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FUTURE OF CHEESE PROCESSING

CONTAINERS OPEN NEW SOYBEAN EXPORT MARKETS

COLD CHAIN DIGITALIZATION IN REAL TIME

F Food Logistics

SPECIAL PULL-OUT INSIDE

THE POWER OF PROPANE ®

Global Supply Chain Solutions for the Food and Beverage Industry

2019 TOP PROVIDERS

SUSTAINABILITY

COMES FULL CIRCLE As sustainability initiatives evolve, circularity is taking shape in more supply chains

Issue No. 207

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June 2019

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FUTURE OF CHEESE PROCESSING

CONTAINERS OPEN NEW SOYBEAN EXPORT MARKETS

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Global Supply Chai the Food and Beve

SUSTAINA

COMES FULL As sustainability initiatives evolve, circularity is taking shape in more supply chains

Issue No. 207

June 2019

FoodLogistics.com

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Food Logistics

2019 TOP

TOP GREEN PROVIDERS 2019

PROVIDERS

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

THERMAL ENERGY STORAGE

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ON THE MENU COVER STORY

Sustainability Trends in the Food Supply Chain

June 2019 ISSUE NO. 207

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COLUMNS FOR STARTERS

Sustainability translates into environmental responsibility initiatives, as well as responses to an increasingly environment-conscious consumer market.

COOL INSIGHTS

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TRANSPORTATION

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Overcome Food Transport Challenges

FEATURE

Driver shortages, coupled with environmental issues and safe transport, are keeping transportation providers awake at night.

THIRD-PARTY & REFRIGERATED LOGISTICS

SOFTWARE & TECHNOLOGY

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Nimble Defines High-End Logistics

Specialty logistics requires a unique understanding of customer requirements and changing variables. SPECIAL REPORT

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Food Logistics Top Green Providers 2019

The annual Top Green Providers list showcases companies that have found new ways to promote sustainability throughout their operations and to 2019 TOP their customers.

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Mobile Apps Benefiting Food Supply Chain

As the market continues to modernize and more companies transform digitally, mobile applications will become the preferred tool for data entry for companies across industries. OCEAN PORTS & CARRIERS

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Growing Market Opportunities for U.S. Soybean Exporters

Increased use of containers is helping soybean exporters optimize their supply chain and respond quickly to changing market conditions.

The Future of Cheese Processing

Masters Gallery Foods builds the cheese processing plant of the future with a green design and high-tech equipment.

Digitizing the Endto-End Cold Chain Through Real-Time Technology

Dispelling myths about the state of cold chain technology and taking advantage of its current capabilities. FOOD (AND MORE) FOR THOUGHT

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Devastating Midwest Floods Deliver Impact

In the wake of devastating weather events, food logistics distributors and suppliers should reassess the resiliency of their suppliers and customers in the region.

DEPARTMENTS

Supply Scan 10 Food on the Move 43 Ad Index 8

WEB EXCLUSIVES  What the Rise of CannabisInfused Food and Drinks Means for Supply Chains foodlogistics.com/ 21070103

 Food Safety: Traceability and Transparency by Way of Blockchain

PROVIDERS

WAREHOUSING

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Plastic is So PassĂŠ

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The food/beverage industry is leading the charge to ban and/or reduce plastic in its supply chain.

foodlogistics.com / 21070106

 Delivering Transparency from Farm to Table with Mobile Solutions

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foodlogistics.com/ 21070109

www.FoodLogistics.com

Published and copyrighted 2019 by AC Business Media. 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. Food Logistics (USPS 015-667; ISSN 1094-7450 print; ISSN 1930-7527 online) is published 10 times per year in January/February, March, April, May, June, July, August, September, October and November/December by AC Business Media, 201 N. Main Street, Fort Atkinson, WI 53538. Periodicals postage paid at Fort Atkinson, WI 53538 and additional mailing offices. POSTMASTER: Send address changes to Food Logistics, P.O. Box 3605, Northbrook, IL 60065-3605. Subscriptions: U.S., one year, $45; two years, $85; Canada & Mexico, one year, $65; two years, $120; international, one year, $95; two years, $180. All subscriptions must be paid in U.S. funds, drawn from a U.S. bank. Printed in the USA.

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FOR STARTERS

FROM THE EDITOR’S DESK

PLASTIC IS SO PASSÉ I SOWINSKI

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n my home state of California, a new law prohibits full-service restaurants from automatically giving out single-use plastic straws unless the patron specifically requests one. In L.A. it’s even stricter. As of April 22 (Earth Day) a new ordinance requires all food and beverage facilities, including drive-throughs and food trucks, to phase out single-use plastic straws by October 1. I’m all for reducing plastic in the food/beverage supply chain. The benefits are huge; the effort is small, at least at the consumer level. In this month’s cover story, longtime freelancer Mary Shacklett talked with Jenny Ahlen, director, supply chain, EDF+Business, about sustainability in the supply chain. One topic that came up was “circularity,” and Jenny cited Loop as a company that is piloting this concept. The easiest way to describe it is the “milkman” model. Customers shop for brand name products on Loop’s site (loopstore.com). The products are shipped in specially designed containers and delivered to customers’ homes in a Loop Tote. Once the product is used up,

the containers go back in the Loop Tote and are picked up from the customer and sent to a Loop facility where they are hygienically cleaned and ready to be re-used. Tropicana, Hellmann’s, Teva Deli, Nature’s Path Organic and Haagen-Dazs are some of the food/ beverage brands that are partnering with Loop. Grocers are getting in on the no plastic gig, too. Brooklyn’s Precycle grocery store claims to be the first store in New York selling package-free produce, bulk food and home goods. For bulk food, customers can either purchase a reusable container or bring their own. If they bring their own, Precycle will weigh the empty container first to determine it’s tare weight (just like an intermodal container), then deduct the tare weight from the total weight so customers are only charged for the actual weight of the bulk food. Brilliant. I’m proud to be associated with an industry that champions environmental stewardship and sustainability. From farmers and fishermen who have deep connections to the land and oceans, to those at the other end of the food supply chain who are working to eliminate food waste and keep food out of the landfill, and so many in between who are likewise supporting the sustainability cause—keep up the good work. Enjoy the read.

LARA L. SOWINSKI, EDITORIAL DIRECTOR LSOWINSKI@ACBUSINESSMEDIA.COM

DETAILS

Published by AC BUSINESS MEDIA 201 N. Main Street, Fort Atkinson, WI 53538 (800) 538-5544 • www.ACBusinessMedia.com

WWW.FOODLOGISTICS.COM PRINT AND DIGITAL STAFF Group Publisher Jolene Gulley Associate Publisher Judy Welp Editorial Director Lara L. Sowinski lsowinski@ACBusinessMedia.com Editor John R. Yuva jyuva@ACBusinessMedia.com Web Editor Mackenna Moralez mmoralez@ACBusinessMedia.com Contributing Editor Barry Hochfelder Senior Production Manager Cindy Rusch crusch@ACBusinessMedia.com Creative Director Kirsten Wiskus Audience Development Director Wendy Chady Audience Development Manager Angela Franks ADVERTISING SALES (800) 538-5544 Associate Publisher (East Coast) Judy Welp (480) 821-1093 jwelp@ACBusinessMedia.com Sales Manager (Midwest and West Coast) Carrie Konopacki (920) 542-1236 ckonopacki@ACBusinessMedia.com National Automotive Sales Tom Lutzke (630) 484-8040, tlutzke@ACBusinessMedia.com EDITORIAL ADVISORY BOARD Jaymie Forrest, President & CEO, Activ Technologies, Inc. John Haggerty, Vice President of Business Development, Burris Logistics Robert A. Norton, Ph.D., Professor of Veterinary Microbiology, Public Health and Biosecurity, Auburn University; Coordinator of National Security Initiatives, The Futures Laboratory Jon Shaw, Director of Sustainability and Global Marketing Communications, UTC Climate, Controls & Security Smitha G. Stansbury, Partner, FDA & Life Sciences Practice, King & Spalding CIRCULATION & SUBSCRIPTIONS P.O. Box 3605, Northbrook, IL 60065-3605 (877) 201-3915, Fax: (847)-291-4816 circ.FoodLogistics@omeda.com LIST RENTAL Jeff Moriarty, InfoGroup (518) 339-4511 jeff.moriarty@infogroup.com REPRINT SERVICES Carrie Konopacki (920) 542-1236 Fax: (920) 542-1133 ckonopacki@ACBusinessMedia.com AC BUSINESS MEDIA CEO Barry Lovette CFO JoAnn Breuchel Vice President, Sale & Marketing Amy Schwandt Editorial Director Greg Udelhofen Digital Operations Manager Nick Raether Digital Sales Manager Monique Terrazas Published and copyrighted 2019 by AC Business Media. 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

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

PACKAGING MATERIALS MAKE UP HALF OF PLASTIC WASTE

FOOD ROBOTICS MARKET TO HIT $3.1 BILLION BY 2025

Rytec

Plastic packaging made up 36 percent of all plastic production in 2015, according to a 2017 study by researchers at the University of California— Santa Barbara, University of Georgia and the Sea Education Association. However, a majority of plastic waste entering the waste stream derives from packaging. “Most of the packaging plastics leave use the same year they are produced, whereas construction plastics leaving use were produced decades earlier, when production quantities were much lower,” the study reads. Companies are now beginning to change traditional plastics that won’t work in existing recycling streams because of colors, labels, adhesives or additives. For example, Coca-Cola is aiming to have 100 percent of its packaging be recyclable by 2025, while Kroger has begun using reusable plastic containers for shipments.

RYTEC INTRODUCES RYTEC CONNECT REMOTE DOOR MONITORING AND MANAGEMENT

Rytec Corporation now allows real-time monitoring of its highspeed, high-performance doors. Using cloud-based technology, doors can be actively monitored by multiple users simultaneously for single or multiple doors and locations. In addition, doors can be opened or closed via test using a cellphone or online through the cloud. Featuring eight customizable inputs and outputs as well as live door cycle counting, reports can be quickly and efficiently generated. Companies can also receive maintenance and preventative alerts for doors installed throughout the country with the company’s real-time monitoring service calls.

A report from Meticulous Research predicts that the global food robotics market will hit $3.1 billion by 2025, growing at a CAGR of 12.7 percent between 2019 and 2025. Increasing food safety regulations, advanced food packaging, productivity improvements and investments in automated solutions are driving the number of robotics within the food industry. The report expects that articulating robots will be the most popular form of food robots as their speed and accuracy improves while prices drop. The Spoon reports that Europe is currently the biggest user of food robotics, followed by North America and Asia-Pacific. Although, significant growth is expected in the Asia-Pacific region as investment in automation and food safety is growing.

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TRANSFLO MOBILE+ UPGRADE HELPS USERS PREVENT THE SPREAD OF THE SPOTTED LANTERNFLY

Transflo will begin offering a premium feature on its Transflo Mobile+ app that helps truckers and fleets prevent the spread of spotted lanternfly and comply with the latest Pennsylvania Department of Agriculture quarantine orders. Fleets can contact Transflo to have the main menu of their Transflo Mobile+ app upgraded to include a “Spotted Lanternfly” button. The feature provides access to current regulations, photos of the bug and a one-touch reporting to agricultural authorities. In addition, it will also direct users to information about the training and certification process that all businesses must undergo to move goods to, from or within a spotted lanternfly quarantine zone. “This is an example of how Transflo Mobile+ can help drivers and fleets comply with the latest regulations while responding to an urgent need in the agricultural community,” says Frank Adelman, CEO and president of Transflo. “We can deliver valuable operational and safety workflows while leveraging the industry’s most widely used enterprise mobility and workday management platform.”

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“The hav loa


- Joe Neal Heniff Transportation

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Never stop evolving. It’s time to future-proof logistics. For more than 20 years, the companies of Trimble Transportation have been helping companies across the country stay ahead of the technology curve. Now PeopleNet, 10-4 and TMW are evolving together under one purpose: To make the movement of freight and goods all throughout the supply chain safer and more efficient than ever before. Take it from all of our real customers. To maximize the performance of your business – you should never stop evolving. And with Trimble, you never will.

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“There are over 300 things that have to happen perfectly for a load to get from point A to point B.”

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See how we are helping our customers evolve at transportation.trimble.com/evolve.

