Food Logistics Oct 2018

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Food Logistics


Global Supply Chain Solutions for the Food and Beverage Industry


APPROACH Assuring a safe food supply chain requires collaboration with trading partners and third parties to mitigate the greatest risks


Issue No. 201 October 2018

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B lockchain Gives Food Safety A Boost


Walmart’s announcement requiring its suppliers of leafy greens to use blockchain is a major win for the tech.

Growing Landscape to Mitigate Food Risks



Assuring a safe food supply chain requires collaboration with trading partners and third parties to mitigate the greatest risks.

I nvestments in Reefer Equipment Heat Up

The sector remains a bright spot for ocean carriers and other transportation providers due to its ongoing growth.



W earables Boost Productivity, Profitability and Employee Satisfaction



B eyond the Beaches

The Jamaica Investment Forum 2018 showcased the island’s growth in agribusiness and logistics.


The food and beverage industry is increasingly turning to wearable technologies to keep up with fast-moving consumer trends. TRANSPORTATION



old Storage Evolves to C Meet Global Demands

Food safety, energy efficiency, labor constraints and changing consumer demands are driving significant changes in the cold storage sector. REGULATORY COMPLIANCE


avigating the N Food Safety Modernization Act

The transportation and logistics sector is steadily adopting freight visibility tools to remain compliant with food safety regulations.


S trategic Leasing with Data Analytics

Food distribution organizations leverage data analytics to determine how equipment acquisition impacts the bottom line. SOFTWARE & TECHNOLOGY


5 Signs It’s Time to Replace Your TMS

To determine if an upgrade is right for your organization, you must first understand how its growth, visibility, costs and flexibility are impacted by its current system. OCEAN PORTS & CARRIERS


P orts Invest in the Future of Imports

U.S. ports continue to update infrastructure to support the growth in imports of fresh fruits and vegetables.


Supply Scan 12 Food on the Move 48 Ad Index 8

WEB EXCLUSIVES • Can Refrigeration Advances Improve Consumer Confidence in the Last Mile?

• 5 Ways to Increase Warehouse Picking Efficiency

• Small Supply Chain Issues Can Result in Big Problems

Published and copyrighted 2018 by AC Business Media. All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording or any information storage or retrieval system, without written permission from the publisher. Food Logistics (USPS 015-667; ISSN 1094-7450 print; ISSN 1930-7527 online) is published 10 times per year in January/February, March, April, May, June, July, August, September, October and November/December by AC Business Media, 201 N. Main Street, Fort Atkinson, WI 53538. Periodicals postage paid at Fort Atkinson, WI 53538 and additional mailing offices. POSTMASTER: Send address changes to Food Logistics, P.O. Box 3605, Northbrook, IL 60065-3605. 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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he recent announcement by Walmart that it will require its suppliers of leafy greens to use blockchain to trace these products is not only a boost for food safety, but an affirmation of blockchain’s rising role in the global food supply chain. In a news item on its website, Walmart mentions the nationwide recall of romaine lettuce. “This year, many customers and grocers were forced to throw away large amounts of romaine lettuce when an E. coli contamination in romaine lettuce spread through the food industry. Health officials at the Centers for Disease Control told Americans to avoid eating lettuce that was grown in Yuma, Arizona,” it states. “But it was difficult for consumers to know how to determine where their lettuce was grown,” explains Frank Yiannas, vice president of food safety at Walmart. “None of the bags of salad had ‘Yuma, Arizona’ on them. In the future, using the technology we’re requiring, a customer could potentially scan a bag of salad and know with certainty where it came from.” Considering that many farms, packing houses and warehouses still use paper-based recordkeeping methods, it’s a real problem

when a food safety issue arises and officials are scrambling to identify the source and the extent of the affected product. According to Walmart’s Yiannas, with paper-based ledgers it may take his team seven days to track down the source of the product. Furthermore, “the food system is absolutely too large for any single entity to [track],” he says. However, “We’ve been working with IBM to digitize that, so the information is captured on the farm with a handheld system. It’s [also] captured at the packing house at the supplier,” he adds. Walmart’s mandate to suppliers of leafy greens to implement IBM’s blockchain technology takes effect September 2019 and will impact over 100 companies. Meanwhile, Walmart plans to roll out similar mandates to its suppliers of other fresh fruit and vegetables shortly thereafter. Food safety remains a top concern in the supply chain, of course. This month, we explore it from several different angles to uncover where the risks remain and how our industry is working to close the gaps. Enjoy the read.




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

WWW.FOODLOGISTICS.COM PRINT AND DIGITAL STAFF Group Publisher Jolene Gulley Associate Publisher Judy Welp Editorial Director Lara L. Sowinski Editor John R. Yuva Assistant Editor Amy Wunderlin Web & Copy Editor Mackenna Moralez Contributing Editor Barry Hochfelder Senior Production Manager Cindy Rusch Creative Director Kirsten Wiskus Audience Development Director Wendy Chady Audience Development Manager Angela Franks ADVERTISING SALES (800) 538-5544 Associate Publisher (East Coast) Judy Welp (480) 821-1093 Sales Manager (Midwest and West Coast) Carrie Konopacki (920) 542-1236 National Automotive Sales Tom Lutzke (630) 484-8040, EDITORIAL ADVISORY BOARD Jaymie Forrest, Chief Supply Chain and Commercial Officer, ScanTech Sciences Inc. John Haggerty, Vice President of Business Development, Burris Logistics Robert A. Norton, Ph.D., Professor of Veterinary Microbiology, Public Health and Biosecurity, Auburn University; Coordinator of National Security Initiatives, The Futures Laboratory Jon Shaw, Director of Sustainability and Global Marketing Communications, UTC Climate, Controls & Security Smitha G. Stansbury, Partner, FDA & Life Sciences Practice, King & Spalding CIRCULATION & SUBSCRIPTIONS P.O. Box 3605, Northbrook, IL 60065-3605 (877) 201-3915, Fax: (847)-291-4816 LIST RENTAL Jeff Moriarty, InfoGroup (518) 339-4511 REPRINT SERVICES Carrie Konopacki (920) 542-1236 Fax: (920) 542-1133 AC BUSINESS MEDIA CEO Barry Lovette CFO JoAnn Breuchel Digital Operations Manager Nick Raether Digital Sales Manager Monique Terrazas Published and copyrighted 2018 by AC Business Media. All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording, or any information storage or retrieval system, without written permission from the publisher.


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ORBIS Corporation has introduced a new pallet designed to ship finished goods from distribution centers to retailers in grocery supply chains. The XP Grocery pallet offers a versatile and reliable option in a continually evolving grocery and foodservice sector. “Our latest addition to the XpressPal family provides a nestable fully hygienic pallet option that features a new design and innovative features for handling high-demand products, such as fresh food,” says Ryan Roessler, plastic pallets product manager at ORBIS Corporation. “Fresh food is a high-selling category for grocers, and the new XP Grocery pallet is a safe, cleanable and reusable option to ensure product is delivered to retailers in good condition and with minimal hassle.” The XP Grocery pallet features new round legs that will make it compatible with similar pallets on the market and increase the pallet’s impact performance in rugged grocery environments. At 18 inches apart, the pallet’s legs will give forklifts maximum room to remove stacked pallets without them sticking together, allowing for easier material handling. The top deck also includes a molded-in texture to minimize load shifting, increasing friction so goods are less likely to slip off the pallet. The pallets can handle a weight of 2,800 pounds and can fit in one truckload.

Photo Credit: 40x48 XpressPal 3Q BLACK,

Daily Updates at


A labor crunch in the trucking industry is making it more expensive to deliver everything from apples to zucchini. According to Freight Transportation Research Associates, U.S. shipping rates jumped 14 percent in the year ending June 30, meaning restaurants too are facing higher prices. To avoid passing them along to customers, many are shopping closer to home. Nick Marsh, chief executive officer of Chopt Creative Salad Co., an East Coast chain with more than 50 outlets, tells Bloomberg its shipping costs jumped 20 percent from last year. He blames the spike on the driver shortage, as well as the recently implemented ELD mandate that monitors drivers’ hours. Marsh says Chopt already gets more than 50 percent of its food from local vendors during the summer, but it has recently started buying more baby kale, spinach and arugula from Florida instead of California, and is looking into greens grown indoors in New York. Buying local is not a new concept for restaurants, however. Chefs who use locally grown ingredients often remark on its improved quality due to shorter shipping times.



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Brands have begun a shift from attracting millennials to their products to a whole new class of young consumers. Generation Z, born between 1996 and 2010, now make up 26 percent of the U.S. population, and according to Forbes, generate $29 billion to $143 billion in direct spending and will make up 40 percent of all shoppers by 2020. While the youngsters are paying more for food and drinks compared to any other spending category, marketers face a new challenge in appealing to a generation that grew up using technology. A study by Sparks & Honey found that 60 percent of Gen Zers want to leave an impact on the world and expect brands to help them in doing so. Young consumers are increasingly purchasing products that have a good business conscience. More importantly, 67 percent said they would stop purchasing from a brand if it behaved in a way that didn’t align with their values, a DoSomething Strategic survey found. Kashi recently launched Kashi by Kids, a collection of multi-colored, organic, non-GMO superfood cereals. The company co-created the product with Gen Zers and let their opinions be heard. The children helped create the company’s launch event and regularly visited the headquarters to give feedback.

Photo Credit:


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Packaging manufacturer StePac is joining forces with Israel-based company Tadbik to produce the next generation of modified atmosphere re-sealable lidding film. The technology will extend the shelf life of fresh cherries in aesthetic and functional retail packaging as well as reduce waste. Tadbik created “FreshLid,” a laminated film structure that is sealed to trays. FreshLid enables users to repeatedly peel the lid back for reuse. The companies used the collaboration to develop suitable condensation control properties and control film permeability to deliver optimal modified atmosphere compositions for high-value fresh produce items. The packaging will be marketed under Stepac’s leading retail brand, Xgo. The packaging design effectively slows respiration and the aging processes, and controls humidity inside the packaging and extends fresh produce shelf life. “Successful implementation of modified atmosphere packaging requires a holistic approach that includes an understanding of post-harvest pathology, produce physiology, cold chain logistics and the interaction of each of these factors with packaging design,” explains Gary Ward, technical development manager for StePac. The lidding film technology provides benefits such as preserving freshness and flavor during long sea shipments and prolonging shelf life in stores and at home.

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Photo Credit: Pixabay



The U.S. House of Representatives voted to gut a proposed Food and Drug Administration (FDA) rule requiring chain pizzerias, delis and convenience stores to list the calorie content of their meals on menus or menu boards prominently displayed in retail locations. Instead, takeout restaurants and grocers could choose to disclose calories only on their websites. The White House opposes the Common Sense Nutrition Disclosure Act, saying it will leave Americans—who consume a third of their calories away from home—with less information to make healthy choices. Rep. Fred Upton, R-Mich., speaking in favor of the bill by Reps. Cathy McMorris Rodgers, R-Wash., and Loretta Sanchez, D-Calif., said Michigan-based Domino’s Pizza would have to list the calorie content of hundreds of different combinations of crusts and toppings on a menu board to comply with the FDA’s rule. Domino’s already has an online calorie counter for their customers, most of whom order on their computers or smartphones, Upton said.


FreezPak Logistics opened an additional public distribution center in Clifton, New Jersey in August. The facility features 220,000 square feet of space, 29 dock doors, same-day orders, and will be the first location to offer three temperature zones (freezer, dry and cooler) all under the same roof. The company already offers freezer and cooler services at their Carteret, Kearny and Paterson locations. Their innovative ideas and commitment to product quality, accurate inventory, efficient and effective operations have led them to Clifton. In line with other locations, FreezPak Clifton will offer cross docking, port drayage, storage, LTL, FTL, repacking, USDA and FDA services. “We are dedicated to investing in technology and warehouse space for the growing economy. We are forward-thinking and always looking for ways to improve our customers’ experience,” says David Saoud, co-owner of FreezPak. OCTOBER 2018 | FOOD LOGISTICS


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Photo Credit: Pixabay

To combat foodborne illnesses, Walmart and Sam’s Club sent a letter on Sept. 24 to its suppliers of fresh, leafy greens asking them to trace their products all the way back to the farm using blockchain technology. Suppliers are expected to have all these systems in place within a year. The change means that all information gathered by suppliers will be open and accessible through blockchain technology, offering real-time, end-to-end traceability from farm to table. Walmart has been working with IBM on a blockchain solution to speed up identifying, researching and reacting to food safety situations. The Centers for Disease Control has approved of Walmart moving forward with the technology, believing itself that blockchain will ensure more effective recalls. The retailer’s new requirement is about making food safer throughout the supply chain. “Customers trust us to help them put quality food on their tables for themselves and their families,” says Charles Redfield, executive vice president of food for Walmart U.S. “We have to go further than offering great food and an everyday low price. Our customers need to know they can trust us to help ensure that food is safe. These new requirements will help us do just that.”


