Food Logistics Nov/Dec 2018 by Supply+Demand Chain/Food Logistics

Food Logistics

GROWING TRADE VOLUMES REQUIRE SMARTER PORTS

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Global Supply Chain Solutions for the Food and Beverage Industry

EMERGING TRENDS IN THE GLOBAL FOOD SUPPLY CHAIN INNOVATIONS IN TECHNOLOGY CONTINUE TO SHAPE THE FUTURE OF FOOD AND BEVERAGE Photo Credit: Iron Ox

TAKING ACTION WITH IOT

Issue No. 202 November/December 2018

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2018

FOX T ROT SYS T E MS

THE 15TH ANNUAL

FL100+

THE FOOD AND BEVERAGE INDUSTRYâ&#x20AC;&#x2122;S TOP SOFTWARE AND TECHNOLOGY PROVIDERS

DISTRIBUTION

TECHNOLOGIES

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 28 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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2018

FOX T ROT SYS T E MS

THE 15TH ANNUAL

FL100+

THE FOOD AND BEVERAGE INDUSTRYâ&#x20AC;&#x2122;S TOP SOFTWARE AND TECHNOLOGY PROVIDERS

DISTRIBUTION

TECHNOLOGIES

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 28 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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Solutions for Professionals. Developed and Supported by Professionals.

Built for Grocery Transportation ◆ Planning through Execution ◆ 100% Deployment Success Rate ◆

Welcome to the 21st Century.

CAMS Software Corporation Innovative Carrier Activity Management Software for Food and Grocery Distribution Phone: 1-866-699-CAMS (2267) Email: info@prospero.com

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ON THE MENU

OCTOBER 2015 ISSUE NO. 171

November/December 2018 ISSUE NO. 202 COLUMNS FOR STARTERS

T echnology Saves the Farm

Technology solutions like those offered by Iron Ox are dramatically changing agriculture and logistics. COOL INSIGHTS

COVER STORY

Emerging Trends in the Global Food Supply Chain The complexities of moving food and beverages throughout the supply chain are ever growing. The Food Logistics’ editors highlight a few trends for the year ahead.

FEATURE

TRANSPORTATION

THIRD-PARTY & REFRIGERATED LOGISTICS

ine Supply Chains W Benefit from Improved Handling and Monitoring

An integrated cold chain combined with advanced software solutions is resulting in less damage to product, along with enhanced customer experience and brand reputation.

SECTOR REPORTS WAREHOUSING

S mart Labels Clear the Way for Consumer, Enterprise Transparency

FOOD (AND MORE) FOR THOUGHT

C argo Thieves Hunger for Food Shipments

U p Next for IoT in the Food Supply Chain: Predictive Analytics

Advances in cloud software and wireless communications have opened the door for comprehensive data collection at the product level and actionable insights. OCEAN PORTS & CARRIERS

G rowing Trade Volumes Require Smarter Ports

Imports and exports of perishable food are particularly sensitive to port infrastructure, and dredging is vital to keep pace with future demand.

A Gathering Place for Goodness

Tackling North Minneapolis’ chronic food desert, the nonprofit grocery store North Market keeps costs manageable by taking control of its supply chain and distribution.

SOFTWARE & TECHNOLOGY

The 2018 FL100+

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

Americold offers a unique perspective on the current state of the industry.

From corn and wheat to canned tuna and octopus, no region is exempt.

SPECIAL REPORT

C ool Trends in A Cool Space

DEPARTMENTS

Supply Scan 10 Food on the Move 59 Ad Index 8

WEB EXCLUSIVES • Solutions for the Supply Chain’s Truck Technician Shortage foodlogistics.com/21031991

• An Overlooked Weapon in the Fight Against Malnutrition: Small Store Logistics foodlogistics.com/21032010

Retailers, suppliers and logistics providers are increasingly using smart labels to satisfy a desire from the enterprise and the consumer for more visibility.

• Safety First, Reducing Liability Second South Carolina Ports Authority

foodlogistics.com/21014606

Published and copyrighted 2018 by AC Business Media. All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording or any information storage or retrieval system, without written permission from the publisher. Food Logistics (USPS 015-667; ISSN 1094-7450 print; ISSN 1930-7527 online) is published 10 times per year in January/February, March, April, May, June, July, August, September, October and November/December by AC Business Media, 201 N. Main Street, Fort Atkinson, WI 53538. Periodicals postage paid at Fort Atkinson, WI 53538 and additional mailing offices. POSTMASTER: Send address changes to Food Logistics, P.O. Box 3605, Northbrook, IL 60065-3605. Canada Post PM40612608. Return undeliverable Canadian addresses to: Food Logistics, Station A, P. O. Box 25542, London, ON N6C 6B2. Subscriptions: U.S., one year, $45; two years, $85; Canada & Mexico, one year, $65; two years, $120; international, one year, $95; two years, $180. All subscriptions must be paid in U.S. funds, drawn from a U.S. bank. Printed in the USA.

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FROM THE EDITOR’S DESK

DETAILS

Photo Credit: Iron Ox

FOR STARTERS

TECHNOLOGY SAVES THE FARM A

SOWINSKI

s I write my final editor’s column of 2018, the U.S. is in the midst of another romaine lettuce recall. This is the third major—and deadly—recall of the leafy green since late last year. While our industry continues to make significant progress with regard to food safety, there is clearly more work to do. Fortunately, many companies are attaining noteworthy achievements. California-based Iron Ox stands out as the first fully autonomous indoor farm that is not only technologically advanced, but also highly sustainable and less risky in terms of food safety. The company is bringing together the latest in plant science, machine learning and robotics to increase “the availability, quality and flavor of leafy greens including romaine lettuce, butterhead lettuce and kale,” along with herbs such as basil, cilantro and chives, it says. Iron Ox designed its indoor farm around robots. “That means not just adding a robot to an existing process, but engineering everything, including our own hydroponic grow system, around our robots,” explained Brandon Alexander, the company’s co-founder and CEO. There are two key proprietary robotic systems: the robotic arm and the mobile transporter. The transporter uses technology like that found in a self-driving car— sensors and computer vision—while

the robotic arm analyzes each plant at sub-millimeter scale to ensure plant health, maximize crop growth and enhance food safety. Jon Binney, Iron Ox’s co-founder and CTO, noted that, “We’re not just growing sustainable and affordable produce; we’re capturing huge amounts of actionable data. This treasure trove of data means we can make sure every plant leaving our farm is perfect, and we will have the world’s largest data set of plants in addition to highly accurate algorithms for disease identification.” As Food Logistics wraps up 2018, our cover story takes a look at some exciting technologies and trends and how they are contributing to changes in our industry. This issue also includes our annual FL100+ award, which profiles companies whose software and technology is positively impacting the global food supply chain. The challenge to provide abundant, nutritious, safe food to a growing world population remains a constant. At the same time, our industry’s unflagging desire to innovate and think creatively in order to solve problems cannot be underestimated. Enjoy the read.

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

Published by AC BUSINESS MEDIA 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 Web & Copy Editor Mackenna Moralez mmoralez@ACBusinessMedia.com Contributing Editor Barry Hochfelder Senior Production Manager Cindy Rusch crusch@ACBusinessMedia.com Creative Director Kirsten Wiskus Audience Development Director Wendy Chady Audience Development Manager Angela Franks ADVERTISING SALES (800) 538-5544 Associate Publisher (East Coast) Judy Welp (480) 821-1093 jwelp@ACBusinessMedia.com Sales Manager (Midwest and West Coast) Carrie Konopacki (920) 542-1236 ckonopacki@ACBusinessMedia.com National Automotive Sales Tom Lutzke (630) 484-8040, tlutzke@ACBusinessMedia.com EDITORIAL ADVISORY BOARD Jaymie Forrest, 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 Jeff Moriarty, InfoGroup (518) 339-4511 jeff.moriarty@infogroup.com REPRINT SERVICES Carrie Konopacki (920) 542-1236 Fax: (920) 542-1133 ckonopacki@ACBusinessMedia.com AC BUSINESS MEDIA INC. CEO Barry Lovette CFO JoAnn Breuchel Digital Operations Manager Nick Raether Digital Sales Manager Monique Terrazas Published and copyrighted 2018 by AC Business Media. All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording, or any information storage or retrieval system, without written permission from the publisher.

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SUPPLY SCAN

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

PORT EVERGLADES CELEBRATES HISTORIC CARGO RECORD

BRIGHTFARMS TO SELL LOCALLY GROWN PACKAGED SALADS IN OHIO VALLEY WALMART STORES

Port Everglades reached a record high in containerized cargo this past fiscal year with 1,108,465 TEUs moving through the port, creating a 3 percent year-over-year increase and the fifth year Port Everglades exceeded 1 million TEUs. “We’ve enjoyed a robust growth period and are moving forward with significant investments to maximize the use of our land, cranes and berth space,” says Port Everglades chief executive and port director Steve Cernak. Port officials attribute the growth to Florida’s increasing consumer population and shipping activity from Northern Europe.

BrightFarms’ locally grown packaged salads will be sold at select Walmart stores in Ohio, Pennsylvania and West Virginia. The salads will be grown in BrightFarms’ Wilmington, Ohio, greenhouse, the company’s fourth commercial greenhouse. Photo Credit: BrightFarms The company plays a key role for national retailers as consumer demand for locally produced food increases. “The heart of our mission is to provide more of the population with access to fresh, delicious and nutrient-rich local produce. By partnering with Walmart, the largest retailer in the world, we’re able to provide a wider portion of consumers with year-round local produce that was grown by farmers in their own community,” says Paul Lightfoot, CEO of BrightFarms.

ALBERTSONS TESTS FULFILLMENT CENTERS POWERED BY AI

Albertsons is testing artificial intelligence (AI) to simplify and automate online orders picked at store-level. The grocer is partnering with Takeoff Technologies to test a “micro-fulfillment center” concept, supported by Takeoff’s AI capabilities, Chain Store Age reports. The automated center will leverage Albertsons’ existing supply chain store footprint and will be able to pick various types of products. According to Chain Store Age, as a customer enters their order using Albertsons’ e-commerce interface, the order will then be delivered to the automated system, allowing Takeoff’s solution to take over the fulfillment process. AI-enabled robots and a system of totes and conveyors will collect items for online grocer orders in minutes. The items will then be delivered to an Albertsons’ employee to prepare the order for the customer. The automated center will reduce the amount of time it takes to process individual customer orders. The company says it is the first national grocer to implement an automated e-commerce fulfillment center.

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MONDELEZ LAUNCHES INNOVATION HUB, PLANS TO RAISE PRICES

Mondelez International announced that it is launching an innovation hub called SnackFutures in November. The hub will create new brands and businesses while reworking the company’s smaller brands for greater success. “SnackFutures will unlock snacking growth opportunities around the world that respond to emerging trends and changing consumer preferences,” says Tim Cofer, chief growth officer and the head of the new hub, in a statement. According to MarketWatch, Modelez shares are up 2 percent in premarket trading, but down 6.3 percent for the year to date. Despite bright plans for the new hub, Mondelez is hiking prices of its products to combat rising transportation and freight costs. The company’s cost-saving efforts and lower cocoa prices helped offset higher freight logistics costs, but as the driver shortage continues that number will only grow.

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SUPPLY SCAN

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

Kroger is expected to order 20 fulfillment centers from British online grocer Ocado. The two companies formed a partnership this last May to bring fully automated warehouses to the United States. According to Reuters, Ocado will increase its delivery business with the construction of robotically operated warehouses, or what the company refers to as Customer Fulfillment Centers (CFCs). Kroger will order up to 20 CFCs over the next three years. Reuters reports that the first three automated warehouses will be ordered by the end of 2018. Ocado will develop and operate all sites in the U.S. as well.