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FOOD ON THE MOVE

LOGISTICS TRENDS IN OUR INDUSTRY

BURGER KING PLANS TO DELIVER TO CUSTOMERS STUCK IN TRAFFIC Burger King is betting some customers stuck in traffic will be willing to get food delivered directly to their vehicle while in a jam. The concept, known as “The Traffic Jam Whopper,” can be utilized with an app developed by the chain and will allow drivers to order food directly to their car, where it is then delivered via motorcycle. The initiative is being rolled out in Mexico City following a one-month pilot program. “People spend up to 5 hours in their daily commute—meaning they are not in their houses or offices to order delivery. This was an opportunity for Burger King to generate new revenue out of those hungry drivers. In fact, The Traffic Jam Whopper increased deliveries by 63 percent during the month of April in participating restaurants,” Gustavo Lauria, co-founder of the advertising agency We Believers, which developed the vehicle delivery, tells the Press Herald. To make the Traffic Jam delivery process possible, Burger King’s Mexico app activates the service after identifying congested areas in Mexico City during periods of high traffic, says the Press Herald. The app will only accept orders if it determines that the driver will be locked in traffic for no more than 30 minutes and are within a 1.8-mile radius of a Burger King restaurant.

NESTLE PARTS WAYS WITH DELIVERING FROZEN FOODS, CUTS 4,000 JOBS Nestle is moving away from its direct-store delivery of frozen pizza and ice cream, cutting 4,000 jobs in the U.S. Instead, the company will switch to a network of warehouses that it already uses for other frozen products. The new model will reportedly make operations more efficient and profitable. However, it will be forced to shut eight company-owned frozen distribution centers and frozen inventory transfer points, impacting sales of about $450 million. “This is massive...in terms of the value it can translate into,” Chief Executive Officer Mark Schneider said.

SAP AND UBER FREIGHT PARTNER TO DELIVER ON-DEMAND LOGISTICS SAP and Uber Freight are partnering together to modernize the freight industry through intelligent process automation and better access to a network of connected and reliable drivers. “Finding and booking freight can be the most expensive and often the most complex piece of the supply chain,” says Hala Zeine, president, SAP Digital Supply Chain. “This combined solution will remove roadblocks and offers a simpler, more automated approach that streamlines operations, delivers tangible cost savings and ultimately creates a better customer experience. Adding Uber Freight to our SAP Logistics Business Network will help our customers optimize their logistics and put their customers at the heart of their digital supply chain.” With the partnership, the companies will work to connect both sides of the freight marketplace, increasing visibility and transparency for all players, helping enable faster decision-making based on real-time pricing for shippers and carriers, and empowering organizations to maximize daily work time and more informed decisions about their operations.

DAT SOLUTIONS’ MONTHLY FREIGHT REPORT

Like Farmers, Reefer Haulers Wait for Better Days By Mark Montague Mark Montague is senior industry pricing 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. Mark is based in Portland, Oregon.

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Two trends have driven the spot truckload freight market this year: strong volumes and abundant capacity.

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The number of van loads increased 2.4 percent in April compared to the same period last year, and dry-van freight has been plentiful into May. And unlike last April, when enforcement of the ELD mandate took effect and capacity momentarily fled from the market, there’s been no shortage of available trucks this year. As a result, it’s been a shipper’s spot market: national average van rates have fallen from $1.95 per mile in January to around $1.80 at the start of May. Spot reefer rates have slipped as well, from $2.31 per mile in January to $2.15 per mile in May. But freight volumes? Like everyone else, reefer haulers are still waiting.

Delays in spring produce have led to a decline in available reefer freight, with volumes down 11 percent in April compared to March. On a year-overyear basis, reefer volume decreased 2.9 percent in April and the average spot rate was down by 28 cents per mile. While lanes out of California and Florida have predictably seen a rise in traffic and produced stronger rates for truckers, reefer volumes are down throughout the Midwest, where the recovery from disastrous weather continues. May is usually the start of a busy time for reefer carriers. Right now, it’s hard to know what to expect.

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OD EXPEDITED DOES THE REST Old Dominion offers a full range of expedited services to meet your growing delivery challenges. With a 99+% on-time rate and #1 ranking for damage-free deliveries,* OD helps you ship with confidence—even when faced with rush shipments, tightening delivery windows or day and timespecific requests. Plus, our seasoned, proactive team provides 24/7 monitoring of your shipment.

Old Dominion Freight Line, the Old Dominion logo and Helping The World Keep Promises are registered service marks of Old Dominion Freight Line, Inc. ©2019 Old Dominion Freight Line, Inc. Major League Baseball trademarks and copyrights are used with the permission of Major League Baseball Properties. Visit MLB.com.

For more information, visit odfl.com or call 1-866-637-7333.

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*Source: 2018 Mastio & Co. National LTL Carrier Report

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COOL INSIGHTS

BY JESSIE VANDERVEEN

DIGITIZING

THE END-TO-END COLD CHAIN THROUGH

T VA N D E RV E E N

he food supply chain has never been more complex than it is today. With increasing food safety recalls and ingredients being sourced from afar, connecting and protecting the cold chain to identify and mitigate risk, reduce food waste, increase supply chain efficiency and protect the end consumer will be vital moving forward. Yet, there are lingering misconceptions about the current state of cold chain visibility technology.

A Single Source of Truth Isn’t Possible Today

Jessie VanderVeen, JD, is VP Marketing & Communications at Controlant, a developer of digital IoT cold chain solutions that provide farm-to-fork visibility, enabling food businesses to proactively protect consumer safety and their brand.

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Over the last few years, there has been increased interest over the future of traceability, collaboration and trust in the food supply chain. Discussions often pertain to blockchain adoption. While blockchain technology poses many potential benefits, the integrity of a blockchain is only as good as the data going into it. Creating industry-wide standards will help drive blockchain adoption. Internet of Things (IoT) solutions that remain with products as they travel and contain sensors that can measure a variety of data points--temperature, humidity, and light events--already provide the ability to automatically and securely collect and share data centrally via a cloud software platform. Businesses and their logistics partners can monitor, manage and measure shipments in real-time as products move through the supply chain and while in storage. The data can be viewed for a single shipment or

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Controlant

REAL-TIME TECHNOLOGY

 Controlant’s IoT hardware and intelligent cloud platform provide live temperature, time, and location data.

the entire supply chain and shared with relevant stakeholders. Real-time alerts can help facilitate corrective action, reduce food waste and ensure consistent product quality. Analytics can help automate root cause investigations, shed light on unknown issues and drive continuous improvement. Through data, weak spots are illuminated, enabling stakeholders to focus efforts on what matters most.

Cold Chain Technology Is Cost-Prohibitive A common misconception is that today’s technology is expensive, and therefore, can only be used for projects or limited to a part of the cold chain. Traditionally, the addition of single-use IoT devices to a shipment allows for tracking of temperature conditions throughout a single shipment. At the end of a journey, data is manually retrieved from the logger. Often blind spots in the supply chain occur, as it isn’t possible to connect temperature, time, and location data to determine what happened, where

it happened, why it happened, and who was responsible. If a temperature excursion occurred, it is often too late to save the product load. At worst, a quality issue may not be known at all. Today, it is easy and cost-effective to adopt an end-to-end digital visibility solution. Rather than purchasing and managing an IoT device pool, services-based partnership models exist that include subscription-based access to IoT and software technology. Businesses can outsource their IoT device management, and teams can respond to real-time alerts, dig into the shipment notification data and facilitate a corrective response if needed.

Getting Started with the Right Technology To get started with the right solution, there are several consideratioins to ensure that your technology partner can help achieve a company’s business goals and support the food safety culture. 1. Get key stakeholders on board from the beginning to help derive the most value from a technology program. 2. Start with a strategic part of the supply chain. This might include a problem lane where visibility limitations have existed. 3. Determine the root cause of temperature deviations. Assess the value from the data to make it easier to extend a program to additional lanes. With the FDA placing a greater emphasis on the importance of connecting food supply chain stakeholders to ensure public safety through shared data, technology will play a mission-critical role moving forward.

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COVER STORY

BY MARY SHACKLETT

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SUSTAINABILITY TRENDS IN THE FOOD SUPPLY CHAIN T

Mary Shacklett is the president of Transworld Data, a technology analytics, market research and consulting firm. Prior to founding the company, she was vice president of product research and software development at Summit Information Systems.

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he definition of “sustainable” carries heightened significance today as forests get deforested, soils get depleted, fresh water supplies diminish and climate change adversely impacts the food supply chain. Nearly 20 years ago, the U.K. Sustainable Development Commission listed several goals for sustainable food supply chains. They included: 1. Produce safe, healthy products in response to market demands and ensure that all consumers have access to nutritious food and to accurate information about food products. 2. Support the viability and diversity of rural and urban economies and communities. 3. Enable viable livelihoods to be made from sustainable land management, both through the market and through payments for public benefits. 4. Respect and operate within the biological limits of natural resources (especially soil, water and biodiversity). 5. Achieve consistently high standards of environmental performance by reducing energy consumption, minimizing resource inputs and using renewable energy wherever possible. 6. Ensure a safe and hygienic working environment and high social welfare and training for all employees involved in the food chain. 7. Achieve consistently high standards of animal health and welfare. 8. Sustain the resource available for growing food and supplying other public benefits over time,

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except where alternative land uses are essential to meet other needs of society. Of course, that was then; and now is now. What’s happening with food supply chain sustainability in 2019 and what sustainability trends are gaining traction?

Market Pressures and Climate Change Realities It’s a combination of new market pressures and harsh climate change realities. “At this point, no one, especially companies and their global supply chains, is immune to the effects and devastation of climate change,” said Jenny Ahlen, director, supply chain, EDF+Business. “Severe storms, flooding and wildfires all threaten to

disrupt companies’ operations and growth. The latest science from the Intergovernmental Panel on Climate Change (IPCC), shows that companies need to focus on resilience, or risk significant financial losses. Not to mention, numerous studies prove that customers, investors and employees care about how companies act on environmental sustainability.” In the food and beverage industry, this translates into environmental responsibility initiatives, and into responses to an increasingly environment-conscious consumer market. “Consumer demands for sustainable, universally responsible foods and drinks are coming from a

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Circularity has finally hit the mainstream.” Jenny Ahlen, director, supply chain, EDF+Business

Loop

The MerriamWebster Dictionary defines “sustainable” as “of, relating to, or being a method of harvesting or using a resource so that the resource is not depleted or permanently damaged.”

Loop follows the “milkman” model and eliminates packaging and waste by delivering brand name products to consumers in reusable containers that can be picked up, refilled and returned to the consumer.

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rapidly growing millennial market segment,” said Kevin Warner, manager, sustainable agriculture at SCS Global Services, which certifies and develops standards for environmental, sustainability, food safety and quality performance claims. Warner says millennials want food and drinks they can trust. To meet these consumer requirements, larger food and beverage companies are focusing on removing food supply chain risks by improving supply chain visibility and transparency, and identifying and mitigating environmental impacts. “There is also an awareness in companies that a single smartphone 10-second video produced by a private citizen can destroy your corporate image when the word gets out,” said Wanter. “With today’s social media, many large food and beverage companies concede that it is cheaper to do the ‘right thing’ in the first place.”

