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IOT TRANSFORMS THE FOOD SUPPLY CHAIN

OCEAN FREIGHT GETS DIGITAL

Food Logistics

SMART LABELS MAKE WAY FOR BETTER BUSINESS ®

Global Supply Chain Solutions for the Food and Beverage Industry

THE YEAR’S MOST TALKED ABOUT TRENDS AND THE IMPACT THEY WILL HAVE IN 2018 AND BEYOND

THE

FUTURE FOOD LOGISTICS OF

2017

Issue No. 192 | November/December 2017 | FoodLogistics.com


The Ford F-650/F-750 is 45% quieter inside the cabin at idle than the previous generation* with reduced noise, vibration and harshness, improved suspension and refined cab craftsmanship. More reasons Ford Medium Duty trucks are the fastest-growing-volume medium-duty brand.** And the winner of Work Truck magazine’s Medium-Duty Truck of the Year award for two years running.

Vehicle shown with optional features and aftermarket equipment. *When equipped with the available 6.7L Power StrokeÂŽ V8 Turbo Diesel Engine. **Based on IHS Markit TIP Registrations for GVW 4-7 vehicles with sales over 1,000 units for CYTD Dec. 2016 vs. CYTD Dec. 2015.

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THE F-650/F-750 /// FORD.COM

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ON THE MENU

OCTOBER 2015 ISSUE NO. 171

ON THE MENU

November/December 2017 ISSUE NO. 192 COLUMNS FOR STARTERS

B  etting Big on Blockchain

6

The convergence of transformative technologies will forever change global trade and, more specifically, the food supply chain.

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COVER STORY

The Future of Food Logistics Food Logistics’ editorial team looks at some of the year’s most talked about trends and the impacts they will have in 2018 and beyond.

FEATURE THIRD-PARTY & REFRIGERATED LOGISTICS

30

Cheers! Cin-Cin! Kampai!

People have been drinking wine for 10 millennia. Modern logistics makes it easier to enjoy around the globe. SPECIAL REPORT

34 2017

 he 2017 T FL100+

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

SECTOR REPORTS WAREHOUSING

48

S  mart Labels Expand Informational Possibilities

Smarter labels and devices make way for smarter methods of doing business.

COOL INSIGHTS

12

FOOD (AND MORE) FOR THOUGHT

68

TRANSPORTATION

52

T  he Future of Food and Beverage Cargo Theft–and Security

Manufacturers and distributors must react now, or face the consequences. SOFTWARE & TECHNOLOGY

56

H  ow IoT Will Transform Food Supply Chains

IoT can help food and beverage companies save money, reduce spoilage, improve time to market and increase customer satisfaction. OCEAN PORTS & CARRIERS

62

O  cean Freight Goes Digital

New solutions, including blockchain, bring long-awaited visibility to the industry.

T  he Cold Chain Challenge

Maintaining temperature control for fruits and vegetables in transit is the most critical factor in assuring successful transport.

C  hallenges and Opportunities for Foodservice Industry in 2018

Todd Williams, president of KINEXO, offers his thoughts on key trends in the foodservice industry as Food Logistics looks ahead to 2018.

DEPARTMENTS

Supply Scan 10 Food on the Move 66 Ad Index 8

WEB EXCLUSIVES • Four Reasons to Take a Holistic Approach to Omnichannel Grocery foodlogistics.com/12381898

• Down to the Wire: Are You ELD-Ready? foodlogistics.com/12380804

• Logistics Organizations Lean on Tech to Keep Up with Changing Consumer Demands foodlogistics.com/12378078

Published and copyrighted 2017 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

BETTING BIG ON BLOCKCHAIN I SOWINSKI

Maersk estimates one

container shipment amounts to more

than 200 interactions involving more than 30 people.

6

n late November, ocean carrier Zim announced it had completed the first pilot test of paperless bills of lading based on blockchain technology. This was one of many blockchain-related announcements by transportation and logistics companies this year. Considering that ocean carriers transport about 90 percent of all global trade, this single industry has a lot to gain by transitioning its manually intensive documentation processes to blockchain. Maersk, the world’s largest shipping line, is partnering with IBM to use blockchain technology to create a global trade digitization solution to reduce the time, labor and inefficiency associated with the current process, which according to Maersk’s research, amounts to more than 200 interactions involving more than 30 people for just one container shipment. Using blockchain technology, the global trade digitization solution “gets the transparency and security it will need to enable all relevant and approved parties in the supply chain access to the information they need and the ability to act on it, but without the paper train and the billions of dollars in costs it creates for trade,” says Maersk, which added that, “With every set of hands that stamp, email, phone call, scan, copy and hand deliver important cargo-related certificates and information, the greater the likelihood of errors, lost information and delays that frustrate the progress of trade.” Maersk is also joining Microsoft

FOOD LOGISTICS | NOVEMBER/DECEMBER 2017

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and accounting giant EY on the first blockchain platform for marine insurance, another sector in global trade that is fraught with “complete inefficiency,” according to a senior executive at EY. While the ocean carrier industry is making waves with its embrace of blockchain to dramatically overhaul how it shares data, the vessels themselves are also preparing for a radical design makeover. Rolls Royce is taking the lead to advance autonomous vessel technology (see cover image of RR’s concept vessel). The company expects to have a remote-controlled ship with a reduced crew in commercial use by the end of the decade, with an unmanned remote control coastal vessel in operation by 2025. By 2030, the first remote-controlled unmanned ocean-going vessel is expected, while an autonomous, unmanned ocean-going vessel is targeted for 2035. The convergence of transformative technologies like blockchain, artificial intelligence (AI) and others is truly exciting when one imagines the many ways global trade—and the food supply chain, more specifically— will be forever changed. We’ll give you a taste of what’s underway in this issue and plan to serve up similar content as we look toward 2018. Enjoy the read.

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

DETAILS

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 John R. Yuva jyuva@ACBusinessMedia.com Assistant Editor Amy Wunderlin awunderlin@ACBusinessMedia.com Contributing Editor Barry Hochfelder Senior Production Manager Cindy Rusch crusch@ACBusinessMedia.com Creative Director Kirsten Wiskus Audience Development Director Wendy Chady Audience Development Manager Angela Kelty ADVERTISING SALES (800) 538-5544 Associate Publisher (East Coast) Judy Welp (480) 821-1093 jwelp@ACBusinessMedia.com Sales Manager (Midwest and West Coast) Carrie Konopacki (920) 542-1236 ckonopacki@ACBusinessMedia.com National Automotive Sales Tom Lutzke (630) 484-8040, tlutzke@ACBusinessMedia.com EDITORIAL ADVISORY BOARD Jaymie Forrest, Chief Supply Chain and Commercial Officer, ScanTech Sciences Inc. John Haggerty, Vice President of Business Development, Burris Logistics Robert A. Norton, Ph.D., Professor of Veterinary Microbiology, Public Health and Biosecurity, Auburn University; Coordinator of National Security Initiatives, The Futures Laboratory Jon Shaw, Director of Sustainability and Global Marketing Communications, UTC Climate, Controls & Security Smitha G. Stansbury, Partner, FDA & Life Sciences Practice, King & Spalding CIRCULATION & SUBSCRIPTIONS P.O. Box 3605, Northbrook, IL 60065-3605 (877) 201-3915, Fax: (847)-291-4816 circ.FoodLogistics@omeda.com LIST RENTAL Elizabeth Jackson, Merit Direct LLC (847) 492-1350, ext. 18; Fax: (847) 492-0085 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 CFO JoAnn Breuchel Digital Operations Manager Nick Raether Digital Sales Manager Monique Terrazas Published and copyrighted 2017 by AC Business Media Inc. All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording, or any information storage or retrieval system, without written permission from the publisher.

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SUPPLY SCAN

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

GROCER ALBERTSONS MOVES TOWARD HOME DELIVERY WITH INSTACART

LARGE FOOD MANUFACTURERS CUT TIES WITH GMA

Dean Foods “has quietly decided to leave” the Grocery Manufacturers Association (GMA), Politico reports, making it the third major food manufacturer to leave the trade association that has long lobbied in Washington for large food companies’ interests. Campbell Soup Company announced its decision to leave GMA in June, after objecting to GMA’s intensive lobbying against federal legislation mandating GMO disclosure on labels. Campbell, which had already broken ranks in 2016 by announcing that it would voluntarily disclose GMOs on the labels of its own products, in October announced that it was joining the Plant Based Foods Association. Nestlé, the world’s largest food company, has also decided to leave GMA at year’s end, with other companies, including Mars, considering following suit, Politico claims. The departures are a result of a consumer shift toward fresh, “clean” food and beverages. Credit Suisse recently estimated that the top 20 food and beverage companies lost about $18 billion in market share between 2011 and this year.

8

Amazon.com’s expansion into the grocery industry may be pushing more supermarket chains into the arms of Instacart, a delivery service that helps retailers fill online orders. Albertsons Co., the second-largest traditional grocer in the United States, is the latest to team up with the start-up on same-day delivery. Instacart will provide its service at more than 1,800 of the chain’s stores by the middle of next year, the company announced. Earlier this month, Kroger Co., one of Albertsons’ chief rivals, said it was starting a pilot test with Instacart at some of its stores in Southern California.

GLOBAL ARTIFICIAL INTELLIGENCE MARKET IN F&B INDUSTRY TO DOUBLE IN GROWTH BY 2021

Technavio’s analysts forecast in a new report, Global Artificial Intelligence (AI) Market in Food and Beverage (F&B) Industry 2017-2021, that the global AI market in the food and beverage industry will grow at a CAGR of 42.18 percent during the period 2017-2021. Regulations to improve food safety are the driving force behind major adoption of AI technologies in the food and beverage market, though limited automation in the industry presents the largest challenge. The report covers the present scenario and the growth prospects of the global AI market in the industry, providing a picture of the market by way of study, synthesis and summation of data from multiple sources.

LINEAGE LOGISTICS ACQUIRES EIGHT LA-AREA FACILITIES FROM U.S. GROWERS COLD STORAGE

Lineage Logistics LLC, an international warehousing and logistics company, has acquired eight temperature-controlled warehouses from U.S. Growers Cold Storage (Growers). With the acquisitions, Lineage adds significant capacity to its expansive facility network in Southern California, providing increased storage flexibility and greater access to value-added solutions for its customers. The eight locations encompass more than 12 million cubic feet of capacity in the Los Angeles area and are accessible to Southern California’s major freeways, rail facilities and ocean container terminals, including the 250,000-square-foot transload facility Lineage operates in the Port of Long Beach’s overweight corridor. “While we have existing operations and deep experience in Southern California, this acquisition further represents Lineage’s commitment to grow with customers to optimize their supply chains in a desirable core market,” says Greg Lehmkuhl, president and CEO of Lineage Logistics. “Our aim has, and always will be, to consistently provide the space and solutions when and where our customers need it.” In addition to the acquisition, Lineage will continue Growers’ existing expansion plans to add more than 25,000 pallet positions to its capacity over two phases. The initial phase is targeted for completion in May 2018.

FOOD LOGISTICS | NOVEMBER/DECEMBER 2017

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FOOD ON THE MOVE

LOGISTICS TRENDS IN OUR INDUSTRY

EMERSON MOBILE APP HELPS GROWERS, RETAILERS TRACK PERISHABLE CARGO IN REAL TIME

Emerson’s new Oversight Mobile App for GO Real-Time Trackers enables users to manage shipments from start to finish, and view data directly from their smartphone in real time rather than logging into a computer. “Users of our GO Real-Time products are on the move as much as their cargo. The new Oversight Mobile app gives them the freedom to be anywhere and still maintain complete control over their shipments,” says Frank Landwehr, vice president and general manager, Cargo Solutions for Emerson Commercial and Residential Solutions. The new product launch is the first in the updated naming and look of Emerson’s GO family of real-time trackers and loggers for cargo monitoring, part of Emerson’s consolidated cold chain management that was created following the acquisitions of PakSense and Locus Traxx in August 2016. The app is Android and iOS compatible and available in several languages.

RUAN TRANSPORTATION MANAGEMENT SYSTEMS DEMONSTRATES BOREAS NITROGEN COOLING SYSTEM

Boreas Nitrogen Cooling System, a direct inject nitrogen climate-controlled system for refrigerated transportation, has taken their technology on the road for demonstration. First stop in the journey—Ruan Transportation Management Systems. To evaluate the Boreas System, this past summer in Austin, Texas, Boreas teamed with Ruan, a dedicated contract transportation and supply chain provider of fleet management, logistics management and warehousing; and their customer, a sustainable grocery company. The Boreas trailer went on repeated routes from Austin to the Dallas metropolitan area, transporting grocery cargo set at 35 degrees, with up to four stops per route. With outdoor temperatures reaching 96 degrees, the three-day demonstration illustrated consistent temperature control within the entire trailer, along with significant fuel-cost savings. In addition to the cost savings, the Boreas Nitrogen System emits zero pollutants during operation, providing significant environmental benefits. It also is whisper quiet, making it attractive to operations traveling in noise-restricted areas. And because there are few moving parts, maintenance costs are kept to a minimum throughout the life of operation. “We have been working on this technology for quite some time and are excited to offer our system to the industry. Progressive customers such as Ruan will see that our system exceeds their market needs and provides environmental sustainability, all while reducing costs,” says Fred Norvell, managing member for Boreas.

DAT SOLUTIONS’ MONTHLY FREIGHT REPORT

Freight Volumes, Fuel Push Truckload Rates High By Mark Montague Mark Montague is an industry rate analyst for DAT Solutions, which operates the DAT network of load boards and RateView rate-analysis tool. He has applied his expertise to logistics, rates and routing for more than 30 years. Montague is based in Portland, Oregon. For information, visit www.dat.com.

10

The holiday season is a busy time for truckload freight, but this year, the usual surge in retail goods and groceries for the fourth quarter included a swell of port traffic on both coasts, plus freight related to the ongoing recovery after third-quarter hurricanes. The elevated need for truckload capacity made its way to the spot freight market. In October, demand for refrigerated trucks was up 68 percent year over year. The national average spot reefer rate was $2.31 per mile, the highest monthly average rate since December 2014. By mid-November, the refrigerated load-to-truck ratio was 11.5, meaning there were 11.5 available refrigerated loads on the spot market for every available truck. This demand for trucks, combined with rising fuel prices, are strong indications that spot rates are likely to rise again before the end of December. Factor in a rebounding California freight market, particularly out of Los Angeles, plus uncertainty over the enforcement of the ELD mandate, and you have all the makings of a tumultuous start to 2018.

FOOD LOGISTICS | NOVEMBER/DECEMBER 2017

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www.foodlogistics.com

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FOOD ON THE MOVE

LOGISTICS TRENDS IN OUR INDUSTRY

WORLD DIRECT SHIPPING TO DOUBLE PORT MANATEE SERVICE

World Direct Shipping is doubling its service across the Gulf of Mexico between the state of Veracruz and Central Florida’s Port Manatee. The ocean carrier plans to add a weekly sailing to Port Manatee from the Port of Tuxpan, in the north-central portion of Veracruz. The first sailing from Tuxpan is scheduled for Jan. 12, 2018. “We couldn’t be happier with how the initial service has thrived, with our 2 1/2-day transit time offering the fastest short-sea connection between Mexico and the U.S. Southeast, Northeast and Midwest for refrigerated produce and other cargos,” says Carlos Diaz, director of Palmetto, Florida-based World Direct Shipping. “The addition of the Tuxpan service with the introduction of a second vessel perfectly complements the Coatzacoalcos sailings, providing shippers of produce and other customers with enhanced flexibility. Tuxpan is the closest commercial port to Mexico City, situated 180 miles northeast of the Mexican capital, and is proximate to Mexican paper processing centers.

TESLA SEMI DRAWS QUICK INTEREST FROM MAJOR PLAYERS

The list of companies placing orders for the Tesla Semi electric truck grew quickly following November’s unveiling event. Among the first to place orders were Walmart and J.B. Hunt Transport, followed by logistics giant DHL which ordered 10 trucks, bringing the reported total at the time of publication to about 200 Tesla Semi trucks. The electric automaker’s new semi starts at $150,000 for a model with a 300-mile range and $180,000 for a 500-mile version with a larger battery pack. In comparison, the upfront cost for the diesel trucks it will compete against average between approximately $100,000 and $125,000 each.

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NOVEMBER/DECEMBER 2017 | FOOD LOGISTICS

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COOL INSIGHTS

BY EDUARDO KERBEL

THE COLD CHAIN CHALLENGE Maintaining temperature control for fruits and vegetables in transit is the most critical factor in assuring successful transport.

I KERBEL

n the global transport of perishable goods, the cold chain that stretches from point of harvest to point of sale can be thousands of miles long, with many players participating in the process. With each perishable item having its own distinct optimum temperature and tolerance for temperature fluctuations, how can temperature control for quality assurance be maintained? Considering the volume of goods successfully shipped every day, it’s both complicated and a modern marvel.

Keeping it Cool Eduardo Kerbel joined Carrier Transicold Global Container Refrigeration in 2015, building on a 29-year career focused on postharvest business practices for private industry and government. Today, he works closely with companies to help them advance their success in transporting perishable goods from farm to consumers everywhere.

