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Food Logistics



Global Supply Chain Solutions for the Food and Beverage Industry



Think Ahead


The Port of New Orleans dredged its channel, expanded its container terminal and purchased new gantry cranes to handle larger post-Panamax ships, such as this one from Maersk Line.

Issue No. 181 October 2016

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2017 Super Duty® preproduction models shown. Available fall 2016. Some vehicles shown with optional features and aftermarket equipment. *Based on IHS Automotive, Polk 1985–2015 U.S. Class 1c-8 New Registrations, excluding SUVs.

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With a lineup that ranges from the flexible Transit Connect to the powerful F-650 and F-750, it’s no wonder Ford has racked up three decades of leadership. What does that mean for you? It means whatever you do for work, you can bet there’s a Ford commercial vehicle that can help you do it better. Find your perfect vehicle at

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October 2016 ISSUE NO. 181


Gulf Coast Ports Think Ahead

The process to ready Gulf ports for the Panama Canal expansion began years ago. Take a look at what’s already been done.



Changing of the Guard


The maritime industry is caught up in a sea of change, but not all of it is negative. COOL INSIGHTS

Improved Cold Chain Management Is Key to Reducing Food Loss 14

Breaks in the cold chain can and do occur, but there are ways to reduce, and even prevent, food loss. FOOD (AND MORE) FOR THOUGHT

Ensuring an ERP Deployment Reaches a Successful Conclusion


20 28

Assigning ownership for ERP integration and establishing clear project goals are just some of the ways to keep an ERP deployment on track.


Supply Scan 11 Food on the Move 40 Ad Index 8




Temperature Control Technology

Logistics providers tap a bevy of innovations to maintain cold chain integrity.



Watch Your Back

The comfortable truth about warehouse ergonomics ... TRANSPORTATION

Buying Versus Leasing: Factors to Consider 28

The decision to own or lease rests on the operator’s specific needs; total cost of ownership is always critical.


How the Internet of Things Transforms TMS 32

The IoT improves carrier connectivity, enhances asset visibility and brings more business intelligence. OCEAN PORTS & CARRIERS


IoT Technology Uplifts Container Tracking Improving monitoring capabilities prompt ocean carriers to invest in intelligent containers.

WEB EXCLUSIVES • Increasing Efficiency in Food and Beverage Logistics

• India Considers Using HighSpeed Passenger Trains for Cold Chain Perishables

• Food Logistics’ Educational Webinar Series

Published and copyrighted 2016 by AC Business Media Inc. All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording or any information storage or retrieval system, without written permission from the publisher. Food Logistics (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 Inc., 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. Canada Post PM40612608. Return undeliverable Canadian addresses to: Food Logistics, Station A, P. O. Box 25542, London, ON N6C 6B2. Subscriptions: U.S., one year, $45; two years, $85; Canada & Mexico, one year, $65; two years, $120; international, one year, $95; two years, $180. All subscriptions must be paid in U.S. funds, drawn from a U.S. bank. Printed in the USA.



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



he maritime industry is like a time-honored institution—stable, predictable, influential—until it’s not. The past few years were marked by high-profile consolidations and alliances among global ocean carriers. Meanwhile, specialized reefer carriers’ dominance in the transportation of temperature-controlled perishable cargoes yielded to major box carriers with no chance of returning. Now, Hanjin’s exit from the marketplace is the big news, and rightly so, given the shock waves that continue to roil supply chains. Finally, rates are at historic lows and shippers hold the cards, at least for the time being. Yes, the maritime industry is in the midst of significant disruption and change, but it’s not entirely negative. For one, the expanded Panama Canal is opening up new opportunities for carriers and seaports along the U.S. East and Gulf coasts. Specifically, this month’s cover story examines how New Orleans, Houston and Mobile (Alabama) are positioning themselves for increased trade, while others— including cold storage operators and transportation providers—are also preparing for more business. Florida’s Port Canaveral (pictured above), a newcomer of sorts to the ocean cargo segment, is making a major move to diversify its portfolio and take advantage of growing cargo imports/exports in the region, as well as growing consumer demand in central and south Florida. The port committed millions of dollars in capital investments to accommodate containerships, and a variety of reefer and dry cargoes, from fresh fruits and vegetables to automobiles and more. It’s a noteworthy development for a port that was for years known primarily for its cruise ship business. It also speaks to the fundamental changes taking place at other seaports due to changing trade lanes. Institutions do change over time. It may be slow, but it’s profound when it happens. Enjoy the read.




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PRINT AND DIGITAL STAFF Group Publisher Jolene Gulley Associate Publisher Judy Welp Editorial Director Lara L. Sowinski Editor Ronnie Garrett Managing Editor Elliot Maras Associate Editor Carrie Mantey Web Editor Eric Sacharski Senior Production Manager Cindy Rusch Creative Director Kirsten Crock Senior Audience Dev. Manager Wendy Chady Audience Development Manager Angela Kelty ADVERTISING SALES (800) 538-5544 Associate Publisher (East Coast) Judy Welp (480) 821-1093 Sales Manager (Midwest & West Coast) Carrie Konopacki (920) 542-1236 National Automotive Sales Tom Lutzke (630) 484-8040, EDITORIAL ADVISORY BOARD Smitha G. Stansbury, partner, FDA & life sciences practice, King & Spalding Raymond J. Segat, director, cargo & business development, Vancouver Airport Authority Dr. Barbara Rasco, professor and interim director, School of Food Science, Washington State University Adriano Melluzo, vice president, national sales, Ryder CIRCULATION & SUBSCRIPTIONS P.O. Box 3605, Northbrook, IL 60065-3605 (877) 201-3915, Fax: (800) 543-5055 Email: LIST RENTAL Elizabeth Jackson, Merit Direct LLC (847) 492-1350, ext. 18, Fax: (847) 492-0085 Email: REPRINT SERVICES Carrie Konopacki (920) 542-1236 Fax: (920) 542-1133 AC BUSINESS MEDIA INC. Chairman Anil Narang President and CEO Carl Wistreich Executive Vice President Kris Flitcroft CFO JoAnn Breuchel VP of Content Greg Udelhofen VP of Marketing Debbie George Digital Operations Manager Nick Raether Digital Sales Manager Monique Terrazas Published and copyrighted 2016 by AC Business Media Inc. All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording or any information storage or retrieval system, without written permission from the publisher.

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New York State Gov. Andrew Cuomo recently announced he was allocating $15 million toward building a food hub. The state-of-the-art hub is planned for the Hunts Point section of the South Bronx. The governor’s news was met with cautious optimism among organizations that consider the hub a means to end a distribution bottleneck between rural upstate farmers and urban downstate consumers. The 120,000-squarefoot indoor/outdoor market, which is expected to break ground in fall 2017, is hoping to make fresh produce more affordable in vulnerable communities.


A.P. Moller - Maersk A/S will separate into two divisions; an integrated transport and logistics division and an energy division. The main growth focus of A.P. Moller - Maersk A/S going forward will be delivering transportation and logistics services as an integrated transport and logistics company. Building on the group’s position within container transport and port Image courtesy of operations, and in supply chain management and freight forwarding, Transport & Logistics will leverage its position through new product offerings, digitalized services and individualized customer solutions. “The industries in which we are operating are very different, and both face very different underlying fundamentals and competitive environments,” said Michael Pram Rasmussen, chairman of the board. “Separating our transport and logistics businesses and our oil and oil-related businesses into two independent divisions will enable both to focus on their respective markets.”


Image courtesy of United Poultry Concerns at

Daily Updates at

Maplevale Farms, a New York food distributor, claims in an antitrust class action that Koch Foods, Tyson Foods, Perdue Farms, Pilgrim’s Pride, Sanderson Farms and others have conspired for eight years to reduce chicken production, pushing up the price of broiler chickens by nearly 50 percent. Maplevale Farms filed suit September 2 in Chicago federal court. Maplevale claims that since 2008 the wholesale price of broiler chickens has risen by nearly 50 percent while feed prices have dropped more than 20 percent—and not because of a free market. Poultry breeders faced a similar antitrust complaint of setting production levels and prices in the 1970s.


Twice as many of the nation’s top fast food chains are responding to the public health concern about antibiotic resistance by adopting strong policies that prohibit the routine use of antibiotics, or medically important antibiotics, in the meat and poultry they serve. This is according to the second annual Chain Reaction report and scorecard, a group which grades America’s top 25 restaurant chains on their policies and practices regarding antibiotics use and transparency in their meat and poultry supply chains.