STUDY FINDS FOOD SAFETY A CONCERN AT LOCAL FARMERS MARKETS

Photo Credit: Pixabay

KROGER ORDERS 20 OCADO FULFILLMENT CENTERS

A study published by The Pennsylaviania State University in the Food Protection Trends assessed food safety behaviors of vendors at more than 40 Pennsylvania farmers markets and found that many didn’t follow basic sanitary practices. As a part of this investigation, published in an earlier study, the researchers also found harmful bacteria in meat and produce sold at the markets. The researchers found large discrepancies between the food safety precautions vendors claimed they were taking and what the researchers observed them doing, according to an article published by Consumer Reports. In addition to other factors, such as contamination on the farm, the report notes poor hygiene could help explain why levels of bacteria with the potential to cause food poisoning were so high in the food sold at these markets. E. coli was present in 40 percent of beef samples, 18 percent of pork samples, nearly a third of lettuce and kale samples, and 17 percent of spinach samples. Listeria was found in 8 percent of beef, 2 percent of kale, 4 percent of lettuce and 7 percent of spinach. This new study, however, shouldn’t keep consumers from purchasing goods at their local farmers market, says James E. Rogers, Ph.D., director of food safety research and testing at Consumer Reports. “Not all farmers markets are the same, and this is one study,” he says. “But it does show that consumers need to be aware of the food safety issues related to farmers markets and take some precautions.” © 2017 Cubic Designs

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FOOD ON THE MOVE

LOGISTICS TRENDS IN OUR INDUSTRY

ASSOCIATED WHOLESALE GROCERS SELECTS ORBCOMM’S FLEET MANAGEMENT SOLUTION FOR DRY AND REFRIGERATED TRAILERS

MSC ENHANCES PERISHABLE COMMODITY SHIPPING WITH RECORD 5,000 XTENDFRESH REFRIGERATED CONTAINERS

Mediterranean Shipping Company (MSC) is expanding its fleet with a record-setting order of 5,000 refrigerated containers equipped with Carrier Transicold’s XtendFRESH atmosphere control technology. The system manages oxygen and carbon dioxide levels within refrigerated containers and removes ethylene, effectively slowing the ripening of produce. “By adding atmosphere control for select perishable cargoes, we are enhancing the care we provide for the valuable commodities we ship for our customers,” says Giuseppe Prudente, chief logistics officer at MSC. “XtendFRESH technology enables MSC to transport fruit and other refrigerated cargo over long distances, creating tremendous new opportunities for exporters and importers.”

ORBCOMM announced that it was selected by Associated Wholesale Grocers (AWG) to provide a fleet-wide trailer monitoring solution for its dry and refrigerated assets. ORBCOMM’s end-to-end solution provides wireless connectivity through its ruggedized hardware and a cloud-based analytics platform and information management engine for optimal fleet management. AWG will use ORBCOMM’s telematics solution to provide comprehensive data to improve communication to its members and enhance customer service. The company will receive advanced reporting and analytics for its entire mixed fleet, allowing AWG to have access to customization, advanced data mining, configurable reporting, intelligent search options, multiuser Photo Credit: ORBCOMM management and advanced mapping for enhanced fleet visibility. AWG expects to complete deployment of ORBCOMM’s fleet management solution by the end of 2018.

DAT SOLUTIONS’ MONTHLY FREIGHT REPORT

Glad Tidings—and More Trucks By Mark Montague Mark Montague is a senior industry pricing 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.

Few regulations have affected truckload capacity like the electronic logging device (ELD) mandate. Finding trucks during the first half of 2018 was a challenge for shippers and freight brokers and made it tough to build out carrier networks and stay on budget. However, trucks have come back to the market. According to the Federal Motor Carrier Safety Administration, truckers are complying with ELD rules at an exceptional rate. After 1.5 million roadside inspections since April, when “hard enforcement” began, less than 1 percent of drivers have been caught without an ELD, and HOS violations in general have fallen by nearly 50 percent. In October, there were 25 percent more trucks posted on DAT load boards compared to September, and 37 percent

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more compared to October 2017. At the same time, there was less freight to move than expected. Hurricanes Florence and Michael in the Southeast U.S., as well as Typhoon Mangkhut in Hong Kong, pushed the usual October freight surge into November. Even then, there was capacity to soak it up. A week before Thanksgiving, reefer freight was the only solidly gaining segment on the spot market, led by strong volumes out of California and central Florida. A slowdown from the Midwest tempered overall results. Spot rates remain well above 2017

levels due mostly to the higher cost of fuel, but even that is falling. Lower surcharges, combined with more available capacity, add to the good news for shippers this holiday season—and take any lingering sting out of the “ELD effect.”

www.foodlogistics.com

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FOOD ON THE MOVE

LOGISTICS TRENDS IN OUR INDUSTRY

PORTS OF LOS ANGELES AND LONG BEACH PARTIALLY QUARANTINED

CHEP TO PROVIDE PALLETS AND SUPPLY CHAIN EFFICIENCIES TO NATIONAL BEEF

CHEP signed a long-term agreement with National Beef on Oct. 23 for the company to exclusively use CHEP pallets at its Kansas processing locations. The agreement will address the ongoing issues of rising transportation and lumber costs as the companies target overlapping transport routes where bottom-line efficiencies can be quickly realized. “Our work has always eliminated waste throughout the supply chain,” says Laura Nador, president of CHEP North America. “Customers value our share and reuse model combined with the scale and density of our network that allows us to be faster and more responsive to their specific needs. We’re excited about our collaboration with National Beef and look forward to putting our expertise in the food and beverage industry to work for them.”

INTEL AND ROLLS-ROYCE TEAM UP ON AUTONOMOUS CARGO SHIPS

Rolls-Royce plans to use Intel chips to help develop a global system for autonomous cargo ships, Venture Beat reports. Rolls-Royce is currently in the development stage, with plans to deploy an autonomous fleet by 2025. Integrating Intel’s Xeon scalable processors on the ships will solve one of Rolls-Royce’s biggest challenges: efficiently recording and managing the vast amount of data generated from the ship. The company estimates a single ship could generate 1TB of data per day for each ship. “This collaboration can help us to develop technology that supports ship owners in the automation of their navigation and operations, reducing the opportunity for human error and allowing crews to focus on more valuable tasks,” says Kevin Daffey, director of engineering and technology and ship intelligence for Rolls Royce, in a statement.

www.foodlogistics.com

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A portion of the Los Angeles and Long Beach ports were placed under quarantine in November after a Mexican fruit fly infestation occurred. Three flies were found, including two mated females, posing a risk for further infestation. Sterile male Mexican fruit flies were released as part of an eradication effort as the Mexican fruit fly population decreases and wild flies reach the end of their natural life span with no offspring to replace them. The area was also treated with an organic formulation of Spinosad to remove any mated female fruit flies. Additionally, fruit removal occurred within 100 meters of properties with larval detection or mated female detections.

CHIQUITA UPGRADES CONTAINER FLEET, ACHIEVES EMISSIONS REDUCTION GOAL

Chiquita Brands remains committed to its sustainability efforts as the company reduced energy consumption of its more than 15,000 40-foot container fleet. The company first began a comprehensive refrigerated container upgrade program in 2009, which has led to an annual reduction of 17,000 tons of CO2 emissions. With new improvements in design and operation efficiency, the containers will require less energy, be equipped with greenhouse-friendly refrigerants and have a reduced emission footprint. Since starting its sustainability efforts, Chiquita replaced more than 11,000 older containers with 5,700 new ones, creating an 11 percent reduction in electricity consumption. With each new container, the company achieves an energy savings of up to 35 percent. “Looking back over these past years’ work with the container fleet upgrade, we can proudly say we have achieved our goal,” says Jamie Postell, director of sales North America for Chiquita. “We’ve saved an equivalent of the CO2 emitted to 3,000 cars per year. NOVEMBER/DECEMBER 2018 | FOOD LOGISTICS

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COOL INSIGHTS

BY LARA L. SOWINSKI

COOL TRENDS IN A

COOL SPACE R

 Americold’s newest facility in Middleborough, Massachusetts, is a customer-dedicated site to support the New England cranberry harvest.

ecently, Carl Fowler, Americold’s senior vice president of regional accounts, shared his insights on key trends shaping up in the cold chain. Given its rank as the world’s largest temperature-controlled 3PL, Americold offers a unique perspective on the current state of the industry and where it’s headed. The company partners with over 2,300 customers, including producers, growers and retailers, and is privy to what’s happening with crop production as well as transportation providers and ports—in other words, the entire cold chain. In turn, Americold leverages this information and data to help its customers spot and respond to developing trends, says Fowler. In particular, the ongoing capacity constraint in the transportation sector is one that affects the food logistics space significantly, he says, both holistically and within critical markets. Americold has been making strategic acquisitions to boost their

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distribution infrastructure, Fowler says, with an emphasis on recognizing not only “shifts in consumer buy patterns, and new types of services and assets that would be needed,” but also “changes in production and global distribution” that are being driven by consumers. For instance, it’s no longer building infrastructure to solely achieve economy of scale, but to also support small lot production and delivery demands by today’s consumers. Ongoing urbanization as people move from rural and suburban communities to cities adds even more pressure to existing distribution models. “It’s not just about acquiring infrastructure to warehouse stuff,” he adds. “Rather, it’s making sure that we have the right type of assets in the right markets to support the needs of today’s producers, retailers and consumers.” The changing landscape prompted Americold to think differently. “We’ve focused a lot of energy, human capital, and have made significant capital investment in infrastructure and technology on a transportation consolidation solution to support not only the big players, but also the small- and mid-tier operators,” Fowler says. “We’re able to help them protect service windows and meet service levels as well as help control costs.” While capacity

constraint in the transportation sector has traditionally ebbed and flowed, Fowler suggests the current conditions may be the new normal. “With the urbanization of America, fewer people are farming to support their families’ food consumption needs. There will always be a requirement for temperature-controlled distribution; there will always be demand for capacity to support the population.” It’s not a shortage of equipment, he says, but a “human capital” issue. The human capital issue is not likely to get any reprieve from younger workers seeking employment as truck drivers, he adds. It’s the result of a cultural shift that requires some outside-of-the-box thinking, perhaps easing restrictions on Mexican drivers to allow them expanded access to operate on U.S. highways and roads is one alternative, he says. Another idea is to attract more drivers by offering a significant pay increase for improved service and creating a more collaborative environment. Indeed, boosting collaboration among all cold chain stakeholders truly yields long-term solutions to universal problems, says Fowler. The goal is to focus on the problems everyone is trying to solve and figure out a way to get there together, he explains, which is different from “tell me how many positions you need, and I’ll tell you what the rate is for those.” Fowler says collaboration throughout the cold chain is becoming more prevalent, “because through collaboration, we find opportunities to gain efficiency through partnership, lower costs and better solutions for the client base.” www.foodlogistics.com

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COVER STORY

BY EDITORIAL STAFF

EMERGING

TRENDS IN THE GLOBAL FOOD SUPPLY CHAIN

wo major romaine lettuce recalls this year alone, among dozens of other food-related outbreaks. Increasing consumer demands, from faster shipping and improved transparency to greater fresh food selections and e-commerce options. The threat of a global trade OF CONSUMERS SAY war and seemingTHAT COOKING A ly never-ending MEAL IN THEIR OWN tariff hikes. TightKITCHENS IS THE BEST ening trucking WAY TO ENSURE IT IS capacity and a SAFE TO EAT. labor shortage. Getting nervous yet? Two thousand eighteen brought all of these challenges and more for players

77%

throughout the global food supply chain. There is good news, though. Innovations and technological advancements are working every day to solve these complexities. Below, the Food Logistics’ editors touch on a few solutions and trends for the year ahead.

Innovation Boosts Food Safety Food safety is paramount to our industry. While the Food Safety Modernization Act is instrumental

1 IN 10

in standardizing and improving processes in the food supply chain that support improved food safety, technology innovations and breakthroughs are helping the industry achieve its goals at a faster pace. SafeTraces is a technology company that is using non-living, foodsafe DNA barcodes to “tag” food so that it can be traced through the supply chain. The technology got its start at Lawrence Livermore National Labs in California. From there, SafeTraces’ team of entrepreneurs, scientists and engineers transitioned the technology from the lab to the industrial sector with a focus on improving food safety. The DNA barcodes are made of seaweed and give food producers, processors and consumers visibility into food origin and safety.

