Food Logistics August 2018

THE AUTOMATED SEAPORT

FSMA TODAY

Food Logistics

®

Global Supply Chain Solutions for the Food and Beverage Industry

PLAYING IT COOL From capacity constraints and labor shortages to changing buying habits, the complexity of today’s supply chain leaves the global cold chain prone to numerous risks

Issue No. 199

August 2018

FoodLogistics.com

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2018

3PL & COLD STORAGE PROVIDERS

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Crystal Cheney

National Accounts Manager

864.612.8813 Cell 410.770.7171 Fax www.hmbayinc.com crystal.cheney@hmbayinc.net

Logistics

Regional Office: 494 Sandpiper Drive Boiling Springs, SC 29316

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2018 TOP

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THE 13TH ANNUAL

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Maintaining the cold chain is vital to protecting and meeting the demands of today's everchanging supply chain. The companies on our 2018 list each play an important role in keeping up with that challenge. Diverse in their capabilities and the customers they serve, each 3PL and cold storage provider continues to improve their expertise and keep up with the latest temperature monitoring technologies and systems. Congratulations to these companies for their dedication.

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2018

3PL & COLD STORAGE PROVIDERS

CONTROLLED LT L

RING TE LIVE MP DE ER

• ES T. 198 2 •

E UR AT

Crystal Cheney

National Accounts Manager

864.612.8813 Cell 410.770.7171 Fax www.hmbayinc.com crystal.cheney@hmbayinc.net

Logistics

Regional Office: 494 Sandpiper Drive Boiling Springs, SC 29316

CONTROLLED LT L L HT SO UTIONS EIG FR

2018 TOP

E UR AT

L HT SO UTIONS EIG FR

THE 13TH ANNUAL

RING TE LIVE MP DE ER

TOP

• ES T. 198 2 •

Maintaining the cold chain is vital to protecting and meeting the demands of today's everchanging supply chain. The companies on our 2018 list each play an important role in keeping up with that challenge. Diverse in their capabilities and the customers they serve, each 3PL and cold storage provider continues to improve their expertise and keep up with the latest temperature monitoring technologies and systems. Congratulations to these companies for their dedication.

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ON THE MENU

ON THE MENU

OCTOBER 2015 ISSUE NO. 171

August 2018 ISSUE NO. 199

16

COLUMNS FOR STARTERS

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COVER STORY

B rexit May Impact UK’s Supply Chain

Despite the abundant food supply so many of us enjoy, the global food chain remains fragile and is prone to risk.

COOL INSIGHTS

14

END -TO-END COLD CHAIN INTEGRITY: IT’S ABOUT MORE THAN COMPLIANCE From capacity constraints and labor shortages to changing buying habits, the global cold chain faces numerous risks, all while maintaining food safety.

FEATURES THIRD-PARTY & REFRIGERATED LOGISTICS

24

SMA 7 Years Later: F Is it Enough?

Experts weigh-in on the law’s effectiveness and offer solutions for America’s food safety problem.

SPECIAL REPORT

30

Food Logistics’ 2018 Top 3PL & Cold Storage Providers

The annual award provides an up-to-date list of the industry’s top providers, with a summary of their capabilities.

SECTOR REPORTS WAREHOUSING

46

R obotics Evolution: To Find Your Advantage, Look Deep

More than any single breakthrough, success in this budding robotics age requires a holistic approach.

TRANSPORTATION

52

P rotecting the Food Supply in Transit

Reefer and trailer manufacturers are constantly innovating to keep the food supply safe while meeting government regulations.

O vercoming the Barriers to Cold Chain Acceptance

The concept of maintaining constant temperature is relatively new to emerging countries, creating challenges that excite the industry’s most innovative players.

FOOD (AND MORE) FOR THOUGHT

SOFTWARE & TECHNOLOGY

54

With a more extensive and complex supply chain, the food and beverage industry is poised to benefit from blockchain technology.

OCEAN PORTS & CARRIERS

56

60

B lockchain and Proactive Planning

A utomation Advances at Seaports

L essons Learned for Food and Agroterrorism Defense

Little is known about the results of Rhodesia’s chemical and biological war, but its low-tech approach and easily obtained ingredients is a warning in these uncertain times.

DEPARTMENTS

The paper-intensive port environment is yielding to software and technology that promises to streamline the movement of cargo and information.

Supply Scan 12 Food on the Move 59 Ad Index 8

WEB EXCLUSIVES • Safety First, Reducing Liability Second

foodlogistics.com/21014606

• The Pace of Change Won’t Falter in the Food Industry foodlogistics.com/21013352

• Mastering the Complexities of the Cold Chain

foodlogistics.com/21012588

Published and copyrighted 2018 by AC Business Media Inc. All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording or any information storage or retrieval system, without written permission from the publisher.

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FOOD LOGISTICS | AUGUST 2018

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www.foodlogistics.com

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FOR STARTERS

FROM THE EDITOR’S DESK

BREXIT MAY IMPACT UK’S FOOD SUPPLY

O

SOWINSKI

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n July 24, a headline in The Guardian caught my attention: “Raab admits planning to secure food supply for no-deal Brexit.”

It seems there is growing concern that if the U.K. is unable to reach a Brexit departure deal with the European Union that Britain’s food supply could be affected. According to the news report, Dominic Raab, the U.K.’s Brexit secretary, rejected claims that the government was stockpiling food, but he did acknowledge that the government was working with the food industry to make sure there would be no disruption if a deal was not reached.

Meanwhile, the government is rolling out about 70 contingency measures in case a deal cannot be reached. Already, the U.K. is stockpiling drugs, medical devices and supplies, especially medicines with short shelf lives that may need to be flown in if British ports are impacted. For that matter, the Ministry of Defence is said to be considering using the Royal Air Force to transport food supplies throughout the U.K. if necessary.

It’s hoped that the U.K. can negotiate a withdrawal deal with Brussels by October, but thus far, the UK’s proposals have not gained much traction.

In the developed world, most of us take ample food supplies for granted. Yet, this news out of the U.K. should get the rest of us thinking about what it would take to disrupt our own country’s food supply.

Notwithstanding catastrophic natural disasters like drought and

disease that could affect the food supply, the one that gives me a fair amount of anxiety is agroterrorism.

Dr. Bob Norton, chair of the Auburn University Food System Institute’s Food and Water Defense Working Group (aufsi.auburn.edu/ fooddefense) and a member of Food Logistics’ editorial advisory board, addresses the topic of agroterrorism in this month’s Food (and More) For Thought column.

Admittedly, America’s food supply is extremely vulnerable—there’s a low barrier to entry, and little skill is needed to pull off an attack, which could come in a variety of ways ranging from the introduction of pathogens to livestock, to manipulating a food pasteurizer at a major food facility, to an electromagnetic pulse (EMP) attack on the United States.

Leading logistics providers that support that food supply chain are continually evaluating risk and fine-tuning their risk assessment plans to respond to agroterrorism and other threats. You’ll find many of them included in Food Logistics’ 2018 Top 3PL & Cold Storage Providers list, starting on page 30.

Despite the abundant food supply that so many of us enjoy, the global food chain remains fragile and prone to a multitude of risk. We need to work together—industry, consumers and government agencies—to lesson those risks.

Enjoy the read.

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

DETAILS

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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 Assistant Editor Amy Wunderlin awunderlin@ACBusinessMedia.com Web & Copy 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, Chief Supply Chain and Commercial Officer, ScanTech Sciences 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 INC. Chairman Anil Narang President and CEO Carl Wistreich CFO JoAnn Breuchel Digital Operations Manager Nick Raether Digital Sales Manager Monique Terrazas

Published and copyrighted 2018 by AC Business Media Inc. All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording, or any information storage or retrieval system, without written permission from the publisher.

FOOD LOGISTICS | AUGUST 2018

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Be innovative • Be committed • Be successful

Successful Fresh Food Distribution: fast, flexible, ergonomic

This is why numerous retailers across the globe rely on logistics systems from WITRON.

The storage and picking of fresh food is a constant challenge for logistics experts. The key: the newly developed OFP (Optimal Fresh Picking) from WITRON, which combines all applications in one system. The store-friendly picking of full totes as well as single piece picking is done within one automated system: cost-efficient, flexible, short throughput times, ergonomic, space saving, scalable, and compact.

General contractor for the design, realization, and the operation of storage and picking systems for retail business and industry.

www.witron.com

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SUPPLY SCAN

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

STEEL KING INTRODUCES DURABLE, ENGINEERED DRIVE-IN RACK SYSTEMS

Steel King Industries Inc. recently introduced the Drive-In Rack Systems, a new service that delivers cost-effective storage in high-density storage applications.

Requiring fewer aisles and providing better cube utilization than selective racks, drive-in and drive-thru racking allows users to store 75 percent more pallets than selective racking. Forklifts drive directly into the rack, allowing storage of two or more pallets deep. Flared drive-in support rails help forklift drivers enter the pallet rack by guiding the pallet into the bay. A drive-in pallet rack system uses the same entry and exit point for each storage bay, providing last in, first out access. The system loads on one side and unloads from another for a first in, first out flow.

Since the system is often used in high turnover areas and operated in close proximity to forklift traffic, drive-in and drive-thru racks are prone to greater wear and tear than other rack structures. Steel King’s drive-in rack system is engineered and manufactured to better withstand this wear.

The system features unlimited storage depth and is ideal for high-traffic and cooler/ freezer installations. The company offers an optional offset leg design for easier handling of pallets, and the welded frame construction delivers high rigidity and strength.

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CONSUMER GOODS DEALMAKING REACHES 15-YEAR HIGH

Facing competition from upstart brands, consumer giants are buying growth where it can’t be created, reaching a 15-year high last year on dealmaking.

Deals in consumer goods rose 45 percent over 2017, with the value of deals rising 190 percent, according to a survey from OC&C Strategy Consultants.

The deals reflect an array of strategies, CNBC reports. Some companies are investing in digital companies, while others are emerging in trendy categories like organic food.

The OC&C survey analyzed the top 50 international consumer goods companies based on their 2017 sales. Last year, 10 of the 23 food and drink companies had declining revenue, but the beer and spirits category fared better.

According to the report, consumer companies had 2.6 percent growth last year, while volume rose 0.6 percent. With the boost from dealmaking, companies grew sales 5.7 percent.

STARBUCKS, MCDONALD’S UNITE FOR SUSTAINABLE CUPS

Usually seen as competitors, Starbucks and McDonald’s are uniting to create a fully recyclable compostable cup, Fast Company reports. Within the next three years, the multi-billion-dollar global giants are aiming to include not just a cup, but a lid and straw to go along with it as well.

The companies have been in talks to partner on various sustainability initiatives for several years, but the opportunity finally came after Starbucks launched the NextGen Cup Challenge.

The challenge, which will begin in September, invites entrepreneurs to develop materials and designs to replace traditional cups. Winners of the challenge will be enrolled in an accelerator program and could receive up to $1 million in funding, Fast Company reports.

OpenIDEO, an online innovation platform, will run the competition, and the accelerator companies will work closely with McDonald’s and Starbucks to develop cup technologies that are able to handle real-world use and scale.

www.foodlogistics.com

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SUPPLY SCAN

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

FOODSERVICE PACKAGING INSTITUTE WEBSITE HELPS IN CALIFORNIA’S RECYCLING INITIATIVE

MICRO-SHOPPING ON THE RISE

Micro-shopping trips are becoming more popular thanks to lockers click-and-collect services.

According to Forbes, micro-shopping trips are defined as trips that take less than five minutes. The short visits are sweeping into the grocery sector due to the rise of e-commerce. In fact, Forbes reports that micro-shopping trips climbed 8.7 percent at Whole Foods stores after Amazon installed Amazon Lockers, a place where shoppers can pick up preordered items.

While micro-trips are the exact opposite of what retailers strive for, according to Forbes, there are advantages within micro-visits, such as more efficient store formats and improved targeted marketing. Consumers also have the ability to shop wherever and however they want through their smart device, and while the visits are short, shoppers are still prone to split-second purchase decisions.

According to WSL Strategic Retail, 34 percent of shoppers that use click-and-collect shopping features buy more than intended, and 89 percent of those who use it are satisfied with the experience because it is convenient.

But while convenience is a crucial part of micro-shopping, not all shoppers insist on taking shorter trips. Lockers won’t capture loyalty or the human connection that is still needed while shopping.

COSTCO TAGS ZEST FRESH TO HEIGHTEN FRESH FOOD SUPPLY CHAIN

Zest Labs is partnering with Costco Wholesale to define and verify best practices that ensure delivered freshness for the retailer’s produce and provide end-to-end fresh food supply chain visibility. With Zest Lab’s Zest Fresh solution, Costco will also be able to help reduce waste while maintaining competitive prices on fresh food.

The companies are currently working together to optimize delivered freshness of produce from suppliers in California to warehouses on the West and East coasts. Initial work is underway to provide analytic insights into Costco’s supply chain to help better manage freshness.

“Costco Wholesale is a pioneer in the retail industry and we’re thrilled to be working with them to help improve the delivered freshness of produce for their members,” says Peter Mehring, CEO of Zest Labs. “Zest Fresh helps to proactively manage the fresh food supply chain to maximize delivered shelf life, reduce store waste by 50 percent or more and deliver value that drives customer satisfaction.”

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California has set an ambitious goal of 75 percent recycling, composting or source reduction of solid waste by 2020. The Foodservice Packaging Institute hopes to assist the state in its progress with a new website, www.RecycleFSPinCA.org.

The website offers free resources that are tailored toward key stakeholders, including communities, material recovery facilities, composters, anaerobic digestion facilities and recycling end markets. Resources include overviews of California-specific recycling and composting studies, an interactive map of end markets, information sheets for materials C recovery facilities, resident outreach materials and more.

“California has the potential to recycle and compost more Background foodservice packaging, whether through orPackaging in-storeInstitute pro- commissioned two studie Thecurbside Foodservice recycling in California. grams,packaging ” explains Lynn Dyer, president of Foodservice Packaging Institute.

The first study, Foodservice Packaging Recycling in California M Associates Inc.,packaging surveyed material recovery “The foodservice industry is facilities (MRFs) in items accepted, how thetool materials pleased to were provide this online that are handled and proc accepting the materials. The study surveyed 85 MRFs operatin will hopefully to the recovery of of the recycling volum respondedlead represented over 80 percent if they sorted or more asked quality materials. ” disposed of the items, regardless of wh type of commodity bale they were sorted into. Foodservice pa Foodservice operators looking to below: meet the state’s mandatory commerCategories Foodservice Packaging Item cial recycling laws will find a five-step Paper Cups; Take-out containers; P toolkit to assist them with a new proPlastic Rigid clamshells and cups; R gram to recycle or compost foodservice Metal Aluminum foil containers an packaging in-store.