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Sustainability Trends That are Taking Shape Given the situation, what major sustainability trends are taking shape in food supply chains now? Circularity is one emerging trend. It defines a process where food and beverage products and by-product waste have never-ending life cycles, because they are continuously recycled into new materials that consumers use in an effort to reduce or eliminate waste altogether. “Circularity has finally hit the mainstream,” said Ahlen. “Companies are starting to test ways for designing and manufacturing products and materials that have continuous life cycles. Accenture reported that the circular economy holds $4.5 trillion in business opportunity, so companies are looking at how to tap into it. Loop is an example of this, as it’s a pilot system to test reusable packaging for everyday items and certain food and beverage products.” Loop’s mission is to provide a “circular shopping platform that transforms the packaging of your everyday essentials from single-use disposable to durable, fea-

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VERITABLE VEGETABLE DEMONSTRATES SUSTAINABILITY THROUGH ACTION By Nicole Mason San Francisco-based Veritable Vegetable (VV), a women-led business in operation since 1974 and the oldest organic produce distribution company in the country, is a testament to its unique business model: a deep commitment to sustainability, and a ton of determination. Committed to operating on a set of core values, Veritable Vegetable takes a radically different approach to almost everything it does. VV was founded in the early 1970s to help create an alternative to the existing food system—one that gave organic farmers access to a rewarding marketplace, and customers the knowledge of where their food came from. Its commitment to the environment was baked into the company’s DNA from the onset, as was its deep belief in social equity and systems change. Though VV has grown and evolved in its 45 years of existence, the company’s commitment to sustainability has not wavered. From the company’s award-winning near-zero emission fleet of trucks, to its ability to landfill only 1 percent of the waste it produces, to its impressive 560-panel solar array offsetting over a quarter of the company’s energy, its environmental focus runs deep. The company is committed to serving its community too, by starting its staff at 25 percent above Bay Area living wage, paying its farmers fairly, offering training to women for positions traditionally held by men, maintaining a 4:1 pay ratio between CEO and entry-level workers, and providing overthe-top benefits like weekly in-house massages, boot reimbursements and Cadillac health insurance. There aren’t too many companies that can honestly demonstrate their ability to make their core values come to life. Next time you find yourself in San Francisco, don’t forget to stop by for a tour if you really want to see sustainability in action. Mason is director of community engagement for Veritable Vegetable.

ture-packed designs.” The process is intended to reduce or eliminate adverse environmental impact. Warner also sees a more holistic approach to sustainability that is now being addressed by companies as a whole—and not just by their market-

ing departments and their messaging. “Throughout their operations, companies are beginning to implement metrics and use data for operational sustainability,” said Warner. “They aren’t just trying to implement new technologies ‘in

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COVER STORY

continued

sustainability performance metrics, compared with just 8 percent of all companies.

business.edf.org

Challenges in the Nascent Sustainability Field

The Produce, Conserve, Include (PCI) strategy aims to eliminate deforestation caused by agriculture.

search of a problem.’ Rather, the goal is to marshal the data that they have under management into meaningful measures of key business indicators that can provide tangible improvements from sustainability efforts in their operations.” There is evidence that this transformation is occurring in the food and beverage industry. In a 2018 survey, Ceres, a non-profit organization focused on sustainability, examined how more than 600 of the largest publicly traded U.S. companies were responding to environmental risks, human rights abuses and other threats falling under the umbrella of sustainability. It found that 90 percent of the food and beverage comCraft breweries... have panies in its analysis held made sustainability part of senior-level executives accountable for sustheir brand promise.” tainability performance, Kevin Warner, manager, sustainable agriculture at SCS Global Services whereas the average for all industry sectors was 65 percent. Forty-three percent of food and beverage companies also linked executive compensation to

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Nevertheless, there are still challenges. “Often just getting started is the challenge for companies,” said Ahlen. “We recommend thinking about the ‘low-hanging fruit’—sustainability projects in your company that will show easy wins in packaging, waste or energy operations. This can help whet the appetite internally for future projects with the highest impact, which for food and agriculture companies, is usually in their supply chains. However, while they work the easier tasks, companies shouldn’t wait to start mapping out and understanding their impact.” This advice is straightforward and makes sense—but there are still complicating factors that companies must consider. “One of these factors is that sustainability is still a nascent field, so for some food and beverage companies, the cost of doing sustainability initiatives can be an issue,” said Warner. “Sustainability is also not highly regulated at this point, which makes it voluntary. At the same time, the same consumers who are pressing for more environmentally sustainable foods and who believe that farmers should have a decent life, expect to buy bananas at 18 cents.” Warner says that every industry sector has its “good and bad” sustainability players, and cites the craft brewing industry as one food and beverage segment that is doing exceptionally well in sustainability. “Craft breweries have pushed the sustainability envelope and have made sustainability part of their brand promise,” he said. “This has also pushed larger brewers into the sustainability movement because the consumer expectations for sustainability are high.” Ahlen added, “One area we’re

seeing significant interest in, both from media and companies, is on curbing deforestation from soy, cattle and agriculture in Brazil. An initiative we’re involved with there, called Produce, Conserve and Include (PCI) is working in what’s called a ‘jurisdictional approach’ that involves local governments, communities and producers to avoid six gigatons of GHGs (greenhouse gas emissions) by 2030 in Mato Grosso, Brazil. Recently, PCI launched a new tool called the PCI Pitchbook that gives companies a menu of 11 local projects they can engage in with activities such as financial contributions, technical support or sourcing commitments. “We’re also seeing animal agriculture companies such as Smithfield Foods and Tyson Foods step up. Smithfield is the world’s largest hog producer and has put sustainability at the heart of their business. In 2013, the company committed to work with grain farmers in its supply chain to adopt farming practices that would optimize fertilizer and build soil health on 75 percent of the area from which Smithfield directly sources grain—about 450,000 acres. To figure out how to reach this goal, EDF partnered with Smithfield. Smithfield announced earlier this year that it exceeded that goal, improving practices on 560,000 acres in 2018.”

Sustainability Best Practices For companies wishing to improve sustainability in their food and beverage supply chains, what three or four best practices are recommended? “Understand your supply chain impacts; set a public goal; create incentives for employees, suppliers and customers to engage on sustainability; and report progress publically,” said Ahlen. “EDF recently launched the Supply Chain Solutions Center that can help professionals at any part of this journey. We like to call it the ‘Spotify for supply chains’ because it connects companies with resources such as

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EDF+Business offers various supply chain sustainability resources at supplychain.edf.org/resource-library/

templates for writing a sustainability plan and measuring progress. We have a step-by-step guide for companies just getting started on sustainable agriculture.” In addition, “Take a systems-based approach,” said Warner. “Assess the income generating and cost reducing parts of your organization where sustainability efforts can have the most impact. This should not be limited to marketing, and the results of your efforts should be tangible and measurable. Also, respond to the consumer trends that are endorsing sustainability. Organic foods and beverages are thriving in consumer markets. This has prompted large food and beverage companies such as Walmart to transform their brands. Today, Walmart is one of the leading sellers of organics.

Supply Chain Solutions Center

Finally, avoid the practice of “greenwashing” where a company tries to “spin” a story that it is embracing sustainability but really isn’t. “Being a sustainability company is going mainstream, and sustainability just makes sense for food and beverage companies,” said Warner. “It’s not enough to just ‘talk the talk.’ Consumers want sustainable products and they are concerned about climate change. For food and beverage companies, this means creating tiny pockets of internal innovation for sustainability within their operations and ‘walking the talk.’” “All companies can be an environmental leader by committing to ambitious corporate sustainability, collaborating for scale, advocating for smart environmental policy and

accelerating environmental innovation,” added Ahlen. “Companies shouldn’t wait to get started with sustainability because customers, investors and Companies employees all care deeply about this. shouldn’t wait to get For example, a started with sustainability Nielsen study found because customers, investors that while overall and employees all care coffee sales growth deeply about this.” fell 1 percent beKevin Warner, manager, sustainable agriculture at SCS Global Services tween March 2017 and March 2018, coffee products with environmental and fair trade claims experienced double-digit dollar sales growth for the same period. These claims included recyclable packaging, less plastic waste, ethical sourcing and eco-friendly labeling.”

Sustainability Promise.

At Alliance Shippers Inc., we continuously work towards providing cleaner and more energy-efficient transportation services and solutions. Our 2019 Top Green Provider award underscores our steadfast commitment to a greener environment. To find out more: www.alliance.com

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2017 EXCELLENCE AWARD WINNER

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FOOD LOGISTICS TOP GREEN PROVIDERS 2019

BY EDITORIAL TEAM

FOOD LOGISTICS TOP GREEN PROVIDERS 2019

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ustainability is on every company’s mind as consumers are wanting to know where their products are coming from and if they’re ethically sourced. Studies have shown that consumers will become loyal to companies that have a good global conscience. In the food and beverage industry, having a green initiative is seen as a must-have in order to reduce the global food supply chain’s carbon footprint. Food Logistics’ annual Top Green Providers list showcases companies that have found new ways to promote sustainability throughout their operations and for their customers. This year’s list consists of 3PLs, technology companies, transportation providers, cold storage providers and many more that have upped their game to become leaders in the sustainable global food supply chain.

Alliance Shippers Inc. www.alliance.com Alliance Shippers is committed to reduce negative impacts on the environment by continuing to lower its carbon footprint and adding new sustainable refrigeration units to its fleets. The company’s refrigerated trailers are equipped with two-way cellular tracking devices, drawing power from a battery source within its refrigeration units. This allows Alliance to always have a GPS location on its assets, as well as the ability to turn the refrigeration unit on and off at any time. Meanwhile, investments in solar panels allow it to use the sun’s energy to continuously charge batteries on its trailers, lower fuel consumption and reduce emissions to benefit customers and the planet.

Avenger Logistics LLC www.avengerlogistics.com Avenger Logistics has the unique opportunity to select the carriers it uses

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to haul customers’ freight as a SmartWay Transport Partner. The company has a directive to utilize a sysThe software tem that weighs whether platform also or not a carrier is a memprevents product ber of SmartWay and give waste and drives customers and dispatchers operational imthe autonomy of choosing PROVIDERS provements over time which companies are the most as businesses connect responsible choice for the company. time, temperature and product Avenger Logistics is committed to not let location for all shipments. drivers travel more than 100 miles to their next shipment.

2019 TOP

CT Logistics

www.cassinfo.com Cass Information Systems provides solutions through the utilization of technology to obtain cost and processing efficiencies for its customers. These solutions help customers meet green supply chain goals and accelerate the amount of electronic interchange among its customers, their freight carriers and Cass, resulting in reduction of paper transactions. For the limited paper transactions that do occur, Cass images all documents and has them available to view online. With all information available electronically, the need for files, storage and document transfers are eliminated.

www.ctlogistics.com CT Logistics has invested in software development the last two years to provide shippers with the tools to make greener choices in their supply chain every day. The company developed its FreitRater Lion software to help shippers drive energy efficiency with routing analysis technologies. Built for shippers to maximize lane effectiveness and facilitate customer experience, the software offers optimal/ greener transportation mode selections for shipping. The software also enables shippers to choose environmentally conscious routings, mode selections and carriers with the shortest transit times to reduce fuel consumption and lower CO2 emissions.

Controlant

DSC Logistics

Cass Information Systems Inc.

www.controlant.com Controlant provides proactive farmto-fork supply chain visibility for the cold chain. The company is proactive about waste prevention and helps drive sustainable initiatives for its customers. The company’s IoT data loggers track a product’s temperature and location in real time as it moves throughout the supply chain. Data is automatically sent to a cloud-enabled software platform, allowing food enterprises to manage and monitor every shipment.

www.dsclogistics.com DSC Logistics is committed to its sustainability goals. The company aims to eliminate waste and cost in its supply chain and has programs in place to reduce emissions, consolidate shipping and redesign its network to better place distribution centers and optimize transportation routes. In addition, the company is reducing utility metrics (electricity and water) across all locations by 8 percent year over year. In 2018, DSC achieved an 11.6-percent reduction in carbon emissions. www.foodlogistics.com

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FGI Universal LLC www.fgiuniversal.com FGI Universal strongly relies on the world’s oceans, believing it is the company’s duty to protect bodies of water—especially because it does so much for us in return. For every order placed with FGI, a portion of the proceeds go toward cleaning the oceans. In addition, FGI’s contribution to environmental advocacy groups has more than tripled in the last year and has been recognized by the Ocean Conservancy as one of its Champions for Sea Change. Just this year the company has made a goal to remove over 100 pounds of plastic per month from the oceans and continue to provide financial support with environmental advocacy groups as well.

FST Logistics www.fstlogistics.com FST Logistics is focused on reducing emissions and increasing fuel efficiency transporting its clients’ products. With

30 new trailers, 10 CNG and 9 dual fuel trucks, the company continues to grow its participation in programs such as SmartWay, Green Power Partnerships and Green Spot Columbus. By being a part of these programs, FST must submit information and measurement data proving its impact on sustainability. The company purchased 60-percent wind power in Renewable Energy Credits and has reduced its use of water, electricity and transportation as well. FST partners with clients on green initiatives and sustainability efforts, believing these multi-approach initiatives bolster efforts within the industry on a local, national and global scale.

Jarrett Logistics Systems www.jarrettlogistics.com For the last two years, Jarrett has participated in a paperless initiative. By the end of 2018, 90 percent of all incoming invoices were submitted electronically. Over 355,000 invoices have been digitized over

the last two years, with an expectation that over 225,000 invoices will be incoming electronically just this year. The Paperless Initiative is integrated in the carrier on-boarding process. Currently, 26 of 33 carriers utilized are part of the sustainability program, empowering Jarrett to identify accurate billing information at a faster clip for food and beverage clients.