PEOPLE FALL ILL EVERY YEAR

FROM EATING CONTAMINATED FOOD World Health Organization

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www.foodlogistics.com

12/4/18 1:19 PM

420,000

PEOPLE DIE EACH YEAR FROM FOODBORNE ILLNESS They are invisible, edible, tasteless pany whose product stands out in and approved by the FDA. The the area of food safety, particularly DNA barcodes are applied directly for its ability to quickly and safely to the food rather than the packagsanitize transport trailers, including ing or pallet, and provide informarefrigeration units and air ducting. tion in minutes as opposed to days The company’s Silver Dihydrogen or weeks. Citrate antimicroAccording to bial is a patented Ulrike Hodges, vice sanitizer/disinfecpresident of busitant that uses an ness operations, ion-based technolOF CONSUMERS the DNA barcode ogy in a mist form, SAID GRAINS, BEANS solution can be apmaking it easy and AND PASTA ARE plied to solid food, effective to apply THE SAFEST FOODS, grain and bulk food, without over satuFOLLOWED BY as well as oils, juices ration and excess FRESH FRUITS AND or other liquids. water remaining in VEGETABLES AT 42% When coupled the trailer. with a blockTrailer downtime LEAFY GREENS AND chain-based or is virtually elimiLETTUCE WERE TIED centralized code nated because the WITH PROCESSED registry system, PURE mist works in FOOD AS THE NEXT SafeTraces’ DNA four minutes versus CATEGORY OF HIGHEST barcodes create the two hours that CONCERN, WITH unbreakable links it usually takes to 45% OF CONSUMERS between physical wash down a trailer RATING THEM objects and their with conventional RISKY, AND digital certificates. soap and water. ToIn addition, the tal application time DNA barcodes are for a 53-foot trailer stable for years on is about 10 minutes, most commodities and it provides 24 SAY MEAT AND (e.g. grains, seeds, hours of residual POULTRY ARE THE oils and fertilizer). protection. RISKIEST TO EAT Recently, During the SafeTraces company’s earnings launched SaniTracers, food-grade conference call in October, CEO pathogen surrogates that are Hank R. Lambert said, “We are seeused in food processing and plant ing expanding use by Taylor Farms and equipment sanitation to verof PURE Control [the company’s ify that sanitation was performed direct food contact antimicrobial as planned. solution], accelerating progress Hodges says SafeTraces’ technolin gaining adoption of our truck ogy has significant potential beyond sanitizing solution among food the food industry, especially in the transport companies, and accelpharmaceutical and healthcare erating expansion of PURE Hard industries. Surface use in processing plants and PURE Bioscience is another comrestaurant chains.”

49%

55%

www.foodlogistics.com

FLOG1118_14-21_CoverStory.indd 15

THE CDC ESTIMATES

IN THE UNITED STATES

48 MILLION

PEOPLE GET SICK

12,800

PEOPLE ARE HOSPITALIZED

3,000

PEOPLE DIE

FROM FOODBORNE DISEASES EACH YEAR

IN A SURVEY OF

500 CONSUMERS

BY FOOD AND MARKETING AGENCY CHARLESTON ORWIG

TRUST 27%

46%

THE FOOD INDUSTRY FOR SAFE FOOD

NOVEMBER/DECEMBER 2018 | FOOD LOGISTICS

12/4/18 1:19 PM

COVER STORY

continued

WHILE CONSUMER DEMAND FOR FAST DELIVERY IS GROWING, SO TOO ARE THEIR EXPECTATIONS. DROPOFF’S ANNUAL CONSUMER SURVEY FOUND THAT

43%

OF U.S. CONSUMERS EXPECT COMPANIES TO HAVE MUCH FASTER DELIVERY TIMES THAN THE PREVIOUS YEAR—AND THEIR PURCHASING DECISIONS IN 2018 SHOW THEY ARE ACTING ON IT. WHEN SAME-DAY DELIVERY WAS OFFERED,

31%

OF CONSUMERS SAY THEY OPTED FOR IT IN 2018, AND

74%

OF CONSUMERS SAY THEY ARE MORE LIKELY TO PURCHASE FROM A COMPANY AGAIN AFTER RECEIVING SAME-DAY DELIVERY.

Same-Day Delivery: Do or Die Online orders may only make up a small percentage of food retail sales, but it is a growing sector that can’t be ignored. In fact, in its third annual consumer survey, delivery service provider Dropoff found that 64 percent of those surveyed want sameday grocery delivery service, but only 19 percent currently receive it. Many experts predict, especially following Amazon’s acquisition of Whole Foods Market in 2017, that grocery will be the next market sector disrupted by e-commerce. A study by the Food Marketing Insti-

FOOD LOGISTICS | NOVEMBER/DECEMBER 2018

FLOG1118_14-21_CoverStory.indd 16

tute conducted by Nielsen Online, supports those predictions, estimating grocery sales will capture 20 percent of total grocery retail by 2025 and reach $100 billion in consumer sales. “I anticipate every company will eventually offer same-day delivery,” says Vijaya Rao, CEO of Delivery Circle, a same-day delivery solution that operates much like Uber for shippers by matching merchants’ local delivery needs with drivers. “There is a push in the marketplace for companies to offer this service. Most restaurants and grocery stores will see themselves left behind if they don’t figure out delivery.” Unfortunately, what consumers often fail to understand is the process that ensures orders arrive safely at their door. For major retailers and grocers, the investment in delivery services has become top priority. In December 2017, Target acquired delivery service Shipt to handle its same-day delivery logistics and, in October, the retailer announced a significant expansion into eight cities in Southern California. Walmart’s last-mile logistics are handled by several third-party delivery service providers. The retailer is also experimenting with crowdsourced methods through its new Spark Delivery pilot that uses an in-house platform where drivers sign up for windows of time that work best for their schedule. Kroger also outsources its grocery

delivery, announcing a partnership with Instacart in September, expanding its reach to 50 percent of U.S. households. While these retail powerhouses have the time and money to invest in last-mile delivery, many small grocers, restaurants and foodservice companies lack the resources to stay competitive. Launched in 2014, DeliveryCircle was born to fill that need. “We realized a lot of small businesses were struggling to predict the day-to-day demand for deliveries. They couldn’t match up the demand and the supply at all times,” explains Rao. “They also did not want to put people on payroll and absorb all of the fixed costs. Most of these small companies lack the mechanisms to devote people solely for delivery. They end up sending their own staff members to deliver orders, and as a result, are losing the capacity to grow their business.” DeliveryCircle solves the sameday delivery puzzle for these food and beverage companies by using a pay-as-you-go dedicated driver model, offering a pool of drivers that are assigned to companies based on their specific demands and needs. They can also provide white glove services as an extension of the customer’s brand. “We’ve carved out a niche in a few different foodservice areas that separate us from the typical food delivery companies—product that needs to be delivered quickly, but www.foodlogistics.com

12/4/18 1:19 PM

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12/4/18 1:19 PM

COVER STORY

continued

does not necessarily need refrigeration if delivered in a set amount of time,” says Christopher George, chief marketing officer for DeliveryCircle. “We’ve also carved out a niche for food delivery to corporate locations through large catering operations. The common denominator is that the food has to be delivered within a certain time frame.” DeliveryCircle’s food and beverage customers range from large grocery chains to different specialty foods and niche bakeries to a client that offers a cold press juice delivery subscription. The juicing company previously handled its own deliveries using a refrigerated truck and only one driver. With the DeliveryCircle model, the platform deploys three or four drivers to complete those deliveries, all by 6 a.m., cutting the juicing company’s driver, maintenance and fuel costs. “With us, they don’t have to think about the logistics after scheduling a delivery, which allows them to focus on their business,” adds Rao.

Third-party Logistics Providers Adapt

Photo Credit: Weber Logistics

Designed for high-velocity products like candies, chips and drinks, displays are easily emptied within one day.

Third-party logistics providers (3PLs) are relied upon for more than logistics. Increasingly, they serve as a strategic supply chain partner to minimize costs in transportation, inventory, fulfillment and more. At the same time, 3PLs are adjusting their business models as retail evolves and last-mile delivery becomes the differentiator in customer fulfillment. While many of the challenges 3PLs face remain the same, there are still challenges that need solving—if not for today’s

FOOD LOGISTICS | NOVEMBER/DECEMBER 2018

FLOG1118_14-21_CoverStory.indd 18

customer then likely tomorrow’s. There are several areas where 3PLs are adopting new strategies to operate more efficiently and cost effectively for customers. • Transportation—the use of regional 3PLs to reduce costs of moving goods coast to coast and service the last mile. • Fulfillment—introduction of more SKUs and product choices equates to a more flexible and adaptive warehouse to ensure quality, transparency and regulatory compliance. • Service offerings—whether it’s repackaging larger cartons into smaller packages, offering promotional labeling or building displays, 3PLs are providing value-added services to differentiate themselves from the competition and meet customer demand. Final mile rules. As consumer preferences change, it creates a ripple effect in the retail supply chain. For 3PLs, many are experiencing delivery requirements within hours instead of days or weeks. This has led to a rise in retail standards around velocity and on-time movement of goods— particularly in perishables where time is of the essence. Bob Lilja, chief operating officer for Weber Logistics, says with changes to hours of service for over-theroad drivers, there’s more focus on inventory warehouse management for 3PLs delivering the last mile. Supporting service levels is difficult for a multi-stop delivery model. Thus, to achieve greater velocity 3PLs are using full truckload delivery and pool distribution for the final mile. “With the retail supply chain, it’s critical to minimize the cost of transportation—and that means shipping long haul as densely as possible,” says Lilja. “To execute that strategy, it helps to have a 3PL in the destination market that can perform value-added services like repacking, postponement and display building. By finalizing the product and packaging at the very end of the supply chain, retail suppliers

2019 THIRD-PARTY LOGISTICS STUDY: THE STATE OF LOGISTICS OUTSOURCING

89% SHIPPERS AND

98%

3PL PROVIDERS AGREE THAT THE USE OF 3PLS HAS CONTRIBUTED TO IMPROVING SERVICES TO THE ULTIMATE CUSTOMERS.

73%

3PL USERS AND

91%

3PL PROVIDERS AGREE THAT 3PLS PROVIDE NEW AND INNOVATIVE WAYS TO IMPROVE LOGISTICS EFFECTIVENESS. minimize inventory and create very efficient long haul runs.” Fulfillment solutions. As more consumers migrate toward e-commerce, fulfillment solutions require unique capabilities. Paul Lomas, group director of sales and www.foodlogistics.com

12/4/18 1:19 PM

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12/4/18 1:19 PM

COVER STORY

continued

FOOD LOGISTICS | NOVEMBER/DECEMBER 2018

FLOG1118_14-21_CoverStory.indd 20

customer service

lead logistics provider/4PL services

service parts logistics

fleet management

IT service

supply chain consulting services

order management and fulfillment

inventory management

reverse logistics

product labeling, packaging, assembly, kitting

transportation planning and management

cross-docking

customs brokerage

freight forwarding

warehousing

international transportation

domestic transportation

PERCENT

freight bill auditing and payment

nomically through traditional parcel. greatly depend on impulse buys “Even more traditional food and as a large portion of their revenue marketing for Ryder System, Inc., beverages have an e-commerce stream. With a wide assortment of says the proliferation in food and component,” adds Lilja. “We build food products on store shelves, disbeverage for fresh food, gluten-free solutions that require temperature plays provide a level of visibility that and farm-to-table preferences control, such as adding cold packs attracts rather than disorients. Decascade into warehouse operations. in shipping cartons, or even dry ice. signed for high-velocity products like As the number of SKUs increases, it Some of this is done only seasonally, candies, chips and drinks, displays affects the profile of orders and induring the summer months. It’s are easily emptied within one day. creases the number of lines/orders. about creating solutions that proLilja says Weber Logistics builds Greater precision is required in how vide the most economical, high-vetens of thousands of displays per the capacity inside the warehouse locity fulfillment for online orders.” month for food customers. Those is used to manage an expanding Value-added services. What displays are then shipped into product line. many 3PL customers fail to utilize grocery chains, Walmart and Target. “Those fulfillment needs translate is the knowledge and expertise Because confectionery represents into new requirements for technolof their provider. As a strategic a large portion of Weber’s business, ogy in terms of visibility and tracepartner in their supply there needs to be an Part of ability—to ensure the warehouse chain, 3PLs can offer element of elegance and fulfillment also is compliant with the Food Safety solutions that lead to quality to the displays. means meeting Modernization Act and that product cost efficiencies, such “There is a client demand ingredients are traced from raw as cartonization analthat relies heavily on for more material to point of consumption,” ysis to lower transpordisplay building, so complete explains Lomas. “Part of fulfillment tation spend. Another our warehouse has a also means meeting demand for area is display building information, 15,000-square-foot space requiring more more complete information, requirand product stocking. dedicated to that need,” robust technology he says. “We build dising more robust technology and Strategically placed and information information than in the past.” throughout retail plays every day, shipping than in the past.” them separate from fullLilja agrees, and says, because stores, food product Paul Lomas, of e-commerce, there’s a desire to displays are fixtures case shipments.” Ryder System, Inc. build fulfillment solutions around in checkout lanes and Displays, just as any many types of food. “Our company end caps. Customers product that’s shipped, services an account that ships priare accustomed to scanning the require strategic decision-making vate-label groceries to customers,” wares on standup displays as they to contain costs. Manufacturers he says. “I never expected to see round each aisle or slowly inch rarely construct and ship fully built the supply chain support the cost of toward the cashier. displays coast to coast. There are delivering everyday grocery goods What few realize is that food considerable cost savings from havdirect to consumers, and do it ecodistributors and manufacturers ing 3PLs receive displays as knockdown corrugates to assemble and SHIPPERS CONTINUE TO OUTSOURCE A WIDE VARIETY OF LOGISTICS SERVICES fill with multiple products, says Lilja. 80 “Once fully assembled and 81 stocked, the displays are wrapped for protection during shipment to 71 69 the distribution center prior to final store delivery. For some clients, we 60 maintain several sizes of cartons and displays in inventory and then build kits to order based on POs issued 50 long after the manufacture date.” “The complexity increases 40 when display products require a 40 multi-temperature-controlled envi35 ronment during last-mile delivery. 28 28 26 Suddenly, a 3PL that provides a 20 26 multi-temperature storage facility 22 19 ranging from freezing to refrigerat19 ed to confectionery temperatures 11 11 9 9 increases value.”