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Image courtesy of

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Agriculture Secretary Tom Vilsack announced the U.S. DepartIn a fact sheet posted online while on the campaign trail, the ment of Agriculture (USDA) Branded Food Products Database, Trump campaign highlighted a number of “specific regulations to a free online resource for families, the food industry be eliminated” under the Republic Party and researchers containing nutrition details on more nominee’s economic plan, including than 80,000 name brand prepared and packaged what they called the “FDA Food Police,” foods available at restaurants and grocery stores. The according to The Hill. announcement was made at the Global Open Data for “The FDA Food Police, which dictate Agriculture and Nutrition (GODAN) Summit. how the federal government expects The USDA Agricultural Research Service partnered farmers to produce fruits and vegetables with the International Life Sciences Institute North and even dictates the nutritional content America, GS1 US, 1WorldSync, and Label Insight to of dog food,” the Trump campaign fact develop the new database and user-friendly interface sheet complained. “The rules govern the to make it easier for private food companies to add and soil farmers use, farm and food producupdate data. tion hygiene, food packaging, food temThe Branded Food Products Database expands the peratures and even what animals may Image courtesy of the gallery at USDA National Nutrient Database, which contained roam which fields and when,” the fact basic information on about 8,800 branded foods and is the main sheet continued. “It also greatly increased inspections of food source of food composition data for government, researchers and ‘facilities,’ and levies new taxes to pay for this inspection overkill.” the food industry. It is expected the new database will include up “My plan will embrace the truth that people flourish under a to 500,000 products as information is added in the future. minimum government burden,” Donald Trump said, arguing that slashing protections and regulations would raise the nation’s economic growth rate to at least 3.5 percent. The campaign deleted the comments within days.


German drug and crop chemical maker Bayer clinched a $66 billion takeover of U.S. seeds company Monsanto, ending months of wrangling with a third sweetened offer that marks the largest all-cash deal on record, according to Reuters. Werner Baumann (left), CEO of The $128-a-share deal, Bayer AG, and Hugh Grant (right), up from Bayer’s previous Chairman and CEof Monsanto. offer of $127.50 a share, has Image courtesy of Bayer at emerged as the signature deal in a consolidation race that has roiled the agribusiness sector in recent years, due to shifting weather patterns, intense competition in grain exports and a souring global farm economy. The proposed merger will likely face an intense and lengthy regulatory process in the United States, Canada, Brazil, the European Union and elsewhere. Hugh Grant, Monsanto’s chief executive, said the companies will need to file in about 30 jurisdictions for the merger. If the deal closes, it will create a company commanding more than a quarter of the combined world market for seeds and pesticides in the fast-consolidating farm supplies industry.



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Maersk Line has become the latest carrier to unveil extensive new investments in its coolchain capacity. The line has ordered 14,800 new reefers in 2016 on top of the 30,000 it acquired in 2015, lowering the average age of its reefer fleet—the world’s largest, at 270,000 units—to 7.9 years, significantly below the industry average of 12 years. The announcement by Maersk follows an investment announced last month by Hapag-Lloyd in 5,750 refrigerated containers for its reefer fleet, illustrating that lines have pinpointed the potential of the cold chain market, not least in developing markets. Drewry recently predicted that, by 2019, reefer containership services would carry over 23 million tons more cargo than they did in 2014, equivalent to annual growth of around 4 percent from the 107 million tons of cargo carried by sea in reefer containers in 2015.



Mark Montague is industry rate analyst for DAT Solutions, which operates the DAT network of load boards and RateView rate-analysis tool. He has applied his expertise to logistics, rates, and routing for more than 30 years. He is based in Portland, Oregon. For information, visit

Demand for truckload capacity has been steady but unspectacular of late, and through mid-September, rates for spot van and refrigerated freight varied little from averages in June, July and August.



China conditionally lifted an import ban on some shipments of U.S. boneless beef and beef on the bone, and will also ease restrictions on Canadian beef, according to the Asian nation’s agriculture ministry and its premier. The lifting of the ban applies to imports of beef from cattle that

are under 30 months old. The move remains subject to completion of quarantine requirements, which will be issued later. China banned U.S. beef imports after the discovery of a case of bovine spongiform encephalopathy (BSE), or mad cow disease, in Washington state in late 2003.

Hanjin Shipping Co.’s bankruptcy tied up nearly 500,000 Hanjin containers in ports and truck yards, occupying trailers that can’t be used for other cargo—including holiday food and other goods. As more Hanjin ships arrive in ports and unload containers, congestion and missed schedules should keep spot truckload capacity in demand— and rates high well into November.

HUGE HARVESTS The unpredictable amount of harvested goods can have a big influence on spot market trends. In California, several years of drought has reduced yields. But other parts of the United Staes have been far more fortunate. This year’s apple crop escaped late frosts and is now projected to achieve record harvests. The Michigan Apple Committee is forecasting a harvest of 31 million bushels, 7 million bushels more than last year and the biggest ever for the state. Colorado, Utah and Idaho all appear to be on track for higher than normal onion and potato yields.






Starship Technologies, a company that’s among several contenders seeking to crack the last-mile challenge, recently tested a robot that delivered food to homes in San Francisco. Starship Technologies is one of many upstarts trying a more earthbound approach. Ahti Heinla, an engineer who helped start Skype, started Starship Technologies with Skype co-founder Janus Friis after entering a NASA contest to build robots to collect rock samples on Mars and the moon. Starship’s “friendly sidewalk robots” are designed to deliver parcels, groceries and other goods within a 2-mile radius, the company said, operating as a local on-demand service, rather than competing with FedEx and UPS. While they drive—or roll—autonomously using nine cameras, GPS, sophisticated software and Starships’s own maps, which are accurate to the nearest inch, they are monitored by humans in a remote location who can take over control if need be. Starship Technologies is talking to San Francisco, among many other cities, about passing laws to enable its brood to hit the streets. Washington this year became the first U.S. city to legalize “personal delivery devices” powered by electric motors on its sidewalks. That will enable Starship Technologies to do more extended tests of its R2-D2-like brood there later this year.




The American Transportation Research Institute (ATRI), the trucking industry’s notfor-profit research institute, unveiled its top industry issues report of the top 10 critical issues facing the North American trucking industry. The looming implementation date of the federal mandate on the use of electronic logging devices (ELDs) topped the list of trucking industry concerns, with more than 65 percent of respondents concerned about productivity impacts the industry may experience from full deployment of ELDs. Dropping one position from its top ranking the past three years, hours-of-service (HOS) stayed near the top of the list due to ongoing uncertainty of a final HOS rule.

UPS AND FEDEX ANNOUNCE RATE INCREASES Shipping giants UPS and FedEx both recently announced rate increases across the board that will go into effect late in 2016 and early in 2017. UPS announced that effective Dec. 26, the UPS U.S. ground, air and international services daily rate will increase by an average net 4.9 percent. Further, UPS Freight announced an average net 4.9 percent general rate increase effective Sept. 19. Meanwhile, FedEx announced FedEx Express, FedEx Ground and FedEx Freight will increase shipping rates effective Jan. 2, 2017.

FedEx Express will increase shipping rates by an average of 3.9 percent for U.S. domestic, U.S. export and U.S. import services. FedEx Ground and FedEx Home Delivery will increase shipping rates by an average of 4.9 percent. FedEx SmartPost rates will also change. FedEx Express and FedEx Ground U.S. domestic dimensional weight divisor will change from 166 to 139. Effective Feb. 6, 2017, FedEx Express and FedEx Ground fuel surcharges will be adjusted on a weekly basis.








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n practice, it is clear that a functioning cold chain is critical to the protection and delivery of fresh and frozen perishable foods. In parts of the world where the cold chain is established and run S H AW effectively, perishable food loss can be maintained as low as 2 percent. When applied properly and consistently, a fully functioning cold chain can successfully prevent and reduce food loss. But, we also know that breaks in the cold chain can occur due to a variety of issues, including: operBEASLEY ator error, insufficient precooling, poor loading practices, inadequate insulation, improperly functioning refrigeration equipment, or even something as simple as cargo or walk-in cooler doors being left open too long. Any of these breaks can cause damage to perishable foods by exposing them to conditions that FROM ABSENCE OF are too warm or cold, all leading to REFRIGERATION food that is lost or wasted. Even International Institute of Refrigeration relatively small differences in temperature can mean DEVELOPED COUNTRIES a big difference in the quality of perishables. Sometimes the detrimental effects are not OF TOTAL FOOD immediately obvious PRODUCTION and don’t manifest until the perishable items are already at home in your fridge. Perhaps the most DEVELOPING important place to focus COUNTRIES on improvements is in places where the cold chain doesn’t exist, or OF TOTAL FOOD is too small to properly PRODUCTION function from end-toend. According to the International Institute of Refrigeration, the lack of a functioning cold chain causes significant food



23% 14


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loss: up to almost 20 percent globally. In developed countries, food losses from the absence of refrigeration account for nearly 9 percent of total food production, and 23 percent on average in developing countries. The development and implementation of sophisticated data analytics—the Internet of Things—will help in the future by providing end-toend visibility that identifies ways to improve food safety and quality, and thus reduce waste and inefficiency, to close the gaps in the cold chain. This could be combining captured location, temperature and logistics data for the supplier-to-distribution leg—including the last mile—of the supply chain with information about location, temperature and equipment performance from trucks that deliver to the same routes every week. Using products and services that reveal how perishables are being handled as they move through the supply chain, we can capture and use information from supply chain performance data to reduce waste and inefficiency, which improves the bottom line. But process variation is the enemy, and active data management is the best way to improve it. Data-driven decisions yield better outcomes. Collecting, managing and analyzing data requires consistent monitoring using a variety of tools. It takes a team approach, where collaboration and transparency benefit shippers, carriers and receivers. Good supply chain intelligence provides a competitive advantage. Every day the cold chain produces a lot of useful information, just waiting to be captured and used. There are many useful areas to

measure but not all of them may be practical or even necessary to control the cold chain process. It’s important to carefully decide what data is needed to measure, and then capture that data in the most automated, accurate and reliable way possible. Verify that measurements are accurate and represent the part of the process to be controlled. These can include: • Product precooling • Trailer/container precooling • Trailer/container loading patterns • Refrigeration settings • In-transit ambient temperature • Handling at loading and unloading • Dock and storage conditions There are many ways to analyze data. The most useful techniques will help to identify systematic causes for variation or poor performance. A simple way to do this is to aggregate or summarize metrics in multiple ways and view the data in a graphical format. Spotting trends and patterns can justify process changes and ongoing monitoring will then reveal if those process changes actually led to improvement. A robust cold chain is the single best way to preserve perishable food, and by effectively harnessing the data it already provides, the potential to reduce food losses and extend food supplies is extraordinary. Jon Shaw is the director of Sustainability & Communications at Carrier Transicold & Refrigeration Systems, and Marc Beasley is vice president of Strategic Marketing and Business Development–Food at Sensitech Inc.

