Food Logistics August 2019

Food Logistics

REEFER TRAILERS CONTINUE EVOLUTION

PORT AUTOMATION DEBATE RAGES GREEN IS THE NEW BLACK

®

Global Supply Chain Solutions for the Food and Beverage Industry

BUILDING AN INTEGRATED COLD CHAIN Improved processes boost safety, visibility and efficiency

THE TOP 3PL & COLD STORAGE PROVIDERS OF 2019 Issue No. 209 August 2019 FoodLogistics.com

2019

TOP

Logistics

Corporate Identity Standards

Liberty Cold

Odyssey-Logo.png

3PL & COLD STORAGE PROVIDERS

Maintaining the cold chain is vital to protecting and meeting the demands of today's everchanging supply chain. The companies on our 2019 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.

630.866.2700

https://mail.google.com/mail/u/0/?tab=wm#search/kfox@levera...

THE 14TH ANNUAL

2019 TOP

|

LOGISTICS

1 of 1

5/15/19, 4:10 PM

|

2019

www.libertycold.com

2019

TOP

Logistics

Corporate Identity Standards

Liberty Cold

Odyssey-Logo.png

3PL & COLD STORAGE PROVIDERS

Maintaining the cold chain is vital to protecting and meeting the demands of today's everchanging supply chain. The companies on our 2019 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.

630.866.2700

https://mail.google.com/mail/u/0/?tab=wm#search/kfox@levera...

THE 14TH ANNUAL

2019 TOP

|

LOGISTICS

1 of 1

5/15/19, 4:10 PM

|

2019

www.libertycold.com

We deliver confidence.

We deliver it by the truckload, because we know companies can’t thrive without it.

Penske is built around helping your day-to-day operations run as smoothly and efficiently as possible. Our truck rental, leasing, contract maintenance and logistics solutions will help you carry the load so you can focus on your core business.

Š 2019 Penske. All Rights Reserved.

Learn more at gopenske.com.

FLOG0819_2-5_TOC_JY.indd 3

7/31/19 2:31 PM

ON THE MENU

August 2019 ISSUE NO. 209 COLUMNS FOR STARTERS

Supply Chain’s Changing Landscape

6

One of the best things about covering the supply chain industry is that it’s constantly changing, and it happens fast.

A F

COOL INSIGHTS

12

COVER STORY

Building an Integrated Cold Chain Software and technology combined with improved processes are helping stakeholders boost food safety, visibility and efficiency.

FEATURE

TRANSPORTATION

THIRD-PARTY & REFRIGERATED LOGISTICS

38

32

FSMA Attention to Transport Coming

Experts in the field are waiting for the FDA to decide when and how to implement safety inspections.

18

The Top 3PLs & Cold Storage Providers of 2019

Reefer Trailers Continue Evolution

Companies are looking for ways to improve gas mileage and sustainability amid changing regulations.

SOFTWARE & TECHNOLOGY

42

SPECIAL REPORT

14

GS1 Standards Transform the Food Supply Chain

GS1 standards provide systems interoperability, leading to greater data accuracy and supply chain transparency.

FOOD (AND MORE) FOR THOUGHT

52

Devastating Midwest Floods Deliver Impact to Food Logistics Industry

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

DEPARTMENTS

Supply Scan 10 Food on the Move 50 Ad Index 8

WEB EXCLUSIVES

Food Logistics announces its Top 3PL & Cold Storage Provider winners.

How Foodservice Distributors Can Thrive in the Age of Grocery Delivery

SECTOR REPORTS

foodlogistics.com/ 21077312

WAREHOUSING

36

Green Is the New Black

Supermarkets can reduce their environmental impacts using new technologies while increasing sales.

Robotics Growth in the Warehouse To stay competitive in the e-commerce age, companies will need to start implementing robotics.

OCEAN PORTS & CARRIERS

44

Port Automation Debate Rages

Despite port automation adoption in Europe, the U.S. remains cautious about impacts on the workforce.

The Dispute Over the Driver Shortage is the Wrong Issue to Focus On foodlogistics.com / 21075379

Top 3 Challenges in Modern Food Distribution foodlogistics.com/21066236

www.FoodLogistics.com

Published and copyrighted 2019 by AC Business Media. All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording or any information storage or retrieval system, without written permission from the publisher.

Food Logistics (USPS 015-667; ISSN 1094-7450 print; ISSN 1930-7527 online) is published 10 times per year in January/February, March, April, May, June, July, August, September, October and November/December by AC Business Media, 201 N. Main Street, Fort Atkinson, WI 53538. Periodicals postage paid at Fort Atkinson, WI 53538 and additional mailing offices.

POSTMASTER: Send address changes to Food Logistics, P.O. Box 3605, Northbrook, IL 60065-3605. Subscriptions: U.S., one year, $45; two years, $85; Canada & Mexico, one year, $65; two years, $120; international, one year, $95; two years, $180. All subscriptions must be paid in U.S. funds, drawn from a U.S. bank.

Printed in the USA.

4

FOOD LOGISTICS | AUGUST 2019

FLOG0819_2-5_TOC_JY.indd 4

www.foodlogistics.com

7/31/19 2:31 PM

R B S

F s e

A BETTER PRODUCT FOR YOUR CUSTOMERS A BETTER EXPERIENCE FOR YOU.

ck

t t

ents, s

RAISING THE BAR ON COLD STORAGE TECHNOLOGY Flexible, scalable cold storage space. Supported by the best equipment and latest technology.

Your cold storage, 3PL, HPP partner

LibertyCold.com

m

FLOG0819_2-5_TOC_JY.indd 5

7/31/19 2:31 PM

FOR STARTERS

FROM THE EDITOR’S DESK

DETAILS

SUPPLY CHAIN’S CHANGING LANDSCAPE

O SOWINSKI

ne of the best things about covering the supply chain industry is that it’s constantly changing, and it happens fast.

I started working in customs brokerage in the mid-1980s for Fritz Companies in downtown L.A. Most everything was manual back then. Throughout the day, motorcycle couriers would shuttle documents between our office and offices of the steamship lines, U.S. Customs, truckers and others located in and around the L.A./ Long Beach port complex.

It sounds corny, but I felt the constant rhythm of international trade every day and it was exciting. Our office was a never-ending cacophony of dot matrix printers, telex machines, typewriters, ringing telephones, shuffling papers, staplers and stamps being pounded, and file cabinets being opened and closed. Many of us had the huge Harmonized Tariff Schedule as a centerpiece on our desk, which we used to classify imports for U.S. Customs.

We even looked “global”—women, men, young and old, racially diverse, all working together and thriving in the fast pace.

Looking back, that environment helped me understand how it all flowed and connected to each other—documentation, air/ocean/truck/rail transportation, and cargo as it moved from origin to destination. It was a great foundation for a career in what was starting to be referred to as “supply chain.”

In fact, when we got our first fax machine and I witnessed documents being transmitted versus hand-carried into our office, I realized our business was quickly entering a new era. Talk about supply chain disruption!

Today’s supply chains are just as dynamic. However, one thing hasn’t changed—the value of relationships. There were countless times when our office got things done, smoothed things over, and averted problems because we leveraged our relationships with others.

Relationships in this business are truly powerful. Undoubtedly, the companies that earned a spot on this year’s Top 3PL & Cold Storage Providers list share that view, and their customers are the beneficiaries. We congratulate them and their contributions to our industry.

Enjoy the read.

FOOD LOGISTICS | AUGUST 2019

FLOG0819_6-7_ForStarters_JY.indd 6

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

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

image source: dusanpetkovic / iStock / Getty Images Plus

6

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

AC BUSINESS MEDIA CEO Barry Lovette CFO JoAnn Breuchel CDO Kris Heineman Vice President, Sale & Marketing Amy Schwandt Editorial Director Greg Udelhofen Digital Operations Manager Nick Raether Director of Digital Strategy Joel Franke Published and copyrighted 2019 by AC Business Media.

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

7/31/19 2:37 PM

ng

THE COMPANY THAT INVENTED A WAY TO KEEP CARGO COOL ON THE ROAD CAN ALSO HELP YOU SAVE MONEY, MONITOR CARGO AND MAKE LIFE EASIER FOR YOUR DRIVERS.

TRIPAC® EVOLUTION DIESEL APU TRIPAC ENVIDIA® ALL-ELECTRIC APU Don’t use a 500-horsepower engine to power a $50 coffee pot. Cut fuel use and increase efficiency while generating power for cab and sleeper amenities.

THERMOLITE® SOLAR PANELS

TracKing® ConnectedSuite™

Let the sun create your electricity.

Turn the top of your truck into a solar collector to supplement truck systems with solar energy.

Track your reefer temperature from around the globe. Real-time telematics provide cargo traceability and asset monitoring.

Learn more by visiting ThermoKing.com/Connect

FLOG0819_6-7_ForStarters_JY.indd 7

7/31/19 2:37 PM

SUPPLY SCAN

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

STEEL KING ANNOUNCES LINE OF RUGGED INDUSTRIAL STORAGE CONTAINERS

Steel King Industries, manufacturer of material handling products and systems for improving operation efficiency, has released a line of rugged industrial storage containers that provide a long lasting, economical alternative for a wide range of heavy-duty storage applications. Lasting up to 30 years, the containers are an ideal choice for forging, sheet metal, steel parts and ammunition storage, as well as storage of recycled materials.

Steel King offers an extensive amount of customization, with its experts taking time to know its customers so the company can suggest the features and benefits to help them most. The company can make containers in any size that works best for the application.

Available designs include round corner corrugated steel containers; heavy-duty rigid bulk storage containers; “workingtainers” that double space utilization by turning work areas into storage; a stow gate container that adapts easily to multiple configurations; as well as an exclusive Hold ’n Fold design that can be stored or staged and ready for use on the production floor. This unique option provides three containers in the same space as one rigid container.

FOOD LOGISTICS REMEMBERS RICHARD T. MURPHY JR. OF MURPHY LOGISTICS SOLUTIONS

President and CEO of Murphy Logistics Solutions, Richard T. Murphy Jr., passed away July 4, 2019, of natural causes. He left behind a legacy on many fronts, including a career in landscape architecture, 25 years of teaching, nearly 30 years as a successful entrepreneur and business leader of Murphy Logistics Solutions, and his role as an optimistic and dedicated environmental advocate and highly regarded logistics industry and community leader.

As he built Murphy Logistics Solutions, he remained committed to making the world a better place by changing and improving environmental conditions.

Murphy was a sought-after speaker in the industry, often sharing how warehousing and logistics had an environmental footprint that is long enough to create a four-foot walkway between the Earth and the moon.

He helped build the case that roofs were a perfect surface for solar panels and installed them on the company’s warehouses, tracking the ROI. In addition, Murphy regularly shared his experiences in the industry and demonstrated how investing in the environment can lead to ROI for companies.

Murphy Logistics Solutions named Tom Griep, chief financial officer, as interim chief operating officer to oversee day-to-day operations.

The board, under the chairmanship of fifth-generation family member Alexandra Murphy, will continue to focus on the future of Murphy as a family-owned enterprise.

“Our family is extremely pleased with the business and proud of the family values that he instilled in the culture, and we intend to continue to operate the business as a privately held enterprise,” Murphy says.

8

FOOD LOGISTICS | AUGUST 2019

LINEAGE LOGISTICS AWARDED OUTSTANDING ACCOMPLISHMENTS IN ENERGY EFFICIENCY BY U.S. DEPARTMENT OF ENERGY

Lineage Logistics was named a winner of the 2019 Better Practice Awards by the U.S. Department of Energy’s (DOE) Better Plants Program.

The DOE Better Plants designation is bestowed to organizations that are making outstanding accomplishments in implementing and promoting the practices, principles and procedures of energy management.

The company was recognized for pioneering a new and innovative way to improve energy productivity using a process called “flywheeling,” which manages energy consumption by using a proprietary machine-learning technology to reduce both cost and waste.

GRAHAM PACKAGING COMPANY COMMITS TO 100-PERCENT SUSTAINABLE PACKAGING BY 2025

Graham Packaging, a leader in the design and manufacturing of innovative and sustainable plastic packaging solutions, has signed the Ellen MacArthur Foundation New Plastics Economy Global Commitment, pledging to have 100 percent of its plastic packaging reused, recycled or composted by 2025.

“Since its founding nearly five decades ago, Graham Packaging is dedicated to the design and manufacturing of environmentally friendly plastic packaging solutions,” says Tracee Reeves, head of sustainability and chief general counsel for Graham Packaging. “This new commitment will bring together all of our resources to reduce global waste and help our customers reach their sustainability goals.”

www.foodlogistics.com

rs

m

VISIT US AT IFDA BOOTH #531

20K DUCT FLOOR SYSTEM

Utility’s high-wear floor is our newest standard feature.

Utility raises the standard again. Designed to extend the duty cycle beyond what other standard floors deliver, the innovative 20K Duct Floor System is engineered to deliver more strength and an increased service life.

Find a dealer at UtilityTrailer.com

© 2 019 Utilit y Tr a ile r M a nu fac tu r ing C o.

FLOG0819_8-9_SupplyScan_JY.indd 9

7/31/19 2:39 PM

me

k.

LOGISTICS TRENDS IN OUR INDUSTRY Pexels

FOOD ON THE MOVE

REPORT PREDICTS THAT AUTOMATION AT US PORTS WILL INCREASE

FMCSA STREAMLINES CDL SKILLS TESTING

A report from investment rating agency, Moody’s, claims that automated container terminals will offer “competitive advantages” and that more will be built in the next decade.

The report lists 48 terminals around the world that are fully or partially automated. In addition, there are 18 fully automated terminals, including the TraPac terminal in Los Angeles and Long Beach Container Terminal.

Labor accounts for more than half of the cost structure of conventional container terminals. Meanwhile, automated terminals have 40 percent to 70 percent lower labor requirements. Savings come from the elimination of jobs of terminal truck drivers, container handlers and clerks and supervisors.

Many ports are arguing, though, that automation provides a way to expand upwards without impairing productivity. For example, by converting to a semi-automated system at Norfolk International Terminal South, the Virginia Port Authority will increase capacity by 47 percent.

H-E-B TO TEST AUTONOMOUS DELIVERY LATER THIS YEAR H-E-B has announced a pilot program taking place later this year that will use one vehicle with self-driving technology for its deliveries in San Antonio.

The grocer is teaming up with Udelv for one autonomous delivery vehicle with climate-controlled compartments for delivery of fresh, frozen and dry goods. The vehicle can then travel on city streets and at highway speeds, but will have a human driver during the first trial phase.

“At H-E-B, we continue to evaluate and utilize innovative technologies in all parts of our business,” says Paul Tepfenhart, SVP of omnichannel and emerging technologies at Central Market and H-E-B. “As a leading digital retail leader in Texas, we will continue to grow our partner population as well as technology presence to complement our store operations, enabling customers to choose how they shop, pay for and receive products.”

Unsplash

q.

A proposal by the Federal Motor Carrier Safety Administration is asking to let states have more flexibility to conduct commercial driver’s license skills tests to reduce testing delays, cut costs for third-party testers and applicants, and speed driver hiring.

According to Yahoo, the proposal would lift federal rules that currently bar third-party CDL skills instructors to perform both the instruction and qualifying testing for the same driver application. Instead, placing the discretion at the state level.

“We continue to examine opportunities to provide commonsense regulatory relief to states and to individuals seeking to obtain a CDL,” commented FMCSA Administrator Ray Martinez in announcing the plan. “This proposal will provide states more flexibility, while maintaining safety on our roadways.

I encourage all interested parties to review the proposal and to offer their comments to the docket.”

The agency will begin a 60-day public comment period that will start after the proposal is published in the Federal Register.