Up until a perishable item reaches the warehouse stage in its journey from farm to fork, the heavy lifting of temperature control has largely been handled by a container refrigeration system, such as a Carrier Transicold PrimeLINE unit. Now, nearing the final destination, the perishables will leave the security of the container and may be subject to unintended breaks in the cold chain. Ideally, distribution centers should hold fruits and vegetables at the same optimum temperature at which they were transported. However, distribution centers have limited space for fresh produce, as

these centers carry all the goods and products that are distributed to stores and supermarkets. If fresh produce only spends a short time at a distribution center before being dispatched to stores and supermarkets, it may not suffer negative consequences from being kept at temperatures too high or too low. However, if these goods are staged at suboptimal temperatures for even several hours, then deterioration, ripening or chilling injury can be triggered. After being staged in a distribution center, fresh produce will be dispatched for stores, supermarkets and wholesale markets. When perishables are mixed with other commodities during delivery, sometimes the temperature chosen will be the lowest needed for a particular item, usually between 34 and 40 degrees Fahrenheit. This can have detrimental effects on perishables that prefer higher temperatures. It can be prevented, however, by avoiding the mixing of goods that need to be kept at significantly different temperatures or by maintaining a temperature better-suited to the mix of goods being transported. Another solution is to use multi-compartment delivery trucks equipped with multi-temperature refrigeration systems such as a Carrier Transicold Supra 950MT (multi-temperature) unit, which can maintain two different temperature settings simultaneously.

Fresh on Arrival Once fresh produce arrives at its destination, it will often be commercialized

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FOOD LOGISTICS | NOVEMBER/DECEMBER 2017

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at warmer-than-optimal temperatures. Typically, stores and supermarkets maintain ambient temperatures between 68 and 75 degrees Fahrenheit for the comfort of shoppers. Unless stores have the space and equipment to create refrigerated storage areas kept at different temperatures, backroom staging of fresh produce tends to range between 50 and 90 degrees Fahrenheit, depending on the store and time of year. Wholesale markets typically have either very warm or very cold environments, also depending on the location and time of year. Fresh produce usually remains on shelves between one and five days before final sale. Managing fresh produce display areas is a constant battle against time and spoilage (over-maturity), where produce managers work to keep shrink levels low. Store personnel must be trained to manage fresh produce rotation on a first-in/first-out basis, including careful monitoring and replenishment of items on display in the produce area.

Team Effort Maintaining and complying with the cold chain is a challenge for all segments handling fresh produce. Exposing fruits and vegetables to suboptimal temperatures during distribution and commercialization will undermine quality, condition and shelf life potential. We have technology that is better than ever to maintain temperature compliance. The rest is up to those who manage the distribution process so that consumers can enjoy fruits and vegetables that seem freshly picked, even when the originating farm or orchard is half a world away. www.foodlogistics.com

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COVER STORY

THE FUTURE OF FOOD LOGISTICS

The food and beverage industry has witnessed a sea change over the last year, as consumers increasingly demand fresher and healthier foods at the click of a button. Regulations, such as the Food Safety Modernization Act (FSMA) and the electronic logging device (ELD) mandate, created new challenges in 2017, while supply chain visibility and safety continued to be top of mind. Fortunately, advances in mobile technology, the Internet of Things (IoT), big data and analytics, artificial intelligence (AI) and blockchain (to name a few), are introducing faster and more intelligent ways to manage and optimize the food supply chain. Looking toward the new year, one thing is for certain: software and technology will continue to play a major role in the food and beverage industry. To wrap up the year, Food Logistics’ editorial team looks at some of the year’s most talked about trends and the impacts they will have in 2018 and beyond.

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FOOD LOGISTICS | NOVEMBER/DECEMBER 2017

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SHIFTING CONSUMER DEMAND LEADS FARMERS DOWN A DIGITAL PATH BY AMY WUNDERLIN

G

rass fed, organic, all-natural, raised without antibiotics. These are just a handful of the many labels consumers are forced to sift through on a typical visit to the grocery store. What they mean and how they differ continues to be a huge question mark—one that has fueled a consumer desire for more transparency. In their quest to learn more about where their food is coming from, today’s consumers have ignited a growing farm-to-table movement. While this means more demand for fresh goods, it also introduces an onslaught of logistical challenges for farmers. Enter technology...

A Work in Progress Amazon’s recent acquisition of the organic, health food chain Whole Foods sent a wave of panic throughout many industries, including the logistics sector, which wondered, “Is Amazon now a huge step closer to solving the online food delivery puzzle so many startups have wrestled with?” While the key www.foodlogistics.com

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may lie in Whole Foods’ “I believe we’re the only Most of the distribution network, (app) that offers an all-in(mobile) apps one thing is for sure: out there on the clusive system, where we the technology required handle the transaction, the market don’t to deliver fresh food actually deliver. delivery and the payment directly to the consumprocessing. Most of the That’s er’s door is still a work apps that are out there on a huge in progress. the market don’t actually difference.” deliver,” Wind explains. One industry that is Patricia Wind, close to a solution is “That’s the huge difference; co-founder, Farms2Tables the farming industry, our system is completely which relies on a variety seamless. We do everything of online and mobile technologies from start to finish.” to get fresh meat and produce in The platform works by allowing the hands of not only consumers, farmers and sellers to list the prodbut into restaurants, public and ucts that they have available. They private schools and institutions, have total control of the listings, grocery stores, nursing homes and such as availability, pictures, deeven corporate dining facilities. scriptions and price. Then, a captive Farms2Tables (F2T), which market of almost 400 wholesale co-founder Patricia Wind describes buyers on the service can browse as a cross between eBay, PayPal and purchase items from the more and FedEx, but specific to local food than 100 farms participating. distribution, is one of the thousands “It’s very convenient for (the of mobile apps working to solve the wholesalers) to shop specifically challenge many farmers face when from a certain farm,” Wind says. distributing fresh goods directly to “They’re able to put in an order consumers. The edge they have in that is comprised from 50 different the oversaturated market, however, farms, but to them it just feels like is their own logistics network. putting in one order.” NOVEMBER/DECEMBER 2017 | FOOD LOGISTICS

Farms2Tables (F2T) is a mobile app that helps farmers solve many of the challenges they face in distributing fresh goods to consumers.

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COVER STORY

New York-based JSK Cattle Company is transitioning to the online platform, GrazeCart, to help them better distribute their pasture-raised beef locally.

continued

The next step is the FedEx portion of the app. Each product is packaged and labeled with a special barcode by the seller and then picked up and delivered by F2T. F2T provides each seller with a barcode printer, allowing for an efficient system to track each package from when the driver scans the label to when it is dropped off at the wholesaler. The timeline between harvest and delivery is about 20 hours. F2T will turn everything over in under 24 hours and then handle all of the paperwork, such as invoicing and payment, on behalf of the farmers. That’s the PayPal aspect of it. “We’re basically a for-hire trucking company, but we handle everything in a manner that makes the buyer feel like they’re buying from a traditional wholesale distributor,” Wind adds. Today, F2T services more than 90 farms and 300-plus wholesale buyers, and offer more than 4,000 products. They have delivered more than 800,000 pounds of local food, with a rate of fulfillment of 99 percent.

Keeping Your Cool

We handle everything in a manner that makes the buyer feel

like they’re buying from a traditional wholesale distributor.” Patricia Wind, co-founder, Farms2Tables

16

F2T’s platform seems easy enough: List it, sell it, package it, deliver it. But as we know all too well, the transportation of temperature-sensitive perishable goods is far from simple. Luckily for F2T, not only has technology come a long way in the last few decades, so has the transportation industry. F2T relies on refrigerated cargo vans, which allow for the easy division of a variety of goods, from ice cream to honey to lettuce. In addition, they are easy to maneuver in urban environments, where many of F2T’s deliveries are made, and can be driven by anyone with a valid driver’s license, while being relatively affordable. And for F2T, it was all about cost savings.

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LOCAL:

THE TRUE DEFINITION Local is a trend filled with misconceptions and its own set of challenges. Many consumers believe local means healthier, and some have unrealistic expectations about produce accessibility. Though technology can make accessibility less of a challenge, farmers can only provide the produce that’s in season. “Local means in season and available. If there are no peppers, there are no peppers. Consumers need to try to grasp that,” says Patricia Wind, co-founder of Farms2Tables (F2T), adding, “I get requests for asparagus for three months out of the year. The season is three weeks long. They don’t understand that.” Part of the reason they don’t understand, Wind notes, is because there is a lot of misrepresentation in the industry. “Even when they think that they’re going to a farmer’s market, they think they’re shopping local. What does that really mean? Is that 500 miles, is that 50 miles or is that 5 miles,” Wind questions. “Some farmer’s markets have done a really good job of being very strict and saying every product that’s here came from ‘X’ miles away. Other farmer’s markets aren’t that way, and I know personally, food is brought from Pennsylvania into some farmer’s markets in the Hudson Valley.” The re-education of both the consumer and wholesaler has been a significant challenge for F2T, which cites Amazon Pantry as a great model for fresh food distribution. “Amazon kind of has it right, where they sell bundles of produce in a mixed variety of whatever they can get at the moment,” Wind explains. “As a consumer, you’re buying the bundle of greens, and you don’t know if its kale, collard greens or Swiss chard. “The consumer has to be more open and say, ‘All right, I’m going to get fresh product this week. It’s just going to be whatever is available.’” Wind adds: “If you really want to get specifically what you want, you’re going to have to go to a grocery store.”

Not only are the upfront costs for cargo vans much less than a box truck, but the maintenance also is more expensive on large trucks. “Once we worked out the average product mix and how many stops a driver could make, we decided to go with cargo vans versus box trucks. The size needed wasn’t enough to merit going with the box truck and the extra maintenance, regulations and all that goes along with heavier trucks,” explains Wind. F2T currently has three Mercedes-Benz Sprinter cargo vans with refrigerated, insulated units, and two more on order for the new year. And while F2T transports many different types of produce and perishable goods, so far, the cargo vans have addressed all of the mobile apps temperature-related challenges, with one exception: tomatoes. “All of our buyers and farmers would love for their tomatoes to be at 55 to 60 degrees, but we just

don’t have a separate temperature control for areas of the truck to be able to do that. Unfortunately, tomatoes do get transported at 35 or 36 degrees,” Wind explains. Other specialty items, such as honey and flour, which shouldn’t be refrigerated, can be stored in a separate portion of the truck that’s not refrigerated. Frozen products, like ice cream and artisan gelato, are transported in special coolers on the truck that keep the items frozen. As for the delivery aspect, Wind says, “It’s all pretty simple, straight forward trucking. “Our app is not only a sales platform for the farmers and buyers, but provides all of our logistics for routing and deliveries, and our pickups are also processed through the app,” says Wind. “The part that the farmer or the buyer sees is probably less than 50 percent of what the app actually does. Our drivers have individual logins that give them an www.foodlogistics.com

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COVER STORY

continued

THE FUTURE OF 3PLS: EMBRACING TECHNOLOGY AND CHANGING THE CUSTOMER SERVICE GAME By Robert Nathan , CEO and co-founder, LoadDelivered Everyone knows that Amazon has shifted the future of the logistics landscape. What’s less obvious is that it’s not their drones or smart stores that are the biggest disruptors; it is the influence they have had on customer expectations. Consumers are now accustomed to on-demand access, choices from A to Z, lightning-fast deliveries, 100-percent order accuracy and over-the-top customer service. Additionally, consumer behavior—from initial product research, to purchase, to post-purchase review—now takes place entirely online. This has forced manufacturers and suppliers to learn how to collect consumer data and implement machine-learning algorithms that proactively predict their needs and buying patterns—a process wildly different from the reactionary, stock and replenish models of the past. This drastic shift in consumer behavior has caused a parallel shift in the demands on

Because everything comes directly off the farm...

the farmer is our only form of quality control.” Patricia Wind, co-founder, Farms2Tables

18

entirely different section of data that F2T can then use to efficiently plan the routes and provide the drivers with GPS directions.” Prior to pickup, all products must be packaged by the seller and stored in a refrigerated space. F2T will not work with sellers that do not have appropriate refrigeration storage for their products prior to pickup. Quality control is a significant challenge with this format. “In a warehouse, you know there’s somebody who can visually inspect everything as it’s going out. You can set standards and have quality control. Because everything comes directly off the farm and (the delivery drivers) can’t open the boxes, the farmer is our only form of quality control,” Wind explains. In the beginning, F2T brought on any farm interested in the service. Since then, a waiting list has been established, which allows them to pick and choose those who understand selling wholesale orders online and the quality needed. “Now we’re able to control quality at a very early stage by only bringing on farms whose operations we’ve inspected, or who have already been working in wholesale and filling orders for local restaurants. They understand the attention to detail and the quality that’s needed to be successful in this model,” she adds.

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logistics companies. To satisfy manufacturers’ and retailers’ new expectations, 3PLs need to leverage technology and data to streamline processes, increase visibility, and provide fast, reliable service. Successful modern 3PLs have already recognized this. They have been quick to adopt technology and leverage systems, platforms and big data to do their job more effectively. To continue to stay ahead of the curve, they focus on innovating through the following tech initiatives: 

Systems integrations. Modern 3PLs are replacing legacy systems and EDI integra-

tions with more dynamic technology stacks made possible through API integrations. While traditional systems have rigid deployment models and limited connectivity, integrations allow companies to build out customized end-to-end solutions, cut down on internal resource drain, and leverage real-time data for greater visibility. 

Automation. Logistics automation involves reducing manual data entry and receiv-

ing real-time notifications whenever a defined milestone occurs. Why is this important for a modern 3PL? From avoiding costly order-entry errors, to providing customers with the most up-to-date service metrics, to adding scalability and speed to their operations, automation can be a crucial differentiator when it comes to efficiency, customer service and cost savings. 

Big data analytics. Companies throughout the supply chain collect massive

amounts of data every day, but only a few know what to do with it. Consider the many ways modern 3PLs are leveraging data: • Using carrier lane history and preferences to provide highly customized, automated freight matching • Combining market, historical, and social pricing data for effective quoting and mode optimization • Tracking carrier performance metrics like on-time deliveries, OS&D count, etc. to ensure top-notch service • Using internal Business Intelligence reporting tools to benchmark productivity and growth.

A Break from Tradition Heather and Jason Kading, owners of JSK Cattle Company, are one of the many farmers breaking from tradition in search of new opportunities to sell their products. Located in Millbrook, New

York, just 90 miles north of New York City and centered in growing Dutchess County, JSK Cattle Company is known for its pasture-raised meats, which include beef, chicken and, most recently, turkey for the Thanksgiving season. www.foodlogistics.com

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COVER STORY

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In 2016, the couple opened a farm store to give consumers easier access to their locally-grown meat. Heather, whose background is in massage therapy and wellness, had many clients, especially new moms, interested in learning more about truly organic and locally-raised food. The store, located directly on their farm, gave interested consumers a place to learn more about, see firsthand and try the Kading’s meats. And while the brick-and-mortar location has been a success, its rural address poses a problem with customers unfamiliar with the area. However, the owners are well aware of the reach the internet can provide. JSK Cattle has tried a few different options in the past, including F2T, but recently found success with GrazeCart. GrazeCart is an online platform built by farmers for farmers. Seven Sons Farms of Indiana created the platform after struggling to find a website and shopping cart software that would allow them to sell products by weight, take payment after an order was packed, and enable customers to order for pickup locations. There were services that could address one or two of these needs, but nothing that provided a complete solution. “Right now there really isn’t a way to sell meat (direct to the consumer), unless Consumers can have you develop your locally-raised meats own program,” delivered someplace notes Heather. close to them, and “Even with Square know exactly (a mobile payment company), you can’t where it’s coming do pricing by the from and what pound. they’re eating.” “That’s been the Heather Kading, co-owner, hardest thing for JSK Cattle Company me, because right now I have to calculate all the weights and put them on all the products, or do it when people are checking out, which takes time to do. So with GrazeCart, I can put in my price per pound, my

20

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Farms2Tables (F2T) relies on refrigerated cargo vans, which allow for the easy division of mixed goods, from ice cream to honey to lettuce.

inventory, and the average weights of the packages. Now people can order online and it gives them an estimated total.

All About Logistics GrazeCart solves one piece of the puzzle for producers like Heather and Jason Kading, but ultimately placing the product in the consumer’s hand is still a challenge. F2T works well for large farms that can keep up with the demand and control the quality required by a restaurant or wholesale buyer, but smaller operations depend on a more piecemeal approach. “We’ve run into some growing pains. Based on what our supply is and what we’re getting back from the butcher, working with consumers is our focus,” Heather says. “The issue we’re running into with restaurants is working with the butcher to portion meat cuts to the exact same size,” she explains. “It’s also hard to work with the restaurants with the supply that we have right now. We don’t have enough to supply them on a regular basis, so that’s why I haven’t been doing quite so much with F2T.” For the time being, JSK Cattle

plans to rely on the idea of a “buying club.” So instead of people coming to the farm to pick up the product, they would commit to a specific pickup location. The details are still in the works, but Heather has plans for a four-week cycle. For example, customers would meet at Location A on the third Saturday of the month a 9 a.m. They would have a half-hour window to pick up their order, which is already paid for through GrazeCart. “It could literally be somebody’s driveway,” says Heather. “We might meet 10 to 15 people in someone’s driveway or place of business. And they all pick up their orders that they’ve already ordered online.” For now, Heather serves as the delivery driver, but she hopes someday they will be able to hire a designated driver. “Everyone I’ve talked to about the program is really interested in it,” she adds. “One, because you don’t have to spend the time looking for it in a grocery store or driving to different places to get locally-raised meats. And two, they can have it delivered someplace close to them, and know exactly where it’s coming from and what they’re eating.” www.foodlogistics.com

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COVER STORY

continued

NEXT ON FOOD SUPPLY CHAIN MENU BY JOHN R. YUVA The food supply chain has a new ally in blockchain to help grapple with safety and regulatory issues.