Demand for pouches used in candy and snack food packaging is expected to increase 3.8 percent annually through 2022, reaching $3.4 billion. The fastest gains are expected for smaller segments such as nuts and dried fruit, while the large candy and confections segment will grow below average through 2022, as brand owners of these products were early adopters of stand-up pouches. Nevertheless, growth opportunities still exist, a study from the Freedonia Group reports. The study found that 75 percent of demand is generated by pillow pouches, based on their prevalence in savory snacks and cookie and cracker packaging. However, demand for pouches in all applications will increase 3.9 percent annually to $10.5 billion in 2022.

U.S. Secretary of Agriculture Sonny Perdue released a detailed accounting of how the U.S. Department of Agriculture (USDA) calculated estimated damage from trade disruptions on Sept. 13. USDA’s Office of the Chief Economist developed an estimate of gross trade damages for commodities with assessed retaliatory tariffs by Canada, China, the European Union, Mexico and Turkey to set commodity payment rates and purchase levels in the trade mitigation package announced by USDA on Sept. 4. USDA employed the same approach often used in adjudicating World Trade Organization trade dispute cases. “We have pledged to be transparent about this process and how our economists arrived at the numbers they did,” Perdue says. “Our farmers and ranchers work hard to feed the United States and the world, and they need to know that USDA was thorough, methodical and as accurate as possible in making these estimates. It was a large and important task, and I thank Chief Economist Robert Johansson and his staff for their hard work.”



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Photo Credit: Pixabay


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The Georgia Ports Authority approved a $92 million investmnet in the Mason Mega Rail Terminal on Sept. 17. The project will double the Port of Savannah’s annual rail capacity to 1 million containers and deliver the largest on-terminal rail facility in North America by 2020. “It is no accident the GPA is constructing rail capacity as the demand for rail is growing,” says GPA Board Chairman Jimmy Allgood. “As part of our strategic planning two years ago, our team identified the growing role intermodal cargo would play in GPA’s long-term success and put into place this plan for expansion.” The project will include 124,000 feet of new track, 88 automated switches and rail control devices, as well as the rail and power infrastructure to support the operation of rail-mounted gantry cranes. The added rail will accommodate 10,000-foot-long unit trains on Garden City Terminal. These cost-effective trains will provide faster, more frequent service over greater distances, extending the territory served by the Port of Savannah.

Seen as a major advancement in the transportation industry, autonomous driving technology could potentially threaten nearly 300,000 long-distance truck drivers within the next 25 years. While it’s a lighter impact than previously expected, The Wall Street Journal reports that it could still reshape the freight-industry employment. As autonomous technology gets implemented, it would likely eliminate some of the best-paid positions held by 2 million U.S. drivers. Using autonomous vehicles for long-haul trips could also fizzle demand for delivery and local trucking jobs. Despite the potential of losing human workers, trucking companies are interested in the technology because it could improve driver turnover and safety regulations that currently limit drivers’ hours of service. Jobs facing the greatest risk are those that move cargo over hundreds of miles, but perform limited non-driving tasks as well, The Wall Street Journal reports. In an already tight employment market, if autonomous technology were to replace drivers, there would only be a limited availability of good jobs for workers. Self-driving trucks could also lower freight costs, as well as improve productivity and safety. Currently, companies are testing driverless vehicles in controlled settings and have even brought the trucks to haul freight on public roads.


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


Mother Nature never fails to kick up a storm in September, the latest being Hurricane Florence. Just as certainly, freight followed a familiar three-step pattern before the weather hit. 1. Before the storm: Activity on the spot truckload freight market heated up in the days leading up to Hurricane Florence. Trucks rushed to move freight in and out of the Southeast before the storm hit, and rates rose accordingly. The two DAT “Hot Market” maps at right reflect the percentage change in spot van inbound load-to-truck ratios week-over-week. The redder the area, the higher the concentration of available inbound loads. The week ending Sept. 9 is fairly typical.


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SEPT. 9 But during the week ending Sept. 16, load availability rose dramatically in the Carolinas—and cooled off virtually everywhere else—as shippers position replenishment and relief supplies in the area. 2. During the storm: People hunkered down, and freight movement slowed. 3. After the storm: Van and reefer loads moved in first, bringing preposi-

SEPT. 16 tioned freight into areas of need. Flatbed demand picks up later with construction supplies equipment needed for cleanup and rebuilding. You can never precisely predict weather events but you can incorporate these patterns into your contingency plans. And if you need a little direction, a good map will tell you where to go.

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Norway is positioning itself as a leader in alternative propulsion systems as the Yara Birkeland becomes the first autonomous electric container ship to chart the seas. According to Clean Technica, the ship will commute between ports and help replace the use of diesel-powered trucks, eliminating an estimated 40,000 truck journeys each year. The Yara Birkeland isn’t a large cargo ship. At only 70 meters long and 14 meters wide, the ship will hold 120 containers and not house any crew. The ship is expected to be delivered in 2020, and will be fully autonomous and operational by 2022. The ship will run on batteries that will hold seven and a half to nine megawatt hours. Since the technology is insufficient for long distances, the ship is expected to only make short routes.

A group of Oklahoma-based grocers will start using Udelv autonomous delivery vehicles as part of their everyday operation, Commercial Carrier Journal reports. The first vehicle will start delivery next year, and a full fleet is expected to be delivered by the end of June. The vans are the first autonomous delivery vehicles to be used for public road driving and will be operated with safety drivers until it is deemed safe for driverless operations. To advance driverless vehicle technology, Udelv and the grocers will create a state-of-theart teleoperations center in Oklahoma City for the remote control and monitoring of the fleet.


The global market for new commercial vehicles is expected to reach a new unit-sales peak by the end of the year, according to IHS Markit. Worldwide truck demand is expected to reach a record 3.2 million new vehicles this year. Major markets like India and Eastern Europe are supporting the upswing, while China is experiencing a decline. While sales into China’s for-hire general-freight market continue to drift down, the new forecast from IHS Markit increased above earlier expectations due to ongoing strength in China’s vocational markets. The country’s 40 percent share of global truck sales means that it has a strong influence on world demand. As Chinese truck sales are projected to decline further in 2019, global conditions in 2019 are expected to differ from this year’s, for a net decline globally of about 7 percent. North America stands out in IHS’ latest forecast as a solid growth market in both years, with an expected increase of 11 percent in Class 4-7 registrations, and a continued rise of 9 percent in 2019. The smoothness is a result of strong truck demand fundamentals. However, reported truck production capacity constraints are preventing some new orders for Class 8 trucks from being delivered this year. “Whatever doesn’t get built this year is going to roll off the line and turn up in next year’s registrations, making it unlikely we will see a sharp downturn in North America before 2020,” explains Antti Lindstrom, a build-side analyst for IHS Markit.



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After a series of complaints from the trucking industry, the Trump Administration is considering making changes to the hours of service regulations, The Packer reports. A notice by the Federal Motor Carrier Safety Administration (FMCSA) explains that the electronic logging device and its ability to accurately record compliance with hours-of-service regulations have prompted requests for a change of the rule. The FMCSA is seeking public comment on four specific aspects of the rule that it’s considering amending: short-haul hours of service limits, the hours of service exception for adverse driving conditions, the 30-minute rest break provision and the split-sleeper berth rule allowing drivers to split their required time in the sleeper berth. FMCSA will have several public listening sessions while it considers the changes.

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Walmart plans to double its driver spend to attract and retain drivers by the end of the year. The company reportedly will offer referral bonuses of up to $1,500, shorten the on-boarding process for new hires and broadcast a national TV ad focusing on its truckers. According to Bloomberg, the program aims to fill vacancies and improve the image of long-haul driving as a career amid a tight labor market. In addition, Walmart will focus on hiring “non-traditional” drivers to fill the gap. In its new TV campaign, the retailer plans to show a diverse group of drivers that do not fit the typical driver image of a 50-something white man.

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A.P. Moller-Maersk will merge Damco Supply Chain Services and Maerk Line’s Ocean Product. The merger aims to offer customers the opportunity to deal with one firm when shipping goods. The change will go into effect at the start of the new year and will be headed by Vincent Clerc, Maersk’s chief commercial officer. Damco’s CEO Klaus Rud Sejiling will serve as the head of Maersk’s logistics and services products.


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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)

Each Issue During

Issue Published

Preceding 12 Months

Nearest to Filing Date

2,790 20,712 27,603 75.0%

2,618 20,153 27,221 74.0%

 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


Barry Lovette, CEO


I certify that all information furnished on this form is true and complete. I understand that anyone who furnishes false or misleading information on this form or who omits material or information requested on the form may be subject to criminal sanctions (including fines and imprisonment) and/or civil sanctions (including civil penalties).

PS Form 3526 -R Facsimile, July 2014

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10/4/18 9:30 AM




ccording to Drewry’s latest forecast, global seaborne reefer trade will continue its moderate growth over the next five years. The sector remains a bright spot for ocean carriers and other transportation providers due to its ongoing growth combined with premium rates (compared to dry freight). In turn, ocean carriers, particularly containerized carriers, and others are investing in new reefer equipment. Here are some highlights of recent purchases: Earlier this year, Ocean Network Express (ONE) ordered 14,000 reefer containers, with 2,100 of those units equipped with the latest controlled atmosphere (CA) technology, which slows down the respiration and ripening process to maximize the shelf life of fruits and vegetables. The new reefer containers were added to ONE’s fleet in time for high season. ONE was formed in July 2017, integrating Japan’s top three carriers—K Line, MOL and NYK. Although ONE had a sizeable reefer fleet at its inception, the recent purchase strengthens its market

 MSC will lease 2,000 Carrier Transicold NaturaLINE reefer containers from SeaCube Containers to supplement its fleet.



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presence in major reefer markets such as North and South America, South Africa, Europe, the Mediterranean, Intra-Asia and Oceania. Hapag-Lloyd announced in August an order of 11,100 reefer containers, which will be added to the carrier’s existing fleet of 91,000 reefers. Two-thousand of the new reefers will come equipped with CA technology as well as optimized power control to reduce energy consumption. While temperature-controlled food products will be a key cargo segment for the new reefers, Hapag-Lloyd is also targeting high-value temperature-sensitive pharmaceuticals. At the same time, the carrier is continuing to focus on East Africa’s growing market, particularly Kenya, which not only exports coffee and tea, but also fruits and vegetables. MSC plans to lease 2,000 Carrier Transicold NaturaLINE reefer containers from SeaCube Containers to supplement its fleet. The NaturaLINE refrigeration system uses repurposed CO2, the refrigerant with the lowest global warming potential (GWP) among all container refrigerants used currently. The reefer containers’ ability to reach the deep-frozen range of 40 degrees Celsius allows MSC to offer beneficial cargo owners (BCO) expanded options, particularly for the transport of seafood and other high-value frozen commodities. “Moreover, shipping is already one of the most environmentally sustainable forms of cargo transportation, and we are pleased to continue to improve our environmental performance by equipping our fleet with the latest green technologies,” notes MSC’s Giuseppe

Prudente, chief logistics officer. During last month’s Asia Fruit Logistica, CMA CGM unveiled the most advanced active CA technology to date, called CLIMACTIVE, which quickly reduces the oxygen level inside reefer containers transporting highly sensitive fruits and vegetables. CLIMACTIVE was developed by DAIKIN for commodities that require special attention due to their biological specifications and maturation time, such as high added-value products, products undergoing a long transit time and organic products. According to CMA CGM, “this technology allows businesses to optimize their competitive attractiveness by maintaining the products’ freshness up to final destination, preventing the maturation process, extending shelf life and preserving the products’ quality attributes. It also allows businesses to expand by reaching farther destinations and targeting new markets.” In addition, it allows businesses to maintain their products’ organic certification because it helps avoid the application of pesticides during the ocean voyage. Finally, on the rail side, Union Pacific (UP) confirmed plans last month to procure at least 1,000 high-tech refrigerated boxcars, or up to 1,600 if needed, which would mark one of the largest equipment acquisitions in the company’s history. According to a report in The Produce News, the Idaho potato industry relies heavily on rail to transport potatoes to major markets such as Chicago and the Northeast, and the purchase of the refrigerated boxcars would help UP continue to support this business.