DAT SOLUTIONS’ MONTHLY FREIGHT REPORT

Expect Contract Rates to Weaken in Late 2019 By Mark Montague Mark Montague is senior industry pricing analyst for DAT Solutions, which operates the DAT® network of load boards and RateView rateanalysis tool. He has applied his expertise to logistics, rates, and routing for more than 30 years. Mark is based in Portland, Oregon.

10

Spot truckload rates have fallen steadily since June 2018, as capacity returned to the spot market after the start of ELD enforcement and fleets invested in new trucks.

But contract rates are a different story.

For the first half of 2019, contract rates were 3-percent higher than in 2018. Reefer rates increased the most, followed by vans and then flatbeds.

Now there are signs that contract rates, too, may weaken in the second half of 2019.

FOOD LOGISTICS | AUGUST 2019

FLOG0819_10-11_FOMrev_JY.indd 10

Contract rates tend to follow spot market trends.

Through the third week of July, the reefer load-to-truck ratio on the DAT network of load boards was 3.2, two points lower than June and three points below the July 2018 average. Spot reefer rates were in a seasonal retreat, and spot van rates were price-competitive with domestic rail intermodal when you compare a 53-foot van trailer to a shipping container of the same size.The lack of reefer freight is a drag

on van rates, with more reefer carriers competing for dry van freight.

By the end of 2019, I expect contract rates to stabilize at last year’s levels as shippers press for lower prices in the upcoming procurement cycle.

Indeed, the rest of the year could be difficult for spot and contract rates. Starting in August, hurricane season kicks into high gear. Weather has been a big factor this year, especially for reefer freight, and it’s hard to see that ending any time soon.

www.foodlogistics.com

7/31/19 2:42 PM

ES G

“We’re going with Worley.”

g

y t e

f a S

Qu

ver the vel.

es -

to

rt e

ty i l a

y t i iv

t c du

o r P

For more than 35 years, Worley has provided supply chain solutions for some of the world’s most respected Fortune 500 companies and small businesses. Our unmatched dedication to safety, quality and productivity is why we keep hearing “We’re going with Worley.”

A better supply chain solution starts at Worley.

pg

ng

W O R L E YCO M PA N I E S . CO M (800) 475-5247 | SALES: (319) 739-0322 H E A DQ UA R T E R O F F I C E S : 42 3 S O U T H G AT E C T. S W | C E DA R R A P I D S , I A 5 2 404

m

FLOG0819_10-11_FOMrev_JY.indd 11

7/31/19 2:42 PM

COOL INSIGHTS

BY DANA KRUG

GREEN IS THE NEW BLACK G

Supermarkets can reduce their environmental impacts using new technologies while increasing sales.

Dana Krug is the vice president and general manager of the Food and Beverage Division at Phononic, a company that is using semiconductor chips to deliver sustainable cooling solutions across industries.

12

rocers and food brands have largely flown under the radar when it comes to the fight against climate change, but that tide is now changing thanks to more socially-minded consumers and new technologies.

Research shows that 73 percent of consumers gravitate to brands that coffeekai / iStock / Getty Images Plus care about the environment—shop- organizations, including Project Drawdown, have called out as the pers feel good buying from companies that do good. But there’s a more No. 1 solution to global warming.

Given this, it’s imperative that pressing reason for brands to act: food retailers closely manage, if the global warming-causing hydronot completely eliminate, their fluorocarbons (HFCs) that are rife use of HFCs across the cold chain. throughout the food retail industry Companies like Aldi, Whole Foods, due to antiquated and inadequate Target, Sprouts Farmers Market cooling technology. and Ahold Delhaize have already Environmental made significant commitments to Impacts cut back HFCs and foster energy efficiency—but the challenge Today, a single supermarket comes in execution. Making an emits about 875 pounds of HFCs impact on sustainability has often annually, which is equivalent to necessitated sacrifices in other arthe emissions of more than 300 eas of the business that can impact cars. This is derived largely from its a company’s bottom line, stagnating refrigeration and freezing systems, many organizations’ efforts. which contain thousands of pounds of HFCs that leak out over time.

Eliminate HFCs These chemicals are thousands of times more potent than carbon diThis problem has been eliminatoxide, making their environmental ed as a result of new technologies impact that much more detrimenand initiatives, from recyclable tal. In fact, the collective impact of packaging and cost-effective, enthese pollutants across the United ergy-efficient lighting to advances States’ 38,000 supermarkets can in cooling solutions that don’t just equal as much as 45 million metric reduce but fully eliminate HFCs in tons of CO2 a year. favor of natural refrigerants. New The pervasiveness of these cooling innovations, such as those dangerous refrigerants has put a enabled by solid-state technology, spotlight on refrigeration manageare critical to addressing global ment, which several environmental refrigeration management in a

FOOD LOGISTICS | AUGUST 2019

FLOG0819_12-13_COOLINSIGHTS_JY.indd 12

way that is truly sustainable. Specifically, these alternatives are creating a powerful value proposition for grocers and food brands, which can now meet sustainability goals while also creating new revenue streams and driving greater ROI. By eliminating the compressor, an antiquated staple of refrigerators and freezers that relies on these harmful refrigerants to run, solid-state solutions offer a greener alternative that uses only low-pressure CO2 and water to cool and freeze.

Furthermore, the elimination of the compressor enables near-silent operation, more even heat rejection and more compact designs than traditional cooling units—which have long been relegated to the back of the store due to their size and energy needs.

Profits and Rewards This versatility is enabling grocers and food brands to redesign in-store layouts, improve product placement and offer a wider variety of fresh and frozen foods throughout the store, from mid-aisle and end-cap displays to checkout counters. The most notable impact is at the point of sale, a high-margin location prone to impulse buys.

It’s imperative that food retailers reduce their environmental footprint, but it doesn’t have to be an obligation. Today, there are more reasons than ever to embrace efficient technology—and the impact can be just as profitable as it is rewarding.

www.foodlogistics.com

7/31/19 2:44 PM

2019

TOP

-

ga

...A PROVEN LEADER IN 3PL AND TEMPERATURE CONTROLLED STORAGE

d

s

iv-

m-

nd m-

e.

nt on rae

ety -

ct in

ce it

1.800.276.2719

m

FLOG0819_12-13_COOLINSIGHTS_JY.indd 13

7/31/19 2:44 PM

COVER STORY

Software and technology combined with improved processes are helping stakeholders boost food safety, visibility and efficiency.

BY LARA L. SOWINSKI

A

recent Food Logistics educational webinar revealed that while advances in software and technology are promoting better cold chain integration, stakeholders remain concerned about food safety and various supply chain gaps that elevate risk, add cost and jeopardize efficiency.

Three panelists representing different segments of the cold chain weighed in on the challenges and opportunities in the cold chain and what role software and technology is playing.

Food Safety Several live polls were conducted during the webinar, including one on food safety. Not surprisingly, it’s a topic that most companies are very concerned about.

Wilbur Deck, solutions engineering manager for Trimble Visibility, noted that multiple handoffs along the cold chain contribute to food safety concerns.

For example, while better labeling and barcoding can provide consumers with more detail about a product’s origin and how it was grown and harvested, the transportation segment still lacks complete visibility.

14

FOOD LOGISTICS | AUGUST 2019

FLOG0819_14-18_CoverStory_JY.indd 14

The reason, in part, has to do with the highly manual processes that still exist in the transportation segment. In addition, the carrier—rather than the shipper—has historically been the primary party for protecting products.

But, the Food Safety Modernization Act (FSMA) has shifted some of that responsibility to the shipper, explained Deck.

“Shippers now own a larger portion of the responsibility for assuring food safety,” he said. As a result, shippers must exercise due diligence when vetting carriers and jointly work with them on these responsibilities, whether it involves proper temperature requirements, access to temperature readings and monitoring, or inspecting equipment on both the inbound and outbound legs.

Fellow panelist Jesse VanderVeen, vice president of marketing and communications for Controlant, agreed that visibility issues are a challenge to the integrated cold chain. Each hand-off

91.7%

yes

DO YOU HAVE ‘BLIND SPOTS’ IN YOUR SUPPLY CHAIN?

presents a risk opportunity.

Due to multiple parties and complex supply chains, certain data points could be missing, therefore contributing to the lack of complete visibility, she explained.

Rob Ulsh, vice president of dealer and international sales for Great Dane, was likewise unfazed by the poll result ranking food safety high on the list as a concern.

“That’s pretty much on par for this topic,” he said.

Ulsh added that when it comes to mitigating food safety risks during transportation, there are typically three areas where problems manifest: failure to properly refrigerate the food; inadequate cleaning of the trailer/equipment in between uses; and failure to properly protect the food.

Fortunately, there’s consensus in the industry about the importance of food safety, Ulsh remarked.

“Everybody’s trying,” he said.

“The fleets that I meet with, the

www.foodlogistics.com

7/31/19 2:49 PM

me foc it in see inn foc cha

So

M ity con exp H dle ago cha foo an ma F ma nie init the com wit ma som ed

w

a

e

at

h

to

e

n e

m

Great Dane

WHAT TYPES OF TECHNOLOGY HAVE YOU INVESTED IN TO HELP ENSURE FOOD SAFETY/FSMA COMPLIANCE IN YOUR SUPPLY CHAIN ?

41.7 % IoT DEVICES CARRIER 25% ELD DEVICES WMS

50 % SUPPLY CHAIN

VISIBILTY

meetings that I’m in, there’s a real focus on food safety. You can hear it in the brainstorming sessions and see it with the various equipment innovations. The industry is really focused on food safety and cold chain management.”

in the neighborhood of a couple thousand dollars per truck. But more affordable solutions eventually made it easier to comply with the ELD mandate.

The same is happening with food safety, said Deck.

Software & Technology “There are sensors out there Meanwhile, improved affordabilthat are super cheap and easily conity of software and technology is contributing to better food safety, nected along with more software explained Deck. and technology offerings to He compared the industry’s hurchoose from, which helps smaller trucking companies dles with the ELD mandate years catch up to the ago to today’s big guys [with challenges with WILBUR DECK regard to their food safety solutions engineering manager for Trimble ability to remain and cold chain Visibility compliant with management. regulations],” For example, JESSE VANDERVEEN Deck said. many compavice president of The ability nies worried marketing and communications to collect data initially about for Controlant along various the costs of points in the complying ROB ULSH vice president supply chain is with the ELD of dealer and the first step; mandate, which international sales for Great Dane the next is to some estimataggregate the ed would be

www.foodlogistics.com

FLOG0819_14-18_CoverStory_JY.indd 15

50% 25 % OTHER

8.3 % BLOCKCHAIN

Food Logistics Software & Technology Educational Webinar Live Poll 2019

data so it can be effectively used and applied. Deck described it as the “single pane of glass” where shippers are not only able to see all the key information they need, but also share it with other stakeholders. This facilitates more proactive alerting and monitoring, he said, which truly is transformative in terms of visibility.

“When you know time, temperature, location and other data, then you know the full story and can understand what is happening in your supply chain. You can identify risk points and mitigate them, get ahead of issues rather than reacting to them, and build trust with stakeholders and consumers, all while driving continued improvements,”

AUGUST 2019 | FOOD LOGISTICS

15

7/31/19 2:51 PM

Two significant trends we see now on the equipment side are

electric refrigeration and the resurgence of cold plate technology.”

Rob Ulsh, vice president of dealer and international sales, Great Dane

continued

said Deck.

While software and technology bring considerable value and capabilities to managing the cold chain, the panelists emphasized the importance of mapping the supply chain first before making that investment.

For example, Deck said that some companies may not be using a TMS solution yet, so they need to begin by “assessing where they’re at from a capabilities standpoint and start knocking out some of those larger items first” and then they can determine what investments they need to make.

Taking the time to map your supply chain end-to-end helps identify gaps and what exactly needs to be addressed. It’s a critical exercise that needs to happen before you make what could potentially be an uninformed decision about a software and technology investment.

Moreover, “Food delivery is not a cookie cutter type of operation,” said Ulsh. “You have different segments, including foodservice, truckload and other types of operations,” each generating unique data sets.

VanderVeen agreed that perceptions about software and technology being cost prohibitive and cumbersome to deploy are increasingly being dispelled. Not only that, the ongoing digital transformation occurring across supply chains combined with new options associated with emerging technologies is presenting more choices. The scalability associated with IoT and cloud technology is another advantage.

As for blockchain specifically, she acknowledged that it would take some time before its full value will be realized. For one, stakeholders need to be involved from the start

83.3%

yes

DO YOU HAVE CONCERNS ABOUT YOUR SUPPLY CHAIN FROM A FOOD QUALITY AND SAFETY PERSPECTIVE?

16

FOOD LOGISTICS | AUGUST 2019

FLOG0819_14-18_CoverStory_JY.indd 16

dusanpetkovic / iStock / Getty Images Plus

COVER STORY

and coalesce around what the objectives are for the supply chain before deciding how, when and where to apply blockchain technology.

“The integrity of the blockchain is only as a good as the data going into it,” she said.

Deck also commented on the results of the audience poll, which singled out blockchain as the technology that companies had invested in least as a way to ensure food safety/FSMA compliance in the supply chain.

“Notwithstanding a handful of high-profile initiatives such as IBM’s Food Trust, blockchain is still viewed as a ‘pie in the sky’ technology right now,” he said, referring again to the highly manual nature of the transportation segment of supply chains, which makes blockchain technology difficult to execute.

Ulsh had similar observations. “It doesn’t surprise me that blockchain is ranked so low,” he said. “There are still people who don’t understand it or what the capabilities are, and this will persist for a while.”

On the other hand, the significant percent of those polled who said they had invested in IoT devices (41.7 percent) was also in line with what Ulsh expected, considering he is seeing a proliferation of IoT-enabled devices in the marketplace.

“Great Dane’s telematics program is specifically designed to create a backbone to receive all the data from every other vendors’ devices, and bring that data into an aggregate [for improved fleet management and cold chain visibility].”

At the same time, innovations in refrigeration and packaging are also complementing advancements in software and technology.

According to Ulsh, “Two significant trends we see now on the equipment side are electric refrigeration and the resurgence of cold plate technology.” Both represent zero emission options that promote sustainability in the supply chain.

In addition, solar panels used in conjunction with the trailer and/ or the truck body could amplify the sustainability aspect and energy production.

For instance, in the future there could be an opportunity to use energy generated by solar panels for operating lift gates or storing it on the trailer for other uses, said Ulsh.

Packaging is another consideration with regard to sustainability, Deck pointed out, citing meal kit delivery services that have worked to reduce excessive packaging with innovations and other solutions, such as re-usable coolers.

As part of their closing comments, both VanderVeen and Ulsh drew connections between cold chain management and consumer safety, particularly as it relates to perishable food.

“Safety needs to remain a top priority as product moves through the cold chain,” said Ulsh. “A lot goes in to moving food from farm to table.

It’s complex and difficult. The industry has accepted the challenge, however, and I think we’ll continue to see a lot of exciting things as we move forward.”

www.foodlogistics.com

7/31/19 2:51 PM

dusanpetkovic / iStock / Getty Images Plus

e ts

d

ote

n

he

e r n h.

y,

d th

h

r

rihe n e. us-

e e

m

FLOG0819_14-18_CoverStory_JY.indd 17

7/31/19 2:52 PM

BY EDITORIAL STAFF

T E L I M L A N I F 3PLS & COLD STORAG THE TOP Food Logistics announces its Top 3PL & Cold Storage Provider winners.

2019

M

FULFILLMENT

BROKERAGE

TOP

INVENTORY

nal

TOP 3PL & COLD STORAGE PROVIDERS

18

anaging the cold chain is crucial to protecting and meeting the demands of the supply chain. Companies on this year’s Top 3PL & Cold Storage list play a pivotal role in the on-going challenge.