FOODSERVIC

The second study, Availability of Recycling for Foodservice Pac

by Resource Recycling Systems (RRS), reviewed residential rec in California that accept various foodservice packaging items. T recycling guidelines of every community over 7,200 residents i population. The study also included a select number of random www.foodlogistics.com remaining non-surveyed communities and generate a statewid communities’ guidelines were rated on how they described th Foodservice packaging items included in the study are shown b Categories

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FOOD ON THE MOVE

LOGISTICS TRENDS IN OUR INDUSTRY

PORT OF LONG BEACH EYES GRANT FOR 140 NEAR-ZERO EMISSION TRUCKS

The Port of Long Beach has applied for an $8 million grant from the California Energy Commission to help deploy 140 near-zero emission trucks, according to the Press Telegram. Some of the trucks are expected to be in operation by the end of the year.

The updated Clean Air Action Plan requires the port to set new emission standards for trucks hauling goods to and from the ports, develop environmentally-friendly technology, and consider implementing guidelines on when terminals open and how they should accept appointments via an online system.

The truck appointment system could have the widest effect on the area outside the port, according to the Press Telegram. It could potentially reduce the rush to pick up cargo at

the ports, resulting in less freeway traffic and shorter lines at container terminals. However, the appointment system isn’t expected to come online until 2020.

EVERGREEN LINE RENEWS INVESTMENT IN CARRIER TRANSICOLD PRIMELINE SYSTEM

Evergreen Line is enhancing its fleet with 3,000 containers refrigerated by Carrier Transicold PrimeLINE units. The company was chosen for their refrigeration performance and power efficiency.

“With its digital scroll compressor, the PrimeLINE unit has a reputation for energy efficiency and a value proposition that includes rapid pull-down, tight temperature control, high air-flow performance and excellent cost of ownership,” says Andrew See, general manager, Global Container Refrigeration, Greater China, Carrier Transicold. “Evergreen’s PrimeLINE units feature our LED control-display option which the shipping line considers advantageous for ship crew members visually monitoring stacked containers onboard a vessel.”

A majority of the units will be installed on 40-foot-high cube containers, with the balance mounted on 20-foot containers.

DAT SOLUTIONS’ MONTHLY FREIGHT REPORT

Top 10 Markets for Reefer Freight So Far Mark Montague is an industry rate analyst for DAT Solutions, which operates the DAT network of load boards and RateView rate-analysis tool.

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

Montague is based in Portland, Oregon.

For information, visit www.dat.com.

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June capped an unprecedented 15-month run of spot market rate increases, likely to turn into the longest sustained period of pricing power for truckers since deregulation in 1980 before it’s done.

The national average spot rate for refrigerated truckload freight climbed to $2.69 per mile in June, an all-time record.

That’s 16 cents higher than May and 58 cents higher compared to June 2017. The average reefer load-to-truck ratio was 10.1 in June, meaning there were 10.1 available loads for every truck on the spot market.

Rates are high because there’s been so much demand for capacity. While no U.S. market had more than 1 million outbound refrigerated load posts in 2017, three mar-

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By Mark Montague

kets are on pace to cross that threshold in 2018.

Among the Top 10 markets for outbound reefer freight volume so far this year, the two Florida markets of Lakeland/ Orlando (27th on last year’s list) and Miami (40th) made huge jumps. Florida is generating more out-of-season and in-season produce, and Miami continues to be an active hub for produce imports.

Produce from Mexico has boosted load posts out of McAllen, Texas, which was No. 26 last year. Indianapolis; Twin Falls, Idaho; and Joliet, Illinois each fell out of the Top 10 from 2017.

For all the despairing shippers out there: June is the traditional peak for

reefer rates, and by the middle of July prices were retreating. The questions going into September are what the pace of moderation may be, and what effect it will have on contract rates as shippers try to secure long-term capacity.

www.foodlogistics.com

8/2/18 8:36 AM

FOOD ON THE MOVE

NYC TO INVEST $100 MILLION IN FREIGHT INFRASTRUCTURE

New York City has announced plans to invest up to $100 million in freight infrastructure. The initiative, Freight NYC, aims to shift more of the food, products and materials that are brought into the city each year by trucks to trains and ships.

Freight NYC also wants to create four small freight yards along an existing freight rail line, providing new offloading points for goods carted by trains. If that plan moves forward, it could potentially reduce the distance that trucks would need to travel to deliver cargo to their final destination, Crain’s reports.

The price for the small rail facilities is still unknown.

NYC has been searching for alternative ways to deliver cargo to the city for years. According to Crain’s, 13 million trucks deliver to the city’s five boroughs every year, bringing in about 200 million tons of goods and materials, adding pollution and greenhouse gases to the city.

www.foodlogistics.com

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LOGISTICS TRENDS IN OUR INDUSTRY

KROGER TESTS AUTONOMOUS VEHICLES FOR GROCERY DELIVERY

In June, Kroger announced its plans to partner with driverless car company Nuro to deliver groceries using its autonomous vehicles. The partnership comes as the company continues to tackle last-mile delivery challenges.

Earlier this year, Kroger acquired meal kit company Home Chef and British online grocer Ocado, which it will use to build automated warehouses throughout the United States.

The Kroger and Nuro partnership is expected to begin this fall and will experiment with technology in areas that both overlap with and are separate from where it plans to build its Ocado warehouses.

Nuro plans on partnering with other retailers beyond Kroger, CNBC reports. The company is expecting that it will take time to build out the necessary infrastructure to support the deliveries. While it is planning for expansion, it may take several years before it spreads to the entire country.

DAIMLER COMMITS TO ELECTRIC TRUCKS

Daimler Trucks will launch a full line of electric trucks and buses, starting with a small-scale pilot later this year before moving to full-scale production by 2021.

The nearly silent, electric version of its Freightliner Cascadia heavy-duty truck was unveiled during a meeting with Wall Street analysts and investors in June, Trucks.com reports.

The Freightliner truck that it is modeled after is the top-selling heavy-duty truck in the Untied States.

The company is expected to build 30 of the Freightliner trucks to test out later this year. The goal is to learn how they perform and how customers will use them before ramping up to fullscale production.

Daimler is moving toward electric trucks and buses as regulators globally increase emission rules. The trucking company’s commitment to electric trucks will face competition with the likes of Thor Trucks and Tesla. However, the company has a commanding market position in the U.S., a vast dealership network and a book of customers who order trucks by the hundreds at a time, Trucks.com reports.

AUGUST 2018 | FOOD LOGISTICS

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COOL INSIGHTS

BY DAVID APPEL

OVERCOMING THE BARRIERS TO COLD CHAIN ACCEPTANCE I VIETNAM’S EXPORTS APPEL

David Appel is the president of Carrier Transicold & Refrigeration Systems. He is responsible for leveraging Carrier’s global capabilities and technologies across the full cold chain, from farmto-fork, building upon the successful performances of the Carrier Transicold, Sensitech, Carrier Commercial Refrigeration and Taylor foodservice businesses.

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n developed economies, we take for granted that fresh, chilled and frozen foods have been properly maintained in a controlled environment from farm-tofork. For example, the vast majority of bananas sold in the United States are imported from Central and South America in refrigerated containers, a journey that by sea alone typically takes one to three weeks.

At Carrier Transicold, we work closely with banana growers and shippers to manage and extend the cold chain, so that desired ripeness levels are reached while the fruit is traveling over oceans and roads.

In contrast, the concept of maintaining constant temperature is relatively new to emerging economies, where we see substantial challenges to building the cold chain, with many key elements lacking or underdeveloped. These include infrastructure, access to credit, advisory capacity for smallholder farms, coordination among participants, proper training to operate and maintain equipment, awareness of the link between food safety and the cold chain, low consumer demand and understanding about the advantages of refrigeration.

These challenges can create a self-fulfilling prophecy in emerging economies, where lower overall quality of perishable foods is accepted as the norm, modern retail penetration is typically low, small family-owned stores and open-

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OF FRUITS AND VEGETABLES ON THE RISE

According to Vietnam’s Ministry of Agriculture and Rural Development (MARD), the country’s exports of fruits and vegetables during the first half of 2018 reached $2 billion, a 19.7 percent rise over the same period last year.

China ranks as the largest market, importing $1.2 billion worth of product.

China’s close proximity to Vietnam, along with its similar consumer preferences, contribute to the strong demand. The other leading buyers for Vietnam’s fruits and vegetables include the United States ($46.7 million), Korea ($46.5 million) and Thailand ($26.1 million).

In 2017, the value of Vietnam’s fruit and vegetable exports surpassed $3.5 billion. The sector is aiming to expand by 10 to 15 percent this year to reach a value of $4 billion. Improvements in Vietnam’s cold chain capabilities are needed in order to hit that goal.

air markets are prevalent, and fruit and vegetable producers are often reluctant to invest in cold chain technology due to the seasonality of the business. All of these reasons work together to create an environment where the cold chain remains incomplete.

At the recent Carrier World Cold Chain Summit, we learned that Vietnam has a low application rate of cold chain-to-fresh food products, which is quite common in developing economies. With many providers and disconnected operating methods, breaks in the cold chain occur frequently. Unregulated supply chain providers often take shortcuts to save money, resulting in lower quality perishable foods.

But emerging countries are not going to suddenly replicate the cold chain technologies used in developed countries. We need to understand and appreciate their

challenges. What do they have, where do they have it, and how are they using it? Where are the gaps, and how can we demonstrate the benefits of reducing them? How should our products be adapted to suit local conditions, and how can we make them more affordable to take the focus off of short-term cost pressures versus investment for longer-term income through reduced food loss and improved food safety and quality?

These are the challenges that truly excite us. We believe that through better collaboration with local participants, such as the agreement we recently signed with Vietnam’s Ministry of Agriculture and Rural Development (MARD), we can assist in proving the triple win of the sustainable cold chain as a means to increasing sales and profits, reducing food waste and the associated CO2 emissions, and feeding more people. www.foodlogistics.com

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COVER STORY

BY AMY WUNDERLIN

END-TO-END COLD CHAIN INTEGRITY:

IT’S ABOUT MORE THAN COMPLI From capacity constraints and labor shortages to changing buying habits, the global cold chain faces numerous risks, all while maintaining food safety.

There just isn't enough space

to service the ask.”

Carl Fowler, senior vice president of business development, Americold

16

E

nsuring the safety of perishable and frozen foods is the No. 1 priority of every cold storage and logistics provider, but the complexity of today's supply chain leaves the cold chain prone to numerous risks. According to Carl Fowler, senior vice president of business development at Americold, labor shortages, capacity constraints, trade uncertainties and changing buying habits are among the biggest challenges providers currently face.

“Ensuring food safety and regulatory compliance is critical, but companies have a pretty good

FOOD LOGISTICS | AUGUST 2018

FLOG0818_16-23_CoverStory.indd 16

handle on that. The food logistics industry really sets the bar in that regard for other industries, born out of necessity. But [the risk today] is really around the labor issues, capacity constraints and some of the transportation head winds,” Fowler says. “What distinguishes the good providers are the ones who have plans and strong corporate strategies on how we are mitigating those risks on behalf of our clients.”

Capacity Crunch On both the warehousing and transportation side, a lack of capacity, driven in large part by population

growth and changing consumer buy patterns, has increased the demand in temp-controlled distribution.

Meaning, "there just isn’t enough space to service the ask,” explains Fowler.

This is further exacerbated by the fact that temp-controlled distribution is really capital intensive.

“It’s a big expense, and it requires a high level of sophistication when you’re talking about those large refrigeration systems and what it takes to maintain them,” notes Fowler. “It’s not like standing up a dry, conventional space that is easily transformed to meet various needs. These www.foodlogistics.com

8/2/18 6:30 PM

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 Americold's Tacoma, Washington cold storage facility

are purpose-built facilities, and spec build really doesn’t happen.”

Because of that capital requirement, he adds, companies are less likely to lock into a long-term commitment.

“We don’t spec build; we build based on commitment. That makes it difficult for organizations to find that temp-controlled storage space they need, and when they do need it, it’s not always readily available,” Fowler says, noting, “We’re working with our customers to help them plan better and encouraging them to lock into fixed commitments to ensure that space is there to protect www.foodlogistics.com

FLOG0818_16-23_CoverStory.indd 17

them during their peak season swings so they don’t find themselves in a position where they are scrambling to try to find storage space.”

Guaranteed warehousing also eliminates the complications with maintaining inventory across multiple locations and lowers the number of touches and chances for damage and loss.

On the transportation side, the industry is also suffering from a capacity shortfall at the moment,

driven by the driver shortage, says Kirk Hoover, senior director of business development at Americold.

“I’ve been in this business a long time, and I have never seen a driver shortage like this in the frozen, temp-controlled business. We’ve always had owner-operators, carriers we could work with, people we could go to. That’s not there today; those resources are drying up, and it’s going to continue to be a real issue as we go forward,” Hoover warns.

 Temperaturecontrolled facilities are typically purpose built and highly sophisticated, and thus extremely capital intensive.

AUGUST 2018 | FOOD LOGISTICS

17

8/2/18 6:30 PM

COVER STORY

continued

 Partner collaboration is key in solving the capacity crunch at New Orleans Cold Storage.

 The extreme temps of the cold storage environment also make finding skilled labor a challenge.

In fact, many shippers are already beginning to feel the pressure.

“There just isn’t enough temp-controlled rolling assets to service demand.

Some markets you have a 25 to 35 percent carrier call off rate, where loads just aren’t going claimed. If you can’t get your freight moved, it’s awfully hard to service that end customer. It’s really put a lot of pressure on the retailers, manufacturers and distributors to protect the revenue streams,” Fowler adds.

At a regional level, New Orleans Cold Storage (NOCS) is affected by the transportation capacity crunch every day, says Jim Henderson, vice president sales and marketing for NOCS. To meet the challenge, he explains, the cold storage company knows it can’t do it alone.