10/3/18 4:08 PM

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Assuring a safe food supply chain requires collaboration with trading partners and third parties to mitigate the greatest risks.



hether we realize it or not, supply chains—local and global—enable our society to prosper. The cars we drive. The electronics that consume us. And, of course, the food we eat. However, supply chains don’t operate among us without risk. While parts may be delayed for a new



vehicle or a shortage of smartphone displays may occur, it’s the food supply chain that poses the greatest risk to our health. The World Health Organization reports that globally an estimated 600 million people fall ill after eating contaminated food, and 420,000 die every year. With such catastrophic statistics,

it’s imperative that controls are in place to mitigate supply chain risks throughout channels where food is grown, processed, distributed and ultimately consumed. What makes risk mitigation challenging is the sheer complexity of food supply chains and the factors that impact them.

Influencers of Food Safety Risk Complications within food supply chains can come in different forms. Jim Neale, partner for McGuireWoods, says due to customer demand and preferences, food supply chains are getting longer. Regardless of season, customers can find any fruit or vegetable in the grocery aisle or delivered to their door. “Supply chain managers are now able to deliver food we want, when we want it and where we need it, regardless of distance. And that’s a modern marvel to have that capability,” says Neale. “However, it means we’re purchasing produce and meat and packaged goods in the supermarket that have traveled across oceans. Inevitably, as the supply chain grows, the possibility of a weak link increases.” Angela Fernandez, vice president of retail grocery/foodservice for GS1 US, agrees, and says to have blueberries in December, such produce is likely to go through more processing and transportation. Thus, it’s an important reason to have food traceability based on global standards. “If we can trace a product faster through increased automation and through more efficient trading partner collaboration, we will know within seconds instead of days where a product was and how to isolate any potentially contaminated product,” says Fernandez. She adds that consumers have been demanding more information about food so they can research it online. And that knowledge goes beyond learning about allergens or food safety events such as recalls and withdrawals—consumers want to know that the products they buy align with their values and lifestyles. “It is now up to brands, retailers and restaurant operators to make that information available in a clear, consistent and accurate format, or these companies risk becoming labeled as out of touch with their consumer base,” explains Fernandez. Meeting consumer values and lifestyles, however, contributes to

the risks inherent in the food supply chain, says Neale. There’s pressure to source locally and buy fresh, while doing it sustainably. Thus, supermarkets are featuring imported shrimp from Vietnam in the same aisle as the heirloom tomatoes they extoll as coming from the farmer’s market down the road. “Rather than having one large facility in the Salinas Valley supplying tomatoes for Safeway, it may have 100 or even 1,000 smaller farms supporting the chain,” says Neale. “Consumers want that diversity, and supermarkets work hard to satisfy those expectations. However, verifying food safety activities and agricultural practices on 1,000 small farms is infinitely greater than it is on one large one. Is it worth the risk?” To mitigate risks and ensure compliant practices regulations, standards and certifications exist within the food industry. In the case of regulations, such as the Food and Drug Administration’s (FDA) Food Safety Modernization Act (FSMA), these are required procedures to operate within the food supply chain. Complementing regulatory compliance is the adoption of standards and certifications for greater oversight and controls.

The following explores how companies are using the FSMA, GS1 Standards and NSF Certification to maintain safe and efficient food supply chains.

Food Safety Modernization Act Since being signed into law in 2011, FSMA has changed how food is regulated in the United States— from the growers and processors to the distributors and beyond. Neale of McGuireWoods says what FSMA led to was a deputization of industry to ensure food safety compliance. It shifted the legal and compliance responsibilities beyond the manufacturer to critical points throughout the supply chain. And while initial efforts to comply were simple certificates of analysis from suppliers acknowledging compliance with FSMA’s Preventative Controls rule, it’s now evolved to actual inspections of supplier facilities to verify compliance. “We’ve moved past those bland compliance statements toward a better understanding of what the rules really require,” says Neale. “If you’re a receiver of a product, rather than relying on the FDA and its limited resources to inspect the supplier, the FDA is now requiring you to do it. And consumers are requiring it as well.” The result of those expectations has led to a widening scope of responsibilities beyond what was first expected in 2011. Neale describes a client who is a distributor working

Meeting consumer values and lifestyles, however, contributes to the risks inherent in the food supply chain.” Jim Neale, partner, McGuireWoods




People must... understand the supplier and its operation. Because responsibilities for the product don’t end once it leaves a facility.” Jim Neale, partner, McGuireWoods



with 7,000 vendors and 200,000 SKUs. How does this client comply with the Preventative Controls rule where due diligence is required on thousands of vendors and even more individual products? “When you look at the rule, inspecting each of those operations is an almost impossible task,” says Neale. “There’s no one-size-fits-all solution. What is required is an operation-specific and product-by-product analysis to determine the level of verification and inspection that is required. People want a one page, bullet-point list that demonstrates compliance with FSMA, and there are very few operations simplistic enough where that will suffice.” Steve Stomel, CEO of ProCat Distribution Technologies, sees the same concerns and believes FSMA regulations are overreaching, which is contributing to compliance issues for food companies. A FSMA requirement is implementing food safety plans for every product. This can be an onerous task for many food manufacturers and distributors that produce and handle thousands of food items. He says the average distribution


center has 10,000 SKUs that pass through it, and every item must be evaluated for a food safety plan. Does the item include allergens? Where is the item being stored? Is there risk for cross-contamination? Is it temperature sensitive? What needs to occur if there’s a breakage? These are all critical questions that distributors must answer to mitigate food safety issues. ProCat’s software can aid in answering some of those questions by focusing on activities occurring in a distribution center, such as receiving, order picking, put away and truck loading, says Stomel. “They’re enhanced to capture product temperature as items move through the distribution center, tracking lot numbers and expiration dates for testing upon receiving and picking,” he explains. “Most of the data that’s required for FSMA compliance can be input into a GS1 barcode. The software scans the barcode and automatically extracts all the manufacturer data and characteristics of an individual case to maintain a FSMA-compliant operation. There’s a significant amount of data captured for every product moving through a distribution center.” Stomel adds that the technology

also prevents items under or subject to a recall from entering a distribution center. A real-time list of recalled products flags those items from being received or shipped to the customer—preventing exposure and possible contamination inside the distribution center. While technology solutions have become a critical component of meeting FSMA compliance, Neale also says people must be willing to walk the facility floor, learn where each product or ingredient is coming from, understand the supplier and its operation—because responsibilities for the product don’t end once it leaves a facility. FSMA placed the legal and compliance responsibilities on the supply chain, not simply the manufacturer. “The Preventative Controls rule, for example, requires knowledge of products being handled to identify any potential hazards,” says Neale. “If the product is cookie dough, is the flour raw or heat treated? Knowing the risks associated with both is essential. Is the supplier heat treating the flour or is that done at your facility or by the customer who bakes the cookie dough? That knowledge serves as a preventative control and should control any pathogenic hazard. “A preventative control requires a painstaking process where you’re mapping out ingredients, where they come from and what processes are controlled by those suppliers,” Neale adds. “Relying on third parties such as NSF International or SQF Institute is another means to ensure those preventative controls are in place with an annual audit.”

NSF International With the sheer number of vendors and products in a food supply chain, companies are calling upon third parties to assist with their most critical supply partners. Often, the risks are too great not to invest in certification that assures independent verification of products and processes. NSF International provides public health standards

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and certification programs to help protect the world’s food, water, consumer products and environment. Josh Brugeman, business unit manager, sustainability for NSF International, says understanding and establishing relationships with your supply chain, regardless of whether a program is focused on food safety, sustainability The basic or quality (or all three) building block of is paramount. Too often, traceability is companies don’t have globally a full understanding or visibility into their unique identification supply chain beyond the first tier—presenting of each brand substantial risk. Consider owner’s product.” a major fast-food chain Angela Fernandez, GS1 US that’s unaware of the farms supplying lettuce and tomatoes to its locations. Not only is this catastrophic in the event of a recall and the ability to quickly trace the contaminated product, but also the potential damage to brand reputation in the aftermath. “By having a supplier or certification program in place, you will establish better contact with your suppliers, gain a solid understanding of your network and establish consistent requirements—creating a more proactive approach to managing your business,” says Brugeman. “It is helpful for companies to  An example of a case label containfirst understand their risks—certain ing key traceability commodities, suppliers or prodinformation. This is ucts—to effectively develop a risk a format typically mitigation plan. Prior to moving forused for poultry in ward with any type of certification the North American grocery industry. program, it’s helpful to engage in an

initial risk analysis exercise.” According to Carey Allen, associate managing director of supply chain food safety operations at NSF International, the NSF certification process is specific to the product, process or service being certified and the type of certification, and generally follows seven steps: 1. Application and information submission 2. Product evaluation 3. Product testing in lab 4. Manufacturing facility inspection, production confirmation and product sampling 5. Test results review and acceptance 6. Contract signed and products listed 7. Annual plant inspection and retesting Most certifications have a rigorous set of requirements, and the audit and certification is carried out by accredited third-party organizations such as NSF International, says Brugeman. Certification provides independent verification that a product or process complies with specific international standards and enables a food supplier to give assurances that food has been produced, prepared and handled according to the most recognized standards. “Certifications also provide brands with product differentiation and added brand value, demonstrating a commitment to quality processes and continual improvement as well as enabling access to top retailers,” explains Brugeman.

GS1 Standards Whether it’s a certified process or a preventative control, traceability is a major objective. And food traceability would not be where it is today without GS1 standards. According to GS1 US, a not-for-profit information standards organization, businesses, trade associations, industry groups and regulatory agencies are collaborating to drive consumer confidence in food safety and commit to improved food traceability. GS1 US works with all of these stakeholders through



the following industry initiatives: The Foodservice GS1 US Standards Initiative, the GS1 US Retail Grocery Initiative and the Produce Traceability Initiative. Together, more than 200 leading companies are committed to collaboration to improve supply chain efficiency and enhance food safety. Fernandez says the greatest threat to the food supply chain is not having any ability to control it. In terms of risk mitigation, an automated food traceability program can help a food company manage a more globally complex supply chain, become more vigilant and more recall ready. “The basic building block of traceability is globally unique identification of each brand owner’s product,” says Fernandez. “The identification numbers are encoded into GS1 barcodes that enable the automatic data capture of this and other critical traceability information, including batch/lot numbers and expiration dates. “When trading partners communicate in this uniform manner, supply chain systems operate more harmoniously. The internal data and processes a company uses to track products is integrated into a larger system of external data exchange that takes place between trading partners, serving as a singular approach for all to maintain and share product information,” adds Fernandez. Adopting GS1 standards provides a system and structure to address threats to supply chain safety, she says. The following are three key GS1 standards that comprise a successful traceability program—all of which serve to mitigate risk.  Global Trade Item Number (GTIN). This globally unique identifier of products can be recognized in all trading partner systems, even across geographic boundaries. It is encoded into a product’s U.P.C. barcode and is often referred to in news coverage of recalls along with expiration dates to specify exactly which products consumers should avoid.  Global Location Number (GLN). A globally unique identification number for supply chain partner locations such as a farm, manufacturing plant,

a distributor’s loading dock, or a restaurant or supermarket location. This number helps a company record each stop a product has made in the supply chain.  GS1-128 barcodes. When applied at the case level, these barcodes enable companies to encode product identifiers as well as additional information such as batch/lot/serial numbers, best-by dates, variable weight information and more—key details that help companies isolate affected product during a recall. Lucelena Angarita, director, supply chain traceability at the franchisee-owned Independent Purchasing Cooperative (IPC) for Subway restaurants, where she is leading the adoption of GS1 Standards for the SUBWAY® system, says Subway and IPC have incorporated GS1 Standards in all its contracts since 2014, with every supply chain partner. The ultimate goal is to know the lot/ production date of every product case within seconds. She says the food industry needs to improve within a few critical areas. • First, there is a lack of standardization. Using the same terminology and having clear understanding and alignment is critical in reducing the chances of complications and potential issues. • Second, technology is playing a larger role in businesses and people’s daily lives. Supply chain traceability is an area where technology can help decrease the probability of human error. • Third, the lack of consistent records and barcoding that would contain uniform, full information to aid traceability is an opportunity to enhance the food supply chain. As a global brand with hundreds of supply chain partners in North America, Angarita says a detailed system assigns unique global identifiers to products (GTINs), locations (GLNs) and GS1 barcodes for traceability (including GTIN, date, lot). Subway also requires partners to share information electronically (not via email or fax) in a standard language. “We’ve standardized our system

so that we have consistent records shared in a uniform manner,” says Angarita. “This system incorporates synchronizing product information in the GDSN (GS1 Global Registry) for a single source of truth and unified data governance—and, we have seen success. “Today, 99 percent of our partners are using this system, 98 percent of our food and packaging suppliers have traceable barcodes on their Subway-branded product cases, and 28 percent of our

distribution system is currently scanning the unique GS1-128 barcode when they deliver cases to our restaurants. We anticipate 50 percent of our distribution system will be scanning cases in the next six months,” adds Angarita. What is next for supply chain traceability? Angarita believes the food industry is on the cusp of a major change, in part to supply chains incorporating modern standards like GS1 into their operations. Traceability has evolved from

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being a competitive advantage to a responsible imperative, where a full, detailed understanding of product history is transparent to the public. “Technology plays an essential role in traceability, but it’s a tool that weaves pieces together. It alone cannot improve internal processes if we don’t have the right data flowing through them,” explains Angarita. “However, the GS1 standards can. These standards provide the foundation so we can apply technology and achieve full supply chain traceability and transparency, which is what our customers expect and demand every day.”

