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WINE LOGISTICS PROVIDERS KEEP THE WINE FLOWING

TECH TO CUT CARGO THEFT

SUSTAINABILITY IN THE SUPPLY CHAIN

Food Logistics ANNUAL LISTING OF TECHNOLOGY PROVIDERS THAT ENSURE AN EFFICIENT AND RELIABLE FOOD AND BEVERAGE SUPPLY CHAIN

2016

®

Global Supply Chain Solutions for the Food and Beverage Industry

IMAGINING FUTURE FOOD LOGISTICS

THE

OF

Issue No. 182 NOVEMBER/DECEMBER 2016 FoodLogistics.com

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KEY TRENDS & DEVELOPMENTS SHAPING THE GLOBAL FOOD SUPPLY CHAIN

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2016

THE 13TH ANNUAL

FL100+

THE FOOD AND BEVERAGE INDUSTRY’S TOP SOFTWARE AND TECHNOLOGY PROVIDERS This year's FL100+ features an impressive list of companies whose products and services are crucial to the global food supply chain.

Global Supply Chain Solutions for the Food and Beverage Industry

Turn to Page 36 to learn more about these leaders and the solutions they're offering to help drive efficiencies and visibility in the operations of food and beverage companies.

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ON THE MENU

OCTOBER 2015 ISSUE NO. 171

ON THE MENU

NOVEMBER/DECEMBER 2016 ISSUE NO. 182 OCEAN CARRIERS & PORTS

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Investments in Reefer Fleets Stay Strong

Ocean carriers look to advanced controlled-atmosphere technology to protect shippers’ perishable cargo, extend shelf life and reduce food waste.

COLUMNS FOR STARTERS

W  aste Not

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Food loss and food waste are not just an economic concern, but environmental and social.

COVER STORY

Imagining the Future of Food Logistics

Here is a taste of key trends and developments underway in the global food supply chain, and how they are redefining our industry.

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FEATURES

 Logistics Providers Keep the Wine Flowing

As wine consumption increases in the U.S. and globally, logistics providers are improving transportation and handling to assure product integrity. SPECIAL REPORT

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The 2016 FL100+

Food Logistics’ annual list honors software and technology providers that ensure a safe, efficient and reliable global food and beverage supply chain.

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A  5,000-Foot View

of the Freight Market

If you look just at national average rates and volumes on the spot truckload market, it’s easy to lose sight of the details—the local influences that really set the trends. FOOD (AND MORE) FOR THOUGHT

THIRD-PARTY & REFRIGERATED LOGISTICS

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COOL INSIGHTS

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SECTOR REPORTS WAREHOUSING

58

T rack-and-Trace Technology

The food industry is increasingly reliant on RFID and barcode technologies to meet stringent food safety regulations and track-and-trace requirements, while improving logistics performance. TRANSPORTATION

62 2016

C  argo Theft Is a Critical Issue to the Food and Beverage Industry

How can companies better protect food and beverage cargo?

FEATURE

SOFTWARE & TECHNOLOGY

54

68

T  he Convenient Truth about Sustainability

Building sustainability into the supply chain is a complex, but worthwhile endeavor.

M  achine Learning Is Coming

Artificial intelligence capabilities will help food companies make up-to-theminute decisions that can reduce supply chain disruptions.

H  ow Permaculture Fits into the Global Food Supply Chain

Permaculture goes far beyond organic farming in that it takes into account an entire ecosystem.

DEPARTMENTS

Supply Scan 12 Food on the Move 75 Ad Index 8

WEB EXCLUSIVES

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• FL’s Educational Webinar Series foodlogistics.com/webinars

Published and copyrighted 2016 by AC Business Media Inc. All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording or any information storage or retrieval system, without written permission from the publisher. Food Logistics (USPS 015-667; ISSN 1094-7450 print; ISSN 1930-7527 online) is published 10 times per year in January/February, March, April, May, June, July, August, September, October and November/December by AC Business Media Inc., 201 N. Main Street, Fort Atkinson, WI 53538. Periodicals postage paid at Fort Atkinson, WI 53538 and additional mailing offices. POSTMASTER: Send address changes to Food Logistics, P.O. Box 3605, Northbrook, IL 60065-3605. Canada Post PM40612608. Return undeliverable Canadian addresses to: Food Logistics, Station A, P. O. Box 25542, London, ON N6C 6B2. Subscriptions: U.S., one year, $45; two years, $85; Canada & Mexico, one year, $65; two years, $120; international, one year, $95; two years, $180. All subscriptions must be paid in U.S. funds, drawn from a U.S. bank. Printed in the USA.

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FOR STARTERS

FROM THE EDITOR’S DESK

DETAILS

WASTE

NOT O

SOWINSKI

Food loss and food waste are not just an economic concern, but environmental and social.

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ne of the primary goals of Food Logistics is to connect the dots for our audience. We craft our editorial content to look beyond the “how” of managing the global food supply chain to encompass the “why” we do what we do, while simultaneously examining and exploring the larger impacts of our industry, both positive and negative. In December, I attended Carrier’s third World Cold Chain Summit in Singapore. Although most of us involved in the global food supply chain are aware of the massive food waste that occurs in developed and emerging economies alike, there is so much more at stake. Consider that one in nine people worldwide do not have enough to eat each day. Moreover, 2 billion people suffer from hidden hunger, caused by micronutrient deficiencies. Food waste is a significant contributor to greenhouse gas emissions (8 percent globally), which plays a perverse role in the global food supply chain. Specifically, oceans cover 71 percent of the planet, but only 2 percent of food comes from the ocean. Rising greenhouse gas emissions are being absorbed by the ocean, causing acidity levels to grow by 26 percent over the last 200 years. It’s killing plankton, the food source for smaller fish, which in turn, feed bigger fish—the ones that humans typically eat. We only have access to a tiny

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fraction of the world’s freshwater supplies and we use about 70 percent of that to grow our food. Wasted food, therefore, becomes wasted water, too. What actions can our industry take? There are many; and most are fairly easy and low-cost. For instance, precooling fruits and vegetables before loading them into a reefer trailer or container is important, yet often overlooked. Using the proper refrigerated equipment, loading containers and trailers correctly, and training all staff that are responsible for the cold chain is critical. At the retail grocery level, proper handling of perishable food is imperative from a regulatory compliance and food safety aspect, while a willingness to evaluate how food is displayed and marketed also goes a long way to reducing waste. Food loss and food waste are not just an economic concern, but environmental and social. Our industry is in position to alter what has become a serious problem. Let’s commit to taking those steps in 2017. Enjoy the read.

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

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

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

www.foodlogistics.com

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SUPPLY SCAN

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

MILLENNIAL PARENTS ARE BIGGEST BUYERS OF ORGANIC FOOD

A survey conducted by the Organic Trade Association (OTA) reveals that millennial parents, those between 18 to 34 years of age, are now the biggest group of organic buyers in the United States, with nearly 45 percent saying they look for organic food products when shopping. “The millennial consumer and head of household is changing the landscape of our food industry,” says Laura Batcha, CEO and executive director of the OTA. “Our survey shows that millennial parents seek out organic because they are more aware of the benefits of organic, that they place a greater value on knowing how their food was grown and produced, and that they are deeply committed to supporting a food system that sustains and nurtures the environment.” The desire for more organic food options is challenging farmers, grocers and restaurants to provide customers with organic, fair-trade, vegan, gluten-free and healthy food at a price point that is manageable.

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EMERSON USING IOT TO BOOST FOOD SAFETY

FRESHCODE MAKER VARCODE IMPROVES MANUFACTURING CAPABILITY

Varcode, manufacturer of the patented FreshCode smart barcode recorders, says it brought its new high-speed manufacturing capability online, allowing it to produce well over 1 million recorders per month for the global market. The company’s FreshCode recorder is a disposable smart barcode device that monitors temperature along the entire cold chain, and uses common barcode, mobile and cloud technologies to capture, communicate and store the results. FreshCode recorders are available in a range of time and temperature combinations, and can be easily customized. They are well suited for monitoring pallets, cases and smaller package sizes.

TRUMP TAPS CHAO TO HEAD U.S. DOT

Former Secretary of Labor Elaine Chao was chosen by President-elect Donald Trump to head the U.S. Department of Transportation (DOT). If confirmed by the Senate, Chao would lead the next administration’s massive goals for infrastructure funding and myriad regulations. Trump pledged to enact legislation aimed at investing $1 trillion in infrastructure over 10 years by providing $137 billion in tax credits to companies. Meanwhile, Trump is expected to roll back rules pertaining to commercial drivers’ work schedules. Chao led the Labor Department from 2001 to 2009 as the first Asian-American woman to hold a cabinet position. On Capitol Hill, transportation policy authorizers said they welcome the opportunity to work with Chao. “I am committed to working with Secretary Chao and President Trump to make responsible investments in our infrastructure, streamline transportation improvements, reduce regulatory burdens, encourage private-public partnerships, and encourage innovation to preserve and strengthen America’s economic competitiveness,” said Rep. Bill Shuster (R-Pennsylvania), chairman of the Transportation and Infrastructure Committee in the House.

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A recent survey by Emerson, a global leader in refrigeration and food safety technology, finds nine out of 10 adults are concerned about food safety. And while consumers say they trust their grocery store to provide safe food, Emerson sees potential for using the Internet of Things (IoT) to help the industry improve food safety along the food chain, including cold chain management, and ensure compliance with the Food and Drug Administration’s (FDA’s) Food Safety Modernization Act (FSMA). “Only a few decades ago, food transporters would put a thermometer in the food once it reached its destination, whether the trip was five or 500 miles,” says Bob Sharp, executive vice president of Emerson Commercial & Residential Solutions. “Now, we have the technology to give us constant insight into food temperature from the farm to the warehouse to the store, helping to protect food safety and quality for the customers we serve.” Emerson is expanding its cold chain capabilities by using small, IoT-enabled sensors to constantly monitor the surface temperature of foods. The company’s acquisitions of Locus Traxx and PakSense gives it the tools to provide real-time temperature tracking and a full suite of temperature monitoring solutions to protect perishable goods through the supply chain. Combined with its advanced ProAct monitoring of refrigeration and food in 17,000 retail sites and more than 2,000 shipping vessels globally, Emerson now offers technology solutions to monitor food from farm to fork.

www.foodlogistics.com

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SUPPLY SCAN

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

AGWATER CHALLENGE RECRUITS SEVEN NEW COMPANIES

The AgWater Challenge, an initiative created by Ceres and the World Wildlife Fund (WWF) to encourage companies to reduce water use in their global supply chains, added seven new companies to its ranks—Diageo, General Mills, Hain Celestial, Hormel Foods, Kellogg Co., PepsiCo and WhiteWave Foods—all of which submitted detailed sustainable sourcing and water stewardship plans. Brooke Barton, senior director of water and food programs at Ceres, notes: “Major food brands can be a powerful and constructive force for scaling water stewardship, especially at the farm level where the biggest footprint is by far. These brands recognize the material financial impact that water risks pose to their business, from supply disruptions to higher operating costs to growth constraints. More than ever, companies are responding to these supply risks through farmer incentives, local partnerships and bottom-line reductions.” Commitments by the seven companies include: • PepsiCo will work with its agricultural suppliers to improve the water efficiency of its direct agricultural supply chain by 15 percent by 2025 (compared to 2015) in high water risk sourcing areas, including India and Mexico. • Hain Celestial is setting a new sustainable sourcing goal for key agricultural inputs, including a commitment to strengthen water and fertilizer management practices of farmers in its ingredient and protein supply chains. • Hormel Foods will develop a comprehensive water stewardship policy, setting water management expectations that go beyond regulatory compliance for its major suppliers, contract animal growers and feed suppliers—a first in the meat industry. • WhiteWave Foods will develop a time-bound road map for agricultural water stewardship over the next 24 months to address shared water challenges facing its key commodities in areas of greatest water risk, including California. In 2017, Ceres will evaluate the companies’ adherence to their commitments through the release of its second “Feeding Ourselves Thirsty” report, which benchmarks global food and beverage companies on their water management practices. All of the AgWater stewards will be benchmarked in the report, along with several dozen additional companies.

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AGRICULTURE SECRETARY VILSACK ISSUES U.S. EXPORT FORECAST FOR 2017

The U.S. Department of Agriculture (USDA) is forecasting a strong outlook for American farm exports in 2017. “U.S. farmers and ranchers continue to rise to the challenge of supplying the world with high-quality, American-grown products,” announced Agriculture Secretary Tom Vilsack on November 30. “At a projected $134 billion in 2017, U.S. farm exports continue to rally and remain on the record-setting pace of the past eight years. Since 2009, the United States has exported more than $1 trillion in agricultural products, far more than any other period in our history, thanks to the productivity and ingenuity of American farmers and ranchers, aided in part by the work of USDA’s Foreign Agricultural Service to arrange and support trade missions, and of the Animal and Plant Health Inspection Service to break down trade barriers.” Vilsack said that the $134 billion forecast represents an increase of $4.3 billion from 2016 and would be the sixth highest total on record. In addition, U.S. agriculture is once again expected to post a trade surplus, totaling $21.5 billion, up nearly 30 percent from the $16.6 billion surplus in 2016. “The expected volume of 2017 exports is noteworthy, with bulk commodity exports expected to surpass last year’s record levels—led by soybeans at a record 55.8 million metric tons, and corn, up 11 percent from last year, to 56.5 million metric tons. The volume of cotton exports is expected to begin recovering, and most livestock and poultry products should see moderate increases in export volume as well,” Vilsack added.

FISHER CONSTRUCTION GROUP WINS AWARD FOR COLD STORAGE FACILITY

The Global Cold Chain Alliance (GCCA) announced that Fisher Construction Group, a member of the International Association for Cold Storage Construction (IACSC), a GCCA Core Partner, won the inaugural IACSC Built by the Best Award. Fisher was named the winner for the work done on a joint cold storage and food processing facility for Lineage Logistics and Titan Frozen Fruit. Lineage Logistics contracted with Fisher Construction Group to build a 216,777-square-foot Leadership in Energy and Environmental Design (LEED)-certified facility, which includes 151,000 square feet of cold storage and dock space, and 65,000 square feet dedicated to on-site food processing for Lineage’s tenant, Titan Frozen Fruit. Fisher developed solutions to challenges during facility construction, at times managing over 120 workers in 10 trades, to allow Titan Frozen Fruit to start processing strawberries just seven months after breaking ground. With the capacity to blast freeze 1 million pounds of product per day, the state-of-the-art facility will play a major role in meeting the expanding food processing needs in the Santa Maria, California, region. The IACSC award was created in 2016 to recognize the world’s leading experts in building temperature-controlled facilities of all types. www.foodlogistics.com

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FOOD ON THE MOVE

LOGISTICS TRENDS IN OUR INDUSTRY

PORT OF PHILADELPHIA GETS A $300 MILLION BOOST

Pennsylvania Governor Tom Wolf announced a $300 million investment for the Port of Philadelphia that will start next year and continue through 2020. It’s a much needed and comprehensive investment in the port’s infrastructure, warehousing and equipment that will result in a direct job increase from 3,124 to a forecasted 5,378 positions. The port’s container-handling capacity will at least double the current capacity of 400,000-plus 20-foot equivalent units (TEUs) annually and will be scalable to 1.2 million TEUs in the future. The bulk of the investment will go toward the Packer Avenue Marine Terminal, the Port of Philadelphia’s primary container terminal, which will add four new electric post-Panamax container cranes, relocate and build new warehouses, and deepen the berths to 45 feet, matching the new 45-foot depth of the Delaware

The bulk of the improvements are planned for the Packer Avenue Marine Terminal.

River’s main channel. Electrification (the ability to power without the need for the vessels to burn fuel while docked) throughout the terminal also will be modernized to support electrification of existing diesel cranes and cold ironing capabilities at the terminal.

SHIPT GROCERY APP ADDS BEER AND WINE TO THE LINEUP Shipt, a mobile and desktop app for grocery store delivery, expanded its service partnership with the Harris Teeter grocery chain in November. Customers in the Charlotte, North Carolina metro area can now order beer and wine along with their groceries, making Harris Teeter the first market with full-service delivery in the area. Customers are required to upload a scan of their identification and also present it at the time of delivery. Shipt also launched with Florida-based Publix in September,

but it is not yet providing alcohol delivery to customers. Meanwhile, the demand for alcohol delivery in the Charlotte area is growing. Instacart started an online delivery service for alcohol with Total Wine & More. Last year, a craft delivery service called BREWPUBLIK also launched in Charlotte, and since expanded into Raleigh and San Francisco.

DAT SOLUTIONS’ MONTHLY FREIGHT REPORT

Reefer Load Volumes Unseasonably Strong 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. He is based in Portland, Oregon. For more information, please visit www.dat.com.

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It’s been an unusual fall on many fronts in the spot truckload freight market, as we continue to see atypically strong rates and volumes. In fact, October was the strongest month for freight availability in 2016, except the June seasonal peak. Compared to September, total spot market freight volume rose 1.8 percent. Dry van freight availability increased 51 percent in October and reefer volume rose 44 percent. Double-digit declines month over month are more the norm. One reason for the increases is a surge in volume and rates on eastbound, long-haul van lanes out of the West Coast. The Westto-East increases were likely due, in part, to the rescheduling of retail freight movements in the wake of the Hanjin Shipping Co.