“At NOCS, our goal is to work closely with our customers to manage these challenges together,” Henderson says. “We understand that flexibility is the key. We can’t have labor standing by 24/7, hoping that trucks show up, so we must communicate schedules and innovate ways to track movement, then plan labor

to ensure we manage cost, but also moves freight is certainly true here,” have flexibility to help customers Fowler says. “We are able to use and transportation partners when our density and establish programs unforeseen challenges arise. that are consolidating multiple “For us, it’s all about being good, outbound orders into one, and we long-term partners and working are able to use that full truck move, closely with customers especially between our Rather than to plan ahead for potenconsolidation hubs, to make just saying no tial scenarios. Rather attractive lanes for carriers. when problems than just saying no when We’re able to use that size arise, we work problems arise, we work and scale to partner with hard to offer hard to offer solutions to the carrier partners in solutions our eco-system to secure mitigate costs," he adds. to mitigate capacity, and at times, even To that point, Americosts.” cold’s Fowler agrees. leverage our own internal “We can’t just throw our Jim Henderson, vice infrastructure to bridge president sales and hands up and say, ‘Well, some of those gaps as well.” marketing, New Orleans Cold Storage that’s it.’ We’ve had to For example, instead of find alternative solutions tendering a carrier from to mitigate those risks on behalf of one of its major distribution centers our clients.”

(DCs) with four or five stops and 10 As one the largest players in the manufacturers on the load, Amerispace, Americold’s solution has cold can put one or two stops on a been to use its density to establish truck. This, in turn, attracts carriers consolidation programs. because, Hoover says, it’s an easier “The old adage that freight run with fewer stops and a quicker turn around. It also increases carrier profitability.

“By building the loads that best suit their needs, we can help our carrier partners increase profitability, while still servicing our customers’ needs for on-time delivery and mitigating our capacity risk,” Fowler explains, adding, “We have one of the largest networks in the country, and it puts us in a position to be able to leverage those freight flows to reduce the number of carrier call offs or no shows.”

Labor Shortage It’s nearly impossible to talk supply chain without talking labor— and temp-controlled assets are

18

FOOD LOGISTICS | AUGUST 2018

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COVER STORY

continued

no exception. For one, there is not enough of it. Secondly, the complexities of the cold chain require a certain level of skill.

“The unemployment rate is very low and is having an impact on businesses across the United States.

We certainly feel it in our industry,” Fowler says.

The cold chain’s difficult working

environment is a major factor, as well as increased competition from e-commerce businesses such as Amazon who continue to invest in large-scale DCs. Technology is helping to solve some of those challenges though.

According to Marc Beasley, vice president of food strategy and business development at Sensitech, a provider of cold chain visibility solutions, “the industry is increas-

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ingly focused on adopting technology solutions that help drive automation and streamline processes.”

These technologies include hands-free data capture capabilities provided through wireless and real-time monitoring solutions, collaborative software solutions that help align standards and processes during hand-offs in the supply chain, and data analytics that provide insights to drive efficiency and improvements.

Where providers have high-labor content and labor challenged markets, Americold’s Fowler says there is also a need for increased automation.

“There will always be a need for conventional space because automation is not a one-size-fits-all solution, but where you have high velocity, high touch operations, where you can eliminate redundant work and errors, automation make sense.”

Beasley adds that the nature of supply chains, with multiple hand-offs between Where you suppliers, carriers, DCs and stores, have high lends itself well to velocity, automated tasks. high touch “The human facoperations, tor in the process of automation hand-offs is where makes sense.” we see the greatest Carl Fowler, senior risks for cold chains. vice president of business Lack of training, not development, Americold understanding or implementing best practices around cold chain, and improper usage of equipment can all result in quality risks, including poor temperature,” he explains.

Trade Uncertainty In July, The Wall Street Journal reported record amounts of meat and poultry had begun to fill U.S. warehouses amid ongoing trade disputes and surging supplies. Agriculture analysts estimated more than 2.5 billion pounds of beef, pork, poultry and turkey stockpiled in cold-storage warehouses, whose suppliers rely on foreign exports.

Grain farmers are also already feeling the impacts of the Trump www.foodlogistics.com

8/2/18 6:30 PM

 NOCS' Jourdan Road warehouse offers on-dock cold storage directly from vessel to tempcontrolled facility.

Administration’s tariffs, with soybean prices falling from about $10.50 in May to about $8.50 a bushel at press time. China, the world’s largest importer of soybeans, imposed a 25 percent tariff on soybean imports effective July 6, largely in retaliation to the Trump Administration’s tariffs on $34 billion worth of steel, aluminum and other goods the United States imported from China.

And unfortunately the effects of these inventory surpluses will be felt throughout the supply chain.

“As customers try to export and tariffs are being placed on product, inventory swells in an already constrained market make it difficult for our food producers to find space to accommodate that inventory swell as that uncertainty works its way out,” Fowler explains.

Fortunately for Americold, however, through technology and people, Fowler says they’ve been able to create a flexible network in a fixed-asset environment.

“Through visibility tools, when customers’ demand spikes unexpectedly, we have the ability to quickly look across our network and understand where we have space and understand what the impact of storing it there is,” Fowler says. “We can help our customers make good, sound decisions on where to put that inventory quickly to protect their manufacturing and production schedules and help them maintain food safety and product integrity by keeping it at the right temp.”

Hoover adds: “We’re always trying to find an alternative solution for our www.foodlogistics.com

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COVER STORY

continued

customers when they get into a situation like that, and fortunately because of our infrastructure, we can typically do that.”

Changing Buying Habits How people purchase and acquire their food has also created new risk in the food supply chain. Ten years ago consumers were buying everything in bulk, but today the industry is seeing a shift to faster turns, smaller order quantities and growing urban market storage, Fowler says.

“You’re talking about speed, velocity and order size all being impacted, so you have to be a lot more agile and nimble on your replenishment strategies,” he adds.

Demand for fresh over frozen and ready-made food kits, as well as increased competition from e-commerce players like AmazonFresh, are further disrupting the market.

“As more outlets sell perishable foods, they must excel at meeting high-quality standards to drive traffic to their stores instead of to the competition,” Sensitech’s Beasley says. “Achieving consistent freshness and quality is then a larger challenge because cold chains need to evolve to handle the stricter requirements.”

Beasley notes that Sensitech has seen the best results from retailers who collaborate with suppliers, transport companies and cold storage operators to identify and solve problems in the cold chain.

Speed, Americold has also seen a move toward a more velocity and collaborative approach and, in response, has reorder size are all shaped its customer-facing model to focus more on being impacted. solving problems as opposed to simply being space You have to providers. Meaning, they now have to think about be a lot more how clicks and ships impact how retailers order. agile and “We’ve had to provide those delivery sequences nimble to retail outlets so they can service that new demand on your efficiently and effectively,” Fowler says, which rereplenishment quires Americold to lead with supply chain solutions strategies.” in those customer engagements to better underCarl Fowler, senior stand the shipping demands on their part. vice president of business Those supply chain solutions include Americold’s development, web portal, which gives its customers total supply Americold chain visibility.

“Those types of things have become very valuable to our customer base, as well as to new potential customers that look to Americold to see how they can best manage their dayto-day business,” notes Hoover. “It is a demand in the business that we have that type of technology for our customer base.”

Beasley adds to Hoover’s point that the need for comprehensive, end-to-end transparency of cold chain management and product integrity is clear and will only continue to grow as consumer buying habits evolve.

“The idea of farm-to-fork tracking has always been appealing to the industry, and now, technologies are better able to provide this in a comprehensive manner,” he says. “Low cost sensors, combined with wireless data transmission and cloud-based platforms, now enable each segment of the supply chain to share data and be integrated, driving further collaboration. The key is to capture data that drives actionable outcomes. Data for data’s sake is not useful.”

22

FOOD LOGISTICS | AUGUST 2018

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THIRD-PARTY & REFRIGERATED LOGISTICS

FSMA 7 YEARS LATER: IS IT ENOUGH?

Even after the introduction of the historic Food Safety Modernization Act in 2011, food recalls continue to wreak havoc on the food supply chain.

Experts weigh-in on the law’s effectiveness and offer solutions for America’s food safety problem.

I

n 2006, spinach contaminated with E. coli from a California farm led to the deaths of three people and sickened nearly 200 more. As a result, public interest in how food safely moves from field to fork grew, leading President Barack Obama to sign the Food Safety

24

FOOD LOGISTICS | AUGUST 2018

Modernization Act (FSMA) into law in 2011.

Now, nearly a decade later, regulatory compliance and food safety remain a top concern for the food logistics sector, and rightfully so, given the recent fatal outbreak of E. coli involving romaine lettuce. The April outbreak, which killed five people and sickened more than 200, was the largest E. coli flare up in 12 years when tainted spinach prompted legislative action.

The cause of the romaine lettuce outbreak, however, came as no

BY AMY WUNDERLIN

surprise to David Bernkopf, vice president and food industry advisor for SafetyChain Software, who acknowledges certain aspects of FSMA remain problematic. Samples of canal water in the Yuma, Arizona area were found to contain the same genetic strain of E.coli that caused the outbreak, according to a statement released by Dr. Scott Gottlieb, commissioner of the federal Food and Drug Administration (FDA).

“It was no surprise to anybody that water has been implicated very specifically as the source of the contamination,” Bernkopf says. “If you look at FSMA, one of the things they are waiting to address is what they think about water quality and usage with produce, and that is an important element. What that really addresses is: What is the science and economics around that?”

And while FSMA was an important step toward creating a safer food supply chain—in fact, up until the 2006 event, there were no federal regulations at all requiring growers to test the quality of the water used on Food safety produce—reguand quality lations can only assurance do so much. demands are First of all, ever increasing. produce in itself Technology is is at a disadvanthe best tage, explains answer in Bernkopf. managing that “Not all food going forward. ” safety risks are the same,” David Bernkopf, VP and food industry he notes. “We advisor, SafetyChain have preventive controls, but produce doesn’t have an intervention where if there is actually something wrong we can destroy a pathogen or eliminate a food safety event. In absolute terms, can we protect the supply chain that is leafy greens and produce? I think the answer is pretty clear, and the science isn’t there.

“Are we going to grow all of our www.foodlogistics.com

produce in potable water (water that is safe to drink or to use in food preparation)? I don’t think so. So what’s a better solution?” he asks.

Unfortunately, he doesn’t have the answer, though he believes there could be a compromise.

“It’s about prevention or finding a satisfactory intervention that the consuming public accepts. And we’re not there yet,” he says. “There will always be some risk associated with produce as the science stands today. The key is going to be a lot of discussion about water and its safety and use in produce.”

So what can we do right now?

Bernkopf says the industry must a) keep better records and b) look to technology.

“The more that we can take advantage of technology in the space, the better we will all be. It will improve the industry dramatically,” he says. “We need to get rid of the pen, paper and clipboard forever, because as we move forward, that transparency of information is going to be more and more critical.

www.foodlogistics.com

Food safety and quality assurance demands are ever increasing, and technology is the best answer in managing that going forward.”

Local Doesn’t Mean Safer Bernkopf’s viewpoint seems even riskier when you consider today’s ever-growing farm-to-table trend.

“The millennial generation is driving, to a greater extent than any other generation, this idea of buying food locally,” explains Randy Fields, chairman and CEO of Repositrak.

“Suppose you lived in Detroit.

You actually think that one of those little farms in the middle of the city where a house once stood follows safe agricultural practices?

“So, the idea that local is safer is absurd,” Fields adds. “As localization

explodes on the scene, expect outbreaks to increase, not decrease, because the number of vendors is increasing, while the controls are decreasing over those guys. So, this isn’t going to get better, it’s going to get worse.”

The industry veteran’s outlook on the current state of food safety

AUGUST 2018 | FOOD LOGISTICS

25

3PL

The consuming public wants 100 percent safe food... but both the

science and economics don’t allow it to work.”

David Bernkopf, vice president and food industry advisor, SafetyChain

 Kellogg’s cereal brand Honey Smacks was among the dozens of food products recalled this summer.

26

The Problem with Exemptions

continued

in the United States may seem grim, but it’s the everyday reality at his company, which was originally founded to address the expected rise in regulatory requirements associated with FSMA. Today, Repositrak provides a compliance and commerce solution that offers customers a complete view of their supplier data to improve supply chain efficiency and reduce risk.

“I can help you decide that this guy follows good practices, this guy’s well rated, this guy is insured, all of those things. Absolutely true.

But, what I can’t do is guarantee that that guy isn’t going to have an accident,” Fields says.

Following that logic, he categorizes outbreaks in two ways: one caused by an accident and the other due to poor food safety practices.

For example, Kellogg’s cereal brand Honey Smack’s was linked to a salmonella outbreak in June, which at press time had infected 100 people in 33 states.

“Nobody on planet Earth would say, ‘What a terrible company that is.’ It’s not true; they’re great, and they follow excellent practice, but mistakes happen,” Fields explains.

However, he notes that can’t always be said for the small guy.

“Tom’s tomatoes, the guy down the street, I can’t say anything about his practices. He doesn’t follow good practice. So, in a way, you’re saying, ‘If he kills somebody, it’s because he doesn’t follow good practices.

It wasn’t an accident. And it wasn’t deliberate, but it was predictable. It was just a matter of when it would happen.’”

If you stay with good players that are documented and follow good practices, Fields adds, your risk is lower—but he emphasizes, it’s still not zero.

FOOD LOGISTICS | AUGUST 2018

little guys, because it might cost you a few dollars to be safe, you don’t In addition to the uncertainties have to be safe. You can be anything created by hyper-localization, the you want to be.’ I’m increasingly of sheer number of suppliers in the the opinion that that’s at the heart food supply chain is a problem in of what’s going to be the problem itself. According to the FDA, there going forward.” are about 200,000 registered faWhile Bernkopf agrees, he is also cilities in the food supply chain, but aware of FSMA’s dilemma between that doesn’t include farms or those best practices and best science. not registered with the FDA. Fields “The exemptions to the smaller estimates the true number is closer companies and smaller growers are to about 1 million players around really at odds with the regulations and the world that at some point touch the science. Should it be addressed? the food we eat.

The answer is yes. Ultimately, in my And if that estimate is true, that opinion, it should be all-encompassleaves more than a quarter million ing. But at the same time, it’s also a suppliers unregulated by FSMA. burden on them,” he notes.

Think of that roadside stand where So how do we keep our food safe you buy farm fresh eggs and tomawithout putting small farms out of toes, or that kale salad at your fabusiness? Bernkopf says it’s again vorite farm-to-table restaurant. It’s going to come down to compromise. unlikely they fall under “The consuming public FSMA’s rules, thus, eatwants 100-percent safe The ing produce from these food, and I don’t blame exemption holes establishments comes them, but the circumare too large, with an eat-at-yourstances around produce and the risk is own-risk philosophy. primarily in particular, both the “Localization is science and economics, with the socially driven, and I don’t allow it to work,” he people don’t know how you concludes. who are control that except to In the end, however, exempt.” the rules may be written put the truth out there.