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THIRD-PARTY & REFRIGERATED LOGISTICS

BY LARA L. SOWINSKI

WINE SUPPLY CHAINS BENEFIT FROM IMPROVED HANDLING AND MONITORING An integrated cold chain combined with advanced software solutions is resulting in less damage to product, along with enhanced customer experience and brand reputation.

ine shipments to the United States from all production sources, including foreign producers, California and other states, grew to 403 million cases in 2017, according to San Francisco-based The Wine Institute. Furthermore, since 2010, the United States has remained the world’s largest wine market by volume. Not only are U.S. consumers drinking more wine, they’re drinking higher quality wine. “Consumers in the U.S. and worldwide continue to trade up to higher-priced premium wines,” notes Robert P. (Bobby) Koch, The

patented technology to monitor and analyze shipment conditions during the transportation of wine and other commodities (such as fine art) that are sensitive to temperature, humidity and other environWine Institute’s president and CEO. mental conditions, says that while Yet, there remains room for ocean voyages are fairly stable improvement when it comes to the when reefer containers are used, handling, transportation and care of the “legs” of the journey—or what wine throughout the supply chain. happens from the winery to the It’s estimated that vessel, and once the wine is It’s more than one in three off-loaded from the vessel estimated to the importer’s warehouse wines are subjected to that more or even the distributor—are poor transport conditions. And, it doesn’t than one the most vulnerable. take radical temperature The company’s eProvin three extremes to entirely enance Score uses a wines are diminish or damage proprietary algorithm subjected to the quality of wine. For to determine if wine has poor transport example, wine exposed been compromised during conditions.” to temperatures above transportation and storage. According to wine 77 degrees Fahrenheit It calculates if the wine is industry statistics can develop prematurely still fresh or if the quality has and lose their ability to been compromised. Furtherage properly, lose freshness, and more, the eProvenance Score not experience degradation in color only indicates if an inappropriate and taste. temperature has been encountered, Robin Grumman-Vogt, CEO of but if the wine has been damaged. eProvenance, which developed a The eProvenance Score is based on

THE ePROVENANCE SCORE IMPLICATIONS OF QUALITY DURING TRANSPORT & STORAGE

The proprietary algorithm delivers an eProvenance Score and reveals the effect of shipment conditions on wine quality. The eProvenance Score is analyzed and displayed in the eProvenance Online Monitoring System (OMS) on each customer’s individual dashboard.

FOOD LOGISTICS | NOVEMBER/DECEMBER 2018

FLOG1118_22-27_3PL.indd 22

www.foodlogistics.com

12/4/18 1:22 PM

PROTECTING FOOD QUALITY. Minimize large crystal structures & food degradation.

ALL FROZEN FOOD HAS SOME UNFROZEN WATER EVEN AT -40° C. EVERY TEMPERATURE CHANGE CAUSES WATER TO THAW OR FREEZE CREATING LARGER CRYSTAL STRUCTURES THAT REDUCE FOOD QUALITY.

Thermal Energy Storage absorbs up to 85% of heat infiltration, slows temperature increases, improves temperature stability, and saves up to 35% or more on energy costs.

• PROTECT FOOD QUALITY • INCREASE TEMPERATURE STABILITY • EXTEND THERMAL BACKUP: 3X • REDUCE ENERGY COSTS UP TO 35%

vikingcold.com/fl

FLOG1118_22-27_3PL.indd 23

12/4/18 1:22 PM

3PL

WINE BY THE NUMBERS

continued

In addition to strong U.S. wine imports, exports of wine are also rising. Since 1990, U.S. wine exports have almost quadrupled. Last year, The Wine Institute reports that U.S. wine exports reached $1.53 billion in winery revenues and

U.S. WINE EXPORTS 2017

97%

FROM CALIFORNIA (QUADRUPLED SINCE 1990)

$1.53 billion

IN WINERY REVENUES

42.2 million cases The Wine Institute: 2017

a 1-100 point scale. Through its Online Monitoring System, eProvenance also offers clients a secure, private dashboard where they can view reports, graphs and statistical analysis of their shipments, which can be used to reinforce what is working well or provide feedback to others in the supply chain if improvements are needed. A key feature of the eProvenance solution is that it provides benchmark data that clients can use to see how their supply chain is performing relative to their peers. “Working with eProvenance allows them to not only understand how they are doing, but to also understand how good they could be doing,” explains Grumman-Vogt. “In other words, they get anonymous comparative data for others in the same channel.” Therefore, a shipper whose product moves from France to New York, for instance, can benchmark against others in that same trade lane to learn where they can potentially make enhancements.

42.2 million cases in 2017, with California contributing 97 percent of the wine exports. Leading markets for California wine include the European Union ($553 million), Canada ($444 million), Hong Kong ($119 million), Japan ($94 million), China ($79 million), South Korea ($25 million), Mexico ($23 million), Singapore ($17 million), Philippines ($14 million) and the Dominican Republic ($13 million). According to Research and Markets’ Global Wine Logistics Market 2018-2022 report, China is emerging as a strong growth market for wine, with demand increasing significantly since 2011. Specifically, wine consumption in China grew by more than 45 percent between 2011 and 2017, and is expected to increase further during the forecast period. Increased wine consumption is also expected to drive demand for wine logistics in China. Hellmann Worldwide Logistics, JF Hillebrand Group, Kerry Logistics, Wine Logistics International, DB Schenker and Mainfreight are among the leading logistics providers in the wine supply chain, says Research and Markets. In the United States, e-commerce and online grocery are helping support wine consumption. Total Wine & More, the largest independent retailer of fine wine, beer and spirits, recently announced it would implement a SaaS solution from final-mile delivery provider Delivery Solutions to bring same-day delivery to its customers within a delivery radius of all U.S. locations. Additionally, Kroger in October announced the addition of wine delivery to its services. The grocery retailer is initially offering wine delivery to customers in 14 states, with more locations expected in the future. And over the summer, supermarket chain H-E-B introduced alcohol delivery to customers in Texas, while Publix started testing an alcohol delivery service from some of its Florida stores last year.

SINGAPORE $17 MILLION

PHILIPPINES $14 MILLION DOMINICAN REPUBLIC

MEXICO 23 MILLION $

13 MILLION

SOUTH KOREA 25 MILLION $

CHINA

JAPAN

$ MILLION

EUROPEAN UNION

553

$ MILLION

HONG KONG

119

$ MILLION

LEADING MARKETS

CANADA

444

$ MILLION

FOR CALIFORNIA WINES 24

FOOD LOGISTICS | NOVEMBER/DECEMBER 2018

FLOG1118_22-27_3PL.indd 24

www.foodlogistics.com

12/4/18 1:22 PM

TELL US WHEN IT NEEDS TO BE THERE.

OD EXPEDITED DOES THE REST Old Dominion offers a full range of expedited services to meet your growing delivery challenges. With a 99+% on-time rate and #1 ranking for damage-free deliveries,* OD helps you ship with confidenceâ&#x20AC;&#x201D;even when faced with rush shipments, tightening delivery windows or day and timespecific requests. Plus, our seasoned, proactive team provides 24/7 monitoring of your shipment.

Old Dominion Freight Line, the Old Dominion logo 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 identified herein are the intellectual property of their respective owners. ÂŠ2018 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.

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12/4/18 1:22 PM

3PL

continued

The eProvenance solution has helped clients improve their

shipment quality by about 30 percent.” Robin Grumman-Vogt, CEO, eProvenance

Over a three-year period, the eProvenance solution has helped clients improve their shipment quality by about 30 percent. Specifically, the percent of shipments that remained within an acceptable temperature envelope improved from 58 percent to 87 percent, reports Grumman-Vogt. She emphasizes that while sensors and temperature-monitoring devices are beneficial, the combination of extensive research together with the analytics provided by the eProvenance Score creates a powerful tool that is unrivaled in the marketplace.

Adding Insurance to the Blend Following a partnership with Munich Re/Roanoke Trade, the benefits of the eProvenance system have now expanded into the insurance realm with a cargo insurance offering called Full Protection. This coverage is for shipments that use an agreed-upon standard of care—which typically means reefer containers—in conjunction with the eProvenance system.

FOOD LOGISTICS | NOVEMBER/DECEMBER 2018

FLOG1118_22-27_3PL.indd 26

RAIL PLAYS A KEY ROLE IN THE BEER AND WINE SUPPLY CHAIN

Temperature-control intermodal carrier Tiger Cool Express is seeing an increase in beer and wine shipments, according to CEO Steve Van Kirk. “This commodity segment is a rapidly growing portion of Tiger Cool’s business,” he confirms. “We have typically supported beer and wine shippers by providing freeze protection in winter and temperature-control services yearround.” At the same time, “We believe there is a real opportunity to help more wine shippers on a year-round basis by protecting their products from overheating in summer, in addition to providing freeze protection.” Van Kirk says the company’s focus in regard to this commodity segment “is to create value for our customers by converting temperature-controlled truck freight to our temperature-controlled intermodal container fleet.” He says that converting truck freight to intermodal can produce “truck-like service, reliable capacity and cost savings in the current period of truck rates and tight capacity.” Tiger Cool’s containers are also equipped with telematics. “This allows us to both monitor temperatures in our containers and control the refrigeration unit during both rail and dray transit,” says Van Kirk.

The shipper specifies the eProvenance Score range they want to maintain for the shipment. If the eProvenance Score falls below a certain score, say 85 points, then the shipper can file an insurance claim. It’s that simple, explains Grumman-Vogt. There is no need for corks to protrude or bottles to leak in order to have a claim. “It’s a very streamlined process,” she remarks. Full Protection has been available for about a year, and so far clients are “absolutely thrilled with it,” she adds. Both importers and wineries have used the Full Protection insurance product. When a customer is unable to follow their standard of care, but still take appropriate measures to protect their shipment, a feature of the

insurance called Quality Shortfall can apply. This enables customers to have a claim paid when there’s a loss of value incurred due to temperature damage. The insurance enables brand protection, [With Full Grumman-Vogt Protection cargo notes. Clients insurance] there is can control what no need for corks happens to the to portrude or wine, so if there bottles to leak is a low eProvein order nance Score the wine can be deto have a stroyed before claim.” it reaches the Robin Grumman-Vogt, CEO, eProvenance end consumer in less than optimal condition. There is also optional coverage as wines move between players and various stakeholders in the supply chain. This component of the Full Protection offering is a form of insurance known as contingent insurance. If temperature damage occurs and the shipper’s insurance doesn’t offer coverage for temperature, then contingent insurance can step in to enable brand protection for the winery or importer. www.foodlogistics.com

12/4/18 1:22 PM

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FL100+ AWARDS

BY EDITORIAL STAFF

2018

FOOD LOGISTICS HONORS TOP SOFTWARE & TECH PROVIDERS OF 2018 Food Logisticsâ&#x20AC;&#x2122; annual list honors the software and technology providers that ensure a safe, efficient and reliable global food and beverage supply chain.

FOOD LOGISTICS | NOVEMBER/DECEMBER 2018

FLOG1118_28-41_FL100.indd 28

www.foodlogistics.com

12/4/18 9:48 AM

ach year Food Logistics showcases software and technology companies that are leaders within the food and beverage industry. Their solutions and services provide companies the opportunity to improve productivity and gain efficiencies within their enterprise. Now in its 15th year, the FL100+ features software and technology companies that specialize in products designed to address the unique challenges of the food and beverage supply chain. This list offers an inside look at companies whose products and services ensure efficient transportation and warehousing, minimize operational waste, facilitate safe operations and assure regulatory compliance.

360data

Appian FinalMile

Website: www.360data.com

Website: www.appianplatform.com

Year Founded: 1995

Year Founded: 1987

Number of Employees: 25 Number of Food/Bev Customers: 10

Number of Employees: 700 Number of Food/Bev Customers: 118

Solution Brand Name(s): 360data

Solution Brand Name(s): DRTrack

Worth Noting: 360data manages transportation spend more effectively while optimizing speed and reliability. The company’s TMS delivers cloud-based, centralized route planning software with complete supply chain visibility to all inbound and outbound shipments in real time. Users are able to streamline communication and collaboration across platforms and throughout trading communities. Additionally, its cloud-based collaborative solution effortlessly meets customers’ needs for a complete EDI platform for 3PLs.