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bankruptcy, as well as abundant harvests in California and the Pacific Northwest. Despite the lower overall volume, and due partly to that West Coast demand, van rates rose 1.4 percent in October. Reefer rates experienced a decline of 1.2 percent,

but remain high for the season. By mid-November, there were signs of a more typical seasonal pattern in regional produce markets. For instance, with peak apple season over in Michigan, rates dropped on lanes out of Grand Rapids. There were more outbound loads from Nogales, Arizona, a hub for fruits and vegetables from Mexico. And then there’s southern Idaho, where potatoes and onions were rolling out ahead of the holidays. By November 12, Twin Falls was the No. 1 market for reefer load posts, with a load-to-truck ratio of 33.4 available loads per truck. Darker-colored states have higher load-to-truck ratios, meaning there’s less competition for reefer loads in those states.

www.foodlogistics.com

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FOOD ON THE MOVE

LOGISTICS TRENDS IN OUR INDUSTRY

MIA OCEAN-TO-AIR PROGRAM EXPEDITES PERISHABLE SHIPMENTS Miami International Airport (MIA) is preparing to launch a program allowing it to receive perishable freight imports by sea as well—a first for any Florida airport—through a permit approved in September by the U.S. Department of Agriculture (USDA). The first ocean-to-air transshipment is expected at MIA before the end of the year. Customized Brokers, a subsidiary of Crowley Maritime Corp., partnered with MIA to gain approval for the pilot program, which allows the logistics company to coordinate the ocean shipment of perishable products from Latin America to PortMiami or Port Everglades, and then transport them to MIA, where they will depart by air via KLM Cargo or Centurion Cargo to foreign destinations in Europe and Asia. Additionally, U.S. Customs and Border Protection (CBP) granted first-ever approval for expedited processing of these ocean shipments before they depart by air. The ocean-to-air pilot program will save both time and money for cargo shippers, which will receive expedited air transport for perishable products and will not be required to pay CBP duties. It also will allow European and Asian households to receive produce from Latin America at the peak of freshness, extending in some cases the seasonality for certain available items. The new freight shipments from local seaports also will strengthen MIA’s cargo business, adding to the 1.92 million tons of international airfreight handled annually at MIA—the most for any U.S. airport and the 10th most in the world.

U.S. Customs and Border Protection granted approval for expedited processing of ocean shipments before they depart Miami International by air.

CALIFORNIA’S PORT OF HUENEME WELCOMES SEALAND

The port that farmers built, otherwise known as the Port of Hueneme, started doing business with SeaLand, Maersk Group’s intra-Americas regional carrier. SeaLand added Hueneme as its newest port of call on the West Coast Central America service, which provides weekly service between the Port of Hueneme, and Mexico, Central America and the western coast of South America. The Port of Hueneme is located approximately 60 miles northwest of Los Angeles and is in close proximity to California’s rich agricultural epicenter—the Central Coast—making it a strategic location for global farm trade. Del Monte Banana Company and Chiquita Fresh North America, which rank as a few of the port’s most well-known customers, were influential in prompting the port to build state-of-the-art on-dock refrigerated facilities with rapid cooling and cold treatment capabilities, and make the port a reliable holding and moving station for fresh fruit imports to the U.S. Southwest. The refrigeration capabilities, combined with good infrastructure, quick inspection services and a deep-water harbor, are a big draw for shippers. Kristin Decas, CEO and port director, says, “SeaLand brings a valuable weekly service to the port, supporting those regional customers that grow and handle fresh fruit, vegetables, dried fruit, nuts, cotton and hay. Additionally, the service strengthens the port’s connections with Central and South America, our long-term target trade lanes, which promises to enhance our longstanding relationships with fresh fruit importers and exporters.”

SHIPPING GIANTS FORM OCEAN ALLIANCE Four giants in the shipping industry formed the biggest shipping alliance in the world. The newly formed Ocean Alliance consists of the French shipping company CMA CGM, China’s COSCO, Taiwanese Evergreen Line and Hong Kong-based Orient Overseas Container Line (OOCL). Collectively, the Ocean Alliance will operate a fleet of 350 container vessels, with a

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capacity of approximately 3.5 million 20foot equivalent units (TEUs). Deployment will cover more than 40 services worldwide; these include about 100 ports of call and roughly 500 interconnected ports. Together, the Ocean Alliance will control nearly one-quarter of the world’s container ship fleet and provide more competition for the 2M Alliance, currently comprised of

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Maersk Line and Mediterranean Shipping Co. (MSC), which controls 27.7 percent of the global box fleet. THE Alliance, the third and most recent planned alliance, is made up of Hapag-Lloyd, “K” Line, Mitsui O.S.K. Lines, Nippon Yusen Kaisha (NYK) and Yang Ming, with plans to include the United Arab Shipping Company (UASC) in the coming months. www.foodlogistics.com

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17.04.2015 13:22:58


COOL INSIGHTS

BY MARK MONTAGUE

A 5,000-FOOT VIEW OF THE FREIGHT MARKET I

An analysis of outbound activity by region shows how local influences set trends in the spot truckload market.

16

f you look just at national average rates and volumes on the spot (non-contract) truckload market, it’s easy to lose sight of the details—the local influences that really set the trends. So lately, I’ve been looking at outbound activity by region, trying to understand what’s behind some notable strong volumes this fall. Measured at the national level for trips over 250 miles, spot market van rates are up 17 cents per mile since the low point in April, including a 6-cent increase in the fuel surcharge. I analyzed outbound rate activity in 15 regions, in fact, comparing average spot truckload rates for the first seven days of November to rates for the entire third quarter. In the first week of November, 64 of those region-to-region pairs had a rate increase of at least 6 cents per mile. Why? First, there’s more freight to haul. Spot van freight volume usually peaks in June and gradually declines during the rest of the year. Second, there’s higher-than-normal demand to move that freight from West to East. In my 15-region analysis, the biggest rate increases were on lanes that originated in the West, heading to destinations along the East Coast. Here are the four region-to-region pairs with the biggest rate increases: • California to New England— up 18 cents per mile. • Upper Mountain States to Florida and southern Georgia—up 17 cents per mile. • Pacific Northwest to Florida and southern Georgia—up 16 cents per mile.

FOOD LOGISTICS | NOVEMBER/DECEMBER 2016

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DAT NORTH AMERICAN FREIGHT INDEX

700 600 500 400 300 200 100 0

2012 (DEC) JAN

FE B MAR APR MAY JUN

• Lower Mountain States to lower Atlantic States—up 16 cents per mile. In some regions, including the Great Lakes and upper Midwest, rates were actually down 6 cents per mile or more in the first week of November. But surging activity out of California, the Pacific Northwest and mountain regions elevated the national average. Again, you have to ask why. Here are a few factors that are contributing to higher rates to move goods by truck: • Produce Harvests Rate changes for refrigerated freight on the spot truckload market are spurred by produce harvests. The national average refrigerated truckload rate rose to $1.97 a mile during the first week of November, the highest since early July. It should be no surprise that potato-rich Twin Falls, Idaho, was the No. 1 market for reefer freight during the two weeks leading up to Thanksgiving. Or that the largest rate increases for spot reefer freight during that period came

2013 JUL

AUG

2014

2015

SEP OCT

2016

NOV DEC

out of Green Bay, Wisconsin, a big market for dairy and cranberries. • Hanjin The bankruptcy of Hanjin Shipping Co. continues to send ripples through the supply chain. It may not affect your regular contract hauls, but what if your freight was held up at the port and wasn’t available for the carrier’s scheduled pickup? You reschedule, and then the carrier or the 3PL might need to hire a spot-market truck to move it. Guess what? That rate just went up. While the geographic trends may shift in the coming weeks, it’s reasonable to expect a continuation of the atypically high volume and rates on the spot freight market through the end of the year. 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 more information, please visit www.dat.com. www.foodlogistics.com

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©2016 Carrier Corporation

rt ™ Tra n s p o e V e c to r h T y . le b a p p o rt u n it t. R e li g e n u in e o l e ff ic ie n a e u is F g t. n h ri ee h tw e ig a le r ti v e e n g in Q u ie t. L ig s ic o ld d e U ) in n o v a R (T ’s it rr ie r Tra n n a U C n r o u ti o y ra A sk ance. R e fr ig e f p e rf o rm s s b e tt e r. o e d in n s u ra b b r c to r e you it h th e V e to m a n a g in lo v e w g in ll fa a re w h y fl e e ts

www.carrier.com /ecoforward

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©2015 Carrier Corporation.

, E C N A M R O F R E TR U E P . E V O L TR U

www.trucktrailer.carrier.com

12/6/16 3:54 PM


COVER STORY

BY EDITORIAL STAFF

IMAGINING THE FUTURE OF

FOOD LOGISTICS Here is a taste of key trends and developments underway in the global food supply chain, and how they are redefining our industry.

A

s 2016 comes to a close, we mark another year of exciting developments in our industry. Suffice it to say, there is never a dull moment in the food supply chain industry. The impact of consumers and their demands for a variety of fresh, healthy foods, whether at grocery stores or restaurants, coupled with the interest in online ordering and home delivery, is altering the landscape for food retailers and the logistics providers that support them. Regulatory compliance remains another top-of-mind issue. The effects of the Food Safety Modernization Act (FSMA) continue to reverberate as food producers, transporters and retailers incorporate new processes and procedures into their operations to ensure a truly safe food supply chain from farm to fork. Meanwhile, new and emerging technologies are introducing faster, safer and more intelligent ways to design, optimize and manage the food supply chain. With so much to cover, our editorial team chose to offer a taste of some of these trends in our cover story, from small blurbs to a few longer writeups: We think this captures just how dynamic our industry is and what the future holds for the global food supply chain. Lara L. Sowinski, Editorial Director

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FOOD LOGISTICS | NOVEMBER/DECEMBER 2016

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BLOCKCHAIN FOR THE FOOD CHAIN For the most part, there hasn’t been much news related to blockchain and the food chain, but an announcement by Wal-Mart recently was significant. The retailer is testing how blockchain can be used to identify recalled food items and remove them from store shelves quickly. “Like most merchants, the world’s largest retailer struggles to identify and remove food that’s been recalled,” according to the Bloomberg article. “When a customer becomes ill, it can take days to identify the produce, shipment and vendor. With the blockchain, Wal-Mart will be able to obtain crucial data from a single receipt, including suppliers, details on how and where food was grown, and who inspected it. The database extends information from the pallet to the individual package.” Marshal Cohen, chief industry analyst with NPD Group, comments, “It gives [Wal-Mart] an ability to have an accounting from origin to completion. If there’s an issue with an outbreak of E. coli, this gives it an ability to immediately find where it came from. That’s the difference between days and minutes.” Frank Yiannas, vice president of food safety at Wal-Mart, says blockchain also could help the retailer avoid pulling all potentially affected merchandise and focus on that which is affected. “With blockchain, you can do strategic removals, and let consumers and companies have confidence,” he says. “We believe that enhanced traceability is good for other aspects of food systems. We hope you could capture other important attributes that would inform decisions around food flows and even get more efficient at it.” In October, the retailer opened the Wal-Mart Food Safety Collaboration Center in Beijing. It’s also working with IBM and Tsinghua University to use blockchain to improve the way food is tracked, transported and sold to Chinese consumers. If Wal-Mart adopts blockchain to track food globally, it could become one of the largest deployments of the technology to date. www.foodlogistics.com

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THE CUSTOMER IS KING Although it may not always be apparent, Bluetooth-enabled devices connect customers still hold considerable power with nearby smartphones to send ads, and influence. To appeal to customers’ coupons or product information to changing desires of what they want to eat, shoppers.” how, when and where, grocery retailers Electronic shelf labels (ESLs) also are rethinking their entire business model. are getting more attention from Millennials are helping push these changgrocers for their ability to display es. They want more ready-to-eat options prices, ads and nutritional informaat the grocery store; they want home tion, says Karolefski. Several chains delivery; they want to do everything from are testing them and customers are their mobile phones. starting to see them at their local John Karolefski, who follows these retailer. trends on GroceryStories.com, says groMoreover, grocers in urban areas cers are getting creative to are scaling down the size of “enliven what has been their stores to cater to a mundane chore.” small households, The supermarnotes Karolefski. ket is becoming “These shoppers digitized, he will cruise the says. “Retailperimeter for ers will look prepared food, to connect dairy, bakery with smartand produce.” phone-carThe full-sized rying stores have are unsure about what’s for shoppers, their own stratdinner, and seek high-quality, especially egy for attracting ready-to-eat foods and ready-to-heat meals. millennials customers. “Operawho will account tors of large superfor most grocery markets will take advanpurchases as they tage of their space to lure start families. Grocers, such customers with special events,” he as Marsh Supermarkets and others, are says. “More product sampling, nutritional equipping stores with beacons. These tours and cooking demos will take place.”

81%

of American consumers

Dining at the grocery store is another emerging trend. “Before customers go about their grocery shopping, they can have a bit to eat or something to drink. Operators of many new large supermarkets are including a café with a light menu to nourish customers,” says Karolefski. Some grocers are even adding bars and cafes next to the grocery store, while more continue to add Starbucks to the perimeter of their stores.

IN THE DRIVER’S SEAT

27%

BY THE NUMBERS THE ATA PREDICTS THE AMOUNT OF

FREIGHT MOVED BY TRUCKS WILL JUMP BETWEEN 2016 AND 2027 THE INDUSTRY WILL NEED MORE THAN

96,000 NEW DRIVERS OVER THE NEXT DECADE

Trucks deliver products quickly and efficiently within the tight timeframes many consumers expect. But as the need for truck fleets rises domestically, bodies to drive them continue to decrease. The American Trucking Associations (ATA) reports that trucks accounted for 70.1 percent of domestic freight tonnage in 2015, while America’s supply of drivers continued to decrease for the third year in a row. As more drivers are leaving the industry due to retirement, technological demands and stricter standards, the ATA estimates the industry will need more than 96,000 new drivers over the next decade to keep up with growing demand. Alleviating the shortage is proving challenging, though Tom Scollard, vice president of dedicated contract carriage at Penske Logistics, believes, to attract more drivers, two key factors must be addressed—increased pay and emphasized job desirability for blue-collar employees.

TO KEEP UP WITH GROWING DEMAND

www.foodlogistics.com

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COVER STORY continued

2017: THE YEAR OF THE ELD When the American Transportation Research Institute (ATRI) unveiled its list of the top 10 critical issues facing the North American trucking industry, the looming implementation date of the federal mandate on the use of electronic logging devices (ELDs) topped the list. Starting December 18, 2017, truck drivers will need to scrap their paper logbooks for ELDs. The goal behind this transition is to better track and enforce driver hoursof-service requirements. But getting ELDs into more than 3 million heavy-duty Class 8 trucks nationwide is a major undertaking and one projected to cost trucking operators more than $1 billion. Experts are urging trucking firms to step up planning to meet the requirements of the mandate. They also are recommending that shippers do their due diligence, and survey core carriers to learn if they are currently using ELDs or have a transition plan

in place to implement them. Many experts ity to deploy the technology within their are expressing concerns that trucking firms operations, while “keeping wheels rolling are not ready for the mandate. and money flowing.” A Truckstop.com survey in March found But waiting might be folly. Rick Stocking, 84 percent of trucking companies do not president and co-CEO of Swift Transportahave onboard computers tion, predicted in an earnings A Truckstop.com or ELDs, and nearly as conference call with Wall survey in March many do not plan to add Street analysts that shippers found 84 percent them until shortly before will eventually require the December deadline. companies to have ELDs of trucking Some respondents even and warns trucking compacompanies do warn they will leave the in- not have onboard nies will respond in kind by dustry before they will add increasing their prices. computers or the recording technology. There is a light at the end ELDs, and that nearly Derek Leathers, of the ELD tunnel. Though as many do not plan to add president and CEO of it appears that compliance them until shortly before Werner Enterprises, which may prove challenging, the the December deadline.” gradually added ELDs to change is also an opportunity its operations, noted at to expand in-cab efficiency. the 2016 NASSTRAC conference that the ELDs offer routing, navigation and producholdup for many trucking firms is not just tivity tools that can greatly enhance carrier the cost of the equipment, but also the abil- operations.

WE ARE

Hebert Research Inc. The TechSci Research report, “Global Organic Food Market by recently found that more Product Type, Region, Competition Forecast and Opportunities, than 29 percent of con2011–2021,” predicts the global organic food market is projected sumers are selecting and to grow at a compound annual growth rate (CAGR) of more than consuming organic, fresh 14 percent from 2016 to 2021. and unprocessed foods. So how can a food manufacturer tackle such a huge issue? This increased demand Rising Internet penetration, aggressive marketing strategies by raises the level of concern major companies and easy availability of these food products on food manufacturers have the back of a robust distribution network are projected to boost about sustainability, especially in the areas of recycling and waste sales of organic food across the globe. In 2016, about 43.7 million management. hectares of agricultural land was under organic cultivation and In an effort to address the growing demand, the managed by over 2.3 million producers. Leading organic Grocery Manufacturers Association partnered food market players are offering these products with the Food Marketing Institute this year in environmentally friendly packaging to lure to standardize food waste practices and consumers. “no” communicate them to consumers. North America and Europe dominated the In addition to the demand for fresh, global organic food market, and accounted unprocessed foods, consumers infor a cumulative revenue share of around % “unsure” creasingly are more aware of where 80 percent in 2015. These regions are their meal is coming from and, more expected to generate significant demand importantly, who is manufacturing it. for organic food products through 2021. A recent survey conducted by the The Organic fruit and vegetables domiCenter for Food Integrity found that nated the organic food market in 2015. consumers actually hold food compaDemand for organic processed food is % nies more accountable than farmers, anticipated to grow at a robust pace during grocery stores and restaurants. What this the forecast period, on account of changing means for food manufacturers is that transIS THE FOOD INDUSTRY HEADED lifestyles, the rising working women populaIN THE RIGHT DIRECTION? parency is an even more critical area of focus. tion base and scarcity of time.

WHAT WE

EAT

33%

27

40

“yes”

20

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www.foodlogistics.com

12/7/16 4:10 PM


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COVER STORY continued

OCEAN CARRIERS AND PORTS:

LATE TO THE TECH PARTY?