Next Stage of Risk Mitigation

Photo Credit:

 GS1 US works with several stakeholders through the following industry initiatives: The Foodservice GS1 US Standards Initiative, the GS1 US Retail Grocery Initiative and the Produce Traceability Initiative.


As regulations and standards evolve, what is the next phase in risk mitigation? Much of it is data focused. By leveraging standardized product information and data-sharing protocols, capturing more data through automation and synchronizing it with trading partners, companies have more accurate and consistent information available to them in real time, says Fernandez. “Now is the time to prepare for the future by instituting business best practices around data with a focus on the foundational components of using GTINs for standardized identification of products,” she says. “Many have started cleaning their data by working through the GS1 US National Data Quality Program. It provides a framework for data governance, outlines auditing procedures, and facilitates cross-functional education on data quality. This also helps a company deliver the product information transparency that consumers crave today.”



By Gisli Herjolfsson Temperature has one of the greatest impacts on food safety, which makes cold chain safety paramount. Despite the regulatory standards, it is no longer sufficient to only track and trace food products one step up or one step down the food chain. There are new risks being identified with foods at every step of the supply chain, along with a greater capacity to link food with illness. These days, consumers are traveling further distances and are craving new foods, ingredients and beverages that are sourced from afar. In addition, consumers increasingly expect products made from fresh and natural ingredients, which places pressure on food chains to work with logistics partners that can help them deliver the quality products their customers expect. Free from artificial preservatives, these products have shorter shelf lives and a lower tolerance for prolonged exposure to varying environmental conditions, where temperature plays a key role. Currently, navigating these hurdles involves a largely manual, tedious document trail to ensure end-to-end traceability from farm to fork. Each handoff point is critical, and quality checks need to guarantee product integrity as food moves throughout the supply chain. Any mistake can result in brand-damaging recalls, food waste, insurance costs, downstream delays, sickness, and even civil and criminal penalties. Achieving real-time location and condition visibility of perishable products from grower to consumer is critical to addressing these risks and satisfying customers. Technology is playing an important role in mitigating food supply chain risk from farm to fork. Consider a truck carrying fresh lettuce from California to a distribution center in Texas. Temperatures inside the trailer must be kept between 34 F and 40 F or produce integrity may be compromised. The truck’s own temperature monitoring system may measure temperature from a single location inside the truck, but that might not accurately reflect temperature variances that often occur throughout the truck, which can affect some of the products. If boxes shift during transit or palettes aren’t correctly placed, blocking airflow, some of the produce may be affected. Traditionally, temperature data was only available at the end of a shipment. Today, however, cloud software, powered by Internet of Things (IoT) technology, can provide food quality leaders with real-time, actionable insights about product temperature and location, as well as the ability to proactively intervene and save products if environmental conditions start to deviate. Over time, aggregated data can help to automate the cold chain, ensure food supply, shorten delivery times, lengthen product shelf life and expedite the quality review process. Technology can enable businesses to shine a light on and mitigate weak spots in the cold chain, reduce the risk of a recall and product loss, and identify single points of failure, or specific batches of affected product, rather than compromising an entire shipment. Real-time data can also be used to improve customer service and establish trust, as information can be immediately shared with stakeholders. With the availability of real-time supply chain data, businesses will need to consider how to leverage it. Whether it is internally or externally sourced, a new organizational role is needed to respond to information that is available sooner in the shipment process to proactively respond to environmental deviations, save product loads and respond to any risks identified. At a time when the food industry as a whole is under significant pressure to regain customer trust, build loyalty and protect brand integrity, businesses need to consider how technology will contribute. With the right technology and services, organizations can ensure that consistently high-quality products reach their customers, while protecting against cold chain failures and costly recalls, and minimizing the time spent on food safety issues. Gisli Herjolfsson, M.Eng., is co-founder and CEO of Controlant, a developer of cold chain visibility solutions and services.





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Food safety, energy efficiency, labor constraints and changing consumer demands are driving significant changes in the cold storage sector.


espite the disparate levels of sophistication between cold chains in developed markets versus those in emerging ones, the common goals are generally the same: maintain food safety standards and protect brand reputation, reduce operating costs, and keep pace with changing consumer demands, which includes online grocery shopping and home delivery. The cold storage sector is tasked with meeting all of these requirements, which is driving significant changes across the board.

Taking a Global View Emergent Cold, a newer cold storage provider that was founded by industry veterans, operates facilities in both developed markets, such as Australia and New Zealand, as well as emerging ones like Vietnam. This gives the company a unique view into the global cold chain. In emerging markets, the lack of infrastructure is one of the biggest challenges for the food industry, says chief operations officer West Hutchison. “There are a lot of markets around the world that have no temperature-controlled infrastructure at all,” he says, or they are “momand-pop companies that maybe don’t have some of the design experience and security systems in place from a physical facility perspective or IT perspective.” While the construction of the physical infrastructure is underway, Emergent is working with enVista, a global consulting and software solutions firm, to build an overall IT suite that ensures it will be able to track-and-trace products that are in its care custody and control. While regulations in the United States require the capture of “one up and one down traceability,” so

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that if there’s a request for that data, the appropriate party can respond, in New Zealand, the regulations are even more stringent, notes Hutchison. In particular, the data must be “pushed” to regulators. These variances in both the physical infrastructure and country-specific regulations make it a necessity to implement a robust and comprehensive IT solution that can be applied globally. It also provides a foundation for continued growth across multiple global regions.

Different Markets, Different Labor Issues Mike Rader, managing partner at enVista, notes that labor issues are also different in emerging markets like Vietnam compared to developed markets. For example, the adoption of technology lags, in part, because it’s simply cheaper to hire people and maintain paper-intensive processes. “It’s going to be interesting to see how receptive they are as we roll

out technology solutions in emerging markets, especially Vietnam,” he says. In many developed markets, though, labor availability is tight, and attracting workers to the cold storage sector can be even tougher, given the generally harsh environment. According to Hutchison, Emergent’s philosophy is “to have fewer, but more highly compensated associates, through a blend of automation and performance-based pay packages. “As we look at our facilities, there are a lot of opportunities for automation. AS/RS facilities have been around forever, but they are getting a lot more capable of performing lower-level tasks such as layer picking and case picking,” he says, adding that even the use of automated guided vehicles (AGVs) can have a positive impact in a tight labor market. Moreover, the strategic use of manual labor combined with automation is especially important as the cold storage sector continues to increase the types of value-added services it offers to customers, for example, kitting, bagging and repackaging services.

In emerging markets, the lack of infrastructure is one of the

biggest challenges in the food industry.” West Hutchison, COO, Emergent Cold


Over the summer, the Global Cold Chain Alliance released the results of its first Cold Chain Customer Research Report ( While cost continues to rank as a leading factor when choosing a cold storage provider, survey respondents representing food companies indicated that accuracy, quality and efficiency are as important as cost—and sometimes rank higher. Customer service also scored high on the survey. Specifically, the report states that “many food companies indicated that while costs are important, customer service drives numerous decisions including the ‘who,’ ‘what’ and ‘when’ around insourcing and outsourcing. Additionally, food companies see customer service as many different things, including partners who can be innovative, flexible and responsive.” Food safety remains another top consideration for food companies and their cold storage partners, according to the report. Consumers are demanding food safety along the entire supply chain, while social media puts even more pressure on food companies to protect their brand. The results show that 77 percent of survey respondents either “Strongly Agree” or “Somewhat Agree” with the statement: “My cold chain provider plays an important role in my company’s food safety.”



10/3/18 4:20 PM



DIGITAL CONSUMERS AND THEIR GROCERY CARTS By Guy Courtin, vice president of industry and strategy at Infor Mass disruption in retail is sweeping headlines, and we all know why: the rise of mobile, greater access to data, transparency due to the internet and so on. But what about grocery? Grocery shopping still commands a third of our discretionary spending and remains a key part of our budget and time, but the consumer’s experience is changing with the rise of digitization. Here are three ways digital is impacting not only the grocery industry, but the food supply chain as well.

THE RISE OF DIGITAL AND THE DEMAND FOR DATA Consumers expect more data, demanding more information while making their buying decisions. Rather than blindly trusting what big brands say, they have been trained to research what they are purchasing. Not only are consumers researching the brand, but they now also expect access to more knowledge of the product than ever before. Simple labels with calorie count and ingredients will not suffice; buyers want to know where it was sourced, how it was transported and if it meets certain sustainability requirements, to name a few. This is where savvy grocers and food manufacturers will latch onto digital to provide these details to their consumers.

CONNECTING TO CONSUMERS More savvy consumers translate to greater opportunities for grocers to connect with their customers. In the Digital Age, grocers and those in the food supply chain now have an opportunity to better connect, better understand and become more intimate with their end customers. Could the likes of Campbell’s Soup or Kraft Foods create smarter labels that allow an interaction to happen with their consumers? Yes, just look at the smart tags Johnny Walker added to its Blue Label whiskeys. These bottles are empowered to better communicate with the store systems, while providing the consumer with an additional digital layer of communication. In addition, Diageo—the company that owns Johnny Walker—can send personalized messages to the purchaser of the Blue Label spirit. Soon, consumers could receive a digital message from Kraft Foods about specific recipes associated with a purchase, or dairy producers such as HP Hood or Land O’Lakes could add smart labels that communicate with a consumer’s smartphone, warning when a product will go bad.

THE FOOD SUPPLY CHAIN GETS SMARTER Greater digitization of the food supply chain will ensure greater safety, traceability and overall efficiency. Like with many supply chains, increased used of added technology also leads to greater visibility, which translates to better management and a more efficient supply chain. The challenge with the food supply chain, however, is that it is moving many perishable items that react to outside forces such as weather, vibration and handling. Grocers and their suppliers need to lean on increased digitization to better regulate and handle the fallout of such events. For example, a banana being harvested in Ecuador will embark on a long journey to the shelf of Kroger in Decatur, Georgia. Throughout this journey, it is handled, placed in containers, shipped over the ocean, sat on docks, routed via truck, and stored in aging rooms until it finally ends up on the store’s shelf. The trick is for that banana to arrive on the store shelf at the optimal time. Imagine if this process were closely tied together via digital assets, so that Chiquita could ensure the maximum number of bananas reach the store shelf at the right time. While technology is not a magic bullet, it is no surprise that it has impacted all forms of business. When it comes to the food and the grocery business, it stands to make this supply chain more efficient but, most importantly, safer. Guy Courti has more than 15 years experience in the technology arena, specifically in supply chain. He is responsible for thought leadership and strategy for Infor Retail’s Industry and Solution team.



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In fact, Corey Rosenbusch, president and CEO of the Global Cold Chain Alliance (GCCA), notes that the revenue from value-added services has surpassed that of strictly offering storage. Specifically, 65 percent of the revenue from a cold storage facility today comes from value-added services, he says. An informal tally from the GCCA found that there are currently more than 75 different value-added services available from cold storage providers. E-commerce is also pushing cold storage providers to apply automation where they can in order to free up workers for direct-to-consumer shipments. While e-commerce/ online is still a relatively small percentage of overall grocery sales, it’s an area that’s growing very quickly, points out Emergent’s Hutchison.