And that’s very difficult,” by the retailers. We are Randy Fields, chairman and CEO, Fields notes. now seeing pressure Repositrak And this is not to make from the industry’s light of the FSMA rules, largest supermarkets which Fields does in fact believe ad- who are not willing to take a risk on dresses many of the United States’ a supplier even if they claim to be current food safety challenges, but exempt. he says the “exemption holes are “We’re seeing more and more too large, and the risk is primarily that the people who are in the most with the people who are exempt.” control of the supply chain, who are Currently, FSMA only requires the retailers and wholesalers, are very large farms, rather than all beginning to require that everyfarms, to sample and test the water body conform to a high standard,” used to grow and clean produce, says Fields. “In theory, if you do less and no farms are required to report than $500,000 a year of business, their data to the FDA until next you’re exempt from FSMA, if you’re year. Fields equates this to very a manufacturer or supplier. So now questionable gun control. you try to say to your retail cus“What if we had gun control laws tomer to whom you sell, ‘Hey, I’m that said, ‘If you have no criminal exempt, I don’t have to do anything.’ record whatsoever, you may not Well, how does the retailer know own a gun. If you have a criminal that you’re telling them the truth? record, have at it?’ Well, that’s what And does he want to take the risk we’re doing in food safety. What that you’re really exempt? They we’re saying is, ‘If you’re one of the don’t do that. So, we’re finding more www.foodlogistics.com

and more people in the supply chain saying, ‘Look, I don’t know if you’re exempt or you’re not exempt, but this is what you’re going to do if you want to supply me.’”

Taking Preventive Measures Only time will tell if FSMA can control America’s food safety woes, but until then, recalls, unfortunately, are still a fact of life. With an average price tag of more than $10 million (and that doesn’t include costs associated with brand damage or lost sales), that kind of financial hit is insurmountable for many companies. As a result, many are taking food safety into their own hands, demanding visibility into every aspect of their supply chain.

There are a number of platforms available to ensure compliance and provide access to greater supply chain traceability, including those offered by SafetyChain and Repositrak, but connected assets and sensors are also driving a lot of excitement in the area of preven-

tion. Even the seemingly simple pallet is taking a greater role in ensuring proper food safety, an area we have not seen a lot of progress until now. Lightning Technologies, based in Oxford, Michigan, hopes to disrupt how the industry views food safety in regards to pallets with its innovative hybrid “smart” pallet.

In fact, Lightning’s pallet, which is made from specially engineered plywood sprayed with a proprietary polyurea coating, was built primarily with food safety in mind. It is imbedded with an active RFID tag that makes it track and traceable, providing information like temperature and humidity and shock and movement. It’s durable and fire-retardant coating, developed in partnership with BASF, completely encapsulates the pallet, also making it sanitizable and impervious to the harborage of harmful bacteria.

Leading the charge in this pallet revolution is Lightning Technologies’ CEO Jeffery Owen and Rex Lowe, CEO of GARD, Lightning’s exclusive pooling partner and

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3PL

continued

We don’t know in every case [of a recall] if a pallet is involved,

but now we have the ability to track it.”

Jeffery Owen, CEO, Lightning Technologies

sales force. The duo has a long working relationship, with Owen manufacturing plastic pallets for Lowe’s former company, iGPS. Lowe founded iGPS, the first all-plastic pallet pool, following many years with the world’s oldest wood pallet manufacturer CHEP. “I wanted to do a plastic pallet. I was sick of wood; it was causing all kinds of problems that I couldn’t fix,” he recalls. “But after about eight years, I started thinking there’s also issues with the traditional plastic pallet. They’re very expensive to make. They’re very slippery when wet. There’s fire-related issues with them. If they’re not metal-reinforced, they’re pretty weak and flimsy. They don’t particularly do well in extreme cold or extreme hot. And so, in my search to find something that was even better than the plastic pallet, Jeffrey and I ran across each other again.”

Both Owen and Lowe were drawn to the challenges the produce industry, specifically, faces in regards to food safety.

“We’re excited that it’s really going to make a difference, and I really think that we are going to push other people to be better,” Owen says. “Everyone got lethargic with the wood pallet…but Rex is willing to be the gorilla in the room.

“We are prepared to go to the

TOP THREE REASONS FOR

market specifically for protein, produce, pharmaceuticals and electronics, and I think the big stores will appreciate it,” he adds.

It’s impossible to identify the percentage of food recalls related to pallets, but Lowe says it’s reasonable to assume they are part of the problem.

“It would stand to reason when you track a load from where its grown, all the way to where its delivered, that the pallet would play a role in either keeping it safe or messing it up, because everything moves from a pallet,” he explains.

“For 100 years there’s been no other choice for anybody to ship on. So, they keep the product boxed as best they can to keep it from touching the pallet, but mistakes happen.

And of all the recalls, and there’s some every month, you have to believe that at least half of them are due to the pallet, because that’s the touch point. Every piece of lettuce that you consume, at one point, was sitting on a pallet.”

And while there is no hard evidence to back that claim up, Lowe notes that eliminating the pallet as a variable in a potential food recall can help narrow down the culprit.

For example, Lowe says, if the contaminated romaine lettuce in the Yuma outbreak had been carried on a Lightning pallet, they would have been able to say, ‘This was the unit that it happened with, here’s the number of the pallet, this is where the load was delivered from,’ and maybe only part of Yuma

FOOD RECALLS

① UNDECLARED

② MICROBIOLOGICAL

to be the major cause for pulling products from store shelves. In 2017, there were 218 products affected.

The top allergens that find their way into processed foods are milk, egg and soy, and cross contamination only worsens

for 146 recalls in 2017. Listeria was found in cheese, salmonella was found in many product categories from chips to candy, and E. coli was found in beef.

ALLERGENS continue

218

RECALLS

the problem.

28

in 2017

CONTAMINATION accounted

③ FOREIGN

MATERIAL CONTAMINATION

accounted for 42 recalls in 2017, including metal, hard plastic and glass.

FOOD LOGISTICS | AUGUST 2018

146

RECALLS in 2017

42

RECALLS in 2017

would have been shut down instead of all of it.”

Owen adds: “We don’t know in every case [of a recall] if a pallet is involved, but now we have the ability to track it.”

Lowe also points out that they can pull up individual pallet data to provide up to a five-year history of everything the pallet has carried.

“RFID and the ability of our pallet to be completely encapsulated shows a whole different level of food safety that globally is going to impact how logistics are looked at for food,” Owen says. “Whether we start a trend, which I think we will, people will start looking at how best they can bring a solution to the table—whether it’s RFID tracking systems or some kind of new technology that’s pending. We’re working on so many technologies that we don’t want to go too far with the RFID because it might be outdated in the next year.”

The next big advancement in RFID technology may even be available as soon as 2019, Lowe notes, adding they are currently working with a think tank to develop an RFID tag that could detect within a certain range of cubic feet whether produce has any kind of E.coli, salmonella or listeria on it.

That could be game-changing.

“Nobody would get sick; the shipper just wouldn’t sell it,” he explains.

Repositrak’s Fields, however, is less worried about the buzz around track-and-trace capabilities. The key to food safety in his opinion is around prevention.

“The food industry is extraordinarily good when there’s the report of a problem, of getting it off the shelf,” he explains. “Now, the truth is, though, by the time somebody knows it happened, most of it’s been eaten. So, an ounce of prevention is worth a pound of cure. We’re putting the emphasis on the wrong syllable. Let’s just make sure that good players are in the system…and if good players are in the system, you will reduce, systemically, the number of outbreaks.”

www.foodlogistics.com

© 2018 Penske. All Rights Reserved.

Delays not only hurt your reputation, they also damage your bottom line. It’s why we’re dedicated to getting perishable products to market quickly and efficiently. All so you can keep your promises and your profits. It’s how we deliver confidence. Learn more at gopenske.com.

SPECIAL FEATURE

BY EDITORIAL STAFF

2018 TOP 3PL & COLD T

STORAGE PROVIDERS

here is no denying the crucial role third-party logistics (3PLs) and cold storage providers play in the global food supply chain, which increasingly includes temp-controlled products. Food Logistics’ annual Top 3PL & Cold Storage Providers features those who are doing their part to ensure an integrated and safe global food supply chain. The list is a valuable resource for transportation decision-makers, giving them a glimpse into the capabilities of these companies and the geographic regions they serve. The companies on this year’s Top 3PL & Cold Storage Providers list continue to improve their expertise and keep up with the latest temperature monitoring technologies, transportation management systems and warehouse management systems. Their capabilities are as diverse as the customers they serve, from small local producers to global food manufacturers—all of whom have specific requirements. The following are expanded profiles of a few of the companies on this year’s list.

A.N. Deringer

Americold

Burris Logistics

Location: St. Albans, Vermont Website: www.anderinger.com Year Founded: 1919 Number of Employees: 551 Area Served: International Asset/Non-Asset: Both Worth Noting: As the fifth-largest privately-held customs brokers in North America, Deringer provides integrated supply chain solutions, including customs brokerage, international freight forwarding, warehousing and distribution. Its USDA meat inspection facilities facilitate the smooth flow of imported and exported shipments.

Deringer’s Trade Advisory Group also provides FDA food facility registration and agency support.

Location: Atlanta, Georgia Website: www.americold.com Year Founded: 1903 Number of Employees: 11,000 Area Served: International Asset/Non-Asset: Asset Worth Noting: Americold’s services are controlled by the customer through its online portal, i-3PL. Total supply chain control is in the palm of the custom2018 ers’ hand with any smart device, creating powerful analytics for critical decision-making.

Location: Milford, Delaware Website: www.burrislogistics.com Year Founded: 1925 Number of Employees: 1,676 Area Served: National Asset/Non-Asset: Both Worth Noting: Serving as a high-quality provider of customized perishable, multi-temperature supply chain solutions, Burris Logistics prides itself on its ability to learn from customers and the industries it serves to collaborate on and provide the best solutions for their supply chain needs.

30

FOOD LOGISTICS | AUGUST 2018

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TOP

www.foodlogistics.com

8/2/18 9:25 AM

THE POWER OF PERISHABLES

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Put the power of Florida’s leading perishables port to work for you. Visit us at porteverglades.net or call 800-421-0188.

FLOG0818_30-45_AwardListing.indd 31

8/2/18 9:25 AM

Bulk/ Liquid Bulk Air Ca Trans rgo porta tion Dedic ated C ontra Freigh ct Car t Forw riage ard Fleet Leasin ing g Interm odal Less than T rucklo Multiad Vendo r Con Ocean solida tion Rail Refrig erat Full T ed Truckin rucklo g ad Draya g e Se rvices Contin uou Fuel S s Moves aving s Prog Direc ram t Stor e Deli Truck load B very roker Rail/T age ruck Trans Full S load ervice Ma n a Custo ged T ms Br o kerag ransportat Other ion e

TOP 1

A.N. Deringer www.anderinger.com    

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Acme Distribution Centers www.acmedistribution.com

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AFN www.LoadAFN.com

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Allen Lund Company www.allenlund.com

5

Americold www.americold.com

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Amerifreight Systems www.amerifreightsystems.com

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Arctic Frozen Foods www.arcticfrozenfoods.com

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Atlanta Bonded Warehouse Corp. www.atlantabonded.com

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Axle Logistics www.axlelogistics.com

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11 Burris Logistics www.burrislogistics.com

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12 Carter Distribution www.carterdc.com

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14 Choptank Transport www.choptanktransport.com

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15 Cold Storage Solutions www.ColdStorageSolutions.com

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19 Custom Pro Logistics www.cprolx.com

Consulting services, including duty drawback, customs compliance services and regulatory audits, U.S. FDA agency services

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16 Columbian Logistics Network www.columbianlogistics.com

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13 CaseStack www.casestackconsolidation.com

18 Coyote Logistics www.coyote.com

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10 Blue Ribbon Transport www.blueribbontransport.com

17 Cousins Capital Group Inc. www.cousinslogistics.com

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WAREHOUSE/COLD STORAGE

Cross Dock Fulfillm ing ent Inven tory/C ost A MultiVendo ccounting r Con Pick/ solida Pack tion Assem Public bly Refrig .

W Privat e Refr arehousin g ig. Wa Rever rehou se Lo sing gistic Vendo s R ecall r Ma Wareh naged Inve ntory ousin g/Dis Blast t . Mg m Freez t. in g Inven tory M anage USDA ment /FDA Inspe Order c Assem tion bly Other

3PL SERVICES

2018

Pick and pack fulfillment, custom gel and refrigerated packaging manufacutring

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JIT plant support, mixing center

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20 Distribution 2000 Inc. www.dist2000.com Freight brokerage

21 DSC Logistics www.dsclogistics.com

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22 DSW Distribution Centers Inc. www.dswdist.com 23 Ease Logistics www.easelogistics.com

32

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8/2/18 9:25 AM

EXTENDING THE FLOAT.

Reduce refrigeration run time & better stabilize temperatures.

Safely float up to 12 hours while holding temperatures more stable and saving energy with Thermal Energy Storage.

• SAFELY REDUCE REFRIGERATION RUN TIME • 3X LONGER FLOAT • MORE STABLE TEMPERATURES • PROVEN ENERGY REDUCTION OVER 25%

vikingcold.com/fl

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8/2/18 9:25 AM

Bulk/ Liquid Bulk Air Ca Trans rgo porta tion Dedic ated C ontra Freigh ct Car t Forw riage ard Fleet Leasin ing g Interm odal Less than T rucklo Multiad Vendo r Con Ocean solida tion Rail Refrig erat Full T ed Truckin rucklo g ad Draya g e Se rvices Contin uou Fuel S s Moves aving s Prog Direc ram t Stor e Deli Truck load B very roker Rail/T age ruck Trans Full S load ervice Ma n a Custo ged T ms Br o kerag ransportat Other ion e

Cross Dock Fulfillm ing ent Inven tory/C ost A MultiVendo ccounting r Con Pick/ solida Pack tion Assem Public bly Refrig .