Standouts in their own right, each company continues to improve their skills and keep up with the latest temperature monitoring technologies, transportation management systems and warehouse management systems. Moving and storing perishable goods requires companies to commit to continually improving their operations and meeting their customers’ needs.

Food Logistics is pleased to announce the Top 3PLs & Cold Storage Providers of 2019, an annual updated directory of providers that summarizes their capabilities. The list is a valuable resource to transportation decision-makers for a quick view of potential solution providers and the geographic locations they serve.

Congratulations to all the companies that have earned a spot on our 2019 Top 3PL & Cold Storage Providers list. The following are expanded profiles of some of the companies on the list.

A.N. Deringer Inc. Location: St. Albans, Vermont Website: www.anderinger.com Year Founded: 1919 Number of Employees: 493 Area Served: U.S. Region, National, North America, International Asset/Non-asset: Both Worth Noting: Customers benefit from Deringer’s high-level trade involvement as they receive advance insight into the changing regulatory landscape. As trade laws evolve, A.N. Deringer helps companies understand how shippers proactively change procedures to avoid non-compliance that could result in penalties or delays.

Burris Logistics Location: Milford, Delaware Website: www.burrislogistics.com Year Founded: 1925 Number of Employees: 1,716 Area Served: North America

FOOD LOGISTICS | AUGUST 2019

FLOG0819_18-31_AWARDS_JY.indd 18

D

Asset/Non-asset: Both Worth Noting: At Burris Logistics, clients’ businesses are just as important as its own. The company offers compelling and comprehensive solutions. Burris learns from its customers and the industries they serve and has the resources to collaborate on endto-end supply chain management needs.

CBT Inc. Location: Oakwood, Georgia Website: www.cbtoakwood.com Year Founded: 1989 Number of Employees: 11 Area Served: North America Asset/Non-asset: Non-asset Worth Noting: CBT utilizes top-of-the-line programs to quickly set up qualified carriers, efficiently dispatch all loads to completion, electronically invoice customers and expeditiously pay carriers. The company has assisted others during times of need, such as coordinating the delivery of water to the Houston area following Hurricane Harvey.

www.foodlogistics.com

8/1/19 1:32 PM

Lo W Ye Nu Ar As W an st pr ar Th fo rie gr an as

D

Lo W Ye Nu Ar As W Ce ed

N O I T A T R O T P E M S PERATU E TRAN RE BUSINESS STRATEGY

sses ers

Location: Des Plaines, Illinois Website: www.dsclogistics.com Year Founded: 1960 Number of Employees: 4,000 Area Served: North America, International Asset/Non-asset: Both Worth Noting: DSC Logistics transforms logistics and supply chain management into a critical business strategy. The company understands the added pressure that CPG/food and beverage companies are currently facing to increase their profit margins.

Thus, DSC manages rigorous food safety processes for all of its food customers. With its extensive experience working with distribution networks for major grocery/dollar stores, mass merchant/club chains and foodservice retailers, DSC is awarded annually as a top 3PL provider.

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: In its 46 years, DSW Distribution Centers continues to offer a wide array of value-added services, with specialized licensing and multiple

temperatures for the ingredients, food and beverage, pharma and bio tech, and consumer packaged goods industries.

Florida Freezer Location: Fort Myers, Florida Website: www.flfreezer.com Year Founded: 1988 Number of Employees: 22 Area Served: U.S. Region Asset/Non-asset: Asset Worth Noting: Florida Freezer is a fully operational supply chain organization that has cold and dry storage warehouses in several locations. In addition, it operates a trucking company to support all entities with transloading and final-mile trucking deliveries with GFA Rail Services.

H&M Bay Inc.

COLLABORATATION

DSC Logistics

INTERMODEL

ORAGE PROVIDERS OF 2019

DISTRIBUTION

RAIL

Location: Federalsburg, Maryland Website: www.hmbayinc.com Year Founded: 1982 Number of Employees: 555 Area Served: National Asset/Non-asset: Non-asset

-

ams

e mh on

m

www.foodlogistics.com

FLOG0819_18-31_AWARDS_JY.indd 19

AUGUST 2019 | FOOD LOGISTICS

19

8/1/19 1:32 PM

Bulk/ Liquid Air Ca rgo 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 e ra Full T ted Truckin rucklo g ad Draya g e Se r v ices Contin uou Fuel S s Moves aving s Prog Direc ram t Stor e Deli Truck v e ry load B roker Rail/T age ruck Tran Full S ervice sload Ma n a Custo ged T ms Br ransp okera ortatio Other ge n

2019

TOP A. Duie Pyle www.aduiepyle.com

•

A.N. Deringer Inc. www.anderinger.com

• •

• •

Acme Distribution www.acmedistribution.com

•

•

• • • • • • • •

•

• •

• •

Allen Lund Company TransKool Solutions www.allenlund.com

•

•

• •

•

• • • • •

•

• • •

• • • • •

•

WAREHOUSE/COLD STORAGE

Cross Dock Fulfillm ing ent Inven tory/ Multi- Cost Acco unting Vendo 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-Ma Wareh naged Inv entor ousin y 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

• • • • •

• • •

•

• •

• •

• •

• • •

• •

• •

• • • • • • • •

•

•

•

•

• •

•

Atlantic Logistics www.shipatlantic.com

• •

Becker Logistics www.beckerlogistics.com

• •

• • • • •

BRT SpartanNash LLC www.blueribbontransport.com

• •

• • • •

•

• • •

• •

• • •

• • • • •

•

Burris Logistics www.burrislogistics.com

• • •

•

CAI Logistics www.caimoves.com

•

• • • •

Cardinal Logistics Management www.cardlog.com

•

• • • • • •

• •

•

CBT Inc. www.cbtoakwood.com

•

CHOPTANK TRANSPORT www.choptanktransport.com

• •

•

• • • • • • • • •

• • • • • • • • • • •

•

DSW Distribution Centers Inc. www.dswdist.com

• •

•

Ease Logistics www.easelogistics.com East Coast Warehouse & Distribution www.eastcoastwarehouse.com

•

•

England Logistics www.englandlogistics.com

•

Florida Freezer www.flfreezer.com FreightCenter www.freightcenter.com

• • • •

FST Logistics www.fstlogistics.com

• •

FW Logistics www.fwlogistics.com

•

Great Plains Transport Inc. www.greatplainstransport.com

•

H&M Bay Inc. www.hmbayinc.com

•

Hanover Logistics www.hanoverlogistics.com

•

Integrity Logistics www.integritylogistics.com

• • •

International Cold Storage Inc. www.international-cold-storage.com J.B. Hunt Transport Services Inc. www.jbhunt.com

• • • • •

• • • •

• •

20

•

• •

• • •

• • •

• • • •

•

• • •

•

• • • • • •

• • •

• • •

• •

•

• •

•

•

FOOD LOGISTICS | AUGUST 2019

FLOG0819_18-31_AWARDS_JY.indd 20

•

• • • •

• •

• • • • • • •

•

•

•

• • • •

•

• •

•

•

• •

•

•

•

• •

• •

• •

•

•

• • • • • •

• • •

• •

•

• •

• • •

•

•

•

• •

• • •

•

• •

• • •

• • •

• •

•

•

•

• •

• • • •

•

•

Organic, Pharma, Alcoholic Beverages, Packaging

C

F

Case picking

• • • • •

•

• • • • • • • • • •

• • •

•

• •

• •

• • •

• • •

• •

•

• • •

• • • • • • • • •

•

• • • • •

• • •

• •

• •

• • • •

• •

• •

• • •

• • • • •

• • •

•

• • • • • •

• • •

• •

• •

• •

•

• •

•

• •

•

• •

• •

• •

•

• • • • • • • • • • • • • • •

• • •

•

•

Distribution 2000, Inc. www.dist2000.com DSC Logistics www.dsclogistics.com

•

•

• •

Cold Storage Solutions www.coldstoragesolutions.com D+S DIstribution Inc. www.dsdistribution.com

•

•

• •

•

•

•

• • •

•

• •

• •

•

Value-added solutions

•

• • • • • • • • •

•

Capital Logistics www.capitallogisticsllc.com

Carter Distribution www.carterdc.com

• •

•

• • • • • • • • • • • • • • •

• •

• •

• • •

•

• •

• • • •

•

•

•

1 www.foodlogistics.com

8/1/19 1:32 PM

W

rma,

m

COLD STORAGE DOWN COLD

FLORIDA’S ULTIMATE REFRIGERATED SUPPLY CHAIN SOLUTION • 135,000 square foot state-of-the-art facility • On-site CBP ag specialists • On-site USDA and CBP inspection, CBP lab • 154 reefer plugs • On-site dedicated temperature controlled fumigation services • 6,348 racked pallet positions using Interroll gravity fed rack system • Chilled and frozen capacity

• Proximity to Florida’s largest and fastest growing region and the heart of the state’s grocery/food and beverage sector • On-site radiation portal monitors • Surplus truck capacity in Tampa for competitive cargo deliveries throughout Florida and Southeast U.S. • Safe, food-grade glycol refrigerant used throughout • Global container connections, including three new Asia-direct services • Gateway to Mexico and Latin America

1101 CHANNELSIDE DRIVE, TAMPA, F LORIDA 3 3 6 0 2 WW W .PORTTB.COM | 800-741-2297

FLOG0819_18-31_AWARDS_JY.indd 21

8/1/19 1:32 PM

Bulk/ Liquid Air Ca rgo 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 e ra Full T ted Truckin rucklo g ad Draya g e Se r v ices Contin uou Fuel S s Moves aving s Prog Direc ram t Stor e Deli Truck v e ry load B roker Rail/T age ruck Tran Full S ervice sload Ma n a Custo ged T ms Br ransp okera ortatio Other ge n

2019

TOP Jarrett Logistics Systems www.gojarrett.com

• •

• •

• • • • • •

• •

• • • • •

JOHANSON TRANSPORTATION SERVICE www.johansontrans.com

• • • • • • • • •

• • •

Kane Is Able www.kaneisable.com

•

• •

Keller Logistics Group www.kellerlogistics.com

•

• • • •

Kenco www.kencogroup.com

• • • • • •

•

• • • • • • • •

• • • •

Knichel Logistics www.knichellogistics.com

• •

• • • •

WAREHOUSE/COLD STORAGE

Cross Dock Fulfillm ing ent Inven tory/ Multi- Cost Acco unting Vendo 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-Ma Wareh naged Inv entor ousin y 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

• • • • •

3PL/ brokerage; logistics management, consulting, TMS, vendor/ supplier management, audit/claims/ freight payment, load planning

• • •

•

•

• •

• •

•

•

•

•

•

•

•

Liberty Cold www.libertycold.com

•

•

• •

• •

• • • •

•

• • • •

Lineage Logistics www.lineagelogistics.com

• •

• • • •

LiVe Logistics www.livelogisticscorp.com

• •

• • • •

• •

LoadDelivered Logistics www.loaddelivered.com

• •

• • • • •

• •

• •

Mark-It Express www.mark-itexpress.com

•

• • •

• • •

• • •

• •

• • • •

• • •

•

• • • • • • • • •

McLane Global Logistics www.mclanegloballogistics.com MegaCorp Logistics www.megacorplogistics.com

•

•

•

• • • •

• •

Metro Park Warehouses www.mpwus.com

•

• • • • •

•

•

•

• •

•

•

• • • • • •

Next Generation Logistics www.nextgeneration.com

•

•

•

•

• • • • • • •

•

• •

• •

•

• •

• •

• •

•

• • • •

• •

•

• •

•

•

• •

•

• •

• •

• •

•

• • • • •

•

Mvision Web Portal

•

Automated truck (un) loading, Quality Inspections, Export Packing, Hand Unstacking

• • •

• • • •

• •

• •

Custom Packaging, Kitting, Labeling & Display Assembly Services

• •

• •

• • •

•

lab

cou

Log

cre

mu of

• • • • • • • • • • • • • • •

• • • • •

• • • •

• •

•

Odyssey Logistics & Technology www.odysseylogistics.com

• • • •

• • • • • • • • •

• • • • •

• • • •

•

•

FLOG0819_18-31_AWARDS_JY.indd 22

you

you

•

•

•

Th

For

•

• • • •

FOOD LOGISTICS | AUGUST 2019

Value-added packaging services

In O to

NFI www.nfiindustries.com

22

HPP

•

• •

• •

• •

SQF Certified

•

•

• • •

•

•

•

• • • • •

• • • •

• • • • • • • • • • • • •

•

Dedicated Shuttles

•

•

• • •

NewCold Advanced Cold Logistics www.newcold.com

Newport-St. Paul Cold Storage Co. www.newportcold.com

•

• • • • •

• • • • • • • • • • • •

• • • •

MTC Logistics www.mtccold.com

• •

• •

• • • • • •

• • International supply chain management services in 22 countries, including factory order management, consolidation of goods, carrier management,

•

• • •

•

Matson Logistics www.matson.com

• •

•

• •

• • • •

•

•

• • • • • • • • • •

• •

•

• • •

• • • •

• •

• • • • • • •

Warehouse/DC Location Services

• • • •

•

•

• • • •

•

•

•

M&W Distribution Services Inc. www.westlgi.com

• •

• • • • • • • • • •

KTI LTD. www.ktiltd.com

Lynden Inc. www.lynden.com

•

• • •

• •

• • • • • • • •

•

ww Ocean freight services

www.foodlogistics.com

8/1/19 1:32 PM

© 20

DC rvices

d

d

eling & embly

b

™

I n nov a t i n g Lo g i s t i c s O ne R o u t e a t a T i me There are lots of ways to get from Point A to Point B, but there’s only one optimal way.

For your business to maximize its profit, you need to avoid weather disruptions, labor shortages, price increases and countless other inefficiencies. Odyssey Logistics specializes in complex logistics,

ality

creating custom-tailored solutions across

ing, cking

multiple transportation modes. Let us help you navigate the ever-changing landscape of complex logistics. www.doortodone.com

ht

m

© 2019 Odyssey Logistics & Technology Corporation

FLOG0819_18-31_AWARDS_JY.indd 23

8/1/19 1:32 PM

AWARD: TOP 3PL & COLD STORAGE PROVIDERS

Worth Noting: H&M Bay is the country’s 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 companies manage their shipping needs.

Hanover Logistics Location: Hanover, Pennsylvania Website: www.hanoverlogistics.com Year Founded: 1955 Number of Employees: 180 Area Served: National Asset/Non-asset: Both Worth Noting: Hanover Logistics differentiates itself from the competition by supplying its customers with a “one-stop-shop” service. The company provides e-commerce kitting, drayage, transportation, cross-dock and pool distribution services—as well as additional services required. With its location in the Northeast, Hanover is able to reach regional areas and Mid-Atlantic states. In addition, the company has expanded its freight brokerage, developed a flat-bed

AT DSW, WE’VE EARNED THE TRUST OF MANY...

BECAUSE WE HAVE MADE THE COMMITMENT TO APPRECIATE THE NEED FOR FLEXIBILITY, COST-EFFICIENCY AND SUPERIOR QUALITY CUSTOMER SERVICE. • Over 3 Million Cubic Feet of Racked Multi-Temperature Controlled Space Located in the Distribution Hub of Southern California • Cold, Air Conditioned and Dry Storage for Dairy-Deli, Ready-to-Eat Meals, Juices & Smoothies, Milk and PlantBased Beverages, Yogurts & Spreads, Pharmaceuticals, Alcoholic Beverages, Food Ingredients & Packaging, Baking & Confections and CPG Goods • Organic & Natural Food Products

• Full-Service Transportation Services Managed In-House • Wide Array of Value-Added Services Total Logistics Management • Complete Product Monitoring with 24/7 On-Line Access. EDI, CSV, FTP, XLS, AS2 • ISO Class 8 Cleanroom • SQF Level 2 GFSI Certification with Costco ADD • State Board of Pharmacy Licenses • International Language Labeling

Superior Quality Customer Service

• Alcoholic Beverage Licenses, 14/17

DSW DISTRIBUTION CENTERS, INC. A Thayer Group Company

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

24

FOOD LOGISTICS | AUGUST 2019

FLOG0819_18-31_AWARDS_JY.indd 24

continued

operation and recently purchased a Class A 325,000 square-foot facility.