Kane Is Able www.kaneisable.com Kane Is Able is devoted to reducing pollution and congestion with smarter trucks and delivery methods. The company is part of several sustainable groups, helping them contribute to their green mission. In 2018, the MHE fleet was equipped with Crown’s InfoLink operator and fleet management system to help the company better understand when, where and how each forklift was being used. Additionally, reuse is essential to KANE as no material is wasted if it has potential for recycling.

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• •

3

Avenger Logistics LLC

4

BT9

5

Cass Information Systems Inc.

6

CHEP

7

Controlant

8

Cooltrax

9

Crown Equipment Corporation

10

CT Logistics

11

DeliveryCircle

12

DSC Logistics

13

East Coast Warehouse & Distribution

14

Echo Global Logistics

17

Emerson Cargo Solutions

enVista LLC

21

Fetch Logistics Inc.

22

FGI Universal LLC

• • •

23

Fleet Advantage

24

FST Logistics

25

Hub Group

26

Ioxus Inc.

27

Jarrett Logistics Systems

28

Kane Is Able

29

Knichel Logistics

30

Lightning Technologies

31

Lineage Logistics

32

LoadDelivered Logistics

33

Macro Plastics

34

made4net

35

Matson Logistics

• •

• • •

• • • •

MDG Connected Solutions Murphy Logistics Solutions (formerly known as Murphy Warehouse Company)

38

Natures Natural Solutions LLC

39

Neogrid

40

NewCold Advanced Cold Logistics

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Cold Chain Temperature Monitoring

Elite Transit Solutions

England Logistics

Elemica

Ends+Stems

15

18

16

19

Other

Water, Raw Materials

Transportation Equipment (trailers, tires, shipping containers)

Transportation Provider (ocean, air, road, rail)

3PL

Reclamation & Recycling Programs

Pallets, Packages & Containers

Lighting

Lift Trucks & Related Equipment

Facility Design

Software & Technology

A. Duie Pyle Alliance Shippers Inc.

Refrigeration

1 2

Material Handling Systems

PROVIDERS

Alternative Fuels & Energy

2019 TOP

Li

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Lightning Technologies www.lightningtechnologies.com As one of the most sustainable companies in the pallet world, Lightning Technologies’ new GMA pallet can be sanitized, pooled and embedded with an IoT BLE sensor that provides track and trace opportunities, humidity and g-force data through a Gateway to a Lightning-managed cloud. The solution helps reduce waste, operational costs and provides a measurable reduction in Scope 3 carbon reductions as the pallet is lighter than current pooled pallets. In addition, the pallet qualifies under an existing VERRA carbon methodology for the transportation of lightweight pallets.

Matson Logistics www.matsonlogistics.com To put it simply: Matson Logistics’ assets, systems and processes help reduce the carbon and environmental impact of its customers’ supply chains. Preserving the environment and the health of communities is a core value for Matson as it continues to be the only container vessel operator with a zero-waste discharge

policy. The company’s Savannah Logistics Warehouse is LEED certified, and soon all its warehouses will use LED lighting. In addition, several facilities use “passive night air” cooling systems to reduce the use of electric chillers and HVAC. Matson has also been EPA SmartWay certified since 2008 and a Top Transport Partner since 2013.

Murphy Logistics www.murphywarehouse.com Murphy Logistics’ sustainability initiatives are models for the logistics industry as it embraces green practices throughout its 3.2 million-square-foot warehouse. The campuses are populated with solar-paneled roofs and have energy-efficient LED lighting, earning it LEED Gold and Energy Star certifications. In addition, the company’s sustainability initiatives also include energy savings and power generation, carbon sequestration, pollution abatement, recycling and resource management.

NSF International www.nsf.org To support sustainability within the food and agriculture industry, NSF works with

companies to improve social and environmental impacts. The company has focused on supporting regenerative agriculture practices across the food industry this year. With Regenerative Organic Alliance, NSF has developed and launched a certification program, serving as a Design Team Partner on the development of the Soil Carbon Initiative. Along with that, NSF demonstrates its commitment to sustainability by upholding numerous eco-friendly practices such as undergoing regular water quality assessments, regular recycling programs and has its own sustainability committee that focuses on employee education.

Odyssey Logistics & Technology www.odysseylogistics.com For Odyssey Logistics & Technology, choosing an intermodal tank made both economic and environmental sense as they have been proven to be a leading eco-friendly form of transportation. The tanks are stackable and reusable, resulting in a more sustainable and greener form of transportation. In addition, the company’s flexitank services helps customers reduce

Real-time farm to fork cold chain visibility Partnering to protect your customers and your brand.

Temperature monitoring

Product movement traceability

Learn more or try a pilot. contact@controlant.com — controlant.com

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24/7 monitoring and response

Analytics and insights

Follow us @controlant on Twitter

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NFI

43

NSF International

44

Nuovo Group Inc.

45

Odyssey Logistics & Technology

46

ORBIS Corporation

47

PARAGON SOFTWARE SYSTEMS

48

Penske Logistics LLC

• • •

• •

PINNACLE TRUCKING

51

Plug Power

52

Prudential Overall Supply

53

ReedTMS Logistics

54

RLS Logistics

55

Romark Logistics

56

Ruan

Schneider •

59

The Raymond Corporation

60

Tiger Cool Express LLC

61

Titan Farms

• • •

• •

64

TraceGains

65

Transportation | Warehouse Optimization

66

Transportation Insight

67

Trimble Transportation

68

Trinity Logistics

69

Triple T Transport

70

UNEX Manufacturing

76

Weber Logistics

77

Werner/Werner Logistics

78

Westfalia Technologies Inc.

79

WSI

80

Zest Labs

81

Zipline Logsitics

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Tosca

Viking Cold Solutions

Inte

Total Distribution Inc.

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62

VersaCold Logistics Services

63

Veritable Vegetable

• •

• •

• •

• •

• •

Waste Diversion

• •

• •

• •

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Ha co red

States Logistics Services

74

Lead Logistics Provider

57

73

58

United Natural Foods

PINC

VAI

Other

• •

49

71

• •

50

72

Water, Raw Materials

3PL

Software & Technology

Refrigeration

Reclamation & Recycling Programs

Pallets, Packages & Containers

Lighting

Lift Trucks & Related Equipment

Facility Design

Transportation Equipment (trailers, tires, shipping containers)

Newport-St. Paul Cold Storage Co.

42

Transportation Provider (ocean, air, road, rail)

41

Material Handling Systems

PROVIDERS

Alternative Fuels & Energy

2019 TOP

• • • •

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FOOD LOGISTICS TOP GREEN PROVIDERS 2019 continued their carbon footprint through one-way transportation. After discharge, there is no need for cleaning of the equipment or empty back-haul transit as it is simply recycled.

ORBIS Corporation www.orbiscorporation.com As a leading reusable packaging manufacturer, ORBIS Corporation can bring significant financial and operational benefits to supply chains across several industries. The company offers a large portfolio of products that can improve production flow, reduce costs, enhance food safety and increase sustainability. ORBIS provides alternatives to the disposal of excess, surplus, damaged or obsolete plastic packaging. Just last year, more than 40 percent of the resin ORBIS used to manufacture product was made from recycled content. In addition, ORBIS started a Recycle with ORBIS program designed to recover, recycle and reprocess plastic material into other useful products. At least 33 percent of ORBIS’ recycled content is from recovered packaging.

Penske Logistics LLC www.penskelogistics.com Penske helps its customers enhance their sustainability by using technology and its warehouse management system (WMS). The WMS provides efficient movement of goods through the supply chain, saving time, fuel and energy. The WMS guides workers through the warehouse, enabling them to complete multiple tasks simultaneously. In addition, the WMS and the labor management software provide visibility to all tasks within the warehouse so they can be prioritized. This kind of visibility promotes greater accuracy of shipments and facilitates better use of space and personnel. Penske also implements numerous internal initiatives to be more sustainable, such as performing annual GHG emissions information and energy usage/reduction efforts for the Carbon Disclosure Project, conducting energy audits and analysis to identify opportunities to save money, and reduce its carbon footprint and more.

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Plug Power www.plugpower.com By developing zero-emission hydrogen fuel cell (HFC) power solutions, Plug Power is able to provide affordable, sustainable and efficient power that food logistics customers use in their electric lift truck fleet. Just this year, HFC solutions are expected to expand into global markets, bringing improved productivity to warehouse operations. HFCs enable Plug Power customers to reach new heights in facility productivity with affordable, efficient and clean hydrogen and fuel cell power.

RLS Logistics www.rlslogistics.com By using solar power to generate its cold storage facilities, RLS Logistics is 100-percent sustainable in power generation. Its newest facility in Delanco, New Jersey, utilizes CO2 refrigeration, eliminating the need for freon and ammonia, which have negative effects on the environment. The company has also invested in several green initiatives that not only support the environment, but also save clients’ money.

Romark Logistics www.romarklogistics.com As a pioneer in supply chain, Romark Logistics prides itself as a leader in the establishment of warehousing sustainability. The company considers “green” to be a core commitment that benefits its employees, customers and the communities it serves, while striving to exceed the expectations of the food and beverage industry. Romark is committed to continually decreasing its carbon footprint in all aspects of business and is looking to utilize cutting-edge technologies to achieve this goal. The company currently operates in the high 90 percentile for landfill free/landfill avoidance, aiming to have all locations as landfill- and carbon-free facilities.

Tiger Cool Express LLC www.tigercoolexpress.com With a growing temperature control container fleet, Tiger Cool Express has the capacity to provide reliable intermodal service across the world’s premier freight network. The company is committed to providing time definite intermodal services and offers sustainable capacity in key markets,

superior fuel efficiency versus over-theroad trucking, and product integrity. Tiger Cool Express believes that being green means having smarter logistics. With its fuel-efficient 120-gallon diesel tanks and fuel monitoring, the company can significantly reduce its carbon footprint by going intermodal. It is compliant with environmental guidelines and regulations, participating in several sustainability groups.

Trimble Transportation www.trimble.com With 29 percent of greenhouse gas coming from transportation, Trimble’s vision is to provide the food and beverage supply chain with technology to help create smarter, greener and more sustainable decisions. Through the company’s technology, transportation organizations can save fuel, time and money, eliminating safety risks and improving the bottom line through better route management and vehicle performance.

Veritable Vegetable www.veritablevegetable.com As the nation’s oldest organic produce distributor, Veritable Vegetable ensures that its environmental efforts are far reaching and include reducing waste from landfills. The company recycles, composts and reclaims nearly all used materials and has a 560-panel solar array. All lighting fixtures are sensored and energy efficient. Meanwhile, sustainable materials and non-toxic cleaning supplies and paints are used throughout the facility as well. The company’s near-zero emission fleet incorporates hybrid trucks and refrigeration units as well.

Viking Cold Solutions www.vikingcold.com Cold storage facilities require the highest energy demand per cubic foot of any industrial electricity load, leaving high costs across the industry. Viking Cold Solutions’ thermal energy storage (TES) systems increase efficiency of refrigeration by an average of 26 percent and provide the ability to avoid peak energy periods for up to 13 hours per day. The technology allows the cold chain to cut energy costs, improve temperature stability and food protection, reach sustainability goals substantially faster and dramatically lower the industry’s carbon footprint. www.foodlogistics.com

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6/4/19 8:57 AM


THIRD-PARTY & REFRIGERATED LOGISTICS

BY JOHN MCCURRY

NIMBLE

DEFINES HIGH-END LOGISTICS F Specialty logistics requires a unique understanding of customer requirements and changing variables.

Weber Logistics operates 12 highvelocity warehouses, most in the L.A. area, serving customers such as Haribo, the gummi bear company, Godiva, Hershey’s and Nestle.