W Privat e Refr arehousin g ig. Wa Rever rehou se Lo sing gistic Vendo s R ecall r Ma Wareh naged Inve ntory ousin g/Dis Blast t . Mg m Freez t. in g Inven tory M anage USDA ment /FDA Inspe Order c Assem tion bly Other

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3PL SERVICES

2018

TOP 24 East Coast Warehouse & Distribution www.eastcoastwarehouse.com 25 Elston-Nationwide Carriers www.elstonnationwide.com 26 England Logistics www.englandlogistics.com

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27 Flagship Logistics Group www.flagshipfoodgroup.com

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29 FW Logistics www.fwlogistics.com

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30 H&M Bay Inc. www.hmbayinc.com

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34 Jarrett Logistics Systems www.jarrettlogistics.com 35 Johanson Transportation Service www.johansontrans.com

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37 Keller Logistics Group www.kellerlogistics.com

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39 Knichel Logistics www.knichellogistics.com

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42 Lineage Logistics www.lineagelogistics.com 43 LoadDelivered www.loaddelivered.com 44 Matson Logistics www.matsonlogistics.com

47 Metro Park Warehouses www.mpwus.com

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SQF certified

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48 MTC Logistics www.mtccold.com 49 New Orleans Cold Storage & Warehouse Co. Ltd. www.nocs.com

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45 Maverick Transportation www.mavericktransportation.com 46 MegaCorp Logistics www.MegaCorpLogistics.com

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40 KTI LTD www.ktiltd.com 41 Legion Logistics LLC www.jointhelegion.com

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36 Kane Is Able www.kaneisable.com

38 Kenco www.kencogroup.com

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32 International Cold Storage www.international-coldstorage.com 33 J.B. Hunt www.jbhunt.com

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28 FST Logistics www.fstlogistics.com

31 Hanover Logistics www.hanoverlogistics.com

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WAREHOUSE/COLD STORAGE

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Manufacturing plant hostling and shuttling

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Break bulk stevedoring, container loading, full package logistics

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High pressure processing

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Direct-to-consumer fulfillment, organic certified

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Custom packaging, kitting, labeling and display assembly

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www.foodlogistics.com

8/2/18 9:25 AM

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Bulk/ Liquid Bulk Air Ca Trans rgo porta tion Dedic ated C ontra Freigh ct Car t Forw riage ard Fleet Leasin ing g Interm odal Less than T rucklo Multiad Vendo r Con Ocean solida tion Rail Refrig erat Full T ed Truckin rucklo g ad Draya g e Se rvices Contin uou Fuel S s Moves aving s Prog Direc ram t Stor e Deli Truck load B very roker Rail/T age ruck Trans Full S load ervice Ma n a Custo ged T ms Br o kerag ransportat Other ion e

TOP 50 Newport St. Paul Cold Storage Co. www.newportcold.com 51 NFI www.nfiindustries.com

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52 ODW Logistics www.odwlogistics.com

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53 Penske Logistics www.PenskeLogistics.com

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2018

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54 Port Jersey Logistics www.portjersey.com 

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55 Port Logistics Refrigerated Services www.plrs.com 56 Prime Distribution Services www.prime3pl.com 57 Quality Distribution Inc. www.qdislc.com

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58 RBW Logistics Corp. www.rbwlogistics.com

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59 ReedTMS Logistics www.reedtms.com

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60 RLS Logistics www.rlslogistics.com

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62 Ruan www.ruan.com 63 Ryder System Inc. www.ryder.com

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64 Saddle Creek Logistics Services www.sclogistics.com

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65 Scotlynn Group of Companies www.scotlynn.com

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68 Sonwil Distribution Center www.sonwil.com

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69 Star Distribution Systems www.stardistribution.us

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70 States Logistics Services www.stateslogistics.com

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72 The Shippers Group www.shipperswarehouse.com 73 Total Distribution Inc. www.peoplesservices.com

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67 Service First Logistics Inc. www.sflcompanies.com

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66 Service Cold Storage LLC www.servicecold.biz

71 Sunset Transportation www.sunsettrans.com

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61 Romark Logistics www.romarklogistics.com              

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8/2/18 9:25 AM

Shaping chaos into order.

We transform today’s “information overload”

into guiding insights that help our customers know earlier and solve faster. Addressing complex problems with straightforward

solutions and translating the patterns and the possibilities, we enable customers to grow and change.

Lead Logistics Partner

Transportation Management

Third-Party Logistics

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Dynamic Supply Chain Leadership

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8/2/18 9:25 AM

SPECIAL FEATURE continued

Choptank Transport Location: Preston, Maryland Website: www.choptanktransport.com Year Founded: 2000 Number of Employees: 285 Area Served: International Asset/Non-Asset: Non-asset Worth Noting: Choptank Transport’s differentiators are attributed to investments made in the company’s technology and employee training, winning three training awards in the last year. The company continues to see phenomenal growth due to its excelling service, market knowledge and strong relationships with its shippers and carriers. Choptank is dedicated to customer satisfaction and is adopting the latest technologies to have a well-trained workforce.

DSC Logistics Location: Des Plaines, Illinois Website: www.dsclogistics.com Year Founded: 1960 Number of Employees: 3,300

Area Served: North America Asset/Non-Asset: Both Worth Noting: With over 55 years of experience in the food and CPG industries, DSC Logistics transforms supply chain management into a critical business strategy. The company manages rigorous food safety processes for all of its food customers and has experience working with distribution networks for major grocery stores.

DSW Distribution Centers Inc. Location: Rancho Cucamonga, California Website: www.dswdist.com Year Founded: 1973 Number of Employees: 70 Area Served: National Asset/Non-Asset: Asset Worth Noting: As a multi-temperature and multi-licensed warehousing and distribution company, DSW Distribution Centers specializes in food and pharmaceutical supply chain services. DSW is SQF Level 2 GFSI and NOP Organic Certified and holds two CA-ABC Alcoholic Beverage Licenses.

The company provides value-added ser-

vices and utilizes a live web-based IT and WMS that is available at all times.

East Coast Warehouse & Distribution Location: Elizabeth, New Jersey Website: www.eastcoastwarehouse.com Year Founded: 1954 Number of Employees: 300 Area Served: National Asset/Non-Asset: Both Worth Noting: East Coast Warehouse & Distribution is a preeminent provider of integrated temperature-controlled logistics services in the food and beverage industry. Its SQF certified facilities are strategically located on the Port of New York and New Jersey and in Philadelphia, creating seamless end-to-end solutions by expediting U.S. Customs and Border Protection exams. The company offers a comprehensive approach, strong corporate values and commitment to customer service.

FST Logistics Location: Columbus, Ohio Website: www.fstlogistics.com

Build a smarter cold chain Ensure food safety, quality, and freshness through every step with our subscription services.

Real-time temperature and location monitoring End-to-end visibility and control Immediate cost savings and ROI

Try a pilot at controlant.com or send us a message at contact@controlant.com Tel +1 860 578 4997

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www.foodlogistics.com

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Year Founded: 1991 Number of Employees: 400 Area Served: National Asset/Non-Asset: Both Worth Noting: FST Logistics prides itself on being a “one-stop shop� for established and high-growth food brands. In addition to its asset-based temperature-controlled LTL/TL services, FST offers value-added warehouse services, including kitting, display builds and direct-to-consumer fulfillment.

FW Logistics Location: Centreville, Illinois Website: www.fwlogistics.com Year Founded: 1949 Number of Employees: 250 Area Served: National Asset/Non-Asset: Asset Worth Noting: FW Logistics believes that in order to have a successful business, you must have open communication with your partners. With that mindset, the company has been able to flex space, trucking and people to help business partners in e-commerce, fulfillment and manufacturing meet their logistics goals. For FW, business partners are like family, and like any other family, the company strives to make sure that everyone succeeds.

next-day service. The 3PLs expanding e-commerce operation also helps to fulfill the growing demands of the industry.

Jarrett Logistics Systems Location: Orrville, Ohio Website: www.jarrettlogistics.com Year Founded: 1999 Number of Employees: 127 Area Served: North America Asset/Non-Asset: Both Worth Noting: Jarrett Logistics Systems helps customers in the food and beverage,

CPG and retail industries optimize their supply chains and reduce charge-backs by holding their LTL carriers to the same standard as their Full TL carriers.

Johanson Transportation Service Location: Fresno, California Website: www.johansontrans.com Year Founded: 1971 Number of Employees: 88 Area Served: International Asset/Non-Asset: Non-asset

Track Your

TRAILERS

Like Never Before Businesses typically come to us with these issues:

H&M Bay Inc. Location: Federalsburg, Maryland Website: www.hmbayinc.com Year Founded: 1982 Number of Employees: 555 Area Served: National Asset/Non-Asset: Non-asset Worth Noting: H&M Bay is the premier logistics provider for LTL refrigerated and frozen commodities. Consolidation centers strategically located nationwide, along with a host of web-based systems for ordering and tracking help customers manage all of their shipping needs.

Unsure of current location

Need to know hours used

Monitoring inside temperature

We help solve these challenges and more!

Hanover Logistics Location: Hanover, Pennsylvania Website: www.hanoverlogistics.com Year Founded: 1955 Number of Employees: 150 Area Served: National Asset/Non-Asset: Both Worth Noting: Hanover is dedicated to the highest level of customer service, with locations in South Central Pennsylvania allowing its customers to reach the Northeast and Mid-Atlantic regions with

www.foodlogistics.com

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We make managing your drivers, trucks, and trailers easy

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SPECIAL FEATURE continued Worth Noting: Johanson Transportation Service membership in the Blue Book Services positions it to serve the food and beverage industry with the utmost confidence. Its value-added services, along with our quick responsiveness, helps to guide customers in how they can adapt their freight planning amidst new regulations and a tight capacity market.

Kane Is Able Location: Scranton, Pennsylvania Website: www.kaneisable.com Year Founded: 1930 Number of Employees: 1,021 Area Served: National Asset/Non-Asset: Both Worth Noting: Kane Is Able specializes in making retail supply chains more efficient by taking the time to understand its customers’ unique situations and goals.

The company helps mid-market brands adapt to constant changes in product demand business requirements by developing a close, collaborative working

relationship that results in a customized logistics solution.

Keller Logistics Group Location: Defiance, Ohio Website: www.kellerlogistics.com Year Founded: 1978 Number of Employees: 435 Area Served: National Asset/Non-Asset: Both Worth Noting: Keller Logistics Group presents a strategic, closed-loop logistics solution from maker to market, allowing customers a single source for their transportation, warehousing and packaging needs. With four decades of logistics expertise, Keller is proud of its small-company culture coupled with large corporate capabilities.

Kenco Location: Chattanooga, Tennessee Website: www.kencogroup.com Year Founded: 1950 Number of Employees: 3,100 Area Served: North America Asset/Non-Asset: Both Worth Noting: Kenco’s integrated logistics platform focuses on commitment to service and cultural alignment, while providing vertically integrated and engineered solutions with its partners. The company is capable of fulfilling diversity requirements and is the largest woman-owned 3PL company in the United States.

KTI LTD

SHIPCHOPTANK.COM

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Location: Pulaski, Virginia Website: www.ktiltd.com Year Founded: 1995 Number of Employees: 49 Area Served: National Asset/Non-Asset: Both Worth Noting: As a family-owned business, KTI has been providing first-class

service to its customers for the last 23 years. KTI has two SQF certified food grade warehouses and provides food grade plastics grinding and pelletizing services for food packaging manufacturers.

Matson Logistics Location: Concord, California Website: www.matsonlogistics.com Year Founded: 1882 Number of Employees: 500 Area Served: International Asset/Non-Asset: Both Worth Noting: Matson Logistics offers nationwide freight transportation using its integrated ocean, road and rail networks.

The company provides inventory receiving, management and distribution services, and all facilities are FDA registered and Organic Food Certified.

Metro Park Warehouses Location: Kansas City, Missouri Website: www.mpwus.com Year Founded: 1970 Number of Employees: 175 Area Served: U.S. Region Asset/Non-Asset: Asset Worth Noting: As a recently established regional truckload company, Metro Park Warehouses has grown by providing consistent service and lower transportation costs for customer outbound shipments.

Penske Logistics Location: Reading, Pennsylvania Website: www.penskelogistics.com Year Founded: 1969 Number of Employees: 18,011 Area Served: International Asset/Non-Asset: Both Worth Noting: Penske prides itself on the ability to strengthen its full range of logistics services to meet its customers’ changing needs. The company makes its customers’ jobs easier by understanding business challenges so that it can bring its real-world solutions to life. Penske has decades worth of experience and is able to bring top-notch solutions to customers around the world.

Port Jersey Logistics Location: Cranbury, New Jersey Website: www.portjersey.com Year Founded: 1954 Number of Employees: 225 Area Served: National Asset/Non-Asset: Both

www.foodlogistics.com

8/2/18 9:25 AM

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8/2/18 9:26 AM

Bulk/ Liquid Bulk Air Ca Trans rgo porta tion Dedic ated C ontra Freigh ct Car t Forw riage ard Fleet Leasin ing g Interm odal Less than T rucklo Multiad Vendo r Con Ocean solida tion Rail Refrig erat Full T ed Truckin rucklo g ad Draya g e Se rvices Contin uou Fuel S s Moves aving s Prog Direc ram t Stor e Deli Truck load B very roker Rail/T age ruck Trans Full S load ervice Ma n a Custo ged T ms Br o kerag ransportat Other ion e

TOP

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74 Total Quality Logistics www.tql.com 

75 Traffix www.traffix.com 76 Transervice Logistics Inc. www.transervice.com

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78 Transportation Insight www.transportationinsight.com

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82 Ultra Logistics www.ultralogistics.com

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86 Weber Logistics www.weberlogistics.com 87 Werner Enterprises/Werner Logistics www.werner.com

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Worth Noting: Port Jersey Logistics operates two divisions that focus on transportation management and warehouse solutions. Each division services the packaged food and food ingredients industries by combining advanced systems, compliance knowledge and industry experience.

Prime Distribution Services Location: Plainfield, Indiana Website: www.prime3pl.com Year Founded: 1990

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92 Zipline Logistics www.ziplinelogistics.com

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84 Universal Chain Inc. www.uchaininc.com 85 VersaCold Logistics Services www.versacold.com

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79 Transportation One LLC www.transportationone.com

81 Triple T Transport Inc. www.triplettransport.com

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Number of Employees: 500 Area Served: International Asset/Non-Asset: Non-asset Worth Noting: Prime Distribution Services is a complete 3PL supply chain management resource, delivering innovative solutions to maximize its customers’ delivery compliance. The 3PL provides international and asset-backed domestic freight management services and uses the latest technology in its facilities.

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the most demanding retail supply chain logistics challenges while also improving on-time and in-full delivery.

RLS Logistics Location: Newfield, New Jersey Website: www.rlslogistics.com Year Founded: 1998 Number of Employees: 275 Area Served: North America Asset/Non-Asset: Both Worth Noting: RLS Logistics opened its

www.foodlogistics.com

8/2/18 9:26 AM

TOTAL FLEET CONTROL. FROM THE PALM OF YOUR HAND.

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8/2/18 9:26 AM

SPECIAL FEATURE continued

better and more flexible solutions for its customers with proven results.

The Shippers Group fifth logistics center in Salt Lake City in 2017. The new location bolsters temperature-controlled direct-to-consumer fulfillment operations by reaching 99 percent of the population with three-day ground shipping. The company continues to add service offerings to its clients, creating value within its operations.