As imports and exports of food products continue to grow, the role that ocean carriers and ports plays also is rising. This year, Food Logistics reported on several developments related to smart reefer boxes, such as those introduced by Maersk Line and CMA CGM. In short, these containers are fitted with hardware and devices that provide improved levels of tracking and tracing, more precise cold chain management, and valuable diagnostic information for the carrier on the status and condition of the reefer boxes in their fleet. However, two R&D project managers at Valenciaport Foundation, Jonas Mendes Constante and Alexandre Sanchez Perez, contend that ocean carriers and ports are lagging when it comes to adopting and applying technology, and slow in innovating their business models. “One of the main problems suffered by the port and shipping industry is the lack of innovation,” they wrote on PortStrategy. com. “In fact, in the last 20 years, there has been little activity if we compare with other industries. Whereas the aerospace sector is using data properly, most ships do not even have basic sensors to ensure their hatches are closed before leaving port.”

Indeed, the demise of Hanjin Shipping, overcapacity, historically low rates and dismal growth in world trade don’t make for a rosy outlook for ocean carriers and ports, but this isn’t the time for inaction, warn the executives. “During turbulent periods, companies are forced to rethink their business models, invest in innovation to open up their possibilities to new markets and identify new systems that offer the chance to reduce business costs.” Furthermore, “There is no magic formula for the process of innovation management,” they suggest.

“Executives should invest more resources in external alliances with tech startups, empower and support intra/entrepreneurs, and be involved in innovation projects as partners of research centers and universities.” The two conclude, “The risk of not taking innovation seriously is as bad as following other ports and shipping companies’ practices, instead of dedicating time to analyze your own needs, challenges and business opportunities.”

WORLDWIDE

The number of active tracking devices deployed for cargo loading units including trailers, intermodal containers, air cargo containers, cargo boxes and pallets

REACHED 2.9 MILLION IN 2015

EXPECTED TO REACH 8.1 MILLION BY 2020 22

FOOD LOGISTICS | NOVEMBER/DECEMBER 2016

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www.foodlogistics.com

12/7/16 4:10 PM


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OR CONSOLIDATE DIE?

COVER STORY continued

FOOD INDUSTRY

AT THE TIP OF THE IOT ICEBERG The food industry tackles some very complex problems, including food safety and waste management. Foods kept at the wrong temperature, or in unclean or unsafe environments will quickly go bad, adding to food waste or, worse, making people sick.

new technology need an ironclad return on investment (ROI). “But food manufacturers can expect an ROI in reduced overages, shortages and damages (OS&D),” he says. “Less products will reach their destinations unusable or unpalatable because they were maintained at the incorrect temTHE ANALYST FIRM GARTNER perature. And retailers will be able SAYS THERE WILL BE to analyze the data pertaining to a shipment and, in some cases, reject or redirect truckloads based on the CONNECTED DEVICES BY 2020 readings they obtain off the sensors in real time.” The Building greater use Internet of of IoT data in the food Things (IoT) industry is going to take promises to time, education and techaddress these BUSINESS OPPORTUNITY nology, adds Joe Scioscia, EXPECTED TO BE problems vice president of sales for GENERATED BY THE IOT through techVAI. “We are at the tip of OVER THE NEXT 30 YEARS nology. “The the iceberg,” he says. “But use of the IoT I predict we are going to will help us understand some very see more and more use of the IoT sensitive issues when it comes to to improve food safety.” food, including temperature and Greater use will begin with edlight exposure, to ensure that food ucation, especially in the mid-maris maintained, handled and manket, according to Scioscia. “They ufactured in an environment that need to learn what we mean by allows it to have the longest shelf unstructured data and how it can life possible,” says Sean Riley, direc- be used for later analysis,” he says. tor of strategic business solutions Riley adds companies also will for Software AG. need to invest in a good application The data also will improve prodprogram interface (API) platform uct traceability, so companies can to manage the data and a Big Data efficiently perform product recalls. analytics tool to derive actionable To date, Riley states adoption of intelligence from the data. Once the IoT is quite low. He explains, the tools are in place, Scioscia says, “Food manufacturing, transporta“You’ll see rapid growth of unstruction and sales are not high-margin tured data and companies really businesses, so investments in using it as a differentiator.”

26 billion $ 11 trillion

+

24

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In late August, South Korea’s Hanjin Shipping Co., one of the world’s largest shipping lines, filed for bankruptcy protection, sending shock waves through the global supply chain. The containerized ocean freight industry suffered considerably in 2015 amid financial woes, continuing into 2016 and potentially beyond. Japan’s three largest shipping companies announced in October they would merge their container shipping operations to create the world’s sixth-largest competitor in an effort to cope with a global decline in the container business. The downturn led to an increasing number of alliances and moves toward consolidation in the industry, including the world’s 20 biggest container operators, which are all in the midst of a wave of consolidation. Over the past two years, China’s two shipping giants, China Ocean Shipping Company or COSCO, and China Shipping Group, merged their operations; France’s CMA CGM, the world’s third-biggest container operator, bought Singapore’s Neptune Orient Lines Ltd.; and Germany’s Hapag-Lloyd merged with Dubai-based United Arab Shipping Co. Container ships move 98 percent of the world’s manufactured goods, however, an overabundance of shipping capacity in the water, estimated at 30 percent above demand, is driving THE TOP FIVE SHIPPING most operators COMPANIES NOW CONTROL AROUND 50 PERCENT OF TOTAL deeply into the INDUSTRY CAPACITY VERSUS red, according 41 PERCENT IN 2010, to an October ACCORDING TO ALPHALINER report by the Wall Street Journal. A.P. Moller– Maersk Group Thus, consolMediterranean idation among Shipping the indusCompany S.A. try’s largest CMA CGM companies is China Ocean a necessary Shipping evil in order to Company (COSCO) restore balance Evergreen to the oversatuMarine rated market. Investment firm Jefferies said in an October research report, however, that it retains a negative outlook on the shipping industry, adding that the lengthy timetable for consolidation of the Japanese carriers means the merger “is unlikely to change sector fundamentals” in the near term. Jefferies expects the supply of new ships to continue outpacing demand in 2017, with a net capacity growth of 5.1 percent. www.foodlogistics.com

12/7/16 4:10 PM


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COVER STORY continued

THE TOP 10 MUST-READS OF 2016 By Amy Wunderlin

As Food Logistics wraps up our final issue of 2016, we take a look back at our analytics for the year to see what exactly our readers were most interested in. The following list includes the top 10 most clicked stories at FoodLogistics.com in 2016 as determined by our readers.

trolled issues, Food Logistics offers this annual award as a handy resource to transportation decision-makers, giving them an up-to-date snapshot of the capabilities of these companies and the geographic region(s) they serve.

③ Warehouse Software: Innovation Tracks Changing Market Demands

① 2016 Champions: Rock Stars of the Supply Chain By Editorial Staff — March 2016 Following the inaugural Food Logistics Champions: Rock Stars of the Supply Chain award in 2015, readers of Food Logistics nominated nearly twice as many exemplary industry professionals this year. The award is a way to recognize influential individuals in our industry for their hard work, vision and leadership in shaping the global food supply chain.

7

② Food Logistics’ 2016 Top 3PL & Cold Storage Providers By Editorial Staff — August 2016 No one can debate the role third-party logistics and cold storage providers play in today’s challenging cold supply chain is an important one. This year’s Top 3PL & Cold Storage Providers list recognized the top 3PL and cold storage companies for their commitment to continued improvement in temperature-monitoring technologies, transportation management systems and warehouse management systems. To help logistics professionals know whom they can turn to for help in temperature-con-

26

By Elliot Maras — February 2016 This January cover story explores the various types of warehouse software available in the food and beverage (F&B) supply chain industry, such as warehouse management systems (WMSs), warehouse control systems (WCSs) and warehouse execution systems (WESs). Management software has long played an important role in a company’s ability to efficiently manage warehouse operations. This article looks at how the right software enables a company to deploy structural changes in the warehouse operation as it grows or if it wants to change its strategy. Such changes can include introducing warehouse automation, adding new services (such as refrigerated inventory handling) or consolidating facilities.

④ Buying Versus Leasing: Factors to Consider By Elliot Maras — October 2016 The decision to buy or lease vehicles is one of the most important choices a fleet owner makes, given the amount of capital involved. For most fleet operators, the choice isn’t an either/or type of decision. Each option has benefits. Hence, many fleets mix both options as tools to maximize their use of capital. This comparison weighs the pros and cons of each decision based on several key factors, which include

FOOD LOGISTICS | NOVEMBER/DECEMBER 2016

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the type of operation, vehicle configurations, organizational or managerial preferences, routes, work seasonality and financial considerations.

⑤ Leveraging the Power of Your 3PL By Mindy Long — March 2016 An open, consistent flow of information is the first step in getting the most out of your 3PL. According to several industry-leading 3PLs, communication and collaboration are the most critical factors in establishing a successful relationship between F&B customers and their providers. The right information enables them to improve inventory turns, cut costs and improve service, especially early on in the partnership. As outlined in the cover story, in addition to having operating information and timely data, a defined common goal can lead to continuous collaboration and a healthier business relationship.

⑥ 2016 Top Green Providers List By Editorial Staff — June 2016 Our annual list of Green Providers offers logistics professionals a guide to the www.foodlogistics.com

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⑧ Chipotle Strikes Back

By Elliot Maras — April 2016 In the wake of E. coli and norovirus outbreaks that took restaurant chain Chipotle Mexican Grill by surprise, Maras reports how the leader in casual dining responded to consumers’ demand for fresher, locally sourced products. Chipotle’s answer to the outbreak signifies challenges that the food industry as a whole faces in the modern environment. The April cover story dives deeper into advances in safety technology and traceability, and how the F&B industry can learn from Chipotle’s mistake.

⑨ Pallet Solutions Concerns Expand Beyond

Sanitation and Sustainability

providers, manufacturers, and software and technology companies that are finding new ways to promote sustainability throughout their operations and those of their customers. This year’s list consisted of transportation providers, 3PLs, cold storage providers, technology companies, pallet manufacturers and many others who stepped to the front to become the leaders in supporting a more sustainable global food supply chain.

⑦ F&B Tackles Supply Chain Traceability Head On By Elliot Maras — March 2016 Supply chain traceability has taken center stage in the F&B industry like never before as the finalization of the Food Safety Modernization Act (FSMA) forced the industry to scrutinize its food safety practices. As supply chain companies work to comply with the new law, an emphasis on improving traceability throughout the supply chain has been ongoing. A special report featured in the March issue of Food Logistics helped to define traceability, and explored what it means for the industry now and in the future.

www.foodlogistics.com

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By Elliot Maras — May 2016 While the Food Safety Modernization Act (FSMA) focuses much attention on sanitation and traceability in the food supply chain, when it comes to pallets, these are only some of the concerns facing today’s food supply chain decision-makers, according to this May feature story. The FSMA requires that transportation equipment be adequately cleanable for intended use to prevent food from becoming contaminated, but beyond legal requirements, F&B companies are looking to validate safety and quality assurance programs in their supply chains. This article looks at how the industry is evolving to offer more customizable pallet options.

⑩ ERP Takes on a Bigger Role in

Managing Supply Chains By Elliot Maras — May 2016 In his May feature story, Maras explores a trend toward acquiring enterprise resource planning (ERP) software as companies grow and tasks become more complex. ERP allows companies to manage data for multiple business activities, such as product planning, cost analysis, manufacturing, service delivery, marketing, sales and more, in a supply chain where growers, processors, packers, distributors, transporters, retailers and foodservice operators have to collect more product information than ever and organize it for more uses.

COOL PORT EASES COOL DISTRIBUTION

The Port of Rotterdam, Europe’s largest sea port, is known for its accessibility to world markets due to intermodal connections via air, rail, road and more sea. The accessibility to food is no different. The port is home to what is called Cool Port, a cold storage clustering that specializes in handling refrigerated and frozen cargo in reefer containers. And there’s room to expand. Because the perishables trade will grow by 3.3 percent between 2014 and 2019, according to the port, the creation and maintenance of the Cool Port was a strategic move. It’s integrated within a network of container terminals with rail, barge and empty depot access for ease of transport. It is expected to become operational in 2017, with a capacity of 40,000 temperature-controlled spaces to handle upwards of 400,000 pallets a year. According to the port: “The combination of location and cold storage facility makes Rotterdam Cool Port attractive. Shippers no longer need to transport cargo from the terminal to the cold store, so that import and export costs can be reduced. As Rotterdam Cool Port is being developed directly adjacent to container terminals, it will be possible to make optimum use of reefer container equipment … Speed is crucial for perishable goods. Consequently, a whole range of specialized firms and temperature-controlled storage facilities established themselves in Rotterdam and the surrounding area.” Other features include: • The ability to serve 500 million consumers within 24 hours. • A throughput of approximately 466 million tons or 12 million 20foot equivalent units (TEUs). • The ability to accommodate a depth of up to 75 feet.

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| FOOD LOGISTICS

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IRRADIATION AND FOOD SAFETY

COVER STORY continued

AAPA: MAKE PORTS PART OF INFRASTRUCTURE IMPROVEMENTS The American Association of Port Authorities (AAPA) recently sent a document to President-elect Donald Trump’s transition team, outlining opportunities to, in the words of the President-elect, “Make America Great Again” through strategic investments in seaports and related freight transportation assets. “President-elect Trump has put forth an ambitious goal of investing up to $1 trillion to rebuild America’s infrastructure, for which freight transportation and ports are vital components,” said AAPA President and CEO Kurt Nagle. “An enhanced focus on freight transportation and ports would help achieve the new administration’s goal of building a better economic future for America.” The AAPA document recommends promoting multimodal efforts designed to relieve traffic bottlenecks and expand capacity.

28

These efforts include: • Providing additional Fixing America’s Surface Transportation (FAST) Act investments and a sustainable freight trust fund to plan and build multimodal projects. • Establishing a properly funded and staffed Office of Multimodal Freight Transportation within the U.S. Department of Transportation (USDOT). • Supporting funding for a robust Strong Ports program under the USDOT Maritime Administration to help ports plan for 21st century infrastructure needs. • Increasing investments for authorized marine highway projects to ensure transportation alternatives alongside congested land transportation corridors and increasing funding for transportation infrastructure grants to $1.25 billion per year.

FOOD LOGISTICS | NOVEMBER/DECEMBER 2016

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A Houston-based company has made significant improvements to electronic cold pasteurization (ECP) technology, and has emerged as a leading developer, manufacturer and operator of best-in-class food treatment systems and facilities. ECP is not new to the food industry, notes ScanTech Sciences. “Other companies that rely on ECP technology use third-party electronic-beam accelerators intended for medical device sterilization, which involves significantly higher dosing and leads to food being degraded in the treatment process.” However, ScanTech has made patented improvements to the established and widely accepted ECP technology. The company is “the only designer and manufacturer of ECP systems purpose-built exclusively for the treatment of food, enabling precision dosing that eliminates 99.9 percent of foodborne pests and pathogens, while maximizing shelf-life extension,” according to its website. As for the science behind it, ScanTech explains: “ECP is a non-nuclear isotope method of irradiation

that employs highly ECP irradiation focused and precise beams of electrons to eliminate 99.9 percent of foodborne pests and pathogens. of foodborne pests and ECP processing pathogens in food. involves moving the food through the ECP electron beams for only milliseconds on a high-speed conveyor. When ECP’s ionizing radiation strikes pests, bacteria and other microbes, its high energy breaks chemical bonds in molecules that are vital for cell growth and integrity. As a result, pests and pathogens either die immediately, or can no longer multiply to cause illness or spoilage.” ScanTech says the U.S. Food and Drug Administration and numerous organizations around the world have spent more than 30 years studying the safety of irradiated food. “In addition to certifying the process as 100 percent safe for consumers, the agency continues to advocate food irradiation as the new gold standard in food treatment.”

eliminates

99.9%

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3PL/REFRIGERATED LOGISTICS

BY LARA L. SOWINSKI

LOGISTICS PROVIDERS KEEP THE WINE FLOWING N

As wine consumption increases in the United States and globally, logistics providers are improving transportation and handling to assure product integrity.

30

otwithstanding U.S. millennials’ penchant for craft beer and cocktails, Americans consume more wine than any other country, and consumption is forecast to increase by 2 percent between 2015 and 2019, higher than the 1.4 percent growth estimated globally, according to a report by market research firm the IWSR and the Vinexpo wine trade fair. Even Cuba is getting attention as a new growth market for U.S. wine. Earlier this year, a two-day symposium was held in Havana to reintroduce Cuban restaurant owners and managers to California wines. The island nation saw a 76 percent surge in American tourism in 2015. While the U.S. trade embargo prohibits American producers from selling agricultural goods to Cuba on credit, it’s hoped that Congress will remove the restriction soon, which would jump-start U.S. wine exports to Cuba. China represents another market with strong growth prospects. The IWSR/Vinexpo report shows wine imports to mainland China increased by 37 percent in value in 2015 to $1.9 billion. Overall, the report says China and Hong Kong’s wine imports will grow 16 percent between 2015 and 2019. California is the dominant player in U.S. wine exports, accounting for about half of all American wineries and 89 percent of production, trailed by Washington (4 percent), New York (3 percent), Oregon (1 percent), Texas (1 percent) and all other states (2 percent).