F

ew can argue that the global food supply chain is rife with complexities. It is an image of a supply network with myriad actors operating with disparate systems all with the goal of delivering food to the customer. Within such a complex ecosystem, numerous questions abound. Regardless of whether it’s a question of origin, regulatory compliance or the like, most are centered around the same issue—transparency. While elusive for many supply partners in the food chain, transparency now has an ally in blockchain technology.

Blockchain Demystified In the food world, blockchain could not have arrived at a better time with several high-profile cases of food contamination and fraud making headlines. While still undergoing pilot testing within companies and among their supply chain partners, blockchain is poised to transform the food industry. But what is blockchain? Within a supply chain context, it’s an encrypted digital ledger shared by multiple supply chain partners that provides permanent transparency and validation of transactions. C. John Langley Jr., Ph.D., clinical professor of supply chain management at Penn State University and coauthor of the 22nd Annual 2018 Third-Party Logistics Study, indicates current study results suggest that increased desire for visibility within the supply chain is driving increased interest in blockchain technology, which breaks each movement down into a block and documents transactions every time a shipment changes hands. Linking the blocks

22

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together creates a record for parties involved in the process and provides specific details associated with each movement, which all parties can access. Also, as reported in the study, “This creates a permanent, digital history as products move throughout the supply chain from the original source through the final leg of the journey. The goal is to create one version of the truth, link information, create transparency surrounding all parties involved in the supply chain, and identify how they participated in the flow of a good or service. As a bonus, the digital history is not owned or controlled by any one trading partner, so it can be available for all verified partners to use.” No one party can modify, delete or append any record without the consensus from others on the network, says Langley. “Data generated through blockchain technology could provide more opportunity to analyze information, which is becoming more important in today’s data-driven supply chain. Blockchain also has the potential to create demand chains because it closely tracks and transmits data in real time related to consumption.” Lance Koonce, partner for Davis Wright Tremaine LLP and head of the firm’s cross-practice blockchain initiative, says blockchain can address those issues around complex-

ity and opaqueness by providing verifiable, granular data. “There’s excitement around the ability for blockchains to enable improved, more detailed tracking of food products,” he says. “There’s also the collaboration aspect where sharing of critical information can occur among parties that traditionally operate in separate silos. Thus, when an incident of food contamination occurs, for example, rather than taking days or weeks to track the source, it might now take minutes through improved transparency.” The reality is that blockchain mirrors a very decentralized and fragmented world, says Raja Ramachandran, CEO for ripe.io, a company developing its own blockchain for the food system. Blockchain allows that fragmented world to bind its data, its workflows and its activities into something that people can recognize as a record of truth. A company that manages the ripening process for produce is connected to cold storage, transporters and ultimately buyers with the goal of providing optimally fresh produce at the time it’s needed. However, how is that process validated? How is it true? Ramachandran says those questions can be answered on the blockchain as a single activity of record. Blockchain provides the ability to segregate the data capture and control the data sharing to validate that things are occurring as intended from the fulfillment process through transportation tracking to final purchase. www.foodlogistics.com

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12/7/17 8:49 AM


COVER STORY An opaque supply network leaves the window open

for fraud and food safety breaches.” Lance Koonce, partner, Davis Wright Tremaine LLP

continued

“The blockchain is really this fabric and code automation that binds all that together, and more importantly asks each of the participants to effectively provide a consensus that the claim or assertion is true,” he says. “If someone certifies something, you typically rely on a third party. Now, the entire supply chain can self-certify because it’s looking to agree with each other.”

Improving Food Supply Chains Through Blockchain With the technology’s focus on transparency and verification, blockchain is an ideal solution for the global food supply chain. Still in its infancy, blockchain can have a significant impact on food safety, fraudulent food, and sustainability and corporate social responsibility. Food safety and fraud transparency. The Centers for Disease Control and Prevention estimates that 48 million people annually become sick from foodborne illness, leaving 128,000 hospitalized and 3,000 dead. Many consumers are unaware of where their food comes from and how it’s produced—blockchain provides that visibility. Koonce says supply chain opacity runs counter to the emphasis on transparency that is emerging in the food marketplace. Companies want the ability to tell stories about honest products and provide accurate labeling. “You can’t control what you can’t see,” says Koonce. “When you have an opaque supply network, it leaves the window open for such things as fraud and food safety breaches. Much of it stems from a lack of accountability, resulting in the inability to mitigate those risks and respond quickly if they arise.” Ramachandran agrees and adds that the lack of trust and seeking of information about what we eat and feed our families is driving the need for transparency, accounting for the single-largest issue affecting global food supply chains.

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Photo Credit: 10-4 Systems

FINAL MILE DELIVERY, FOOD SAFETY AND QUALITY, AMONG TOP CONCERNS IN 2018 By Lara L. Sowinski

Shippers and carriers are continually looking to boost visibility throughout the supply chain. As direct-to-consumer shipments grow, so too does the complexity for providing visibility for the “final mile” of delivery. At 10-4 Systems, this is one of the several challenges being addressed. Travis Rhyan, executive vice president and general manager, and Adrian Parkhideh, director, customer strategy, note that, “10-4 has food-focused customers that are utilizing our platform for final mile delivery successfully. The primary struggles that the final mile piece presents for transportation providers are around having multiple service providers and, in some cases, antiquated technology. For those providers, the final mile piece generally does take more effort than a standard shipper, but the data aggregation and dashboard output components of the 10-4 platform are streamlined and built to absorb multiple service providers, many moving parts, and vast amounts of data.” In addition, “We are seeing that a lot of the food service providers are enhancing current technology to keep pace with the customer and market demands, but they are at various stages in doing so. For some of them, the effort may be slightly more, but the value that 10-4 is delivering is worth the additional efforts for all parties.” At the same time, Rhyan and Parkhideh report that compliance with the Food Safety Modernization Act (FSMA) remains top of mind for customers, and they’re making investments to meet compliance standards while simultaneously improving the transportation and handling of food shipments. “Many shippers are asking for temperature monitoring and alerting. What we are seeing is that this is not just for becoming FSMA compliant, but also to drive quality to their end customers. In today’s market customers are more demanding. Not only do they want to know how the product they are purchasing has been produced and sourced at a high level, but also that the product been transported in a safe and efficient manner.” Indeed, meeting customer demands is critical, and 10-4 Systems says this will remain a key focus in 2018, with technology helping to support that quest. “The biggest thing we are hearing from our shipper/carrier community is their passion for satisfying their customers’ demands,” say Rhyan and Parkhideh. “For these shippers and carriers, customers are not just the end customer consuming the product, but warehouses and stores directly. People working at these facilities have technology on-demand outside of work that makes their lives easier, and they want that same experience when they are at work to make their jobs more productive. Many shippers and carriers are also finding that being on the leading edge of technology not only gives them a competitive edge, they are also finding that servicing their customers more effectively helps them build stronger partnerships through transparency.”

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COVER STORY

Some 42 percent of consumers said they are willing

to pay more for sustainable products.” The 2015 Sustainable Food Industry-Statistics and Facts

26

continued

“This is not central to only the United States but globally as well. And from a business perspective, transparency goes beyond just risk management for farmers and large companies, but also brand integrity. People are asking Unilever, Campbell’s, Pepsi and others, including farmers, about their food, how it’s grown, processed, transported and the safety standards involved.” Sustainability and corporate social responsibility (CSR). Now, more than ever, consumers are holding food companies accountable for their environmental and social impacts on the world. According to Statista’s 2015 Sustainable Food Industry—Statistics and Facts, “Some 42 percent of North American consumers said they are willing to pay more for sustainable products. In addition, more than half of American consumers said they depend on the company to disclose information about the health and sustainability of their products, and three quarters expressed a desire for more companies to report this kind of information.” With many companies releasing annual sustainability or CSR reports, blockchain provides an additional layer of supply chain accountability and transparency.

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This includes agricultural data retrieved from sensors that measure soil quality as well as critical information from food processing equipment. Ramachandran says there are two dynamics occurring in the world. First, is meeting food demand for vastly growing populations. According to the High-Level Expert Forum’s How to Feed the World 2050 report, the world population is expected to grow by over a third, or 2.3 billion people, between 2009 and 2050. To feed such a growing population requires low cost and wide accessibility, but also reengineering of food production processes to avoid such things as food spoilage that accounts for nearly 25 percent of water waste. Second, is recognizing the movement toward sustainable soil management and growth, with emphasis on locally grown produce, says Ramachandran. Major food brands are feeling the effects of this trend as are grocery stores and chemical companies that provide incentives for low-carbon farming. “There’s a great deal of science and effort around yield as well as understanding how to maximize what comes out of a field and the associated proteins,” he says. Ripe.io has conducted small pilots that showcased the end-to-end chain from seed to mouth of fresh

produce, capturing data related to field growth conditions, temperature data within distribution trucks and information extracted from sensors on companies’ food processing machinery, adds Ramachandran. “We then build a model based on the data to incorporate smart contracts around the process. Regardless of your data methodology (barcodes, RFID, QR codes, etc.), a self-executing code (smart contract) uses the data on the blockchain to issue a certification of verifiability and traceability,” he explains.

Impact of Blockchain for Global Food Supplier Where can blockchain impact CSR goals and initiatives on a global level? As the world’s largest tuna exporter, Thai Union in Bangkok operates among an array of supply chain complexities. Most notably, the fishing industry’s fight to eliminate illegal fishing and human rights abuses. The company envisions the use of blockchain throughout its global operations and supply chain. Darian McBain, Ph.D., global director for sustainable development for Thai Union, says the company is committed to demonstrating complete supply chain transparency and traceability. Thai Union implemented a traceability system enabling it to monitor and manage the exclusion of illegal, unreported and unregulated fish from its supply chain. However, the system is partly paper-based. “Paper-based systems are not perfect. Thus, we’re exploring and implementing digital traceability solutions to help address those inefficiencies and errors. Digital traceability in supply chains is a big step toward ensuring sustainability,” says McBain. “We were the first company globally to introduce a can tracker on canned tuna products, allowing consumers to trace their product back to species, vessel, ocean and fishing trip. We are also looking at using digital traceability to improve connectivity at sea for workers.” McBain foresees blockchain as an opportunity to secure supply chains www.foodlogistics.com

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COVER STORY What blockchain does is creates a brighter light

on the entire activities of an industry.”

Raja Ramachandran, CEO, ripe.io

28

continued

through the use of cryptographic signatures or a shared ledger, and assurance for each step of the data chain, from sourcing to production to the consumer. The evolving use of blockchain technology for digital payments across borders and for digital identity is also appealing for the work the company does to support safe and legal migration of workers. There are several traceability programs Thai Union is implementing where blockchain can be most valuable in tracking supply chain transparency and regulatory compliance. For example, McBain says blockchain technology teamed with its tuna can tracker tool could provide verification for each block of the chain on the flow of goods. “Blockchain can also help ensure we’re meeting regulatory and customer requirements, as well as providing a consumer interface that is both informative and transparent about the global food supply chain.” Thai Union launched a digital traceability pilot program where maritime telecommunications provider Inmarsat installed its Fleet One terminals on fishing vessels in Thailand. “The program tests scalable platforms for electronic catch data and traceability systems that utilize mobile applications and satellite connectivity, making it possible to demonstrate true electronic end-to-end traceability and supply chain management,” says McBain. In the same pilot program, crew members, captains and fleet owners were trained on “Fish Talk” chat applications developed by Xsense— an industry first for Thai fisheries, says McBain. “More importantly for

FOOD LOGISTICS | NOVEMBER/DECEMBER 2017

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human rights, the pilot brings with it the ability for workers on the vessels to use ‘Fish Talk’ to communicate with loved ones back on shore. There is so much potential around blockchain technology, and we are exploring how to use it throughout our supply chain to complement our pilot programs.”

Value of Blockchain Is Evolving With the possibility to improve supply chain transparency and traceability and condense complex supply chain transactions into verifiable, trusted data blocks, there’s promising potential for blockchain. In its May 2017 benchmark survey, Blockchain in Supply Chain: Edging Toward Higher Visibility, Chain Business Insights reveals that supply chain professionals view improved supply chain visibility/transparency (45.9 percent); reduced transaction costs (24.3 percent); and enhanced trust between supply chain partners (13.5 percent) as the primary advantages of blockchain. However, Koonce says blockchain is not a magic solution for everything. It’s simply a different way of sharing information, but at a rapid speed with greater detailed data among different parties. There needs to be caution in assuming blockchains are going to replace existing software. “Blockchains may not scale as easily as other software solutions. They’ll be used where it’s most helpful—in processes where many parties are involved, high levels of complexity exist and information requires transparency,” says Koonce. “If you can provide better, quicker data, then that on its own provides greater efficiencies because parties can improve their decision-making.” An area where blockchain can enhance efficiencies and lead to potential innovations is billing and invoicing. Koonce says an exciting segment, although still in the development phase, is smart contracts where parties operating on the same blockchain enter into con-

tracts and execute them through an automated process. This can lead to faster payment times between supply chain partners. “We could see the development of entirely new types of payment systems as blockchains are implemented,” says Koonce. “This, in turn, may lead to fewer middlemen in the supply chain who currently certify transactions among parties. Blockchain automates that issue of trust, reducing or eliminating parties that provide some of those roles.” Ramachandran agrees with Koonce that blockchain has the ability to transform industries and processes over time, but it doesn’t happen overnight. People need to get used to the notion of trust and everyone has a version of it. “What blockchain does is creates a brighter light on the entire activities of an industry. There will be time to adjust and get people comfortable with that,” says Ramachandran. He adds that there are going to be several blockchains—consortium chains, application-specific chains like traceability, IoT-driven chains, financial chains, insurance chains and the like. What should be avoided is forcing players in an industry to select one of many services. Rather, promote assurances that there’s interoperability amongst the various blockchains. “If multiple blockchain providers have worked out those business models, then it should be seamless to the user,” says Ramachandran. “The blockchains must align with business models so that the individual user and individual companies can subscribe to one service with access to many.” Blockchain provides the ability to view supply chains from a 30,000foot perspective and say, “How can we make them better?” “It’s fair to say that if blockchains can help the global food supply chain increase accountability and transparency, make transactions more efficient and reduce complexities, those are enormous steps,” says Koonce. www.foodlogistics.com

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3PL/REFRIGERATED LOGISTICS

BY BARRY HOCHFELDER

C A I N K C I N ! C H E E RS ! W

People have been drinking wine for 10 millennia. Modern logistics makes it easier to enjoy around the globe.

ine has been with us for a long time, dating back to the Neolithic China site of Jiahu where traces of a fermented beverage made from rice, honey and fruit were found on pottery shards dating as far back as 7,000 B.C. Today, global production of wine is around 247 million hectoliters, which equates to more than 6.5 billion gallons (one hectoliter equals 100 liters, or 26.418 gallons). Italy, France, Spain and the United States are the top four worldwide producers, although 2017 has seen a dramatic drop in production—the lowest level this century—due to severe April frosts in Italy, France and Spain. Later, the Italian grape crop was further damaged by a drought. The country’s 2017 harvest dropped 23 percent, but experts expect a return to normalcy next year. Despite these disruptions, there’s still a lot of wine to be safely transported around the world. While Nielsen says that 20 million Americans drink wine, and

38 percent of them consume it at least once a week, Americans still rank only 42nd in per capita wine consumption. The Wine Institute says that the United States exported 412.7 million liters (45.9 million cases) of wine in 2016. The International Organization of Vine and Wine says 43 percent of all wine is consumed in a country other than where it is produced, and expects the global wine market to reach $380 billion by 2022.

From Vineyard to Home Since its inception in Germany in 1844, JF Hillebrand has been dedicated solely to the business of beverage logistics, with an office or representative in every major beverage market in the world. Clearly, the global increase in wine consumption is a boon to the business, says Jessica Brady, marketing and sales development manager at JF Hillebrand, based in Benicia, Cal-

30

FOOD LOGISTICS | NOVEMBER/DECEMBER 2017

FLOG1117_30-33_3PLSR.indd 30

ifornia, in the heart of California’s wine country. “As a product, wine requires different treatment for transport—it’s not one-size-fits-all shipping when you are moving estate bottled wine from France to New York, or bulk wine from Chile to California,” notes Brady. “You have to consider the geography, seasonality and various regulatory compliance concerns for not only the product inside the bottle, but also the labels and packaging, even down to the type of pallet used.” UPS has also taken note of the surge in wine consumption. For example, it is expanding its global alcohol shipments to 39 wine importing and nine spirit importing countries. The company will ship to 23 countries in Europe, including Belgium, France, the Netherlands, Switzerland and the United Kingdom. As it is with most things, China’s developing middle class also is driving demand for wine. www.foodlogistics.com

12/6/17 3:44 PM


KAMPAI!

Last year, China imported $890 million of spirits and is expected to pass the United States as the world’s third-largest wine importer. UPS will ship wine, beer and liquor to 11 Asia-Pacific countries, including China, Japan, New Zealand, South Korea and Thailand. Shipments also will be expanded to Canada, Mexico, Argentina and the Dominican Republic. UPS is well set up for the challenges of international shipping, with a global footprint of 1,800 operating facilities, 108,000 delivery trucks, more than 200 aircraft and 430,000 employees, says spokesperson Natalie Godwin. The company is “positioned to assist U.S. and international shippers to meet their customer demand in this highgrowth market,” she adds. Yusen Logistics (Americas) has developed relationships in domestic beer, wine and spirits transportation for more than 25 years and has partners that understand bailment www.foodlogistics.com

FLOG1117_30-33_3PLSR.indd 31

 JF Hillebrand’s VineLiner reduces the effect of extreme temperature shocks and humidity infiltration that can cause damage to the product.