Worth Noting: Appian FinalMile provides end-to-end software solutions for the transportation and logistics industry that help its customers improve their business efficiencies. The company is transforming the way the world moves freight by enabling, empowering and optimizing transportation companies with a full range of transactional, transparent, decision support and optimization solutions. Its solutions give unparalleled insight into cost control and productivity.

3Gtms

Website: www.armada.net Year Founded: 1890

Website: www.3gtms.com

Number of Employees: 32

Year Founded: 2013

Number of Food/Bev Customers: 468

Number of Employees: 100 Number of Food/Bev Customers: 9 Solution Brand Name(s): 3G-TM Worth Noting: 3Gtms understands the complicated dynamics of order visibility in the food and beverage industry. The company can track an order throughout the entire supply chain with its TMS, providing full visibility into the flow of data and the tools to act quickly. Additionally, 3Gtms offers continuous visibility and pool optimization, allowing users to plan shipments based on a consolidation point. Users can pre-determine a location or allow an algorithm to locate the optimal consolidation facility.

www.foodlogistics.com

FLOG1118_28-41_FL100.indd 29

Armada

Solution Brand Name(s): Armada Supply Chain Planning, Armada Supply Chain Technology, Armada Transportation Solutions, Armada Warehouse Solutions, Armada Global Logistics Worth Noting: Armada has instituted a new innovation process that employs a collaborative platform to solicit suggestions. The suggestions are reviewed until they reach the necessary approval rating. They are then submitted to the innovation steering committee to determine whether the idea requires further refinement or is worth piloting. The company’s approach provides a fully transparent way of submitting innovative ideas and determining their progress.

NOVEMBER/DECEMBER 2018 | FOOD LOGISTICS

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Other

Yard Management

Wireless Technology

Warehouse Management System

Transportation Management System

Systems Integration

Supply Chain Management

Routing and Scheduling

Radio Frequency Identification

Predictive Analysis

Mobile Technology

Load Planning

IoT

Inventory Control

Global Trade Management

Freight Payment

Financial Technology

Enterprise Resource Planning

Demand Management

Data Synchronization

Customer Relationship Management

Barcode Systems

2018

Automated Material Handling Solutions

THE 2018 FL100+ 1 360data

www.360data.com • • •

2 3Gtms

www.3gtms.com • • • • • •

3 4flow

www.4flow.com • • • • • • • • • •

4 Access Control Group

www.theaccessway.com •

5 Acsis Inc.

www.acsisinc.com

• • • • • • • • • • • • •

6 AFS Technologies

www.dms.afsi.com

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

7 Allen Lund Company LLC/ALC Logistics

www.alclogistics.com • • • • • • • • • • •

8 Anytrek Corp.

www.anytrek.com •

9 Appian FinalMile

www.appianplatform.com • • • • • •

10 Aptean

www.aptean.com

11 Armada

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

12 Arviem AG

www.arviem.com • • • • • • •

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

13 BarTender by Seagull Scientific www.seagullscientific.com • 14 Becker Logistics

www.beckerlogistics.com • • • •

15 Blue Link Associates Ltd. www.BlueLinkERP.com • • • • • • 16 Blue Ridge

www.blueridgeglobal.com • • • • • •

17 Blinco Systems Inc.

www.3rdwave.com • • • • • • •

18 BlueGrace Logistics

www.mybluegrace.com • • • • • • • • • • •

19 BluJay Solutions

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

20 C3 Solutions

www.c3solutions.com • • • • • • •

21 CAMS Software

www.prospero.com • • • • • • •

22 CaseStack

www.casestackconsolidation.com • • • • • • •

23 Cass Information Systems Inc. www.cassinfo.com • • 24 Cimcorp Automation Ltd. www.cimcorp.com

• • • • •

25 CIMTechniques Inc.

www.cimtechniques.com • • • •

26 Cleo

www.cleo.com • • •

27 Cloud Logistics

www.gocloudlogistics.com • • • • • •

28 CM Systems LLC

www.compliancemate.com • • •

29 ComplianceMetrix

www.compliancemetrix.com • • • • • • • • • • •

30 Controlant

www.controlant.com • • • • • •

31 Cooltrax

www.cooltrax.com • • • • • • • • •

32 Corcentric

www.corcentric.com

33 Crown Equipment Corp. www.crown.com

• • • • • • • •

34 CT Logistics

www.ctlogistics.com • • • • • • • • • •

35 Datex

www.datexcorp.com • • •

36 Deacom Inc.

www.deacom.com • • • • • • • • •

37 DeliveryCircle

www.deliverycircle.com • • • • • • • • • • •

38 DeltaTrak Inc.

www.deltatrak.com • • • • • • • • • •

39 Demand Management Inc. www.demandsolutions.com • • • • • 40 Descartes Systems Group www.descartes.com • • • • • • • • • • • • • • • 41 Echo Global Logistics

www.Echo.com • • • • • • • • • • •

42 Elemica

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

43 Emerson

www.emerson.com • • • • •

44 enVista

www.envistacorp.com

45 Esker Inc.

www.esker.com • •

46 ExtenData

www.extendata.com • • • • • • • •

47 Financial Transmission Network Inc.

www.ftni.com • • • • • •

48 Fleet Advantage

www.fleetadvantage.com • • •

• • • • • • • • • • • • • • • • • •

FOOD LOGISTICS | NOVEMBER/DECEMBER 2018

FLOG1118_28-41_FL100.indd 30

www.foodlogistics.com

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Other

FLOG1118_28-41_FL100.indd 31

12/4/18 9:48 AM

49 Flux Power

Other

Yard Management

Wireless Technology

Warehouse Management System

Transportation Management System

Systems Integration

Supply Chain Management

Routing and Scheduling

Radio Frequency Identification

Predictive Analysis

Mobile Technology

Load Planning

IoT

Inventory Control

Global Trade Management

Freight Payment

Financial Technology

Enterprise Resource Planning

Demand Management

Data Synchronization

Customer Relationship Management

Barcode Systems

2018

Automated Material Handling Solutions

THE 2018 FL100+

www.fluxpwr.com • •

50 Food Decision Software Inc.

www.fooddecisionsoftware.com

51 FoodLogiQ

www.foodlogiq.com •

• • • • • • • • •

52 Foxtrot Systems

www.foxtrotsystems.com •

53 FreightCenter

www.freightcenter.com • • •

54 Generix Group

www.generix • • • • • • group-northamerica.com

55 Globe Tracker

www.globetracker.com • • •

56 GPS Insight

www.gpsinsight.com • • • • •

57 HighJump

www.highjump.com • • • • • • • • • •

58 Highway 905

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

59 Honeywell Intelligrated

www.intelligrated.com

• • • • • • •

60 iFoodDecisionSciences Inc. www.idsfoodsafety.com • • • • 61 InfinityQS International Inc. www.infinityqs.com • • 62 Infratab

www.infratab.com • • • • • •

63 Interlink Technologies

www.thinkinterlink.com • • • • • • •

64 Intrigo Systems

www.intrigosys.com • • • • • •

65 Iron Apple International www.ironapple.net • • • • 66 iTradeNetwork

www.itradenetwork.com • • • • • • • • • • • • • • • • • •

67 Jarrett Logistics Systems www.jarrettlogistics.com • • • • • • • • • • • • • 68 JDA Software

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

69 Johanson Transportation Service www.johansontrans.com • • • • • • • • • • 70 Kuebix

www.kuebix.com • • • • • •

71 Lanehub Inc.

www.lanehub.com •

72 LANSA

www.LANSA.com • • •

73 Lettuce Box Inc.

www.verofresh.com • • • • • •

74 LLamasoft

www.llamasoft.com • • • • • •

75 LoadDelivered

www.loaddelivered.com • • • • • • •

76 Logility

www.logility.com • • • • • • • • •

77 Logistix Solutions

www.logistixsolutions.com • • • •

78 Lucas Systems Inc.

www.lucasware.com • • • •

79 Lytx

www.lytx.com • • • •

80 made4net

www.made4net.us • • • • • •

81 Manhattan Associates

www.manh.com • • • • • • • • • • • • • •

82 MercuryGate

www.mercurygate.com • • • • • • • • • • • • •

83 METTLER TOLEDO

www.mt.com

84 Minotaur Software

www.minotaursoftware.com • • • • • • • • • • • • • • •

85 Nature’s Frequencies

www.foodfreshnesscard.com •

86 NECS Inc.

www.necs.com • • • • • • •

87 Neogrid

www.neogrid.com • • • • • • •

• • • • • • • • • • • •

88 Next Generation Logistics Inc. www.NextGeneration.com • • • • • • • • 89 NiceLabel

www.nicelabel.com • •

90 Nulogy

www.nulogy.com • • • • • • • • •

91 Omnichain Solutions

www.omnichains.com

92 Omnitracs

www.omnitracs.com • • • • • • • • • •

93 Open Sky Group

www.openskygroup.com • • • • • •

94 Optricity

www.optricity.com • •

95 ORBCOMM Inc.

www.orbcomm.com • • • • • • • • •

• • • • • • • • • • •

96 Outperform Solutions B.V.

www.outperformplanning.com

97 PAR Technology

www.partech.com • • •

• • • • • •

FOOD LOGISTICS | NOVEMBER/DECEMBER 2018

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www.foodlogistics.com

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Other

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12/4/18 9:48 AM

Other

Yard Management

Wireless Technology

Warehouse Management System

Transportation Management System

Systems Integration

Supply Chain Management

Routing and Scheduling

Radio Frequency Identification

Predictive Analysis

Mobile Technology

Load Planning

IoT

Inventory Control

Global Trade Management

Freight Payment

Financial Technology

Enterprise Resource Planning

Demand Management

Data Synchronization

Customer Relationship Management

Barcode Systems

2018

Automated Material Handling Solutions

THE 2018 FL100+ 98 Paragon Software Systems

www.paragontruckrouting.com

99 PINC

www.pinc.com • • •

• •

100 Plug Power

www.plugpower.com •

101 Proactis

www.proactis.com •

102 ProCat Distribution Technologies www.procatdt.com • • • • • • 103 project44

www.project44.com • • • • • • • • • • • •

104 QAD

www.qad.com

105 Quintiq

www.quintiq.com • • • • • • • •

106 Railinc Corp.

www.railinc.com • • •

107 RoadSync

www.roadsync.com • • • •

108 Ryder System Inc.

www.ryder.com

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

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

109 Safeway Management Group Inc. www.smgsafety.com • • • • 110 SCA Technologies

www.scatech.com • • • • • • • • • •

111 Schaefer Systems International Inc.

www.ssi-schaefer.com

112 Sensitech Inc.

www.sensitech.com • • • • • • • •

113 SFL Companies

www.sflcompanies.com • • • • • • • • • • • • •

• •

114 SmartDrive Systems Inc. www.smartdrive.net • • • • • 115 SmartTrace Pty Ltd.

www.smarttrace.com.au • • • • • •

116 Spireon Inc.

www.spireon.com • • • • • • •

117 Symphony RetailAI

www.symphonyretailai.com • • • • • • • • • • • • • •

Becker Logistics LLC Website: www.beckerlogistics.com Year Founded: 1997 Number of Employees: 120 Number of Food/Bev Customers: 210 Solution Name(s): 3PL 360, 3PL AIT Worth Noting: Through their TMS, 3PL 360, Becker Logistics believes in the utilization of tracking technology on the carrier side of the business, while making the customers experience efficient on the load side. Becker Logistics works to improve its technology and software as its business continues to expand, with three office locations in Illinois, one in Ohio, one in Georgia and four new offices opening in 2019.

BluJay Solutions Website: www.blujaysolutions.com Year Founded: 1972 Number of Employees: 1,100 Number of Food/Bev Customers: 1,000 Solution Brand Name(s): BluJay Transportation Management, BluJay Global Trade Network Worth Noting: As BluJay Solutions

continues to invest in its Global Trade Network platform, it continues to see more customers and prospects take advantage of integrated parcel, mobility, control tower and compliance solutions. The company has standardized and focused workflows to support CPG, food and beverage, as well as a strong network of shippers, carriers and suppliers. Additionally, BluJay’s latest platform update delivers full multimodal transportation support, extending customs management and mobile capabilities designed to help companies streamline their global supply chain management.