FOOD LOGISTICS | NOVEMBER/DECEMBER 2016

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The Wine Institute, an association representing California wineries, says California wine exports increased 91 percent by value over the past decade. “We’re seeing a premiumization trend with dollar sales outpacing volume growth,” adds Linsey Gallagher, vice president of international marketing. “This growth is occurring despite heavily subsidized foreign competitors, high tariffs and a strong dollar.” Of the top 10 export markets for California wines, U.S. WINE the European EXPORTS Union is the largest, at $622 million, CALIFORNIA followed by Canada ($461 million), Hong Kong ($97 million), Japan ($96 million), China ($56 million), Nigeria ($29 million), Mexico ($26 million), South Korea ($23 million), Switzerland ($21 million) and Singapore ($15 million). A Wine Institute summary market of 2015 trends in key export marfor Calikets points to further optimism in fornia wines on this sector. the continent, are paying off with an increase of 32 percent in revCANADA enues. European Union countries California wine sales continued accounted for nearly 40 percent of to be strong in Canada. California total U.S. wine exports in 2015. wineries have made significant investments to develop this busiUNITED KINGDOM ness and expect continued growth, One-quarter of all U.S. wine although at a slower pace. exports by volume come to this country. Value increases now are CONTINENTAL EUROPE outstripping volume growth, with Nearly all export markets in U.S. wine export value to the United Continental Europe showed an inKingdom (U.K.) rising by 28 percent crease. Educational and promotion- in 2015. The U.K.’s wine trade shiftal efforts in Germany, the largest ed emphasis to restaurants and an

89%

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3PL

continued

independent retail sector, leading to increased interest in premium wines from California. JAPAN

Americans as a whole consume more wine than any other country, and consumption is forecast to increase by 2 percent between 2015 and 2019.” The IWSR

California wine is selling well in Japan, but supply was a major challenge in the first quarter of 2015 due to the slowdown at U.S. West Coast ports. Japan’s California wine imports in January 2015 were down 40.5 percent by volume from 2014. The shortage has since been resolved to meet demand. CHINA

“With no reliable countrywide sales data, the 2015 numbers based on import/export data for China don’t tell the whole story on California wine performance and, in fact, are misleading,” says Christopher Beros, the Wine Institute’s trade director for China. When one looks at consumption of California wines in the premium

and super premium categories, sales were up in 2015. A decline in exports was due to a drop in less expensive wines being imported following excessive importation in 2013 and 2014. Sales of higher-priced wines are healthy, while even lower-priced wines are selling as depletions continue. EMERGING MARKETS

California wine’s performance in emerging markets had some success stories in 2015, illustrated by Hong Kong, Mexico and South Korea, where export value grew 41 percent, 7 percent and 5 percent, respectively, notes Eric Pope, the Wine Institute’s regional director for emerging markets. The prospect for ongoing growth of California’s wine exports remains bright, which in turn, is good news for the state’s ports, especially the Port of Oakland, which leads U.S. ports in wine exports. Spokesman Robert Bernardo says, “As of 2015, wines and spirits are our No. 4 most exported commodity.”

Premium Handling As wine exports grow, logistics providers are expanding services and improving handling capabilities to minimize damage and spoilage of wine shipments. Paul Laman, vice president of food and beverage at DMW&H, a warehouse material handling systems integrator, says it’s increasingly common to find warehouses with temperature-controlled rooms for storing wine. The higher-priced wines typically are stored in these rooms, although sometimes

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the supplier specifies the use of temperature-controlled rooms for wines of lesser value. Other warehouse providers or 3PLs offer an entire facility that is temperature-controlled. More attention is being paid to using delivery trucks that are refrigerated, says Laman. Some 3PLs, such as JF Hillebrand, offer products and services designed specifically for transporting wine. Its VinLiner is a protective liner foil system that fits inside dry containers or covers pallets. It reduces the effects of thermal

shocks, extreme temperatures and humidity, all of which prematurely age wine and cause deterioration of the color, taste and smell. VinLiner is made from food-grade materials and is compatible with Food and Drug Administration (FDA) guidelines. Some warehouse management systems (WMSs) also are programmed to optimize wine storage, which is an important consideration for multi-level facilities that are located in warmer climates, adds Laman. For example, in a 20-foothigh facility, it can get much hotter toward the top of the racks where warm air accumulates, which easily could damage wine. Another area of concern that Laman sees is with the quality of the corrugated cardboard used for wine cases. “In general, the industry realized that corrugated has become very poor lately due to cost-cutting measures,” notes Laman. The trend is most evident with European wines, he says. Not only is the corrugated of lesser quality, but

wineries also are removing the inserts inside the case that separates the bottles from one another. “Bottles are rattling against one another as opposed to having a little bit of buffer space,” he says. Add to that the push for more velocity in the warehouses—higher volumes moving at higher speeds—and the problem is compounded. “There is a lot of complaining about the increased breakage with imported wine boxes,” says Laman. There are several factors that can contribute to damaged wine cartons, explains Michael Kuebler, technical director at Smithers Pira. “Lightweighting of cardboard packaging can reduce sidewall rigidity, leading to failures in the cartons. Related to sidewall rigidity is the removal of material from the bottom of the case,” he says. “This can introduce issues, as cylindrical wine bottles concentrate forces more than rectangular packages. If the base of the shipping container isn’t strong enough to withstand these concentrated forces, there is

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| FOOD LOGISTICS

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3PL

continued

a high probability of load stability issues and freight damage. Lightweighting the corrugated cases essentially turns the unit load into columns of cylinders versus bricks, which is what you achieve with strong corrugated cases.” Pallets are also being lightweighted, he says. “The pallet is the base of the unit load. As gaps in the shipping container’s deck boards increase and the deck boards become less stiff, force concentrations and load stability issues grow even more.” Another challenge to unit load stability can happen during rail transportation when a load shifts from side to side. It’s called hunting, says Kuebler. “This occurs when a rail car hunts for the tracks when going over certain areas of track or from rail impacts when rail cars are being linked in the rail yard.” Shippers’ attempts to take advantage of all available space inside a shipping container sometimes result in higher, narrow stacks, which can cause compression or load stability issues, he says. One solution is to apply carefully designed testing protocols to model the effects of rail transport so packaging engineers can optimize their pack designs and loading, advises Kuebler. “Issues, such as blocking and bracing, are critical to supporting various stack configurations within the container and mitigating against the negative effects of horizontal forces.” Indeed, rail is playing a bigger role in wine logistics, says Kuebler. “In general, we have seen a shift of heavier freight items to rail in an effort to reduce transport costs. With heavy items [like wine], shippers will be more likely to max out their weight on truck shipments before they cube out.”

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FOOD LOGISTICS | NOVEMBER/DECEMBER 2016

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TRIED AND TRUE TIPS FOR PROTECTING WINE IN TRANSIT

Transportation and logistics provider Schneider offers best practices to ensure wine shipments are protected during the road or rail journey. Get away from the wall. Product loaded against a trailer or container wall will be the same temperature as outside the trailer within 1 INCH = 24 hours. Conduction (the transfer of heat or cold from one object to another) can wreak havoc on temperature-sensiHEAT/COLD TRANSFER tive cargo. Center-loading freight away from the walls is strongly recommended to eliminate the impact of temperature—and the further away from the walls, the less the 2 INCHES = chance of conduction. Product is loaded tight against the walls in intermodal to HEAT/COLD TRANSFER prevent load shifts. However, rail providers approved the use of dunnage to fill voids and maintain a distance of 4 INCHES = 4 inches between the sidewall and shippers’ products. A variety of options are available, from airbags to foil-backed HEAT/COLD TRANSFER fillers to Styrofoam panels and folding fillers. Some shippers also successfully use old pallets as dunnage. Loading engineers can help shippers create a loading pattern that will protect product from damage and temperature, and keep product moving via the rails safely. Get your product off the floor. Conduction doesn’t just happen against the sidewall; it also comes through the floor. The solution is simple: Ensure that pallets are used to create a barrier between your products and the floor. Use blankets—over and under pallets—to create a protective barrier. Blankets are effective in slowing the transfer of heat or cold, but need to cover the product completely. Recent research simulating temperature changes conducted by the Environmental Protection Agency (EPA), ProTek and Schneider at Texas A&M revealed that blankets or other insulation placed under freight, on the floor of the container, are just as critical as having insulation over and around the pallet. Doing so reduces the loss of heat/cold through floorboards. The research discovered that, contrary to popular belief, heat/cold is not being transferred from the floor to the product when sitting directly on it. Instead, heat/cold is escaping the trailer via the floor and putting the product at risk. Knowing this, retention and maintenance of optimal temperatures is a must and can extend the life of a shipment by two to three days. Loads tested side by side showed a 12-degree difference when floor product was used. Raise or lower the temperature at loading. Blankets slow the transfer of heat, but timing is everything. Capturing heat in the winter and cold in summer means your product will be protected longer and have more time before exceeding the temperature threshold. By starting at the desired temperature, you make the blanket more effective (on the top and bottom of the pallet) and give your product more time before it will exceed its maximum threshold. Monitor the weather. Monitoring the weather is complicated: Not only do you need to monitor temperature and conditions at your points of origin and destination, but you also need to include all of the points in between. Doing so needs to be an additional task on your daily to-do list, and can be done manually via the Internet or by using a service that monitors the temperature throughout the planned transit.

15%

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FL 100+ AWARDS

BY EDITORIAL STAFF

THE 2016 FL100+ Food Logistics’ annual list honors the software and technology providers that ensure a safe, efficient, and reliable global food and beverage supply chain.

E

very year the list of software and technology companies that are providing technology offerings to help food and beverage companies improve productivity and gain efficiency grows longer. Because of this, sifting through the technological offerings to find the right technology, for the right job and at the right price, gets more complicated with each passing year. For 13 years, Food Logistics has done the heavy lifting for our readers by surveying the software and technology companies that specialize in products designed to address the unique challenges of the food and beverage supply chain. The result is the FL100+, a key industry resource listing the companies whose products and services ensure efficient transportation and warehousing, minimize waste, facilitate safe operations and assure regulatory compliance.

2016

36

FOOD LOGISTICS | NOVEMBER/DECEMBER 2016

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• 360data

WEBSITE: www.360data.com YEAR FOUNDED: 1999 NUMBER OF EMPLOYEES: 30 NUMBER OF FOOD/BEV CUSTOMERS: Varies

company evolves enables customers to strengthen their competitive advantage and support their growth.

• AFS Technologies WEBSITE: www.afsi.com

SOLUTION NAME(S): 360data

YEAR FOUNDED: 1985

B2B Integrator, 360data TMS, 360data OMS WORTH NOTING: 360data software-as-a-service (SaaS) solutions are web-based and secure, and thus accessible from anywhere, including mobile applications. The 360data B2B Integrator offers data cleansing and reconciliation, in addition to scalable solutions to integrate internal and external systems. Each implementation is tailored to meet the customer’s needs, to optimize supply chain efficiency and realize savings.

NUMBER OF EMPLOYEES: 439

• 3GTMS

WEBSITE: www.3gtms.com YEAR FOUNDED: 2013 NUMBER OF EMPLOYEES: 55 NUMBER OF FOOD/BEV CUSTOMERS: 6,

plus 3PLs in food and beverage SOLUTION NAME(S): 3G-TM WORTH NOTING: The 3G-TM solution allows customers to configure the solution to their own business needs. 3GTMS believes the ability to configure the transportation management system (TMS) to a company’s specific needs and fine tune it as the

NUMBER OF FOOD/BEV CUSTOMERS: 1,000 SOLUTION NAME(S): AFS ERP, AFS

Warehouse Management System (WMS) , AFS Order Management System, AFS Electronic Proof of Delivery, AFS Retail Execution, AFS G2 Analytics, AFS Gateway WORTH NOTING: AFS Technologies offers single-scan traceability, with GTIN and PTI capabilities, to help with inventory management and product recalls, as well as a mobile version of its software to maximize productivity in the warehouse. AFS recently introduced actionable analytics via an alerts system, which notifies key personnel to urgent business situations that violate guardrails.

• ARMADA

WEBSITE: www.armada.net YEAR FOUNDED: 1890 NUMBER OF EMPLOYEES: 425 NUMBER OF FOOD/BEV CUSTOMERS: 30 SOLUTION NAME(S): Armada Supply

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Other

Yard management

Wireless technology

Warehouse Management System

Transportation Management System

Systems integration

Supply Chain Management

Routing and scheduling

Radio Frequency Identification

Predictive analytics

Mobile technology

Load planning

IoT

Inventory control

Global Trade Management

Freight Payment

FinTech

Enterprise Resource Planning

Demand management

Data synchronization

Customer Relationship Management

Barcode systems

Automated material handling solutions

2016

1 360data • • • • • • • • • • • • • Unit-level inventory/tracking www.360data.com 2 3GTMS • • • • • www.3Gtms.com 3 4SIGHT Supply Chain Group • www.go4sight.com

4

AFS Technologies

5

Ag Connections (Syngenta)

Record keeping • • • •

6

American Lumping Association, Inc.

7

Ames & McBain Inc.

8

ARCTropIC Florida LLC • • •

www.afsi.com

www.agconnections.com

• • •

• •

• •

• •

• • • •

• • • • Real-time analytics, gate-to-gate

www.amesmcbain.com

• • • •

www.arctropic.com

9 ARMADA • www.armada.net

• • •

• •

• • •

tracking, remote payment/processing

• • • Production version, warehouse version • Sustainable/recyclable transportation

• •

10 ArrowStream • • • • • • www.arrowstream.com 11 Avercast LLC www.avercast.com 12 Barcoding Inc. www.barcoding.com

• • • • •

• • • •

• •

13 Bastian Solutions • • • www.BastianSolutions.com

• •

14 Blue Horseshoe • www.bhsolutions.com

• •

15 Blue Link Associates Limited www.BlueLinkERP.com

• • • • • • • • Lot tracking, point of sale, e-commerce

16 Blue Ridge www.blueridgeglobal.com

• • • •

• •

• • •

17 Blue Tree Systems Inc. www.bluetreesystems.com

• • •

• •

• •

• Fleet mgmt, global logistics platform

• • • • • •

• •

18 Boreas Nitrogen Cooling Systems • • Nitrogen transportation refrigeration www.boreassystems.com 19 C3 Solutions • Dock appointment scheduling www.c3solutions.com 20 CAMS Software Corporation • • www.camspro.com

• • •

• Backhaul, salvage/site optimization

21 Cardinal Logistics Management www.cardinalhostedlogistics.com

• •

• •

22 Cargo Chief • • • www.cargochief.com 23 CaseStack • www.casestack.com

• • • • •

• • • • • •

24 Cass Information Systems Inc. www.cassinfo.com 25 Chainalytics • www.chainalytics.com 26 CHEP Container Solutions www.cheppallecon.com

• • •

• • • • •

• • • • • •

• • •

27 Cimcorp Automation Ltd., formerly RMT Robotics • • • • • www.cimcorp.com 28 Cleo • www.cleo.com

Data management •

29 ClimaTrack Inc. • • • Wireless cold chain monitoring www.climatrack.com 30 Cloud Logistics www.gocloudlogistics.com

• • • • • •

31 CompWALK • • • • Temperature monitoring www.compwalk.com 32 Cooltrax • • • www.cooltrax.com 33 Coyote Logistics www.coyote.com

• • • •

• • •

• •

34 CPGToolBox Foodservice contracts • www.cpgtoolbox.com 35 CSB-System Inc. • www.csb.com

• •

36 Deacom Inc. www.deacom.com

• •

• • •

• •

• • • • • • E-commerce, EDI, MRP, serialzation

37 DeltaTrak Inc. • • • Bluetooth Technology, temperature www.deltatrak.com humidity-location monitiring

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FOOD LOGISTICS | NOVEMBER/DECEMBER 2016

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www.foodlogistics.com

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tion Solutions, Armada Global Logistics WORTH NOTING: The biggest challenges facing supply chains are the three Vs of data: volume, viscosity and validity. Armada’s integration platform they say addresses all three. Armada’s platform can handle legacy data in batched formats, as well as real-time data transactions. Additionally, the platform is architected for high availability and redundancy to scale as these attributes increase.

• Bastian Solutions

WEBSITE: www.bastiansolutions.com YEAR FOUNDED: 1952 NUMBER OF EMPLOYEES: 500

menting its products at distribution centers (DCs) across the United States, with they report a 100 percent success rate for deployments.

• CaseStack

WEBSITE: www.casestack.com YEAR FOUNDED: 1999 NUMBER OF EMPLOYEES: About 250 NUMBER OF FOOD/BEV CUSTOMERS: 1,000 SOLUTION NAME(S): CaseStack’s Retailer

Consolidation Program WORTH NOTING: CaseStack’s WMS allows full data security and 24/7 visibility of a suppliers supply chain process-

NUMBER OF FOOD/BEV CUSTOMERS: 300 SOLUTION NAME(S): Exacta, ZiPline Quiet

Conveyer WORTH NOTING: Integrator Bastian Solutions

can custom-fit a blend of solutions for various vertical industries and company sizes, from small and simple applications using conventional equipment to multi-million dollar automated food processing lines. Hardware and software solutions are based on the client’s current and future objectives.

•B  oreas Nitrogen

Cooling Systems

WEBSITE: www.boreassystems.com YEAR FOUNDED: 2013 NUMBER OF EMPLOYEES: 30 NUMBER OF FOOD/BEV CUSTOMERS: 60 SOLUTION NAME(S): Boreas Nitrogen Cooling

System WORTH NOTING: Fueled by liquid nitrogen, the

Boreas Nitrogen Cooling System emits zero emissions during operation. The environmentally friendly system is virtually silent and eliminates the need for a pre-cool period, reduces temperature pull down time, and allows for consistent temperature control throughout the length of the trailer.