Developing Trends Gathering and analyzing data is another area that is quickly evolving in the cold storage sector, says enVista’s Rader, and the Internet of Things (IoT) is helping to facilitate it. In a cold storage facility, there is obviously continuous temperature monitoring taking place. The next step is to not only track temperature, but to also find the anomalies and other indicators that can help predict trends or pending issues, Radar says, like a hairline fracture in the pipes of a coolant system that could turn into a major problem. Hutchison adds that technology

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advancements are also making it possible to get better insight on energy consumption in order to evaluate the “true cost to serve” a customer, so that the customer is not being over-charged (or under-charged) if their product or order profile is actually causing higher energy consumption in a cold storage facility. Meanwhile, the cold storage

network and distribution model is also getting a second look, he explains. For instance, building large, regional cold storage facilities in major cities that can cover the United States within a few days are common. Yet, e-commerce and consumers’ demand for quick delivery, especially for groceries, is challenging that model. “The temperature-controlled

food distribution industry grew out of the old ice house business, where every single city in the U.S. used to have an ice house,” explains Hutchison. Furthermore, deliveries to customers’ homes often included both ice and coal as a way to increase the average order size and make it profitable for the ice houses. “We’re going to see a lot of smaller distribution centers crop up around the country that will provide same- or next-day service directly to consumers’ homes,” he predicts. “It will also be interesting to see how the expectations being created by Amazon will affect the grocery and temperature-controlled distribution market. Waiting three days for a grocery delivery is not going to be acceptable.”

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FOOD SAFETY MODERNIZATION ACT The transportation and logistics sector is steadily adopting freight visibility tools to remain compliant with food safety regulations.



eadlines such as “Many sickened by foodborne illness linked to lettuce” and “Bagged salad recall” tend to attract extensive media coverage. Following these reports, the search to find out who is responsible for the illnesses begins. Did something go wrong when it was being grown? Was it properly transported, or did it spoil on the shelf? No matter the case, the outbreak was a danger to consumers, and that’s not the kind of publicity any business wants. Due to the rising number of foodborne illnesses in the early 2000s, Congress decided it was time to make improvements. The new regulations set higher standards for handling food throughout the supply chain, and since June 2017, companies transporting food have been required to comply with the Food Safety Modernization Act (FSMA). This presented challenges such as increased accountability, improved monitoring of the supply chain, quicker adoption of best practices and more collaboration within the industry. For the transportation and logistics industry, this meant they had to find new ways to ensure trucking companies were compliant with the newly formed laws. There are


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response to dramatic changes in the global food supply chain and in our understanding of foodborne illness and its consequences, including the realization that preventable foodborne illness is both a significant public health problem and a threat to the economic wellbeing of the food industry. The FSMA was signed into law by President Obama in 2011, but it wasn’t until June 2016 when the most recent Congress passed the FSMA in amendment certain steps that response to dramatic changes shippers and caraffecting transin the global food riers can take to portation was supply chain.” guarantee they finalized, with are following it initially going regulations, and there are ways to into effect in 2017. The law became improve business operations, such the first major legislation addressas using a solution to improve suping food safety since 1938; it was ply chain monitoring and relations deemed necessary due to several with carriers. These steps can go a foodborne illnesses during the first long way in enhancing the supply decade of the 2000s. One of the chain and preventing foodborne main reasons the legislation passed illness outbreaks due to poor or through Congress so quickly was improper transportation. due to the support and sponsorship of the Grocery Manufacturers AsAdvancing Food Safety sociation. The outspoken organizaThe FSMA is transforming the tion was aware of how much money nation’s food safety system by illnesses cost the food industry—bilshifting the focus from responding lions of dollars in recalls, lost sales, to foodborne illness to preventing insurance fees and legal expenses. it. Congress passed the FSMA in But that is not to say the

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portation industry didn’t have regulations in place already. In 2005, the Sanitary Food Transport Act (SFTA) was enacted, and established the groundwork for shippers and carriers keeping records on the transportation of food. It required the U.S. Food and Drug Administration (FDA) to determine sanitary transportation practices to ensure that food (including animal feed) transported by motor vehicle or rail was not transported under conditions that may adulterate the food. And, while the SFTA stated that trailers should be cleaned, there were no guidelines on how that process should be done or how often. The new FSMA was intended to supplement the SFTA, not replace it. The FDA finalized five main rules to implement the FSMA, recognizing that ensuring the safety of the food supply is a shared responsibility among many different areas in the global supply chain for both human and animal food. The rules are intended to define specific actions that must be taken in each of these areas to prevent contamination. While there are exceptions, such as the exclusion of small farms, ranches and local processors from federal oversight, the trucking industry has to follow strict regulations to ensure that food is properly handled throughout the transportation process. This includes: • Temperature control/tracking: For refrigerated products, every storage compartment must be pre-cooled and have a temperature-monitoring device. Shippers must also define temperature specifications to be met throughout transportation. • Temperature certification/data exchange: A log of temperature conditions for the duration of the transportation must be provided to the receiver/shipper by the carrier upon request. • Cleanliness: Vehicles must be maintained in a sanitary condition and are subject to inspection. Loading/unloading stations must have hand-washing facilities.

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• Training: Carriers must provide basic sanitary transportation practice training to their personnel. • Data retention: All records must be stored for a period of 12 months. While transportation is just one aspect of the supply chain in the food and beverage industry, it is an area that is just as important as any other. Considering that transportation is one-third of the supply chain—from farms to stores

and restaurants before reaching the end consumer—all parties are tasked with working together under the regulations outlined by the FSMA to ensure that food reaches consumers in a safe manner and to prevent foodborne illnesses.

Adoption Challenges New regulations mean changing outdated operations, and the trucking industry has shown that it struggles to adopt new practices.

Greater productivity. Happier customers. We do more than just get your picking right. Voxware’s solutions ensure FSMA compliance and support GTIN tracking. Voxware automates your entire distribution center using the best technology for the job. This guarantees you get the right product to the right customer on time. Every time.





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The main challenge of FSMA compliance is ensuring

no freight is lost to foodborne illnesses.”

One challenge that has plagued the industry for years is the lack of collaboration between shippers and carriers. This is a constant battle when food transportation is involved, because whenever a widespread foodborne illness outbreak occurs and points back to the transportation of the product, shippers and carriers consistently try to shift the blame. When neither party is working together, an outbreak is more likely to take place. Another challenge that the trucking industry faces is adhering to the food product transportation parameters that are outlined in a shipper/carrier contract. Most foods have certain transportation guidelines, largely involving transport temperature range. By law, shippers are required to monitor the condition of their product as it travels through the supply chain




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until it reaches the customer. However, some carriers don’t have the systems in place to track trailer temperature conditions, which creates further division between shippers and carriers. The main challenge of FSMA compliance is ensuring that no freight is lost to foodborne illnesses by making sure that it is loaded correctly and not potentially contaminated during transportation. If the regulations aren’t followed, the FDA has three primary mechanisms for enforcement when it comes to imposing direct penalties for non-compliance: re-inspection fees totaling about $225 per hour, product recalls or suspension of facility registration. These consequences can be disastrous for shippers and carriers alike, not only because they lose revenue, but also because it hurts their reputation during future transactions. Before freight visibility solutions were available, shippers were unaware of what was going on while a shipment was in the hands of the carrier. Consequently, if a foodborne illness was linked to the transportation of the food or beverage, the shippers would automatically blame the carrier. But the addition of the FSMA, along with the advent of visibility solutions, has shifted the burden of responsibility back to the shippers. They are required to know how their product is handled at all times within the supply chain. However, more is at stake than knowing who is responsible for a foodborne illness, because sometimes it isn’t linked to the transportation process. Both shippers and carriers should be aware that foodborne illnesses cost the United States an estimated $152 billion per year in healthcare, workplace and other economic losses, according to a report published by the Produce Safety Project. When a foodborne illness is detected, all of

that specific product is lost, which sends ripples down the supply chain. Shippers not only lose the potential earnings from product sales, but they also must discard any of the merchandise that is still in transit. An added economic loss occurs when their goods aren’t on the shelf, and a consumer chooses the competitor’s product. They may continue to purchase the competitor’s merchandise even after the shipper’s product is deemed safe, which results in the continuous loss of customers. If the illness is linked to the transportation process, the carrier is hit hard. They will lose the earnings from the load and have to pay insurance claims. At the same time, shippers might choose to use a different carrier the next time, which impacts future revenue. The company’s brand image absorbs the most impact of being linked to a foodborne illness. For shippers, there are plenty of competing products on the market that consumers can choose rather than

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returning to their product. Carriers run the risk of losing drivers to competing businesses that haven’t been linked to an outbreak, which, due to driver shortage, can be detrimental to a carrier’s business.

Applying Technology The main answer to these challenges is to implement a freight visibility solution. Prior to the institution of the FSMA, data tracking was performed using manual processes or inefficient software solutions. Often, there were discrepancies between shipper and carrier data, which made it more difficult for authorities to determine who was at fault when a foodborne illness was caused by improper transportation. But with a third-party solutions provider, shippers and carriers can accurately track freight, and both parties are more inclined to accept information from a third-party provider because it is unaltered. A freight visibility solution can track a shipment’s location as the carrier travels to the destination. It

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can also monitor the temperature ty solutions vendor, the two can within the trailer to ensure that monitor data in the system and the product is stored in work closely to ensure that the proper temperature Foodborne the transportation of the range during transport. illnesses cost food and beverages follows An added benefit is that FSMA regulations. When the United both shippers and carshippers and carriers work States an riers can see the clean together and share accurate estimated data, which ensures that information, the likelihood of $152 shipments arrive to their lost freight decreases. billion destinations according The rise of freight visibility per year solutions has enabled shipto the standards set by in healthcare, pers and carriers to share the FSMA. workplace and data more openly and freely Most importantly, other economic both the shipper and through trusted, third-party losses.” carrier are required vendors. Solutions like those to meet the standards offered by 10-4 Systems Produce Safety Project of food and beverage enable shippers and carriers Zack Gibbs is senior transportation. When to monitor their freight from manager, customer guidelines aren’t met, both lose out the time it leaves the warehouse to strategy for 10-4 on potential earnings and may face the time it reaches the customer. heavy fines, especially when a foodBy providing insight into Systems, where borne illness is linked directly to temperature control and location he is responsible the transportation process. FSMA tracking, shippers and carriers can for key account regulations that a freight visibility ensure that food and beverage management, solution is unable to monitor and products are transported accordsolution engineering, which human error can factor into ing to FSMA regulations and that project management include: both parties are following the rules and TMS strategic • The transport trailer must be outlined by the contract. partnerships. designed and made from material that can be adequately cleaned and sanitized. One of the concerns was that “adequately cleaned and sanitized” was not clearly defined. HUGE SELECTION Considering the quantity of OVER 34,000 ITEMS ALWAYS IN STOCK the requirements, it was up to the shipper to make that determination. • Product must be maintained in a sanitary condition that will ensure overall food safety. For instance, broken pallets that could puncture the product might not be allowed in trailers. • Product must be appropriately stored to prevent ORDER BY 6 PM FOR SAME DAY SHIPPING pests or contamination that could result in food becoming unsafe. In the segmented atmosphere of the transportation and logistics industry, shippers and carriers would take any action necessary to make the best decision for their COMPLETE CATALOG 1-800-295-5510 business. By using a third-par-




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he complexities involved in moving food and beverage products from field to shelf on time and in optimal condition are vast. Emerging trends in the industry, such as changes in consumer demand and preference (fresh produce, ready-made meal kits, etc.), e-commerce, regulatory compliance and a growing labor shortage, have further added to the challenge. In response, food distributors are increasingly turning to voice picking and other wearable technologies to increase efficiency, while reducing the margin for error in distribution operations. In fact, according to The 2018 MHI Annual Industry Report, the rate of adoption for wearables and mobile technology will grow from 23 percent to 72 percent in the next five years. While large food and beverage companies were some of the first to utilize voice and wearable technologies to boost producThe rate of tivity, the mid-market has adoption for traditionally been slow to wearables and adopt new technologies. mobile technology Today’s growing focus on will grow from fresh foods, and in turn food 23 percent safety, means paper and to 72 percent pencil is no longer a viable in the next option. five years.” “A lot of small- to medium-size growers and The 2018 MHI Annual Industry Report handlers and processors have looked at technology as a cost rather than a benefit. And that has put them behind in utilizing those technologies,” says Bruce Stubbs, director of supply chain industry market at Honeywell.



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Photo: Picavi

The food and beverage industry is increasingly turning to wearable technologies to keep up with fastmoving consumer trends.

 Pickby-vision is another handsfree option driving productivity in the warehouse.