Romark Logistics Location: Westfield, New Jersey Website: www.romarklogistics.com Year Founded: 1954 Number of Employees: 800 Area Served: National Asset/Non-Asset: Both Worth Noting: Since 1954, Romark Logistics has been a pioneer in the supply chain and logistics sectors. The company has established itself as a premier 3PL logistics company that is people driven and results focused. Romark’s motto, “Personalized services… always,” drives it to create

Location: Dallas, Texas Website: www.shipperswarehouse.com Year Founded: 1901 Number of Employees: 1,300 Area Served: U.S. Region Asset/Non-Asset: Asset Worth Noting: As a leading green supply chain partner, The Shippers Group provides contract packaging services and improves supply chain efficiency for customers. The company employs innovative technologies to improve productivity using layer pickers and voice pick technologies, while continuous improvement initiatives help drive quality to exceed customer’s key operating metrics.

Star Distribution Systems Inc.

Location: Plant City, Florida Website: www.stardistribution.us Year Founded: 1892 Number of Employees: 325 Area Served: U.S. Region Asset/Non Asset: Both Worth Noting: For over 70 years, Star AT DSW, WE’VE Distribution SysEARNED THE TRUST tems has been recOF MANY... ognized as Florida’s BECAUSE WE HAVE premier 3PL proMADE THE COMMITMENT vider. The company TO APPRECIATE THE has an unrelenting NEED FOR FLEXIBILITY, goal of providing COST-EFFICIENCY its customers with AND SUPERIOR QUALITY the highest level of CUSTOMER SERVICE. customer service, coupled with its • Full-Service Transportation Services • Over 3 Million Cubic Feet of Racked Managed In-House Multi-Temperature Controlled Space every day logistics Located in the Distribution Hub of • Wide Array of Value-Added Services services. SpecialSouthern California Total Logistics Management izing in LTL freight • Cold, Air Conditioned and Dry Storage • Complete Product Monitoring with for Dairy-Deli, Ready-to-Eat Meals, 24/7 On-Line Access. EDI, CSV, consolidation, Star Juices & Smoothies, Milk and PlantFTP, XLS, AS2 Based Beverages, Yogurts & Spreads, Distribution SysPharmaceuticals, Alcoholic Beverages, • ISO Class 8 Cleanroom tems makes more Food Ingredients & Packaging, Baking • SQF Level 2 GFSI Certification & Confections and CPG Goods with Costco ADD than 800 deliver• State Board of Pharmacy Licenses • Organic & Natural Food Products ies a day and can • International Language Labeling streamline supply Superior Quality Customer Service • Alcoholic Beverage Licenses, 14/17 chains by integratDSW DISTRIBUTION CENTERS, INC. ing a full-service A Thayer Group Company logistics solution.

8858 Rochester Avenue Rancho Cucamonga, CA 91730 Mailing: P.O. Box 1269, RC, CA 91729-1269 Phone: (909) 483-5841, Ext. 117 Fax: (909) 483-1792 www.dswdist.com • sales@dswdist.com

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Sunset Transportation Location: St. Louis, Missouri Website: www.sunsettrans.com Year Founded: 1989 Number of Employees: 100 Area Served: International Asset/Non-Asset: Non-Asset Worth Noting: Sunset Transportation expanded its network with the acquisition of Snowland Freight Services in February 2018. In addition, second-generation owner Lindsey Graves was promoted to chief operating officer in January 2018, further solidifying the company’s commitment to long-term growth, customer-centric values and personalized, agile service.

Traffix Location: Milton, Ontario Website: www.traffix.com Year Founded: 1979 Number of Employees: 220 Area Served: North America Asset/Non-Asset: Both Worth Noting: With over 35 years of service in the food and beverage industry, Traffix has developed an understanding of the importance of moving products throughout its clients’ supply chains. The company’s network of customers across North America allows it to have many continuous moves, reducing delays and expensive front haul costs. Traffix’s ability to communicate effectively and react to time-sensitive cargo provides customers with visibility that makes it a reliable and trusted partner.

Transervice Logistics Inc. Location: Lake Success, New York Website: www.transervice.com Year Founded: 1969 Number of Employees: 1,200 Area Served: North America Asset/Non-Asset: Both Worth Noting: Transervice Logistics provides contract maintenance, full-service leasing and logistics services to Fortune 500 companies. Its “full disclosure and gainshare” philosophy is awarded in the industry and has helped it establish many strategic partnerships for over 20 years.

Transportation Insight Location: Hickroy, North Carolina Website: www.transportationinsight.com Year Founded: 1999 Number of Employees: 510 www.foodlogistics.com

8/2/18 9:26 AM

Area Served: North America Asset/Non-Asset: Non-asset Worth Noting: Transportation Insight leverages multi-modal insight and industry expertise to engineer technology-driven strategies that optimize the end-to-end supply chain. Robust technologies such as TMS, WMS and interactive supply chain analytics, power customized solutions to augment carrier network alignment, process improvement, cost reduction and risk mitigation. The company helps clients align their supply chains with strategic business goals to create long-term value and increase profitability.

VersaCold Logistics Services Location: Vaughan, Ontario Website: www.versacold.com Year Founded: 1946 Number of Employees: 2,084 Area Served: North America Asset/Non-Asset: Both Worth Noting: VersaCold is a food-first company. As one of North America’s largest cold supply chain networks, it is dedicated

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to ensuring the safety, quality and freshness of the food consumers eat. With 65 years of logistics experiences, the company collaborates with partners to maintain cold chain integrity and deliver customized solutions to complex challenges.

Worley Warehousing Inc. Location: Cedar Rapids, Iowa Website: www.worleycompanies.com Year Founded: 1977 Number of Employees: 195 Area Served: North America Asset/Non-Asset: Both Worth Noting: Worley Warehousing’s strategic advantage is its Midwest location, which provides clients the ability to rapidly respond to market demands and seasonal fluctuations. Worley’s culture reflects the value it brings to clients by being a resource, not just a service provider. The company’s facilities are maintained to food grade standards and are registered with the FDA, while its operating practices are CTPAT compliant and certified organic.

WSI Location: Appleton, Wisconsin Website: www.wsinc.com Year Founded: 1966 Number of Employees: 1,200 Area Served: North America Asset/Non-Asset: Both Worth Noting: To WSI, reliability is everything. With that simple promise, the company has helped its customers for over 50 years succeed with integrated third-party logistics. WSI delivers tailored, end-toend supply chain solutions designed to maximize operational efficiency, ensuring reliable performance and minimized costs.

2018

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SECTOR REPORTS WAREHOUSING

BY MATT WICKS

ROBOTICS EVOLUTION:

TO FIND YOUR ADVANTAGE, LOOK DEEP More than any single breakthrough, success in this budding robotics age requires a holistic approach.

W

hen you think of robotics, what comes to mind? A humanoid along the lines of Rosie the Robot Maid from the Jetsons or a host from Westworld? Maybe something more grounded in the realities of food distribution operations, like an articulated arm used for palletizing or an autonomous mobile robot moving product from point A to point B. While Rosie the Robot will likely remain fiction for the foreseeable future, the confluence of advanced technology and application expertise is providing new solutions to old problems. Today’s logistics robotics market is evolving faster than ever, producing a broader array of solutions that are more capable than ever before.

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It’s What’s on the Inside That Counts Today’s robotics innovations are a result of key advances in technology, like vision systems and advanced gripping mechanisms, all coming together for maximum effect. But before becoming fixated on the gripping technology used to physically manipulate objects, look closely at the intelligence and perception responsible for putting such tools to use. Simply put, think about the robot’s “brains.”

What makes up those brains?

A combination of sensors, data science and machine learning—the package that enables the robot to make the best use of available tools when executing a task.

To understand the importance of the robot’s intelligence, think about a common, rigid gripping tool—a pair of chopsticks. Humans can use these instruments to pick up and move food without much trouble because they know what

chopsticks are, how to effectively perceive all sorts of sushi and can manipulate their fingers to control the chopsticks—usually well enough—to pick up the pieces and eat them. This is where robots struggle. Why is that? The answers go much deeper than their inability to appreciate sushi.

Humans have the most advanced perception, cognition and motion-planning systems in the known world. These are what make general tasks like washing dishes, eating and brushing teeth seem so effortless. Robots, on the other hand, lack the perception, cognition and motion-planning abilities to generalize beyond a specific use.

We can design a vision system to find a piece of sushi, we can even design motion-planning algorithms to enable a robot to pick up the sushi, but change the sushi to a maki dish and the vision system fails.

Likewise, change the length of the chopsticks and the motion planners will struggle. Manipulating those chopsticks with the necessary level of precision to put them to good use across a broad set of applications requires more “thought.”

Teaching Robots to Think Advances in perception and processing power are enabling robotics to more precisely manipulate gripping tools. Data science and machine learning are pushing the capabilities of robotics systems forward, getting closer to answerwww.foodlogistics.com

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ing the question of where exactly to position the tips of those chopsticks for all those sushi variants and chopstick sizes.

It’s all about the data. To enable robotics to properly perceive environments with such variations, lots of data is required. Take the sushi example, where computer vision algorithms can be designed to find the characteristics of a given piece, like a spicy tuna roll. But if we introduce a California roll, the algorithm fails. Vision engineers can come in and update the algorithm to identify the California roll—but then the introduction of another variant requires another development cycle for the robotics to perform.

However, by using a data-driven machine learning approach, the data from a wide variety of sushi is used to train a machine learning model. In practice, when a new variety of sushi is introduced, there is a strong chance the system will recognize it—even if the robot has not seen it before.

This concept of data-driven machine learning is applied across a wide variety of challenges. Consider an example outside of logistics, such as the security industry. Data scientists are using machine learning algorithms to help cameras identify certain objects as dangerous. The goal is to enable security cameras to handle more complex tasks previously reserved for humans, like recognizing people wearing masks or carrying weapons as potential threats, and then triggering an alarm.

the grasping of certain objects like tomatoes or eggs. In contrast to more rigid robotic tools, soft robotics offer adaptability and flexibility for accomplishing a dynamic array of tasks. Use of this more forgiving gripping technology has the potential to make the vision and sensing requirements less strict, as soft robotics do not require the same level of precision to grasp items.

In practice, soft robotics shine when it comes to more amorphous substances that traditional gripping technology, like a clamp, struggle to handle. For example, corrugate cases and hard plastic totes have the strong structure and defined edges that rigid, mechanical tooling can handle effectively. On the other hand, soft robotics are adept at handling more malleable substances like dough, thanks to flexible characteristics that enable them to adapt to the contents in their grasp.

New Solutions to Longstanding Challenges As the full spectrum of robotics technology pushes forward, it offers tremendous potential for food distribution operations, chiefly by bringing the benefits of automation to tasks previously reserved for manual labor. Delivering this capability comes not from a single

innovation, but from combining several advances such as vision, onboard intelligence, gripping and allied components in a tightly integrated package.

Market forces such as ever-changing packaging types and configurations, SKU proliferation and e-commerce continue to reshape the food logistics landscape.

As these changes continue at an ever-increasing pace, robotic systems capable of adapting will enable end users to stay competitive.

As the full spectrum of robotics technology pushes forward,

it offers tremendous potential for food distribution operations.”

Translating Cool Technology to Real-World Results Everyone from massive conglomerates to the hottest new startups can bring a robot into a facility to perform a specific task. But that alone is no guarantee of success.

Finding a solutions provider that pulls together robotics, logistics expertise and a complete solution set is rare. Food distribution operations must consider robotics as part of a holistic view that considers existing systems and overall processes.

Considering this larger view is required to avoid developing an interesting robotic system that misses the mark with overall system requirements. Success starts with clearly outlining the individual automated processes and how these translate

The Right Tools Make the Job Easier Of course, the principle of choosing the right tool for the job holds true for even the smartest robots, as gripping mechanisms are a key enabler of increased capability.

There is a reason the spoon was invented—chopsticks can’t do it all.

Often, advances in tooling can make the perception and cognition job much simpler. Consider soft robotics grippers that use highly compliant materials like those found in living organisms to ease www.foodlogistics.com

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SR: WAREHOUSING

Success starts with

clearly outlining the individual

automated processes and how these translate into an improved overall performance.”

continued

into an improved overall performance. For this reason, thinking of integration as simply implementing a single robot is not an option.

Data Connectivity: A Conduit to Greater Functionality As robotics sets its sights on new tasks to automate, the importance of another critical development comes into focus—connectivity. Tracking the progress of logistics tasks requires leveraging the power of connected devices and software to provide real-time data and make the best use of all available resources to manage processes for overall output.

In this rapidly advancing, connected climate, the data collected takes on increased importance.

Having a platform that can handle perception, thinking and execution, and generate the data, is vital. Connecting the producer of the data to multiple systems through a single cloud-based resource for machine learning and modeling can add even more power to an automated system. This learning across multiple types of solutions and machines enhances the performance of all robotics solutions, leading to greater throughput and crucially, fewer manual interventions.

Business Benefits Matt Wicks is vice president, product development for Honeywell Intelligrated.

He has over 20 years of experience in the material handling industry with robotics, controls and software integration expertise for high-volume facilities as well as unique buildto-order fulfillment solutions. He sits on the board of directors for the Robotic Industries Association.

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The innovation extends beyond just the technical solutions themselves. With these new technologies driven by more intelligent approaches, some solutions can be very cost effective. New business models have also been making inroads to the market, such as “robotics-as-a-service,” which involves leasing robotics, rather than purchasing them outright. This model seeks to remove the large, upfront capital expenditures, which are one of the most significant barriers to adopting robotics solutions.

But even the most forgiving financial models require results, and the tight margins of food

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LEVERAGE AUTOMATION THROUGH DATA BY JOHN R. YUVA

Companies are investing millions of dollars into automated systems for greater warehouse and distribution center (DC) efficiencies. Conveyor systems, packaging automation, automated storage and retrieval systems, and the like are transforming logistics strategies and supply chains. According to Tractica, as cited

by Conveyco, worldwide sales of warehouse automation technology (robotics, logistics and the like) reached $1.9 billion in 2016, and are expected to reach a market value of $22.4 billion by the end of 2021. While automation itself is proving its value, are companies leveraging the full capabilities of the technology?

Norman Leonhardt, director, business development for WITRON Integrated Logistics Corporation, says automated systems generate volumes of data. However, much of the data remains unused or untapped by the corporate users. This presents an opportunity.

“Companies can use this data in new ways to modify the performance of the warehouse or even test potential scenarios if demand patterns change,” says Leonhardt. “To examine those possibilities and analyze outcomes, we created a digital twin—a digital replication of the physical warehouse and corresponding automation.”