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Think A

GULF COAST PORTS The process to ready Gulf Ports for the Panama Canal expansion began years ago. Take a look at what these forwardthinking ports did to ready themselves for the opening of the Panama Canal’s new locks.



he Panama Canal expansion took nearly a decade and cost $5.4 billion. It opened in June, doubling the canal’s capacity with a third lane designed with larger locks, making it possible for post-Panamax ships, carrying up to 14,000 TEUs, to readily traverse the 102-year-old canal. All eyes are fixed on what’s going to happen now. The question on everyone’s mind is: What kind of cargo share increase might East Coast and Gulf Coast ports actually see now that the long-awaited Panama Canal locks have opened? If studies by Parsons Brinckerhoff and A.T. Kearney are to believed, the opening of the new Panama Canal locks will boost cargo traffic on both coasts. While these studies forecast that 50 percent of the increase will be destined for East Coast ports, Gulf Coast ports also stand to win an increased share of cargo, with


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forecasts predicting up to a 15 percent uptick in cargo, equal to 5 million TEUs over the next decade. These increases were anticipated and planned for, especially among the ports of Houston, Mobile and New Orleans; three major players that stand to be impacted by the Panama Canal improvements. Studies predict as container shipping lines adjust their schedules and services to include post-Panamax ships, Gulf ports’ cargo share will increase by 7 percent in 2017, then level off to an annual growth of 3-4 percent a year throughout 2028. Robert Landry, Port of New Orleans’ vice president-commercial, expects actual increases to be as projected. “There is consistency in saying we’re going to see increased containerized cargo throughout the expanded Panama Canal,” he says. “While a good portion of that cargo is going to be destined for popula-

tion centers on the East Coast, we anticipate that Gulf ports will see cargo increases in the range of 8-12 percent, then will level off to more normal growth rates.” He adds the predicted increases are in addition to the ones Gulf ports have already seen in recent years. Problems with shipping congestion and labor disputes in West Coast ports shifted imports bound

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k Ahead for the eastern part of the United States to East and Gulf Coast ports. Today, these ports receive approximately 34 percent of containerized imports from Asia, compared to 29 percent two years ago. “We knew all of this was coming; our customers told us it was coming, our carriers told us it was coming,” adds Judith Adams, vice president-marketing for the Alabama State Port Authority. “But it was the periodic disruptions on the West Coast that really opened up the East Coast, and then ultimately the Gulf Coast.”

Ready for Growth The Panama Canal’s new locks measure 1,200 feet by 160 feet, making it possible for them to accommodate ships carrying approximately 13,000 TEUs and drawing up to 50 feet of water. In contrast, current Panamax vessels have a 4,500 to 5,000 TEU capacity and a maximum draft of 39.5 feet. Managing these larger vessels required affected ports to make a few improvements. It is estimated that East and Gulf Coast ports spent approximately $150 billion on port improvements that included dredging for deeper harbors, expanding terminals, and improving rail and road connections

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to docks, according an article by the Midland-Reporter Telegram. Food Logistics takes a closer look at how three key Gulf Ports readied themselves for a surge in cargo traffic on neo-Panamax ships. Port of Houston: The Port of Houston, already one of the world’s busiest ports, projects a 15 percent boost in activity by 2020, much of which will be driven by the expanded Panama Canal. The port, which handles 68 percent of the total U.S. Gulf Coast container traffic, readied itself for the traffic boost with a billion-dollar upgrade plan. In 2016, the port authority committed $300 million for various capital projects including continuing development of Bayport Container Terminal, and the modernization of Barbours Cut Container Terminal, improvements at the general cargo and bulk terminals in Turning Basin and railroad improvements. These commitments continue efforts that began in 2015. In September 2015, crews finished deepening and widening the Barbours Cut channel. Crews will complete the Bayport channel dredging this year. The port authority also commissioned the first of four new Super Post-Panamax ship-to-shore (STS) cranes for Barbours Cut. These cranes can move a loaded container

twice as fast as their predecessors. The 30-story, Konecranes’ electric cranes stand taller than any other marine cranes in North America. Port of Mobile: The Alabama State Port Authority owns and operates the State of Alabama’s deep-water port facilities at the Port of Mobile. “We have been investing in post-Panamax infrastructure since 2005,” says Adams. “Our lower harbor already handled the larger ships calling the European trades. Our container terminal, our steel terminal and our coal terminal all have berths and cranes that can service those ships.” The port’s turning basin already allows vessels up to 1,600 feet in length to turn in the port. “And, we have a year-round 45-foot draft channel,” Adams says. In 2005, the port authority and APM Terminals constructed Phase I of the container terminal at Choctaw Point to provide customers with global trade access from Mobile. APM Terminals recently announced plans to add two Super Post-Panamax STS cranes and expand the container yard by 20 acres as part of a $40 million infrastructure investment. The new cranes can handle ships with up to 22 containers across, while the two existing cranes can handle ships

← The photo on the bottom of the opposite page shows the Port of New Orleans’ Napoleon Avenue Container Terminal, which has an 800,000 annual TEU capacity. The Port of New Orleans also made investments in IT technology, shown on the far left, to ready itself for the Panama Canal’s new locks, while the Henry Clay Ave. Riverfront Cold Storage Facility is ready for increased cold storage traffic.



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COVER STORY continued

… it was the periodic disruptions on the West Coast that really

opened up the East Coast and then ultimately the Gulf Coast.” Judith Adams, Alabama State Port Authority


↓Canaveral Cargo Terminal is Port

with up to 18 containers across. “This will bring APM Terminals up to about 800,000 TEUs in annual throughput capacity,” Adams adds. The port invested $50 million to construct an Intermodal Container Transfer Facility (ICTF) that could be serviced by five Class I railroads. “The intermodal rail ramp opens up our markets in the Midwest, which are natural markets for us in a lot of the breakbulk, poultry and steel commodities,” Adams says. “When we opened the ICTF, we saw growth in the Memphis to Decatur to Chicago to Canada market.” The ICTF expands some of the commodities that move via container, including frozen poultry. And, if a Wal-Mart super distribution center lands there (Mobile is a final contender for that), it will further impact intermodal operations. Port of New Orleans: The Port of New Orleans is considered the sixth-largest port in the U.S. based on cargo volume, and the 13th-largest in the U.S. based on cargo value. Container throughput in New Orleans rose 7.4 percent year-overyear in 2015 to a record 537,000 TEUs. This growth was partly driven by a surge in agricultural exports. Boosting imports was the return of Chiquita brands, which relocated to New Orleans from Gulfport, Mississippi. This move is expected to bring another 50,000 TEUs to New Orleans annually, from imports of bananas from Guatemala and exports of materials to Central America to package fresh fruits. With all this going on, improvements simply made sense, especially when the Panama Canal expansion was factored in. To prepare for additional cargo traffic, Landry says the port expanded its container terminal, adding an additional 84 acres and purchasing two additional container-handling gantry cranes. “We’re capable of handling up to 10,000 TEU ships,” he says. We moved more than 530,000 TEUs last fiscal year, and have the


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Canaveral’s new state-of-the-art facility handling multipurpose cargo and containers.


By Lara L. Sowinski

capacity to move 800,000 TEUs, so we have room to grow.” The port has opened a $25 million ICTF, funded by a $17 million TIGER grant and $8 million in port funds, next to the Napoleon Avenue Container Terminal. Canadian National operates twice daily stack trains from the ICTF. “We service all six Class I railroads, and in order to take advantage of that, we needed a more efficient intermodal yard. We are seeing our volumes increasing [since the ICTF opened] and we believe as the volume of imports picks up, we’ll see more of our activity move to rail,” Landry says. One change they’ve seen is in breakbulk and container transports. Landry says when the port built its new cold storage facility a few years ago, approximately 80 percent of the frozen poultry moving through the facility was breakbulk. “Now approximately 80 percent of the frozen poultry moves in containers,” he says. “But I just got a call yesterday from one of our customers who is moving goods in containers, and he is looking at shifting from containers back to breakbulk because container rates are starting to go up. That being said, I don’t think we’re going to stem the long-term tide of more product going into containers.”