•C  AMS Software Corporation

WEBSITE: www.camspro.com YEAR FOUNDED: 1998 NUMBER OF EMPLOYEES: 20

Fresh? How fresh? What if you knew how many hours remained in the quality life of your product at any point in its life, based on its handling? What if your favorite partners and transporters were in cahoots with you to deliver the freshest and best? How much of your spoilage write-off could become profit? Learn more at infratab.com

NUMBER OF FOOD/BEV CUSTOMERS: 20 SOLUTION NAME(S): CAMS Prospero, CAMS

Profiler, CAMS Tour Builder, CAMS MultiSite Director, CAMS Backhaul Optimization, CAMS Salvage Optimization WORTH NOTING: CAMS Software calls itself the leading supplier of dispatch and driver payroll software to the grocery industry. It was designed and developed exclusively for the grocery industry and is not used outside of grocery. Since 1997, CAMS has been implewww.foodlogistics.com

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NOVEMBER/DECEMBER 2016 | FOOD LOGISTICS

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Other

Yard management

Wireless technology

Warehouse Management System

• •

Routing and scheduling

Radio Frequency Identification

Predictive analytics

Mobile technology

Load planning

IoT

Transportation Management System

• •

Systems integration

39 Dematic Corp • www.dematic.com

Supply Chain Management

38 Demand Management Inc. (Demand Solutions) • • www.demandsolutions.com

Inventory control

Global Trade Management

Freight Payment

FinTech

Enterprise Resource Planning

Demand management

Data synchronization

Customer Relationship Management

Barcode systems

Automated material handling solutions

2016

• •

• • •

• •

40 Digi International • • •

• • • • Automated food-temp monitoring

41 DMW&H •

• • • • •

www.digi.com

www.dmwandh.com

• •

42 E2open • www.e2open.com

• • • •

Transportation forecasting, VMI •

43 ecratum • Supplier relation management • www.ecratum.com

44 Elemica • • • www.elemica.com

• •

• • •

• •

45 enVista • • •

• • • •

• • •

• •

46 Esipo Technology

• • • •

• •

www.envistacorp.com www.esipotech.com

• •

• •

47 Esker Inc. • • www.esker.com

48 ExtenData • • • • www.extendata.com

49 Financial Transmission Network Inc. (FTNI) • • www.ftni.com

50 Fleet Advantage www.fleetadvantage.com

• • Proof of delivery, delivery mgmt system

Payment processing software • • •

• • • • Equipment financing, fleet consulting

51 FlexStr8 Inc. Cold Chain Supply www.flexstr8.us

52 FoodLogiQ • • • • • •

www.foodlogiq.com

53 FourKites • • • www.fourkites.com

• • •

• • Real-time tracking

54 FreightCenter Inc. • • • • • www.freightcenter.com

55 GENCO, A FedEx Company • www.genco.com

• •

• • • •

• •

• •

• •

• •

• E-commerce, EDI, labor planning, 4PL

56 GreenMile LLC • • • www.greenmile.com

57 HighJump •

• • • • •

58 Honeywell •

• • • • •

www.highjump.com

www.honeywellaidc.com

59 ICIX

www.icix.com

• •

• •

• •

Supply chain risk management • • • • •

60 InfinityQS International Inc. Enterprise quality mgmt software • www.infinityqs.com 61 Infratab Inc. • •

• • •

62 Inmar • •

• • •

www.infratab.com www.inmar.com

63 Interlink Technologies www.thinkinterlink.com

• • •

• •

64 Iptor Supply Chain Systems

(formerly International Business Systems)

• •

• • •

• •

• • •

• •

• • •

www.iptor.com

65 iTradeNetwork • •

• • •

• •

• • •

• • Supply chain traceability, quality control

66 JDA Software

www.iTradeNetwork.com www.jda.com

67 JLT Mobile Computers www.jltmobile.com

• •

• • •

• • • •

68 Johanson Transportation Service • • • www.johansontrans.com

• • Allocation, fulfillment, worforce mgmt • •

• • • • • EDI order processing, API

69 Keelvar Systems Limited Strategic sourcing • www.keelvar.com

70 LANSA Inc. www.datasyncdirect.com

• • •

71 LeanLogistics • •

• • •

• •

72 LINKFRESH Inc.

• • •

• • • • •

www.leanlogistics.com www.linkfresh.com

• •

73 Load Delivered www.loaddelivered.com

40

FOOD LOGISTICS | NOVEMBER/DECEMBER 2016

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• •

• •

• Quality control/traceability solutions

www.foodlogistics.com

12/8/16 8:49 AM


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74 Loftware • www.loftware.com

Other

Yard management

Wireless technology

Warehouse Management System

Transportation Management System

Systems integration

Supply Chain Management

Routing and scheduling

Radio Frequency Identification

Predictive analytics

Mobile technology

Load planning

IoT

Inventory control

Global Trade Management

Freight Payment

FinTech

Enterprise Resource Planning

Demand management

Data synchronization

Customer Relationship Management

Barcode systems

Automated material handling solutions

2016

Barcode labeling software • •

75 Logility www.logility.com

• • • • •

76 Lucas Systems Inc. • • • Mobile work execution, voice-directed www.lucasware.com

77 Made4net

• • • •

www.made4net.us

78 Manhattan Associates www.manh.com

79

• •

• • • •

• •

• •

MercuryGate International Inc.

www.mercurygate.com

• • • •

80 Microlistics WMS •

• • •

81 Minotaur Software Ltd. • www.minotaursoftware.com

• • •

82 NCR Corporation

• •

83 NECS Inc.

• • • • • • •

84 Netoria Inc.

• • •

www.microlistics.com

www.ncr.com

www.necs.com

www.netoria.com

• •

• •

• •

• • • •

• • • • •

85 Next Generation Logistics Inc. www.nextgeneration.com

• •

• •

• • • •

• •

• • • •

• •

• Lot tracking, USDA quality control/hold

• • • Quality assurance, food safety mgmt •

• •

• BI, proof of delivery, pricing mgmt

• •

86 NiceLabel • • www.nicelabel.com

87 Nulogy Corporation www.nulogy.com

88 Omnitracs LLC

• •

• •

• • •

www.omnitracs.com

• •

• • •

• • • •

• • Omnitracs roadnet

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FLOG1116_36-53_FL100 AW RG CM RG.indd 42

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es. Its web-based platform gives each customer the ability to place orders, track shipments, monitor SKU levels, specify item and order attributes, dictate inventory levels, and forecast future needs, ensuring every customers’ supply chain distribution network is handled efficiently and in a secure environment.

•D  emand

Management Inc. (Demand Solutions)

SOLUTION NAME(S): FoodLogiQ Connect WORTH NOTING: FoodLogiQ tracks and

analyzes the complex food supply chain on an interactive supplier dashboard, so it is able to pinpoint the root cause of an outbreak or quality issue, and trace tainted food’s exact location in real time.

• I nfratab Inc.

WEBSITE: www.infratab.com YEAR FOUNDED: 2002 NUMBER OF EMPLOYEES: 25 NUMBER OF FOOD/BEV CUSTOMERS: 50 SOLUTION NAME(S): Infratab Freshtime WORTH NOTING: Infratab solutions

is able to quickly customize their tags, software and reports to the customers’ current processes, while providing insights as close to real

WEBSITE: www.demandsolutions.com YEAR FOUNDED: 1985 NUMBER OF EMPLOYEES: 34 NUMBER OF FOOD/BEV CUSTOMERS: 153 SOLUTION NAME(S): Demand Solutions WORTH NOTING: Demand Solutions

is one of the first software vendors in the supply chain management market to offer a cloud supply chain management solution with complete, end-to-end planning capabilities. Customers do not need to invest in hardware or software, and IT support requirements are greatly reduced. Maintenance and installation of updates are handled by Demand Solutions.

•E  lemica

WEBSITE: www.elemica.com YEAR FOUNDED: 2000 NUMBER OF EMPLOYEES: 100 NUMBER OF FOOD/BEV CUSTOMERS: 15 SOLUTION NAME(S): Elemica Quick-

Link, Elemica SmartLink WORTH NOTING: Elemica’s SmartLink applications include solutions for customer, logistics, sourcing and supplier management. Elemica has identified and addressed specific areas traditionally fraught with double entry of data, phone calls and faxes, and email conversations, replacing them with capabilities proven to remove administrative effort and lower transportation costs.

•F  oodLogiQ

WEBSITE: www.foodlogiq.com YEAR FOUNDED: 2006 NUMBER OF EMPLOYEES: 11-50 NUMBER OF FOOD/BEV CUSTOMERS: 3,500

www.foodlogistics.com

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NOVEMBER/DECEMBER 2016

| FOOD LOGISTICS

43

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Other

Yard management

Wireless technology

Warehouse Management System

Transportation Management System

Systems integration

Supply Chain Management

Routing and scheduling

Radio Frequency Identification

Predictive analytics

Mobile technology

Load planning

IoT

Inventory control

Global Trade Management

Freight Payment

FinTech

Enterprise Resource Planning

Demand management

Data synchronization

Customer Relationship Management

Barcode systems

Automated material handling solutions

2016

89 Open Sky Group •

• • Labor manamgement systems

90 Optricity Corporation

Slotting optimization software •

www.openskygroup.com www.optricity.com

• • • • •

91 ORBCOMM Inc. •

• • • •

• • • • • •

www.orbcomm.com

92 Outperform www.outperformplanning.com

93 PakSense • • • www.paksense.com

• •

• • • • •

• Cold chain temp monitoring solutions

94 Paragon Software Systems • • Last-mile delivery www.paragontruckrouting.com 95 PeopleNet • • www.poeplenetonline.com

• • • • •

96 PINC • • • www.pinc.com

97 Plug Power Inc. Lift truck power solution www.plugpower.com

98 Positioning Solutions International Technics Ltd., PSI Technics Ltd. • • www.psi-technics.com 99 Precima Inc. www.precima.com

Price/assortment optimization • • • •

100 ProCat Distribution Technologies www.procatdt.com

• • • • • •

101 Procuro Inc.

• • • • •

www.procuro.com

102 Quintiq www.quintiq.com

103 RedLine Solutions www.redlinesolutions.com

• • •

• • Digital FSMA forms, bluetooth probes

• Multimodal support, optimization

• • • • • • •

104 ReposiTrak •

105 RizePoint •

• • •

www.repositrak.com www.rizepoint.com

106 Ruan Transportation Management • Systems

• • •

• •

Compliance management, traceability • •

• • •

• •

• • • Active temperature monitoring • • •

• •

www.ruan.com

107 Rubicon Global

www.rubiconglobal.com

Waste-stream management • • • •

108 SafetyChain Software Inc. • • • • • Food Safety/quality software, GFSI www.safetychain.com

time as possible when goods are handed over. Infratab solutions also offer smart data that compares growers, transporters and routes, knowing how much freshness was used in each step and the number of consumer days left.

es. All logistics solutions fully integrate with the iTradeNetwork OMS to ensure efficiency and to provide a holistic view across all transactions and trading partner relationships.

• i TradeNetwork

• J ohanson

WEBSITE: www.itradenetwork.com

• I nterlink

YEAR FOUNDED: 1999

Technologies

NUMBER OF EMPLOYEES: 305

Transportation Service(JTS) WEBSITE: www.johansontrans.com

WEBSITE: www.thinkinterlink.com

NUMBER OF FOOD/BEV CUSTOMERS: 10,000

YEAR FOUNDED: 1971

YEAR FOUNDED: 1986

SOLUTION NAME(S): iTradeNetwork

NUMBER OF EMPLOYEES: 90

NUMBER OF EMPLOYEES: N/A

Order Management System (OMS) WORTH NOTING: iTradeNetwork’s logistics solutions leverage a foundation of synchronized data to help reduce the total costs of transportation. Configured as a many-to-many network, iTradeNetwork’s logistics solutions span the entire planning, procurement and execution process-

NUMBER OF FOOD/BEV CUSTOMERS: 150

NUMBER OF FOOD/BEV CUSTOMERS: N/A SOLUTION NAME(S): Warehouse-LINK WORTH NOTING: Warehouse-LINK

WMS supports specific needs in the food industry, including multiple date tracking; first in, first out; detailed audit trails; environmental controls; recall management; efficient space

44

utilization; location management; cycle counting; and just-in-time processes. Interlink believes its solutions are all-inclusive and implement 100 percent of the functionality.

FOOD LOGISTICS | NOVEMBER/DECEMBER 2016

FLOG1116_36-53_FL100 AW RG CM RG.indd 44

SOLUTION NAME(S): FreightOptixx

TMS WORTH NOTING: JTS’s cloud-based

FreightOptixx TMS gives users access to details in their supply chain data in one online location, with complete visibility to all their freight communications from start www.foodlogistics.com

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109 Safeway Management Group Inc. www.smgsafety.com www.scatech.com

www.seagullscientific.com

• • • •

Other

Yard management

Wireless technology

Warehouse Management System

Transportation Management System

Systems integration

Supply Chain Management

Routing and scheduling

Radio Frequency Identification

Predictive analytics

Mobile technology

Load planning

IoT

Inventory control

Global Trade Management

Freight Payment

FinTech

Enterprise Resource Planning

• • • •

110 SCA Technologies • • 111 Seagull Scientific

Demand management

Data synchronization

Customer Relationship Management

Barcode systems

Automated material handling solutions

2016

• Safety management software

Logistics/sourcing optimization, S&OP •

112 Sensitech Inc. • • • www.sensitech.com 113 Silvon Software Inc. www.silvon.com

Business intelligence/performance mgt • •

114 SkyBitz Enterprise Fleets www.skybitz.com/EnterpriseFleets

• •

• • • •

115 Sling • • www.getsling.com

116 SmartDrive Inc. • • • Video analytics platform www.smartdrive.net

117 SmartTrace Pty Ltd • • www.smarttrace.com.au

• • •

• • Cold chain real-time monitoring

118 Sologlobe •

• • • • • • Manufacturing execution system

119 SPS Commerce

• •

www.sologlobe.com

www.spscommerce.com

• • •

120 SSI Schaefer Systems International Inc. • • • www.ssi-schaefer.us 121 Steelwedge www.steelwedge.com

122 Stratix Corporation www.stratixcorp.com

www.streamlineERP.com

124 Symphony GOLD 125 SYSPRO • www.syspro.com

• • •

• •

• • • •

• •

• • •

123 Streamline Inc. • • www.symphonygold.com

• •

• • •

• •

• •

• • •

• • •

• • •

• • •

• • Merchandise/category management

• • •

126 System Logistics Corp. • • • www.systemlogistics.com 127 TAKE Supply Chain

(a division of TAKE Solutions Ltd.) • •

www.takesupplychain.com

• • •

• • • •

• GFSI and quality control

128 Tamlin Software •

• •

129 Technology Group International • www.tgiltd.com

• •

• • •

www.tamlinsoftware.com

to finish. Users are able to easily track their shipments, request instant spot rate quotes from multiple carriers displayed on one screen for comparison, create and change freight orders and more.

•L  eanLogistics

WEBSITE: www.leanlogistics.com YEAR FOUNDED: 1999 NUMBER OF EMPLOYEES: 225 NUMBER OF FOOD/BEV CUSTOMERS: 52

46

• • •

• • •

• •

• •

customers use the data in the transportation network to analyze performance against both organizational goals and industry norms. The benchmarking information comes from the ecosystem created by a SaaS-based environment, which becomes more powerful as new participants join the network.

•N  ECS Inc.

WEBSITE: www.necs.com

• •

new dashboards, enhanced search screens, ribbon menus and more allow customers to do their job faster while providing new visual insights to complex data. NECS says they are continuing to innovate with both desktop and mobile solutions and currently are working on dramatic new software modules to be released in 2017.

•N  iceLabel

SOLUTION NAME(S): LeanTMS

YEAR FOUNDED: 1987

WORTH NOTING: Connecting shippers,

NUMBER OF EMPLOYEES: 30

YEAR FOUNDED: 1993

carriers, supplies and third parties has been a challenge for most supply chains, but LeanLogistics believes with its transportation system, the connection of those parties can be established instantly. LeanTMS

NUMBER OF FOOD/BEV CUSTOMERS: 1,500

NUMBER OF EMPLOYEES: 110

SOLUTION NAME(S): entrée

NUMBER OF FOOD/BEV CUSTOMERS: 1,000+

WORTH NOTING: The latest version

SOLUTION NAME(S): NiceLabel Label

of NECS’s popular entrée software for food distributors offers power, speed and ease of use. The

Management System (LMS) WORTH NOTING: NiceLabel’s global innovation for SAP enterprise

FOOD LOGISTICS | NOVEMBER/DECEMBER 2016

FLOG1116_36-53_FL100 AW RG CM RG.indd 46

WEBSITE: www.nicelabel.com

www.foodlogistics.com

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130 TEKLYNX International www.teklynx.com

Other

Yard management

Wireless technology

• • •

131 The Raymond Corporation • • www.raymondcorp.com

• • • • • •

132 TMC, a division of C.H. Robinson www.mytmc.com 133 TMW Systems Inc. www.tmwsystems.com

• • • •

• •

• •

134 topVox Corporation • • • www.top-vox.com

135 TraceGains Inc. www.tracegains.com

Warehouse Management System

Transportation Management System

Systems integration

Supply Chain Management

Routing and scheduling

Radio Frequency Identification

Predictive analytics

Mobile technology

Load planning

IoT

Inventory control

Global Trade Management

Freight Payment

FinTech

Enterprise Resource Planning

Demand management

Data synchronization

Customer Relationship Management

Barcode systems

Automated material handling solutions

2016

Quality/supply chain management • • •

136 TranSolutions Inc. Freight claim management

www.transolutionsinc.com

137 Transplace www.transplace.com

• • •

• • •

• •

138 Transportation Insight • • • • • • www.transportationinsight.com

• •

139 Transportation Warehouse Optimization • • • • www.warehouseoptimization.com 140 TraQtion •

• • • •

141 TSO Mobile

• • • •

www.TraQtion.com

www.TSOmobile.com

Quality/compliance/audit management •

142 TZA Labor management www.tza.com

143 UltraShipTMS • •

www.ultrashiptms.com

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FOOD LOGISTICS | NOVEMBER/DECEMBER 2016

FLOG1116_36-53_FL100 AW RG CM RG.indd 48

www.foodlogistics.com

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resource planning (ERP) users is the so-called SAP ABAP package—a native, interoperable technology inside SAP that allows an easy connection from any of the company’s existing SAP solutions. Through its soultion, NiceLabel says companies can streamline their entire label processes, increase consistency and accuracy along their shop-floors, reduce costs enterprise-wide, and save valuable time.