CaseStack Website: www.casestackconsolidation.com Year Founded: 1999 Number of Employees: 400 Number of Food/Bev Customers: 500

CAMS Software Website: www.prospero.com Year Founded: 1997 Number of Employees: 30 Number of Food/Bev Customers: 20 Solution Name(s): Prospero Outbound, Prospero Inbound, Prospero Mobi Worth Noting: CAMS Software developed the Prospero suite of grocery transportation solutions to accommodate the terminology and best business practices of the industry. Prospero Outbound handles the needs of private

FOOD LOGISTICS | NOVEMBER/DECEMBER 2018

FLOG1118_28-41_FL100.indd 34

fleet grocery transportation, routing, dispatch, backhaul, payroll, salvage and more. Prospero Mobi is a certified ELD that integrates with Prospero Outbound for seamless two-way communications, while Prospero Inbound is the company’s grocery-specific inbound TMS for managed freight.

Solution Brand Name(s): CaseStack Retail Freight Consolidation, Hyperfill Worth Noting: CaseStack is a force multiplier for CPG companies selling shelf-stable products to national retailers and e-commerce platforms. The company uses a combination of industry leading technology and processes to help clients adapt and overcome the challenges in the rapidly changing retail landscape while maximizing their profitability.

www.foodlogistics.com

12/4/18 9:48 AM

Other

Cass Information Systems Inc.

Number of Food/Bev Customers: 10 Solution Brand Name(s): Cloud Logistics TMS

Website: www.cassinfo.com Year Founded: 1906 Number of Employees: 1,035 Number of Food/Bev Customers: 25 Solution Brand Name(s): Freight audit, payment and business intelligence services Worth Noting: Cass partners with high-volume shippers that have complex needs to create solutions that solve difficult transportation expense management challenges. The company provides tailored invoice processing, audit and payment solutions for its customers and offers robust business intelligence and reporting around transportation data. Cass understands the challenges that come from operating within the food and beverage industry. Thus, it provides unparalleled expertise through all aspects of the customer onboarding and ongoing services.

Cloud Logistics Website: www.gocloudlogistics.com Year Founded: 2011 Number of Employees: 25

Worth Noting: Cloud Logistics’ customers know they can rely on the company to be fast, able and easy. Complete global TMS capabilities coupled with quick solutions implementation means a fast ROI. Cloud Logistics offers an intuitive interface that combines cloud, mobile and social, along with rapid training and onboarding of both shippers and carriers.

CM Systems LLC Website: www.compliancemate.com Year Founded: 2015 Number of Employees: 32 Number of Food/Bev Customers: N/A Solution Name(s): ComplianceMate Worth Noting: CM Systems provides monitoring systems for food safety compliance and operational effectiveness. Its principal product, ComplianceMate, has streamlined several compliance checklists and cooler monitoring for thousands of restaurants across the globe. The tool uses a combination of wireless temperature sensors, mobile technologies and

easy-to-use tools built for the modern kitchen, allowing users complete control over food safety and compliance at all their stores.

Controlant Website: www.controlant.com Year Founded: 2007 Number of Employees: 50 Number of Food/Bev Customers: 50 Solution Brand Name(s): Controlant Worth Noting: Controlant’s cold chain solution offers fully connected digital capabilities, providing real-time temperature and product movement monitoring while products are in transit and at rest. Knowing crucial information immediately allows teams to identify the weakest parts in the supply chain and take immediate action to correct them. Customers can also leverage the data to build new business opportunities by using Controlant’s services. The company’s solution is subscription-based and does not require any upfront investment in software or hardware. The company prides itself on acting as a partner to a company’s internal food safety and quality and logistics teams.

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NOVEMBER/DECEMBER 2018 | FOOD LOGISTICS

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905 Warehouse Management System, Highway 905 Transportation Management System, Highway 905 Shipment Tracking System Worth Noting: Highway 905 has over 25 years of experience as a trusted logistics technology partner. It provides its customers with the flexibility of options, which include its end-to-end cloudbased logistics suites or a customized product bundle with the option to pick and choose from 20+ solution add-ons and services.

iFoodDecisionSciences Website: www.idsfoodsafety.com Year Founded: 2013

Cooltrax

Foxtrot Systems

Number of Employees: 20

Website: www.cooltrax.com

Website: www.foxtrotsystems.com

Year Founded: 2005

Year Founded: 2015

Number of Employees: 100 Number of Food/Bev Customers: N/A Solution Brand Name(s): Fresh InTransit, Fresh InStore, Fresh InSide

Number of Employees: 30

Number of Food/Bev Customers: 250 Solution Brand Name(s): iFoodDecisionSciences

Worth Noting: Cooltrax’s fresh platform runs on cloud technology and can monitor trailers, assets, retail, distribution centers, safety and compliance. The solution maintains food safety by offering wireless product-level monitoring, and Carrier and Thermo King Refrigeration data, and alarms in real time.

Elemica

Worth Noting: Foxtrot Systems stands out in the industry by focusing on artificial intelligence and machine learning. Automating the decision-making process gives its customers the opportunity for cost savings and revenue generation through more predictable ETAs for all stakeholders in the supply chain.

Worth Noting: iFoodDecisionSciences’ software provides real-time food safety process control management, with alerts for unpredictable situations. The model allows for constant improvements and customer visibility into both the company’s and its supplier’s operations. Real-time alerts enable rapid responses and problem resolutions, allowing management to make better decisions as well as improve visibility throughout the entire operation.

GPS Insight

Interlink Technologies

Number of Food/Bev Customers: 13 Solution Brand Name(s): Foxtrot

Website: www.gpsinsight.com Year Founded: 2005

Website: www.elemica.com

Number of Employees: 268

Year Founded: 2000

Number of Food/Bev Customers: 136

Number of Employees: 200 Number of Food/Bev Customers: 25

Solution Brand Name(s): GPS Insight Fleet Tracking, E-Log Solutions

Solution Brand Name(s): Elemica Digital Supply Network, Elemica SmartLink Applications Worth Noting: With its solutions, Elemica gives food and beverage clients the control they want over their global supply chains. The company automates processes for supplier, customer, sourcing and logistics partners, driving bottom-line results, increased productivity and working capital optimization. The Elemica QuickLink and SmartLink applications leverage the predictive reality check on deliveries between business partners and suppliers by removing transactional barriers for faster process automation and lowering operational costs.

Worth Noting: GPS Insight understands that every fleet faces its own challenges and has unique goals set in place. The company is able to provide tailored telematics solutions and award-winning customer service to ensure challenges are overcome and goals are met. GPS Insight diligently provides flexible options to suit every company’s needs.

Highway 905 Website: www.highway905.com Year Founded: 1993 Number of Employees: 40 Number of Food/Bev Customers: 1 Solution Brand Name(s): Highway

FOOD LOGISTICS | NOVEMBER/DECEMBER 2018

FLOG1118_28-41_FL100.indd 36

Website: www.thinkinterlink.com Year Founded: 1986 Number of Employees: N/A Number of Food/Bev Customers: N/A Solution Brand Name(s): Warehouse-LINK Worth Noting: Interlink Technologies’ customers range in size, but what they all have in common is a need for real-time, web-based warehouse management functionality. Using software for real-time information is still an ongoing challenge in the food and beverage industry, but Interlink’s partnership approach helps employees feel more comfortable with the software by testing it before it goes live.

Intrigo Systems Website: www.intrigosys.com Year Founded: 2009 Number of Employees: 200 Number of Food/Bev Customers: 7 Solution Brand Name(s): SAP Integrat-

www.foodlogistics.com

12/4/18 9:48 AM

ed Business Planning (IBP), SAP Ariba, SAP S/4HANA, SAP Hybris

Johanson Transportation Service

Worth Noting: Intrigo Systems has unparalleled expertise in delivering solutions that span the entire supply chain. The company measures its success by the value delivered to its customers. Intrigo has helped large chemical manufacturers cut more than $100 million in working capital and semiconductor manufacturers reduce their planning cycle time by over 50 percent.

Website: www.johnsontrans.com Year Founded: 1971 Number of Employees: 92 Number of Food/Bev Customers: 225 Solution Brand Name(s): FreightOptixx Worth Noting: Johanson Transportation Services (JTS) has had the same leadership in place for nearly five

decades, and with great leadership comes great success. The company is determined to pursue improvements for greater efficiencies in its business model, making time to collaborate and seek new methods to achieve the next level of excellence in customer service. JTS provides additional value and cutting-edge technology to drive business practices. Additionally, it gives a dynamic TMS solution to its customers for no additional cost.

Jarrett Logistics Systems Website: www.jarrettlogistics.com Year Founded: 1999 Number of Employees: 142 Number of Food/Bev Customers: 5 Solution Brand Name(s): jShip, JLS Advanced Analytics, JLS Routing Center Worth Noting: The JLS Routing Center combines technology and excellent customer service to bring customers up-to-date information that keeps their businesses running without disruption. Jarrett provides next-level visibility to customers on every shipment, keeping them updated through the entire life cycle of the shipment, from pick up to transit and final delivery.

www.foodlogistics.com

FLOG1118_28-41_FL100.indd 37

NOVEMBER/DECEMBER 2018 | FOOD LOGISTICS

12/4/18 9:48 AM

Other

Yard Management

Wireless Technology

Warehouse Management System

Transportation Management System

Systems Integration

Supply Chain Management

Routing and Scheduling

Radio Frequency Identification

Predictive Analysis

Mobile Technology

Load Planning

IoT

Inventory Control

Global Trade Management

Freight Payment

Financial Technology

Enterprise Resource Planning

Demand Management

Data Synchronization

Customer Relationship Management

Barcode Systems

2018

Automated Material Handling Solutions

THE 2018 FL100+ 118 SYSPRO

www.syspro.com

119 Systems Logic

www.warehouseinabox.com • • • • • •

• • • • • • • • • • • • • • • • • •

120 T&D Corp.

www.tandd.com/index.html • • • •

121 Tamlin Software

www.tamlinsoftware.com • • • • • • • • • • • • • •

122 Technology Group International www.tgiltd.com • • • • • • • • • • • • • • • • • • • • 123 TEKLYNX International

www.teklynx.com • • • •

124 Testo Solutions USA Inc. www.testo.com • • • • • • • 125 The Raymond Corp.

www.raymondcorp.com • • • • • • •

126 Tive Inc.

www.tive.com • • • •

127 TranSolutions Inc.

www.transolutionsinc.com •

128 Transplace

www.transplace.com • • • • • • • •

129 Transportation Insight

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

130 TraQtion LLC

www.TraQtion.com • • • • • •

131 Trimble Transportation Mobility www.mobility.trimble.com • • • • • • • • • • 132 UltraShipTMS

www.ultrashiptms.com • • • • • • • •

133 UNEX Manufacturing

www.unex.com

134 VAI

www.vai.net • • • • • • • • • • •

135 Velociti Alliance North America Inc.

www.velocitialliance.com • • • • • • • • • • • • • • • •

136 viastore SYSTEMS Inc.

www.viastore.com

137 Voodoo Robotics

www.voodoorobotics.com • •

138 Voxware

www.voxware.com

139 Werner Enterprises/ Werner Logistics

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

140 Westfalia Technologies Inc. www.westfaliausa.com

• • • • • • • • • •

• • • • • • • • • • • •

• • • • • • • • • • •

• • •

141 WorkWave

www.workwave.com • • • • • • • • •

142 Yale Materials Handling Corp.

www.yale.com/ north-america/en-us/

143 Zebra Technologies

www.zebra.com • •

144 Zest Labs

www.zestlabs.com • • • • • • • •

• • • • •

Nature’s Frequencies

NiceLabel

Omnichain Solutions

Website: www.foodfreshnesscard.com

Website: www.nicelabel.com

Website: www.omnichains.com

Year Founded: 2014

Year Founded: 1993

Year Founded: 2018

Number of Employees: 10

Number of Employees: 140

Number of Employees: 10

Number of Food/Bev Customers: 1,000 Solution Brand Name(s): Food Freshness Card

Number of Food/Bev Customers: 100

Number of Food/Bev Customers: 5-10 Solution Name(s): Omnichain

Worth Noting: Thinking outside the box is common for Nature’s Frequencies in order to revolutionize and assist with issues like food waste and shelf-life extension. The company’s Food Freshness Card uses Tesla technology with quantum physics to help extend shelf life without an additional power source. The technology is constantly being tested and improved, evolving with different partners around the world.

Worth Noting: Since opening in 1993, NiceLabel has been a leader in label management systems. Food and beverage manufacturers are able to digitally transform their entire label printing and production process, resulting in a leaner, more agile operation. With NiceLabel, customers also are able to respond quickly to changing market conditions and requirements by ensuring accurate, consistent labels that get products to market faster.