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irst-class airline passengers likely have no inkling as to the extent of the behindthe-scenes logistics expertise that goes into delivery of their on-board gourmet meals. The effort is considerable. U.S. West Coast third-party logistics provider Weber Logistics is a specialist in this area, delivering food to a major airline, ranging from filet mignon and lobsters to Godiva chocolate squares to wine and beer. Weber, based in Santa Fe Springs, California, serves the airline at a dozen western U.S. airports, including Hawaii. And because of its location in the Pacific time zone, is on standby to service the airline nationally on a contingency basis. [Weber isn’t permitted to identify the airline due to confidentiality agreements]. David Hooper, Weber’s director of operations, says that in addition to the food storage and handling requirements, servicing a major airline requires a logistics provider to be flexible and nimble to adjust to the daily changes in volume. About 30 percent of the food Weber supplies to the airline is

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considered temperature-sensitive. This includes all of the meats, seafood, bread, processed meals, dairy products and bottled water. “If you can get it on a flight, it comes from us,” Hooper says. “We do multiple temperatures, so we have freezers at minus-20 degrees Fahrenheit for their ice creams. We handle their chilled products at 32 degrees for cheese, yogurt and other dairy products. We also handle all of their dry goods.”

Weber Seeks Continuous Improvement Amid Constant Change Hooper says Weber is constantly seeking continuous improvement, whether it be from a productivity and picking standpoint, or something in regards to storage. A major factor is ensuring that warehouses always have the proper storage configuration. “We even work with our customers on their inbound products and demonstrate how they can better utilize trailers and containers and avoid damages to help mitigate their transportation costs,” Hooper says. The major challenges in supplying an airline is dealing with how to handle constantly changing inventory and also preparing for the seasonality of airline food service. Also, the airline occasionally changes vendors. When that happens, Weber must adjust accordingly. The airline picks the vendors and it is Weber’s responsibility to build working relationships with them. “When vendors change, so do their pallet heights, and other things as well,” Hooper says. “If we weren’t

continually improving our processes, we would not have had them for a partner as long as we have.” Weber has to be prepared to provide same-day service in fulfilling outbound orders. “We get a lot of orders the same day because the demands from the stations are regularly changing and they are running out of stuff,” Hooper says. When the airline submits an order to Weber, it normally picks that order according to temperature zones and stores it for the outbound shipment. It is then loaded into Weber’s trailers and its drivers deliver the order to individual airports. When menus change due to seasonality, Weber usually receives about 30 days’ notice. For example, with summer approaching, Hooper says the airline will be ordering much more beef than it does the rest of the year. “We will get the product list from [the airline], letting us know these are going to be the seasonable items they will be carrying through the summer,” says Hooper. “We go through the warehouse and re-establish our pick fronts and pick lines in accordance with that demand so we can serve them without any issues.” Airline menus also change based on holidays. “For us, it is really about managing our pick fronts and pick paths, as well as configuring storage inside the warehouse,” Hooper says. “Because it’s an airline, you have to be flexible and nimble with the daily change in volume.” Weber operates 12 high-velocity warehouses, ranging from 60,000 square feet to 330,000 square feet. www.foodlogistics.com

6/3/19 11:26 AM


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All are registered with the FDA and all but two are AIB certified. Most of the warehouses are in the Los Angeles and Inland Empire areas [east of Los Angeles]. The largest facility is in Eastvale in the Inland Empire. Weber also operates its own regional fleet of trucks. Weber serves an array of other well-known food clients, including Haribo, the gummi bear company, Godiva, Hershey’s and Nestle.

Lynden Delivers on Temperature Freight shipping and logistics specialist Lynden provides tempera-

CAI LOGISTICS HELPS SATISFY UAE’S TASTE FOR ICE CREAM

By Lara L. Sowinski CAI Logistics, part of global transportation company and intermodal container lessor, CAI, is seeing growth in refrigerated cargo transportation both domestically and internationally. The global cold chain, and food logistics in particular, are a “consumer-driven sector,” notes Brian Akers, vice president of international logistics at CAI. People are eating healthier, he says, while the desire to choose from a wide range of foods despite the season is also driving demand. Among the variety of refrigerated cargoes handled by CAI Logistics, ice cream exports from the U.S. to the United Arab Emirates and several other Middle East countries is one that requires the utmost care with regards to time- and temperature-sensitive transportation and handling. The ice cream is shipped from New Jersey and Boston by one of the world’s largest franchisers of ice cream. “With ice cream, you’ve got to have the proper equipment, the proper temperature, and fast supply chain transit times to make sure you literally don’t have a melt down,” says Akers. CAI Logistics has an advantage as an asset-based logistics provider that also has very close relationships with all the major ocean carriers. According to Agriculture and Agri-Food Canada, ice cream products in the UAE have experienced steady growth over the past five years, with total growth in retail sales value of 28.6 percent, at a compound annual growth rate of 6.5 percent from 2012 to 2016. The impulse ice cream category, which is made up of single portion dairy or water ice cream sold in stick, cone or small cup format for immediate consumption, is the most popular category. Consumers in the UAE also tend to prefer premium brands compared to standard and economy brands. In addition to the UAE, the ice cream is exported to Kuwait, Saudi Arabia and India. On the import side, CAI Logistics is supporting the citrus industry, including the orange juice sector, with domestic over-the-road freight moves as well as “imports of frozen products, frozen puree, that comes in to processing plants in the U.S.,” where it is processed into juice, says Akers. CAI Logistics’ experience in moving food and beverages is a definite plus, he says, and so is having “the capacity within the network to move it,” which means access to reefer containers, and relationships with ocean carriers and cold storage providers.

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ture-controlled transportation of food and other perishable commodities by air, land and sea throughout the U.S. Bill Johansen, president of Brown Line LLC, part of the Lynden family of companies, says Lynden has written procedures for safe handling of everything it transports. This includes training, trailer sanitation, temperature verification, recordkeeping, on-site controls such as facility security, in-transit controls, and notification of all parties associated with any potentially adulterated shipments. “We utilize satellite tracking on all our vehicles,” Johansen says. “We have upgraded our refrigeration units with StarTrak, a system that is capable of sending alerts to our dispatchers, drivers or shop personnel if any unit is not maintaining the temperature set point of the refrigeration unit. We can also adjust the temperature on a unit remotely, if needed.” Johansen says the handling of high-end, specialty refrigerAlaska Marine ated cargo has Lines ships all evolved over types of freight the years. The to/from Alaska, FDA’s Hazard including groceries, autos, Analysis and oversized cargo, Critical Control and breakbulk. Point (HACCP) system has had a major impact on carriers as companies that are involved in growing, processing, manufacturing, distributing and merchandising and preparing foods for consumption. This group includes retailers and foodservice companies as well, he

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Brown Line specializes in tempcontrolled commodities from the Pacific Northwest and British Columbia, delivered to locations in California, the Southwest, Midwest and the Northeast.

says. Companies that are required to implement a HACCP plan can specify what and how goods are transported and refrigeration requirements, which can be problematic to carriers as the individual companies set their own standards. While one company may specify product must be received between 34-degrees and 38-degrees Fahrenheit, another company shipping the same items may specify 34-degrees to 35-degrees, Johansen says. These companies are in violation if they fail to maintain the temperatures set forth in their HACCP plan, even if the product was still kept safe. Lynden continues to see growth in temperature-sensitive products. Johansen says consumers are more knowledgeable today about food quality and health choices. They are trending away from processed foods in favor of fresh products, which they consider to be healthier options. Transport of seafood, meats,

dessert items, ethnic foods and organic foods continue to provide growth opportunities as consumers become increasingly cognizant of food quality, he says. “We are part of a global economy, and that is reflected in consumers’ food preferences and the demand for greater diversity,” Johansen says. “Forty years ago, if you wanted seafood in San Francisco, the majority of the product offered was from local waters or the Pacific Northwest. Now, consumers want and expect more choices, and

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seafood products from around the world are flown in daily to satisfy the demand for exotic products that are not harvested locally.” Johansen says Lynden sees both challenges and opportunities in transport of temperature-controlled food. “The demand for more global imports has diluted the product market for locally sourced product that traditionally served our mar-

kets within the U.S.,” Johansen says. “Consumers now have a variety of species and products from anywhere in the world. We also have opportunities as more goods are imported and exported. Where we have seen growth is transporting these goods to outbound shipping locations and additional imports, which land in the U.S. that require distribution throughout the U.S. and Canada.”

John McCurry is an Atlanta-based writer specializing in logistics and manufacturing. He is a former editor of Air Cargo World magazine.

Logistics for the Fresh and Frozen Food Industry!

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JUNE 2019 | FOOD LOGISTICS

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SECTOR REPORTS WAREHOUSING

BY JON SCHUMACHER

FUTURE OF CHEESE PROCESSING M Masters Gallery Foods builds the cheese processing plant of the future with a green design and high-tech equipment.

Jon Schumacher is the director of marketing for Rite-Hite Doors. He has been with the company for 20+ years and is a member of the Door and Access Systems Manufacturers Association (DASMA).

32

asters Gallery Foods might be the largest national cheese supplier you’ve never heard of. It produces millions of pounds of cheese—from aged cheddars and fresh jacks to soft and hard Italians—for nationally recognized brands, as well as food service and industrial partners. The cheese manufacturer, headquartered in Plymouth, Wisconsin, has one of the largest privately held inventories in the nation, processing, aging and handling a wide mix of products. For example, major regional and national brand retailers and restaurants can get 8-ounce and 2-pound shredded cheese packages, while industrial companies can order 640-pound blocks of aged Monterey Jack and foodservice industry customers can specify 5- to 10-pound units in shredded, diced and cubed variations. Founded in 1974 by Leonard “Butch” Gentine, Jr., Masters Gallery Foods doubled in size in 2000 and then doubled again by 2009. Today, the company employs more than 700 people and is expecting even more growth as demand for its cheese continues upward. To keep pace, the company first added 240,000 square feet to its flagship Plymouth facility in 2012, then built another warehouse as part of its new production facility in nearby Oostburg, Wisconsin. Opened in June 2018, the facility currently has 175,000 square feet of floor space and 80 of the 360 lockers for employees are currently being utilized. The facility can be expanded up to 400,000 square feet and is ready for the workforce to grow. Any way you slice it, Masters Gallery Foods is a company on the rise.

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Building a Facility for the Future

As a private-label manufacturer, Masters Gallery’s facilities are regularly inspected by current and potential partners as well as numerous third-party auditors. As such, the company wanted a state-ofthe-art facility that didn’t just fulfill its current needs (and satisfy FSMA compliance), but could sustainably support the company’s anticipated growth for decades to come. One of the ways the cheese processor/ distributor accomplished this was by incorporating green design principles. The green design started with the layout of the building’s physical footprint. In recognition of Wisconsin’s chilly climate, no dock doors were put on the building’s north side, but rather on the east and west, where sunlight and ambient temperature could best help melt snow and ice. Masters Gallery also chose to eschew the ammonia-based refrigeration systems used in most food facilities for a water-cooled system, using ice that the company makes during off-peak electrical use hours (nighttime) and stores in a special silo. This method is not only more sustainable and environmentally friendly than using ammonia, it lowers the plant’s utility bills and the danger of food spoilage—as any ammonia leak can potentially ruin inventory. Additionally, the Oostburg plant captures and recycles the heat produced by machinery during shredding and slicing processes to use later for temperature control. It even pumps heat from the plant into heating coils underneath the plant’s outdoor sidewalks to melt snow and ice. “We’re doing things that not

many other facilities are even thinking about,” said Mark Wirtz, engineering manager for Masters Gallery Foods.

Safety First Despite its impressive facilities, Masters Gallery views its employees as its greatest asset. That’s why the company has taken a serious approach to ensuring workplace safety. “If I can keep our employees happy, that’s a big deal,” said Wirtz. “Safety is a crucial part of that, and an important ingredient to our success.” The new plant’s doors are an example of that. When plans for Oostburg were being developed, the company had to determine what types of high-speed doors it would use to separate manufacturing areas from production and finishing areas. Wirtz said they had a few different types of doors in their Plymouth facility, but felt like the high-speed doors offered by Rite-Hite gave them the best combination of safety and efficiency. “In the original plant, when a door malfunctioned, a specially trained technician would have to work on the junction box to avoid producing an arc flash. It was dangerous and caused production delays,” noted Wirtz. Fortunately, Rite-Hite was able

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to alleviate the arc flash problem in the new facility, installing touchscreen control panels for the doors that employees can operate and program. Wirtz said now workers don’t have to wear gloves or other personal protective equipment when using the 7-inch LCD graphic user interface (GUI) control screen. In addition to improving productivity at the plant, the new controls also provide real-time data on door use. The new plant’s doors also incorporate a light-emitting diode (LED) timer screen to let employees know when the door is about to close. Working in conjunction with the door’s internal timers, the LED Countdown display uses white numbers when the count is 3 or larger and the numbers turn to yellow for 2 and 1. A red arrow appears when the door is about to close. Additionally, the two FasTrax doors that connect the packaging area to a storage area use LED Virtual Vision devices. Although the doors don’t have vision panels (because condensation caused by temperature differences between the two areas would render the panels useless) the new technology allows workers to effectively “see” through the door. When traffic is approaching the door from one side, the other side alerts workers

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with flashing red LEDs, minimizing the opportunity for dangerous collisions in the doorway area. “Forklifts in the packaging area can get moving pretty fast,” Wirtz said. “The LED Virtual Vision was a conscious decision we made to create a safer work environment for our employees. It’s worked extremely well so far.”