But, the industry has now evolved to finally catch up to voice—out of necessity. “With the focus on fresh and healthier choices, there also comes the safety part of food, and it’s no longer viable to continue to use paper,” says Stubbs. “If there’s a problem with something and I’ve handled everything through paper, it might take days to dig out a file and pinpoint where the problem started and then be able to initiate some type of recall or notification to the end user community about what’s happening. If I’m doing it electronically, it could take minutes.” Beyond the obvious food safety benefits, efficiency is still central to food and beverage operations. As increased transportation costs and a growing capacity shortage tighten already slim margins, and consumer expectations continue to drive change, Keith Phillips, pres-

ident and CEO of Voxware, says productivity is still the key to maintaining profitability, especially in today’s environment where the unemployment rate is so low. “We’re no longer in an environment where you can just add people into the mix to improve or increase the throughput to the warehouse, so it’s almost a necessity that organizations leverage technology,” says Phillips.

Efficiency Still King Demand for fresh foods has shown no signs of a slowdown anytime soon—and automation of the distribution process will be critical to keeping up. “There’s a lot of opportunities as well as a necessity to automate those environments,” Phillips says, because, “it’s a very different process than just picking product and shipping it to a restaurant or a store location. There are many more moving parts, and it has to move much more rapidly.” According to Phillips, among Voxware’s customers that provide products in the fresh space, they’ve seen growth in their distribution operations by 25 percent to 50 percent in the last 18 months. On

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 Voice picking technology makes the picking process hands free, enabling workers to use both hands in a safe and ergonomic fashion.

Photo: Honeywell

Thursday morning. That’s just the world that we live in. So it’s all about accuracy and driving the highest level of productivity that you possibly can. And we believe that you do that with multiple technologies, not a single technology,” he says. Like Voxware, Picavi, which provides a pick-by-vision solution that includes smart glasses, a ring scanner and voice command, believes giving the operator multiple technologies to decide at any time

top of that demand, he adds that today’s society has very little patience for late or inaccurate deliveries. “If Amazon tells you an order’s going to show up on your doorstep on Thursday morning, you’re standing on the doorstep waiting for it on

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which input option they use is especially important when handling food and beverage products. “Food and beverage products have different sizes and forms, but the worker has his assisted reality support through the smart glass display, which in some projects even shows him a picture of the product. With the different input options available to him, he can reach smoothly for the relevant barcode— be it fruit, meat, soft drinks or something else and in whatever We’re no longer in an packaging or transport environment where you can auxiliary it is stored in the just add people into the mix warehouse,” explains Johanna Bellenberg, director of to improve or marketing and communicaincrease the tions at Picavi. throughput.” Voxware combines Keith Phillips, president and CEO, voice, scanning and Voxware augmented reality technologies in a multimodal solution to not only make the picking process more efficient but also to help automate other aspects of the distribution process.



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A New Workforce Voice picking and other wearable technologies are also helping to fill the gaps left behind by a low unemployment rate and shortage of labor. DC work is labor intensive, and it can be hard to attract and retain employees. In a survey published by the Warehouse Education Research Council, 43 percent of DC executives said that turnover is a major problem, and that low morale is a major cause of it. Stubbs says giving employees technological tools that not only make their job easier, but more interesting can help attract and then keep those employees. “It’s not just attracting and retaining, it’s keeping Photo: Picavi

“Leveraging it beyond just the picking area and automating all of the functions that take place in a warehouse, can lead to similar productivity and accuracy increases in any of the functional areas where there’s receiving, putMost people want away, replenishment or to do a great job, cycle-counting, or packing you just need and loading,” Phillips says. to get them the “All of those different actools to do it.” tivities that occur within a warehouse, to the extent Bruce Stubbs, director of supply chain industry market, that they can be automatHoneywell ed, increases the productivity and the throughput of the distribution center.” Voxware has found that automating other functional areas of the warehouse, not only increases productivity but significantly reduces mistakes. “Most of the errors that take place in a warehouse are not occurring at the pick-face. The order selectors are going to the right location, they’re picking from the right bin, but the wrong item was put into the bin, either during the put-away process or the replenishment process. So if you automate those processes, then by definition, you’re pick rates are going to go higher as well,” Phillips explains. According to Honeywell’s Stubbs, many of the efficiencies derived within the DC are simply the result  Visual guidance of not recording on pen and paper. can be more relieving “If I’m handling it with paper, I’m for the worker, as the transferring information in a very human eye perceives up to 80 percent of manual method, and there’s a lot of its daily sensory room for error… which then affects, impressions. not just my processes within the DC

making them slower, less effective, less accurate, but also introduces error into the chain of custody from end to end of the supply chain in face of a recall.” For example, when picking product manually, errors can be introduced if a worker transposes a SKU number when writing it, or by the person who receives that information who can introduce an error while manually entering data. “Doing those things electronically maintains a closed loop, keeping inefficiency and inaccuracy out,” Stubbs adds. In fact, that electronic chain of custody across the entire supply chain (not just at the warehouse) enhances the whole food logistics process. “Within the four walls [of a distribution center], they utilize that information in a number of different ways,” Stubbs explains. “Being able to electronically capture that upon receiving [a product] expedites the process, which then makes it easier for [workers] to turn doors and receive more loads. That efficiency is then carried into the storage or the put-away process and replenished out of a location into a pick location and then eventually picked.”



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those people. In order to do that, you need to equip them with tool sets that allow them to perform their job. Most people want to do a great job, you just need to get them the tools to do it,” he says. Wearables also offer the opportunity for companies to utilize morale-boosting programs such as “pay for performance,” which incentivizes employees with benefits like bonuses or extra vacation days. “It really all ties together; it helps the company, it helps the employee, and it makes the workplace more safe and optimized,” Stubbs notes. “People focus a lot on productivity, and that’s very important obviously, but accuracy is just as important. Now the focus is what DC executives are calling well-being, which includes things like safety, ergonomics, training and retention. “Picking, especially in the food and beverage industry, is a very hard job,” he adds. “Often, product is heavy and in bulky containers, so we want to be able to apply wearable technologies to enable the user at the distribution center to work in a safe manner and an ergonomic fashion as well. When we’re picking with voice, it’s hands free, eyes up and focused. Voice enables me to use both hands in a safe and ergonomic fashion, so we’re enhancing safety, ergonomics and worker morale.” In addition, voice picking eliminates the dependency on tribal knowledge, meaning workers do not actually have to be familiar with the warehouse to do their job. This allows companies to onboard and train new employees much quicker. “You’re not looking at 30 to 45 days to get them ramped up to where they’re as productive as your other workers,” Phillips says, noting that several of Voxware’s customers actually terminate new employees if they are not at full productivity by the end of Day 2. “From their experience and perspective, they know that if workers are not at full productivity by the end of Day 2, they’re never going to get there,” he adds.

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WITH DATA ANALYTICS Food distribution organizations can leverage data analytics to determine equipment acquisition impact on the bottom line.


he food distribution industry is facing an interesting dilemma as we near the end of the year. Many companies with private transportation fleets and dedicated carriers are now looking to replace older trucks with newer, more efficient units. Several factors are reaching a boiling point, causing longer wait times for original

equipment manufacturers (OEMs) to complete orders for new trucks and move them into service. Freight volumes are near all-time high levels as the economy churns continued inventory replacement for retailers, online shopping deliveries and grocers. According to the Federal Reserve in a report in The Wall Street Journal, indus-

trial production had the largest year-over-year gain since 2010 in December 2017, meaning there’s more demand to ship goods across the country. According to the latest truck orders data, preliminary North American Class-8 orders for August—typically a weak order month—topped the historic records set in July.

When fleets and for-hire carriers adopt shorter truck life cycles based on flexible leasing, greater cost efficiencies are realized to the bottom line over time. Photo Credit: Fleet Advantage



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FTR Transportation Intelligence reported that 52,400 units were ordered in August, meanwhile, ACT Research reported Class-8 orders at 53,100. As a result, orders for trucks are now up 153 percent year-over-year. Additionally, six of the top 12 order months on record occurred in the first eight months of 2018.

The Tipping Point Along with a healthy economy, recent changes to the corporate tax rate have incentivized firms further to replace equipment. This causes an interesting challenge for distribution companies with private fleets as they determine their acquisition strategies for the remainder of the year. Typically, industry firms will make purchase orders of trucks en masse and drive them for 10 years or longer in order to save money. However, firms of all sizes are beginning to realize that this acquisition strategy is not as cost-effective compared to operating trucks at a shorter life cycle. Companies can achieve more savings on maintenance and repair (M&R) by moving to a shorter life cycle—the highest variable and volatile cost of a fleet operation. Organizations are now paying closer attention to a truck’s individual tipping point, the point at which it costs more to operate a truck than it does to replace it with a newer model. Factors such as the cost of fuel, utilization, finance costs and M&R are all factored into arriving at each truck’s unique tipping point, giving fleet operations’ personnel and finance departments a closer look based on data and analytics into determining the optimum time to replace an aging truck. A recent analysis of long-term ownership versus shorter life cycle management illustrates a significant cost saving over time. A fleet that opted for a four-year lease model would save approximately $27,893 per truck in comparison to a seven-year ownership model. The shorter lease model is also cost-effective when compared to just

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a four-year ownership model, showing average savings of $12,710.

Flexible Lease Program While the decision on the upfront acquisition method could save millions on an entire fleet, shifting ongoing life cycle management to a more flexible lease program would help those savings grow further, particularly as fleets grapple with disposal costs of older trucks. Inno-

vative and flexible lease solutions allow organizations to replace equipment prior to lease expiration without penalty. This approach offers flexibility to adapt to changing markets, ultimately driving down operational costs while strengthening the corporate image and driver recruitment and retention efforts by continuously upgrading to newer trucks. Food distribution companies

Innovative and flexible lease solutions allow organizations to replace equipment prior to lease

expiration without penalty.

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GAIN EFFICIENCIES WITH REEFER LEASING By John R. Yuva As the largest leaser of refrigerated trailers in the United States, PLM Trailer Leasing examines the total leasing apparatus from a life cycle fleet management perspective. Don Durm, vice president, customer solutions for PLM, says the monthly lease payment is only one consideration when leasing a refrigerated trailer. It begins with analyzing the optimal life cycle and its total impact on the business, only then are you prepared to consider the proper financial instrument for the business. “A traditional lease payment is calculated by estimating the residual value of

Transportation companies are adopting a different mind-set when it comes to truck acquisition that’s based on economic obsolescence instead of functional obsolescence.

are leveraging data analytics and comprehensive fleet studies to determine when aging equipment will need to be replaced. This is especially effective with today’s fluctuating demand and the current booming economy as companies trying to acquire equipment solely based on demand are faced with equipment shortages and long lead times. Just as important, recent changes to the corporate tax rate, as well as new accounting standards, have made it more attractive to lease equipment. With these changes, purchasing equipment is costlier compared with shorter-term leasing. Leasing also remains the preferred method for companies regardless of a stronger or weaker balance sheet.

Residual Value Considerations

Brian Holland is president and chief financial officer at Fleet Advantage, a leading innovator in truck fleet business analytics, equipment financing and life cycle cost management.