Johanson Transportation Service Location: Fresno, California Website: www.johansontrans.com Year Founded: 1971 Number of Employees: 90 Area Served: North America, International Asset/Non-asset: Non-asset Worth Noting: Johanson Transportation Service understands that cutting-edge logistics technology plays an important part in providing its customers with excellent service. Since releasing the first version of its proprietary cloud-based TMS in 2008, the company’s tech experts continuously update the technology as market conditions evolve. JTS offers its TMS as an added-value of doing business and continues to invest in technology that advances its features.

Keller Logistics Group Location: Defiance, Ohio Website: www.kellerlogistics.com Year Founded: 1978 Number of Employees: 475 Area Served: National Asset/Non-asset: Both Worth Noting: Keller Logistics Group and its 3PL affiliates present a strategic, closed-loop logistics solution from maker to market, affording its customers a single source to arrange their transportation, warehousing and secondary packaging needs. The company has extensive expertise and practices a small company culture, allowing it to successfully serve its clients.

Kenco Location: Chattanooga, Tennessee Website: www.kencogroup.com Year Founded: 1950 Number of Employees: 4,000 Area Served: North America Asset/Non-asset: Both Worth Noting: With an integrated logistics platform, Kenco focuses its commitment to service and cultural alignment, while providing vertically integrated and engineered solutions with its partners. In addition, the company maintains capabilities of fulfilling supplier diversity requirements.

Liberty Cold Location: Bolingbrook, Illinois Website: www.libertycold.com Year Founded: 2016 Number of Employees: 29

www.foodlogistics.com

8/1/19 1:32 PM

A A W s fo y t s 3 s a

L

L W Y N A A W t p b r

L

L W Y N A In A W p c fo c it it s

M

L W Y N A A W W w 3 M

00

, e its nes.

m-

m, ur-

g

m

Area Served: National Asset/Non-asset: Asset Worth Noting: Liberty Cold prides itself in the partnerships it has made and continues to grow throughout the food industry. The company’s leadership has nearly 100 years of combined industry experience, providing customers with a profound knowledge base to help them succeed. Its expanded state-of-the-art facility features 310,000 square feet of temperature-controlled storage space that keeps fresh and frozen food products safe and secure.

LiVe Logistics Location: Chicago, Illinois Website: www.livelogisticscorp.com Year Founded: 2016 Number of Employees: 15 Area Served: National, North America Asset/Non-asset: Non-asset Worth Noting: Despite being a young company of three years, LiVe Logistics brings decades worth of experience in 3PLs and brokerage services. The company believes in the value of its personal and professional relationships with employees and clients.

Lynden Inc. Location: Anchorage, Alaska Website: www.lynden.com Year Founded: 1906 Number of Employees: 2,658 Area Served: U.S. Region, National, North America, International Asset/Non-asset: Both Worth Noting: The Lynden family has expansive transportation and logistics capabilities as an asset-based carrier. The company always has the right equipment for the job. Regardless of how a client needs to move cargo, Lynden is able to accommodate the needs of its customers. Whether its fresh or frozen perishable items, the company transports products at just the right speed and temperature to maintain their top quality.

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: Customers benefit from Metro Park Warehouses’ reliable, quality service and lower warehouse and transportation costs. The asset-based 3PL is further expanding its distribution services in the Midwest. In addition, the company’s custom kitting and

www.foodlogistics.com

FLOG0819_18-31_AWARDS_JY.indd 25

display assembly services help customers meet higher volumes and demanding deadlines by flexing labor and space during peak seasons.

Next Generation Logistics Location: Palatine, Illinois Website: www.nextgeneration.com Year Founded: 1988 Number of Employees: 14 Area Served: North America Asset/Non-asset: Non-asset Worth Noting: Next Generation Logistics provides exceptional service above and beyond what its customers can do themselves. The company positions its technology as an extension of its customers, setting it apart from the competition. By keeping customers current on strategies and opportunities, NGL helps keep supply chains running smoothly.

Odyssey Logistics & Technology Location: Danbury, Connecticut Website: www.odysseylogistics.com Year Founded: 2013 Number of Employees: 2,400

Transfers loads from one pallet type to another Category 3 safety compliant Enhance safety for warehouse personnel Helps meet FSMA, HACCP and GMP compliance Reduces contaminates from entering production areas Safer, cleaner & faster than other load transfer devices 1-800-628-4065 www.loadtransfer.net

AUGUST 2019 | FOOD LOGISTICS

25

8/1/19 1:33 PM

AWARD: TOP 3PL & COLD STORAGE PROVIDERS

Area Served: International Asset/Non-asset: Both Worth Noting: Whether a client is looking to move its product across the country or across an ocean, Odyssey Logistics & Technology utilizes the optimum mode for each segment of the food transportation supply chain. For the last 12 years, the company has specialized in door-to-door sea transportation of bulk liquid food products in ISO tank containers.

Odyssey provides ISO tank containers for inventory storage at shipper or receiver plant locations. And its U.S. distribution centers handle over 60 million cases of alcoholic beverages annually.

26

FOOD LOGISTICS | AUGUST 2019

FLOG0819_18-31_AWARDS_JY.indd 26

RAIL/TRUCK

3PL SERVICES

Location: Miami, Florida Website: www.omnitransloading.com Year Founded: 2014 Number of Employees: 50 Area Served: U.S. Region, National, North America, International Asset/Non-asset: Both Worth Noting: Strong partnerships with Florida East Coast Railways and LOUP Logistics has led to numerous accolades for Omni Transloading & Logistics.

Recently, LOUP and the UP Railroad named the com-

BULK/LIQUID

WAREHOUSE

Omni Transloading & Logistics

continued

pany one of their Select Connect facilities—making it one of the only companies east of the Mississippi River to be selected.

Penske Logistics Location: Reading, Pennsylvania Website: www.penskelogistics.com Year Founded: 1969 Number of Employees: 19,058 Area Served: International Asset/Non-asset: Both Worth Noting: Penske Logistics is one of the industry’s largest providers of 3PL, dedicated contract carrier and warehousing services. The company is the recipient of the Freight Carrier Excellence Award and has opened its latest cold distribution center in Michigan this summer.

Phoenix Logistics

We Ye Nu Ar As Wo tra reg ful cus be off int sol Ca lar

RL

Location: Milwaukee, Wisconsin Website: www.phoenix3pl.com Year Founded: 2017 Number of Employees: 25 Area Served: National Asset/Non-asset: Asset Worth Noting: As an affiliate of the real-estate firm, Phoenix Logistics is uniquely positioned to help its customers with all of their supply chain needs.

The company has access to a portfolio of 25 million square feet of warehouse space, coupled with an aggressive investment in technology and a competitively priced space for added value. Phoenix Logistics is driven by a sense of urgency and uniqueness, providing creative options and competitive solutions.

Lo We Ye Nu Ar As Wo pe na tem the ne sto de rac cen

R2 Logistics

Ro

Location: Jacksonville, Florida Website: www.r2logistics.com Year Founded: 2007 Number of Employees: 200 Area Served: North America, International Asset/Non-asset: Non-asset Worth Noting: R2 Logistics offers industry-leading supply chain management services to shippers of all sizes. The company specializes in services that include managed transportation, full truckload, less-than-truckload (LTL), expedited and air freight, intermodal, ocean and specialized hauling. Backed by game-changing technology, the company has created a transportation management system that allows customers to rate shipments and receive real-time visibility into their logistics network.

Red Classic Location: Charlotte, North Carolina

www.foodlogistics.com

8/1/19 1:33 PM

Lo We Ye Nu Ar As Wo ma the ret ha ty of acq org inv bu me gro

g

-

ard n

m,

n

iics

ns.

g

t, by ed

m

Website: www.redclassic.com Year Founded: 2011 Number of Employees: 1,235 Area Served: National Asset/Non-asset: Both Worth Noting: Red Classic provides comprehensive, reliable transportation and fleet maintenance solutions. Utilizing a regional company-owned fleet, growing OTR network and full-service logistics division, the company serves a diverse customer network shipping everything from beverages to building materials. Red Classic offers full truckload, LTL, dedicated, flatbed, intermodal and managed transportation solutions across the continental U.S. and Canada. The company is also one of the largest beverage haulers in the country.

RLS Logistics Location: Newfield, New Jersey Website: www.rlslogistics.com Year Founded: 1988 Number of Employees: 300 Area Served: National Asset/Non-asset: Both Worth Noting: Since expanding its temperature-controlled LTL service offering nationally, RLS Logistics can now pick up temperature-controlled LTL anywhere in the country. The company continues to open new locations as well, with its latest cold storage warehouse in Delanco, New Jersey, debuting in November 2018. RLS’ mobile racking technology allows it to store 30-percent more pallets in a defined space.

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: For the last 65 years, Romark Logistics has been servicing some of the top food, beverage, pharmaceutical and retail companies in the world. The company has established itself as a premier third-party logistics provider that supports all facets of the supply chain. Through strategic acquisitions, Romark continues to grow organically and has masterfully blended its investments, making it a strong value-added business. In addition, its flexible environment was created to enable customers to grow, adapt and remain competitive. www.foodlogistics.com

FLOG0819_18-31_AWARDS_JY.indd 27

Sonwil Distribution Center Location: Buffalo, New York Website: www.sonwil.com Year Founded: 1942 Number of Employees: 550 Area Served: National Asset/Non-asset: Both Worth Noting: Sonwil Distribution’s robust technology platform, operational expertise and continued investment

Innovation is Expected

Jacksonville

Puerto Rico

Technology that Offers Advantages As an industry leader, TOTE Maritime offers you the benefits of emerging technology with NaturaLINE© – the world’s first reefer units to use natural refrigerant.

We’ve pioneered using CO2 in place of conventional synthetic refrigerants to ensure your perishables maintain the correct temperature in the most environmentally sustainable way. Shipping efficiently with a smaller carbon footprint is just part of the TOTE Maritime difference – contact us today.

1.877.775.7447 | totemaritime.com

AUGUST 2019 | FOOD LOGISTICS

27

8/1/19 1:33 PM

Bulk/ Liquid Air Ca rgo 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 e ra Full T ted Truckin rucklo g ad Draya g e Se r v ices Contin uou Fuel S s Moves aving s Prog Direc ram t Stor e Deli Truck v e ry load B roker Rail/T age ruck Tran Full S ervice sload Ma n a Custo ged T ms Br ransp okera ortatio Other ge n

2019

TOP Omni Transloading & Logistics www.omnitransloading.com

• •

Penske Logistics www.penskelogistics.com

•

• •

•

•

•

• • • • • • • • • • •

• • • • • •

•

•

• •

• • •

• • •

Phoenix Logistics www.phoenix3pl.com Port Jersey Logistics www.portjersey.com

•

WAREHOUSE/COLD STORAGE

Cross Dock Fulfillm ing ent Inven tory/ Multi- Cost Acco unting Vendo 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-Ma Wareh naged Inv entor ousin y 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

Consulting

• •

•

•

•

•

•

• • •

• •

•

• • • • • • •

• •

•

• • •

• •

•

• • • • • • • • • •

• •

•

• • • • •

•

• • • • •

• •

• •

Progressive Logistics Inc. www.progressivelogistics.com

• • • • • •

Quality Distribution Inc. www.qdislc.com

• • • •

• • • • • • • •

R2 Logistics www.r2logistics.com

• •

• •

•

• •

• • • • •

Red Classic www.redclassic.com

•

• •

• •

Redwood Logistics www.redwoodlogistics.com

• •

• • •

• •

RLS Logistics www.rlslogistics.com

• •

• • •

•

• • • •

•

•

•

•

•

• • • • •

•

•

•

•

•

• • • • • • • • • •

• • •

•

Romark Logistics www.romarklogistics.com

• • • • • • • • • • •

• •

Ryder System Inc. www.ryder.com

•

Saddle Creek Logistics Services www.sclogistics.com

• •

Scotlynn Group of Companies www.scotlynn.com

• • • •

• •

•

• • • • • • • • • • •

• • • • •

• • • • • • •

•

• • •

• • •

• • • • • • • •

• •

• •

• •

• • •

• •

Scout Logistics Corporation www.scoutlogistics.com

•

Seaonus Cold Storage www.patriotports.com

•

Sonwil Distribution Center www.sonwil.com

•

Star Distribution Systems Inc. www.stardistribution.us

•

• •

The Shippers Group www.theshippersgroup.com

•

• •

TRAFFIX www.traffix.com

• • •

• •

• • • • •

•

•

Transportation Insight www.transportationinsight.com

• • • • •

• • •

FOOD LOGISTICS | AUGUST 2019

FLOG0819_18-31_AWARDS_JY.indd 28

•

• • • • •

•

• • • • • • • •

•

• •

•

•

• • •

•

Building pallet displays for big box retailers, assemble variety packs

• • • • • •

•

Packaging

• • • • • • • • • • •

•

•

• •

• • • • • •

Transervice Logistics Inc. www.transervice.com

• • •

• • • • • • • • • • • • •

• •

• •

•

•

•

• • • • •

•

•

•

• • • •

• •

• •

TransAmerica Express Logistics LLC www.transamericaexp.com

•

• •

• • • •

• •

• •

• •

• •

•

•

• • •

• •

Total Quality Logistics www.tql.com

•

• •

• • • • • • • • •

• • • •

•

•

• • • • • • • • • • • • • •

•

Total Distribution Inc. www.peoplesservices.com

•

Primary and secondary packaging, supply chain consultancy services, 4PL services, real-estate development, facilities management, sustainability management

• •

• •

•

States Logistics Services www.stateslogistics.com

28

•

• • • • • • •

• •

•

• •

• • •

SFL Companies www.sflcompanies.com

Sunset Transportation Inc. www.sunsettrans.com

•

Plant support, shuttle services

• • • • •

• • • •

Certifications - SQF, ISO 90012015, WMBA and ASI Food Grade

• •

•

• • •

•

• • • •

• • • • • • • • • • • • •

•

• • •

•

• • • • • • •

•

• •

•

• • • • • •

• • •

• • •

• • •

•

•

www.foodlogistics.com

8/1/19 1:33 PM

integrated global supply chain innovation

01and de

upply ancy

,

,

et ig

iety

Integrated Supply Chain Solutions Transportation Management

Advancing progress, unlocking a greater potential.

Supply Chain Packaging Services

At DSC Logistics, we provide dynamic supply

Business Process Integration

chain leadership for customers based

Supply Chain Consulting Omnichannel

on collaborative partnerships, innovative solutions and high-performance operations.

Logistics Center Management

Ready to lead in the global marketplace, we

Business Intelligence

have joined with CJ Logistics, accelerating our

Retail Consolidation + Requirements Technology Human Capital

transformation strategy to deliver customer value in new and expanded ways.