With this sophisticated emulation system, WITRON can examine such things as how the warehouse processes new SKUs and reacts to greater loads as well as measure the performance of certain system parts, analyzing which ones degrade faster or are more durable. It’s a form of predictive analytics that can also benefit future design and planning of WITRON’s DCs—essentially a stress test with an opportunity to improve the automated system.

“Understanding your warehouse and DC performance is critical. Thus, performance reports based on core data statistics are important barometers for managers, suppliers and retailers,” says Leonhardt. “Equally significant are reports about employee interactions with the system. There’s transparency around repeated errors or workarounds that fail to solve operational inefficiencies. Performance data enables you to build a smart system with optimal employee engagement.”

Data from the automated system also provides insights and recommendations for departments outside the warehouse or DC such as procurement. A company’s supply chain strategy can be heavily influenced by this data. What are customer behaviors within the retail store? How are products being ordered, sorted and shipped to stores? Answers to these questions can help improve overall supply chain performance.

“The transparency achieved through data about the automated system—employee behavior, parts consumption, operational efficiency and supply chain decision-making—provides greater leverage of the system,” says Leonhardt. “It’s faster processing times and optimal transparency of how the system operates and where items are at any given time. Data makes that possible.”

distribution offer little forgiveness for poorly integrated or otherwise ill-conceived robotics investments.

Trade organizations like the Robotic Industries Association can help address these risks, offering certification programs, events and other resources to help end users make sound decisions that minimize risk

and produce real results.

Recent advances in robotics have led to some amazing capabilities.

These advances are starting to enter the industrial robotics space and end-users can see how these fresh technologies can deliver on the promise of greater output and efficiency. www.foodlogistics.com

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Energy efficiency. Reducing Food Waste. FSMA Compliance. These are some of the high-stakes demands that retailers, restaurants, manufacturers and growers of perishable food place on their logistics partners. In response, advancements in equipment, temperature monitoring devices, material handling and refrigeration systems, new products and services, as well as software and technology tools are helping meet these demands.

Join an expert industry panel to discuss how the fast moving software and technology sector is adapting to the changes underway in the global food supply chain. From improving visibility, performance, and safety within the organization to facilitating collaboration among multiple supply chain stakeholders, the ongoing impact of software and technology is resulting in significant and fundamental changes across the industry.

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Engineered with the help of the top consultants in the business.

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Why do we look to you, our customers, for inspiration? Simple. We only succeed if you succeed. You asked for the new CascadiaÂŽ to be equipped with an easy-to-remove bumper for quicker maintenance. We made it happen. You asked for a better way to access electrical components. We gave you eVault. You challenged us to boost fuel economy, even though we already are a leader in the industry. We improved it by up to 8%*.

When it comes to knowing what your business needs to succeed, there’s no better expert than you. freightliner.com/new-cascadia

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SECTOR REPORTS TRANSPORTATION

BY BARRY HOCHFELDER

PROTECTING THE FOOD SUPPLY IN TRANSIT T

Reefer and trailer manufacturers are constantly innovating to keep the food supply safe while meeting government regulations.

Great Dane ThermoGuard layers help keep out moisture.

he Food and Drug Administration (FDA) says there are 48 million cases of foodborne illness annually, sickening one in six Americans. Some of these organisms can cause a miserable few hours, but others have resulted in 128,000 hospitalizations and 3,000 deaths.

The FDA lists 16 of these organisms and, while some are generally well known, such as E.coli, salmonella and Hepatitis A, others are a difficult-to-pronounce alphabet soup of letters.

The FDA’s Food Safety Modernization Act (FSMA) is designed to, among other things, ensure that proper temperatures of food are maintained throughout the supply chain. Transportation companies are responsible for complying with FSMA’s regulations, including those pertaining to temperature control, while manufacturers of reefer trailers and containers are doing their part to design and build equipment that helps safeguard food and maintain proper temperatures during transportation.

Keep it Dry, Keep it Cold

Barry Hochfelder is a freelance journalist who has covered a variety of industries in his career, including supply chain. He also served as the former editor of Supply and Demand Chain Executive. Hochfelder is based in Arlington Heights, Illinois.

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Loss of temperature can lead to bacteria growth, but so too can moisture. In addition to sensors and other telematics that monitor temperature, engineers are working on ways to eliminate wetness from the interiors of containers and trailers.

Chicago-based Great Dane has eliminated wood from its refrigerated trailers, says Chris Lee, vice president of engineering. “Wood acts as a wick and absorbs moisture,” he explains. “Composite sills and furring have replaced the use of wood as support in the construction of our Everest reefers to help eliminate rot and moisture absorption.

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Innovations in reefer trailers and containers help transportation companies ensure proper temperatures to maintain food safety throughout the supply chain.

Also, all of the floors, gutters and sidewall flashings are fully welded, which provides a ‘bathtub’ style floor assembly that facilitates frequent washing of floor surfaces.”

Great Dane also developed two new linings, PunctureGuard and ThermoGuard, to resist moisture and loss of efficiency due to foam outgassing. PunctureGuard, Lee says, provides nearly three times more adhesive strength to help fight against the separation of layers, while ThermoGuard helps maintain insulation performance for the life of the trailer.

Craig Bennett, senior vice president, sales and marketing, at the 104-year-old family-owned Utility Trailer, also says that proper maintenance and cleaning are key.

Utility’s lining is the only FDA-approved reefer lining. “Utility’s sidewalls, roof and front walls are made of thermoplastic material,” says

Bennett. “It’s not porous. Those that are more porous require additional layers and coatings on the linings to measure up to the low porosity rating of our thermoplastic linings.”

Utility’s unique foam mandrel high pressure foam system ensures that the full two- or three-inch foam package ordered is applied 360 degrees around the trailer, including in the joints and corners, guaranteeing no foam voids. This results in lower heat loss ratings, increased efficiency, lower fuel costs, and ultimately minimizes the opportunity for bacterial growth.

“You want to keep the trailer at 120 BTUs when it’s new and maintain it as long as you can,” Bennett explains. “The complete foam envelope helps that.”

Bennett mentions three key areas of the trailer that must be watched: the front wall, behind the air return bulkhead and above the ceiling mounted reefer duct chute. The air return in Utility trailers is hinged, allowing the mechanic to easily reach and clean the front wall and reefer www.foodlogistics.com

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coils where bacteria can grow.

Other Utility innovations on its 3000R trailers include barrier rear doors of bonded foam designed for less heat loss and greater durability, lining corner closures made of extruded aluminum that protect against moisture intrusion in the foam insulation, and wand low conduction thermal barriers that reduce heat transfer for greater thermal efficiency.

At Wisconsin-based Stoughton Trailers, the PureBlue reefer trailer is designed with a liner composed of a closed-cell material that does not allow bacterial growth, explains Ted LeRoy, product manager.

“Our PureBlue refrigerated trailer design, utilizing composite materials, helps improve and maintain thermal efficiency of the trailer itself, which in turn helps keep the food at the optimal temperature.”

In addition, Stoughton uses bonded side posts that reduce the number of holes in the sidewalls to aid in preventing moisture intrusion into the trailer. Composite framing used in the front wall and rear doors optimizes thermal efficiency and reduces overall weight, allowing more product to be carried.

tomers’ operational and food-specific needs, Microban offer 25 antimicrobial chemistries that are matched to both food and non-food applications, As manufacturers in the food industry seek to identify proactive measures that improve compliance with FSMA regulations, we

will continue to innovate in this area,” she says. “We believe built-in antimicrobial product protection supports cleaning and hygienic measures and is a valuable part of a systems approach to manufacturing cleaner products and equipment for the food service industry.”

Don’t Let ’em Grow Microban International, a global leader in antimicrobial, odor control and surface modification technologies, has developed a very effective innovation for food transportation in consultation with Great Dane.

The antimoicrobial used by Great Dane is approved by the EPA for food contact applications, explains Ivan Ong, vice president of research and development at Microban. In addition, the reefers, he adds, receive frequent quality control checks to ensure that the incorporation is in compliance with engineering specifications and process controls.

Because trailer specifications must be configured to meet cuswww.foodlogistics.com

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SECTOR REPORTS SOFTWARE & TECHNOLOGY

BY PRATIK SONI

BLOCKCHAIN

AND PROACTIVE PLANNING “B With a more extensive and complex supply chain, the food and beverage industry is poised to benefit from blockchain technology.

lockchain is the Next Big Thing.” “Companies Need to Start Taking Advantage of Blockchain.” “Blockchain is Set to Revolutionize Your Industry.”

Almost every day, there is a new headline proclaiming blockchain technology as the next major disruptive force. From healthcare and finance to government and—of course—food and beverage, its hype is building in numerous industry conversations. However, like most new, hyped-up technologies, there can be confusion or misconceptions in the marketplace. Thus, even though company leaders, including those at major food and beverage companies, recognize blockchain can be a beneficial investment, they can be hesitant to adopt and deploy it across their organizations.

Challenges to Solve Blockchain was originally developed in 2009 by Bitcoin inventor and cryptocurrency pioneer, Satoshi Nakamoto. Nakamoto came up with the concept of blockchain as a public, digital ledger to track the exchange of Bitcoins among those in its network.

These transactions are saved in cryptographic No one can blocks—hence where the alter any record technology gets its name. of a transaction No one can alter any without record of a transaction changing without changing all of all of the the subsequent blocks. subsequent Any alteration requires blocks.” consensus from the rest of the network. As a result, blockchain generates greater transparency and trust among all parties connected within the network.

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Naturally, the financial and transactional history of the technology has led to its growing adoption in the banking industry. However, its secure and transparent nature has peaked interest from industries that have long been plagued by challenges in data silos, disconnects among disparate individuals and organizations, and the numerous movements of commodities among them. For instance, the healthcare industry has struggled with the proper sharing and storage of medical data and records. With countless patients, doctors’ offices, hospitals and insurance providers located around globe, there is high potential for error, fraud and lost records, which has created distrust among patients and healthcare providers. Blockchain technology can help rebuild that trust by storing medical records in a secure network that can only be accessed by the connected patients and authorized healthcare providers.

Likewise, the food and beverage industry has been challenged by an extensive supply chain, stretching

from raw material and ingredient suppliers, production and food preparation sites, warehouses and distribution centers, transportation, and all the way down to the retail level—and back. With so many disparate links in the supply chain—often each one using its own systems to manage the processing and movement of goods—it makes it difficult to properly address many critical aspects of the food business.

This includes meeting consumer demand, abiding by the FDA’s food compliance and handling regulations, mitigating food recalls, and managing the replenishment and shelf life of products.

Preventable Loss Blockchain can provide food and beverage manufacturers a way to digitize every step that a product takes in the supply chain in a permanent, connected ledger. These records are centralized for all parties within the value chain, from a grain supplier to the grocery-store shelf.

This can be critical in today’s marketplace, where more consumers www.foodlogistics.com

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are demanding greater knowledge of where their food comes from and want to ensure the integrity of the products they’re purchasing—especially in the booming $40-billion organic foods sector.

In 2017, The Washington Post reported that a shipment of 36 million pounds of conventional soybeans from Ukraine passed through Turkey before arriving in California. Along its way, the conventional soybeans had been relabeled as “organic” on all receipts, invoices and shipping records.

The false organic label boosted their value by around $4 million before they were sold off to different organic food brands across the country for incorporation into their products. This meant that these brands not only paid an excessive amount for conventional ingredients, but also were mislabeling their final products, which could result in penalties and lawsuits.

Using blockchain to confirm these properties can help instill consumer confidence in a brand, especially among those that care about understanding the lifecycle of their food goods. For instance, beyond being organic, there are other considerations such as whether or not a product was produced locally, manufactured in a facility that processes nuts or dairy for those with allergies, and the like.

If consumers learn that they were misled or suffered a medical concern due to a product label, it could damage brand reputation—leading to trust issues and lost revenue.

Because blockchain can connect every part of the supply chain with records of each transaction, it can also help with food safety by mitigating the impact of a food recall and protect suppliers, brands and most importantly the consumer. www.foodlogistics.com

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By implementing the technology, only in expired product, but also the a manufacturer, brand, retailer or manufacturing and transportation consumer could easily trace back costs that go into it. Meanwhile, the records and find the source of they may under-project demand a problem. It might be a and fail to deliver adequate supplier issue, a plantreplenishment on products, By floor quality problem, implementing resulting in out-of-stock or something wrong in the technology, items for customers and, packaging and labeling. a manufacturer, therefore, lost sales.

Corrective steps can Instead, blockchain can retailer or then occur to prevent consumer could provide food and beverage additional supply chain easily trace back manufacturers visibility issues, such as following into the store level, enabling the records the records to the retail and find them to gauge demand level and finding out the source downstream in order to which stores received properly plan production of the the affected lots and upstream in the supply chain. problem.” Because the data is connectshipments. As a result, the company can do a ed and flows seamlessly in more targeted recall and only pull real time between every party, manthe faulty products from store ufacturers can gain instant insight shelves, rather than a sweeping, into what consumers are buying as widespread recall that will inadverwell as what products are nearing tently remove good products in the the end of their shelf life. Thus, they process. Companies can thereby can be more proactive with their mitigate the amount of waste due manufacturing planning and replento product recall destruction and ishment, rather than simply reacting minimize lost profits. to inventory stockouts. Further, they can ensure that they always have Reactive to Proactive the right types and amount of stock Another major issue in today’s in their distribution centers, as well hyper-complex supply chain is as guarantee the freshness of their demand forecasting and manufacproducts and maximize their shelf turing planning. The data silos and life at the retail level. No matter how disconnects, as mentioned above, much demand may fluctuate, they among manufacturing, warehousing will always have goods available to and retailers, force most companies satisfy consumers with limited exto approach manufacturing planning cess, thereby eliminating lost sales, and inventory management from a minimizing waste, and increasing reactive model. Demand increases, revenue and profitability. so they raise production and output.

Blockchain technology is more Items run out of stock or expire, so than just hype. It is a practical they send more to fill store shelves, consideration for any food and refrigerators and freezers. beverage manufacturer, brand and Unfortunately, a reactive retailer dealing with the challenges approach also means that these of a fragmented, complex supply manufacturers are always behind chain. Companies ready to tap the curve, resulting in supply and into the blockchain and connect demand imbalances. Companies these disparate links will be able to and their retail partners end up with streamline the exchange of inforexcess inventory due to increased mation and data across their value production on items that were in de- chain and drive greater business mand but no longer are, as demand outcomes. With complete transis perishable just like the product. parency from source to shelf, they In the business of perishable goods, can generate greater consumer where items have a limited shelf life, trust, ensure food safety and better companies could be dealing with meet market demand with the right a significant amount of waste not product across all channels.