 The Port of Oakland is a key embarkation point for overseas shipping, especially from the nearby California wine country.

(when actual ownership changes typically going to be sold in smaller hands) and state laws and licensing, quantities, shipped in bottles and says Kimberly Dugan, manager, may even have special packaging enterprise account, Transportation such as wooden cases,” says Brady. Group at Yusen Logistics (Americas). “If a customer doesn’t have other “International and domestic trafproduct to consolidate to fill a shipfic is sourced very differently,” Duping container or a truckload, they gan explains. “At Yusen can opt for less-than-conWine Logistics, we are trying tainer or less-than-truckrequires different load, beverage-only to bridge that gap to allow for a single-source treatment for consolidation services. option. It can be difficult transportation. The frequent fixed sailing because domestic traffic It’s not one- schedules, combined with moves in a 53-foot box, size-fits-all temperature protection and international moves shipping.” requirements allow them [typically] in a 40-foot to control their inventory Jessica Brady, marketing box. That being said, the and sales development and investment costs while manager, JF Hillebrand chassis to support the maintaining the product box will run in different integrity in transit.” networks and sometimes call for On the other end, she says, different trucking partners.” fast-moving, high-volume wines There also are differences in will have a different logistics supply logistics between fine wines and chain. These customers can achieve mass consumption wines, so logisgreater economies of scale in transtics must be tailored to the product. port by importing foreign wines in “On the fine wine side, luxury wines bulk and bottling it at the destipriced at over $50 a bottle are nation market. It allows them the NOVEMBER/DECEMBER 2017 | FOOD LOGISTICS

31

12/6/17 3:44 PM


3PL:

continued

Each state has its own liquor laws, and

flexibility and quick reaction time to adapt labels, packaging and product in pace with the local consumption markets.

this can be very Following the Rules tricky.”

Kimberly Dugan, manager, Transportation Group, Yusen Logistics (Americas)

 Wine is a temperaturesensitive product and must be protected at every stage of storage, packaging and transportation.

32

Regulatory issues also play a major role in the transportation of alcoholic beverages. “Each state has its own liquor laws, and this can be very tricky,” Dugan points out. “It is imperative that each trucking partner you select understands the state laws they are traveling in.” UPS has established an International Alcohol Shipping Guide to provide a high-level view that helps vintners, brewers and alcohol producers navigate the rules and regulations of global shipping requirements across borders. “Regulatory issues affect the documentation required to clear a shipment and are unique for each destination,” Godwin says. “A company doing business in the U.S. must have an appropriate license and ensure all rules of the three-tier system are followed. However, if that same company wants to sell wine to Chinese consumers, only one set of requirements is needed to access the market. Only a few countries have state/provincial requirements that must be followed in addition to country regulations.” It’s not getting any easier, as regulations show, explains Brady. SOLAS (Safety of Life at Seas) is an international regulation that went into force in July 2016 that required every ocean container moving beyond 200 nautical miles

FOOD LOGISTICS | NOVEMBER/DECEMBER 2017

FLOG1117_30-33_3PLSR.indd 32

offshore to provide a verified weight before being loaded onto cargo ships. It applied to all member states of the International Maritime Organization, more than 170 of them, to clarify national and local procedures, implementation and enforcement of the rule. “As you can imagine, it was all a bit chaotic as all the players in the transport industry worked to sort it out leading up to the deadline,” she says. “Fortunately, in the U.S., port terminal weigh-in procedures were adopted to meet the mandate with little disruption.” Add to that, the Dec. 18 deadline for electronic logging devices for all commercial truck drivers in the United States is looming. “Everyone is watching very closely how this will impact capacity and pricing on over-the-road wine transport, especially as capacity has been extremely tight following the hurricane recovery efforts in Texas and Florida. I think we’ll see a renewed interest in rail alternatives moving forward,” Brady says.

thermal shocks without the financial commitment of fully refrigerated transport.” To that end, JF Hillebrand has worked with the wine industry to develop a cost-effective protective liner foil system called VinLiner. “It reduces the effect of extreme temperature shocks and humidity infiltration that can cause damage to the product, as well as to labels and packaging,” Brady explains. The Port of Oakland is a key embarkation point for overseas shipping, especially from the nearby California wine country. As a landlord port, its role is to ensure refrigerated customers’ cold chain requirements are met by supporting projects and initiatives that enable cargo to move through the port efficiently. For example, construction began in June 2017 on Cool Port Oakland, a new 280,000 squarefoot refrigerated distribution center. Cool Port Oakland will add to the port’s existing cold storage facilities to help beverage producers increase the efficiency and timeliness of their exports.

Keeping It Cool

A Bright Future

Wine is a temperature-sensitive product, of course, and must be protected at every stage of storage, packaging and transportation. “To provide guaranteed temperature in transit, all moves occur in climate-controlled traces and shipping containers. For imported wines, ocean containers are set at the customer-specified temperature, and electronic data loggers placed with the unit measure temperature and humidity levels en route,” says Brady. “It is the sudden spikes or drops [in temperature] that are the most damaging, rather than gradual shifts. Depending on the areas involved, the climate, and/ or value of the product, customers may still want to limit the impact of

Despite the difficulty and complexity of wine import, export and sale to a demanding, growing consumer market, the future looks bright. “Alcohol consumption in the U.S. is up considerably and seems to be the only commodity that is recession-proof,” says Yusen’s Dugan. “As the product lines grow in diversity to accommodate a variety of palates, it is my belief that we will continue to see growth in this market.” Barry Hochfelder is a freelance journalist who has covered a variety of industries in his career, including supply chain. Hochfelder is based in Arlington Heights, Illinois. www.foodlogistics.com

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FL 100+ AWARDS

BY EDITORIAL STAFF

THE 2017 FL100+ Food Logistics’ annual list honors the software and technology providers that ensure a safe, efficient and reliable global food and beverage supply chain.

2017

360data Website: www.360data.com Year Founded: 1999 Number of Employees: 30 Number of Food/Bev Customers: Varies Solution Name(s): 360data B2B Integrator, 360data TMS, 360data OMS Worth Noting: 360data’s unique B2B Integrator product allows for infinite flexibility and scalability, providing the client with a 360-degree view of their supply chain. Plus, the solution can integrate legacy programs, aid in company mergers and streamline data reporting.

3GTMS Website: www.3gtms.com Year Founded: 2013 Number of Employees: 75 Number of Food/Bev Customers: 8 Solution Name(s): 3G-TM Worth Noting: 3G-TM is the only transportation management system (TMS) that enables customers to self-configure the solution to their own business needs without needing a vendor to make changes. In addition, 3GTMS’ integration tools allow customers to shave weeks off typical integration times, thanks to built-in integration specific to their TMS, a library of templates and pre-established connections to most major LTL carriers.

10-4 Systems Website: www.10-4.com Year Founded: 2012 Number of Employees: 50 Number of Food/Bev Customers: 7 Solution Name(s): Enterprise Freight Portal Worth Noting: 10-4 Systems holds an exclusive partnership with Riskpulse, a supply chain risk analytics company, enabling customers to visualize shipment risk on a map and know the environmental threats posed to shipments with a cargo-specific risk score up to 10

34

FOOD LOGISTICS | NOVEMBER/DECEMBER 2017

days in advance. The solution allows customers to receive context-relevant insights needed to proactively mitigate risks to shipments by adjusting shipment timing, routes, equipment or even modes before cargo is loaded.

AFS Technologies Website: www.wms.afsi.com Year Founded: 1983 Number of Employees: 500+ Number of Food/Bev Customers: 1,000 Solution Name(s): AFS ERP, AFS Warehouse Management System, AFS Order Management System, AFS Electronic Proof of Delivery, AFS Retail Execution, AFS G2 Analytics, AFS Gateway Worth Noting: The AFS Warehouse Management System (WMS) for distribution centers offers functionality at a fraction of the total cost of ownership associated with other enterprise-level systems. The WMS’s Tier 1 functionality, which includes integrated labor standards, voice picking, traceability, dynamic slotting and 3PL billing, maximizes productivity and ensures inventory accuracy.

Allen Lund Company Website: www.allenlund.com Year Founded: 1976 Number of Employees: 450+ Number of Food/Bev Customers: 1,200 Solution Name(s): Truck Load, LTL TMS, Spot Pricing, Scheduling Worth Noting: Backed by more than 40 years of freight transportation industry expertise, ALC understands the demands and challenges the food and beverage industry faces every day. Their software is designed to help customers effectively and efficiently address those demands by simplifying the processes involved in managing their transportation and supply chain network.

Arkieva Website: www.arkieva.com Year Founded: 1993 Number of Employees: 100+ Number of Food/Bev Customers: 20 Solution Name(s): Arkieva Demand Planner, Inventory Planner, Supply Planner, S&OP Central Worth Noting: Arkieva does not employ a one-sizefits-all approach, even when working with similar businesses. The Arkieva supply chain planning solution is configured to capture the uniqueness of a businesses’ current operations, making it easier to see improved results in less time.

www.foodlogistics.com


BluJay Solutions Website: www.blujaysolutions.com Year Founded: 1977 Number of Employees: 1,080 Number of Food/Bev Customers: 800+ Solution Name(s): BluJay Transportation Management, Fleet Management, Yard Management, Warehouse Management, Customs Management, Compliance Solutions, Control Tower, Logistics as a Service Worth Noting: Over the past 18 months, BluJay has attained several significant milestones, including an exclusive partnership with Lineage Logistics, synching BluJay’s industry-leading transportation solution and Lineage’s nationwide cold storage network to optimize customers’ end-to-end supply chains and drive dramatic cost savings. In addition, BluJay has fully integrated their product portfolio, delivering a seamless customer experience and a modern, intuitive user interface.

CAMS Software Corporation Website: www.prospero.com Year Founded: 1997 Number of Employees: 27 Number of Food/Bev Customers: 100+ Solution Name(s): Prospero Outbound, Prospero Inbound, Prospero Mobi, CAMS Professional Worth Noting: Purpose-built for the logistics-intensive grocery industry, Prospero Solutions’ comprehensive platform helps

clients make strategic, cost-saving decisions by delivering integrated, real-time data from varied sources. Prospero combines a 100-percent deployment success rate and a customer support team with deep industry expertise to give transportation professionals the confidence and visibility they need to support optimal transportation efficiency.

CaseStack Website: www.casestack.com Year Founded: 1999 Number of Employees: 250+ Number of Food/Bev Customers: 1,000+ Solution Name(s): CaseStack Retailer Consolidation Programs Worth Noting: CaseStack’s WMS allows full data security and 24/7 visibility of a supplier’s supply chain processes. It’s webbased 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.

CASS Information Systems Website: www.cassinfo.com Year Founded: 1908 Number of Employees: 1,035 Number of Food/Bev Customers: 25 Solution Name(s): Freight audit, payment and business intelligence services

We make a big deal over the tiniest items. Old Dominion’s focus on premium service means every item arrives with one of the lowest claims ratios and one of the best on-time records in the industry. OD Domestic offers: • More than 225 service centers nationwide • Competitive transit times and pricing • Proactive shipping solutions

For more information, visit odfl.com or call 1-800-235-5569. Old Dominion Freight Line, the Old Dominion logo, OD Household Services and Helping The World Keep Promises are service marks or registered service marks of Old Dominion Freight Line, Inc. All other trademarks and service marks identifi ed herein are the intellectual www.foodlogistics.com NOVEMBER/DECEMBER 2017 | FOOD LOGISTICS property of their respective owners. © 2017 Old Dominion Freight Line, Inc., Thomasville, N.C. All rights reserved. Major League Baseball trademarks and copyrights are used with the permission of Major League Baseball Properties. Visit MLB.com.

35


1 10-4 Systems

www.10-4.com • • • • • • • •

2 360data

www.360data.com • • • • • • • • • • • • •

3 3GTMS

www.3gtms.com • • • • • •

4 4flow

www.4flow.com • • • • • • • • • •

Other

Yard Management

Wireless Technology

Warehouse Management System

Transportation Management System

Systems Intergration

Supply Chain Management

Routing and Scheduling

Radio Frequency Identification

Predictive Analysis

Mobile Technology

Load Planning

Internet of Things (IoT)

Inventory Control

Global Trade Management

Freight Payment

Enterprise Resource Planning

Demand Management

Data Synchronization

Customer Relationship Management

Barcode Systems

2017

Automated Material Handling Solutions

THE 2017 FL100+

5 4SIGHT Supply Chain Group www.go4sight.com • • 6

ACT Operations Research

www.act-operationsresearch.com • • • • • • • •

7 AFS Technologies Inc.

wms.afsi.com • • • • • •

8 Alchemy Systems

www.alchemysystems.com •

9 Allen Lund Company LLC www.allenlund.com • • • • • 10 Aptean

www.aptean.com

11 Arkieva

www.arkieva.com • • • • • • •

• • • • • • • • • • • • • • • • • • •

12 ARMADA

www.armada.net • • • • • • • • • • • • •

13 ArrowStream

www.arrowstream.com • • • •

14 Axiom Exergy

www.axiomexergy.com

15 Banyan Technology

www.banyantechnology.com • • • • •

16 Becker Logistics

www.beckerlogistics.com • • • • • • • •

17 Blue Horseshoe

www.bhsolutions.com

• • • •

• • • • • • • • • • • • •

18 Blue Link Associates Limited www.BlueLinkERP.com • • • • • • • • 19 Blue Ridge Global

www.blueridgeglobal.com • • • • • • •

20 BluJay Solutions

www.blujaysolutions.com • • • • • • • • •

21 BravoSolution

www.bravosolution.com •

22 C3 Solutions

www.c3solutions.com • • •

23 CAMS Software Corporation www.prospero.com • • • • • • • • 24 Cardinal Logistics Management www.cardinalhostedlogistics.com

• • • • • • • • • •

25 CaseStack

• • • • • • • •

www.casestack.com

26 CASS Information Systems Inc. www.cassinfo.com • 27 CHEP Container Solutions www.cheppallecon.com • • • • • • • • • • • • 28 Cimcorp Automation Ltd www.cimcorp.com

• • • • •

29 Cleo

www.cleo.com • • • • • •

30 Cloud Logistics

www.gocloudlogistics.com • • • • • • • •

31 Cooltrax

www.cooltrax.com • • •

32 Corcentric

www.corcentric.com • •

33 Crown Equipment Corporation www.crown.com

• • • • • •

34 Datalliance

www.datalliance.com • • • • • • • • •

35 Deacom Inc.

www.deacom.com • • • • • • •

36 Decisiv

www.decisiv.com • • • • • • • •

37 DeltaTrak Inc.

www.deltatrak.com • • •

38 Demand Management Inc. www.demandsolutions.com • • • • • 39 DMW&H

www.dmwandh.com

40 E2open

www.e2open.com • • • • • •

• •

41 Elemica

www.elemica.com • • • • • • • • • • • •

42 Emerson

www.emerson.com/cargo • • • • • • • •

43 enVista

www.envistacorp.com

44 Esker Inc.

www.esker.com •

45 EVS LLC

www.evssw.com • • • • • •

46 ExtenData

www.mobileconductor.com • • • • • • •

47 Financial Transmission Network Inc. (FTNI)

www.ftni.com • • • •

48 Fleet Advantage

www.fleetadvantage.com • •

• • • • • • • • • • • • • • •

49 Flux Power Holdings Inc. www.fluxpwr.com • 50 FoodLogiQ

www.foodlogiq.com • • • • • • • •

51 FreightCenter

www.freightcenter.com • • • • • • • • •

52 GPS Insight

www.gpsinsight.com • • • •

53 Green Mile LLC

www.greenmile.com • • • • • • • • •

54 Haven

www.haveninc.com •

55 HighJump

www.highjump.com • • • • • • • • • • • •

56 Highway 905

www.highway905.com • • • • • • • • • • •

57 ICIX

www.icix.com • • • • • •

58 iFoodDecisionSciences

www.idsfoodsafety.com • •

36

FOOD LOGISTICS | NOVEMBER/DECEMBER 2017

www.foodlogistics.com


Worth Noting: While there are a number of challenges facing the food and beverage industry, one that continues to be important is its low-profit margins. Cass’ services are designed to help keep transportation expenses down and provide efficiencies and better decision-making capability to help increase margins. By providing actionable information, Cass’ customers have visibility to all of their transportation.

box solution, GPS Insight makes sure that it is set up to work for that particular customer. GPS Insight works diligently to provide customers with the most flexible solutions and best customer experience on the market.

Highway 905

Website: www.demandsolutions.com Year Founded: 1985 Number of Employees: 32 Number of Food/Bev Customers: 153 Solution Name(s): Demand Solutions DSX Worth Noting: Designed to run on Azure, a cloud service from Microsoft, Demand Solutions DSX is an affordable, easy-to-use solution for manufacturers and distributors. The system was designed to increase forecast accuracy, improve customer service levels, and reduce inventory to maximize profits and lower costs.

Website: www.highway905.com Year Founded: 1993 Number of Employees: 40+ Number of Food/Bev Customers: 1 Solution Name(s): Highway 905 WMS, Highway 905 TMS, Highway 905 STAS, Highway 905 GPM Worth Noting: Highway 905’s cloud-based model enables high scalability, enhanced end-to-end real-time visibility—from inbound orders to inventories to shipments to last-mile deliveries—and boosts all-around operational efficiencies with a smarter analytics-driven, decision-making framework. The results? More on-time deliveries, reduced logistics costs and optimized order fulfillment.