•O  mnitracs LLC

WEBSITE: www.omnitracs.com YEAR FOUNDED: 1988 NUMBER OF EMPLOYEES: 1,000 NUMBER OF FOOD/BEV CUSTOMERS: 1,999 SOLUTION NAME(S): Omnitracs Roadnet WORTH NOTING: Omnitracs was the

first to create solutions for connecting delivery asset and driver to the fleet manager and back office applications. Their data and analytics teams heavily invest in research and development to cut costs, improve performance, enhance driver satisfaction and productivity, and create a strong network of technologically savvy fleets armed for competing for the best customers and growing their businesses.

•O  ptricity

Corporation

WEBSITE: www.optricity.com YEAR FOUNDED: 2005

www.foodlogistics.com

FLOG1116_36-53_FL100 AW RG CM RG.indd 49

NUMBER OF EMPLOYEES: 15 NUMBER OF FOOD/BEV CUSTOMERS: 25 SOLUTION NAME(S): OptiSlot DC, Slot-

ting Optimization Software WORTH NOTING: Holding patented and patent-pending optimization processes, Optricity offers advanced intellectual capital and innovation, with the ability to modify the math to fit the problem. The underpinning mathematics of OptiSlot are based on a high degree of research, while the software design promotes use in real environments.

receiving, cycle counting, WMS, order picking, truck loading and delivery. PickRight’s simplicity, combined with a variety of sophisticated features, makes it easy to implement, easy to learn and easy to use.

•P  roCat

Distribution Technologies

WEBSITE: www.procatdt.com YEAR FOUNDED: 2001 NUMBER OF EMPLOYEES: 18 NUMBER OF FOOD/BEV CUSTOMERS: 175 SOLUTION NAME(S): PickRight,

ReceiveRight, LoadRight, ShipRight, ReturnRight, CountRight, StockRight, CodeRight, TaxRight WORTH NOTING: The ProCat solutions suite offers total operational control, enhancing every aspect of the distribution center from NOVEMBER/DECEMBER 2016

| FOOD LOGISTICS

49

12/8/16 8:49 AM


FL100+

•S  afeway

continued

Management Group

WEBSITE: www.smgsafety.com

•Q  uintiq 2016

YEAR FOUNDED: 2004

•S  kyBitz

WEBSITE: www.quintiq.com

NUMBER OF EMPLOYEES: 14

YEAR FOUNDED: 1997

NUMBER OF FOOD/BEV CUSTOMERS: 55

NUMBER OF EMPLOYEES: 1,097

SOLUTION NAME(S): Quality Management

WEBSITE: www.skybitz.com/enterprisefleets

NUMBER OF FOOD/BEV CUSTOMERS: 10

System, Food Safety Systems, Awareness Review Training, Alcohol and Controlled Substance Management, Health and Safety Software, Transportation Safety Systems, Electronic File Maintenance, Document Control WORTH NOTING: Safeway Management Group offers comprehensive and effective process management software for health and safety, quality control, fleet safety file maintenance and training concerns. Safeway solutions can help a company establish effective programs, utilizing tools for incident prevention, continued improvement, trending and evaluating performance.

YEAR FOUNDED: 2002

SOLUTION NAME(S): Quintiq Solution WORTH NOTING: Quintiq’s platform is

unique in that it is configured to optimize against the different constraints that may exist within each organization. The platform has the capability to plan from the strategic level down to day-of-execution operations. Plans can be adjusted in real time and optimized dynamically as changes occur.

•S  afetyChain

Software Inc.

WEBSITE: www.safetychain.com YEAR FOUNDED: 2011 NUMBER OF EMPLOYEES: 100 NUMBER OF FOOD/BEV CUSTOMERS: 100 SOLUTION NAME(S): SafetyChain FSQA

Management Platform, SafetyChain Supplier Compliance, SafetyChain Food Safety Management, SafetyChain Food Quality Management, SafetyChain Regulatory/GFSI Compliance & Audit Management, SafetyChain Mobile WORTH NOTING: SafetyChain offers a comprehensive food, safety and quality assurance (FSQA) management platform designed to help food and beverage companies more effectively manage and continuously improve their FSQA programs. Programs of interest consist of supplier compliance and vendor management, food safety program execution, quality assurance oversight, regulatory and non-regulatory compliance, and inquiry/audit management.

NUMBER OF FOOD/BEV CUSTOMERS: 2 SOLUTION NAME(S): SkyBitz Falcon

YEAR FOUNDED: 1985

• S  martDrive Inc.

WEBSITE: www.seagullscientific.com NUMBER OF EMPLOYEES: 150

WEBSITE: www.smartdrive.net

NUMBER OF FOOD/BEV CUSTOMERS: 4,000

YEAR FOUNDED: 2004

SOLUTION NAME(S): BarTender by

NUMBER OF EMPLOYEES: 630

Seagull Scientific WORTH NOTING: Seagull Scientfic was awarded Frost & Sullivan’s 2016 Best Practices Award for its food safety software barcode labeling system, BarTender. The award is presented to companies who have encouraged significant growth in their industries, identified emerging trends before they became standard, and created technologies to catalyze and transform industries.

NUMBER OF FOOD AND BEVERAGE

• S ensitech

WEBSITE: www.sensitech.com YEAR FOUNDED: 1990

SOLUTION NAME(S): TempTale, ColdStream WORTH NOTING: TempTale GEO

provides real-time visibility for temperature and location to support both logistics and quality. Sensitech believes its software gives an advance indication to all supply chain partners where product is located and when it will arrive, as well as reducing risk by enabling active

NUMBER OF EMPLOYEES: 50

•S  eagull Scientific

NUMBER OF FOOD/BEV CUSTOMERS: 25,000

FOOD LOGISTICS | NOVEMBER/DECEMBER 2016

Enterprise Fleets

GXT3000, SkyBitz Gemini GLS400, SkyBitz Cargo Sensors, SkyBitz InSight WORTH NOTING: SkyBitz as a Service (SBS) is a simple monthly subscription designed to provide customers comprehensive trailer and asset information management. By eliminating the upfront investment requirement, SkyBitz believes the SBS platform removes the barrier to entry for asset management purchases and provides a quicker return on investment (ROI).

NUMBER OF EMPLOYEES: 950

50

intervention to address correctable temperature deviations before they impact product quality.

CUSTOMERS: 26 SOLUTION NAMES: SmartDrive

SmartIQ Transportation Intelligence Suite WORTH NOTING: SmartDrive Systems is a leader in driving performance solutions that reduce collisions and improve fuel efficiency within the transportation and logistics industry. The company provides innovative video-based safety programs to customers across a variety of sectors, including food and beverage. SmartDrive developed the SmartIQ Suite, a solution that leverages SmartDrive’s video analytics platform to link a driver’s behavioral data to an enormous amount of vehicle system data. This solution helps fleets harness Big Data from a multitude of disparate systems to create breakthrough, actionable insights, The suite offers customizable and actionable operational metrics, management KPIs, interactive visualizations for advanced

www.foodlogistics.com


analysis, reports and dashboards for managers, and the ability to export and integrate data into an existing intelligence stack.

•S  SI Schaefer Systems

operators the ability to toggle between lift truck operations information and a height-tilt indicator, giving users a more complete visualization of existing lift truck data to run better and manage smarter.

WEBSITE: www.ssi-schaefer.us

• Top Vox

International Inc.

YEAR FOUNDED: 1937

WEBSITE: www.top-vox.com

NUMBER OF EMPLOYEES: 10,000

YEAR FOUNDED: 2006

NUMBER OF FOOD/BEV CUSTOMERS: 100

NUMBER OF EMPLOYEES: 420

SOLUTION NAME(S): WAMAS,

NUMBER OF FOOD/BEV CUSTOMERS: 80+

SOLUTION NAME(S): Voxter, Vox-

ter-Scan, Voice Wear, BlueMaster, LYDIA WORTH NOTING: Top Vox’s Lydia is a speech-based system that frees the user from unnecessary work steps, such as the handling of picking lists of barcode scanners. Written instructions on paper or screen are replaced by spoken work directions via a headset.

WAMASGo! WORTH NOTING: The SSI warehouse

management and material flow system (WAMAS) solution offers an easy integration to existing systems and turns warehouses into waveless fulfillment engines in both manual and automated environments.

• Technology Group International

WEBSITE: www.tgiltd.com YEAR FOUNDED: 1990 NUMBER OF EMPLOYEES: 30 NUMBER OF FOOD/BEV CUSTOMERS: 250 SOLUTION NAME(S): Enterprise 21 ERP WORTH NOTING: The Enterprise

21 ERP system is developed, sold, implemented and supported directly by TGI. No aspect is outsourced to third-party companies or overseas, providing customers with a single source for all software, implementation, programming and technical support needs.

•T  he Raymond Corporation

WEBSITE: www.raymondcorp.com YEAR FOUNDED: 1922 NUMBER OF EMPLOYEES: 2,000+ NUMBER OF FOOD/BEV CUSTOMERS: N/A SOLUTION NAME(S): iWAREHOUSE

Essential, iWAREHOUSE Enterprise, iTRACK, iWAREHOUSE GATEWAY, iWAREHOUSE Evolution WORTH NOTING: iWAREHOUSE effectively streamlines multiple display hardware on lift trucks into one unit, thereby increasing operator visibility and minimizing the number of instruments with which the operator needs to interact. The new display offers

www.foodlogistics.com

NOVEMBER/DECEMBER 2016

| FOOD LOGISTICS

51


Other

Yard management

Wireless technology

Warehouse Management System

Transportation Management System

Systems integration

Supply Chain Management

Routing and scheduling

Radio Frequency Identification

Predictive analytics

Mobile technology

Load planning

IoT

Inventory control

Global Trade Management

Freight Payment

FinTech

Enterprise Resource Planning

Demand management

Data synchronization

Customer Relationship Management

Barcode systems

Automated material handling solutions

2016

144 UNEX Manufacturing • • • • www.unex.com

145 VAI • • • • • • •

• • •

146 Veridian Solutions •

www.vai.net

www.veridiansol.com

147 VL Virtual Logistics Inc.

• • Automated testing, configuration mgmt

• •

www.virtuallogistics.ca

148 Voxware • • • www.voxware.com

149 Werner Enterprises/Werner Logistics www.werner.com

• •

• • • •

• •

• •

Voice management, picking, analytics • •

• • •

• •

150 Westfalia Technologies Inc. • • • www.westfaliausa.com

151 Wolters Kluwer Transport Services www.transwide.com

• • •

• Supplier relationship management

152 WorkWave

• • • •

153 xTuple •

www.workwave.com www.xtuple.com

• •

• • •

• • •

• • •

154 Yale Materials Handling Corporation • • • • • www.yale.com/north-america/en-us 155 Zethcon Corporation www.zethcom.com

• • •

•T  ransplace

WEBSITE: www.transplace.com YEAR FOUNDED: 2000 NUMBER OF EMPLOYEES: 1,550 NUMBER OF FOOD/BEV CUSTOMERS: 15 SOLUTION NAME(S): Transplace TMS WORTH NOTING: Transplace provides

a variety of offerings and flexible solutions based on each customer’s unique requirements, desires and strategies. Transplace’s core verticals, include consumer packaged goods (CPG), retail, manufacturing, packaging and chemical. Transplace’s other business units also provide value to customers who use the technology to operationalize logistics networks.

•T  ransportation Insight

WEBSITE: www.transportationinsight.com YEAR FOUNDED: 1999 NUMBER OF EMPLOYEES: 417 NUMBER OF FOOD/BEV CUSTOMERS: 32 SOLUTION NAME(S): Technology-Driv-

en, Multi-Modal End-to-End Supply Chain Solutions WORTH NOTING: Transportation Insight is one of the largest fullservice, multi-modal 3PLs in North America, delivering custom logistics solutions to more than 1,000 corporate clients. Its service and technolo-

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• •

gy offerings provide carrier sourcing, logistics-related cost reduction, parcel shipping solutions, a web-based TMS, freight bill audit and payment services, and supply chain analytics and business intelligence reporting.

•U  ltraShip TMS

WEBSITE: www.ultrashiptms.com YEAR FOUNDED: 2001

NUMBER OF EMPLOYEES: 58 NUMBER OF FOOD/BEV CUSTOMERS: 8 SOLUTION NAME(S): UltraShip TMS,

LoadFusion Optimizer, UltraYMS WORTH NOTING: Ultra’s development, training and support is geared toward continuous improvement in the service of high volume shippers, exclusively. Ultra acts as an extension of customers’ logistics and IT departments, permitting the customer far greater influence over the product roadmap. UltraShipTMS offers provider-delivered training, ensuring success through superior system adoption and utilization.

•V  AI

WEBSITE: www.vai.net YEAR FOUNDED: 1978 NUMBER OF EMPLOYEES: 163 NUMBER OF FOOD/BEV CUSTOMERS: 45

• • •

SOLUTION NAME(S): S2KEnterprise For

Food WORTH NOTING: An independent case

study conducted for Imperial Bag & Paper Co. LLC, a large, independent distributor of food service disposables and janitorial supplies, found that Imperial Bag & Paper experienced 100 percent ROI after deploying VAI S2K Enterprise Management Software, with a complete payback in 1.1 years and an average annual benefit of $1,194,353.

•W  olters Kluwer Transport

WEBSITE: www.transwide.com YEAR FOUNDED: 2000 NUMBER OF EMPLOYEES: 250 NUMBER OF FOOD/BEV CUSTOMERS: 38 SOLUTION NAME(S): Transwide WORTH NOTING: Transwide’s modular

solution plan and SaaS “cloud” delivery/business models are designed for shippers who are looking to take advantage of the benefits of automating their transportation and logistics operations and processes. The company offers a “pay as you go” option, which enables customers to organize a TMS solution at a speed that will not overtax their logistics, operational or IT resources. www.foodlogistics.com

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SUSTAINABILITY

BY RAJIV SAXENA

THE CONVENIENT TRUTH ABOUT SUSTAINABILITY T

Building sustainability into the supply chain is a complex, but worthwhile endeavor that saves money as it greens operations.

en years after a certain well-known documentary’s release, global warming continues to be “An Inconvenient Truth” for the supply chain profession, which is responsible for a substantial portion of the world’s carbon footprint. As a result, terms like sustainability and environmentally friendly are finding their way into many logistics professionals’ job descriptions. The bad news is this adds another layer of complexity to what was already a complex endeavor. The good news is it could ultimately lead to some choices that are as good for a business’ bottom line as they are for the environment. Consider the following typical global supply chain decision points. Each one clearly has a greener response, as well as a more cost-ef-

Trains are 15% more economical

AND

66% more sustainable than trucks.

fective one. More often than not, they are one and the same.

Determine the Transportation Mode

If businesses were to conduct a head-to-head comparison of air versus ocean shipments from Hong Kong to the Midwest, they would discover the ocean option has a 96 percent smaller carbon footprint, even after accounting for the use of trucks during the land portion of the ocean moves. If those same businesses performed subsequent analyses using different locations, they would discover those results aren’t unusual because, according to data from the Network for Transport and the Environment, air shipments emit approximately 35 times more carbon dioxide than ocean container shipments. Ocean cargo also is eight to 10 times less expensive. It’s a similar story on the land side in which trains are both more economical (by about 15 percent) and sustainable (by approximately 66 percent) than trucks.

Coordinate Overseas Inbound Shipping It’s easy to understand why many companies opt

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to let their individual overseas suppliers coordinate shipments to their international processing plants or distribution centers (DCs). However, it’s also easy to see why the alternative to this hands-off practice—a company handling these shipments on its own or delegating them to an international 3PL—might be better for everything from finances to carbon emissions. For one thing, the company or its 3PL probably has access to better freight management tools than local suppliers, a fact that should lead to considerably more streamlined and sustainable individual delivery routes. And mixing a processing facility with numerous trucks traveling to and from various suppliers’ locations is an instant recipe for burning more fossil fuels and incurring higher shipping costs. By taking greater responsibility for these inbound shipments, a company or its 3PL can more holistically analyze and optimize shipping costs, and take advantage of considerably more economical and sustainable practices.

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SUSTAINABILITY

continued

OCEAN TRANSPORT HAS A

96% SMALLER

CARBON FOOTPRINT AND IS

8 TO 10X LESS EXPENSIVE THAN AIR SHIPMENTS. foot containers for all of its ocean shipments, it will use 33 percent fewer containers than it would if it shipped its goods via 40-foot containers, because it’s generally possible to fit the contents of three 40-footers into two 53-footers. Fewer containers equal less transportation space, which translates into a smaller number of moves and, ultimately, a smaller carbon footprint. Not surprisingly, they also equal smaller shipping expenses. Don’t underestimate the dual advantages of proper cubing either. Among other things, the contents of well-cubed containers are less likely to shift and get damaged in transit. As a result, they require less protective packaging, and allow a company to reduce expenses and its contributions to landfills. A fresh look at container or trailer cube utilization also could result in a company being able to fit many more pallets, boxes or cases onto each of its outgoing loads— and reduce the number of required transits by many trailer shipments.

Rajiv Saxena is head of supply chain solutions at APL Logistics, one of the world’s largest global supply chain management providers.