Pratik Soni is co-founder and CEO of Omnichain Solutions. He is an investor and global executive with a career spanning the United States, Europe and South East Asia. In the past 15 years, Soni has held leadership positions for startups and Fortune 500 companies including i.am+, Apple, Beats Electronics, 20th Century Fox and Sears Holdings Corporation.

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SECTOR REPORTS OCEAN PORTS & CARRIERS

BY LARA L. SOWINSKI

AUTOMATION

ADVANCES AT SEAPORTS P

The paperintensive port environment is yielding to software and technology that promises to streamline the movement of cargo and information.

With the help of IBM technologies, the Port of Rotterdam is positioned to become the world’s smartest connected port.

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ort automation can be a sensitive topic in some circles.

The advent of robotics and automated terminal equipment is undoubtedly impacting longshoremen and highly coveted union jobs, yet in order to stay competitive and efficient, major container ports around the world, especially those in the United States, are compelled to continue the embrace of automation.

“Our world is moving rapidly toward an autonomous, automated and transparent future of global logistics. This is a world in which cars, road trucks and container vessels operate autonomously and smoothly together, containers and other types of cargo are handled in a highly efficient manner, and fully automated terminals adopt modern tools and technologies that attract skilled workers,” wrote Jari Hamalainen, director of terminal automation for Kalmar, a leading manufacturer of cargo handling solutions, in a recent blog.

While automated terminals and self-driving cars have gotten a lot of

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attention these past few years, they are only one aspect of the logistics chain of the future, he says.

“In this vision, a transparent information flow extends throughout the cargo handling and global supply chain all the way from producer to consumer. Openness and transparency pave the way for new competitors and partners, many of which will own or operate no physical assets. This enables highly optimized cargo handling operations in which logistics companies sell business performance and sustainability instead of mere transportation of goods,” explains Hamalainen, who adds that the “most intelligent solutions” will be the “winners.”

The benefits of an open and transparent supply chain not only enhance the marine shipping environment, but also extend to other players in the global supply chain as well as to the end consumer.

“When we start to enable fully digital, transparent end-to-end transactions, we will be able to

connect factories, assembly lines, cargo brokers, forwarders, trucks, cargo vessels, trains and warehouses into one continuous digital supply chain,” he notes. “It may be an autonomous vehicle that finally delivers your new sneakers to your home, but the real magic will be in everything that has happened to that point to make it possible.”

Digital Initiatives Underway at Key Ports The Port of Rotterdam announced a digital transformation initiative with IBM earlier this year.

While self-driving cars and trucks are in the spotlight today, the port aims to make waves by hosting autonomous ships by 2025.

According to Vincent Campfens, a business consultant for IoT and smart infrastructure at the Port of Rotterdam, to prepare for this reality, “we are actively enhancing our entire 42-kilometer port area, from the City of Rotterdam all the way to the North Sea, with IBM Internet of Things technologies and IBM Cloud,” which will position the port to become “the world’s smartest connected port,” he says.

One of the first steps is to use IBM’s IoT in order to “create a digital twin of the port—an exact digital replica of our operations that will mirror all resources at the Port of Rotterdam, tracking ship movements, infrastructure, weather, geographical and water depth data with 100 percent accuracy,” says Campfens. “This part of our digitization initiative will help us test out scenarios and better understand how we can improve efficiencies across our operations, while maintaining strict safety standards.” www.foodlogistics.com

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Global Supply Chain Solutions for the Food and Beverage Industry

Each year, Food Logistics recognizes individual and corporate leaders in the food and beverage industry. Plan now to enter your company — or a cutting-edge client or vendor — in one of these industry-leading recognition programs:

CHAMPIONS 2019

FL100+ TOP SOFTWARE & TECHNOLOGY PROVIDERS

CHAMPIONS AWARD: ROCK STARS OF THE SUPPLY CHAIN

Recognizing top software and technology providers supporting the global food and beverage supply chain

Recognizing individuals whose vision is shaping the future of the global food supply chain

Nomination deadline: Sept. 21, 2018 Winners announced in Nov/Dec 2018 issue

Nomination deadline: Oct. 19, 2018 Winners announced in March 2019 issue

TOP GREEN PROVIDERS

TOP 3PL & COLD STORAGE PROVIDERS

In recognition of companies demonstrating leadership in sustainability in the food and beverage supply chain Nomination deadline: Mar. 29, 2019 Winners announced in June 2019 issue

Honoring the leading 3PL and Cold Storage Providers that support the food and beverage supply chain Nomination deadline: May 24, 2019 Winners announced in August 2019 issue

Online nominations open approximately eight weeks before the deadlines listed above.

Award results, information and nominations posted on:

FoodLogistics.com/Awards Nomination dates and issues may change. Consult the call-for-entries email and nomination survey for confirmation Nomination dates and issues may change. Consult the call-for-entries email and nomination survey for confirmation

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The Port of Rotterdam processes over 140,000 vessels every year, and berthing a single vessel can take hours. Applying IoT technology to the berthing process can give real-time visibility of operations to all parties, saving time and boosting cargo throughput.

“In fact, shipping companies and the port stand to save up to one hour in berthing time, which can amount to $80,000 in savings for ship operators and enables the port to dock more ships each day,” he says.

At the same time, Campfens says the port is “starting to use IoT sensors, augmented intelligence (AI) and smart weather data, orchestrated by IBM and other partners to measure things like the availability of berths and other vital statistics.”

Accessing a range of granular data, such as air temperature, wind speed, relative humidity, turbidity (cloudiness) and salinity of the water, along with tides and currents, will [Appying make it easier to predict IoT to the conditions at the port berthing each day and determine process] can how smooth a vessel’s save up to one entry into the port is hour in time, likely to be. which can “Calm water and amount to weather conditions allow $80,000 in for lower fuel consumpsavings.” tion rates, facilitate Vincent Campfens, cost effective per-ship business consultant, payloads and help ensure Port of Rotterdam the safe arrival of cargo,” he adds.

Meanwhile, IBM’s cognitive IoT technology is being used to enhance other areas related to shipping, namely the production of parts for the vessels themselves.

A new R&D facility, called the Rotterdam Additive Manufacturing LAB (RAMLAB), is the first 3D-printing field lab that caters specifically to seaports and shipping companies and has the potential to enable wide-scale availability of certified metal shipping parts, explains Campfens. IBM’s technology is part of this 3D-parts production process, which uses a robotic welding arm to apply high-quality metal layer by layer to create ship components such as propellers on-demand and faster than ever before. www.foodlogistics.com

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“Where a traditional manufacturing process of a specific ship’s component usually takes six to eight weeks, we anticipate it can now be done in just 200 hours,” Campfens says.

In the Middle East, Abu Dhabi Ports’ Khalifa Port is embarking on its next phase of automation with a blockchain project aimed at creating a paperless environment.

In June, Abu Dhabi Ports, a master developer of ports and industrial zones in Abu Dhabi, announced the launch of its own blockchain offering, called Silsal, which combines blockchain technology and unique digital user identities “to provide a seamless and secure link between stakeholders across the trade community,” according to the company.

In particular, the company says Silsal was conceived to address the gap in the market for exporters and importers; to provide easy and public access to transaction status updates; reduce the need for paperwork, calls and physical visits; and to speed up information exchange overall.

Initially, the technology will be offered to freight forwarders and their customers, and subsequently extended to the rest of the trade community as a complementary tool to the existing Maqta’s Port Community System (mPCS), which is part of Abu Dhabi Ports’ Maqta Gateway digitalization project.

Dr. Noura Al Dhaheri, CEO of

PORT OF LA’S TRAPAC TERMINAL

ACHIEVES AN AUTOMATION MILESTONE The $1 billion automation project at the Port of L.A.’s TraPac terminal—a four-year project that is nearly completed—is noteworthy. The TraPac terminal is the first terminal in the world to implement driverless, automated straddle carriers that work in unison with automated stacking cranes (ASC).

Thousands of embedded magnets in the terminal yard, along with lasers and differential GPS, guide the straddle carriers to containers that have been offloaded from the vessels. The straddle carriers pick up the containers and move them to the stacking cranes, which then stack the containers in blocks four high by eight containers wide. When trucks arrive to pick up the containers, a stacking crane moves the containers from the block and onto the truck chassis. The automatic straddle carriers can also move containers to an onsite rail yard for loading onto freight trains.

Among the obvious advantages of moving more cargo in less time through the terminal, and doing it safely, the TraPac facility and others like it, help alleviate the port’s space constraints. Most ports are constrained by their ability to expand; therefore, they have to better utilize their existing footprint.

The TraPac terminal is also contributing to the Port of L.A.’s sustainability efforts, as the electric- and hybrid-powered equipment results in lower emissions.

Automated straddle carriers help make the movement of containers at the Port of L.A. more efficient and alleviate space constraints.

Maqta Gateway, notes that blockchain is a key step in the digitalization of trade.

“Through Silsal we will be offering the trade community secure and integrated access to blockchain technology, with the added value of cost and time savings through real-time track and trace, reduction in paperwork and ease in extracting vital information to receive live updates,” he says.

Abu Dhabi Ports’ Ross Thomson, chief commercial and strategy officer, touted in an interview with Logistics Middle East that Khalifa Ports is working to become “the first paperless port anywhere in the world,” and blockchain and smart contracts are integral to that effort.

ADVERTISER INDEX ADVERTISER................................................................PAGE

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Alliance Shippers.....................................................................................................27 Burris Logistics........................................................................................................23 Choptank Transport, Inc......................................................................................40 Controlant..................................................................................................................38 DSC Logistics............................................................................................................37 DSW Distribution...................................................................................................44 Ford Motor Co....................................................................................................... 2-3 Freightliner Trucks, a div. of Daimler Trucks North America LLC... 50-51 GPS Insight................................................................................................................39 Great Dane Trailers Inc........................................................................................62 H&M Bay Inc.............................................................................................................13 IFDA..............................................................................................................................58 Isuzu Truck.................................................................................................................35 Johanson Transportation Service...................................................................25 Keller Logistics Group..........................................................................................19 Lightning Technologies........................................................................................61

Penske Truck Leasing............................................................................................29 Port Everglades.......................................................................................................31 Port Tampa Bay...........................................................................................................5 Rite Hite Doors, Inc...............................................................................................21 Romark Logistics........................................................................................................9 Schaefer Systems International, Inc..............................................................22 Sensitech, Inc............................................................................................................11 Thermo King..............................................................................................................43 TODCO.......................................................................................................................53 TOTE Maritime........................................................................................................20 TranSolutions Inc....................................................................................................59 Twinlode......................................................................................................................45 Utility Trailers...........................................................................................................41 Viking Cold Solutions, Inc...................................................................................33 Witron.............................................................................................................................7 Worley Warehousing Inc....................................................................................15

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FOOD (AND MORE) FOR THOUGHT

BY ROBERT A. NORTON, PH.D.

A LONG AGO AND FARAWAY WAR:

Lessons Learned for Food and Agroterrorism Defense T NORTON

 Pathogens like anthrax can be obtained from agricultural, environmental or medical sources and used as weapons. pixnio.com

here once was a war in a faraway place called Rhodesia, in southern Africa. In that place, a government-sanctioned, clandestine chemical and biological warfare program targeted guerilla fighters and the agriculture that supported them. People and animals died. What happened there provides important lessons for food and agriculture defense professionals. A relatively recent and somewhat obscure book, Dirty War–Rhodesia and Chemical Biological Warfare 1975-1980, by Glenn Cross, details these lessons.

Although little is known about the results of Rhodesia’s chemical and biological war, its low-tech approach, using easily obtained ingredients, is a warning in these uncertain times. Three lessons learned: ➊ Complex environments can rapidly degrade, sometimes fomenting violence. Put into the modern context, think in terms of ISIS and North Korea and their conflicts with other nations. Both of these adversaries, like the Rhodesians, believe their cause justifies their use of violence. Your food corporation’s potential adversaries, whether individual or a group, are convinced they are righteous in targeting you. They might not care about the innocent lives that could also be lost. Adversaries totally lacking governors on their actions

will stop at nothing and therefore cannot be convinced or persuaded to cease doing the bad that they are trying to do.

A disgruntled employee, for example, is not reacting to a single perceived slight, but instead is far more likely to be a cauldron of anger, resentments and jealousies built up over a long time, likely starting long before that person became your employee. A powder keg with a lit fuse may explode, and a disgruntled employee whose resentments are allowed to escalate may resort to violence. Food corporations have to act decisively when human resource matters arise or else risk situations that may endanger employees and the public, cause liability, or damage brand quality and the bottom line. ➋ Agriculture and industrial chemicals can be used as chemical weapons. These include highly toxic warfarin and thallium (used in rodenticides), methyl parathion (a now-prohibited ingredient in organophosphate pesticides), sodium fluoroacetate (used in rodenticides and pesticides), cyanide, and arsenic. Because of their nature, these chemicals tend to be regulated or controlled, or at least draw government attention if bought or used in unusual quantity. Adversaries tend to want to use chemicals that are easily obtained as well as highly toxic, so they respond to this government surveillance by migrating toward less toxic but more readily available industrial chemicals, lubricants and cleaners. Be aware of chemicals on-site and how or where

contaminants might be introduced into your food products, systems and processes. And don’t think only in terms of industrial chemicals. Unlabeled ingredients are increasingly causing large-scale and expensive recalls. Don’t let them be introduced, whether intentionally or accidently, into your food products. ➋ Pathogens can be obtained from common sources and then weaponized. The Rhodesians allegedly obtained vibrio cholerae (cholera), bacillus anthracis (anthrax) and possibly botulinum toxin (botulism) from agricultural, environmental and medical sources and then developed them into biological weapons used to target guerilla forces and agricultural animals.

Evidence related to these claims is scant and in some cases disputed.

Whether all claims are accurate is immaterial; what matters is that persons with technical knowledge and access to relatively unsophisticated equipment were able to isolate and propagate pathogens that could cause illness or death. Trained individuals who are motivated to cause harm can be exceedingly dangerous.

The largest documented bioterrorism attack on American soil occurred in 1984 in The Dalles, Oregon, when followers of Bhagwan Shree Rajneesh tried to influence local elections by contaminating salad bars in 10 restaurants with salmonella. Be especially aware of any disgruntled employee who also possesses technical knowledge.

Combined with access, this is a formula for tragedy.

Robert A. Norton, Ph.D., is chair of the Auburn University Food System Institute’s Food and Water Defense Working Group. He is a long-time consultant to the U.S. military, federal and state law enforcement agencies and is editor of Bob Norton’s Food Defense Blog.

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