In the past few years, Florida’s Port Canaveral has made a big push to diversify its portfolio by investing in cargo business. The port already ranks as the second largest cruise port in the world, says Alberto Cabrera, senior director, cargo business development. However, Port Canaveral saw additional opportunities for handling perishable fruits and vegetables from South America and distributing the cargoes throughout central and South Florida, he explains. StreamLines, part of the SeaTrade Group, recently started providing weekly containerized service to Port Canaveral with its Blue Stream Service, connecting the port with Europe, the French West Indies and Central America. The Blue Stream Service offers both reefer and dry containers and boasts a three-day transit time from Central America to Port Canaveral and the fastest transit time between Florida and Europe at 11 days. Pineapples and okra are among the imported food products, while sweet potatoes, corn and peanuts are some of the exports, says Cabrera. According to Jim Dubea, deputy executive director, government and strategic partnerships, the port is also expanding its cargo mix with exports of automobiles, and has invested in an auto processing facility to support that business. Additional capital improvements are in the works, adds Dubea, including repairs to the north side of the port and installation of crane rails. As for refrigerated capacity, there is some existing capacity due to the port’s longstanding business associated with exports of frozen juice exports, although port officials say discussions are underway to add more capacity due to the potential in handling temperature-controlled commodities. Meanwhile, the Titusville Logistics Center, Port Canaveral’s first multimodal inland facility, opened its first of several buildings in August. The logistics center is expected to eventually encompass 2.9 million square feet of industrial space with direct rail access to Florida East Coast Railway.

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We have added more than 400,000 sq. ft. of cold storage capacity, greater reefer capability at our terminals, and new reefer infrastructure. This is how we keep reefer moving. And it’s why you owe it to yourself to give Charleston another look.

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RESPONDS TO RISING PERISHABLE FOOD DEMAND Logistics providers tap a bevy of innovations to maintain cold chain integrity.



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he Food Safety Modernization Act (FSMA) does not specify what methods companies have to use in managing perishable food. But it has generated a wave of interest in cold food handling tools and technology. Retailers, manufacturers, distributors and transporters are all making use of a variety of methods to keep food temperatures consistent throughout the supply chain. The Lineage Logistics facility in Santa Maria, California, deploys hundreds of temperature sensors in its receiving, storage and shipping areas to provide constant visibility into the operations of its refrigerated systems and to help maintain quality control. From the data collected via the sensors, managers can make adjustments to the system to minimize temperature variability, protecting the integrity of product as well as saving energy. “Sensor data analytics and the whole Internet of Things (IoT) phenomena are leading us to new business use cases that were science fiction a few years ago,” says

Tim Smith, executive vice president of sales and business development.

New Tools Emerge High pressure processing (HPP), a post-packaging, non-thermal pasteurization method of killing microorganisms, uses elevated hydrostatic pressures of up to 87,000 psi to reduce overall microbiological contaminant flora and pathogens, such as Listeria, E. coli, Salmonella, lactic acid bacteria, yeast and mold. Not only does HPP help retain food quality—including nutritional value and natural freshness—it keeps food safer longer. “This is the perfect time for HPP technology as it helps to accommodate changing consumer preferences for fresh product on the perimeter of the grocery store,” explains Smith. “We didn’t want to get too far away from our core revenue streams, but we did want to diversify and be open to emerging technologies and evolving shopping behavior.”

Blast Freezing Americold, a global cold storage solutions company, offers blast freezing services that rapidly freeze products to maintain their integrity more thoroughly and extend their

↑ Lineage Logistics’ high pressure processing system uses elevated hydrostatic pressures of up to 87,000 psi to reduce overall microbiological contaminant flora and pathogens. Image courtesy of Lineage Logistics.

shelf life. It is a commonly used process on fresh meat, poultry and seafood as the quick-freeze process forms smaller ice crystals than traditional freezing methods. “These smaller crystals have less of an adverse effect on the texture of product,” says Daniel Cooke, director of marketing. “Traditional freezing, say in a home freezer, can create larger ice crystals in the product, and these larger ice crystals will rupture cell walls in food. When defrosted, the meat, poultry and seafood especially may have broken down fibers that feel mushy in your mouth.” To reduce temperature fluctuations around high traffic entry areas, Americold has installed rapid roller doors, and in some instances, “air curtains” instead of physical doors between cold rooms at its facilities. “The air curtain solution allows the entryway to remain open,” Cooke says. This enables more efficient transition between temperature-controlled zones.

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Extend trip length. Extend quality.

The XtendFRESH™ controlled atmosphere system helps your produce go farther and maintain its quality by slowing down the ripening process. Perishables like bananas, mangos and avocados stay fresher, even on longer voyages – allowing you to explore new markets around the globe. And only the XtendFRESH system has an integrated ethylene removal system, so there are no additional costs or parts to dispose of. It’s better for your product and your business. Extend your world, and ask your shipper for the name that says it all – XtendFRESH.

©2016 Carrier Corporation. A part of UTC Climate, Controls & Security, a business unit of United Technologies Corporation. Stock symbol UTX.

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Defrost on Demand

↑ Sensaphone 1800 Image courtesy of Sensaphone

Quality Refrigerated Services is using demand defrost from Logix, a provider of refrigerated energy management. Mike Amundson, executive vice president at Quality Refrigerated Services, says the original technology didn’t work well. “It’s supposed to be much more reliable and accurate,” Amundson says. “When it was first brought out, the sensors weren’t very reliable or durable. We’ve been told the new system with new technology will eliminate over-defrosting,” The goal is to defrost only when you absolutely need to, for the minimum amount of time. The company has deployed it in one of its facilities, but plans to install it at all three in the future.

Temperature Control Improves Henry’s Foods, a foodservice and retail food distributor, has installed a temperature monitoring controller from St. Cloud Refrigeration on its compressor racks to ensure

consistent temperature, says Travis Koep, warehouse manager. “They’re also able to make adjustments for exterior extremes, whether it be hot or cold out. They’re able to tell me if I’ve got a Freon leak,” Koep says. “They are also able to talk to it to make adjustments. The provider can fix issues online as opposed to having to send a tech to the facility.”

Natural CO2 Cold Chain Monitoring Sensaphone has upgraded its monitoring system for freezers and refrigerators with a new keypad display and enhanced audio output. The system provides 24/7 remote monitoring of environmental conditions and unattended commercial freezers and refrigerators. The Sensaphone 1800 Monitoring System detects problems such as temperature changes (from -109 degrees Fahrenheit (F) to 168 degrees F), humidity fluctuations, water leaks, power failure, carbon monoxide and dioxide levels, and smoke. When the system identifies a potential issue, it can immediately alert up to eight people with custom phone calls, allowing personnel to quickly address the situation.


EXPANDING GLOBAL PERISHABLE TRADE With global trade increasing and the demand for fresh food on the rise, logistics providers such as DHL Global Forwarding play a critical role in the global economy. DHL Global Forwarding has a strong foothold in the perishables market across Latin America and maintains a dedicated team of specialists to manage ocean and air freight for perishable goods. The team manages perishables, including fish and fruit, from Latin America. It procures space and rates for the freight to a range of destinations, receives the cargo, and manages the customs clearances and transportation, ensuring that the products will remain within their required temperature ranges. “The amount of perishables is increasing,” says Roland Zach, head of global charters at DHL Global Forwarding and vice president of StarBroker, an in-house charter air service. The global expansion is due to increased demand for fresh products all year long, and thanks to a lifting of restrictions in various countries. Air transport is mainly for fresh versus frozen perishable food. The air transport supplements the ocean transport, which handles the larger volumes. The fruit the company handles from Argentina and Chile is moved on commercial air carriers supplemented by DHL’s exclusive, dedicated charter flights. These flights operate for a period of five weeks, each from Argentina and Chile during the last quarter of the year every October and November, subject to fruit readiness. Exporters use ocean freight as soon as possible, but the ocean freight takes more time to reach its destination. Most perishable product flies on passenger flights. Freight gets delivered on a reefer truck to the airport, gets off-loaded into a cooler, then placed on aircraft pallets inside the cooler. The pallets get loaded onto a dolly and taken to the aircraft. When the cargo reaches its destination, it goes back into a cooler.



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Telematics Takes Hold Telematics continues to play a big role in monitoring food temperature in transit. Carrier Transicold recently announced it will offer a customized telematics solution that will deliver advanced capabilities for its transport refrigeration units (TRUs). The new telematics solution will help fleets manage refrigerated assets by enabling remote refrigeration unit monitoring, control and diagnostics, data management and other value-added capabilities. Carrier Transicold tapped ORBCOMM Inc., a provider of machine-to-machine and IoT solutions, to develop the system according to Carrier Transicold’s specific design and qualification requirements. “We launched this initiative in response to customer demand for an original equipment manufacturer-provided system for TRUs,” says David Appel, president, Carrier Transicold & Refrigeration Systems. “The system can be factory-installed and will be supported by our authorized dealer network. ORBCOMM’s experience with remote monitoring and control solutions for mobile assets complements our expertise in transport refrigeration systems.” Tiger Cool Express uses the iBright telematics solution from International Telematics. “We have a fairly sophisticated suite of telematics,” says Tom Finkbiner, CEO at Tiger Cool Express. “You can get a printout of what the internal temperature was during the whole trip. We measure return air. We measure the air temperature out of the reefer. We measure temperature on the box. We also have a pulping thermometer in each container.”