GPS Insight

Infratab

Website: www.gpsinsight.com Year Founded: 2005 Number of Employees: 136 Number of Food/Bev Customers: 268 Solution Name(s): GPS Insight Fleet Tracking & E-Log Solutions Worth Noting: GPS Insight provides tailored telematics solutions and award-winning customer service to ensure challenges are overcome and goals are met. Rather than offer an out-of-the-

Website: www.infratab.com Year Founded: 2002 Number of Employees: 27 Number of Food/Bev Customers: Several hundred Solution Name(s): Freshtime Worth Noting: While Freshtime solutions function like standard temperature loggers, providing temperature alerts, logs and reports for regulatory compliance, its added value is in enabling

Demand Management

We’re on time when time is scarce. When you need something shipped immediately, Old Dominion Expedited delivers. Our focus on premium service means every shipment arrives with one of the lowest claims ratios and one of the best on-time records in the industry. OD Expedited offers: • Next-day arrival • Delivery at a guaranteed time • Weekend Promise: guaranteed Friday to Monday delivery

For more information, visit odfl.com or call 1-800-432-6335. Old Dominion Freight Line, the Old Dominion logo, OD Household Services and Helping The World Keep Promises are service marks or registered service marks of Old Dominion Freight Line, Inc. All other trademarks and service marks identifi ed herein are the intellectual www.foodlogistics.com NOVEMBER/DECEMBER 2017 | FOOD LOGISTICS property of their respective owners. © 2017 Old Dominion Freight Line, Inc., Thomasville, N.C. All rights reserved. Major League Baseball trademarks and copyrights are used with the permission of Major League Baseball Properties. Visit MLB.com.

37


Other

Yard Management

Wireless Technology

Warehouse Management System

Transportation Management System

Systems Intergration

Supply Chain Management

Routing and Scheduling

Radio Frequency Identification

Predictive Analysis

Mobile Technology

Load Planning

Internet of Things (IoT)

Inventory Control

Global Trade Management

Freight Payment

Enterprise Resource Planning

Demand Management

Data Synchronization

Customer Relationship Management

Barcode Systems

2017

Automated Material Handling Solutions

THE 2017 FL100+

59 InfinityQS International Inc. www.infinityqs.com • 60 Infratab Inc.

www.infratab.com • • • • •

61 Inmar

www.inmar.com

62 Interlink Technologies

www.thinkinterlink.com • • • • • • •

63 Intrigo Systems

www.intrigosys.com • • • • •

• • • • • • • • • • • • • •

64 Iron Apple International www.ironapple.net • 65 JDA Software

www.jda.com • • • • • • • • • • • • • • • •

66 JLT Mobile Computers

www.jltmobile.com • • • • • • •

67 Johanson Transportation Service www.johansontrans.com • • • • • • • • • • (JTS) 68 Keelvar

www.keelvar.com •

69 Kenandy

www.kenandy.com • • •

70 Kuebix

www.kuebix.com • • • • • • • • • • •

71 LANSA

www.lansa.com/pim • • •

72 Lettuce Box Inc.

www.verofresh.com • • • • • •

73 LLamasoft Inc.

www.llamasoft.com • • • • • •

74 LoadDelivered

www.loaddelivered.com • • • • • • •

75 LoadExpress Inc.

www.loadexpress.com • •

76 Logility

www.logility.com • • • • •

77 Lucas Systems Inc.

www.lucasware.com • •

78 Lytx

www.lytx.com • • • •

79 MacroPoint

www.macropoint.com • • • •

80 made4net

www.made4net.us • • • • • •

81 MercuryGate International Inc. www.mercurygate.com

• • • • • • • • • • • • • •

82 Microlistics Warehouse Management Systems

www.microlistics.com.au

• • • • • • • • • • • • • • •

83 NCR Corporation

www.ncr.com • • • • • • • • • • • • • • • • • •

84 NECS Inc.

www.necs.com • • • • • • •

85 Neogrid

www.neogrid.com/en • • • • •

86 NiceLabel

www.nicelabel.com • •

87 Nimble Wireless

www.nimblewireless.com • • •

88 Nulogy

www.nulogy.com • • • • • • • •

89 Numina Group

www.numinagroup.com

• •

90 ODW Logistics

www.odwlogistics.com

• • • • • • • • • • • • • • • • •

91 Omnitracs

www.omnitracs.com • • • • • • • • • •

92 Open Sky Group

www.openskygroup.com • • • • • •

93 Optricity

www.optricity.com • • •

94 ORBCOMM Inc.

www.orbcomm.com • • • • • • • • • • •

95 Outperform Solutions

www.outperformplanning.com • • • • •

96 Parity Corporation

www.parityfactory.com

• • • • • • • • • • •

97 Park City Group/ReposiTrak www.parkcitygroup.com • • • • • 98 ParTech Inc.

www.partech.com • • • • • • • •

99 PeopleNet

www.peoplenetonline.com • • • • • • • • • •

100 PINC

www.pinc.com • • •

101 PLM Trailer Leasing

www.plmtrailer.com • • • • • •

102 Plug Power Inc.

www.plugpower.com •

103 Precima

www.precima.com • • • • •

104 PROACTIS

www.proactis.com •

105 ProCat Distribution Technologies www.procatdt.com • • • • • • 106 project44

www.p-44.com

• • • • • • • • • •

107 PSI Technics GmbH

www.psi-technics.com

• • •

108 Quest Solution Inc.

www.questsolution.com • • • • • • • • • •

109 Quintiq

www.quintiq.com • • • • • • • • •

110 Railinc Corporation

www.railinc.com • •

111 Ramco Systems

www.ramco.com

112 RedLine Solution

www.redlinesolutions.com • • • • • • •

113 RizePoint

www.rizepoint.com • • • • • • •

114 Ryder System Inc.

www.ryder.com

115 Safefood 360

www.safefood360.com •

38

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

• • • • • • • • • • • • • • • • • • •

FOOD LOGISTICS | NOVEMBER/DECEMBER 2017

www.foodlogistics.com


users to easily associate business data with temperature and shelf data. In addition, Infratab’s tags are able to monitor the ambient temperature of a space while also monitoring the product temperature of a perishable item in that space.

solutions that span the entire range of extended supply chain solutions. They have partnered and co-innovated with SAP in the design and development of several solutions, resulting in major cost reductions and efficiency gains.

Interlink Technologies

Johanson Transportation Service (JTS)

Website: www.thinkinterlink.com Year Founded: 1986 Number of Employees: N/A Number of Food/Bev Customers: 30 percent Solution Name(s): Warehouse-LINK Worth Noting: Interlink Technologies has invested a lot of effort in the backbone integrity of Warehouse-LINK’s software design, which includes system-wide flexibility and scalability without the need for additional programming effort and expense. In addition, Warehouse-LINK is easy to use, so workers can quickly adapt and learn to use the system.

Website: www.johansontrans.com Year Founded: 1971 Number of Employees: 88 Number of Food/Bev Customers: 225 Solution Name(s): FreightOptixx TMS Worth Noting: Since its initial launch, JTS has made new enhancements and improvements to the carrier functionality of the TMS, which include the ability to seamlessly rate LTL with dimensional rate programs, improved functionality of the perishable full truckload process to allow for multiple pick-up consolidation and real-time tracking with Macropoint, and the addition of a carrier portal for use on any mobile device.

Intrigo Systems Website: www.intrigosys.com Year Founded: 2009 Number of Employees: 130+ Number of Food/Bev Customers: 7 Solution Name(s): SAP Integrated Business Planning (IBP), SAP Ariba, SAP S/4HANA, SAP Hybris Worth Noting: Intrigo has unparalleled expertise delivering

Kuebix Website: www.kuebix.com Year Founded: 2008 Number of Employees: 85 Number of Food/Bev Customers: 40 Solution Name(s): Kuebix TMS Worth Noting: Kuebix TMS offers a variety of enterprise applica-

When you’re driven by details, the world is a smaller place. Old Dominion simplifies global shipping by doing more than delivering freight. Our focus on premium service means every shipment arrives with one of the lowest claims ratios and one of the best on-time records in the industry. OD Global offers: • Personalized, single point of contact for status on all shipments • Nationwide Container Drayage from most major rails and ports • Direct service to or from Canada, Mexico, Puerto Rico, Alaska and Hawaii

For more information, visit odfl.com or call 1-800-432-6335. Old Dominion Freight Line, the Old Dominion logo, OD Household Services and Helping The World Keep Promises are service marks or registered service marks of Old www.foodlogistics.com NOVEMBER/DECEMBER 2017 | FOOD LOGISTICS Dominion Freight Line, Inc. All other trademarks and service marks identified herein are the intellectual property of their respective owners. © 2017 Old Dominion Freight Line, Inc., Thomasville, N.C. All rights reserved. Major League Baseball trademarks and copyrights are used with the permission of Major League Baseball Properties. Visit MLB.com

39


Other

Yard Management

Wireless Technology

Warehouse Management System

Transportation Management System

Systems Intergration

Supply Chain Management

Routing and Scheduling

Radio Frequency Identification

Predictive Analysis

Mobile Technology

Load Planning

Internet of Things (IoT)

Inventory Control

Global Trade Management

Freight Payment

Enterprise Resource Planning

Demand Management

Data Synchronization

Customer Relationship Management

Barcode Systems

2017

Automated Material Handling Solutions

THE 2017 FL100+

116 SafetyChain Software Inc. www.SafetyChain.com • • • • 117 Safeway Management Group Inc. www.smgsafety.com • • • 118 SCA Technologies

www.scatech.com • • • • • • • •

119 ScanTech Sciences

www.scantechsciences.com • • • • •

120 Scientific Logistics Inc.

www.scientific-logistics.com •

121 Seagull Scientific

www.seagullscientific.com •

122 Sensitech

www.sensitech.com • • • •

123 Service First Logistics Inc. www.sflcompanies.com • • • • • • 124 Silvon Software Inc.

www.silvon.com •

125 SmartDrive Systems Inc. www.smartdrive.net • • • 126 SmartTrace Pty Ltd

www.smarttrace.com.au •

127 Sologlobe

www.sologlobe.com • • •

128 SPS Commerce

www.spscommerce.com • • • • • • • •

129 SSI SCHAEFER

www.ssi-schaefer.com

130 Symphony GOLD

www.symphonygold.com • • • • • • • • • • • •

131 SYSPRO USA

www.us.syspro.com

132 System Logistics

www.systemlogistics.com •

133 Systems Logic

www.warehouseinabox.com • • •

134 Technology Group International (TGI)

www.tgiltd.com • • • • • • • • • • • • • • • • •

• • • • • • • • • • • • • • • • • • •

135 TEKLYNX International www.teklynx.com • • • • 136 Telgois

www.telogis.com • • • • • •

137 Teradata Corp

www.teradata.com • • • • • • • •

138 Testo Solutions USA Inc. www.testo.com/en-US • • • • • •

tions that empower food shippers to optimize their unique supply chains. Their transportation management system is also cloudbased and offers low total cost of ownership and seamless integrations with any internal or third-party system. Additionally, Kuebix freight experts provide managed services to enterprises looking to partially or fully outsource transportation management.

Transfers loads from one pallet type to another

LoadDelivered

Category 3 safety compliant Enhance safety for warehouse personnel Supports FSMA, HACCP and GMP compliance Help prevent contaminates from entering production areas Safer, cleaner & faster than other load transfer devices 1-800-628-4065 www.loadtransfer.net

40

FOOD LOGISTICS | NOVEMBER/DECEMBER 2017

Website: www.loaddelivered.com Year Founded: 2008 Number of Employees: 78 Number of Food/Bev Customers: 175 Solution Name(s): Nuclus Worth Noting: LoadDelivered crafts their solutions for each individual customer, tailoring it to fit their precise needs. Customers are able to integrate with their systems in as little as 24 hours and build custom robots that help LoadDelivered manage their loads from start to finish.

NECS Inc. Website: www.necs.com Year Founded: 1990 Number of Employees: 34 Number of Food/Bev Customers: 1,520 Solution Name(s): entree Worth Noting: NECS’ entree line of software is dedicated to filling the ERP needs of food service distributors. More than 1,500 food distributors run their operation with entrée, a Windows-based, food service distribution software.

www.foodlogistics.com


Partech

PLM Trailer Leasing

Website: www.partech.com Year Founded: 1978 Number of Employees: 700 Number of Food/Bev Customers: 10 Solution Name(s): SureCheck Food Safety Solution Worth Noting: PAR’s SureCheck solution helps business owners ensure they are meeting FDA regulated standards. This innovative device reassures that restaurants, grocery stores and food distributors are in consistent compliance and eliminates procedural risks.

Website: www.plmtrailer.com Year Founded: 1972 Number of Employees: 110 Number of Food/Bev Customers: 950 Solution Name(s): PLM’s ColdLink Worth Noting: PLM’s ColdLink telematics solution provides dual satellite-cellular communication capabilities and all of the reports, events and alarms needed to provide superior refrigerated transportation services to reduce fleet operating costs and ensure regulatory compliance. PLM takes a unique approach in working together with customers to develop KPIs on what data to measure to achieve the goal of saving time and money.

PeopleNet Website: www.peoplenetonline.com Year Founded: 1994 Number of Employees: 500 Number of Food/Bev Customers: 35 customers; 60,000 subscribers Solution Name(s): N/A Worth Noting: In addition to providing solutions specific to the food services industry, PeopleNet’s ConnectedFleet platform provides connectivity to a variety of devices, such as in-cab displays, mobile devices and wearables. Users can access vehicle or third-party data, such as weather, traffic patterns, dispatch events, route connections and video for streaming. This connectivity helps fleets increase efficiencies, drive compliance and improve driver safety.

ProCat 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 operation control, enhancing every aspect of the distribution center, from 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, learn and use.

Retail Order Capture. Picking. Packing. Verified Delivery.

Now integrated with CDR®, Retalix® and SAP® sales@velocitialliance.com

CDR, Retalix, and SAP are trademarks of their respective companies.

www.foodlogistics.com

NOVEMBER/DECEMBER 2017 | FOOD LOGISTICS

41


139 The Raymond Corporation www.raymondcorp.com

Other

Yard Management

Wireless Technology

Warehouse Management System

Transportation Management System

Systems Intergration

Supply Chain Management

Routing and Scheduling

Radio Frequency Identification

Predictive Analysis

Mobile Technology

Load Planning

Internet of Things (IoT)

Inventory Control

Global Trade Management

Freight Payment

Enterprise Resource Planning

Demand Management

Data Synchronization

Customer Relationship Management

Barcode Systems

2017

Automated Material Handling Solutions

THE 2017 FL100+

• • • • • • • • • •

140 TMW Systems

www.tmwsystems.com • • • • •

141 TraceGains Inc.

www.tracegains.com • • • •

142 TranSolutions Inc.

www.transolutionsinc.com •

143 Transplace

www.transplace.com • • • • • • • •

144 Transportation Insight

www.transportationinsight.com • • • • • • • • • • •

145 Transportation Warehouse Optimization

www.warehouseoptimization.com

146 TraQtion

www.TraQtion.com • • • • • •

147 UltraShipTMS

www.beyond.ultrashiptms.com • • • • • •

148 UNEX Manufacturing

www.unex.com

149 VAI

www.vai.net • • • • • • • • • • •

150 Varcode

www.varcode.com • • • •

151 Velociti Alliance North America Inc.

www.velocitialliance.com •

152 viastore SYSTEMS Inc.

www.viastore.com

153 Voodoo Robotics

www.voodoorobotics.com • • • • • •

154 Voxware

www.voxware.com

155 Werner Enterprises/ Werner Logistics

www.werner.com • • • • • • • • • • • • • • • •

156 Westfalia Technologies Inc. www.westfaliausa.com

• • • • • • •

• • • • •

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

• • •

157 Wise Systems

www.wisesystems.com • • •

158 WorkWave

www.workwave.com • • • • • •

159 WorldAPP

www.worldapp.com

• • • • • • • • • • • • • • • •

160 Yale Materials Handling Corp. www.yale.com/north-america/en-us • • • • • 161 Zethcon Corporation

www.zethcon.com • • • • • • • •

Quintiq Website: www.quintiq.com Year Founded: 1997 Number of Employees: 1,500+ Number of Food/Bev Customers: N/A Solution Name(s): Quintiq Logistics Planner Worth Noting: One of the biggest supply chain challenges facing the food and beverage industry is the need to drive down cost while simultaneously improving customer/client service. Quintiq’s Logistics Planner solution is uniquely positioned to meet this challenge, thanks to its world-record breaking optimization technology, which efficiently places the most shipments onto the fewest number of trucks, while taking into account many constraints.

TOP OF THE

FOOD CHAIN

WMS

The Raymond Corporation

SUPPORTING SPECIFIC NEEDS IN THE FOOD INDUSTRY Multiple Date Tracking FIFO Detailed Audit Trails Environmental Controls

Recall Management Efficient Space Utilization Just-In-Time Process Cycle Counting

FIND OUT HOW WE CAN HELP YOUR WAREHOUSE FUNCTION EFFICIENTLY AND TO ITS FULLEST POTENTIAL.