56

Direct Shipping? Yes or No? Few things are less green or more financially wasteful than unnecessary transits, and some port-to-DC shipments fit that description to a T. Let’s say, for example, that a

FOOD LOGISTICS | NOVEMBER/DECEMBER 2016

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a result, it’s almost always a good and green idea to conduct frequent and thorough warehouse network optimizations. However, many other aspects of these facilities also are ripe with cost- and carbon footprint-cutting possibility. For example, by making a switch from halide or fluorescent to fixtures like T5 or T8, individual facilities might trim light-related electricity use by 70 percent and achieve six-figure savings. And by employing product-slotting programs, a company could help the forklifts within its facility travel considerably shorter distances, which goes a long way toward reducing both energy and production costs. Even something as simple as the positioning of key components and work areas within a warehouse could lead to huge wins.

company’s internationally sourced goods will arrive in the United States via the Port of Long Beach, but the company’s nearest warehouses are located in the Midwest. If the company is using a traditional distribution configuration, the Other Considerations goods destined for the company’s Obviously, these are not the only West Coast customers or stores will considerations a company should wind up making two superfluous have as it works toward greener trips, while burning nearly 25,000 and leaner supply chains. kilowatts, proThere is no If a company uses 53-foot containers issue or process ducing more for its ocean shipments, it will use than 6,400 that should 33 percent fewer containers be exempt kilograms of than it would if it shipped its goods carbon dioxide from scrutiny via 40-foot containers. emissions because all of and incurring them have the thousands of dollars worth of trans- potential to make a difference. portation expense along the way. Like the considerations above, some of the solutions that are The Right DCs uncovered will be obvious win-wins, and DC Practices while some won’t, meaning a comAlthough transportation is pany ultimately will have to make responsible for the lion’s share of some tough calls or compromises. a company’s supply chain carbon And some will probably fall in that footprint and cost, the DCs a comgray area somewhere in between. pany operates can be either a huge Realistically speaking, though, help or a hindrance. the food logistics industry may alThe location of these facilities is, ways have one of the world’s largest of course, the most important concarbon footprints because compasideration because their proximity nies can’t move products from Point to a company’s key demand and A to B without some form of transsupply points will impact everyportation. However, with a little thing from the miles the company’s work and a lot of cooperation, there carriers have to travel to the freight is no reason why we can’t green the bills associated with the same. As path along the way. www.foodlogistics.com

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SECTOR REPORTS

WAREHOUSING

BY MARY SHACKLETT

TRACK & TRACE TECHNOLOGY F BY MARY SHACKLETT

The food industry is increasingly reliant on RFID and barcode technologies to meet stringent food safety regulations and trackand-trace requirements, while improving logistics performance.

ood safety regulations, tracking and tracing, and improved visibility and performance in logistics are all important to the food supply chain. At the same time, costs for radio frequency identification (RFID) devices and barcode technology are dropping. Together, these factors are coalescing to generate an increase in RFID and barcode technology adoption in food and beverage (F&B) companies.

Technology Benefits F&B Industry RFID started in the retail industry around 2001, but the F&B industry—a historically slow adopter—started moving into these technologies much later. “At small food companies, we still see a lot of manual processes that are used to track food and execute logistics,” says Elizabeth Sinclair, manager of verticals marketing at Seagull Scientific, a barcode and labeling provider. “Unfortunately, today’s food supply chains are no longer a linear progression of events and are far too complex to track manually. “For instance, you might receive a shipment of fish at your processing plant that is commingled from many different sources or you might send out a single product shipment to a multitude of destinations,” she continues. “The only way

PROJECTED GROWTH OF TECHNOLOGY ADOPTION YEAR OVER YEAR THROUGH 2020 58

19.4% RFID

11% BARCODE

FOOD LOGISTICS | NOVEMBER/DECEMBER 2016

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that companies can effectively track these multisourced and multi-delivered shipments is through technology that can integrate with master supply chain systems. RFID and barcoded technology has this integration ability.” With RFID and barcoding, F&B companies now can track and record movements of goods, see their present locations, and even check their temperatures and humidities while they are en route. The ability to monitor food shipments in real time reduces risk of spoilage or waste. It also improves inventory and logistics management. “If you’re shipping chicken in Florida and the temperature in the truck exceeds 42 degrees Fahrenheit for more than 15 minutes, you can see this situation immediately and take action,” explains Sinclair, “Or, if you get a red alert from a truck carrying perishable product because the truck’s environmentals failed, you can throw away that truckload if you have to—but at

least you avoid the potential of a huge product recall.” A massive product recall can sink a company. Sinclair recalls a Deloitte research study that found 80 percent of small companies fail when a massive recall is needed. “A recall can diminish your brand and cause irreparable damage to your reputation,” Sinclair says.

Barriers to Adoption So, if improved tracking and tracing of goods, inventory management, quality control and recall avoidance are enabled with RFID and barcode technologies, why isn’t the F&B industry adopting them more aggressively? “A major challenge is keeping up with everything, which leaves less time for anything else,” says David Kane, label design product manager for Teklynx, which produces barcode label software. “In its current process, a company might use one label and then discover that it needs other types of labels.” Creating extra labels often is done on the spot and out on the floor. It can be a highly manual process that is fraught with error. Kane says that companies can help streamline the process by providing a library of labeling templates that www.foodlogistics.com

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ATRIX

software for smaller companies looking for WAREHOUSING continued d easy to use.SR: LABEL MATRIX is an intuitive ace. Helpful wizards guide you through cting to a database, and retain advanced design standard label information that meets regulatory standards, s. LABEL MATRIX is the best choice for small while also enabling production at a reasonable price point! workers to adjust the non-regulato-

ry portions of labels. The technique saves time because employees le for LABEL MATRIX. Subscription Licensing don’t have to create new labelsis from scratch, long term value. The upfront cost with of athe possibility that errors might be introduced. An r, and it includes more value than ever before. additional benefit for F&B companies, especially if they lack their regulatory staffs, is that the ng extra time or money. own labeling company tracks government labeling regulations and stays fied and predictable budgeting. current with them. o software maintenance and technical support. “Regulatory compliance and staying on top of it is a major issue,” acknowledges Ken Moir, packaging. The next requirement • LABEL MATRIX label design software from Teklynx is intended for vice president of marketing at that food companies must add is smaller companies looking for ease of NiceLabel, a provider of barcode nutritional information.” installation and use. label printing software solutions. Moir points out the importance “In Europe, EU 1169 (www.gs1. of using a standardized labeling annually—but the process couldn’t org/eu-1169) was put in place method that can easily adjust to have been executed without up-totwo years ago and requires that changes in government regulations date labeling.” you need to meet low-complexity label design you print allergen information on needs. or requirements from customers. Companies also experience “There is a bakery in labeling challenges when they are Belgium that has multiple running multiple facilities, with act as training guides when new users begin using the application. stores and it found that each facility using different printers many customers didn’t for labeling. “This becomes an intede symbologies, including Data Matrix and QR Codes. want to stand in line to gration challenge because the label wait for a printing softincrementing values to your labels. sandwich,” ware for each Today’s food supply says Moir. printer does not chains are no longer a by a certain interval (often used for best-by and expiration dates.) “So rathusually work linear progression of er than with other printevents and are far too lose these ers,” Moir says. complex to track customers, It is one reason manually.” the bakery why companies, Elizabeth Sinclair, Seagull Scientific decided to like NiceLabel, pre-make developed sandwiches, universal label How can LABEL MATRIX help your company? which it labeled with printer drivers that can work with allergen and use-by dates. all label and marking printers. By doing this, the bakery “If we can solve these issues for • Save time on training - Use LABEL MATRIX’ helpful to also cutpresent down was able to stay compliF&Bwizards companies, and a in its food labeling. value proposition makes these on training time. Wizards areantavailable for everything fromthat selecting added another 3 technologies easy to integrate, we a printer, to database setup, Ittotoalso 2D barcode configuration. 4 percent to revenues can speed adoption and improve because it could now capaccuracy,” says Moir, who adds that • Fast Track Labeling - LABEL MATRIX includes hundreds of label samples ture business from cuscompanies often overlook the cost and templates, spanning fromtomers address labels regulation who were walking to ofindustry human error. away when the lines were “Companies need to be more labels. These samples and templates allow userscognizant to meet virtually any too long. This resulted in of the cost of error 1-800-628-4065 labeling requirements quicklyanand overalleasily. revenue gain because, when erroneous labeling www.loadtransfer.net of close to $20 million data is introduced into the system,

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FOOD LOGISTICS |

Scale Your Business - LABEL MATRIX is designed to meet the needs of small labeling2016 environments, but powerful enough to handle large NOVEMBER/DECEMBER www.foodlogistics.com labeling projects. When it’s time to move up to a more robust solution, LABEL MATRIX label files are easily convertible to LABELVIEW files.

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you don’t have integration with your central manufacturing execution and supply chain systems,” says Moir. “For example, if someone manually enters the wrong use-by date on a perishable food, an entire shipment may need to be scrapped, and the company loses that revenue or even the customer.” Moir says that smaller F&B companies are vulnerable to these types of errors because many of them still enter their labeling and tracking data manually. “In one case, we saw a group of smaller businesses that were acquired by a larger company, which found that each of these businesses were doing things their own way,” says Moir. “Major effort was needed to standardize both practices and systems. These small companies had different kinds of label and marking printers, so a major job was to create drivers for all of these printers that would enable them to all be easily integrated into a single manufacturing execution system.”

As they work to reduce the incidence of human error, F&B companies also need to look at optimizing business processes that enable faster times to market. “A good example is the produce industry, where we have seen an increase in the use of returnable transfer unit containers and totes,” says Tom O’Boyle, director of RFID at Barcoding Inc., which deploys barcoding and RFID solutions. “Totes are reused, so the process of filling them, checking them in and emptying them, then cleaning them in preparation for reuse, can all be recorded into a central system with RFID. This process, when done manually, can take many hours to complete. With RFID, each step can be reduced to minutes and the introduction of human error is also significantly reduced.”

Back to the Future Companies in the F&B sector are moving forward with RFID and barcode technologies. “RFID technol-

Regulatory compliance ogy adoption is projected to and staying on top of it is grow year over a major issue.” year by 19.4 Ken Moir, NiceLabel percent between now and 2020,” says Sinclair. “And barcode technology adoption is projected to grow annually at a rate of 11 percent through 2020.” Over time, the expectation is that more companies will gravitate toward a hybrid adoption of both RFID and barcoding. For instance, Mary Shacklett is for a pallet of beef, you could have the president of data on where the cow lived, what Transworld Data, a it ate, etc., and all of this data could technology analytics, be stored in a barcode. Then, by market research using RFID, you could scan the data and consulting firm. directly into your central system. Prior to founding the Another innovation that O’Boyle company, she was vice foresees is “sensor-based alerts president of product that tell you when temperatures research and software in containers are not in the proper development at ranges. The data tags on food will Summit Information become more like data loggers that Systems. She can provide information about the may be reached contents of your shipments every at mshacklett@ step of the way.” twdtransworld.com.

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SECTOR REPORTS TRANSPORTATION

BY KAREN E. THUERMER

CARGO

THEFT IS A CRITICAL

ISSUE TO THE FOOD AND BEVERAGE INDUSTRY

How can companies better protect food and beverage cargo?

Karen E. Thuermer is an Alexandria, Virginia-based journalist who has been writing about logistics for several decades.

62

C

argo theft is not limited to high-value commodities such as electronics. According to CargoNet, food and beverage was the most stolen commodity in the U.S. last year. Meanwhile, FreightWatch International (FWI), a subsidiary of Sensitech Inc., estimates the average value of stolen food and drink shipments between 3Q 2014 and 2Q 2016 was $86,149, with seafood being the highest-valued subcategory at nearly $200,000. The most targeted subcategory was meats at slightly below $100,000. FWI reports that food and drink shipments remain the most stolen commodity domestically, with 23 percent of thefts from June to August 2016. Of those thefts, 77 percent were full truck loads and 15 percent fictitious pickups. The future of cargo theft in the food and beverage sector is unclear since time of year, economy and accessibility all factor into what cargo criminals look for as a target. Nevertheless, the FWI Supply

FOOD LOGISTICS | NOVEMBER/DECEMBER 2016

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Chain Intelligence Center continues to observe and report on any particular product or commodity that starts to become a trending target in cargo theft incidents across the U.S. FWI indicates the food and beverage supply chain is particularly vulnerable because 99.99 percent of companies in the industry do not institute a layered security program in their transportation and logistics operations. “Aside from the nut growers in California, little has been done to combat the problem,” FWI says. In order to protect themselves from cargo theft, companies must pay high insurance premiums. According to TT Club, a top insurance provider, theft is the No. 3 reason for a claim. By outfitting trailers with tracking devices that make it possible to detect cargo theft and recover stolen assets, companies reduce premiums. “Cargo theft is a customer service failure as it undermines a carrier’s ability to meet service expectations,” remarks Lina Paerez, product

marketing manager, ORBCOMM. “Cargo theft can permanently damage a company’s reputation. When a shipper loses a load due to theft, it disrupts the distribution cycles. If carriers can’t provide a safe work environment for their drivers, it can lead to poor driver retention.”

Real-Time Monitoring FWI maintains that assisted-GPS covert tracking technology embedded in cargo is the preeminent force multiplier with respect to combating in-transit cargo theft. Electronic freight security (EFS) programs offer a solution as they provide real-time, end-to-end monitoring of cargo shipments through embedded tracking technology. EFS also allows a shipper to maintain full visibility of the cargo for the duration of the shipment. Proper EFS programs include predetermined routes with immediate escalation protocols to ensure maximum compliance and security of the driver and cargo. Compliance to security protocols is critical. www.foodlogistics.com

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Global Supply Chain Solutions for the Food and Beverage Industry

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SR: TRANSPORTATION continued

The food and beverage industry contributed

$56 billion to the U.S. gross domestic product, and accounted for

670,000 jobs in 49

states in 2012.

Immediate response and resolution to non-compliance incidents reduces opportunities for theft. FWI got its start developing EFS technology to enable monitoring, reporting and recovery of high-value shipments in transit between manufacturing warehouses and delivery sites. Its technology delivers real-time location, status and condition data, as well as critical activity alerts that harden the supply chain and mitigate the risk of cargo theft. “Aluminum containers and cargo holds represent some of the most challenging environments for GPS devices,” FWI officials state. “FWI-manufactured devices optimize leading location-based services and machine-to-machine (M2M) technology that works in impaired settings where other GPS devices do not.” The latest FWI Single-Use GEO Tracker is at the forefront in

tracking technology. This tracker takes the complexity out of cargo tracking by offering convenience and simplicity—eliminating the organization and management of tracking equipment. Telematics devices can track the location and status of transport assets for complete fleet visibility. “Operators receive alerts when a problem is detected,” Paerez explains. “This enables dispatch to react to problems quickly. When cargo is stolen, tracking devices make it possible to track the trailer for quick recovery.” Trailer tracking devices are becoming smaller and more inconspicuous, which makes them harder for thieves to spot. The systems support mobile applications, which allow operators to monitor status and manage alerts from anywhere. “Devices are also becoming increasingly sophisticated. They are quicker and easier to install, and require almost no maintenance or battery changes,” Paerez adds.

Trailer Breach Trailer breach or load tampering is another problem. A trailer tracking solution that incorporates cargo and door sensors, and delivers notifications/reports when a trailer is loaded or unloaded, and when a door opens or closes, can help carriers to detect theft early. “A comprehensive system can also include cargo sensing technology that reports on load status— vibration, light, temperature, humidity, shock, etc.—which makes it possible for carriers to detect cargo tampering as it occurs,” Paerez says. “One way to identify a valuable target is when external devices are securing the doors,” states Scott Borsodi, director of business development at Q Products & Services, creator of the Power In-Lock cargo security system, which locks a trailer from the inside, making it out of sight and out of reach of those trying to gain unauthorized access. “Our doors are locked electronically from our Jackson, Mississippi,

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headquarters as soon as the trailer is loaded,” says Chris Wood, vice president of sales and marketing for KLLM Transport Services. The locking mechanism is centrally controlled from KLLM’s corporate dispatch through telematics. Once the lock is activated, the door cannot be opened until the trailer reaches its destination. Drivers only have the capability to unlock the trailer through the use of a one-time code entered on a keypad attached to the trailer. The corporate dispatcher must provide this one-time code. This prevents any collusion between the driver and an outside source from gaining access to the product within the trailer. The doors have sensors that document openings and closings, and also indicate whether the trailer was locked or unlocked. “Even if the external padlock and the shipper seal are breached, we can prove the trailer doors were never opened and show that the product remained safe during transit, thereby avoiding a claim,” Wood remarks. Borsodi stresses that Power In-Lock buys time in deterring theft. “Most thieves will give up if they can’t access the cargo within a minute or two,” he says. “By mounting a security solution on the inside of a container or trailer door, the thief doesn’t know what’s preventing the doors from opening." The importance of being able to prove a shipment was not tampered with cannot be understated. “A tampered shipment can be far more detrimental to a business than a few pallets getting stolen,” Borsodi states. “Companies that intend to sustain a reputable brand simply can’t afford to take the risk of partnering with a carrier that is unable to help them comply with regulations." Regulations, such as the Food Safety Modernization Act (FSMA), are probably the largest contributors forcing change, as shippers must be more diligent in selecting their transportation providers. As a result, many shippers are taking a www.foodlogistics.com

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zero-tolerance position as it relates to trailer breaches. Shippers are presenting transportation agreements to carriers that allow the shipper to claim the carrier for the entire shipment rather than being required to inspect the product and prove damages. Coinciding, transportation providers are employing reliable cargo security solutions when investing in new equipment and modern communication tools.