Solution Name(s): NiceLabel Label Management System (LMS)

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FLOG1118_28-41_FL100.indd 38

Worth Noting: Omnichain’s platform helps food and beverage companies connect their supply chains from end to end using blockchain technology in under 90 days. Its demand-driven, softwareas-a-service platform delivers real-time transparency, trust and efficiency, from source to shelf, for more proactive demand planning and forecasting. Notably, Omnichain holds the U.S. patent for planogram, a store- and SKU-level forecasting and replenishment system.

www.foodlogistics.com

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Other

Optricity Website: www.optricity.com Year Founded: 2005 Number of Employees: 16 Number of Food/Bev Customers: 36 Solution Brand Name(s): OptiSlot DC, Moves Conductor Worth Noting: Optricity’s solutions offer powerful algorithms to easily solve the complex challenges that intricate slotting projects present. With quick run times, OptiSlot DC allows companies to compare multiple slotting scenarios and simulate potential return before making a single reslotting move. As the needs of the industry continue to grow and change, Optricity’s solutions continue to evolve through client-directed, engineer-driven and continued development.

PAR Technology Website: www.partech.com Year Founded: 1977 Number of Employees: 1,200 Number of Food/Bev Customers: N/A Solution Brand Name(s): SureCheck Solution Worth Noting: PAR’s advanced cloudbased SureCheck Solution combines

www.foodlogistics.com

FLOG1118_28-41_FL100.indd 39

the business and operational strategies of a foodservice organization into one location, giving customers sharper insight and control for managing efficient facilities, equipment, staff and food safety initiatives. The solution unites task management, food safety compliance and IoT remote monitoring to provide a faster, simpler and complete path to operational success.

ProCat Distribution Technologies Website: www.procatdt.com Year Founded: 2001 Number of Employees: 18 Number of Food/ Bev Customers: 200 Solution Name(s): PickRight, ReceiveRight, LoadRight, ShipRight, ReturnRight, CountRight, StockRight, WeighRight, TaxRight Worth Noting: ProCat’s solution, PickRight, stands out to customers by allowing them to pick perfect orders without having a WMS in place, enabling benefits such as efficient and accurate order picking. The solution is also easy to train new employees to use. Within minutes, ProCat says employees can be using PickRight to pick orders with 100 percent accuracy.

QAD Webiste: www.qad.com Year Founded: 1979 Number of Employees: 1,900 Number of Food/Bev Customers: 500 Worth Noting: QAD’s solution is a perfect fit for food and beverage manufacturers, with the ability to handle complex and high-volume production and global distribution of products. Because equipment is critical to protecting margins, the company can ensure asset management and maintenance by managing production facilities. Food safety is critical to QAD and it provides full product traceability and serialization and quality management throughout the entire process.

The Raymond Corporation Website: www.raymondcorp.com Year Founded: 1922 Number of Employees: 1,850 Number of Food/Bev Customers: N/A Solution Brand Name(s): Raymond Virtual Reality Simulator Worth Noting: The Raymond Virtual Reality Simulator offers instructional education modules on an actual lift truck, acquainting operators with their truck before even stepping on the

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warehouse floor. Also of note, the port can be disconnected from the truck, which can then be placed back into operation within the warehouse to maximize equipment, create efficiencies and increase uptime. This eliminatines the need for additional educational equipment.

Safeway Management Group Website: www.smgsafety.com Year Founded: 1999 Number of Employees: 11 Number of Food/Bev Customers: 77 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: Safeway Management Group (SMG) believes

no other business can better meet the needs of customers as it can. The company’s dedicated staff is committed to providing administrative support and consultations for customers. Additionally, SMG has fostered long-term relationships with clients by leveraging their products to support their specific needs.

Seagull Scientific Website: www.seagullscientific.com

The global standard for creating smart tags, barcodes and labeling.

Year Founded: 1985 Number of Employees: 175 Number of Food/Bev Customers: 4,000 Solution Name(s): BarTender by Seagull Scientific Worth Noting: Seagull Scientific is well known among the food and beverage industry. The company’s customers integrate its solution, BarTender, into their software to manage labeling, security, RFID, barcoding and serialization processes. The tool operates “under the hood” of clients’ supply chain software, making users unaware they are using the technology.

Sensitech Website: www.sensitech.com Year Founded: 1990 Number of Employees: 850 Number of Food/Bev Customers: 3,000 Solution Brand Name(s): SensiWatch, ColdStream, TempTale, Ryan, Greenlight Worth Noting: “Fresh” isn’t just a word to Sensitech. By understanding that it must excel in perishable handling, Sensitech has met high-quality standards for nearly three decades. The company works closely with all supply chain partners to facilitate the sharing of actionable data and to implement business-level KPIs that align trading partners with freshness goals.

www.seagullscientific.com

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www.foodlogistics.com

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Technology Group International Website: www.tgiltd.com Year Founded: 1990 Number of Employees: 34 Number of Food/Bev Customers: 250 Solution Brand Name(s): Enterprise 21 ERP Worth Noting: Unlike other ERP products on the market, Enterprise 21 is developed, sold, implemented and supported directly by Technology Group International. This single-supplier approach enables customers to have a direct relationship with the company for all their software needs. The online vendor portal caters to food and beverage companies, allowing customers access to real-time and accurate information on their suppliers and their products within the supply chain.

Testo Solutions USA Inc. Website: www.testo.com Year Founded: 1957 Number of Employees: 2,700 Number of Food/Bev Customers: 100,000 Solution Brand Name(s): testo Saveris Restaurant, testo Saveris Retail Chain Worth Noting: For over 60 years, Testo has developed innovative measure solutions for the food and pharmaceutical industries. The companyâ&#x20AC;&#x2122;s solutions are developed to support quality management initiatives and protect brand reputation. Each solution combines innovative measurement technology with intuitively operated software and individualized services.

Worth Noting: Velociti uses game engine technology to analyze and react in real time to changes in order profile, inventory shorts/outs, inbound product, delayed outbound carriers and more. By altering the order fulfillment plan with real-time visibility, the company aims to win the logistics game every day.

Voxware Website: www.voxware.com Year Founded: 1993 Number of Employees: 60 Number of Food/Bev Customers: 55 Solution Brand Name(s): Voice Management Suite, VoxPilot, VoxStudio, VoxConnect Worth Noting: Voxware goes beyond voice picking and utilizes multimodal technologies across all workflow processes to ensure the right technology is being used for the task at hand. The company is able to maximize efficiency, accuracy and profitability across the distribution center, 2018 adding at least 15 percent more productivity by providing centralized views and insights. Voxware offers customers configurable solutions that address a wide range of challenges.

Transportation Insight Website: www.transportationinsight.com Year Founded: 1999 Number of Employees: 510 Number of Food/Bev Customers: 42 Solution Name(s): Technology-driven, multimodal end-to-end supply chain solutions Worth Noting: With nearly 20 years of experience, Transportation Insight continues to lead logistics solutions that reduce cycle times and improve customer satisfaction. The company complements its technology offerings with continuous improvement methodologies that overlay technology-enabled supply chain analytics on the extended value-stream map. Transportation Insight helps companies understand where issues exist and where improvements need to be made. Leveraging such assessments and analytics, organizations can prioritize initiatives to increase efficiency, manage cost and accelerate growth.

Velociti Alliance Website: www.velocitialliance.com Year Founded: 2000 Number of Employees: 10 Number of Food/Bev Customers: 30 Solution Brand Name(s): PiecePick, SmokePick, TradeWins, TW*Sell, TW*Serve

www.foodlogistics.com

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SECTOR REPORTS WAREHOUSING

BY AMY WUNDERLIN

SMART LABELS CLEAR THE WAY FOR

CONSUMER, ENTERPRISE TRANSPARENCY Retailers, suppliers and logistics providers are increasingly using smart labels to satisfy a desire from the enterprise and the consumer for more visibility.

 The GO NFC smart label from Emerson records historical time and temperature information and displays if temperature thresholds have been exceeded on its mobile app.

he emergence of smart labels has been an important development in the food supply chain, connecting products to improve visibility, ensuring compliance with food safety regulations and enhancing shelf life. Beyond these essential benefits for all players in the food and beverage industry, smart labels also offer that same transparency at the consumer level, giving shoppers insight into how their food was treated on its journey to the store shelf. A smart label is any label that acts as a conduit to provide additional intelligence beyond what is readable by the human eye. Code-enabled smart labels and products are connected to a digital platform, enabling companies to collect data and respond to consumer interactions. Near field wireless communication technology (NFC), which is available in all smartphones, is one of the most common technologies embedded into labels to make them “smart,” because it can easily connect a consumer directly to additional information about a product. “By tapping the smartphone to the label, the consumer can be brought to additional information such as recipes or ingredient information,” explains Amy Childress, vice president of marketing and planning, Cargo Solutions, Emerson Commercial & Residential Solu-

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tions. “We’ve seen these types of labels connect users directly to a brand experience dictated by the brand owner.”

Answering Consumer Demand for More The proliferation of smartphone use is making the case for direct brand to consumer transparency a reality, especially as today’s consumers continue to demand more information than ever before. A study by Deloitte, commissioned by the Grocery Manufacturers Association (GMA) and the Food Marketing Institute (FMI), demonstrates that health and social responsibility are increasingly driving consumer expectations. It is no longer enough to simply supply a list of ingredients; the study found consumers want to know what each ingredient is, where it came from and why it is in the product. “Shoppers want more information and clarity about the meanings and implications of what lies beyond the product, such as sourcing, animal welfare, and environmental and ethical practices,” according

to a whitepaper released by GMA, Imperative for the Consumer Products Manufacturers and Retailers: Providing Consumers More Information and Increasing Consumer Trust. “The values of the company are becoming as important as the value of the products they are purchasing from those companies,” the whitepaper states. And for food manufacturers and retailers ready to address this growing movement, smart labels are providing an answer. In 2016, GMA and FMI, under the manufacturing companies’ and retailers’ parity-based entity called the Trading Partner Alliance (TPA), created SmartLabel, a digital transparency initiative for the CPG and retail industry. “Consumers want and have a right to know what’s in the products they purchase, utilize and consume. For retailers that sell these brands and are the closest to the consumer, SmartLabel adoption and implementation will ensure their customers’ needs are met,” says Mark Baum, chief collaboration officer at FMI. SmartLabel, which has been www.foodlogistics.com

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include detailed descriptions about how a product was made, how animals were treated during the development process, or the environmental impact of manufacturing the product. Much of the current product information is anecdotal, however, as brands are still adapting and transitioning to the SmartLabel, but consumer engagement thus far has been positive. Between January and

applied to more than 35,000 products in the average grocery store, provides a plethora of product details that could never fit on a package label. In addition to the ingredients included in a product, SmartLabel can explain what those ingredients are, why they’re in the product, what they do and even where they came from. This might

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March 2018, more than 1.3 million people visited SmartLabel landing pages, and more than 54 percent of the visits came from smartphones. And signs indicate this growth will only continue. A report by FMI, 2017 Grocery Shopper Trends, found that 72 percent of millennials indicated they were “somewhat to very likely” to scan a QR code to find out more specific product details.

An Aid to Recall Prevention and Response Beyond providing a much demanded sense of transparency, smart labels can help consumers quickly identify products that have been recalled. They can also improve how all partners in the food supply chain respond to recall events by helping companies quickly identify, locate and remove the affected products. “Smart labels are able to provide traceability with both trace forward and trace back capabilities. This visibility and insight for the industry allows for speedier reaction times in the event there’s a product recall,” explains Emerson’s Childress. Smart labels have preventative benefits as well, which have increasingly become important following the creation of the Food Safety Modernization Act (FSMA) in 2011. The law was implemented with an aim toward prevention as food recalls continue to rise in the United States. FSMA requires food and beverage companies to implement preventive controls, such as better labeling processes, to reduce the likelihood of a recall. According to the Food Industry Counsel’s (FIC) annual review of food product recalls, the presence of undeclared allergens and mislabeled products were the leading cause of recalls in 2017. The FIC reports 218 out of the 440 recalls were caused by the presence of ingredients such as wheat, peanuts, tree nuts, fish, shell fish, soy, milk, egg, MSG and/or sulfites that were not declared on the product label. Smart labels that track and trace www.foodlogistics.com

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a product and its ingredients from end-to-end could give consumers that information and significantly reduce mislabeling.