In addition, leasing allows companies to avoid the risk of residual value and the expense of selling their used equipment. Very few companies with private fleets, for example, have any infrastructure to deal with the distribution or sale of used truck equipment. In the distribution industry, operating trucks to their functional obsolescence is 10 years. After 10 years, all they’re worth is salvage value—making disposal easy. If you want to take advantage of newer technology, improve efficiency, capture lower costs and improve your financial metrics, then it’s better to have someone else take on the residual risk and the responsibility of disposing of the equipment. All of these decisions play a


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the asset, the difference between the cost at sale and the value at end of term. For a refrigerated trailer, it’s more challenging because there really is no Kelley Blue Book value,” says Durm. “We base our leasing model on other factors beyond residual value such as consumption. Because the refrigeration unit is the most expensive piece on a refrigerated trailer, estimating the number of hours in use provides the best value for the customer before equipment inefficiencies and failure begins to impact their business.” Durm says fuel is one of the leading expenses during a leasing life cycle. And fuel is highly impacted by the refrigeration unit. New trailers operate at 0.52 gallons per runtime hour, as reported by the manufacturer. However, during the lifetime of the trailer, fuel efficiency decreases. “I started examining this issue of fuel efficiency, and based on telematics, it’s affected by engine speeds,” says Durm. “A refrigeration engine speed is directly related to the insulation efficiency. As the trailer box ages, it begins losing its R factor rating (thermal resistance) and the unit runs at higher speeds for longer periods of time—consuming more fuel,” says Durm. “Thus, a customer may want an eight-year lease, but based on its expected runtime, a five-year program may be a better recommendation based on life cycle efficiencies,” Durm adds. “By having a controlled life cycle on a refrigerated trailer, you can influence other parts of your business such as fuel, driver retention and technology investments.” A lessor is as much a business partner as customers you deliver to. Durm explains that PLM conducts a Foodservice Trailer Needs Analysis to ensure refrigerated trailer specifications are the most efficient for the demands of the customer and its operation. Thus, a PLM representative oversees how the trailer is operated throughout the distribution channel, beginning with loading, transport (including temperature monitoring) and unloading. “An operator can control warehousing and temperatures inside the facility, but once the reefer is untethered from the dock and begins its delivery, that’s when an operator is most at risk,” says Durm. “We help customers understand those potential inefficiencies, as well as choosing the correct flooring, refrigeration unit and hybrid options for their operation. Listening to our customers and getting involved in their operation is a critical and essential part of our business.”

critical role in why today’s truck shortage is a growing issue. The legacy mind-set of ordering trucks sporadically produces a bottleneck at the manufacture level, delaying the overall fulfillment process. However, as food distribution companies, fleets and carriers continue to analyze data analytics that pinpoint the

optimum time for replacement of each individual truck, orders can be predicted over time, and delivery of trucks can take on a more efficient process. Ultimately, this data helps transportation organizations determine whether short-term leasing or ownership makes more financial sense for their bottom line.

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2018 Educational Webinar Series

J O IN OU R P A N E L O F E X P E R T S FOR OUR 2018 EDUCAT I ONAL WEBI NAR SERI ES , av aila b le to you a t n o c h a r g e th a n k s to o ur ge ne r o us s po ns o r s . Re gi s t e r f o r o ne , s e v e r a l o r a l l o f th e sessions c o v e rin g th e e n tire g lo bal s uppl y c hai n f o r t he f o o d and be v e r age i ndus t r y.

DETAILS & REGISTRATION: FO O D L O G I S T I C S . C O M / W E B I N A R S TI ME : 1 :0 0 P.M . E T / 1 2 :0 0 P. M. CT / 11: 00 A. M. MT / 10: 00 A. M. PT

2019 WEBINARS: April 24

Blockchain & IoT _________________

May 22

Cold Chain I


November 7

Mitigating Risk in the Food Supply Chain _________________

From farm to fork, risk is pervasive in the global food supply chain, which is increasingly comprised of fresh, temperature-controlled foods, multiple touch points, complex regulations, and a hyper focus on food safety. Join an expert panel for a roundtable discussion on risk mitigation strategies in the food chain, including best practices for assessing and evaluating vulnerabilities and how to design and implement a comprehensive risk mitigation plan.

June 12

Warehouse Automation _________________

December 12

Hottest Food Supply Chain Trends in 2019 _________________

Our annual “trends” webinar is one of the most popular, bringing together various food logistics executives to weigh in on the hottest trends shaping up for the coming year and what they portend for the industry at large. Sponsored by

Sponsored by

August 21

Software & Technology I _________________

September 18

Cold Chain II


October 16

Software & Technology II _________________

November 6

The Role of 3PLs in the Global Food Supply Chain _________________

December 11

Hottest Food Supply Chain Trends in 2020 _________________

Dates are subject to change.

Visit our on-demand webinars, available 24/7 at: F O O DL O G I S T I C S.COM/ W EBI N AR S

• 3PLs & 4PLs • Cold Chain I • Warehouse Automation • Software & Technology I • Cold Chain II • Software & Technology II RESERVE YOUR SPONSORSHIP TODAY! CONTACT: Judy Welp | Associate Publisher | | 480.821.1093 Carrie Konopacki | Sales Manager | | 920.542.1236 If you are a thought-leader in the industry, join the panel discussion. We limit to four sponsors so call today.

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To determine if an upgrade is right for your organization, you must first understand how its growth, visibility, costs and flexibility are impacted by your current system.

eciding whether and when to replace a piece of supply chain software is a tricky balance. You can’t wait until your operations (or customers) are significantly affected by cumbersome processes or the lack of visibility, yet you know the inefficiencies of your current software are holding you back. A transportation management system (TMS) is no different. Perhaps your current TMS enables some planning, optimization and routing tasks, but you know more modern TMS systems are delivering a whole lot more. Is your organization ready to make the change? There are several factors to think about when deciding whether to replace your TMS.

❶ T HE ‘HOW’ OF YOUR GROWTH MAY CHANGE You may have ambitious plans to grow your business in the next several years, but what will that growth look like? How will you do it? If you are expanding into new markets, adding more customers or new partners, or if you simply want to make your customer service second-to-none, you will need a TMS that can support whatever path you take. Most TMS systems on the market



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today were first designed 15 to 20 years ago, before the current complexities of the food and beverage industry could ever be imagined. When deciding whether to replace your TMS, compare it with the modern systems available now, such as those that enable self-configuration and flexibility to help you keep up with shifting demands. With the ability to self-configure, you can design your own portals, set up workflows, create custom screens and more. There are many unknowns as your business grows, but process changes or workflow changes to your TMS shouldn’t take an act of Congress to implement. If self-configuration—and the control and freedom that come with it—can play a key role in supporting your growth, then it may be time to replace your TMS.

❷ Y OU’RE IN THE DARK In the food and beverage world, visibility is necessary start-to-finish: from order placement, allocation/ manufacturing and warehousing through delivery and payment. However, getting true visibility into the logistics flow has traditionally been either very expensive or limited for a number of reasons, including:

• How do you translate the different data sources into a common language? • How do you do that efficiently and in a timely way? • How do you turn that intelligence into action? Modern, configurable TMS systems can now optimize transportation execution with visibility-driven workflows; the system can read and translate vastly different data types and put them into the same format from which you can take action. Through continuous visibility optimization, a TMS can give you operational data for better visibility, help you automate exceptions and respond faster to disruptions, drive carrier management and know what’s happening across all modes. Continuous visibility optimization is live and being used in the market, transforming the way data is gathered and translated. If you feel like you’re in the dark when it comes to visibility, it may be time to replace your TMS with one that has superior integration and intelligence for extended visibility transportation execution.

❸ INTEGRATIONS ARE PAINFUL A TMS is only as powerful as its connections. If yours are weak, that’s a clear sign that it’s time to

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Everyone loses money (except the vendor) if it takes months to integrate your partners and customers. By making the move to one TMS vendor with one platform, you get faster integrations and simpler set-ups that can improve your reputation and bottom line. In the end, you have the freedom to integrate carriers and customers on your own schedule rather than waiting for the vendor’s timing, and you can rely on the same framework that drastically reduces costs by eliminating the need for separate modules.

to replace your TMS. Planning and optimization capabilities in modern TMS systems take into account all real-world constraints to give you the best options for delivering an order and building loads you can actually execute. As conditions inevitably change, the TMS continuously shows you the effects of those changes on the routes and whether

❹ W HEN CONDITIONS replace your TMS. Or, if you have to buy separate modules or use third-party tools and monitoring services, you’re paying a lot of extra costs that could be eliminated with a new system.

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CHANGE, YOU STRUGGLE When conditions or order requirements change, how quickly can you move to Plan B? If your optimization and route planning aren’t powerful enough to recalculate the best routes and options in real time—and can’t give you visibility into your best alternatives—it may be time



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Chuck Fuerst is the vice president of marketing at 3Gtms.

there are new routing options to consider. For example, in pool distribution, a newer TMS will allow several possible pool points in every area and have the algorithm select which one(s) is appropriate for a load based on the mix of freight. Depending on the route, a smaller shipment in route is often cheaper to ship as a stop-in-transit, while a larger shipment out of route is usually cheaper to deliver outside the pool point. When pool distribution is done right, it can save your organization significant costs. Relatedly, continuous pool optimization is a recent TMS feature that can be a game-changer for organizations in the food and beverage space. It gives you the ability to plan shipments into a predetermined consolidating point or dynamically determine the optimal consolidation facility. It maximizes achievable

freight savings, while adhering to pickup and delivery constraints, and improves customer service. If you have a TMS with simplified route planning, it’s not doing your organization any favors, and it’s stifling creativity when it comes to routing. Static decision-making is not cost efficient. Innovations like continuous pool optimization are the latest features that open up the routing process to more creativity and flexibility.

❺ A DDED INFLUENCES You may also consider ease of implementation, usability and customer support when deciding whether to replace a TMS. To get a good sense of this, ask potential vendors about their average implementation times and check references to uncover the process and speed of an implementation. A stellar TMS that takes a year to implement quickly loses you ground, while one that can be implemented in a few months or

weeks can make for a smoother transition and faster ROI. To ensure the longevity of your investment, look for a TMS designed with the logistics planner in mind. If your current TMS requires coding and an engineering degree to make changes, it may be time for a switch. And finally, if you feel like you’re spending as much time on the phone with vendor support as you are operating your TMS, or if you have to pay the vendor each time you want to make a workflow alteration, you may need to make a change. A self-configurable TMS will have a lower total cost of ownership because it frees you from costly support contracts and allows you to do many of the changes yourself. Understanding how your organization’s growth, visibility, costs and flexibility are impacted by your current system will help you determine how far you’re behind—and how far ahead you can get with a new TMS.

Protect and control your end-to-end cold chain Ensure quality and safety, mitigate risk, and protect your brand.

Real-time temperature and product movement traceability

Learn more or try a pilot. —



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Immediate cost savings and ROI



24/7 proactive monitoring and response services

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Global Supply Chain Solutions for the Food and Beverage Industry

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



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

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

Nominations closed Winners announced in Nov/Dec 2018 issue

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



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

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

Online nominations open approximately eight weeks before the deadlines listed above. Award results, information and nominations posted on: Nomination dates and issues may change. Consult the call-for-entries email and nomination survey for confirmation Nomination dates and issues may change. Consult the call-for-entries email and nomination survey for confirmation

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U.S. ports continue to update infrastructure to support the growth in imports of fresh fruits and vegetables.


t seems like every month is USDA’s Economic Research Service, record breaking at many of the and fresh vegetable imports rose to United States’ niche and major 31.1 percent from 5.8 percent. box ports. In fact, imports at major The increased globalization of U.S. retail container ports set three the produce industry is a result of a new records this summer as retailnumber of factors. For one, in many ers rushed to bring goods into the U.S. states, fresh produce is only country ahead of China’s retaliatory available a few months of the year. tariffs, which took effect July 6, The USDA has also made imported according to the monthly Global perishables more accessible over Port Tracker report released by the the last two decades with the issuNational Retail Federation (NRF) ance of new rules that allow more and Hackett Associates. crops to be imported from certain Ports covered by Global Port countries. Previously specific crops Tracker—which include Los would not have been approved for Angeles/Long Beach, Oakland, import because they might introSeattle and Tacoma, New York/New duce invasive pests and diseases, Jersey, Port of Virginia, Charleston, but new innovative systems and Savannah, Port Everglades, Miami, technologies can now help to mitiJacksonville and Houston—handled gate those risks. 1.9 million TEUs in July, the latest The USDA projects the trend will month for which after-theonly continue to rise, with Fresh fact numbers are available. fresh produce imports produce That was up 2.8 percent rising 45 percent from imports are from June and up 5.6 per2016 to 2027, in a recent projected to rise report, USDA Agricultural cent year over year. 45 percent Projections to 2027. While there are many factors contributing to this from 2016 But as we know, transtrend, it is thanks in part to to 2027.” porting fresh foods is no increased demand for fresh USDA Agricultural easy feat. Many ports have Projections to 2027 taken note and are making foods like exotic fruits and vegetables often produced big investments in infraby foreign farms. According to data structure that will be key to benefrom the United States Department ficial cargo owners (BCO) and their of Agriculture’s (USDA) Economic perishable cargoes—and will further Research Service, more than half of support the changing demands of the fresh fruit and almost a third of the global food supply chain. the fresh vegetables Americans buy Savannah Growing now come from other countries. Chilled Cargo Capacity The proportion of the imported fresh fruit eaten in the United States Through steady investment over rose to 53.1 percent in 2016, from a period of years, the Georgia Ports 23 percent in 1975, according to the Authority (GPA) has established


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Georgia Ports Authority/Stephen B. Morton


The new Neo-Panamax cranes will bring Savannah’s fleet to 30—more than any other single terminal in the nation.

what GPA Executive Director Griff Lynch says is the most extensive on-terminal refrigerated cargo infrastructure on the U.S. East Coast. At present, the Port of Savannah features 104 electric-powered refrigerated container racks, which accommodate 2,496 containers at a time, and the GPA recently began construction on 15 additional racks, adding 360 slots, which will come online in March 2019. The additional infrastructure will bring Savannah’s refrigerated container capacity to 3,341, counting 485 plug-ins for chilled containers on chassis. The major Savannah-area is also home to several cold storage facilities, including Gulf States Cold Storage (155,000 square feet), Lineage Logistics (345,000 square feet), AGRO Merchants (400,000 square feet) and Portfresh Logistics (100,000 square feet). “Savannah’s extensive capacity for chilled and frozen cargo has helped the port become the busiest import-export terminal in the Southeast for refrigerated containers,” says Lynch. Savannah’s location also plays a

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lio, which now includes imported mangos, citrus, grapes, avocados, bananas, apples and pears. “Through reliable operations and efficient and timely inspections of perishable products, GPA is establishing Savannah as a new gateway to the U.S. Southeast for perishable cargo,” Lynch concludes.