Insulated Containers Foodservice operators, as well as ice cream and frozen novelty producers and distributors, rely on insulated containers to maintain frozen temperatures on route without reliance on temperature control transport, says Marianne Hoonakker-Kelly, global market manager at Sonoco ThermoSafe.

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Now Serving: More Profitable Solutions for Food and Beverage OHL IS NOW GEODIS

Fresher logistics solutions for the Food and Beverage industry. That’s what we deliver as GEODIS. We get your products where they need to be on time and in the most efficient ways possible. Learn more about the innovative ways we can serve you at

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Sonoco ThermoSafe’s load models in combination with frozen gel bottles or dry ice maintain product quality by holding product less than 25 degrees F. Ice cream specifically is able to be kept between -5 to -20 degrees F, which is critical to preserve product quality. Even with multiple door openings, ThermoSafe test results demonstrate frozen temperature protection up to 48 hours.

Watch the Door Insulated doors are allowing companies to maintain temperatures with less energy. Golden State Foods (GSF), a food distributor to quick-serve restaurants, has deployed Rytec Turbo-Seal insulated doors at its new 152,670-square-foot regional headquarters and logistics center in McCook, Illinois, to ensure that every doorway is ready to handle its high volume, 24/7 traffic. The doors are accessed in the fresh food cooler via three Rytec Turbo-Seal self-repairing doors. “If the door is down, or won’t come down, that could be detrimental to our operation,” says Jamie Marines, GSF warehouse manager. “We cannot afford to lose an opening.” The doors’ high speed and the tight, full perimeter tight seal minimize air infiltration, while the Turbo-Seal insulated door’s thick panel reduces heat transmission. This combination helps the facility save 40 percent of energy and reduce operating time on the → Carrier Transicold’s new telematics solution will help fleets manage their refrigerated assets by enabling remote refrigeration unit monitoring, control and diagnostics, data management and other value-added capabilities. Image courtesy of Carrier Transicold.



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refrigeration system for longer system life as well. Marines points out that if one door goes down, they lose 30 percent of their shipping capacity. With tight schedules and so many McDonald’s restaurants depending on them, this downtime can’t be allowed. “That’s why we like the doors’ durability,” says Marines. “We are hard on things.” Henry’s Foods has installed RiteHite doors which act as a barrier and save energy. “They’re a clean breakaway,” Koep says. “If somebody runs into them, whether it be a forklift, tugger, or if somebody needs to get through the door and if for some reason it doesn’t open, they can push the door open and it self-feeds it back into the track,” he says. The company has installed five of these doors in its warehouse.

Look to the Ceiling A growing number of decision-makers are implementing high-volume, low-speed (HVLS) ceiling fans into their facilities to circulate air in work environments and provide stable

↑ The HR27 from Sonoco ThermoSafe provides temperature assurance when units are transported on a non-temperature controlled truck. Image courtesy of Sonoco ThermoSafe.

temperatures from ceiling to floor. HVLS ceiling fans mitigate the rising heat effect by moving the warm air near the ceiling back down toward the floor where it is needed, according to Andy Olson, Rite-Hite product manager for fans. The air reaches the floor below the fan where it then moves horizontally a few feet above the floor. The air eventually rises to the ceiling where it is cycled downward again. This mixing effect, known as “destratification,” creates a more uniform air temperature. With the use of an HVLS fan, there is less of a burden on the heating system. Blulog, a cold chain startup, has launched near field communication (NFC) temperature data loggers that enable full temperature traceability during the transport of temperature-sensitive products. Upon arrival of the package, a diode (that can be personalized) indicates immediately if the cold chain has been breached. The user, equipped with an Android smartphone with the NFC technology, has direct access to all historical shipments with associated temperature, GPS and logistics data. It is now possible to automatically upload information to the cloud, allowing the sender to immediately receive a proof of delivery and good temperature maintenance. The recipient can also receive the PDF report directly on his phone.

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Partner with SmartWay


SmartWay Transport Partnership is the smarter way to ship goods. SmartWay can help your company put its best foot forward to reduce its carbon footprint, improve its bottom line, and better manage its global freight supply chain. This innovative public-private collaboration helps your company increase operational efficiency, incorporate sustainability, and gain a competitive edge. It’s no wonder over 3,000 companies have joined SmartWay. Since 2004, they have eliminated over 72.8 million metric tons of CO2 and saved over $24.9 billion in fuel costs. To learn more about becoming a SmartWay Shipper Partner, drive over to

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WATCH YOUR BACK! The comfortable truth about warehouse ergonomics ...

Andy Brousseau is senior manager of global safety, security and environment for APL Logistics, an international supply chain specialist serving companies across the globe. The company provides a comprehensive range of services via a global network covering all major markets and a multinational workforce of approximately 7,000 people. APL Logistics is a member of the Kintetsu World Express Group.



ention the term “DC accident” and the first thing that comes to mind will probably be a forklift or truck. However, add the word “common,” and it’s a different story. “Statistically speaking warehouse employees are far more likely to sustain back, muscle, repetitive motion or other ergonomic injuries than they are to experience other kinds of work-related injuries,” says Andy Brousseau, senior manager of global safety, security and environment at APL Logistics. Food Logistics recently sat down with Brousseau, whose company has had an ergonomic safety program in place since 2005, to discuss why businesses need to better familiarize employees with this potentially uncomfortable subject. Let’s start by putting the topic of ergonomics into context for warehousing professionals. It’s easy to assume that ergonomics only applies to carpal tunnel and sedentary desk jobs, because that’s usually what people hear the most about. But in reality, ergonomics is the science of how people physically interact with the various elements of any job’s settings and demands—whether that job is in an office, behind a wheel or on a warehouse floor. In what ways does ergonomics pertain to DC workers? The typical distribution center (DC) job is ripe with opportunities for making a sudden or wrong move, or putting too much stress on a muscle or joint, all of which can lead to ergonomic injury. Highly routine activities such as removing shrinkwrap from pallets and unloading trucks with non-palletized cargo


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create plenty of chances for people to strain their backs, necks or shoulders. So can improperly lifting heavy boxes. All of these things make an ergonomic safety emphasis in DCs not just important, but essential. Even for warehouses that haven’t had high rates of ergonomic injury? No matter how free of ergonomic injuries a company’s warehouse has been in the past, it can never be assumed that this puts it at less risk for future ergonomic injuries. That’s akin to thinking that just because you’ve successfully sped through several red lights without getting into a wreck, you can keep doing it and remain accident-free. Why is an occasional strained shoulder or back that big of a worry? Some ergonomic injuries might seem to be minor. However, they still can be highly uncomfortable. Plus, just because an ergonomic injury appears to be a “no harm, no foul” incident when it happens, a lot of evidence suggests that it could turn into a more serious injury later. The average ergonomic claim can easily total thousands of dollars. And if an ergonomic injury winds up being especially serious—requiring therapy, surgery or significant time off for recovery—it could ultimately cost many times that amount. Has that been the experience for your company? Definitely. When we first launched our more proactive safety initiative in 1994, our primary focus was educating our employees about the dangers of life-and-

limb-threatening behavior such as improper industrial equipment operation, because these injuries were among our most common and expensive—not to mention the most potentially dangerous. But as our program and employees’ safety consciousness matured, those injuries became far less frequent. And by the early 2000s, unsafe ergonomic behaviors had become the No. 1 source of both our on-the-job injuries and injury-related expenses. In fact, before we launched our ergonomic awareness program, they were responsible for 40 percent of our Occupational Safety and Health Administration (OSHA) recordable injuries and 56 percent of our related costs. So when our workers’ compensation insurer offered to help us develop some new safety training courses on the risk factor of our choice, we chose ergonomics. What are some minor changes in work processes and workstations that can make a big difference? Ergonomics isn’t a one-size-fits-all science. Often, you have to consider the age, height, weight and health history of people when determining what’s ergonomically right or risky for them. For example, a work table height that’s ergonomically ideal for a 5-foot-2-inch woman performing sub-assembly isn’t going to be an equally good fit for a man who’s considerably taller. That said, there are certain kinds of behaviors and conditions that are ergonomically risky no matter who performs them—and these are the behaviors it’s especially easy for companies to correct. These include awkward and static postures, unsafe lifting movements and highly repetitive motions.