High-Cycle, High-Efficiency Doors When it came to the actual function of the high-speed doors, Wirtz said he wanted something that moved quickly and had the ability to stand up to everyday wash downs, which are required by Food and Drug Administration (FDA) and United States Department of Agriculture (USDA) regulations. “There’s consistent traffic between the cooler storage areas and the warmer packaging areas, so we were more concerned with fast-acting doors with tight seals than slower-moving ones with high R-values,” Wirtz said. “The Rite-Hite doors were the fastest option available. The extra speed reduces the opportunity for air to move from one room to another and minimizes the chance someone hits them.” The Oostburg plant has 11 high-speed Rite-Hite FasTrax doors

JUNE 2019 | FOOD LOGISTICS

that operate at speeds of up to 100 inches per second. Of those, eight are FasTrax Clean doors, which are ideal for use in and around cleaning and processing rooms due to their ability to withstand daily cleanings and wash downs. FasTrax Clean doors feature a one-piece radial header machined from a single block of UHMW plastic, meeting clean-up standards required by the USDA and FDA. The door itself is made from a smooth polypropylene, making it more resistant to acids and bases with a lower water absorption rate than vinyls and urethanes. The lightweight UHMW side frames stand off from the door to minimize surface-to-surface contact where bacteria can grow, and also can be easily removed for wash down. The other three FasTrax doors are used in packaging and finishing environments that don’t require wash-down capabilities. Wirtz said these doors do an excellent job of separating the cold environments of the storage and shipping areas from the warmer environments related to packaging and processing. Masters Gallery Foods hasn’t just talked the talk; they’ve walked the walk. Bundling various pieces of new technology offered by RiteHite, the cheese processor has been able to increase productivity while being environmentally conscious and protecting the employees at its newly built Oostburg, Wisconsin, cheese processing facility.

If I can keep our employees happy, that’s a big deal. Safety is a crucial part of that, and an important ingredient to our success.” Mark Wirtz, engineering manager for Masters Gallery Foods

High-speed doors from Rite-Hite provide safety and efficiency, while touchscreen control panels allow employees to operate and program the doors.

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BY THOMAS GOODALL vitpho / iStock / Getty Images Plus

SECTOR REPORTS TRANSPORTATION

OVERCOME

FOOD TRANSPORT

CHALLENGES

Driver shortages, coupled with environmental issues and safe transport, are keeping transportation providers awake at night.

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ood is one of the most challenging products to move when it comes to haulage. There are three key challenges which companies moving food around the U.S are facing in 2019. These challenges are driver shortages, environmental impacts and sanitation standards compliance. To meet these challenges, companies are changing their traditional practices and employing new solutions.

Driver Shortages Despite the clear need for workers, companies looking for long-haul drivers are struggling to fill the positions. Higher levels of demand for freight along with issues of high turnover rates and retirements have made historical problems even worse. Figures provided by the American Trucking Associations (ATA)

of truck drivers in the U.S. (6.2 estimate that companies could percent according to the ATA), they require about 100,000 more drivface some serious issues working in ers in the coming years. To fill these the trucking industry. For example, positions trucking companies are sexual harassment, sexism, personal doing more to fill the gaps in their safety and personal hygiene to workforce. Recruitment of drivers name just a few. from non-traditional truck driver Women in Trucking asked backgrounds, along with raising pay women in the industry to rate their and making the job less stressful safety out of 10 with the average are ways in which companies are response being 4.4. However, when hoping to attract new workers. it comes to safety on the road womAn average driver salary of $60,000 marks an increase, but en are a safer option for companies there are still issues that drivers as experts believe they take fewer face which risks when is making driving. ACCORDING TO THE ATA the job a AVERAGE TRUCK DRIVER Filling the tough sell gaps in the SALARY IN THE U.S. to potential driver market workers. is crucial for For womcompanies going forward en, who still and expandmake up a ONLY ARE WOMEN tiny portion ing the range of people employed will not only improve the efficiency of companies but also the working conditions of all those involved.

$60,000 6.2%

Environmental Impacts

Thomas Goodall, a recent graduate of Newscastle University, has contributed work to a variety of publications for a range of topics, including vehicle technology and advancements in sustainability.

With consumers desiring more fresh food produced organically and sustainably, the environmental impacts of transporting food are becoming more and more critical. Transporting food by long-haul trucking is common in the U.S. and the range of food moved across the country in trucks is large. welcomia / iStock / Getty Images Plus

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SR: TRANSPORTATION continued

The farmto-table trend in restaurants

FG Trade / E+ / Getty Images

has impacted the public’s desire to eat locally produced food.

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The farm-to-table trend in restaurants has also impacted the public’s desire to eat locally produced food. It is, however, not always possible for consumers to source all of their food locally. As a result, transporting the goods as environmentally friendly as possible is becoming more important for both consumers and businesses. One system which is helping improve the transportation of food is vehicle tracking. Vehicle tracking allows specific vehicles within a fleet to be closely monitored for a range of parameters which can play a vital role in the efficiency of a vehicle. Driver behaviour can have a significant impact on the efficiency of a vehicle. Considering the tight cost margins with food, making sure that from a transportation standpoint expenses are as low as possible is a benefit to both consumers and businesses. One system which has proven to improve both driver behaviour and the efficiency of a vehicle is in-cab coaching systems. These are small, dashboard-mounted devices which can provide both audio and visual feedback to drivers based on their performance behind the wheel. Drivers are alerted to dangerous actions such as harsh acceleration or speeding and can instantly correct their behaviour. These corrections can have a significant impact on areas such as vehicle maintenance and fuel usage, both of which can improve the overall efficiency of a vehicle. Savings made on fuel usage not only benefit the company through reduced fuel costs but also improve the impact on the environment which is essential for consumers. Considering that long-haul truck drivers are often paid by the mile, rather than by the hour, vehicle tracking

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can aid this process. The systems produce highly accurate telematics data which can be analyzed by fleet managers to see exactly how many miles drivers have covered. It’s clear that the appetite for farm-to-table food and consumers’ desire for locally sourced produce, along with consumer awareness of the environmental impact of transporting food is only going to increase. As such, systems which improve the efficiency of transporting food will be more important in the coming years.

which requires 55-degree to-60degree containers. Being able to regulate and monitor the temperature of the containers during transport is vital as drivers may be required to alter the temperature of their trailer should it get out of the ideal range. Even a slight change in temperature can have significant effects on the quality of the product, which can have serious knock-on effects for suppliers and consumers. Systems are now available which offer real-time temperature tracking which warns the driver Keeping Food Fresh about temperatures getting too and Safe In Transit high. Furthermore, automatic re-adjustments are made inside the Transporting food from where it refrigerated vehicle or trailer to is produced to where it will be sold ensure the food stays at the correct can present some key challenges. It temperature. Data is also produced is vitally important to get this right continuously to provide clear as the health of customers is crucial. Getting food to its destination quick- evidence to show the temperature of the trailer or vehicle throughout ly and safely requires planning and vehicles capable of sustaining specif- the journey. Finally, there are legal requireic transportation temperatures. When consumers are browsing ments for transporting food to the shelves in a store, the freshness maintain food safety and prevent of fruit and vegetables are a crucial illness to consumers. In America, factor in determining if these requirements are the item is purchased set out by the FDA’s Food Even or left on the shelf. The Safety Modernization Act a slight temperature of the change in (FSMA). vehicles transporting Making sure that the temperature shipment arrives on produce must be carecan have time is another crucial fully controlled to keep significant effects aspect of maintaining the fruit and vegetables on the quality of sanitation and freshness looking fresh. the product.” of produce. As with Keeping food at the temperature, even small correct transporting temperature is challenging because delays can have a significant impact. Delays in transportation can of the variations in temperature significantly reduce the available for transporting different fruits shelf life of fresh produce which can and vegetables. Temperature is not often be off-putting to customers a one-size-fits-all parameter. At who see a short use-by date on the the lower end of the temperature product. Since some of the food’s scale, such produce as blueberries, shelf life is taken up in transportabroccoli, apples, grapes, peaches, strawberries and packed salad tion time, getting the product to greens can be transported safely at its final destination as quickly as between 32-degrees to 36-degrees possible is very important. Fahrenheit. However, these temOverall, the transportation of food is challenging, but with the peratures are in total contrast to those needed to transport products solutions already in place and new ones being introduced, food haulsuch as potatoes, bananas, tomatoes and grapefruit from the warm age can continue to meet the needs climates of Arizona and California, of consumers.

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SECTOR REPORTS SOFTWARE & TECHNOLOGY

BY JOE SCIOSCIA

MOBILE BENEFITING FOOD APPS SUPPLY CHAIN As the market continues to modernize and more companies transform digitally, mobile applications are becoming the preferred data entry tool.

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duction and product quality are all he intricacy of the food essential to maintaining a successful supply chain depends on food distribution business and these the right technology to keep technologies enable that. Mobilizing track of food products and to keep enterprise resource planning (ERP) everything safe and traceable. provides food manufacturers and Considering the expectations and distributors with a variety of mobile standards of consumers and the apps to maximize worker Food and Drug Adminisproductivity, which tration (FDA) regulations, ultimately improves the food manufacturers and bottom-line and increases distributors must deploy customer satisfaction. technology implementations throughout the As mobile technology supply chain to ensure continues to increase in Mobile they are providing transapps...are task popularity, new mobile parency and accurately apps designed to simplify specific and tracking product along processes for employees can be easily the entirety of its jourupdated, unlike continue to improve the ney, from source to table. food industry across the many legacy board. Today, mobile apps Modern-day technoloenterprise gies, like mobile ruggetechnologies” such as proof of delivery, on-the-go route sales, dized devices equipped Joe Scioscia inventory management, with scanners and enterwarehouse management systems prise software or consumer-grade (WMS), and direct-to-store delivery mobile devices, allow companies are especially prominent in the to ensure food quality and safety food industry. while feeding data into an overall enterprise system, giving employRead on to see why companies ees access to data in real-time and looking to enhance efficiencies and allowing business leaders to make modernize operations should deploy smarter decisions based on that mobile applications and technology data. With an estimated three-quar- throughout the supply chain. ters of Americans owning a smartphone, mobile devices are common- Ease of Use place, making them extremely easy While some people may not for companies to deploy and train be ready to modernize their IT systems, mobile applications new employees. bring the familiarity of commerMobile devices and mobile applicial or consumer mobile devices cations are becoming particularly popular in the food industry for their to the warehouse floor. These mobile apps were designed for reliability, ease of use and ability to a handheld, touchscreen device, transmit real-time data to the entire and they provide uncomplicated enterprise. Tracking inventory, pro-

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and simple ways to do work and view information. In the food industry where product may be handled by numerous employees throughout the organization, it is critical that all employees know how to use the technology necessary for the job and that they feel comfortable using it. Some existing enterprise technology can be time-consuming or difficult to train employees on, but new mobile apps make the implementation process much smoother and easier to use than legacy software that can be less user-friendly. With these apps available on mobile devices, employees can scan an item and input the necessary data into the system directly, rather than writing it down and transferring it into a system at a later time, which often leads to mistakes or inaccurate information. The simplicity of these modern technologies takes the stress away from spending hours on extensive training and frees up critical employee time to manage more value-added tasks that will benefit the business in the long run.

Increase Revenue and Enhance Productivity Mobile apps can provide cost savings and are a smart investment for the future because they are task specific and can be easily updated,

www.foodlogistics.com

5/31/19 2:33 PM

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regulatory requirements, and gain access to a real-time view of the entire company.