ThinkInterlink.com | 800.655.5465 | info@thinkinterlink.com

42

FOOD LOGISTICS | NOVEMBER/DECEMBER 2017

Website: www.raymondcorp.com Year Founded: 1992 Number of Employees: 2,000+ Number of Food/Bev Customers: N/A Solution Name(s): iWAREHOUSE Essential, Enterprise, Gateway and Evolution, iTRACK Worth Noting: iWAREHOUSE Evolution is the newest product in The Raymond Corporation’s iWAREHOUSE fleet management and warehouse optimization system. iWAREHOUSE Evolution provides vital analytics tools for warehouse managers, allowing them to promote operator accountability and monitor compliance, risk management and metrics for their industrial vehicle fleet, operators and batteries. This single scalable solution provides an easy upgrade path as an operation’s needs evolve and grow.

www.foodlogistics.com


Ryder System Inc.

safety and quality operations. SafetyChain Analytics also includes Statistical Process Control (SPC), providing a holistic real-time view of a company’s food safety and quality data.

Website: www.ryder.com Year Founded: 1933 Number of Employees: 34,500 Number of Food/Bev Customers: 3,000+ Solution Name(s): Ryder Dedicated, Ryder ChoiceLease, Ryder SelectCare, RyderShare Worth Noting: Ryder’s newest tool, RyderShare, is a data agnostic, cloud-based platform that provides visibility across all modes of transportation in a network. RyderShare is particularly useful to food and beverage customers transporting temperature-sensitive product, as it connects to a telematics device with temperature control sensors that track vibration and alerts the customer if there is a change in temperature en route.

Safeway Management Group Website: www.smgsafety.com Year Founded: 2004 Number of Employees: 11 Number of Food/Bev Customers: 65 Solution Name(s): Quality Management System, Food Safety/ HACCP Plans, Transportation Safety Program, Workplace Safety Program, Electronic File Maintenance, Document Control, E-Training Worth Noting: SMG understands their customers have many technology choices, but believes no one in the business matches their expert support toward making the product work for the customer. Their dedicated staff is proud to brand SMG the “Software-Plus Company.” Through their administrative support and consultation, SMG has fostered long-term relationships with customers by leveraging their products to support their specific needs. Whether it’s safety, quality or compliance, SMG is committed to helping their clients make these programs integral to daily operations.

SafetyChain Software Website: www.SafetyChain.com Year Founded: 2011 Number of Employees: 100+ Number of Food/Bev Customers: 100+ Solution Name(s): SafetyChain Supplier Compliance, SafetyChain Food Safety Management, SafetyChain Food Quality Management, SafetyChain CIP Optimization, SafetyChain Material Loss Worth Noting: SafetyChain Analytics delivers robust reporting, trending and management dashboards, providing customers with live insights and business intelligence across their food

REAL. SMART. LOGISTICS. ®

Technology is in our DNA. Since day one, Coyote’s continuously evolving technologies have been designed, built, and updated in-house. From customized supply chain management to automation technologies, we bring cutting-edge solutions to shippers just like you. No Excuses.

Want to ship with Coyote?

www.foodlogistics.com

877-6-COYOTE WWW.COYOTE.COM

NOVEMBER/DECEMBER 2017 | FOOD LOGISTICS

43


Seagull Scientific

2017

Website: www.seagullscientific.com Year Founded: 1985 Number of Employees: 160 Number of Food/Bev Customers: 4,000+ Solution Name(s): BarTender by Scientific Seagull Worth Noting: While BarTender manages the supply chain labeling of many of the world’s largest food companies, many boutique-sized food and beverage manufacturers use BarTender for every labeling process in their operation, including supply chain optimization and tracking, compliance and nutrition labels, UPC generation, and even prime labeling.

Sensitech Website: www.sensitech.com Year Founded: 1990 Number of Employees: 950 Number of Food/Bev Customers: 25,000 Solution Name(s): TempTale Temperature Dataloggers, ColdStream Quality & Compliance Solutions, SensiWatch Logistics Performance Management Solutions, SensiGuard Cargo Security Solutions, Greenlight Quality Software Solutions Worth Noting: TempTale GEO provides real-time visibility for temperature and location to support both logistics and quality. Sensitech’s software gives an advance indication to all supply chain partners of where product is located and when it will arrive, as well

as reducing risk by enabling active intervention to address correctable temperature deviations before they impact product quality.

Service First Logistics (SFL) Website: www.sflcompanies.com Year Founded: 2011 Number of Employees: 41 Number of Food/Bev Customers: 500+ Solution Name(s): SFL Powered by Turvo Worth Noting: SFL says their competitive differentiator is their company culture. The core values that SFL lives and works by every day give them their name, Service First. Integrity, team work, ambition and exceptional service drives everything behind their technology solution and the goal of bringing transparency to the food and beverage supply chain.

SSI Schaefer Website: www.ssi-schaefer.com Year Founded: 1937 Number of Employees: 10,000 Number of Food/Bev Customers: 300 Solution Name(s): WAMAS Worth Noting: The WAMAS warehouse management system by SSI Schaefer provides waveless order optimization that keeps operators and equipment fully utilized throughout an entire shift. Plus, WAMAS dynamically responds to any changes within the warehouse and automatically handles last-minute, high-priority orders with existing orders. WAMAS provides a flexible software solution for both small and large warehouse and distribution centers.

System Logistics

Intralogistics has never been so simple

System Logistics and Vertique are now one company

Offering tailor made solutions for warehousing, ASRS, order picking systems and material handling. Our focus is Food and Beverage with the install base that ranks us the leaders in our market. Allow our team to learn about your business and become a trusted partner for your automated solutions.

SYSTEM LOGISTICS CORP.

+1 888 233 6796 systemlogistics.com / vertique.com

44

FOOD LOGISTICS | NOVEMBER/DECEMBER 2017

Website: www.systemlogistics.com Year Founded: 1976 Number of Employees: 13,346 Number of Food/Bev Customers: 50+ Solution Name(s): ASRS, Mini Load, Layer Picking, SYSTOR, AGV, WMS, WCS Worth Noting: With a special focus on the food and beverage industry, System Logistics develops tailor-made solutions of automated storage and picking for customers, which include stacker cranes, material handling, software and services. Most of the technologies they use in their solutions are fully developed and engineered, produced and installed by System Logistics. Therefore, they have complete mastery of the process.

Systems Logic Website: www.warehouseinabox.com Year Founded: 2002 Number of Employees: 16 Number of Food/Bev Customers: 20 Solution Name(s): Wireless Warehouse in a Box Worth Noting: Systems Logic is one of the few solutions that does not outsource or offshore any development out of North America. This they claim provides an unparalleled level of agility and responsiveness. Warehouse in a Box also offers one of

www.foodlogistics.com


the few managed on-premise solutions that gives you the ease of management and setup of cloud solutions, coupled with the power, speed and ultimate flexibility of an on-premise solution.

quality management initiatives and protect brand reputation. Each solution combines innovative measurement technology with intuitively operated software and individualized services.

Technology Group International (TGI)

TranSolutions

Website: www.tgiltd.com Year Founded: 1990 Number of Employees: 34 Number of Food/Bev Customers: 400+ Solution Name(s): Enterprise 21 ERP Worth Noting: Enterprise 21 ERP is developed, sold, implemented, and subsequently supported directly by TGI. No part of the business is outsourced to third-party companies or sent overseas. By taking this all-in-one approach, TGI customers are able to establish and leverage a single-source relationship with their software vendor for all software development, business and application consulting, training and technical support needs.

Website: www.transolutionsinc.com Year Founded: 1996 Number of Employees: 20 Number of Food/Bev Customers: 24 Solution Name(s): MyEZClaim, Return Authorization, Carrier Wise, Vendor Claim, Overcharge, OS&D Incident Worth Noting: Since debuting the first freight claim management system over 20 years ago, TranSolutions is now developing solutions to manage other issues that interfere with claim recovery. For example, claim recovery is difficult without all relevant information, or if there is a delay in getting that information. Therefore, they’ve developed OS&D Incident, software that allows receiving personnel to effortlessly collect all information at the time of the incident, and have it immediately sent to all relevant departments.

Testo Solutions USA Inc. Website: www.testo.com/en-US Year Founded: 1957 Number of Employees: 2,700 Number of Food/Bev Customers: 100 Solution Name(s): testo Saveris Restaurant, testo Saveris Retail Chain Worth Noting: For 60 years, Testo has developed innovative measuring solutions for the food and pharmaceutical industries. The testo Saveris platforms have been developed to support

IMPROVED ORDER PROCESSING

Transplace Website: www.transplace.com Year Founded: 2000 Number of Employees: 2,000 Number of Food/Bev Customers: 20 Solution Name(s): Transplace TMS Worth Noting: Transplace provides a variety of offerings and

ENERGY SAVINGS

Automated Streamlined Intralogistics

AUTOMATED TRACKING AND TRACEABILITY

REDUCED HUMAN ERRORS

LOWER LOGISTICS COSTS

Together we conquer the myriad of challenges along the food and beverage supply chain – from SKU proliferation to new regulations to labor shortages. viastore integrated solutions optimizes your material flow and order picking processes, giving you the competitive edge. www.us.viastore.com/fldec

www.foodlogistics.com

NOVEMBER/DECEMBER 2017 | FOOD LOGISTICS

45


tailored solutions based on each customer’s unique requirements, objectives and strategies. Their focus on North American transportation management services, aligned with their core verticals orientation, including CPG, retail, manufacturing, packaging and chemical, is a real and sustainable differentiator compared to those who have a broader focus in the market.

Transportation Insight Website: www.transportationinsight.com Year Founded: 1999 Number of Employees: 500 Number of Food/Bev Customers: 42 Solution Name(s): Technology-Driven, Multi-Modal End-to-End Supply Chain Solutions Worth Noting: Transportation Insight’s in-house food, beverage and consumer-packaged goods expertise is led by Rick Zaffarano, a 2017 Food Logistics Champion. His team leverages deep industry experience and a state-of-the-art technology stack that enables Transportation Insight to help clients realize cost savings through inventory reduction and improved transit times, while achieving greater service levels and mitigating compliance risk.

Varcode Website: www.varcode.com Year Founded: 2014 Number of Employees: 10-15 Number of Food/Bev Customers: 20+

Solution Name(s): FreshCode Worth Noting: Key benefits of the patented FreshCode solution include: patented temperature recorders with flexible configuration of temperature and time setting; scannable by any standard barcode reader or smartphone, eliminating timely/expensive IT purchases; rules based, situation specific feedback to users and e-alerts across the supply chain; and digital records for detailed analysis and compliance.

2017

Velociti Alliance North America Website: www.velocitialliance.com Year Founded: 2000 Number of Employees: 10 Number of Food/Bev Customers: 10+ Solution Name(s): SmokePick, PiecePick, TW*Sales, TradeWins Worth Noting: By taking advantage of the market-driven hardware solutions that now proliferate the consumer market, Velociti can leverage the high-reliability of those devices and their advanced communications without charging the high price normally associated with solutions that are based on proprietary devices. The bottom line: The end user gets much more capable hardware at a fraction of the price of proprietary devices.

viastore Systems

TEMPERATURE PROTECTION – SINCE 1962

Website: www.viastore.com Year Founded: 1889 Number of Employees: 150 Number of Food/Bev Customers: 35 Solution Name(s): viastore, viadat Worth Noting: Food and beverage customers are looking for ways to increase productivity and improve picking and order processing to support increased e-commerce delivery options, as well as reduce risk and improve their current systems uptime inside both their manufacturing plants and their warehousing operations. Viastore offers a WMS/WCS solution, as well as significant experience with completely automated solutions for customers seeking a strategic partnership with an experienced software-automation provider.

Voxware Website: www.voxware.com Year Founded: 2001 Number of Employees: 60 Number of Food/Bev Customers: 50 Solution Name(s): Cloud Voice Management Suite (VMS), VoxPilot, VoxStudio Intellestra Worth Noting: Voxware was the first company to offer cloudbased delivery of multi-modal voice technology, including augmented reality, and continues to offer customers highly configurable solutions to address a range of distribution operations challenges. Cloud VMS helps companies improve efficiency by as much as 30 percent and improve accuracy to over 99.9 percent. VoxPilot enables companies to track and improve fulfillment and returns data, and Intellestra (Voxware’s predictive analytics platform) empowers companies to pull data from multiple sources throughout the supply chain to understand and react to changing circumstances in real time.

46

FOOD LOGISTICS | NOVEMBER/DECEMBER 2017

www.foodlogistics.com


Many Retailers, One Solution

Lower Transportation Costs

Highest On-Time Percentages

Reduce Lead Times

POD Available Online

Improve On-Shelf Availability

Guaranteed Appointment

(855) 638-3500

Consolidation@CaseStack.com

Retail Logistics Is What We Do!


SECTOR REPORTS WAREHOUSING

BY MARY SHACKLETT

NEW SMART LABELS

EXPAND INFORMATIONAL POSSIBILITIES FOR FOOD AND GROCERY

Smarter labels and smarter devices make way for smarter methods of doing business.

Mary Shacklett is the president of Transworld Data, a technology analytics, market research and consulting firm. Prior to founding the company, she was vice president of product research and software development at Summit Information Systems. She may be reached at mshacklett@ twdtransworld.com.

48

I

n 1982, a modified coke machine at Carnegie Mellon University became the first interness or a food recall on an item?” net-connected appliance. It was able One way this is now happening is to report its inventory and whether through the use of quick response newly loaded drinks were cold. (QR) codes, which use a two-diSince then, the internet has mensional barcode that is able to become a driving force, exerting capture more information about an its influence on relatively stable item than a traditional barcode can. and undisturbed technologies such “By using these two-dimensional as barcode labeling, QR barcodes, you which hasn’t changed can get around much from what it the limitations was when it first apof a traditional peared in the 1960s. linear barcode “The idea of the Inthat can hold ternet of Things (IoT) only 20 characbeing able to connect ters,” explains devices and inforSinclair. When mation by encoding you add this secreaders, objects and ond dimension information is now of information, advancing to where  Today, RFID can actually listen the barcode can the appliances in your to codes and pick them up. now hold 7,000 kitchen can talk to characters, so each other,” says Elizabeth Sinclair, there is immediately more data manager, verticals marketing for carriage. This enables access to BarTender by Seagull Scientific, data by smartphones. which specializes in barcode and Another method for expanding smart labeling solutions. “A consum- barcode information is through raer can hold his or her smartphone dio frequency identification devices to a refrigerator to troubleshoot (RFID), which can carry much more a mechanical problem, so to take data and also transmit the data in this one step further—what if you real time. could obtain information about the And while RFID has been around food items in your refrigerator that for years, Jody Costa, vice president would inform you about food freshof marketing for Barcoding Inc.,

FOOD LOGISTICS | NOVEMBER/DECEMBER 2017

FLOG1117_48-51_WarehouseSR.indd 48

 Organizations can expand barcode information through RFID tags, which can transmit date in real time.

which provides labeling solutions, says by combining it with QR code labels and IoT, RFID now has new content and file-sharing concepts that allow people globally to offer content by storing and accessing it through the cloud. In the warehouse, RFID readers also provide more flexibility than ever before. Today’s RFID can actually listen to codes and pick them up. It no longer has to be in the line of sight of a code—and the information that it picks up from codes is captured and reported in real time. All of this adds up to not only smarter labels and smarter devices— but a smarter way of doing business.

No Benefits Without Investment To reap the benefits of IoT and smart labeling technology, companies have to invest in it. This is where smaller food and grocery companies face challenges, because they lack the investment dollars and the internal know-how to make it happen. “There are still skill sets that must be mastered to understand www.foodlogistics.com

12/6/17 3:46 PM


how the software behind smart labels and the cloud utilization of smart label generated information works,” notes Dave Reba, director of consumables sales for Barcoding. “There is employee training that is needed so employees know which applications to load into the cloudbased information platform so the cloud can be integrated with the smart labels. You also have to enable the cloud with software to accept input coming from smart labels and from access requests from consumers and businesses wanting to obtain information from these food and grocery smart labels that are stored in the cloud.” However, before they can embark on this journey, companies have to overcome the present situations they find themselves in. “Many companies have departmental silos, meaning differThere are ent departments still skill sets that are involved that must be in functions like mastered to barcode creation understand and labeling how the don’t talk to software each other,” says behind Sinclair. “This smart can create confusion because labels no one departworks.” ment uses the Dave Reba, director, same standards consumables sales, Barcoding Inc. or methods in creating labels.” Companies can start by evaluating their existing labeling practices. A single source of truth strategy should be established, with master data stored in one location. Access to label files should be carefully managed, and label files should be built with variable data fields that tie to the database. This eliminates the proliferation of labels generated from different parts of the organization that don’t synchronize with a centrally standardized labeling methodology. “Using IoT effectively starts with a standardized label production process and impeccable data management,” adds Sinclair. “When companies generate labels from www.foodlogistics.com

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different departments that haven’t coordinated with each other, redundancies and errors occur. Consequently, work has to be done to establish a singular labeling method that everyone follows. When you use this practice, your master data is centralized, people can only modify certain data fields, and your data are going to be much more accurate. Then when a major change to data needs to be made, it

can be made by an authorized person at the master data level—which automatically changes all of the downstream labeling that touches that data.” Companies must also focus on the IT infrastructure behind smart label generation. “You can do this by asking yourself what information gets stored in the cloud?” explains Reba. “How does the information on the label

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SR: WAREHOUSING

continued

unlock the information in the cloud so it can provide information access to a requesting end user?” Also important is the reputation of the cloud service provider you are using. Can the provider provide the level of security and governance that you expect for your own applications? Do you have a set of

 Two-dimensional QR codes can hold much more data than a linear barcode.

service level agreements (SLAs) that are written into the contract with your cloud provider that minimally guarantees

99.99 percent uptime and rapid responses for problem resolution? What insurances and indemnification will your cloud provider give you if there is a security or a data breach in the cloud? Also, will your cloud provider be able to meet the compliance and regulatory requirements that you are subject to? “Careful upfront planning is important for any IoT technology,” says Sinclair. “This begins with assessing your internal and external systems.”