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What kinds of things has your company done to address these behaviors? Several years ago, employees at one of our facilities were having to lift their arms over their heads to unload trucks with non-palletized cargo. A couple of step stools that put these employees more level with the cargo helped substantially reduce their risk for neck, back and shoulder strains. During that same time period, we visited and trained the staff at another one of our facilities where there was a lot of piecework being done. By educating staff members about how important it was to take breaks from this work in order to give their hands and wrists a rest, we were able to significantly reduce their chances of getting repetitive motion injuries. And just in case they were tempted to ignore our messaging, we also made these rests mandatory. And at another facility, where the employees do a lot of order picking, we introduced the concept of job rotation and changing positions to different levels of the pick line. This played a key role in reducing the ergonomic strain for these workers. How did these changes affect productivity? Companies are often concerned that placing too much attention on ergonomic issues will slow things down. But the truth is we didn’t see a loss of productivity when we began emphasizing ergonomic safety. We just saw a significant reduction in our related injuries and claims costs. At the end of the day, the after-effects of a sudden motion, such as a quick twist or bend, can negatively affect people’s work performance for far longer than the time they supposedly saved by not moving more carefully. How can you convince corporate leadership to move an ergonomic initiative forward? When people say their company can’t afford to invest in a more

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concerted ergonomic safety effort, I always say, they can’t afford not to. If they really examine the number, type and cost of claims associated with ergonomic injuries, they’ll likely discover that it makes excellent business sense. Plus, it’s amazing how affordable many ergonomic safety initiatives can be. While your company may not be able to build and equip an

ergonomically ideal facility from the ground up, it can dramatically reduce ergonomic risk by making the changes I’ve outlined. Having an ergonomic safety initiative is simply the right thing to do if you truly care about your workforce. After all, who wants their employees to be able to say their jobs are a pain in the neck and really mean it?

...because every degree matters®



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Photo Credit: Kenworth Sales Co. and Halbersleben Trucking

↓ Approximately one-third of all foodservice distributors choose full-service leases to ensure trucks operate at peak levels, are spec’d properly and serviced regularly.


The decision to own or lease rests on the operator’s specific needs; total cost of ownership is always critical.


he decision to buy or lease vehicles is one of the most importance choices a fleet owner makes, given the amount of capital involved. The type of operation, vehicle configurations, organizational or managerial preferences, routes, work seasonality and financial considerations all factor into the decision. Vehicle ownership often makes sense for companies relying on ownership as part of an overall equipment acquisition strategy. Carriers with their own repair shops often choose to purchase their equipment so they can maintain it themselves and keep it longer. Costs include maintenance, staffing, repairs and replacement expenses to keep vehicles running. Meanwhile, leasing allows companies to obtain equipment without incurring the costs and credit constraints of ownership. An operating lease allows the company to expense the cost of the vehicle monthly rather than carry the liability on their balance sheets. Many leasing companies use a “lease versus own” analysis that


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determines the best financial decision for a customer. “Most of our customers have a mixed bag where they lease some equipment … and own some equipment,” says Jim Lager, senior vice president of sales at Penske Truck Leasing. Many growers, processors and food manufacturers prefer to focus on producing high quality, safe, healthy foods for their customers as opposed to investing in maintenance shops, automotive parts and technicians. At the same time, these companies want to take responsibility for delivering their product to the customer to ensure on-time delivery. Such companies believe it is important to operate their own fleet without having a repair garage, parts inventory, the technicians and 24/7 roadside assistance. Santa Monica Seafood leases medium-duty Peterbilt Model 325s and Kenworth T270s with 16-foot bodies to handle loads with six pallets, along with Peterbilt 337s with 18-foot bodies which can handle up to eight pallets. Vince Cigliano, director of special projects, says the decision to lease was based on fleet

reliability and convenience. “We could purchase our own equipment, but we’re not in the trucking business, we’re in the seafood business,” he says.

Leasing Basics Full-service leases allow for upgrading and a shorter term lease. Leasing equipment and cycling the equipment out every three to five years provides fleet operators access to newer, more reliable equipment to try to mitigate late deliveries and breakdowns. With full-service leases, fleets can take advantage of 24/7 breakdown service, complete preventative maintenance programs, and substitute vehicles for trucks that may break down on the road. Approximately a third of foodservice distributors choose full-service leasing, says Todd Berger, director of national accounts at Paccar Leasing, the leasing arm of Paccar. “Full-service leasing provides private fleet operators the assurance that their trucks are not only operating at peak levels, but spec’d properly and serviced at proper

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Intelligent Automation Makes the Difference Automation solutions from SICK help you meet increasing demands for food and beverage supply chain improvements. Our broad portfolio of sensors, automatic identification systems and safety solutions are flexible, scalable and help make your operations more intelligent. Implementing automation solutions from SICK can reduce supply chain costs, improve transparency, and enhance food and beverage distribution processes. You’ll find SICK transforming logistics operations in all supply chains...from retail, to parcel, and food and beverage - for 70 years and counting. SICK is a global solutions provider located in your corner of the world. From cold storage, sortation, order fulfillment, packaging and palletizing, you’ll improve food distribution through our flexible and cost-effective automation solutions. We think that’s intelligent.

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↓ Leasing allows truck companies to take full advantage of new vehicle technologies.


intervals throughout the term of the agreement,” says Berger. Increasingly, companies are looking for flexibility in how they manage and operate their fleets, says Kirk Morton, director of financial consulting for Ryder System Inc. “They might not want a fullservice lease package,” he explains. “They may want a flexible option that enables them to experience some of the key benefits of leasing.” A customer might have their own maintenance expertise but want Ryder’s preventive maintenance and road service expertise. Or, they might prefer a pay-as-you-go option like on-demand maintenance. Fleet operators also find they can partner with leasing companies to the mutual advantage of both parties. For example, leasing companies can identify high mileage trucks and shorten the term of the lease so the lessor can still get their residual out of the truck, then replace it within the fleet with a newer truck for another three to five years.

The Technology Factor Mike Spence, senior vice president of fleet services at Fleet Ad-


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vantage, a lease finance company, says fleets can shorten traditional six- to 10-year leases to four- to six-year leases. This allows customers to take advantage of new technology faster. Fuel savings technology is just one example. Equipment manufacturers have made great improvements in fuel-saving components. “Since 2010, there has been a 2.5 to 3 percent improvement in fuel economy as you move from model year to model year,” Spence says. “[Advances in] electronics are able to manage engine operation in fuel delivery much more specifically than a mechanically built fuel system can ever do,” he says. It not only improves the physical operation of the vehicle, but it allows the driver to be further removed from the correct operating principles of the truck. “While the driver is still important, the engine takes on the speed limiting, the idle time, the cruise time,” he says. “That can all be done much more efficiently through the use of electronics.”

Cost of Ownership Spence notes that fleet operators need to pay attention to total cost of ownership, not just the financial costs of owning versus leasing.

Depreciating a truck over eight years, the monthly finance cost for a purchased vehicle will be less than that of a leased vehicle, Spence notes. But the total cost of ownership with the 8-year-old truck includes fuel and maintenance costs. Shorter leases benefit fleets because newer vehicles have less maintenance costs. The first-year savings on maintenance for a new truck versus a 6-year-old truck can be $7,600 per year, he says. A new truck will save $2,500 per year in fuel at $2.20 per gallon over a 6-year-old vehicle due to the difference in fuel mileage, Spence says. The higher cost of the new vehicle amounts to $5,200, translating into a $1,200 annual increase in payments. “You more than double the benefit by moving to a newer vehicle even with a higher payment,” he says.

Regulatory Issues Leasing companies that cater to the food industry, such as Penske Truck Leasing, can provide customers assistance in understanding food safety rules, notes Lager. One Penske customer purchased trailers with reefers that were not compliant with California food safety regulations. “It was compliant today, but it was not going to be compliant a few years down the road,” Lager says. “We kept the trailers and replaced the reefers, rolling up those added costs into the new lease.” Penske Truck Leasing fields a number of customer questions related to documentation. This includes areas like door sensors and how the information is relayed electronically to the unit. Customers want to know things like how the reefer unit sends data to the onboard computer. “A lot of our customers have very specific key performance indicators (KPIs) they measure themselves to or their customers hold them to,” Lager says. “We customize reports to help them measure success against their own KPIs.”

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TRANSFORMS TMS IoT improves carrier connectivity, enhances asset visibility and brings more business intelligence.

Telogis Fleet is a Web-based fleet management solution built on a scalable platform designed to integrate with your entire business, from logistics and maintenance to payroll and dispatch. ⇨


dvances in technology, analytics, computing power and information access have resulted in a paradigm the Material Handling Institute (MHI) calls the “always on supply chain.” MHI defines the “always on” supply chain” as “an integrated set of supply networks characterized by a continuous, high-velocity flow of information and analytics, creating predictive, actionable decisions that better serve the customer.” One area where software providers are introducing these capabilities is in transportation management. In transportation management, Internet of Things (IoT) technology has improved product traceability and inventory control. It has also enabled dynamic routing and the monitoring of product quality data. Kewill Inc. has extended its transportation management system (TMS) functionality by including connectivity to more than 16,000 carriers. Connectivity provides shippers real-time access to information on multiple carriers. It allows the shipper to send RFPs and tender offers to multiple carriers automatically. The carrier integration program will also support carrier connectivity via a value-added network (VAN) which acts as a regional post office, says Patrick Maley, chief marketing

⇧ Internet of Things (IoT) technology has enabled dynamic routing and improved carrier connectivity in transportation management.

officer of Kewill. The VAN receives the transactions, examines the information and routes the transaction to the recipient. “The integration significantly cuts down on manual data entry costs— and reduces the opportunity for error,” Maley says. Being part of the carrier network provides visibility of items such as spend, on-time performance and other metrics. Carriers can gain access to new customers and market opportunities. They can also post capacity availability that helps shippers select options they might not have otherwise considered.