Meet FDA Requirements The U.S. Department of Agriculture (USDA) estimates that food-borne illnesses cost more than $15.6 billion each year, so companies working in the food industry must ensure that all safety compliances are met throughout the supply chain. This is critical because any mistakes can cause a disruption in operations, resulting in potential lost revenue. The FDA’s Food Safety Modernization Act (FSMA) requires companies to provide digital records of all procedures and transactions that occur, which can be extremely difficult for companies to comply with if they do not have the appropriate tools in place. Mobile inventory management and lot and date tracking apps ensure that organizations can trace a product from its origin to the moment it gets to its destination, helping to meet increasingly stringent federal regulations. With numerous items moving through the supply chain on a daily basis, keeping track of lot information and shelf-life dates can be made simple with mobile

Real-Time Data Capture and Analysis Real-time data capture is imperative for food companies today. By ensuring that all data is being captured along each part of the supply chain process, organizations can provide transparency to customers, meet all FDA regulations and allow orders to be fulfilled and processed in a more time-efficient manner. With companies always having to rely on data to make business decisions today, these data capture capabilities also make for smarter decisions based on insights and more real-time responses to changes in the supply chain. Employees can access real-time data and can make adjustments to inventory or fill rates based on data that is being transmitted from workers across the supply chain. These mobile enterprise systems also automate time-consuming tasks like data capture and data analysis, which allow employees to spend more time looking at the bigger picture and making decisions that will positively impact the future of the company. Implementing mobile apps into everyday work processes will ultimately improve efficiencies, lead to smarter business decisions, keep regulators informed and your customers happy. As the market continues to modernize and more companies transform digitally, mobile applications will become the preferred tool for data entry for companies across industries. Also, mobile technologies connected to the Internet of Things (IoT) will ocontinue to provide even more advantages and optimize the future of work, especially in the food industry.

Mobile technologies connected to the IoT will continue to provide even more advantages...” Joe Scioscia

nazdravie / iStock / Getty Images Plus

d-

unlike many legacy enterprise technologies. Whether a business is just starting up or has been around for over a century, mobile apps fill the need of every organization working along the supply chain and are crucial for success in the digital world we live in. Mobile technology can have a very high return on investment because it is not necessarily as expensive as other technologies and can be quickly deployed at a large scale. For companies with multiple locations, mobile apps like on-thego route sales and order processing keep the multi-location network connected throughout the day, so time isn’t wasted trying to sort through tedious logistics. When dealing with perishable items, it’s vital that processes be conducted in a timely and an efficient manner and that product is accurately accounted for along the way. These apps also ensure that inventory is accurate so that customers are receiving the correct orders with a precise amount of product. With the efficiencies that mobile apps provide, employees are able to do their jobs faster and more precisely. When employees are equipped with mobile technology throughout an organization, they’re able to work more efficiently, stay connected to one another, meet

technology as the information goes directly into the system, reducing the possibility for mistakes and enhancing efficiencies.

Joe Scioscia is vice president of sales for VAI.

JUNE 2019 | FOOD LOGISTICS

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5/31/19 2:33 PM


SECTOR REPORTS OCEAN PORTS & CARRIERS

Be Co

BY LARA L. SOWINSKI

GROWING MARKET OPPORTUNITIES FOR U.S. SOYBEAN EXPORTERS Increased use of containers is helping soybean exporters optimize their supply chain and respond quicker to changing market conditions.

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ver the last two decades, U.S. soybean exports have doubled and now account for about half of the total U.S. soybean production. Illinois is the country’s largest producer, exporting over $3 billion of the oilseed in 2018. The state grows high-quality soybeans, explained Eric Woodie, trade analyst for the Illinois Soybean Association. The soybeans consistently produce high protein content and the amino acid profile is also high, he said, which is a desirable characteristic for foreign buyers. Not only is Illinois advantageously positioned in the center of the country with good access to port gateways on every U.S. coast, its road, rail and river infrastructure means transportation to those gateways is also excellent.

Containerization and New Markets However, in recent years it’s been the move from bulk shipping to containerization that has really given the sector a boost in several ways, said Woodie. The migration to containers came simply enough: shipping lines and others were looking for cargo to fill empty containers outbound from the U.S. to Asia. Corn shipments were one fit, but there was also a fit for soybeans, said Woodie.

40

FOOD LOGISTICS | JUNE 2019

FLOG0619_40-43_OCEANS.indd 40

Empty containers are provided to Illinois farmers (usually within 100-150 miles of the Chicagoland area), filled with soybeans, and brought to Chicago. From there, most containers are railed to the West Coast, although soybean exports from East Coast ports such as Norfolk, NY/NJ and Charleston are on the rise, he said. For example, the European market is starting to show significant demand for U.S. soybean exports, while demand is also rising in the Middle East and North Africa. “Those are several of the new and exciting markets to watch over the next 20 years,” said Woodie. Meanwhile, established markets like those in Taiwan, Thailand, Indonesia and Vietnam are very healthy and containers are a way to maximize that strong demand.

We estimate that over a quarter of our annual production (of soybeans) over the last few years went to China.” Eric Woodie, trade analyst for the Illinois Soybean Association

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Specifically, containerization offers soybean farmers several benefits. Previously, foreign buyers (who were also competitors) would typically group together to buy an entire bulk shipment of soybeans. This meant there was little to no transparency in pricing between the U.S. shipper and an individual buyer. Furthermore, a bulk shipment of soybeans is about 70,000 metric tons, or 2,916 FEU. Shipping smaller quantities in 40-foot containers gave soybean shippers much more flexibility and options in terms of who they could ship to, which countries they could ship to, how frequently they could ship, and what the pricing and terms were. To top it off, containers help maintain the quality of soybeans better than bulk shipments, Woodie added. There is more breakage with bulk shipments compared to containers, which may not be a significant issue when the soybeans are used for animal feed, for instance, but is important when the soybeans are intended for human consumption. The Indonesian market is one example. Buyers there not only want high-quality soybeans, they want them whole and intact for a variety of foods, like tempeh. Moreover, “Customers who want specific varieties, such as non-GMO [and/ or organic] and food-grade soybeans, want to maintain the identity of the grain from seed to harvest, processing and transportation to delivery,” and containerized shipping enables these requirements. It also allows customers to source soybeans from localized elevators and even specific farmers, noted the Illinois Soybean Association. “IP products tend to demand a pre-

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China a Source for Future Growth According to Woodie, although containerized soybean exports comprise only about 5 percent or so of the current market, the goal is to grow into the double digits over the next two years. One of the biggest markets for U.S. soybeans—China—has obviously been in turmoil since trade tensions between the two countries intensified over the past year. “The Chinese market is substantial for Illinois,” noted Woodie. “We estimate that a quarter of our annual production over the last few years went to China.” However, the transition to containers has provided somewhat of an unexpected buffer from the market disruption associated with the implementation of retaliatory tariffs, allowing soybean exporters to more easily pivot to other markets and buyers. It’s also forcing the sector to look more closely at diversifying their exports. According to the Illinois Soybean Association, “The need for export

diversification has been underscored by recent trade tensions between the United States and China. China has all but stopped buying American soybeans in response to U.S. tariffs on billions of dollars of Chinese goods. The dispute, which led China to impose a 25-percent tariff on U.S. soybeans, sent prices tumbling and increased inventories,” and emphasized the need “to transport soybeans in a reliable, cost effective, efficient and secure manner to as many markets as possible.” Soybeans are mostly shipped in bulk and are non-refrigerated. However, it’s an important commodity and it’s also increasingly moving by container, which presents opportunities for shipping lines and other logistics providers. It’s worth noting that soy-

Westhoff / E+ / Getty Images Plus

mium, making the additional costs of transportation more feasible.”

Containerization allows foreign buyers to source soybeans from localized elevators and even specific farmers.

beans rank as the largest agricultural export for the U.S. as well as one of the country’s top 10 exports overall. In 2017, the U.S. exported $21.6 billion in soybeans, which is more than double the value of U.S. corn sold internationally.

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AN

FOOD (AND MORE) FOR THOUGHT

BY DAVID BENJAMIN

Devastating Midwest Floods Deliver Impact to Food Logistics Industry ∠ In March, a series of weather events came together to devastate a key

region in the American Midwest.

∠ Resilience360, a group of supply chain risk intelligence experts,

analyzed and released a report revealing the impact.

BENJAMIN

∠ Critical elements of local transportation infrastructure were crippled,

and the flooding impact will be far-reaching in ways that few could have imagined.

T

Benjamin has been a highly visible entrepreneur in food and transportation technology for several decades. An expert in temperaturecontrolled transportation and IoT, Benjamin and his Rising Tide Digital team are investors in supply chain risk assessment company Resilience360.

44

ragedy struck the American Midwest this year when a winter weather phenomenon known as a bomb cyclone punched through Nebraska, Iowa and Missouri. Communities were cut-off, houses disappeared under 15 feet of water, and Image: NOAA GOES Imagery | March 13. 2019 sadly—people lost their lives. Generations of hard work were men and women have accomplished washed away in a matter of days and, a great deal. But while the damage unfortunately, the impact isn’t over to the regional transportation infrayet… the consequences will continue structure is rapidly repaired, they to appear for months, if not years. are not out of trouble yet. At the time of this writing, a Having been in the food logistics month has passed since the events world for a while now, I thought I of Winter Storm Ulmer. The historic had a grasp on cause and effect in flooding ripped through the region our industry, but I was shocked by washing away roads, damaging the April 2nd report: the analysis of rail lines and bridges, and for a the ongoing potential risk is sobering time bringing barge traffic to a but hopeful. The R360 team not virtual standstill. On the heels of only detailed the what, how and this catastrophe, supply chain risk why of the disaster, but delivered intelligence experts at Resilience360 thoughtful insights on what to con(R360) reported an analysis of the sider while planning for the coming immediate and long-term impacts months and years. for customers and markets. Here are just a few key takeaways:  Heavy losses are likely to The R360 report reveals that over trigger a wave of insolvencies. In the last month, repair crews have total, Nebraska authorities currently struggled through harsh conditions estimate damages/losses to: and their own logistical nightmares getting supplies, equipment and per∠ Roads, levees and other infrasonnel in place. In a short time, these structure ($449 million); agricultural

FOOD LOGISTICS | JUNE 2019

FLOG0619_44-46_FoodThought.indd 44

crops ($440 million) and livestock ($400 million).  Flooding will likely continue through the spring which has implications for the coming year’s production due to currently high-water levels, an abundance of unmelted snow and potential heavy rain incidents.  While our transportation infrastructure recovers quickly, significant damage was reported: ∠ An estimated 200 miles of road have been damaged, including the Interstate 29 closure. ∠ The Spencer Dam collapse closed the US-281 river crossing and triggered evacuations. ∠ Fourteen northern Nebraskan bridges have been compromised. ∠ Railroad repairs are causing 3to 4-day rerouting delays. In the wake of these devastating floods, food logistics distributors and suppliers should reassess the resiliency of their suppliers and customers in the region to ongoing flood events, including diverting shipments, changing modes, anticipating additional truck shipment transit time and delays for rerouted rail shipments, and ensuring adequate local supplier staffing and viable shipment routes. Looking forward, stakeholders are likely to face higher ground transportation costs while local, state and federal agencies ensure infrastructure is repaired.

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G1 — Front Cover — 7.375”

THE POWER OF PROPANE Propane-powered forklifts demonstrate their advantages over electric and other types of FORKLIFTS IN A VARIETY of environments.

