawmakers on long-term relief for shippers in light of ongoing congestion problems. Several senators recognize the impact not just on the shippers, but the food industry and ultimately the public at large, according to AgTC’s Friedmann.

“This is all part of a new role Congress is taking to ocean transportation,” Friedmann says. “It’s an agriculture/food production issue.” ◆ www.foodlogistics.com

6/12/15 8:35 AM