Carrier Integration Poses Challenges ODW Logistics sought a way to integrate with its carriers directly via the Web when tendering loads, says Bill Grannis, director of information technology for the non-asset-based 3PL. The legacy electronic data interchange (EDI) load tendering the company was using was slow. ODW Logistics approached its TMS provider, 3Gtms, with this issue. 3Gtms offered a cloud-based EDI service as part of its TMS. 3Gtms developed a single Web interface for accessing all carriers that a 3PL wants to tender to. “They’re a one-stop shop,” Grannis says of 3Gtms’ solution. “They’ve basically become a clearinghouse for load tendering.” “EDI is just a slower process; we’re going right to the carrier’s API (application programming interface),” explains Mitch Weseley, CEO of 3Gtms. EDI load tendering documents typically go into an EDI

Photo Credit: Telogis



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Loadsmart, a logistics technology company specializing in full truckload shipping, recently announced a cloud-based, fully automated shipment from booking to delivery platform. No human contact occurs between Loadsmart, the shipper, the carrier or the driver. Via the Loadsmart platform, the shipper requests a quote, and the system’s algorithm generates a price instantly which the customer books in just a few seconds. The platform automatically identifies the best carrier to move the load and sends an electronic request to the carrier’s dispatcher. With one click, the dispatcher accepts the job and receives an online rate confirmation. The dispatcher then invites the driver to download the Loadsmart app, which provides the driver with all the shipment details as well as GPS tracking for the dispatcher and customer. Upon delivery, the driver submits the proof of delivery via the Loadsmart mobile app. Loadsmart requires no human contact with the shipper, carrier or driver. Historically, every one of these steps required human contact by the freight broker via email or phone: requesting quotes and carrier cost, sourcing the right truck and price negotiation, status updates and document submissions.

In transportation management, Internet of Things (IoT) technology has improved

envelope for a carrier to access. The carrier then has to translate the document in order to accept the load. “The trouble is the carriers may not pick up and respond to the envelope for a lengthy period of time,” he says. “Using the HTTP protocol, we have the ability to seamlessly talk directly to a carrier’s published API, essentially updating their system,” Grannis notes. “The TMS has basically encapsulated the process giving me a true B2B mechanism with any capable carrier. This means the carrier has my tender in their system in real time, allowing them to react much faster.”

product traceability and inventory Automated Data Holds Key control. It has also Turning Big Data into real value enabled dynamic with analytics and the ability to use routing and the that intelligence to gain a desired monitoring of product business outcome boils down to quality data. automation, says Kelly Frey, vice president of product marketing at Telogis, a mobile enterprise management software provider. Automating the collection of the data and how it is presented to the back office and to the drivers is paramount. “Getting the right data into the



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hands of the right person at the right moment to make the right decision is the ultimate goal of Big Data,” Frey says. “Sometimes that means we want to put the data into an executive dashboard for easy consumption in real time, or perhaps into a scheduled report that automatically goes to divisional managers every night or week, or perhaps gathered and presented on an iPad or an iPhone so the driver can see how they are doing versus the company KPIs.” JTS (Johanson Transportation Service), a 3PL solutions provider, launched a cloud-based TMS called FreightOptixx as a value-added service on a per transaction fee schedule, enabling select customers to integrate with their own enterprise systems without having to invest in a TMS of their own. For users shipping via full truckload, less-than-truckload, rail intermodal and international freight, FreightOptixx allows users to easily track their shipments, request instant spot rate quotes from multiple carriers displayed on one screen for comparison, create and change freight orders, create and view all shipping documents, consolidate their shipments using

the lowest cost optimizer tool, send pickup instructions to the carrier electronically, view invoices and accounts payable status and run reports for on-time delivery, freight cost reconciliation, exceptions, freight class and more. “We’re transforming from a world where only a select handful of people have sophisticated intelligent technology. Now everybody has it,” says Abtin Hamidi, co-founder and executive vice president of Cargo Chief, a freight broker that provides a cloud-based platform for matching shippers and carriers. Hamidi thinks shippers will no longer focus on long-term contracts since capacity is becoming accessible more quickly, thanks to the cloud. Long-term contracts provide stable pricing, but it is expensive. “Everyone is moving more to a transactional [spot market] environment,” he says. Freightflow, a TMS system that uses a cloud-based software, has integrated with’s load board, allowing clients to send their loads from Freightflow to with the click of a mouse and see results from interested carriers in a matter of minutes.

E-Commerce Brings New Demands Because of the growth of e-commerce, MercuryGate International Inc. is integrating its parcel delivery solution with more retailers. “More and more of our customers are asking for integration of parcel,” says Vikram Balsasubramanian, MercuryGate’s senior vice president of strategic product marketing. “The usage of parcel has really grown extensively over the last five or six years,” he says. “We are expanding our integration with local parcel carriers.” One advantage of MercuryGate’s solution is that parcel delivery is built into the TMS platform.

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TECHNOLOGY UPLIFTS CONTAINER TRACKING ← Traxens remote monitoring technology was implemented on some containers on board the Bougainville, CMA CGM’s flagship vessel.

Improving monitoring capabilities prompt ocean carriers to invest in intelligent containers.



he expansion of satellite and cellular networks has unleashed a tidal wave of opportunities for tracking containers in transport. As a result, technology investments have increased from 2014 to 2016, with IoT (Internet of Things) sensor and monitoring technology posting the biggest increase at 19 percent, followed by data loggers at 14 percent and GPS and satellite technology at 5 percent, according to a survey by AT&T and eft Supply Chain & Logistics Business Intelligence. Ocean carriers, in particular, have made significant investments in recent years, with some of the largest carriers investing in “intelligent” containers. “Intelligent” containers can


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provide real-time visibility of inventory, including critical areas such as temperature, humidity, vibration and air quality. For a small investment in hardware and software, containers can provide a lot of supply chain data that not only delivers timely cargo updates, but can also reduce costly manual inspections.

Intelligent Containers Evolve Early intelligent containers provided asset visibility and were largely designed to prevent theft and record the opening of containers, notes Mark Bunger, vice president at Lux Research Inc. The ability to monitor temperature, humidity and vibration has existed for about a decade, Bunger says, but it has been too expensive to deploy.

This has changed as satellite connectivity has become ubiquitous and electronics and software costs have fallen. Some technology providers have made the systems commercially available.

Ocean Containers Evolve Some technology companies, such as France-based Traxens, are focusing on monitoring ocean containers. “The containers are a lot more vulnerable [to theft and vandalism] in ports than they are in other places,” Bunger says. “We see the adoption starting to come up in terms of vessel-based tracking,” says Michael Dempsey, vice president of container and port solutions for the enterprise solutions group at ORBCOMM, a

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Product temperature and location visibility—in real time. For perishable products, the sooner you know about a potential delivery problem or temperature excursion, the better. With Sensitech’s Inbound Real-Time System, you see the what, where, when, and why of your entire global cold chain in time to make critical decisions. • Know where and when things go wrong, so you can take proactive steps—like re-routing a delayed shipment or filing a claim. • Get transparent, real-time visibility of carrier performance, so you know whether you’re getting what you commissioned. • Simplify cold chain monitoring with a comprehensive solution that includes data collection, analysis, and expert support. Sensitech helps you protect product freshness every step of the way. @sensitech © 2016. Sensitech Inc. All rights reserved.

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↓ The Maersk Line remote container management system uses satellite signals for monitoring vessels at sea and cellular signals for tracking over land. Image courtesy of Maersk Line.



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machine-to-machine (M2M) technology provider that has offered vessel tracking since 2008. In addition to regulatory compliance, shippers want the data to enable “first expired, first out” product management, Dempsey notes. The ORBCOMM hardware consists of two pieces, the telemetry device and the antenna. The telemetry device goes inside the controller cabinet and the antenna sits on the outside of the cabinet to achieve a good view of the sky for GPS and for good global GSM/cellular coverage. Customers can decide how many containers they want to track. In most cases, shippers track all their containers. Some customers use the system on high-value loads only. Reefer machinery tracking includes compressor temperatures and pressures, vent positions, currents and voltages to predict or alert to potential problems or service needs.

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A shipper might request GPS reefer tracking. The shipper’s carrier can then add the sensor and dispatch the reefer for loading. One ORBCOMM carrier user offers customers a login that allows both the carrier and the customer to track the reefers in real time and get alarms if any occur.

Maersk Steps Forward

have invested in a cloud-based container monitoring system from Traxens that will include 4.5 million containers, representing nearly a quarter of the world’s ocean vessel containers. The company will retrofit existing containers with devices containing GPS and sensors that will relay data via cellular signals and their own proprietary mesh network.

Once the smart containers are in place, customers will access data through smartphones, Web browsers, ERP and transportation management systems (TMS). The data will include GPS coordinates, temperature, vibration, shocks, door openings, movement, internal temperature, humidity and air pressure.