“Quite frankly, they have to if they want to haul their customers’ freight,” Borsodi says. “A common perception with regard to regulations is that they present challenges and increase operating costs. In reality, when the proper technology is utilized, it can exploit the weak links in the supply chain. As a result, they realize cost savings by reducing shrink, cargo theft and supply chain disruptions.”

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SECTOR REPORTS SOFTWARE & TECHNOLOGY

BY KAREN E. THUERMER

Enter the Benefits of Machine Learning

MACHINE LEARNING IS COMING Artificial intelligence capabilities will help food companies make up-tothe-minute decisions that can reduce supply chain disruptions.

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nterprise resource planning (ERP) and transportation management systems (TMSs) are already widely employed in tracking business activity and shipments while in transit. However, all of these tools do not adequately provide the information required to analyze the supply chain in real time, make up-to-theminute delivery adjustments and help merchants plan for the next sales season—issues that are paramount in the food and beverage (F&B) industry. New technologies and solutions related to the Internet of Things (IoT) and Big Data are creating a

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stir of opportunities, particularly as it relates to omnichannel operations, inventory management, logistics costs, and customer retention and acquisition, wrote Scott Dulman, senior director at Savi Technology, on September 15, 2016, in Supply & Demand Chain Executive, Food Logistics’ sister brand. More beneficial for companies in F&B, however, is the ability to capture information regarding demand as close to customer needs as possible since this data can take into consideration uncertainties in the market, any disruptions to the supply chain and other factors.

So, what is machine learning? Machine learning is defined as artificial intelligence that evolved from the study of pattern recognition and computational learning theory, and explores the study and construction of algorithms that can learn and make predictions on data. Simply put, machine learning allows computers the ability to learn without being explicitly programmed. They gain their artificial intelligence by using real-time IoT data, historical data and contextual information. “Machine learning computer programs teach themselves when exposed to new data,” comments Hank Canitz, product marketing director, Logility. “Machine learning models know which shipments to expedite, which carriers to use, what time is best for clearing customs, and what routes are best for road, ocean and rail.” While experts maintain widespread use of machine learning has not reached the mainstream, and predict it may be five to 10 years before it is commonly implemented in F&B, Canitz stresses that it’s not too early to understand what this form of artificial intelligence means to the industry. “After all, machine learning is coming to this sector. It’s just a matter of time before it’s widely used in the F&B supply chain,” he says. Jim Hayden, Savi Technology’s executive vice president of www.foodlogistics.com

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products, emphasizes that the more complex global supply chain networks become, the more businesses will need the algorithmic power of machine learning. “That’s because machine learning uses a variety of computational and statistical techniques to help identify patterns, trends In the food or anomalies in data,” he industry, there’s says. “These special-puralways that knife pose algorithms are edge, especially used to build predictive regarding models.” shelf life.” Hayden particularly stresses that TMSs and Hank Canitz, Logility ERP have limited uses. “TMSs are utilized to keep track of what and exactly where a shipment is en route,” he states. “ERP is more a system of record.” To better explain how quickly machine learning uses algorithms and spits out data, Hayden points

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to the finance industry and how it benefits from machine learning. “The best examples most people are familiar with are when a financial institution provides your most recent credit score or you get a phone call from your bank regarding algorithms that point to credit card fraud use,” he says. There’s a host of critical uses for machine learning in the F&B industry. One specific use, he states, could be identifying locations with a higher likelihood for temperature excursion than other locations. “Machine learning would indicate there’s more risk around that geolocation,” Hayden says. For example, companies would benefit by learning where or when to avoid certain border crossings where refrigerated trucks may have to idle for hours before being allowed to cross and clear customs. “Idling is taxing on the reefer unit,” Hayden stresses. “Other geolocations with high propensities for risk could be bridge crossings,

even rest areas. Machine learning can see optimal times at these locations so that the risk of having a temperature excursion can be reduced or avoided.”

The Future of Machine Learning Machine learning holds a host of potential uses for the F&B supply chain. It can assist companies in statistical forecasts to decide what food and drink products are selling better and in what markets; supply and demand fluctuations for items depending on trends, seasonality, time of year and even daily patterns; what promotions are more successful than others; the effectiveness of media events such as advertising; how well received a new product is when introduced; customer attitudes toward products expressed on social media; and other daily market intelligence. Machine learning can help companies reduce shrink, determine how much to produce, and help op-

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timize where to produce and store guarantees, whereby they monitor that inventory, among other uses. temperatures throughout the jour“In the food industry, there’s ney and guarantee a shipment’s always that knife edge, especially integrity. regarding shelf life,” states Canitz. “Farmers, grocery stores and “You’re always walking on that even large restaurant chains knife edge of having too much can use it to predict demand to inventory and distressing the make sure they are not over- or inventory—having to throw it out, under-ordering,” Hayden adds. sell it for pennies on the dollar or “Health inspectors could rely on not having enough.” this data to make decisions.” It Depending on factors such as also can be used to track congescapacity, storage space and transtion, and save drivers time and portation capabilities, machine headaches. learning helps F&B companies Time to Implement maximize their inventory capabilor Be a Follower? ity, customer service and financial performance. With all of these benefits, it’s “I think there are a lot of ways easy to ask whether or not F&B machine learning can be used in the companies should start impleF&B industry,” comments Canitz. menting machine learning now. “It can act like a guided missile. The “That’s a tough question,” more information in, the better the comments Canitz. “From my results are out.” experience, those in the F&B The basics of machine learning industry tend to be followers in have been around for decades technology largely because their and experts maintain that today’s margins are so thin. When you are interest in its adoption is at an making pennies on the pound, it is all-time high. Yet market observers hard to justify spending contend that those in F&B have millions of dollars to put in not quite embraced this techniadvanced systems.” cal discipline in a But he stresses Those in the food that F&B execumainstream way. Nonetheless, Hayden industry tend to be tives need to put followers in observes that the machine learning technology because on their radar industry is starting their margins to realize such uses screen. “This is as temperature data are so thin.” something the loggers for measurindustry needs to Hank Canitz, Logility ing and recording ease into so that temperature. it can get people used to “As way of example, what’s relying on machines to worse than getting ice cream deliv- make recommendations,” ered that is thawed, then refrozen, Canitz says. then delivered?” Hayden comWhile it’s easier for ments. “If you can have real-time food companies like Nesreadings of temperature while a tle and ConAgra Foods to shipment is in transit, then you adopt machine learning would know at the exact moment quicker because of their there was a temperature excursion volumes and ability to and that batch cannot be delivered. gain value faster, Canitz You can take an alternative route sees most F&B companies to the destination, so that it will holding off. not be spoiled.” “They need time to In that way, machine learning build the foundation,” he is useful for trucking companies says. “Most planners today that try to differentiate themselves are focused on trudging by offering refrigerated shipment through data, executive www.foodlogistics.com

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forecasts and making decisions based on purchase orders. They are not focused on solving problems, analysis, collaborating and coordinating.” Consequently, he predicts the use of machine learning in the F&B industry is at least 10 years out. But Canitz maintains that, once the industry gains confidence in algorithms, decisions can start to be made by automation and management can be done by exception. “When that happens, machine learning will allow teams to become more focused on other areas,” he says. “It will be a huge change. Then the industry will need different types of people with different skill sets, knowledge and experiences than supply chain teams need today.” One thing that is for certain, technology is changing the world faster and faster, and that includes how the F&B industry does business and operates its supply chain.

Karen E. Thuermer is an Alexandria, Virginia-based journalist who has been writing about logistics for several decades.

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SECTOR REPORTS OCEAN CARRIERS/PORTS

BY LARA L. SOWINSKI

INVESTMENTS IN REEFER FLEETS STAY for the XtendFRESH option since its inception in 2013. The PrimeLINE Ocean carriers look to advanced units were installed on 40-foot high-cube containers Hapag-Lloyd controlled-atmosphere technology to protect shippers’ purchased for fleet replacement perishable cargo, extend shelf life and reduce food waste. and expansion.” The ocean carrier’s head of conhile containerized ocean According to Carrier Transicold, tainer steering, Niklas Ohling, says carriers continue to bat“The XtendFRESH system actively the new reefers “improve our capatle historically low rates manages oxygen and carbon dioxbilities with sensitive fruits and vegand falling revenues, the reefer seg- ide (CO2) etables by helping GROWTH OF THE ment remains buoyed by growing levels within to ensure optimal GLOBAL REFRIGERATED global demand for perishable foods, refrigerated produce quality CONTAINER MARKET both in developed and emerging containers, for our customEXPECTED TO REACH economies. For that reason, carriers and removes ers.” He adds, “As are investing in their reefer fleets to ethylene, shipping patterns meet current and future demand. thus slowing change, bringing Hapag-Lloyd added 3,000 the ripening longer routes, from $2.13 billion in 2015. PrimeLINE reefer units to its fleet of produce our investment this year, with 1,000 of the units and helping in controlled-atequipped with Carrier Transicold’s to preserve produce quality beyond mosphere technology will provide XtendFRESH controlled-atmowhat refrigeration alone can do. dividends for our customers by mainsphere system. Hapag-Lloyd’s order is the largest taining quality for produce, such as

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bananas and mangos, over extended shipping times.” The reefer units purchased by Hapag-Lloyd also are energy efficient, states Carrier Transicold. “The PrimeLINE units use an advanced digital scroll compressor to deliver more cooling capacity using less energy than prior models from Carrier Transicold. The PrimeLINE units also provide pulldown that is up to 15 percent faster than its nearest competitor and as much as 30 percent faster than others.” Innovations in controlled-atmosphere technology also are helping reduce food waste. Jon Shaw, director of sustainability and communications at Carrier Transicold, notes, “By maintaining

precise conditions to optimize quality for specific commodities, the XtendFRESH system will help Hapag-Lloyd’s customers reach new markets through extended shipping distances.” In addition, “The system also helps to prevent premature ripening, which aids in reducing food waste through spoilage, resulting in a more efficient cold chain.” Another German ocean carrier, Hamburg Süd, is using the XtendFRESH controlled-atmosphere system in its reefer units to optimize fresh avocado shipments from South America to the Port of Rotterdam in the Netherlands for Nature’s Pride, a European exotic fruit importer. Rogier Rook, logistics manager at Nature’s Pride, says, “We tested XtendFRESH quite extensively. It was a nice collaboration between ourselves, Carrier, Hamburg Süd and our growers.” www.foodlogistics.com

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During the ocean voyage, avocados are kept cool, while the XtendFRESH system manages oxygen and CO2 levels. As the avocados consume oxygen through respiration, it is maintained at lower levels to reduce further respiration and delay ripening. Elevated CO2 levels are maintained to delay softening, while ethylene produced by the avocados inside the reefer container also is removed to delay ripening.

As shipping patterns change, bringing longer routes, our investment in controlledatmosphere technology will provide dividends for our customers ...” Niklas Ohling, Hapag-Lloyd

Once the avocados arrive at the Port of Rotterdam, they are transferred to Nature’s Pride’s ripening facility in Maasdijk in the Netherlands.

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• European exotic fruit importer Nature’s Pride relies on its partnership with Hamburg Süd and Carrier Transicold to deliver ready-to-eat avocados to grocers’ shelves.

“The amount of detail that goes into the process upon arrival here is extreme,” Rook says. “Besides the ripening, there is sorting and repackaging, so this is really a complex process. And we try to give our clients at least a week of shelf life on these products.” Japanese container manufacturer Daikin confirms, “Temperature control remains the No. 1 transportation requirement for maximizing the quality, safety and shelf life of fresh produce. But controlled-atmosphere [technology], which effectively puts fresh commodities to sleep in transit, will also play an increasingly important role over the coming years to support expanding container trade in high-value, sensitive fruits and vegetables, both for global and regional markets.” For example, fresh fruits and vegetables are responsible for 70 percent of the strong growth in intra-Asia perishables trade over the past five years, according to Seabury Maritime, and this segment heavily relies on controlled-atmosphere technology for leafy greens

and other sensitive commodities. “Another factor impacting the need for controlled-atmosphere [technology] is the shift in global container shipping operations, including increased vessel sizes, slow steaming and transshipment-based networks,” Daikin states. “These developments help the shipping industry maintain its service and open up markets for fresh produce exporters worldwide, but also lengthen supply chains. Protecting and extending the life of perishable cargoes with technologies, such as controlled atmosphere, therefore, becomes increasingly important.”

Continued Growth on the Horizon The compounding effects of rising global demand for fresh food, ample capacity of reefer containers, low shipping rates and increasing sophistication of controlled-atmosphere technology are supporting growth of the global refrigerated container market, which is expected to reach $3.25 billion in 2020 from $2.13 billion in 2015. Market volume of refrigerated containers is forecast to reach 3.46 million 20-foot equivalent units (TEUs) by 2020 at a compound annual growth rate (CAGR) of 6.7 percent. Allan Klinge, vice president and

sales manager at Klinge Corp., says he is seeing growing demand for specialty reefers, such as tank container equipment, explosion-proof equipment and dual-redundant reefer systems. “While the market for standard reefers will surely rebound, the specialty market appears healthy, even in the face of the recent downturn, as safety requirements will continue to be enforced and increased,” he explains. In addition, “The reefer/heating tank market also continues to grow as investors develop better methods of bulk liquid transport and distribution.” Klinge’s refrigerated tank containers cool the tank’s cargo by circulating brine or synthetic oil around external cooling coils in the tanks. The system is used to transport food products and beverages, along with other types of cargo. The demand by customers for temperature monitoring is driving interest in Global System for Mobile Communications (GSM)- and satellite-based options, adds Klinge, who notes that the company currently is working HOW MANY freight claims with a partner do you file per month? on a dual version in which the satellite would If it’s more than 10, MyEZClaim Freight Claim Software can be used when reduce your filing costs: a GSM/cellular connection is not Mine claim data to identify problem carriers or products available. Lower administrative costs by reducing filing time to just 15 minutes per claim

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FOOD (AND MORE) FOR THOUGHT

BY ALEXA BERNARD

How PERMACULTURE Fits into the Global Food Supply Chain I

Permaculture goes far beyond organic farming in that it takes into account an entire ecosystem.

n his final report to the United plants. Natural energies from wind, communities; decontaminate, Nations Human Rights Council in dust, leaves and even bird droppings protect and build soil; and restore 2014, following a six-year term contribute to the closed system. habitats for wildlife. as special rapporteur on the right to Rather than rows of plantings, perAdmittedly, it’s unrealistic to exfood, Olivier De Schutter called for maculture’s whole systems approach pect that permaculture will replace the world’s food systems to be radiresembles a food forest where industrialized agriculture. However, cally and democratically redesigned. plants are allowed to seed and are what is achievable is greater aware“Objectives, such as supplying interplanted for pest control. ness and embrace of permaculture diverse, culturally acceptable foods Once it is established, this sysas an important component of globto communities, supporting smalltem requires minimal labor and the al food supply production—which holders, sustaining soil and water nutrients become self-sustaining, will be tasked with feeding 9 billion resources, and people by 2050— raising food secuand part of the rity within particlarger solution ularly vulnerable to addressing areas, must not food insecurity typically with swales and sustainable gray-water harvesting be crowded out throughout the achieve practices before it leaves the property by the one-diworld. mensional quest From my The amount of time It only takes it takes to operate to produce more GREATER perspective, I’m a fully functioning food,” he urged. encouraged by OUTPUT permaculture system is Permaculthe rise of food per acre to have your own fully LESS THAN 2 than large ture is playing sovereignty productive and selffarms HOURS PER DAY sustained food forest an increasingly movements important role across the in this necessary redesign. It goes while pests and disease are kept globe, which in turn gives the food far beyond organic farming in that in check with vibrant resiliency. industry the freedom and momenit takes into account an entire Furthermore, indigenous and traditum to reinvent itself and become ecosystem, i.e., the ways in which tional knowledge, and the immense a positive force in the blossoming the wind blows and water flows, cultural heritage of a vast variety of a new era. My advice is to learn along with the plethora of life forms of heirloom seeds are cherished, from these grassroots movements, contained in the soil all the way to saved and integrated. It’s inherently support them and be allies in policy the upper canopy. It operates as a local as food production is close to matters. Be inspired. food forest layered with annual and the consumer and people likewise Permaculture’s whole systems perennial herbs and vegetables, and invest time to maintain the permaapproach is a template for the kind multi-purpose shrubs and trees. culture “farm.” of holistic thinking that is required Animals are foraging and fertilizAccording to the Millennium Eco- from us today. We cannot have food ing, while pollinators are safe and system Assessment (www.millensecurity if we do not address water rewarded. Food, fiber and fuel exist niumassessment.org), agriculture is supply and quality. We cannot have in a smorgasbord of diversity that is the No. 1 man-made threat to global food democracy if we do not adinherently beautiful and inviting. biodiversity and ecosystem funcdress the social injustice issues that A whole—or closed—systems tion. Indeed, permaculture can rem- de-possess people from the land. approach is a key characteristic of edy the unintended consequences It’s been said that permaculture is permaculture. For example, the natu- of the world’s industrial agricultural “the art of designing beneficial relaral carbon cycle is a central composystems. It can help to sequester tionships.” In this regard, it shares the nent, whereby waste from plants and carbon and resurrect water tables; hallmark of today’s most successful animals become fertilizer for new reinvigorate and empower local and admired supply chains.

SMALL WATER CAN BE REUSED FARMS 100S OF TIMES

4–5X

BERNARD

Alexa Bernard is a permaculture designer, activist and teacher specializing in the emergent field of social permaculture. Currently residing in the Pacific Northwest, she can be reached at permacamper@ gmail.com.

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FOOD (AND MORE) FOR THOUGHT

BY ELLIOT MARAS

L E T ’S CHILL

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Food Logistics November December 2016  

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