Learn more at dsclogistics.com/solutions

International Freight Forwarding Medical + Healthcare Cross-Border Transportation TES (Technology, Engineering, Systems + Solutions) Dynamic Supply Chain Leadership

dsclogistics.com

m

FLOG0819_18-31_AWARDS_JY.indd 29

8/1/19 1:33 PM

Bulk/ Liquid Air Ca rgo 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 e ra Full T ted Truckin rucklo g ad Draya g e Se r v ices Contin uou Fuel S s Moves aving s Prog Direc ram t Stor e Deli Truck v e ry load B roker Rail/T age ruck Tran Full S ervice sload Ma n a Custo ged T ms Br ransp okera ortatio Other ge n

2019

TOP Transportation One www.transportationone.com

• •

• • • •

• •

Triple T Transport www.triplettransport.com

• •

• • • •

• •

TTS Logistics www.ttslogistics.net

• •

•

• • • •

• • •

United States Cold Storage www.uscold.com

• •

UNIVERSAL CHAIN INC. www.uchaininc.com

• • •

• • • • • • • •

•

• • • • • •

• • •

• • • • • • • • • • • • • • • • • • • •

• • • • • •

•

•

• • • • •

• • •

• • •

•

Zipline Logistics www.ziplinelogistics.com

• • •

• • • • • • • • •

• • • • • • • • •

CROSS DOCKING

REFRIGERATED

in its team and process is its recipe for success over the last 75 years. With locations in New York, New Jersey, Texas and Nevada, Sonwil’s footprint continues to expand, providing scalable and innovative solutions to meet the challenges of its clients.

Total Quality Logistics Location: Cincinnati, Ohio Website: www.tql.com Year Founded: 1997 Number of Employees: 5,500 Area Served: North America Asset/Non-asset: Non-asset Worth Noting: Total Quality Logistics works directly with nine of the top 10 food and beverage companies in North America, meeting or exceeding all FSMA and SFCR regulations. The company carefully maintains relationships with the most reliable carriers to give them the flexibility they need to move fresh food quickly and cost-effectively.

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: In its 50th year, Transervice Logistics continues to provide contract maintenance, full-service leasing and logistics services to many Fortune 500 companies throughout North America and Puerto Rico. The company’s full disclosure and gainshare philosophy is award winning and is responsible for many strategic partnerships.

FOOD LOGISTICS | AUGUST 2019

FLOG0819_18-31_AWARDS_JY.indd 30

•

• •

WSI www.wsinc.com

OCEAN

• • • • •

• • •

VersaCold Logistics Services www.versacold.com

30

• • • • •

•

Vantage Logistics LLC www.vantagelgs.com

Werner/Werner Logistics www.werner.com

WAREHOUSE/COLD STORAGE

Cross Dock Fulfillm ing ent Inven tory/ Multi- Cost Acco unting Vendo 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-Ma Wareh naged Inv entor ousin y 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

•

•

•

• •

•

•

Universal Chain Inc. Location: Denver, Colorado Website: www.uchaininc.com Year Founded: 1982 Number of Employees: 1,000 Area Served: National Asset/Non-asset: Non-asset Worth Noting: At Universal Chain, companies know that their lumping and logistics operations will run smoothly and efficiently. The company has taken what was once a raw and undeveloped industry and transformed it into a structured, accountable and standardized service—one focused on saving its clients time and money. Universal Chain’s commitment to quality in legal lump has helped it build a solid reputation for dependable service that upholds warehouse, carrier and vendor relationships.

Worley Warehousing Inc. Location: Cedar Rapids, Iowa Website: www.worleycompanies.com Year Founded: 1977 Number of Employees: 185 Area Served: U.S. Region, National, North America Asset/Non-asset: Both Worth Noting: Worley Warehousing has a unique strategic advantage by being located in Iowa. The company provides its clients with the ability to rapidly respond to market demands and seasonal fluctuations. The culture of Worley reflects the value it brings to its clients by being a resource—not just a service.

www.foodlogistics.com

8/1/19 1:33 PM

LET’S MANEUVER THE STREETS TOGETHER IN AN FTR

w

d

ds

a

• • • • • •

Low Cost of Ownership Class-Leading Fuel Economy Optional Extended Warranties Oil Change Program GVWR 25,950 lbs.

Multiple Wheelbases Allow for Bodies 14 - 30 ft., which Equates to a Bigger Payload

• Diesel Engine with a Design Life of 375,000 Miles • Excellent Maneuverability, Beneficial to Your Business • Exceptional Visibility for Navigating Neighborhoods and Business Complexes • Accommodates Any Body to Fit Your Specific Business Needs

e

Isuzu vehicles are assembled from component parts manufactured by Isuzu components to Isuzu’s exacting standards for quality, performance and safety.

Please see your authorized Isuzu dealer for details.

Motors Limited and by independent suppliers who manufacture such Vehicle shown with optional equipment. Some equipment is dealer installed.

© 2019 ISUZU COMMERCIAL TRUCK OF AMERICA, INC.

m

FLOG0819_18-31_AWARDS_JY.indd 31

8/1/19 1:33 PM

THIRD-PARTY & REFRIGERATED LOGISTICS

BY JENNIFER EISENBART

IN TRANSIT: FSMA ATTENTION TO TRANSPORT COMING F

(Transporters are) now getting into a jargon of

food safety conversation that they may or may not be familiar with.”

or the last eight years, the Food Safety Modernization Act (FSMA) has been changing the way food safety—and food logistics management—are addressed in the United States.

As the last of FSMA’s seven rules, the Sanitary Transport of Food (STF), takes effect and is put into practice, its full impact on food transportation remains unknown.

A best practice policy for the STF rule, Refrigerated Transportation Best Practices Guide, was introduced two years ago.

At 49 pages, the guide is already in use throughout the food transportation industry, says Don Durm, vice president of customer solutions for PLM and co-author of the guide. However, the FDA is working with the Global Cold Chain Alliance (GCCA) on formalizing a shorter version for its website. The question now is: How are those practices interpreted and put into place from food processor to transportation to distribution warehouse to the last mile?

Don Durm, vice president of customer solutions, PLM

Best Practices Defined

As Durm explains, the idea of best practices took form after the FDA began implementing FSMA and its rules in the agency’s 2011 overhaul of U.S. food safety. Durm and the guide’s co-authors, with guidance from GCCA, developed the document as an educational resource, knowing the FDA was focusing primarily on food processor inspection efforts.

The guide provides an overview of the STF and key requirements, as well as training and education, prerequisite programs and defined food safety procedures, and specific sections that address sanitary conditions for reefers, reefer operating procedures, pre-cooling of trailers, and other sections explaining each step along the transportation route.

The FDA also states within the STF rule that the shipper holds the primary responsibility in the sanitary transportation of food. More specifically, the rule applies to each shipper within the supply chain. Thus, as a food shipment changes hands throughout its transpor-

tation route, the rule applies to that shipper.

“So that commodity now…may have 10 different shippers,” said Durm, adding that each shipper has to define to the next transporter how to best handle the product.

Durm also has been traveling the country educating others about FSMA, and admitted that the STF rule is incredibly complex. “All the other rules are not written this way,” Durm said. He said the government wrote the rule, then received feedback from many industry leaders before clarifying the rule.

“In FDA’s good-faith effort to explain the STF rule, it’s communicated in a three-part conversation,” Durm said. “People are believing what they think is in the rule. I go around the country speaking on

A best practice policy for the STF rule, Refrigerated Transportation Best Practices Guide, was introduced two years ago by authors Patrick Brecht, Ph.D., president of PEB Commodities, Inc.; Don Durm, vice president of customer solutions, PLM; and Bud Rodowick, strategic relations, Food Safety and OEMs, Thermal King, with contributions from Stephen Neel, Ph.D., senior technical director, Global Cold Chain Alliance.

The GCCA Best Practices Guide is available as a free download at https://www.gcca.org/resources/transportation-guide.

32

FOOD LOGISTICS | AUGUST 2019

FLOG0819_32-35_3PL_JY_JY2.indd 32

www.foodlogistics.com

vitpho / iStock / Getty Images Plus

Experts in the field are waiting for the FDA to decide when and how to implement safety inspections.

8/1/19 1:36 PM

RT

N

at

as

n,�

A single-source approach

F e, s

to fresh solutions.

e

m

vitpho / iStock / Getty Images Plus

s, ns r

When you make the decision to take your business to the next level and need advice on the design and construction of your food facility, ESI Group USA can deliver the expertise to get you there.

Find out more at esigroupusa.com/services

FLOG0819_32-35_3PL_JY_JY2.indd 33

8/1/19 1:36 PM

3PL

continued

“Swab-a-thons” are FDA inspections involving 150 to 300 cotton swabs to test for problems.

this subject, bringing clarity on it. “(Transporters are) now getting into a jargon of food safety conversation that they may or may not be familiar with,” Durm added.

That is where the best practices document comes into play. As the document says in its introduction, “The STF ruling identifies shippers as the primary responsible holder when it comes to determining appropriate standards for sanitary transportation of food products. The FDA defines shippers as a person who initiates a shipment of food by motor vehicle or rail vehicle. However, carriers, loaders and receivers must also abide by the STF ruling, agree to designated shipper requirements, and perform as expected and per shipper requirements.

“In other words, many in our industry will be affected by the FDA’s STF ruling, and we are all responsible for being educated and prepared to meet the resulting requirements. Ultimately, we are all responsible for food safety and the sanitary transportation of food.”

Durm said that each shipper is responsible for knowing the protocols for

the particular item it is transporting, and those protocols are then transferred along each step in the cold chain. Plans can be as detailed as necessary. For example, identifying the type of contamination that triggers a washdown of a reefer trailer’s interior or whether a reefer runs on cycle-sentry or continuous run while transporting temperature-sensitive items from frozen food to fresh vegetables.

34

FOOD LOGISTICS | AUGUST 2019

FLOG0819_32-35_3PL_JY_JY2.indd 34

Despite the completion of the Durm said that is where the Refrigerated Transportation Best focus remains at this point, and as a Practices Guide in 2016, there reresult, transportation has yet to exmains a need for ongoing education. perience a major impact. He did say Dominic DiCarlo, director of safety that 133 of the inspections were and compliance for Lineage Logis“enhanced,” meaning that the FDA tics, said that Lineage has closely returned to the food processor for followed the STF since its inception further inspection of its trailers. and updated practices and informed “My message is: don’t relax. They carriers of necessary processes. just haven’t gotten to us yet,” Durm explained, though he recommended “While we work closely with the bigger players, we have focused our that transport companies should always seek competent attention on some legal advice concerning of the smaller While we work regulatory requirements carrier compaclosely with the that relates to their nies to promote bigger players, particular business. He the provision of we have focused added that companies sanitary trailers,” our attention on understand the basics of DiCarlo said. some of the smaller protocols, but that those “Sometimes we carrier companies protocols haven’t really find they are not to promote the been tested. accustomed to the

provision new regulations, or “We don’t have don’t fully appreciincidents currently where of sanitary ate their impact on they say, ‘here, we’re going trailers.” the supply chain to tack this on you,’” Durm Dominic DiCarlo, director as it relates to said. of safety and compliance, Lineage Logistics ensuring sanitary “Everyone is doing this transportation of stuff in good faith,” Durm food products. added. “Do I think that everyone “We have an obligation as a 3PL has it down? No. We really haven’t to ensure compliance,” he added. gotten tested on this yet, in trans“As a partner with customers and portation. The FDA has not had the carriers alike, we make sure they personnel to focus on transportaunderstand our internal policies tion.” on a continuous basis and maintain Durm cautioned that the inspeccompliance throughout the extend- tions will be coming, however, and ed supply chain.” the question will be when—and how—those inspections will be Where FSMA Is implemented.

Currently Focused “I can’t tell you how quickly the FDA will move,” Durm said. “I just In the last year, Durm said that know at some point they will get nearly 450 full inspections have to transportation. Everyone has been done by the FDA—all focused basically relaxed because they don’t at the food processing level. About half of those inspections resulted in see anything right now—no tangible enforcement. fines, he added.

“I don’t know if that’s the effecThe term “swab-a-thon” was coined to describe these inspections, tive way of looking at transportation,” Durm added, regarding the which grew from being 2 to 3 hours “swab-a-thon” test of trailers. “I for an inspection to 3 to 7 days.

“They’re going in there with about would doubt it.”

Various certification processes 150 to 300 cotton swabs and walking into different places where there are also being instituted, including one for companies to test their pacould be a problem. Swabs are put in a paper bag and sent to the lab for perwork processes and knowledge through the GCCA—the Certified analysis,” Durm said. “We have not Cold Carrier process. seen that in transportation.” www.foodlogistics.com

8/1/19 1:36 PM

C thr cha allo of ad tra low its “ bas tifi “Th pe D use the “ be op

Lo RO

W cau com the ar

w

sa xay

A r

ey m ed

s

f e

re ng m

is m

Certification procedures exist throughout the transportation chain, with BRC, SQF and AIB, that allow vendors to verify the safety of food shipped to consumers. The additional certification process for transportation, Durm said, will allow for food transportation to have its own certification process.

“Those standards are set because basically you’re paying for the certification of the audit,” Durm said.

“They audit you and ensure you’re performing to an industry standard.”

Durm said that alignment—the use of best practices throughout the cold chain—will be key.

“Make sure there is alignment between all parties and standard operating procedures,” said Durm.

Looking Into the ROI Crystal Ball With the focus on maintaining caution, Durm explained that many companies are seeing the impact on their bottom line—especially when a recall happens. The estimated

average cost of a food recall is approximately $10 million. Durm said that 15 percent of customers never return to a product after it’s been recalled.

Deciding to follow best practices can also affect fuel costs, costs per mile and even cleaning costs when a trailer must convert from shipping frozen chicken to fresh produce.

For the best return on investment, it’s critical to establish firm rules, said Durm.

“We’re trying to set good standards that are based on science and unit functionality, which we’ve never done before,” Durm said.

“Transportation is taking on all those things. We’re just trying to manage through that right now.

That’s why the best practices guide is a good conversation piece.”

There’s also an opportunity for the food transportation industry to further benefit from blockchain technology coupled with the Internet of Things. Durm said there is a specific request for funds by the

FDA for research into technology.

In fact, digital confirmation of assets will soon become a “must have.”

“That’s the key here,” Durm said.

“The digital convergence…will bring all this together, seamlessly, to track and trace.”

DiCarlo agrees. When asked about RFID sensor tags and their potential to enhance the safety process, DiCarlo said RFID is the “future of logistics management in terms of identifying products with human interaction, eliminating wasted time and resources in the receiving, storage and shipping process.”

“In the extended cold food supply chain, specifically in fully automated environments, RFID provides a significant benefit to the shipper as well as the warehouse operator by continuously monitoring temperature, location/traceability, and product flow in real time,” DiCarlo explained. “RFID data loggers also help the warehouse operator to analyze trends in both process and operations.”

We’re trying to set good

standards that are based on science and unit functionality, which we’ve never done before.”

Don Durm, vice president of customer solutions, PLM

’t he -

cd

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

n’t ble

g age

m

Temperature monitoring

Product movement traceability

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

www.foodlogistics.com

FLOG0819_32-35_3PL_JY_JY2.indd 35

24/7 monitoring and response

Analytics and insights

Follow us @controlant on Twitter

AUGUST 2019 | FOOD LOGISTICS

35

8/1/19 1:36 PM

SECTOR REPORTS WAREHOUSING

BY MACKENNA MORALEZ

K rob na wa

ROBOTICS GROWTH IN THE WAREHOUSE

❶

trie to wa on ma tio be rac em wh

❷

Kindred

To stay competitive in the e-commerce age, companies will need to start implementing robotics.

J

ust two years ago, “machine learning” and “artificial intelligence” were phrases hardly uttered in the warehouse space. Now, it’s very commonplace as facilities are switching over to emerging technologies to help relieve pain points in the production process.

“Robotics across all industries are changing rapidly in a number of ways,” says Zach Gomez, director of customer success

36

FOOD LOGISTICS | AUGUST 2019

FLOG0819_36-37_WarehouseV2_JY.indd 36

for Kindred.

In Kindred’s whitepaper “Robotics in Fulfillment: When Automation Becomes the Newest Warehouse Team Member,” the company details how emerging technologies are drastically changing the warehouse space.

Automation and robotics have improved many tasks that are typically assigned to warehouse staff. By using new

technologies, tasks are performed at a quicker pace and with less effort. This allows warehouses to shift human capital to more valuable functions and gain greater efficiencies.