No Time to Waste

Fresh? How fresh? Whether you are farmer, fisherman, trucker, or chef; or an exporter of food to the US, change is all around you. Air and water temperatures are rising. US FDA product safety regs are kicking in. Young buyers are spurring a fast-paced movement toward freshness, transparency and trusted high quality. Freshtime. Sensor tags. Software. Analytics.

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FOOD LOGISTICS | NOVEMBER/DECEMBER 2017 1 Freshtime uses radio frequency (RF) to give you real-time data, using either a NFC smartphone or RAIN RFID supply chain readers.

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The good news for companies is that as more smart labeling and IoT technologies are implemented, the prices are likely to come down, To and the success date, one use cases are of the most likely to grow. aggressive “Smart industries labels with to adopting cloud-based smart labels information is has been a technology retail.” that is still in Jody Costa, early stages,” vice president, says Reba. “In marketing, Barcoding Inc. the food and grocery industry, we can expect it to take three to five years to reach a maturation point. There are also likely to be revisions on how smart label cloud services are priced as we learn more about how companies are using these services. It seems likely that there will be different pricing structures based upon how you are using smart labels.” No matter, companies cannot afford to sit on the fence—because their competitors and customers certainly won’t. “Smart labeling and IoT will make positive contributions to supply chains by improving production efficiency, product safety and supply chain transparency,” says Sinclair. “It won’t be long before consumers expect to get this information about their food.” www.foodlogistics.com

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SECTOR REPORTS SOFTWARE & TECHNOLOGY

BY CHRIS LEWIS

THE FUTURE OF FOOD AND BEVERAGE

CARGO THEFT—AND SECURITY M

Manufacturers and distributors must react now —or face the consequences.

ore often than not, cargo theft rises during the holidays, especially around Christmas and Hanukkah, resulting in a spike in prices for retailers and consumers alike. Interestingly, only 21 percent of businesses worry about cargo theft, however, according to the 2017 Travelers Risk Index. But that may very well change, as the FBI has recently estimated that cargo theft costs U.S.-based businesses upwards of $30 billion each year. And the most necessary commodities of all—food and beverages—are now a primary target for thieves, leading to concerns in public health among an assortment of other issues. With that in mind, this may be the season for food and beverage companies to react to the ever-rising threats by implementing new security measures.

Gone in a Flash— and Without a Trace In 2007, the United States enjoyed its last year of a booming economy (for the time being, at least). At that time, electronics were the No. 1 stolen commodities in the country, as they were very easy to

Cargo Theft in Mexico by Commodity Percent of Total Incidents Electronics 4.19% Petroleum 5.03%

Food and Beverage

27.25%

Apparel & Footwear 5.87% Metal 7.55% Alcohol & Tobacco 7.97%

Consumer Goods 12.79%

Agricultural 8.18% Pharmaceuticals 8.60%

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Other 10.48%

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Cargo Theft in United States by Commodity Percent of Total Incidents

Other 11%

Food and Beverage

20%

Appliances 1% Machinery 2% Pharmaceuticals 6% Alcohol and Tobacco 6%

Consumer Goods 14%

Construction Materials 6% Apparel 7% Automotive 7%

Electronics 13% Metal 8%

sell in large quantities. However, three years later, more food and beverage goods were stolen than electronics items—and they have remained the most stolen commodities every year since. Last year, cargo theft accounted for $114 million in stolen merchandise, resulting in an average loss value of $206,837. Forty-one percent of these losses involved food and beverages. The likely culprits? For one, unlike electronics and other high-value products, food and beverage goods can’t be tracked when they’re stolen, as they lack barcodes or serial numbers once their packaging is removed. Not to mention, food and beverages can be easily and quickly consumed, leading to little or no evidence left behind. In addition, they can be sold quickly and for a relatively high profit. “Cargo thieves are good capitalists. They have to steal things that people will buy,” says Scott Cornell, transportation business lead and

Cargo thieves are good capitalists. They have

to steal things that people will buy.” Scott Cornell, transportation business lead and crime and theft specialist, Travelers Insurance

crime and theft specialist at Travelers Insurance. “Electronics were no longer as easy to sell once the economy went down, but food and beverages will, of course, always be top sellers.” Anthony Pelli, supply chain risk consultant for BSI Group, agrees, adding that the easier items are to resell, the easier they are to steal. After all, a bunch of food can be stolen and then sold at a variety of different locations—without anyone noticing or asking any questions—as there aren’t enough security measures in place. “Some food and beverage products, such as chocolates, lobster and nuts, are high-value items, www.foodlogistics.com

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SR: SOFTWARE & TECHNOLOGY continued

Cargo thieves are known to target commodities that can

be easily diverted to alternative markets.” Scott Martino, director of global intelligence, Sensitech Inc.

Chris Lewis is the owner of Innovative Written Solutions, a content development and editorial services company. In addition to Food Logistics, he has also written for a variety of organizations, including the Golf Channel and St. Jude Children’s Research Hospital, as well as industries like engineering, higher education and workforce solutions. He can be reached at lewis.christopherm@ gmail.com.

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“It’s truly a global problem. For example, in Brazil, hijackings involving soybeans or corn often occur, while there are frequent thefts of salmon in Chile,” Pelli adds. “In Europe, we see major thefts of items like champagne in France and chocolates and cheeses in Italy, Germany and Spain. Without question, no country is safe from food and beverage cargo theft.”

but, unlike electronics or pharmaceuticals, they’re not treated as high-value items. We’ve seen these items stolen time after time,” he explains. “The best example of this is a string of nut thefts in California in 2014 and 2015. The pistachio and almond farms out there never expected they would be targeted, Mitigate the Risk so they didn’t have appropriate security in place.” Once food and beverages are Security measures can become stolen, shippers and manufacturers even scarcer in the midst of natural can’t really do much to solve—or disasters, which have been detrieven reduce the risks and consemental to the food and quences of—the issue. beverage sector in the From broken seals to Cargo Theft in Brazil by Commodity southern and western variance in temperaPercent of Total Incidents United States. tures, the products Other 9% “Cargo thieves are are truly out of their Automotive 3% Food and Beverage known to target commodcontrol. All they can Metal 3% 26% Appliances 3% ities that can be easily do is notify the public, Apparel & Textiles diverted to alternative communicate risk to 3% Chemicals 4% markets,” says Scott their transportation Martino, director of global providers and make Construction Materials intelligence at Sensitech sure their providers are 4% Electronics Fossil Fuels Inc. “Food and beverage prepared for potential 14% 5% shipments fall into this thefts. Pharmaceuticals 6% category, particularly “Companies must Consumer Goods Alcohol & Tobacco following the recent work closely with their 9% 12% hurricanes in the United logistics providers and States, Puerto Rico and prioritize their secuthe Caribbean; the earthrity. If manufacturers quakes in Mexico; and the wildfires As a result, food and beverage create these types of commodities, in northern California.” companies’ brands may be damaged they shouldn’t only put language He adds, “As these sources on a short- or long-term basis, and in contracts—they must also become rare, whether because of consumers’ health might be in danhelp facilitate security plans and the direct effects of the disasters ger—throughout the world. protocols,” Cornell says. “The more themselves or breaks in the supply “I’ve seen examples of that shippers and manufacturers chain, their value increases, along cross-channel shipments to the become involved, the better off they with the vulnerability of the affected United Kingdom, where stowaways (and their customers) will be.” populations, which, unfortunately, snuck into shipments that forced To further mitigate the risk of creates the environment for theft companies to dispose of their entire theft, Martino believes shippers and exploitation.” loads,” Pelli states. should fortify their supply chains Aside from the health risks and with layered security programs, Worldwide Dangers the potential damage to companies’ which include physical security at Let’s face it, thieves only have bot- marketing capabilities, a lot of food warehouses, security procedures tom-line figures in mind when they and beverage products are simply built into their organizational culsteal and then sell food and beverag- difficult to reproduce, as farmers tures and visibility technology that es. The health of the people they sell must work all year just to sell their tracks cargo in real-time. to is far from important, and they’re products once or twice. “Some security programs now certainly not concerned about the “Stolen goods cause a ripple apply the latest real-time sensor timeliness of product delivery or effect all around the world, as they technology directly to the cargo and the fact that many consumable lead to a shortage, which then costs constantly monitor the location and shipments are temperature-cona lot of money and, of course, results condition of that cargo throughout trolled and require strict adherence in a rise in prices,” Cornell explains. the supply chain,” Martino says.

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to federal guidelines. “They also aren’t worried about keeping the refrigerator unit running consistently and monitoring temperatures,” Cornell says. “They may also let the refrigerator run out of gas and then fill it up a while later, allowing the contents to thaw and then re-freeze. Health risks will be associated with that issue alone.” Because the temperatures of food and beverages may not be monitored and could be stored in unsafe conditions prior to being reintroduced into the supply chain, there is no guarantee that the products are kept in sanitary conditions.

www.foodlogistics.com

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SECTOR REPORTS SOFTWARE & TECHNOLOGY

HOW THE

BY MARY SHACKLETT

INTERNET OF THINGS

WILL TRANSFORM FOOD SUPPLY CHAINS

IoT enablement can help food and beverage companies save money, reduce spoilage, improve times to market and increase customer satisfaction.

Mary Shacklett is the president of Transworld Data, a technology analytics, market research and consulting firm. Prior to founding the company, she was vice president of product research and software development at Summit Information Systems. She may be reached at mshacklett@ twdtransworld.com.

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T

he Internet of Things (IoT) is an emerging technology filled with sensors, machine learning, artificial intelligence (AI) and analytics. In the food and grocery industry, it is being looked at as a way to improve supply chain performance and profit margins by tracking food freshness and predicting and avoiding the spoilage of perishable foods. “IoT is about sensing and coding data so the data can yield greater insights,” says Terry Myers, CEO of Infratab, which provides perishable food tracking technology. “When it comes to perishable foods in particular, companies are concerned about shelf life, freshness and the condition of the food. All of these facts add up to one question: How is the food?” Infratab’s solution uses freshness metrics that enable them to quantify shelf life and identify the spoilage characteristics of each food item. The shelf life starts at 100 days and ends at one day. For example, if the item is a peach, Infratab can measure shelf life for that item against timelines in the supply chain, based on the temperature a food must be kept at and the elapsed shelf-life time. This enables companies to make supply chain decisions, such as expediting shipments of certain goods to market. Though the benefits seem obvious, the fresh produce industry is still lagging in comparison to other

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industries. Few food and grocery companies have extensive experience with IoT, nor do they have the confidence that IoT enablement will save them money, reduce spoilage, improve time to market and transform supply chain management, all while increasing customer satisfaction. “Nearly every week, we hear a familiar story from customers. They installed their IoT solutions, they became alerted in the middle of the night, they reacted, and they saved thousands of dollars of inventory, which would have been lost due to food safety risks,” says John W. Sammon III, senior vice president and general manager at ParTech Inc., which provides point of sale and food safety systems. “This is true whether the customer is a grocery, a C-store, a QSR restaurant or a food contractor.”

In these compa-  Roambee’s nies, IoT technol- BeeBeacon monitors individual packages ogy is optimizing throughout the shelf life in several supply chain to ways,” adds Sanjay identify tampering or spoilage risks. Sharma, CEO of Roambee, an IoT smart logistics and asset monitoring company, which provides end-toend real-time monitoring systems. “It can monitor the temperature, humidity and other environmental conditions of perishable foods and beverages as they go from one point to another until they reach a consumer store. You can also use IoT to predict shelf life based on the anomalies of cold chain conditions over a given period by measuring the various gases and the environmental conditions through  IoT-enabled devices allow users to receive reports and alerts in real time on their mobile phone or tablet.

www.foodlogistics.com

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SR: SOFTWARE & TECHNOLOGY continued the ripening process—and then fine-tuning these to create ideal ripening conditions.” Equally important, IoT can perform a certain amount of supply chain policing by using machine learning and AI on data that are collected, and then assessing this data to identify transporters that present a greater risk of food spoilage based on their transportation and delivery records. Managers can then take this data and meet with carriers so service level agreements (SLAs) can be established that hold the transporters more accountable.

BEST PRACTICES FROM THE EXPERTS As IoT emerges as a critical part of food spoilage and quality monitoring, companies in the food and grocery industry need to get ready for IoT and the benefits it has potential to bring. Here are four best practices:

➊ The key for the food industry is to start with IoT now, according to Sanjay Sharma, CEO of Roambee. “If you don’t know how to get started, then engage with an IoT company that can offer a vision strategy workshop. Its purpose is to explore the low-hanging fruit use cases in the food industry where your company can benefit immediately from IoT. The goal of the workshop should be to study your current supply chain processes and score each of them on the possible automation benefits. Typically, the biggest benefits with least amount of time and money investment are in the areas of food condition monitoring, in-transit visibility, electronic proof of delivery, and ETA predictions for better demand forecasting.”

Barriers to Adoption

➋ ParTech’s John W. Sammon recommends that companies also consider IoT’s

Of course, to succeed with IoT in end-to-end monitoring of food for quality and spoilage, your network has to reach far beyond your own front door and into the networks of suppliers, transporters and retailers. Integrating information

impact on their culture and people. “It’s not just a case of adopting IoT and IoT tools. Companies also need to promote and even require their people to use IoT tools in their work. In many cases, companies cannot make this transformation on their own. This is where it pays to ask for help. Seek out trusted sources for recommendations and referrals of solid solutions. Then, start small by testing and using an IoT solution for 90 days before you commit to going further. Communicate during the process. Share your enthusiasm with all of your stakeholders, and be actively engaged.”

➌ Make IoT an integral part of your technology plan and your business plan. “The world of loggers with Excel spreadsheets is being left behind,” says Terry Myers, CEO of Infratab. “Companies of all sizes in the food industry need to look at IoT and what the technology options are, or they won’t be able to compete. You also need someone in the business to develop ideas on how IoT can transform your operations. Then you can experiment a little with a proof of concept project. You don’t need a lot of money to do this—just a vision and an open mind as you follow what some of the larger organizations are doing.”

➍ Think of IoT as a revenue enabler, not a sunk cost. “If the right solution is implemented, food chain companies can use IoT to drive profits,” says Sharma. “IoT helps companies improve buffer inventory, extend the life of the perishables, improve demand forecasting by taking in-transit inventory into account, reduce order to cash cycles with electronic proof of delivery, improve security as products move through the supply chain, and reduce insurance premiums because of real-time audit trail capabilities.”

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exchanges with all of these parties, which use a vast array of manual and automated systems in their own right, can be daunting. “It is cumbersome for the following reasons,” says Sharma. “You have hardware and software vendors selling their own solutions, and then you have to find a system integrator to make all of these pieces fit together and interoperate. Additionally, many companies do not have onsite knowledge about how to develop strong RFPs and vet vendors so they can make a good vendor choice. Then on the back end, you often have to fit the IoT solutions into the ERP system that you are using.” Sharma suggests finding a provider that has a packaged solution that is inexpensive and that can be implemented in days without huge upfront investments. Infratab’s Myers agrees, adding that IoT technology is gradually replacing traditional loggers, which have been in use since the 1960s. “These older devices were never integrated into supply chain systems, so they didn’t facilitate much decision-making. When the FDA introduced food touch and trace regulations, every perishable food that came into the country had to be monitored. New technology that could be integrated with supply chains was needed to facilitate that. Now, we use mobile devices, smart tags and cloud-based data repositories to capture and make the information available.” For food and grocery companies, the best news about keeping all of this information in the cloud is that it enables companies to limit their investments in on-premise hardware and software, and opens opportunities for simple mobile device use like smartphones that workers already have.

“What we see is that most food and grocery companies have some form of sensing, but this is not in real time,” says Sharma. “A major challenge is getting the economics of IoT right so enterprises can experience instant ROI.” Meanwhile, IoT has been aggressively adopted by large supermarket chains whose emphasis is on food quality and the performance of their supply chains.

HOW CARGO LOSSES STACK UP A DOMINO-EFFECT OF COSTLY CONSEQUENCES WHAT HAPPENS NOW?

Lost Revenue

Delay of Goods Directly Impacts Sales

www.foodlogistics.com

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Disposal Requirement

Added Expense & Forces Change to Driver/Equipment Schedule

!

REJECTED LOADS TRIGGER A SERIES OF COSTLY NEGATIVE CONSEQUENCES

Insurance Claims

Unhappy Customer

Increased Premiums or Thousands Out of Pocket

Speaks for itself!

Affected Brand

Increased Risk for Damaged Reputation

Expedited Replenishment

More Costly Supply Chain Disruptions

DID YOU KNOW? But,

$50B+

$30B

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Moving Forward Despite the move to cloud-based technologies, which has made IoT cheaper, overall adoption of IoT in the grocery industry is somewhere between early and middle stages.

“We are even seeing chip makers start to incorporate more sensors on their chips,” Myers observes. “But we still have people in the industry who like to work with the older loggers.” Adds Sammon: “At the end of the day, it’s really about the people. IoT technology itself is simplistic, but a culture of awareness and responsiveness is only achieved by training people to use the tools.”