Port of Tampa Bay A Gateway to the Midwest The Port of Tampa Bay recently completed the first phase of a new 135,000-square-foot on-dock cold storage facility that it hopes will connect Tampa to the U.S. Midwest. The facility, operated by Port Logistics Refrigerated Services

In September, Port Logistics Refrigerated Services, the operator of a new Port Tampa Bay cold storage facility, received its first shipment of pineapples from Costa Rica in years.

Port Logistics Refrigerated Services

pivotal role in its success. Currently, the Port of Savannah handles cold-treated produce from Peru, Uruguay and Argentina. “For importers, landing product closer to the consumer market reduces transit time, creating a much more efficient supply chain and reducing overall cost,” Lynch explains. Savannah also has a strong, established outbound refrigerated market. Lynch says 40 percent of all U.S. frozen poultry exports move through the Port of Savannah, making Garden City Terminal the nation’s busiest export terminal for frozen poultry. “Loaded inbound refrigerated boxes reduce repositioning costs, delivering savings to our ocean carriers, importers and exporters,” Lynch adds. Also of benefit to BCOs is Savannah’s on-terminal inspection offices for U.S. Customs & Border Protection (USCBP) and the USDA, which Lynch says speeds up the inspection process for chilled cargo. He further notes that GPA is currently working with USDA and USCBP to expand the number of commodities and countries that can use Savannah as a port of entry. In fact, blueberries are the latest addition to its expanding portfo-

(PLRS), is part of a planned multiphased expansion that will include additional refrigerated and dry storage capacity for trans-loading, storage, packaging and distribution of food and beverage products, as well as an on-dock rail trans-load terminal to offer express service to the Midwest. Features of the first phase include: 106 reefer plugs and 6,348 racked pallet positions using Interroll gravity fed rack system; on-site dedicated fumigation services, USDA/CBP inspection areas and radiation portal monitors; and safe, food-grade glycol refrigerant used throughout. According to Rick Sharp, chief operating officer and vice president of development for PLRS, the next phase is to build a food campus that is served by rail with the ability to handle unit trains of perishables. “We feel strongly that we can connect the Midwest to Tampa and offer our customers tremendous savings in total supply chain costs,” Sharp says. In addition, the Port of Tampa Bay is also seeing an increase in trade with Mexico as a result of the expansion. “Because of inflated fuel prices in Mexico and the new electronic log restrictions in the United States, growers and shippers are looking more to ocean transportation than they have for years, and we see



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Because of inflated fuel prices in Mexico... growers and shippers are

looking more to ocean transport.” Rick Sharp, COO and vice president of development, PLRS


this trend continuing to grow,” says Sharp. “With only a three-day transit from most Mexican ports, we can provide savings for customers delivering into the Florida and Southeast markets.” The expansion also led to another significant achievement in February, when the port received its first shipment of bananas in almost 30 years. Growth in fruit imports has further increased since then, with the port currently moving Malanga Coco, limes and mangos through the facility from Mexico, and in late September, it received pineapples from Costa Rica.

Port of Charleston Gets Serious About Fruits and Vegetables The majority of fruit and vegetable imports coming into the East Coast have traditionally been routed via Northeast ports such as PhilaPort, the Port of New York and New Jersey and Port Miami. However, the Southeast has quickly become the fastest-growing HOW MANY freight claims region for imports in do you file per month? the United States. In fact, over the last seven years, the If it’s more than 10, MyEZClaim Freight Claim Software can Port of Charleston’s reduce your filing costs: reefer business has grown 86 percent, Mine claim data to identify problem carriers or products from 31,512 total Lower administrative costs by reefer containers in reducing filing time to just 15 2011 to 52,395 total minutes per claim reefer containers Cloud-based software as a Service (SaaS) in 2017. In total, all containers saw Get even more out of your system with our one-on-one freight claim training program.

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growth from 797,579 in 2011 to 1,231,661 in 2017. The size of vessels coming to the Southeast also continues to increase. Vessels with 14,000 to 15,000 TEU capacity regularly make calls on the East Coast, and the Port of Charleston anticipates handling 18,000 TEU vessels within the next 6-12 months. “We’ve seen significant growth of our cold chain business in recent years, supported by the expansion of local private blast freezing and cold storage capacity,” says Erin Dhand, manager, corporate communications and community affairs at the South Carolina Ports Authority (SCSPA). “Barring any unforeseen market impacts, we expect growth to be on par with the last few years and will continue to outpace reefer growth across South Atlantic ports. We’re working to grow our imports of fruits and veggies, as well as export protein volumes, and targeting additional investments in local cold storage capacity to meet that growth.” In terms of on-terminal infrastructure, Dhand says the Port of

The Port of Charleston completed a new 6-acre refrigerated container service area in May.

Charleston has invested in eight reefer racks at the Wando Welch Terminal and approximately 1,800 total reefer plugs between Wando and North Charleston Terminals. In May 2017, the port also completed a new refrigerated container service area. The 6-acre development allows for a self-contained tenant operation and includes a 12-lane service canopy to attach refrigerated container gen-sets, on-site storage and staging/fueling of gen-sets, and a three-lane wash station operation that utilizes a hydraulic access gangway system for safe access for personnel washing out refrigerated containers. In addition, dredging began in February 2018 to deepen the port’s channel to 52 feet and the entrance to the channel to a depth of 54 feet, as well as enlarge turning basins. When complete, the Port of Charleston will the deepest harbor on the East Coast.


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 The CMA CGMled consortium known as the Kingston Freeport Terminal Ltd. (KFTL) has invested more than $400 million in upgrades since July 2016.

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Photos: Amy Wunderlin


amaica is more than white sand and turquoise waters. While the island’s beaches certainly are some of the most beautiful in the world, the Caribbean nation is working to gain footing in industries beyond tourism. During the opening ceremony of the Jamaica Investment Forum 2018, a conference designed to showcase the country’s growth and secure new investors, Jamaica’s Minister of Industry, Commerce, Agriculture and Fisheries Audley Shaw pointed to significant growth in a wide-range of sectors. Chief among them were agribusiness and logistics. In fact, Jamaica’s logistics sector saw direct investment of $58 million and was the second-highest contributor to capital expenditures, followed by ICT/knowledge services during the 2016-17 fiscal year. The trend continued in 2017-18, following the privatization of Kingston’s transshipment terminal. The CMA CGM-led consortium known as the Kingston Freeport Terminal Ltd. (KFTL) took control of the property in July 2016, and last year invested $288 million in upgrades. This included dredging the port and

 King Pepper’s mostly female workforce (90 percent) currently operates out of a warehouse that was repurposed from a daycare center built during Jamaica’s garment industry heyday.

upgrades to infrastructure, with the Jamaica Public Service spending an additional $81.8 million to upgrade fuel and generation facilities. Jamaica’s appeal as a viable transshipment port has been significantly boosted by these upgrades and its ability to dock Post-Panamax ships, as well as the vast acreages of available land in close proximity to the Port of Kingston and its close proximity to North American and Latin American markets. “CMA CGM envisions Kingston as a major hub in Jamaica because it is on the major route of the mainliners

and is closer to the Panama Canal than other Caribbean transshipment terminals,” says Simon Farhat, chief operating officer of KTFL. Demand for Caribbean flavors and other niche food products is also driving growth in Jamaica’s agribusiness sector. Jamaica’s largest food businesses, including GraceKennedy Foods, the Caribbean’s leading distributor of food and non-food consumer products, and King Pepper Products, the manufacturer of Eaton’s brand seasoning and condiments, allow the Caribbean nation to compete globally. Beverages are a significant OCTOBER 2018 | FOOD LOGISTICS


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The challenges of operating a food processing facility in Jamaica are immense, and

breaking into the global market will not be easy.”


export for Jamaica (the third largest in the non-traditional food product category). GraceKennedy’s Tropical Rhythms juices sell particularly well on the U.S. West Coast, and they are making moves into Latin America, but the food distributor continues to focus on how they can continue to grow and become a major global player. “How do we move from 100,000 cases a month to a million,” asks Andrew Wildish, general manager, Grace Food Processors, a division of GraceKennedy. King Pepper’s growth also depends on its global presence, as 85 percent of its product is exported (60 percent or 1 million jars are exported to the United States per year). Its supplies, however, are sourced locally, averaging 1 million pounds of scallions and peppers per year. “If there were even three more businesses like ours, what a difference it would make for our farmers,” says Christine Wong, managing director of King Pepper Products. perspective. Today, meeting its goal But the challenges of operating of being on the shelves of all maina small- to medium-sized food stream grocers is not due to lack of processing facility like King Pepper interest but because Wong says they in Jamaica are immense, and cannot handle the large demand. breaking into the global market King Pepper’s mostly female will not be easy. workforce (90 percent) currently Regulatory compliance, espeoperates out of a warehouse that cially since the passing of such laws was repurposed from a daycare as the United States’ center built during Jamaica’s Food Safety Moderngarment industry heyday. We are ization Act (FSMA), is Wong says there are plans uniquely one major hurdle, as to add an additional warepositioned to proper food safety can house and new processbring health be costly. ing facility in the future, and wellness “Jamaica’s local to the world by because not only are food food safety standard is developing safety regulations demandno longer recognized ing it, but it will be essential our herbal to the company’s growth. in major markets,” industry.” Wong notes. In June, In his address, MinisAudley Shaw, Jamaica’s ter Shaw also pointed to King Pepper was minister of industry, seeking its third-party commerce, agriculture Jamaica’s capacity for food and fisheries certification, with production, specifically plans to be certified by opportunities in cannabis. October 2018. “As a government, we have Operating in a limited space is already established the framework another significant barrier not only for the aggressive development of from a safety but also an efficiency the medical cannabis industry with


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 Beverages like those produced at GraceKennedy Foods, shown above, are Jamaica’s third largest non-traditional food product export.

the Jamaica Cannabis Licensing Authority granting several licenses to grow and process cannabis,” Shaw says. “The ministry that I represent is also gearing up to collaborate with the Ministry of Health to look at pain relief and reduction of opioid use. “As a country, we are uniquely positioned to bring health and wellness to the world by developing one of our greatest assets, our herbal industry. Hence, we are pressing ahead with plans to create a vibrant medical marijuana industry,” he adds. Other opportunities exist within aquaculture (shrimp and fresh water fish sector), agro-processing (the planting of fruit trees for the fresh fruit market), and joint venture/contract farming in several elements of agriculture.

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‘BREAK THE BANK’ Staff training can be expensive. From tuition to travel, a 2-day class can cost between $2,400-5,900 per person. For education that is far easier on the budget and far more effective, choose on-site training through the Supply Chain Learning Center.


your team will receive training at your location and learn process improvement strategies and skills they can immediately implement on the job.


the Supply Chain Learning Center offers a diverse range of learning opportunities to meet your specific business needs and extend your capabilities in a shorter time frame.



are available for various professional certification programs. Contact us now for more information about learning opportunities through the Supply Chain Learning Center Jolene Gulley, Group Publisher Supply & Demand Chain Executive & Food Logistics Magazines Phone: 480.413.0354 Mobile: 262.473.9285

Competition for top talent is fierce. Build loyalty and ensure you retain your experienced employees by offering affordable professional development courses through the Supply Chain Learning Center.

Judy Welp, Associate Publisher Food Logistics Magazine Phone: 480.821.1093

For more information or course catalog, visit

Class size: Up to 18 people

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Food Logistics

Training Duration: 1-3 days Cost: Varies - choose from set program modules or customize to meet your needs


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