According to the report, once the e-commerce boom began in 2015, SKUs at average warehouse or fulfillment centers increased by 18.5 percent. The rise helped increase demands on pick, packing and shipping operations; however, it left many operations short-handed as they aimed to fulfill orders at a faster rate to keep up with the likes of Amazon.

“The challenge with automation is that current automated solutions require every piece to be the same size and shape and come in the same orientation,” Gomez explains. “There’s solutions that solve for that, but obviously with food, everything is a different size or shape and it’s very unstructured and seasonal. What is distributed in December doesn’t match what’s distributed in May, so it’s important to be flexible.”

Right now, the warehousing industry is facing a challenge when it comes to flexibility as automation requires everything to be the same. Designing for automation requires more control on the warehousing side, though that tighter control can be difficult to gain.

“Humans are great at that ability [picking and packing]. Right now, robotics doesn’t have that ability,” Gomez says.

“Even machine learning and AI are still not at the capacity of what a human can do.”

Though, tighter specifications and determining which technology is right for your warehouse can help combat these challenges.

www.foodlogistics.com

7/31/19 3:27 PM

Ap ad to ful ret no

❸

(AG wa au pu wit int sys sup tio wo tas cos ha

❹

(AM AG mo tru pe int hu wit bri she ful

❺

Of pie the go Cu to rec pic mo

H E

to r

at s ed

ny

p

t

pe ez

s

ant

exi-

n ng

cs

ot

or

m

Kindred outlined five types of robotics that are currently dominating the fulfillment operation in a warehouse. ❶ Automated Storage and Retrieval Systems (AS/RS). Designed to retrieve and put away goods, warehouses choose an AS/RS based on their needs and software will manage a majority of their operations. The machine grabs materials between aisles that move along racks to retrieve goods and allows employees to work more efficiently while reducing physical activity. ❷ Goods-to-Person (G2P as Applied AS/RS). Created to deliver a desired product, package or SKU to a fixed pick station to help staff fulfill orders. Some devices may return goods to their slots that are no longer needed. ❸ Automated Guided Vehicles (AGVs). As a growing option for the warehouse space, the technology automates warehouse forklifts, pushcarts and small-vehicle fleets with improvements to artificial intelligence and visual detection systems. AGVs carry goods and supplies from one or multiple locations to another, delivering items to workers so they can focus on other tasks. However, high investment costs and limited flexibility have halted the implementation of AGVs. ❹ Autonomous Mobile Robots (AMRs). AMRs—a slight upgrade to AGVs—can reach a more autonomous state. These robots, carts and trucks are able to move independently without needing direct intervention or assistance from a human. With solutions integrated with fixed-location robots, it can bring goods and materials from shelves to the final station that is fulfilling orders. ❺ Piece-Picking Solutions.

Often referred to as robotic arms, piece-picking solutions focus on the movement and protection of goods within a certain location.

Currently, the machines are used to help warehouses with product receiving and storage, and support pick-and-pack for goods that move at high volumes. In addition,

www.foodlogistics.com

FLOG0819_36-37_WarehouseV2_JY.indd 37

GROCERS TURN TO ROBOTICS

BY JOHN R. YUVA It is a vivid image. A young me 30 years ago in my first job as a grocery bagger for Hy-Vee, a supermarket chain based in the Midwest. Carefully but quickly bagging groceries into a cart and unloading them into the customer’s vehicle before racing the cart back inside and repeating the process.

While supermarkets still rely on bagging ninjas, many customers have turned to e-commerce to place grocery orders for pickup or delivery. According to eMarketer, “…retail e-commerce sales of food and beverage products in the U.S. will surpass $22 billion this year, growing more than 20 percent annually through 2021.”

Supermarkets are responding to e-commerce growth with automated solutions for efficiency gains and lower operating costs to better serve their customers. One company looking to revolutionize e-grocery is Boston-based Takeoff Technologies with its automated micro fulfillment centers.

The company’s innovative approach includes condensing an existing supermarket and converting the open real estate into a micro fulfillment center—one that’s fully automated using robotics to complete orders. With online orders placed through a supermarket’s e-commerce app or Takeoff’s own user interface, retailers can achieve profitable online growth at a hyper local scale.

“There’s significant potential for microfulfillment centers for e-grocery, with a projection of thousands in the U.S. alone,” says Jose V. Aguerrevere, CEO and co-founder of Takeoff Technologies.

“Any given micro fulfillment center can successfully fulfill 4,000 orders per week across neighboring markets in a 15- to 25-mile radius.”

Thus far, several supermarket chains have launched Takeoff micro fulfillment centers.  Sedano’s Supermarkets launched the first-ever robotic supermarket to service Florida’s Miami-Dade County.  Ahold opened a micro fulfillment site in one of its Stop and Shop stores in Connecticut.  Albertsons Companies announced it is implementing the Takeoff solution in two sites to open later this year.  Wakefern Food Corp. opened a Takeoff automated warehouse to support online orders of its ShopRite supermarkets.

“E-grocery is growing at a much higher pace and is entering an inflection point worldwide and in the U.S., particularly, which had been lagging other developed markets,” says Aguerrevere. “Technology advancements coupled with evolving shopper expectations around convenience and value are key catalysts. And major players in the grocery industry have started to make bold moves to tap into this market.”

piece-picking solutions make it easier for companies to perform activities for new SKUs. “One thing that all those technologies have in common is that they can benefit the food industry.

All are meant to improve efficiencies and reduce impacts on human labor,” Gomez says.

Gomez suggests that AGVs may be the easiest to implement because the motorized cart can reduce strain on humans as it eliminates walking long distances.

However, it is still crucial to be flexible when implementing robotics as there are infinite factors that affect automation. For example, layout of the operation, temperature of the warehouse and number

of aisles and racks can play a factor into how much time it takes to fulfill an order.

The future of robotics can take two paths, the paper suggests.

There will either be further development of existing models or the inclusion of new tools to support other activities. With e-commerce expected to grow at a rapid pace in the coming years—particularly in the food and beverage space— robotics in the warehouse will only increase. According to the whitepaper, 10 percent of all U.S. warehouses have begun using automated robotics. In order to stay competitive, companies will have to determine which solution is the best for them.

AUGUST 2019 | FOOD LOGISTICS

37

7/31/19 3:27 PM

SECTOR REPORTS TRANSPORTATION

BY JENNIFER EISENBART Utility Trailers introduced its patented Utility Aerodynamic Tail which reduces fuel use and aerodynamic drag.

REEFER TRAILERS CONTINUE

EVOLUTION Regulations, coupled with cost reduction and sustainability efforts, are changing the face of refrigerated transport.

38

W

ith a growing need for both a continuous cold chain to transport food as well as move items as sustainably as possible, it’s no wonder that the reefer trailer market has been tagged as fast growing.

Technavio analysts report that the global refrigerated transportation market will grow at a CAGR of almost 7 percent through 2022, with the market concentrated among a few key players.

However, challenges exist as carriers work toward sustainability and a greater return on investment through reduced fuel costs and

FOOD LOGISTICS | AUGUST 2019

FLOG0819_38-41_TRANSP_JY.indd 38

emissions, as well as compliance from a tightening set of environmental regulations.

So, what are three of the market’s providers doing to meet the challenges and demands?

Stoughton Trailers Ron Jake, marketing manager at Stoughton Trailers LLC in Stoughton, Wisconsin, has seen his company make the jump into the reefer trailer market in the last two years with the PureBlue refrigerated trailer.

The trailer focuses on three key market elements—weight, cost

and thermal performance—using structural composites in areas that improve thermal performance and also decreases trailer weight.

“With our PureBlue refrigerated trailer line, Stoughton has a complete trailer offering, which has added more value to our dealer network and grown our customer base,” Jake explained, adding that the engineered composite material in the rear doors and front wall, working with an otherwise conventional design, has been met with enthusiasm.

“PureBlue is an innovative, conventionally designed trailer that is more thermally efficient, lighter weight and safer than other competitive trailers on the road today,” Jake said.

The use of bonded side posts reduces the number of holes in the sidewalls to prevent moisture intrusion, and the composite framing in the front wall and rear doors, in addition to reducing weight and improving thermal efficiency, allow more payload.

One of the largest investments in the PureBlue line is the Hennecke foam wall press, (designed to insulate trailer sidewalls) and includes wall panels processed in a continuous pour mode, “providing a uniform, consistent foam fill,” Jake said.

Utility Trailers With 45 percent of the market growth in refrigerated transportation forecasted to be in the Asia-Pacific region, it’s not a surprise that California-based Utility Trailers is at the forefront of change in the market.

www.foodlogistics.com

7/31/19 3:42 PM

C pre for tha in C reg nia En inc aer

Stou bas

at d

ed

Craig Bennett, senior vice president of sales and marketing for Utility, highlighted changes that are first being implemented in California due to stringent regulations from both the California Air Resources Board and the Environmental Protection Agency, including emission reductions and aerodynamic improvements. Utility, Stoughton Trailers LLC expanded its customer base with its PureBlue refrigerated trailer line.

due to its location, needed to make these changes a priority to meet the state’s requirements.

“That was something that was required,” Bennett said. “We created our own device. There were some devices developed by third parties that were aerodynamicists, but they lacked knowledge about life cycle and structure and how to integrate those into the trailer design.”

In December, the company introduced its patented Utility Aerodynamic Tail, which when paired with low-rolling resistant tires and configured on a utility dry van or reefer, will reduce fuel use and aerodynamic drag.

“They will save anywhere from 2.5 percent to 4 percent of the fuel bill, depending on the speeds the rigs are driving at,” said Bennett. “All those

variables will affect the mileage, just like it will in your car.”

The tail weights just 25 pounds and is compatible on dry vans and reefers with rear swing doors.

The UAT is made of UV-protected thermoplastic compositive, comprised of two full-height side fairings and a single full-width roof fairing. The side fairings connect to the rear swing doors, and automatically deploy when the doors are closed and fold back when they are open—requiring no additional driver involvement.

The roof fairing doesn’t interfere with lock rods or rear light areas, and meets all DOT photometric requirements.

“The air goes back about 4 to 5 feet, and then it just goes away,” Bennett said, versus air creating addition turbulence. “That’s another fuel savings of about 3 percent to 4 percent.”

There were some devices developed by third parties that were aerodynamicists, but they lacked knowledge about life cycle and structure and how to integrate those into the trailer design.”

Craig Bennett, senior vice president of sales and marketing, Utility Trailers

Wabash National Looking to improve both thermal efficiency as well as fuel economy,

ed

n

e ru-

n

Temperature.Controlled.

w

n

m,

on

e

m

Dedicated Management Team • Online Shipment Information 24/ 7 Priority Service Schedules Two-Way Communication with Remote Temperature Control For more information about our Temperature www.foodlogistics.com

FLOG0819_38-41_TRANSP_JY.indd 39

Control Division, visit: www.alliance.com

2017 EXCELLENCE AWARD WINNER

AUGUST 2019 | FOOD LOGISTICS

39

7/31/19 3:42 PM

SR

2019 Educational Webinar Series STAY ON TOP OF THE LATEST TRENDS AND BEST PRACTICES IN THE GLOBAL FOOD AND BEVERAGE SUPPLY CHAIN.

COMING UP August 21

Smart Investments: Choosing the Right Software & Technology SPONSORED BY: Verizon Connect & Orkin

_________________

September 18

Cold Chain’s Hot Innovations SPONSORED BY: Thermo King

DETAILS, REGISTRATION & ON-DEMAND WEBINARS: FOODLOGISTICS.COM/ WEBINARS

T IME: 1:00 PM E ST / 12 PM C S T / 11:00 AM MS T / 10:00 AM PS T

_________________

October 16

Adapting to Change: Software & Technology

SPONSORED BY: BluJay Solutions& Omnitracs

AVAILABLE NOW ON-DEMAND Blockchain & IoT

_________________

SPONSORED BY: Elemica

November 3

SPONSORED BY: Trimble Visibility, Great Dane Trailers & Controlant

The Changing Face of 3PLs _________________

Creating an Integrated Global Cold Chain Automated Warehouse Solutions

SPONSORED BY: WITRON Integrated Logistics, Ehrhardt Partner Group and SSI SCHAEFER

December 11

Hottest Food Supply Chain Trends Coming in 2020 SPONSORED BY: SAP

_________________

To become an expert panel sponsor, contact: Judy Welp, Associate Publisher 480-821-1093 | jwelp@ACBusinessMedia.com Carrie Konopacki, Sales Manager 920-542-1236 | ckonopacki@ACBusinessMedia.com Dates are subject to change.

FLOG0819_38-41_TRANSP_JY.indd 40

7/31/19 3:42 PM

Laf no the po W ma foo wa in D am (M roo com cre the I tra an “ ly l pre Wa cat rat flo am “

SR: TRANSPORTATION

continued

Lafayette, Indiana-based Wabash has now been in the reefer market for the last three years with an all-composite refrigerated truck body.

While Wabash started in the market with smaller 14- and 26foot trucks, a 53-foot reefer trailer was made commercially available in December 2018. The trailer uses a molded structural composite (MSC) for its nose, sidewalls and roof, as well as a hybrid of metal and compositive flooring. The idea is to create a trailer that addresses both thermal and fuel efficiency.

In addition to those benefits, the trailers are intended to last longer and weigh less as well.

“First, it’s going to last significantly longer,” said Robert Lane, vice president of product innovation for Wabash. “Depending on the application, (the floor) tends to deteriorate over time. We’re confident our floor is not going to do that. It’s just a much stronger floor.

“Second, the insulation proper-

www.foodlogistics.com

FLOG0819_38-41_TRANSP_JY.indd 41

ties of the trailer are improved,” Lane added. “Typically, you lose insulation value through water intrusion, which deteriorates the foam, or through outgassing of the foam. With our technology, we’re able to minimize or avoid both those occurrences.”

Lane said the way that the trailer is built with the composite materials reduces the amount of outgassing. However, proper care should eliminate water intrusion.

He also anticipates a longer lifespan for the MSC trailer. Though he is reluctant to make an exact prediction. Already, Lane said, the company is seeing a “much slower loss” of thermal efficiency in comparison with conventional trailers.

“If the trailer doesn’t lose ther-

Wabash National introduced an all-composite refrigerated truck body that uses MSC for its nose, sidewalls and roof.

mal efficiency and the structure doesn’t break down, then that’s two less reasons to retire the trailer,” Lane said. “We give (owner/operators) the opportunity to keep the trailer significantly longer than any other product on the road.”

AUGUST 2019 | FOOD LOGISTICS

41

7/31/19 3:42 PM

SECTOR REPORTS SOFTWARE &

TECHNOLOGY

BY MARY SHACKLETT

GS1 STANDARDS TRANSFORM THE FOOD SUPPLY CHAIN

GS1 standards provide systems interoperability, leading to greater data accuracy and supply chain transparency.

S

aladino’s is the largest independently owned foodservice distributor in California, and the 14th largest distributor in the nation. One of the company’s foodservice operators required Saladino’s to start receiving and scanning GS1-128 barcodes. With the ability for data capture at the case level and its role in food traceability programs, Saladino’s implemented GS1-128 barcode-scanning capabilities upon receipt into its distribution centers and at customer delivery points. What resulted was a more efficient operation and greater supply chain visibility.

The company decided to implement GS1 standards even further, integrating better data quality practices, such as physical product audits to ensure every physical product matches its system data.

This was used to fill any gaps in product data from suppliers.

Standards for Competitive Advantage Like Saladino’s, many foodservice companies are finding that GS1 standards are a key to staying competitive and agile in today’s rapidly changing business environment.

There are more than 140 compa-

42

FOOD LOGISTICS | AUGUST 2019

FLOG0819_42-43_SOFTWARE_JY.indd 42

nies that participate in the GS1 Foodservice Standards initiative, an indicator of the widespread support GS1 standards are receiving.