In 2015, Maersk Line finished the rollout of sensors on all 270,000 of its reefer containers. Maersk Line began the project in 2010. The team spent two years developing the hardware and software, says Catja Rasmussen, Maersk Line head of remote container management (RCM). The Maersk reefers went “live” in May 2015. The company uses Ericsson satellite signals for monitoring vessels at sea, and AT&T cellular signals and a GSM (global system for monitoring communication), for tracking containers over land. A 3G SIM card allows remote monitoring of atmospheric conditions and power status. Maersk Line initially focused on reducing its operating costs from the new technology that, through near-real-time data visibility, contributes to optimized fleet operations, Rasmussen says. The new technology also offers the ability to remotely control a container’s temperature. In a 15-week test period, the company intervened in 180 instances in which they adjusted temperatures and most likely prevented product damage. Another important feature is the ability to calculate the expected state of the empty export reefers. Empty export reefers require a service check before being returned to a customer. Before adding remote monitoring, this service check could take as long as six hours, as the reefers in some cases would need to cool down before they could be checked.

Get Into the Cloud Mediterranean Shipping Company (MSC) and the CMA CGM Group

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Statement of Ownership, Management, and Circulation

ADVERTISER..................................................................... PAGE

CAMS Software Corporation..............................................33 Carrier Transicold......................................................................21 Ford Motor Company............................................................2, 3 GEODIS/OHL..............................................................................23 Great Dane Trailers..................................................................44 H&M Bay Inc................................................................................10 Hawker Powersource..............................................................13 Honeywell International........................................................15 Instructional Technologies Inc.............................................38 Kinexo..............................................................................................41 LeanLogistics Inc........................................................................39 MacroPoint LLC..................................................................Insert Material Handling Industry/ProMat...................................9 MercuryGate International Inc...........................................43 Newell Rubbermaid..................................................................31 Ryder System Inc..........................................................................7 SATO America LLC....................................................................35 Sensitech Inc................................................................................37 SICK.................................................................................................29 SmartWay Transport Partnership......................................25 Sonoco ThermoSafe.................................................................27 South Carolina Ports Authority..........................................19 Southern Perfection Fabrication.......................................11 Superior Tire & Rubber Corp..................................................8 Uline.................................................................................................12 Yale Materials Handling Corporation.................................5

Global Supply Solutions for the Food and Beverage Industry

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Average No. Copies

No. Copies of Single

Each Issue During

Issue Published

Preceding 12 Months

Nearest to Filing Date

25372 19802

253720 19223





(1) PS Form 3541. (Include direct written request from recipient, telemarketing and b. Legitimate

Internet requests from recipient, paid subscriptions including nominal rate subscriptions,

Paid and/or Requested

employer requests, advertiser's proof copies, and exchange copies.)

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Form 3451. (Include direct written request from recipient, telemarketing and internet

(By Mail

requests from recipient, paid subscriptions including nominal rate subscriptions,

and Outside the Mail)

employer requests, advertiser's proof copies, and exchange copies.)

(3) Sales Through Dealers & Carriers, Street Vendors, Counter Sales, and Other Paid or Requested distribution Outside USPS.











(4) Requested Copies Distributed by Other Mail Classes Through the USPS. (e.g. first-Class Mail) c. Total Paid and/or Requested Circulation [Sum of 15b(1), (2), (3), (4)] (1) Outside County Nonrequested Copies stated on PS form 3541. (include sample copies, requests over 3 years old, requests induced by a premium,

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(By Mail

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and Outside

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the Mail)

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(3) Nonrequested Copies Distributed Through the USPS by Other Classes of Mail.(e.g. First-Class Mail, nonrequestor copies mailed in excess of 10% Limit mailed at Standard Mail or Package Services Rates)

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e. Total Nonrequested Distribution (Sum of 15d (1), (2), and (3)) f. Total Distribution (Sum of 15c and e) g. Copies Not Distributed



h. Total (Sum of 15f and g)



i. Percent Paid and/or Requested Circulation



(15c / 15f x 100) Average No. Copies

16. Electronic Copy Circulation a. Requested and Paid Electronic Copies b. Total Requested and Paid Print Copies (Line 15C) + Requested/Paid Electronic Copies (Line 16a) c. Total Copy Distribution (Line 15F) + Requested/Paid Electronic Copies (Line 16a) d. Percent Paid and/or Requested Circulation (Both Print & Electronic Copies) (16b divided by 16c X 100)

No. Copies of Single

Each Issue During

Issue Published

Preceding 12 Months

Nearest to Filing Date

2,493 22,301 27,476 81.2%

2,478 21,708 27,686 78.4%

 I certify that 50% of all my distributed copies (electronic & print) are legitimate requests or paid copies 17. Publication of Statement of Ownership for a Requester Publication is required and will be printed in the October issue of this publication. 18. Signature and Title of Editor, Publisher, Business Manager, or Owner

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PS Form 3526 -R Facsimile, July 2014

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© 2016 Kinexo. All rights reserved.

MEET KINEXO A TRUSTED COMPANY WITH A NEW NAME Formerly ITI & FAC, KINEXO strategically propels companies forward by providing comprehensive and innovative supply chain solutions that are proven to reduce costs, increase transparency, maximize operating efficiency and improve profitability. Some of North America’s most well-known and respected brands rely on KINEXO to help them achieve their optimum supply path, and we can help you too. Contact us today to learn more. FREIGHT MANAGEMENT | REDISTRIBUTION | SUPPLY CHAIN ENGINEERING

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Ensuring an ERP Deployment Reaches a Successful Conclusion E FROST

Robert Frost is the group CEO of LINKFRESH. LINKFRESH combines its expertise in information technology and the fresh food industry to meet the global demand for fresh, affordable and safe food in the most cost-effective way, enabling the food supply chain to grow and prosper responsibly.


nterprise resource planning (ERP) analyst firm Panorama Consulting Solutions predicted that, in 2016, there would be an increase in ERP adoption among small to mid-sized organizations as new cloud-based software-as-aservice (SaaS) and mobile ERP applications became more accessible. ERP is transforming supply chains across industries, and as mobile and cloud-based ERP solutions become pervasive, they become powerful tools that drive competitiveness by streamlining processes, improving efficiencies, reducing waste and empowering employees to be more productive. ERP can provide business benefits, such as boosting efficiency, or assisting with forecasting and planning through to providing traceability data and managing quality control. Modern ERP can help businesses better compete by instilling: Paperless Operation and Data-Driven Decision-Making. ERP facilitates the elimination of paper-based processes across all areas of the food business, from raw materials intake and inventory management to quality control and traceability. Electronic data collection eliminates the need for time-consuming and error-prone manual data collection and input. Efficient Quality Control Processes and Labeling Accuracy. A customer’s quality criteria and labeling requirements are stored electronically within the ERP system, and automatically applied during production and dispatch.


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Informed Demand Planning. Being able to accurately forecast how much demand there may be for a certain product at a certain time of the year is critical. ERP solutions use historical production data and electronic data interchange (EDI) order information to forecast demand and aid planning. Mobility. Mobile ERP can facilitate processes that need to occur away from the main place of operation. These can include hazard analysis and critical control point testing, and health and safety inspections, to name a few. However, to realize these benefits, any company embarking on an ERP selection and deployment process must match its immediate and long-term business needs with the correct solution, and plan and prepare for implementation. ERP integration involves all aspects of your business, so it is imperative to find software suited to the requirements and goals of your business, both now and into the future. What should you consider when thinking about ERP implementation?

Is the Software Suited to Your Business Needs? There are many ERP solutions, each with strengths, weaknesses and areas of expertise. Furthermore, there are pros and cons to customized, non-customized and industry-specific ERP deployments. Horizontal ERP delivers a breadth of general functionality, such as manufacturing management, sales and purchasing, or warehousing. These can be deployed out of the box, with only personalization changes, such as company logos. Companies

operating in niche or vertical industry environments, such as food manufacturing, need to customize this base software to meet industry-specific or unique operational requirements. In a vertical industry, it makes more sense to choose a vertically focused ERP system, which should already include the niche industry’s functional and process requirements straight out of the box. This means that any industry-specific customization is minimized, leading to a smoother and quicker implementation, and faster return on investment.

Assign Ownership Put someone in a position of accountability for the successful rollout of the ERP software. If you don’t assign responsibility, you run the risk of the implementation becoming rudderless—a situation that can inspire delays and disillusionment.

Establish Clear Goals Have clear, measurable goals from the outset to assess the effectiveness and success of the ERP implementation. Carefully consider what you want the ERP implementation to achieve for your business and have realistic expectations.

Involve Users from the Start A new ERP solution introduces new or different processes and ways of working. Some change management may be required. It is important to ensure all users know why the ERP is being implemented, what benefits it may bring and what that means day to day.

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For more than a century, Great Dane has delivered unparalleled Americanmade products. As the times have changed, our products have changed too, incorporating smarter technology, greater innovation and better customization. But running through every refrigerated and dry freight trailer, every flatbed and every truck body we make is one thing that will never change: our commitment to helping you get the job done. Let’s go.




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Food Logistics October 2016  
Food Logistics October 2016  

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