69%

of thefts/ attempted thefts occur during parking at unsecured locations***

*source: Federal Bureau of Investigation **source: The National Cargo Security Council ***source: FreightWatch International

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SECTOR REPORTS OCEAN CARRIERS/PORTS

BY KAREN E. THUERMER

OCEAN  FREIGHT F

GOES

DIGITAL

or years, the maritime Twelve percent indicated that there Moreover, a number of entities shipping sector has been is currently no visibility at all. The are paving the way for digitization. hamstrung by processes that survey found that among the bigThese developments bode well for remained highly manual. But today gest perceived challenges plaguing reefer cargoes that rely on a tightly that is changing with digitization. the industry are poor coordination integrated cold chain. There are many reasons why between partners (57 percent), too Steamship Line Efforts digitization—the turning of data into little transparency and visibility (50 truly useful, actionable information— percent), and inefficiencies within CMA CGM, for one, announced is critical for the maritime supply the supply chain (37 percent). in September a strategic seven-year chain. One excellent exampartnership with Infosys, The survey found poor coordination ple is the confusion that an Indian multinational % that among the between partners occurred last year with the specializing in next-generbiggest perceived bankruptcy of Hanjin Shipation technology, to simlittle transparency % too challenges and visibility ping Company, which left plify and transform its IT plaguing the industry are: within its giant container ships applications and improve % inefficiencies the supply chain marooned and hundreds customer service. of thousands of containers The effort involves adrift on Hanjin ships. Shippers could Despite hurdles, 99 percent of using Infosys’s Nia artificial intellinot track their cargo and worried those surveyed agreed that real-time gence platform (AI) and its scalable whether or not hundreds of tons of access and sharing of information automation platform, AssistEdge, goods would reach their clients. In is vital. Fifty-nine percent of those to revamp CMA CGM’s customer the case of perishables, the likelihood felt it’s extremely important. The service, improve process execution A survey from BPI of spoilage was a real possibility. areas identified as having the greatand enhance internal performance. Network, entitled Connectedness and visibility est need for improvement were: These new systems will allow “Competitive carrier to terminal coordination and CMA CGM to leapfrog to the next Gain in the Ocean in the ocean supply chain is a Supply Chain,” real concern. A survey from BPI planning (35 percent), supply chain generation of software-led business found that in a Network, entitled “Competitive visibility and information sharing (35 innovation that is customer friendly, survey of 200 Gain in the Ocean Supply Chain,” percent), terminal operations (24 cost effective and flexible. executive and published in June 2017, found that percent), cargo flow visibility and The partnership calls for opening professionals predictability (24 percent), and coor- a delivery center (DC) in Marseille, across the ocean 82 percent of those surveyed felt dination across carrier and shipper France, that will become a key supply chain these aspects need to be improved. alliances (24 percent). hub to attract and enhance local Today, significant strides are unexpertise. Infosys will acquire CMA felt connectedness derway to digitize these processes CGM’s Innovation and Delivery and visibility in the and help the industry collaborate Center in Dubai and expand its and share data between different footprint to the Middle East. industry need to entities and applications in the be improved. Answers for No Shows global maritime supply chain. With digitization, all entities involved in A company called 300 Cubits is the supply chain are on the same offering an initiative to help relieve page with real-time information, situations where customers do indicated that meaning they can adapt and react not bear the consequences for there is currently faster when disruptions and un“no show” bookings and “rollings,” no visibility at all. foreseen events occur. thereby resulting in lost trust be-

New solutions, including blockchain, bring longawaited visibility to the industry.

57 50 37

82

%

12%

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AL

tween shipping lines and customers. “Many shippers express discontent regarding rollings,” says Johnson Leung, co-founder, 300 Cubits. While reefer shippers may suffer fewer rollings, he sees even a 0.5 percent chance of rollings as painful for reefer customers given the sensitive shelf life of the reefer cargoes. Consequently, 300 Cubits is working to transform container shipping by introducing a bitcoin called TEU token for container shipping. “The TEU tokens may be used as shipment booking collateral,”

www.foodlogistics.com

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explains Leung. “Use of TEU tokens can assure that a booking confirmation is a real confirmation (i.e., no rolling). Or, if rolling happens, the shippers can get compensated. The size of compensation is decided by the size of collateral a shipper puts in. So a reefer shipper could put in collateral comparable to its financial exposure in the event of rollings to ensure its shipment gets loaded.” The solution involves three steps: (1) creating TEU tokens with limited supply through computer programming; (2) selling and listing a portion

of the TEU tokens in the crypto exchange so that all the tokens carry a market value; and (3) distributing a portion of TEU tokens to the industry, (i.e., liners and shippers for free for their use as booking collateral). “When using the TEU tokens as booking collateral, both the shipper and the liner involved in the booking will put in equal amount of TEU tokens, which will be returned to the original owner if he/she fulfills his/her obligation,” Leung explains. “We hope that the TEU tokens can become the smarter and more economical solution than the booking bank guarantee for the container shipping market.” Leung suggests that reefer customers may like features such as assurance in the delivery instead of loading, for which Cubits 300’s TEU Ecosystem can technically provide. In essence, he says, the TEU tokens bring the agreement element back to the booking process. “Process execution at both sides will be improved in the way that a liner

Many shippers express discontent

regarding rollings.” Johnson Leung, co-founder, 300 Cubits

NOVEMBER/DECEMBER 2017 | FOOD LOGISTICS

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DDC-EMC-ADV-0032-0617. Specifications are subject to change without notice. Detroit Diesel Corporation is registered to ISO 9001:2008. Copyright © 2017 Detroit Diesel Corporation. All rights reserved. Detroit™ is a brand of Detroit Diesel Corporation, a subsidiary of Daimler Trucks North America LLC, a Daimler company.

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Driven by the best. — THE NEW DETROIT ™ DD8 ™ ENGINE IN THE FREIGHTLINER M2 106. — The legendary maker of heavy-duty engines, now makes one for your business. Introducing the new Detroit DD8 engine, available in the versatile Freightliner M2 106— one of the best-selling medium-duty trucks on the road. The DD8 is specifically designed to keep businesses like yours on the move and profitable with an industry-leading maintenance schedule that features oil change intervals up to 3X better than the competition. Backed by our extensive service network and equipped with Detroit™ Connect Virtual Technician remote diagnostic service for maximum uptime. The legend continues with the new Detroit DD8 engine. SM

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SR: OCEAN CARRIERS/PORTS continued Bringing back the agreement element in the booking process

restores trust between the liners and shippers.” Johnson Leung, co-founder, 300 Cubits

does not need to guess if a booking is real, and a shipper does not need to guess if a booking confirmation is true, which is usually the reason both build so much buffer into their operation,” he says. “Bringing back the agreement element in the booking process restores trust between the liners and shippers.” In the near term, however, TEU tokens will not change the challenges such as different cut off times, different EDI standards, transmission of stowage requirement messages, and the sharing of data. “But the use of TEU tokens will help introduce the container shipping industry to the blockchain,” Leung says. “If use of TEU tokens manage to, in the long run, consolidate many container shipping processes onto one blockchain, we may have a common platform for the sharing of data inside the shipping industry.”

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66

The Port of Los Angeles and GE Transportation are working on a firstof-its-kind information portal that will give all stakeholders a bird’s eye view of the maritime supply chain. Essentially, the portal plans to raise

35% 35% 24% 24% 24%

carrier to terminal coordination and planning supply chain visibility and information sharing terminal operations

cargo flow visibility and predictability coordination across carrier and shipper alliances

visibility among all stakeholders in the port’s supply chain by providing information while cargo is in transit rather than just days before it arrives at port. Stakeholders can therefore plan in advance for container movements. Launched in November 2016, the digital solution keeps cargo flowing efficiently through the Port of Los Angeles, the largest container port in North America. Essentially, users are able to access information from one site on their computer and relay that information to their chassis, provider, trucking company, railroad, etc. “The assigned trucking company, for instance, would know when to pick up a box. They would know a week out that they have a certain number of boxes coming,”

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

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

BluJay Solutions Co....................................................... 21

Old Dominion Freight Line Inc................. 35, 37, 39

CAMS Software Corp................................................... 57

Penske Truck Leasing.................................................... 17

CaseStack Inc................................................................... 47

Peoplenet............................................................................ 29

Columbia Machine, Inc................................................. 40

PLM Trailer Leasing.......................................................... 5

Coyote Logistics.............................................................. 43

Port Tampa Bay................................................................ 19

Detroit - A Daimler Group Brand....................64-65

PROCAT Distribution Technologies...................... 27

FG Products Inc............................................................... 46

Q Products and Services............................................. 59

Ford Motor Co............................................................... 2-3

Sensitech, Inc.................................................................... 23

Freightliner - A Daimler Group Brand...........60-61

SICK Inc.................................................................................. 9

GPS Insight........................................................................ 49

Stoughton Trailers.......................................................... 13

Great Dane Trailers Inc................................................ 70

Superior Tire & Rubber Corp.................................... 58

Infratab................................................................................ 50

SWISSLOG......................................................................... 53

Interlink Technologies.................................................. 42

System Logistics Corp.................................................. 44

Isuzu Truck......................................................................... 25

TranSolutions Inc............................................................ 66

Johanson Transportation Service........................... 63

Utility Trailers................................................................... 55

Kenworth Truck Corp...................................................... 7

Velociti Alliance North America, Inc...................... 41

MODEX 2017.................................................................. 51

Viastore Systems............................................................ 45

The Numina Group........................................................ 11

Viking Cold Storage....................................................... 33

FOOD LOGISTICS | NOVEMBER/DECEMBER 2017

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The areas identified as having the greatest need for improvement were:

explains Chris Chase, marketing manager at the Port of Los Angeles. “Today, terminal operators do not know what truckers are going to pick up that container,” he adds. “If they know one week out, they can make operations more efficient. It gives them a more holistic view.” The genesis of the portal stems from the fact that cargo data goes dormant while in transit, especially for shipments coming from Asia. “No one does anything with that data until a few days before the ship arrives at port,” Chase says. “Our thinking is, why not take advantage of that time while the ship is on the water to make a plan for when it comes landside.” The portal won early success during a pilot between May and July at APM Terminals with one string of vessels operated by Maersk and MSC. Consequently, the port and GE Transportation have agreed to new commercial agreements worth up to nearly $12 million and extended their relationship for at least five years. They plan to get the balance of the port and all shipping lines and terminals on line with the project. “We expect to have a broader portal and a more complete picture to put in the hands of users by mid-year 2018,” Chase says. “Right now, we are on the data acquisition side of things, so we are trying to on-board terminals and shipping companies. This involves completing data hook ups, understanding what data is being sent and how to display it, and updating systems.” And while the program’s success is obvious, on boarding customers is a huge job. The port’s fiscal year, which ended July 1, resulted in the port handling over 9 million TEUs. “The estimate is that 9 million TEUs will generate over a billion pieces of data the system will have to capture,” Chase remarks. Karen E. Thuermer is an Alexandria, Virginia-based journalist who has been writing about logistics for several decades. www.foodlogistics.com

12/6/17 3:47 PM


Global Supply Chain Solutions for the Food and Beverage Industry

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

8

2018

CHAMPIONS AWARD: ROCK STARS OF THE SUPPLY CHAIN Recognizing individuals whose vision is shaping the future of the global food supply chain Nomination deadline: Jan. 5, 2018 Winners announced in March 2018 issue

TOP GREEN PROVIDERS In recognition of companies demonstrating leadership in sustainability in the food and beverage supply chain Nomination deadline: March 30, 2018 Winners announced in June 2018 issue

TOP 3PL & COLD STORAGE PROVIDERS Honoring the leading 3PL and Cold Storage Providers that support the food and beverage supply chain Nomination deadline: May 25, 2018 Winners announced in August 2018 issue

FL100+ TOP SOFTWARE & TECHNOLOGY PROVIDERS Recognizing top software and technology providers supporting the global food and beverage supply chain Nomination deadline: Sept. 21, 2018 Winners announced in Nov/Dec 2018 issue

Online nominations open approximately eight weeks before the deadlines listed above. Award results, information and nominations posted on:

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

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FOOD (AND MORE) FOR THOUGHT

BY LARA L. SOWINSKI

Challenges and Opportunities FOR FOODSERVICE INDUSTRY IN 2018 BY LARA L. SOWINSKI

In September, I participated as a panelist during KINEXO’s executive summit, which gathered together the company’s customers, suppliers and industry representatives to share supply chain insights and best practices, including those related to the foodservice industry.

I followed up with Todd Williams, president of KINEXO, for his thoughts on key trends in the foodservice industry as we look ahead to 2018…

68

Sowinski: Despite a generally positive outlook for 2018, the foodservice industry faces some headwinds in the form of changing consumer demands and new competition. What are you seeing, and how is KINEXO responding? Williams: The rise of meal kit services, direct-to-door grocery delivery and retail reinvention, which ranges from menu offerings to in-store experience, are part of the rapidly changing consumer demands that are definitely disrupting the foodservice industry. Furthermore, as restaurants develop programs to address niche audiences, it’s likely that limited time offer (LTO) frequency will also rise. Fortunately, we are equipped to manage the most challenging LTO programs and are prepared for an increased frequency going forward. To that point, we are also able to scale for redistribution opportunities so that customers can experience flexibility with produce like never before. Sowinski: The impact of the Food Safety Modernization Act (FSMA) and other regulations, coupled with tighter capacity in the transportation sector and ongoing driver shortages, are likewise impacting the foodservice industry. How is KINEXO addressing these impacts? Williams: From pasture to plate, there is congestion in the supply chain. The impacts you mention, along with others such as TODD WILLIAMS natural disasters, are exacerbating an already stressed supply chain. We are all feeling the crunch and working to be as proactive as possible to ensure a healthy supply chain. For example, one way we

FOOD LOGISTICS | NOVEMBER/DECEMBER 2017

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have addressed the capacity issue needs and drive results. The speed is by utilizing dedicated fleets in of insights and transparency are certain markets, and the results also key drivers when it comes are very positive. Our vast network to our technology strategy. Our of trusted carriers will enable us proprietary customer portal allows to expand this model to ensure customers to receive up-to-date inconsistent, reliable capacity going formation on their business, so they forward. In addition, our deep and can stay in the know and quickly long-standing relationships with take action on market trends. many of the nation’s most trusted Sowinski: Looking ahead to the and respected carriers enable us to next 12-18 months, what are some explore new initiatives with confikey trends and developments related dence, such as the dedicated freight to the food supply chain that we program, and simultaneously assure should be keeping an eye on? that regulations such as FSMA and Williams: I believe we will see the ELD mandate are being upheld. more frequent LTOs featuring Sowinski: Software and technology unique ingredients as restaurants capabilities are one of the indisputable tweak menus to address rapidly differentiators today in the transporchanging consumer demands and tation and logistics sector. evolving tastes. At the What are some of the highWe will see same time, we are seeing lights of KINEXO’s strategy more frequent more competing chains inin this important area? terested in collaborating to limited time Williams: Data, buy non-emotional prodoffers (LTOs) technology and innovafeaturing unique ucts. “Co-op-etition,” or tion are at the heart of the commingling of freight, ingredients as everything we do—and restaurants helps offset capacity issues we believe they are and keep costs down. We tweak paramount to the suchope to see more chains menus.” willing to explore this, as it cess of any supply chain Todd Williams, strategy. We continue is a very effective supply president, KINEXO to invest in and leverage chain strategy and one the industry’s most adthat we use frequently for vanced technology offerings so that appropriate customers, products we are able to consistently provide and routes. customized supply solutions for our Meanwhile, we’ll continue customers. Yet, great technology focusing on providing unparalleled and an abundance of data only go service and value to customers, as so far without an experienced team well as maintaining a healthy and of professionals who are able to trusted carrier network. We will interpret and actualize both—and a continue to think outside the box customer willing to share data and to address the complex carrier visibility into their supply chain. capacity issues, as well as the other Our knowledgeable and trustsupply chain challenges driving worthy team of network engineers, freight prices up, and will focus on strategists and analysts works acquiring new talent to support our closely with our forward-thinking 2018 new business initiatives, as customers to transform their data well as our evolving programs, techinto tailored programs that fit their nologies and data systems. www.foodlogistics.com

12/6/17 3:16 PM


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2019

August 22 April 25

3PLs & 4PLs

_________________

In addition to providing traditional transportation and logistics services, today’s 3PLs and 4PLs provide a wealth of value to their food and beverage customers, increasingly serving as supply chain consultants, regulatory compliance experts, and software providers. Join industry executives for a roundtable discussion about this evolving role and how it affects the expectations and relationships between 3PLs/4PLs and their customers.

May 23

June 13

_________________

Warehouse Automation

The integrated global cold chain requires seamless movement of product and data between all stakeholders—from food growers and manufacturers, to transportation partners, ports, cold storage providers and others who collectively ensure food safety and freshness. What investments and innovations are making the most impact across the global cold chain? A panel of industry executives examines this topic from several angles.

As the food/bev industry continues to embrace the myriad benefits of warehouse automation, new opportunities, including gains in productivity and safety, are emerging. What types of warehouse automation is making the most impact? Where does IoT, AR and similar technologies fit in? How can executives effectively evaluate warehouse automation solutions in order to make the right decision for their organizations?

Cold Chain I

_________________

Software & Technology I

September 19

Cold Chain II

October 17

Software and technology touches virtually every aspect of the global food supply chain. The positive impact on time- and temperature-sensitive perishables is especially profound, helping to support longer and more complex supply chains, omnichannel grocery, regulatory compliance and recall events, to name a few.

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

_________________

_________________

_________________

Software & Technology II

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

December 12

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2017

THE 14TH ANNUAL

FL100+

THE FOOD AND BEVERAGE INDUSTRY’S TOP SOFTWARE AND TECHNOLOGY PROVIDERS

Your cold chain monitoring solution

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 34 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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Food Logistics November December 2017  

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

Food Logistics November December 2017  

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