“In our case, the GS1 standards helped us rewire our approach to how we managed our products,” said Craig Urrizola, CIO of Saladino’s Foodservice. “We were able to move from sizing routes based on case count to sizing routes based on cube and gross weight. It also enabled us to launch a new WMS system for three warehouse locations within a single year.”

Developed by a consortium of industry members, GS1 standards provide a common language to identify supply chain data.

“Simply put, GS1 standards provide visibility,” said GS1 U.S. Vice President Angela Fernandez, who oversees the organization’s foodservice initiative. “When a product is visible in the supply chain, companies have more control. By setting up products to be uniquely identified and traced using GS1 standards—an interoperable, standardized data exchange infrastructure—companies are filling in the gaps left open by proprietary numbering systems, paper-based recordkeeping, manual labor and otherwise unorganized data.”

Transparency Through Standards Supply chain visibility based on standards provides many benefits.

One of the most popular use cases is for recall readiness. Companies can isolate products faster during a food recall if they can alert trading partners about where products were shipped and when. They can also make more details available about sourcing or ingredients for the consumer. Additionally, more than 80 percent of shoppers use their smartphones to conduct research prior to purchasing a product in a store, according to the Food Marketing Institute.

“Standards help brands and retailers provide consumers with consistent and trustworthy information,” said Fernandez. “Also, standards can help food brands serve their supply chain partners better and more efficiently, leading to better on-shelf availability and inventory accuracy.”

There are many GS1 standards, but according to GS1, the three standards that are most impactful to food supply chain visibility are: • Global Trade Item Numbers (GTIN). These globally unique identifiers can be recognized in all trading partner systems, even

www.foodlogistics.com

7/31/19 3:45 PM

•

s. sies a g

praetorianphoto / E+ / Getty Images

across geographic boundaries.

• Global Location Numbers (GLN).

GLNs uniquely identify supply chain partner locations such as manufacturing plants, distrib-

utor loading docks or restaurant locations, and can be used in supply chain tracking.

• GS1-128 barcodes. When applied at the case level, GS1-128 barcodes enable companies to encode product identifiers as well as additional information such as batch/lot/serial numbers, best-by dates, variable weight information and more (all are key details that help companies isolate affected product during a recall).

“We wanted a quicker and more accurate means to identify products at all stages of the distribution lifecycle (e.g., receiving, picking, delivering), but we also wanted to improve how we handled the rotation of perishable items to better track lots for consumer product safety reasons and to provide our purchasing, sales, customer service, and customers with better information about the products we sell,” said Saladino’s Urrizola.

n

Other companies in the food and beverage industry have followed suit.

At Tyson, GS1-128 barcodes were implemented to provide case-level traceability to help enable stability and reliability; and at Ocean Mist Farms, GTINs were implemented for each product to improve traceability and supply chain visibility.

“While there is still much work to be done to bring all supply chain partners up to speed on the benefits of a standards-based framework, progress has been made in the fresh foods areas—including meat and poultry, and produce,” said Fernandez. “GS1 standards provide systems interoperability and help companies work toward greater data accuracy…They are key to creating more consistency and reliability in the underlying business applications that support key use cases by enabling systems to essentially speak the same language.”

GS1 standards provide systems interoperability and help companies work toward

greater data accuracy…”

Angela Fernandez, vice president, GS1 US

R

odod

o,

ng

INTEGRITY. QUALITY. TODCO.

,

l

n en

m

WWW.TODCO.COM

www.foodlogistics.com

FLOG0819_42-43_SOFTWARE_JY.indd 43

ROLL-UP DOORS - SWING DOORS - RAMPS - PARTS

800-248-6326

AUGUST 2019 | FOOD LOGISTICS

43

7/31/19 3:45 PM

Despite port automation adoption in Europe, the U.S. remains cautious about impacts on the workforce.

P

PORT AUTOMATION DEBATE RAGES

ort automation is a much-denector. RailComm’s yard managebated topic these days. As ment system will allow for remote ports, labor unions, governcontrol of 83 powered rail switches and 38 powered derail devices. ment agencies and logistics firms RailComm says that from either weigh in over potential job losses and cost savings, automation has become a centralized office location or a remote touchscreen kiosk, switches an increasingly sensitive issue. can be remotely thrown individually The debate is especially hot at or lined as part of a route by either the Port of Los Angeles, according a yardmaster or work crews on the to coverage by the Los Angeles ground. The yard control system alTimes. Maersk plans to start using driverless electric cargo handlers lows crews to move intermodal cars inside its huge facility. The global carrying containers through the shipping giant facility without says the 130 vehimanually throwcles and associating switches.

How clear are ed infrastructure the benefits of will help the Port automation and of Los Angeles is the heavy cost compete with justified? A recent East Coast and Moody’s report Gulf ports. The on automated Times reported Moody’s port terminals that starting in finds that automated terminals late July, Maersk planned to install have 40 percent to 70 percent the first of its 45-foot-high robotic lower labor requirements, but machines, which transfer containwarns there are significant political ers from ships to trucks. and social risks associated with On the East Coast, the Georgia labor unions due to the impact on Port Authority recently selected RailComm, LLC as the yard manage- employment.

Moody’s said that at the TraPac ment system provider for the new Port of Savannah Multi-Modal Con- terminal at the Port of Los An-

AUTOMATED TERMINALS HAVE

40-70%

LOWER LABOR REQUIREMENTS.

44

FOOD LOGISTICS | AUGUST 2019

FLOG0819_44-47_Ocean_JY.indd 44

BY JOHN MCCURRY

Port of Barcelona

SECTOR REPORTS OCEAN PORTS & CARRIERS

geles—which was redeveloped predominantly as a fully automated operation from a conventional operation—it was estimated that the use of automated straddle carriers for waterside horizontal transport would reduce the number of workers per dock crane by 50 percent, and the use of automated stacking cranes in the container yard would reduce the number of workers per yard crane by 80 percent.

Indeed, a survey released by McKinsey late last year shows that port automation is now a clear trend. Eighty-percent of the survey’s respondents anticipate that at least half of greenfield projects over the next five years will be partly or fully automated. More than half believe at least 50 percent of the top 50 ports will begin retrofitting projects over the next five years.

McKinsey notes that up-front capital outlays are major. To justify these heavy investments, it’s estimated that operating expenses of an automated greenfield terminal would have to be 25-percent lower than a conventional terminal or productivity would have to rise by 30 percent while operating expenses drop by 10 percent.

www.foodlogistics.com

7/31/19 3:47 PM

ed e s t k-

g d r

at

at ver r

g

Port of Barcelona

THE STRENGTH AND SPEED OF A POWERHOUSE PORT Discover what 20-plus leading shipping lines already know: the fastest, most efficient route for perishables flows through Port Everglades. Our fast, reliable connections — and new opportunities for South America-to-South Florida fruit importing — gets produce to market faster, fresher and more efficiently by eliminating 2,000 miles and up to six days of transit time to Florida markets. Put the power of Florida’s leading perishables port to work for you. Visit us at porteverglades.net or call 800-421-0188.

• Less than one mile from the Atlantic Shipping Lanes • Direct highway access • One traffic signal to Los Angeles • Rail connections throughout the U.S.

• Ocean shipping to 150 ports in 70 countries • Florida’s leading seaport for refrigerated cargo handling • Cold-storage facilities

y

l er ro0 s

m

FLOG0819_44-47_Ocean_JY.indd 45

7/31/19 3:47 PM

continued

Labor Concerns Over Automation Moody’s says political risk and general opposition to automation by “labor partners” present serious challenges, though they vary by region. In the U.S., there is mounting union and political opposition to automation. Moody’s cites as an example a signature feature of the 2018 International Longshoremen’s Association contract was the prohibition on fully automated container terminals at ports on the East Coast and Gulf Coast.

Many U.S. port authorities enjoy political and financial support from state and local governments, Moody’s says, because the ports directly support hundreds or thousands of jobs.

“Even if not explicitly stated, there is likely a limit to the will-

ingness of many port authorities and their parent governments to support automation initiatives that result in meaningful job losses,” Moody’s says. “However, ports and labor partners can work to mitigate the ultimate impact by retraining and rehiring workers to perform new jobs, such as maintenance and repair.”

Port Automation in Europe Perhaps U.S. ports interested in improving efficiencies could take a lesson from several ports around the world that have embraced automation. One of those is the Port of Rotterdam, Europe’s largest port.

Rotterdam has long been a leader in innovation and automation. It was the first port in the world with automated guided vehicles and the first with automated terminals.

Last year, the Port of Rotterdam Authority and IBM announced a multi-year digitization initiative

to transform the port’s operational environment using Internet of Things (IoT) technologies in the cloud to benefit the port and those who use it.

The initiative will also prepare the Port of Rotterdam’s entire site to host connected ships in the future. This data will be analyzed by IBM’s cloud-based IoT technologies and turned into information that the Port of Rotterdam can use to make decisions that reduce wait times; determine optimal times for ships to dock, load and unload; and enable more ships into the available space.

The Port of Barcelona is another European port where automation has taken hold. Hutchison Ports’ BEST container terminal in the Port Port of Barcelona

SR: OCEAN PORTS & CARRIERS

DO YOU KNOW THE REAL TEMPERATURE OF YOUR PRODUCT AT DELIVERY? The Cooltrax Wireless Wedge provides independent continuous product level monitoring throughout the journey to ensure your product arrives fresh.

Product level monitoring is statistically proven to be more accurate than just the trailer temperatures from the refrigeration unit.

Contact the cold chain experts to ensure end-to-end product integrity.

cooltrax.com | info.us@cooltrax.com | 877-667-6868

46

FOOD LOGISTICS | AUGUST 2019

FLOG0819_44-47_Ocean_JY.indd 46

www.foodlogistics.com

7/31/19 3:47 PM

Po op ou in m C qu ve ga op are 16 H rat set ach 20 pe by M ear as Tu Sin it o mo veh au I tha low as or refl pe tra as inc con “ mo can lev po vol

ad s

er n

ort

m

of Barcelona, recently Moody’s notes that the adoption of container termireceived six new autonal automation is growing globally. The main challenges mated stacking cranes for the sector, Moody’s says, include: (ASC) from the Finnish • Maintaining competitive costs and profitable opsupplier Konecranes, erations amid a constrained pricing environment increasing its storage • Ensuring reliable and consistent productivity as capacity from 24 to vessel and consignment sizes increase 27 automated blocks.

• Maximizing land use efficiency and throughput These cranes are capacity of existing facilities electric and move on • Mitigating environmental impacts associated rails, like most of the with port operations. terminal’s equipment.

While penetration is still quite low—in 2018, Guillermo Belcastro, automated facilities accounted for only 3 percent of CEO for Hutchison the approximately 1,300 terminal facilities worldPorts BEST, said, “This investment will result in a significant increase in wide. Automation represents an opportunity for port operational and storage capacity at the terminal and will contribute to authorities to address these multiple challenges. our continuous improvement of service levels both in maritime and land operations.”

Currently, BEST has 11 Super Post-Panamax quay cranes that are able to operate the biggest vessels in the world, 48 ASCs, two rail-mounted gantry cranes (RMGs) and 30 shuttle carriers to operate the terminal, which occupies 80 hectares and has a 1,500-meter berth with a depth of 16.5 meters.

Hutchison Ports says since its official inauguration in September 2012, BEST has continued to Phase Change Material attracts, set new standards for ports in Southern Europe: absorbs, and stores up to 85% of heat infiltration. achieving a ship productivity rate of more than 200 movements per hour and a sustained average Intelligent Controls prioritize temperatures while minimizing performance of more than 40 movements per hour refrigeration run time to cut freezer by crane—one of the highest in the world. energy costs up to 50%.

Meanwhile, the Port of Singapore was also an early adopter of automation. That will continue as it develops the massive Tuas Megaport, which will be …

Singapore’s lone seaport when densifying it opens in 2040. Plans call for the more than 1,000 driverless container vehicles and about 1,000 automated yard cranes. terminal In its report, Moody’s notes can allow that the decision by ports in ports to better low-labor-cost regions—such and more as China, Dubai, Indonesia consistently or Morocco—to automate manage reflects the need to comvolumes.” pete on service for regional Moody’s transshipment volumes as well as the need to reliably process increasingly larger cargo exchanges brought by container shipping lines and alliances.

“As ships have become larger and load/unload more containers per port call, resulting in significantly higher volume peaks that can strain service levels, densifying the container terminal can allow ports to better and more consistently manage these volumes,” Moody’s says.

INTELLIGENCE + SAFE THERMAL MASS

www.foodlogistics.com

FLOG0819_44-47_Ocean_JY.indd 47

47

AUGUST 2019 | FOOD LOGISTICS vikingcold.com/fl

7/31/19 3:47 PM

SHOW COVERAGE: CSCMP

BY MACKENNA MORALEZ

A GUIDE TO CSCMP EDGE T he Council of Supply Chain Management Professionals (CSCMP) is hosting its annual supply chain conference—CSCMP EDGE—in Anaheim, California, from September 15-18.

The premier event offers an unwavering commitment to the future of supply chain professionals and the industry, showcasing leading-edge content and cutting-edge solutions.

The conference brings professionals together for innovative idea sharing and thought leadership in supply chain management.

Meanwhile, EDGE is offering complimentary conference registration to military service members who are transitioning to civilian life.

In addition, CSCMP is offering a free one-year membership for service members.

CSCMP is also encouraging attendees to attend coveted facility tours at the Port of Los Angeles, Disneyland and the Los Angeles

International Airport.

Throughout the tours, attendees will get a behind-the-scenes look at how some of the biggest supply chain locations in the U.S. keep operations running smoothly and efficiently.

The conference is dedicated to creating an environment that

48

FOOD LOGISTICS | AUGUST 2019

FLOG0819_48-51_CSCMP_JY.indd 48

allows guests to build connections and facilitate provocative discussions—all with the intent to discover new strategies to lead their organizations.

Over the course of days, participants can absorb a year’s worth of supply chain trends and best practices, hearing from the top supply chain executives and academics as they describe their own experiences in the industry.

Such insights will leave attendees buzzing about valuable solutions to supply chain challenges and shared lessons learned.

On the first day, EDGE is hosting a Women Leaders Forum from 3:00 p.m. to 5:00 p.m. The forum is open to all attendees and brings industry leaders together to discuss how women are transforming the supply chain industry through thought leadership and innovation.

This year, the event will host Ashley Tyrner, founder and chief executive officer of Farmbox Direct, as a keynote speaker.

Throughout her talk, Tyrner will detail her journey of becoming a businesswoman and eliminating food deserts across the United States.

Monday morning’s keynote session, Better and Faster: The Proven Path to Unstoppable Ideas, featuring Jeremy Gutsche, chief executive officer at Trend Hunter, uncovers innovation blind spots and illustrates how organizations compare to the world’s top innovators. His lessons are drawn upon untold experiences from people surrounding the industry that have achieved remarkable

success by simply seizing the opportunities many have overlooked.

Throughout his talk, Gutsche enables attendees to recognize patterns and clues, leading them to be a better investor, innovator, creator and adaptor.

Tuesday’s keynote session, The Gig Economy and the Millennial’s Journey to Change the World, features a stand out panelist of—you guessed it—millennials.

Seema Bansal, co-founder of Venus ET Felur; Chieh Huan, chief executive officer of Boxed; and Eric Termuende co-founder of NoW Innovations will join the stage with CSCMP’s moderator contest winner to discuss the age of disruption and what that means for the “youths.” The panel will address the many facets of being an entrepreneur in the digital age, taking into account what to envision for the future and how to plan for change in the world.