R

enze Display, a custom display and graphics specialist based in Omaha, Neb., is a big believer in the advantages of using propane-powered forklifts. After purchasing and using two electric forklifts in the early 2000s, the company decided to explore other options for their heavy lifting needs. Renze purchased an electric forklift in 2001, and a second in 2004. But, the machines couldn’t meet the demands of the company. Doug Buchanan, owner of Renze Display, explains that, “We had trouble going up and down ramps, and even burned up the engine in one of the electric PROPANE IS forklifts trying to MORE SAFE get it up a ramp. Plus, electric forklifts “THERE’S A LOT MORE would run out of POWER, battery charge in A LOT the middle of a job. MORE LIFT If someone forgot CAPACITY to plug an electric forklift in and it didn’t TO WHERE WE DON’T have a full charge HAVE TO on it when a truck WORRY showed up the next ABOUT morning, it would die TIPPING on us in the middle of OVER A unloading a truck.” FORKLIFT.” Renze Display’s Senior Exhibit Manager, Bryan Meusch, concurs. “Electric forklifts were not a good fit for us,” he says. However, it’s been a different story since the company switched to propane-powered forklifts, according to Meusch. Limited downtime with Renze’s three propane forklifts helps the company achieve fast turnaround

on projects. Refueling is simple, and doesn’t take a machine out of action for hours as was the case when the electric lifts needed recharging. Meusch says he can tell when the tank is getting low or about to run out, so he’ll start driving back toward the propane cage. If he doesn’t make it, it isn’t a problem. Empty, the tanks are around 15 pounds. Full tanks are closer to 40 pounds, light enough that employees can take the fuel right to the forklift with the use of small carts. Propane also fits with Renze’s goals to be SIMPLE environmentally respon- REFUELING sible. They use Eco-SysPROPANE tem sustainable exhibits CANISTERS ARE LIGHTWEIGHT and recycle spare or EMPTY FULL unused materials. Propane tanks function on a closed-loop fuel system, LBS LBS so there are no extra

15

40

demands from the Environmental Protection Agency for contamination or clean-up. For the four employees, including Meusch, who operate forklifts, the machines provide safety to their daily work. “There’s a lot more power, a lot more lift capacity to where we don’t have to worry about tipping over a forklift,” he says. Another convinced user of propane forklifts is Mazo Hardware & Rental in Mazomanie, Wis., a small suburb of Madison. Owner Renee Zaman describes it as a “traditional, smalltown hardware store.” The independent, family-owned business includes its 6,700-squarefoot hardware store, a full garden center and a sizable fleet of light-construction and landscape rental equipment. Mazo uses forklifts to move materials such as bags of feed and garden mulch. For the past decade, the company has used a propane forklift. “Propane works really well for all of the pallet moving that we do around here,” she says. “Electric just wouldn’t do it.”

Food Distribution

Propane forklifts are commonplace in many warehouse settings, but they have yet to make a huge presence in the food distribution area, but there is opportunity. Jeremy Wishart, director of off-road business development for the Propane Education and Research Council (PERC), views food logistics as a big potential growth area for propane. He says misinformation is mostly to blame for the relatively low use in the food sector. “There has long been a myth going around that propane forklifts are not allowed to operate inside a food distribution center,” Wishart says. “I don’t know how that got started because

BROUGHT TO YOU BY:

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G2 — 7.375”

THE POWER OF PROPANE propane forklifts as reliable, powerful, efficient, and affordable. Here are some features the organization cites: • Propane forklifts can work in all areas of warehousing and material handling applications. • What you see is what you get, meaning propane forklifts don’t come with hidden costs like other fuels. • Propane forklifts are less expensive at acquisition than electric, while Tier-4 requirements can add thousands of dollars to the purchase price of diesel equipment. Electric forklifts are costly when you consider the utility costs of keeping them charged. Battery life and power output for electric forklifts also diminish over time and lead to future costs that can go overlooked, including additional expensive batteries. An investment in propane cylinders and storage cages, on the other hand, can last decades, PERC says. Beyond the initial equipment purchase and cost of fuel, companies are only responsible for buying and storing the cylinders, which can last about three times as long as the average forklift battery. 

ROI

12-18

R

AFFORDABLE

SAVE MONEY

PROPANE

30%

LOWER CAPITAL COSTS THAN ELECTRIC

PROPANE HAS

NO HIDDEN COSTS

ELECTRIC

DIESEL

UTILITY BILLS

TIER-4

 The capital costs of propane forklifts are almost 30 percent lower than those for electric, allowing you to save more for other line items like new employees, or business development. Propane cylinders also last three times longer than electric batteries, and their lifespan isn’t affected by the amount of fuel left in the tank. With electric, batteries that have too low or too high of a charge won’t last as long.

CYLINDERS

compares to 3 to 5 years for electric there are no regulations of any type versions, he says. nationwide that would prevent this. “The lifespan of propane forklifts is There may be corporate guidelines every bit as good,” Wishart says. that would dictate otherwise, but Propane is also the best choice there is nothing that would prevent for companies desiring to operate propane forklifts from operating in a with lower emissions, Wishart says. food-handling space.” A comparative emissions analysis of Wishart says one of the common forklifts conuses of propane forklifts in food ducted by PERC, PROPANE applications is loadin partnership MONTHS ing a truck outside with the Gas the warehouse with Technology InstiCOMPARED TO ELECTRIC dry goods or bevertute, found that 3-5 YEARS ages. He says they although electric also offer a good forklifts produce no emissions during operation, their option for cold storage situations. full-cycle emissions profile is not so Greater Berks Food Bank in clean, he says. Reading, Pa. is one example of propane-powered forklifts in the food Using propane forklifts can reduce arena. The nonprofit distributes more SOx emissions by 76 percent comthan 7 million pounds of food annually pared to electric when total siteto more than 300 charitable food to-source emissions are evaluated. partners across Pennsylvania’s Berks Site-to-source emissions include and Schuylkill counties. At least half of those produced in the manufacturing the donations the food bank receives and transportation of batteries for are fresh or frozen perishable goods, electric forklifts. When compared which require quick turnaround to be with gasoline, propane was found safely consumed by 110,000 people. to produce 15 percent fewer SOx With a 45,000-square-foot wareemissions, 17 percent fewer NOx emissions, and 16 percent fewer house in addition to outdoor waste greenhouse gas emissions. collection, the food bank needed a forklift fuel that required virtually A PERC study indicates that most no refueling time and could meet the forklift operators operate both non-stop supply and demand needs indoors and outdoors. Wishart says occurring both inside and outdoors. many businesses actually choose An electric forklift wouldn’t suffice, propane for its low-emissions indoor because they require long periods of performance. In fact, well-maindowntime to recharge. tained propane forklifts meet or “I definitely prefer a propane exceed nationwide indoor air quality forklift, especially since at our facility standards, while gasoline and diesel we only have one forklift,” says Adam models produce higher amounts of Winchester, operations manager. “It’s carbon monoxide and other harmful reliable. Day in and day out, it gets the emissions. As long as the engines are job done.” properly serviced and they’re operatPropane has been used to power ing in a well-ventilated environment, forklifts for more than 50 years, gainpropane forklifts are perfectly suited to operate indoors, he says. ing market share in the Class 4 and Propane-powered forklifts can also 5 markets as gas and diesel forklifts be used in temperatures below zero have been phased out by regulatory degrees Fahrenheit and are rated emissions standards. completely waterproof and safe for Wishart says the upfront costs are outdoor use. Wishart says propane significantly less for a propane lift forklifts are available in all weight truck compared to electric. He notes classes to match the job at hand. there are recharging issues, which Electric forklifts, on the other hand, can pose a dilemma for companies. may not be up to the task to carry the Furthermore, when all of the cost weight of large jobs, and diesel isn’t fit comparisons are considered, propane for small tasks. forklifts have an ROI of 12 to 18 PERC touts the new generation of months in most applications. That

BraunS / E+ allanswart / i

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ADVANTAGES OF PROPANE FORKLIFTS OVER OTHER TYPES OF FORKLIFTS

MO

 Pro ene jobs ava bec stay

RELIABLE POWER  With the fading power of electric forklifts, you could be paying employees to become increasingly less productive through the day. Propane forklifts provide 100 percent power throughout operation to make the most of the work day, and one cylinder covers an entire eight-hour shift. Businesses that operate 24/7 can count on propane forklifts over multiple shifts, with no need to schedule downtime for recharging, as with electric equipment. In the long term, propane cylinders are a smarter choice than electric batteries. Cylinders can last up to 30 years with requalified use, but batteries only perform 3-4 hours per charge and are only practical for infrequent use.

LIMITED DOWNTIME

REFUELING TAKES MINUTES

WITH PROPANE

LAR

E

TO FOR

WITH PROPANE

MORE CONSISTENT TRAVEL SPEED

PRODUCTIVITY IS UP

COMPARED TO ELECTRIC

AND COST IS DOWN

CYLINDERS

CHARGING TAKES HOURS

LONG TERM CHOICE

3X

PROPANE CYLINDERS LAST LONGER THAN ELECTRIC BATTERIES

SHORT TERM CHOICE FULL LAST

8 HOURS

COMPARED TO ELECTRIC

RECHARGING EVERY 3-4 HOURS

BraunS / E+ / Getty Images allanswart / iStock / Getty Images Plus

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G4 — 7”

MORE VERSATILE  Propane forklifts get more done in more places, unlike other energy options. Electric forklifts can’t carry the weight of large jobs, and diesel isn’t fit for small tasks. But, propane forklifts are available in all weight classes to match the job at hand. And because they can operate effectively indoors and out, your staff stays more productive.

LARGE JOBS

PROPANE: AVAILABLE IN ALL WEIGHT CLASSES

ELECTRIC

TOO HEAVY FOR ELECTRIC

USE INSIDE AND OUT WATERPROOF AND SAFER

SMALL JOBS

DIESEL

TOO BIG FOR SMALL JOBS

TRAINING  With the right training, refueling propane forklifts is practically no riskier than filling up your vehicle at the gas station. When you become a propane forklift customer, your propane supplier will train employees to handle the fuel safely and make the most of the equipment. In fact, your supplier can supply your business with helpful safety and training materials from the Propane Education & Research Council (PERC).

EMISSIONS  If operating with lower emissions is a priority for your workplace, propane is the best choice, according to the Propane Education and Research Council. Compared with gasoline forklifts, propane reduces greenhouse gas emissions by 16 percent, and NOx and SOx emissions by 17 percent. Many operators consider electric to be a clean energy source, but it’s important to consider site-to-source emissions in your decision. Compared with electric, propane forklifts reduce SOx emissions by 76 percent. COMPARED TO GASOLINE

PROPANE REDUCES GREENHOUSE GAS EMISSIONS BY

PROPANE T FORKLIFTS MEE D EE C EX R O NATIONWIDE INDOOR AIR QUALITY STANDARDS

16%

& REDUCES NOx AND SOx EMISSIONS BY

17%

COMPARED TO ELECTRIC

PROPANE FORKLIFTS REDUCE SOx EMISSIONS BY

Journal_6pg_Gatefold_v4gu.indd 4

76%

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G5 — Inside Fold — 7”

SUPERIOR FUEL. INSIDE AND OUT. Propane forklifts operate far cleaner than other options, so you can rely on it for indoor and outdoor jobs. See how it stacks up against other energy sources:

VS ELECTRIC

76% *

LESS SOx

VS DIESEL

VS GASOLINE

CARCINOGENIC EXHAUST

17% LESS NOx 16% LESS GHG

SAFE FOR INDOOR USE

17% LESS SOx

NO

*Including site-to-source emissions.

PROPANE.COM/INDUSTRIAL

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P531-058439-9

6/4/19 2:29 PM

Propan


L

G6 — Back Cover — 7.125”

Give Your Facility a Lift with the Clean, Powerful Performance of Propane Forklifts A MORE SUSTAINABLE FUEL PROPANE-POWERED FORKLIFTS PROVIDE A SOLUTION FOR FACILITIES LOOKING TO MAXIMIZE SUSTAINABILITY AND ENERGY EFFICIENCY — WITHOUT SACRIFICING PERFORMANCE. LOWER FUEL COSTS

Journal_6pg_Gatefold_v4gu.indd 6 Propane Education & Research Council

Propane forklifts produce 76 percent fewer SOx emissions compared with the site-to-source emissions of electric. Site-to-source emissions include those produced in the manufacturing and transportation of any energy source, including batteries for electric equipment.

ABILITY TO WORK AROUND THE CLOCK Unlike some of their electric counterparts, propane forklifts provide 100 percent power until the job is done. Businesses that operate 24/7 can count on propane forklifts over multiple shifts, because there is no need to schedule downtime for recharging, as is the case with electric equipment.

AVAILABLE IN ALL WEIGHT CLASSES Propane forklifts thrive in more places, unlike other energy options. Available in all weight classes, propane can handle virtually every size of workload — meaning that facilities can plan for only one fuel type for every project.

| PRODUCTIVITY | PERFORMANCE THAT NEVER QUITS

 Propane.com/Forklifts.

6/4/19 2:29 PM

Profile for Supply+Demand Chain/Food Logistics

Food Logistics June 2019  

Food Logistics is the only publication exclusively dedicated to covering the movement of product through the global food and beverage supply...

Food Logistics June 2019  

Food Logistics is the only publication exclusively dedicated to covering the movement of product through the global food and beverage supply...

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