Sarah Thomas, the NFL’s first permanent female official, closes out the keynote sessions with her talk, Going After Your Goals for the Right Reasons, on Wednesday morning. During her session, Thomas will share essential leadership lessons that she learned in an industry that is typically dominated by men. Her insights on gender equality in the world of professional sports are easily translated to every field or industry.

CSCMP understands that there are varying knowledge levels when it comes to the supply chain. That’s why sessions are separated into three different levels: foundational, applied and strategic. The conference is offering 100 different educational sessions on a range of topics surrounding the supply chain industry.

www.foodlogistics.com

7/31/19 4:10 PM

Fo

SE

SE

SE

SE

w

d.

ate or

f ic

t p-

Food Logistics recommends: SESSION: A LOOK DOWN THE ROAD—CARRIER CEOS SPEAK WHEN: Sept. 16 (10:30 a.m. – 11:30 a.m.)

ABOUT: During this session, carrier leaders discuss how they

SPEAKERS: James Fields, chief operating officer, PITT OHIO;

respond to issues such as high operating costs, tight markets, government regulations and emerging technologies. Learn how regulations and legislation are impacting transportation budgets while gaining insight on the current logistics landscape.

Robert Howard, chief operating officer, Dohrn Transfer; Derek Leathers, president and chief executive officer, Werner Enterprises; Gail Rutkowski, executive director, NASSTRAC

he -

e

rhe ng s, er al d ider al y

e en t’s

n-

m

SESSION: CRISIS RESPONSE: TRADE WARS, NATURAL AND UNNATURAL DISASTERS WHEN: Sept. 16 (10:30 a.m. – 11:30 a.m.)

ABOUT: In a time when trade wars and extreme weather events are constantly making headlines, it is crucial to know SPEAKERS: Stan de Caluwe, senior supply chain solutions how your company will respond. During this session, a panel manager, Holland International Distribution Council; Gabriele of trade compliance and goods movement experts discuss the Hennecke, head of logistics excellence and digitalization, Siespectrum of crisis response, helping attendees understand mens AG; Rob Lewin, director, Flowserve Corporation; Eduarimport/export documentation and legality. do Vargas, regional director, Morrison Express Corporation SESSION: HOW DOES THE NEW NAFTA AFFECT THE BORDER PROCESS WHEN: Sept. 16 (10:30 a.m. – 11:30 a.m.)

SPEAKERS: Ben Bidwell, director of customs brokerage, C.H.

Robinson; Jason Craig, director of government affairs, C.H. Robinson; Christina Kopitopolous, director of customs and trade affairs at the office of the U.S. Trade Representatives, U.S. Government; Kathy Neal, global trade compliance director, Regal Beloit

ABOUT: Earlier this year, the United States, Canada and Mexico negotiated a new trade agreement called the United States-Mexico-Canada Agreement (USMCA)—effectively getting rid of NAFTA. In this session, industry stakeholders detail how they are planning for the potential changes. In addition, attendees will receive insight from a member of the U.S. Trade Representative’s office.

SESSION: THE AMAZON EFFECT—ADAPTING TO SKY-HIGH CUSTOMER EXPECTATIONS WHEN: Sept. 16 (2:00 p.m. – 3:00 p.m.)

ABOUT: La-Z-Boy executive Kim Ballewske speaks on her experience in adapting La-Z-Boy to a business model that can SPEAKERS: Kim Ballewske, vice president of distribution and compete in the highly service-oriented space. Throughout this customer experience, La-Z-Boy Inc.; Wilbur Deck, solutions session, attendees can determine how to adopt best practices engineering manager, Trimble Visibility in automating customer service response within the supply chain, while gaining insight on emerging technologies in the final-mile delivery space.

www.foodlogistics.com

FLOG0819_48-51_CSCMP_JY.indd 49

AUGUST 2019 | FOOD LOGISTICS

49

7/31/19 4:10 PM

CSCMP

continued

SESSION: THE GROWING IMPORTANCE OF BLOCKCHAIN—LESSONS LEARNED AND REAL-WORLD IMPLICATIONS WHEN: Sept. 16 (2:00 p.m. – 3:00 p.m.)

ABOUT: Blockchain isn’t just a buzzword in the industry anySPEAKERS: Paul Chang, global blockchain industry leader, more—it’s a tangible solution being utilized by big companies, distribution & industrial markets, IBM Blockchain; Anita Garsuch as IBM, to bring visibility back to the supply chain. This session will go beyond the theory of what blockchain technoldeva, IBM Food Trust, IBM Blockchain, IBM; Luis Hernandez, WW digitalization program manager, Hewlett Packard Enterogy is and discuss two functioning solutions: IBM’s Food Trust with Golden State Foods and Deutsche Post/DHL’s Freight prise; Jason Maddox, Deutsche Post/DHL, DHL; Bob Wolpert, Invoice System with Hewlett Packard Enterprise. While chief strategy and innovation officer, Golden State Foods examining the ledgers, attendees will also receive advice and suggestions for building and deploying their own blockchain technology.

SESSION: DRIVER SHORTAGE SOLVED THROUGH DRIVER LEASING ON-DEMAND WHEN: Sept. 16 (3:30 p.m. – 4:30 p.m.)

ABOUT: The ongoing driver shortage has been plaguing the transportation industry for some time now, creating signifiSPEAKERS: Justin Clarke, founder and chief executive officer, F|Staff; Kirk Hellofs, vice president of operations, States cant staffing challenges. New marketplace technology allows Logistics; April Ray, chief marketing officer, F|Staff carriers and drivers to have the power when it comes to driver staffing. During this session, attendees will assess the current driver staffing model and recognize any opportunities that marketplace technology can deliver.

SE

SE

SE

SESSION: CSCMP’S 30TH ANNUAL “STATE OF LOGISTICS REPORT” PRESENTED BY PENSKE WHEN: Sept. 17 (10:30 a.m. – 11:30 a.m.)

ABOUT: Attendees can take away useful insights to help plan SPEAKERS: Joe Carlier, senior vice president of global sales, their business strategies for the coming year. The report, auPenske Logistics; Jill Donoghue, vice president of supply thored by A.T. Kearney and presented by Penske Logistics, will chain, Bumble Bee Seafoods LLC; Kevin Smith, president and provide an overview of the economy during the past year, the chief executive officer, Sustainable Supply Chain Consulting; logistics industry’s key trends and the total U.S. logistics costs Thomas Williams, group vice president of consumer products, for 2018. In addition, the session includes an interactive diaBNSF Railway logue with a panel of report contributors and industry leaders.

SESSION: THE DRIVING FORCE BEHIND AUTONOMOUS FLEETS WHEN: Sept. 17 (10:30 a.m. – 11:30 a.m.)

SPEAKERS: Richard Beyer, vice president of engineer, research

and development, Bendix Commercial Vehicle Systems LLC; Robert Brown, head of public and government affairs, TuSimple; Craig Harper, executive vice president and chief operations officer, J.B. Hunt Transport; Stephan Keese, senior partner, Roland Berger LLC; Dennis Mooney, senior vice president of product development, Navistar

ABOUT: Autonomous vehicles are going to hit the road— whether we are ready for them or not. Self-driving fleets are expected to solve many concerns that are currently surrounding the transportation industry. While the technology is raising questions, industry experts will explore the effects that autonomous vehicles will have on the transportation industry during this session.

ADVERTISER INDEX ADVERTISER

Throughout the course of the three-day event, supply chain leaders from all around the globe will gather to connect with one another.

Networking with fellow innovators and academics is just one of many reasons to attend. Visit the CSCMP EDGE website, www.cscmpedge.org, to register today.

50

FOOD LOGISTICS | AUGUST 2019

FLOG0819_48-51_CSCMP_JY.indd 50

PAGE

Alliance Shippers 39 Burris Logistics 17 Columbia Machine, Inc. 25 Controlant 35 DSC Logistics 29 DSW Distribution 24 ESI Group USA 33 Great Dane Trailers Inc. 54 H&M Bay Inc 19 Isuzu Truck 31 Johanson Transportation Service 41 Liberty Cold 5 Next Generation Logistics 26

ADVERTISER

PAGE

Odyssey Logistics 23 Penske Truck Leasing 2-3 Port Everglades 45 Port Tampa Bay 21 Romark Logistics 13 Thermo King 7 TODCO 43 TOTE Maritime 27 United Fresh Produce Association 51 Utility Trailers 9 Viking Cold Solutions, Inc. 47 Worley Warehousing Inc 11

www.foodlogistics.com

7/31/19 4:10 PM

w

SESSION: BUILD TOMORROW’S SUPPLY CHAIN TEAM TODAY WHEN: Sept. 17 (3:30 p.m. – 4:30 p.m.)

ABOUT: Learn how to effectively recruit the next generation of

es,

SPEAKERS: Tisha Danehl, vice president, Ajilon; Clay Jackson,

olust

vice president of supply chain planning, Tractor Supply Company; Jennifer Krueger, director, S&OP, Ulta Beauty; Mike Levans, group editorial director, Peerless Media LLC

supply chain leaders—Gen Z and millennials—in this seminar.

Join the discussion to learn which strategies your organization should use to attract, develop and retain future talent.

d n

ws

e es

SESSION: INDUSTRY 4.0: PLANNING PHYSICAL AND VIRTUAL INVENTORY WHEN: Sept. 17 (2:00 p.m. – 3:00 p.m.)

ABOUT: During this session, attendees can explore the physi-

SPEAKERS: Stuart McAvoy, global director of supply chain

cal/virtual inventory model and the partnership between UPS and Fast Radius. With an in-depth Q&A to follow, members will learn about physical/virtual inventory forecasting and assess the role of 3D printing in supply chain.

optimization, UPS; Pat McCusker, chief operating officer, Fast Radius; Daryl Slaght, portfolio owner global inventory solutions, UPS

SESSION: LEVERAGING TALENT TO INNOVATE, DISRUPT AND SCALE YOUR SUPPLY CHAIN WHEN: Sept. 18 (8:30 a.m. – 10:30 a.m.)

SPEAKERS: Betsy Bingham, vice president of integrated supply

ABOUT: Learn talent strategies that are designed to innovate,

chain, Honeywell; Kristin French, chief of staff, Defense Logistics Agency, U.S. Department of Defense; Sally Miller, chief information officer, North America, DHL; Dana Stiffler, vice president of research, Gartner; Beth Ward, senior vice president of supply chain, Hallmark; Trish Young, vice president of strategic enterprise capabilities, value streams, Nike

disrupt and scale supply chains for value creation during the final session of the conference. Attendees can learn how to leverage diversity to attract and retain top talent to meet supply chain goals.

ll e s

s.

Join the Fight Against Listeria!

Learn to better manage Listeria monocytogenes through sanitary design, sanitation best practices, environmental monitoring and more.

e

s

m

Listeria Monocytogenes Intervention & Control Workshop October 30-31, 2019 | Four Seasons Produce Headquarters, Ephrata, PA

TO LEARN MORE AND TO REGISTER, VISIT:

WWW.UNITEDFRESH.ORG

www.foodlogistics.com

FLOG0819_48-51_CSCMP_JY.indd 51

AUGUST 2019 | FOOD LOGISTICS

51

7/31/19 4:10 PM

FOOD (AND MORE) FOR THOUGHT

BY LARA L. SOWINSKI

CYBER SECURITY

Threats Expose Risk in the Maritime Sector The advent of automation, AI and other emerging technologies is exacerbating the risks and vulnerabilities in the maritime sector.

O

n July 29, news media reported that a hacker accessed a Capital One server containing customer information and personal data of more than 100 million people, making it one of the biggest data thefts ever involving a bank.

While high-profile cyber attacks on banks, credit agencies and retailers grab headlines, cyber attacks in the maritime sector are just as dangerous even though they receive much less attention.

The Wall Street Journal reports that the advent of automation, artificial intelligence and other emerging technologies is exacerbating the risks and vulnerabilities in the maritime sector, especially as it steams toward operating vessels without— or with limited—crew.

Ten years ago, Somali pirates in speedboats hijacked the Maersk Alabama with Capt. Richard Phillips and 20 crewmembers on board. It ended when U.S. Navy SEAL snipers killed three of the pirates and captured a fourth. Today, it’s cyber pirates who pose the biggest threat, according to cyber security experts.

Marine Safety Alert The U.S. Coast Guard (USCG) issued a Marine Safety Alert (Safety Alert 06-19) on July 8 in response to a “significant cyber incident” that occurred in February aboard a cargo ship bound for the Port of NY/NJ. According to the agency, the vessel’s crew alerted the USCG that they were “experiencing a significant cyber incident impacting their shipboard network.”

While the USCG ultimately determined that “malware significantly degraded the functionality of the

52

FOOD LOGISTICS | AUGUST 2019

FLOG0819_52-54_FoodThought_JY.indd 52

onboard computer system,” essential control systems were not affected.

“Nevertheless, the interagency response found that the vessel was operating without effective cyber-security measures in place, exposing critical vessel control systems to significant vulnerabilities.”

In its Marine Safety Alert, the USCG added that: “It is unknown whether dan_prat / E+ / Getty Images this vessel is representative of the current state of cyber security aboard deep draft vessels. However, with engines that are controlled by mouse clicks, and growing reliance on electronic charting and navigation systems, protecting these systems with proper cyber security measures is as essential as controlling physical access to the ship or performing routine maintenance on traditional machinery. It is imperative that the maritime community adapt to changing technologies and the changing threat landscape by recognizing the need for and implementing basic cyber hygiene measures.”

Cyber Attacks Occurring It’s chilling to imagine some of the risks facing the maritime sector.

In an article from TradeWinds, a global shipping news source, “A worst-case scenario might involve

intrusion that invokes a cascade failure of a vessel carrying hazardous or polluting material, or possibly sustained disruption to networked navigational systems that could have an industry-wide impact,” said Mark Sutcliffe, director of CSO Alliance, an online community of shipping company security officers, in an interview.

Mega-ports like Rotterdam and Singapore are also vulnerable to hacks, which could result in a “significant operational and consequently financial impact on the entire European Union logistics and transport chain,” Sutcliffe added.

Here are a few other noteworthy cyber attacks that targeted the maritime sector, according to TradeWinds: In June 2017, AP MollerMaersk was hit with the NotPetya cyber attack that cost the Danish conglomerate $300 million or more.

Last September, several servers that are part of the Port of Barcelona’s security infrastructure were hacked, exposing security vulnerabilities.

Days later, the Port of San Diego’s IT systems were infected with ransom ware that prompted investigations by the FBI and Department of Homeland Security.

The hyper-connected global supply chain whose goal is true end-to-end visibility, along with the proliferation of smart assets and cloud computing is great, but only if cyber-security measures keep pace.

www.foodlogistics.com

7/31/19 3:52 PM

ly

ve

k

n y ars,

e

o ks, t

he d

y rids:

Calling all software and technology providers If you ensure a safe, efficient and reliable global food and beverage supply chain then you could be recognized.

e. rs

NOW ACCEPTING NOMINATIONS Nomination deadline: September 20, 2019 Winners will be announced in the November/December 2019 issue

h tit Global Supply Chain Solutions for the Food and Beverage Industry

ply d n g

m

SUBMIT YOUR NOMINATION AT:

FOODLOGISTICS.COM/AWARDS Nomination dates and issues may change. Consult the call-for-entries email and nomination survey for confirmation

FLOG0819_52-54_FoodThought_JY.indd 53

7/31/19 3:52 PM

leads the way Great isn’t simply a promise, it’s our purpose. It’s why we’re looking to the future, developing new technologies and focusing on our customers’ growing needs. It’s what makes us ready for the road ahead and why Great Doesn’t Stop.

GreatDane.com

Great Dane and The Oval are registered trademarks of Great Dane LLC. 741 DMD 0319.

FLOG0819_52-54_FoodThought_JY.indd 54

7/31/19 3:52 PM