A Step Toward Improved Shelf Life Smart labels also play a large role in monitoring the conditions of cargo, with future potential to improve product shelf life and empower advanced technological solutions. “Smart labels have made the supply chain smarter and empowered the overall supply chain by providing increased visibility into in-transit cargo conditions, ensuring food has been maintained at proper temperature ranges,” says Childress. “Retailers and suppliers that are most concerned with freshness, quality and safety have implemented the use of Retailers and smart labels and suppliers that are other monitoring systems most concerned with freshness, in their supply quality and chains.” Data collectsafety have ed by smart implemented the use labels can also of smart labels.” be integrated Amy Childress, vice into back-end president of marketing, Emerson cloud services for further analysis and insight. For example, cold chain data from Emerson’s GO NFC smart label loggers and trackers is integrated into its Oversight Cloud platform, where the company then provides aggregated cold chain information back to its customers. The benefits of smart label data collection is being explored by several growing industry-wide initiatives and may prove essential in the successful deployment of blockchain technology. Emerson recently joined the IBM Food Trust, where Childress says the company is leveraging its advanced cold chain technology to provide temperature-related information on in-transit, refrigerated cargo to improve shelf-life estimates and food freshness, enabling more actionable data for network members. www.foodlogistics.com

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In 2008, an industry-led effort to enhance traceability throughout the entire produce supply chain was launched as the Produce Traceability Initiative (PTI). The initiative aims to create a standardized industry approach to how fresh produce products are labeled and tracked. “Traceability codes, such as those promoted for use by the Produce Traceability Initiative, bring trace forward and trace back capabilities

to the produce industry,” notes Childress. “These smart labels are a component of a system that makes it possible to track produce from its point of origin to a retail location. “We’ve seen similar traceability codes used to validate the authenticity of pharmaceuticals and combat counterfeit drugs, and you will see a similar use in tracking high-value, luxury goods,” she adds.

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SECTOR REPORTS TRANSPORTATION

BY BARRY HOCHFELDER

CARGO THIEVES

HUNGER FOR FOOD SHIPMENTS From corn and wheat to canned tuna and octopus, no region is exempt.

ood is very fungible, says Tony Pelli, supply chain risk consultant at London-based BSI Group, a 117-year-old global business standards company. According to the dictionary, that means it’s interchangeable. For cargo thieves, that makes food a desirable target. “It’s easy to find people to buy food,” Pelli explains. “They sell it into the black market or to legitimate companies. They can pose as distributors. Once it’s in the supply chain, there’s no evidence after it’s consumed.” No country or region is safe, Pelli adds. “In South America and India, staples like wheat, rice, soy and corn are stolen. In the United States, Germany, the U.K. and Italy, things like energy drinks are stolen a lot. Regional specialty foods are targeted, too. In Italy, aged Parmesan cheese; in Chile, salmon; and

France, champagne. In the United States, higher value fish and meat are targeted.”

Tentacles of Cargo Theft Some areas, of course, are higher risk than others. Late last year in Mexico, specialty foods and a high-risk region came together in a perfect storm when 14 trailers carrying about 25 tons of frozen octopus combined were hijacked. Over a 30-day period, thieves stole trailers in the Yucatan region on federal roads between Veracruz and Puebla. At last report, authorities had caught three thieves and recovered only one shipment,

according to The Yucatan Times. Shipments are now being guarded by the Mexican Army and Navy. “In most countries, there are high-risk areas where it’s easier to target food than other products,” Pelli says. “Southern California, Rio and Sao Paolo, Brazil, are others. And there are a lot more food shipments than pharmaceuticals and electronics.” Sometimes, even though the thieves might escape, the authorities catch the “middleman.” In 2010, a man named Johnny Ray In most countries, there are high-risk areas where it’s easier

to target food than other products.

Tony Pelli, supply chain risk consultant, BSI Group

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Improving energy efficiency. Reducing Food Waste. Assuring compliance with the FSMA. These are some of the requirements that retailers, restaurants, manufacturers and growers of perishable food are demanding of their logistics partners when it comes to maintaining the cold chain. In response, innovations related to equipment, temperature monitoring devices, refrigeration systems and other new products and services are helping meet these demands.

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SR: TRANSPORTATION continued

Smith was arrested by the FBI and later sentenced to four years and two months in prison on charges of conspiracy; buying, receiving and possessing stolen goods; as well as money laundering. He also was ordered to pay approximately $994,000 in restitution. The FBI said Smith and a partner—who received a lesser prison term for cooperating in the investigation—bought and received goods stolen from nearly two dozen interstate tractor trailer and container shipments valued at just under $2 million. They then sold the goods at discounted prices to wholesalers and consumers in the Southeast U.S. Many of the products were en route to major retailers, including Best Buy, Lowe’s, Target and Walmart. Among the goods was an $86,000 shipment of Starkist canned tuna.

Shippers of high-value freight have changed processes and added security measures to protect their shipments, while the food and

beverage industry has lagged.”

Michael Notarangeli, executive vice president of logistics, Maine Pointe

The Path of Least Resistance

Cargo thieves seek the easiest target, says Michael Notarangeli, executive vice president of logistics at Maine Pointe. “Opportunistic thieves will simply work a ‘pareto’ of highest value freight with the lowest level of security and governance and then make their move.” (The pareto principal, also known as the 80/20 rule, states that for many events, roughly 80 percent of the effects come from 20 percent of the causes.) “Owners and shippers of high-value freight have changed processes and added security measures to protect their shipments, while the food and beverage industry has lagged in this area,” Notarangeli adds. “Some of the problem is the SUPPORTING SPECIFIC NEEDS very nature of the food IN THE FOOD INDUSTRY and beverage supply Multiple Date Tracking Recall Management FIFO Efficient Space Utilization chain—well-marked vans Detailed Audit Trails Just-In-Time Process or reefers, multiple stops Environmental Controls Cycle Counting on a route, a single driver leaving the truck, and cargo unattended while delivering inside.” Unattended trailers and loaded trailers waitFIND OUT HOW WE CAN HELP YOUR WAREHOUSE ing for pickup at a dock FUNCTION EFFICIENTLY AND TO ITS FULLEST POTENTIAL. or awaiting transfer in a ThinkInterlink.com | 800.655.5465 | info@thinkinterlink.com yard are also targeted.

TOP OF THE

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Even the driver shortage plays into it. “With capacity tight, new drivers may arrive to take a shipment. Shippers must ensure that proper vetting procedures are in place to verify credentials before releasing the shipment,” says Notarangeli. Fictitious pickups are on the rise, according to the SensiGuard Supply Chain Intelligence Center, which has documented increases in both the volume and value of cargo theft year-over-year since 2008. “In these events, cargo thieves arm drivers with fake IDs or devise fictitious businesses to pick up cargo as a way to divert and steal goods,” the company says on its website. “These criminals know how to navigate load boards and effectively target high-value loads.”

The Way of the Criminal SensiGuard Supply Chain Intelligence Center’s Global Cargo Theft Risk Assessment report for 2018 assigns a cargo theft risk rating (from one to five, with five being most at-risk) to each country, based on seven categories: corruption and organized crime, weather and natural disasters, war and terrorism, labor disputes, cargo theft, civil unrest, and infrastructure. The report also shows the modus operandi (M.O.) of thieves around the world. Here’s a brief look at a few of them, with their cargo theft risk rating in parenthesis: • United States (4): Typically, the entire tractor and/or www.foodlogistics.com

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at its destination. Drivers are approached by armed men, and the truck is either taken or the drivers are forced to follow them to a deserted place where the cargo is transferred. • South Africa (5): The use of heavy firearms and explosives is common practice, and drivers are often shot.

Fighting Back

and tracking of higher value inventory/rolling assets, and install security protocols along the fulfillment continuum. • Install locking, access control and theft prevention technology on vehicles and trailers, warehouse conveyance, and harden the warehouse security. • Consider driver teams to prevent unattended freight. “The first few items on this list are about building awareness, conducting training, changing practices/processes, and operator behavior,” he says. “The last few require a higher level of investment but will help ensure a total value solution by reducing long-term costs and mitigating risk for the operator. Firms that take a proactive, asymmetrical approach will maintain an advantage when it comes to preventing cargo theft and ensuring a safe and secure supply chain.”

Cargo thieves are adept with technology, so it is incumbent upon logistics companies to fight fire with fire. One method, SensiGuard says, is with an electrontrailer are stolen Firms that take a ic freight security (EFS) while unattended proactive approach system. at a truck stop or EFS programs specifiwill maintain an rest area. Pilfercally focus on the highest advantage when ages have been risk areas of transportait comes to tion, where the majority recorded outside preventing of full-trailer load cargo of destination cargo theft.” theft occurs. Embedded facilities and can Michael Notarangeli, be indicators of a devices in the cargo proexecutive vice president of larger scale theft vide real-time location, logistics, Maine Pointe to come. status and con• Mexico (5): Over dition via the 70 percent of thefts occur Internet of Things (IoT) in-transit, where cargo vehiand GPS devices, providcles are intercepted by groups ing critical alerts should of armed men. Criminals emthe truck go off course or ploy tactical jammers to block stop for too long. GPS signals while they unload Maine Pointe’s Notacargo in nearby warehouses. rangeli advises shippers • Bolivia (4): Criminals take and operators to take a advantage of the slow speed multiprong approach to of cargo vehicles on slopes or prevent cargo theft. Some passing the speed reducers to best practices include: climb on it from trees, cutting • Build awareness the tent to then throw the load around safety and to the road without the drivers security of all actors noticing. in the supply chain. • Panama (3): The most com• Modify business mon M.O. is the impersonation processes to elimiof police officers to detain nate gaps in security. vehicles, at which point a • Know your drivgroup of armed men threaten ers—ensure that and restrain drivers. Recently warehouse staff are there have been reports of checking credentials incidents in which a woman and performing drugs the driver so he can be extraordinary beaten and robbed by her security audits to accomplices. prevent fake drivers • Brazil (5): Most thefts occur from infiltrating the by hijacking, when the load is supply chain. SHIPCHOPTANK.COM in-transit or being unloaded • Improve visibility www.foodlogistics.com

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Barry Hochfelder is a freelance journalist who has covered a variety of industries in his career, including supply chain. He also served as the former editor of Supply and Demand Chain Executive. Hochfelder is based in Arlington Heights, Illinois.

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SECTOR REPORTS SOFTWARE & TECHNOLOGY

BY AMY WUNDERLIN

UP NEXT FOR IOT IN THE FOOD SUPPLY CHAIN:

PREDICTIVE ANALYTICS T he Internet of Things (IoT) is no stranger to the food supply chain. Network-connected temperature and humidity sensors have long allowed shippers to monitor cold storage facilities and refrigerated trailers, triggering alerts to avoid spoilage or pinpoint potential contaminations before they reach the consumer. In the past, much of the talk around IoT, however, has focused on the devices themselves. Today, advances in wireless technology are shifting the conversation to the cloud and how the information collected by those devices can become more manageable and thus actionable. IoT solutions can now communicate on their own through wireless technology, allowing data to be aggregated in real time in the cloud. With less data being collected manually, insights can be gathered at the product level—whether it’s the pallet or the carton— and translated into real, actionable information, such as shelf life, inventory status,

Advances in cloud software and wireless communications have opened the door for comprehensive data collection at the product level and actionable insights.

things like freshness management and predictive analytics,” says Mehring, adding, “But the big paradigm shift in using IoT is the cloud software and the wireless communications combining to make that manageable. “We’re seeing new things in the data that people didn’t think of, and then you build that into the cloud analytics, and say, ‘Okay, every time this happens, let’s tell them to make a better decision.’ And I think that’s going to continually happen for the next few years,” he adds. “As more data becomes available, we’ll see trends and insights that will make everything more efficient.”

Added Value in Predictive Capabilities When it comes to IoT, Ricardo Gomez-Ulmke, vice present of IoT at Solace Systems, and Mehring both acknowledge that its greatest value ultimately will lie in its predictive capabilities. “Once you’ve reached that stage,

MEASURED SHELF VARIABILITY

% of Sample

whether to a hold or ship a product, and how far to ship it. “There’s been an evolution of temperature loggers from 10 or 15 years ago. They’ve always tested temperature in different environments, but they weren’t doing anything to manage the products,” explains Peter Mehring, CEO of Zest Labs. “If you just manage the trailer, there are obvious things you don’t see. You miss how the product is actually being handled and, therefore, you can’t make [good] decisions about the product.” Zest Labs has been on the forefront of product- or pallet-level monitoring, using sensors to understand the attributes and monitor the conditions specific to the product rather than just the environment the product was placed in. The shift now is taking that a step further and asking, “What can I do now that I have this data?” “Once you know enough about the product and how it reacts to those conditions, you can get into

RECEIVED SHELF-LIFE DISTRIBUTION

STRAWBERRIES ROMAINE GRAPES

10 5

6 7 8 9 10 11 12 13 Shelf-Life Days Since Retail DC Receive Date

Analyses in this chart are based on data that Zest Labs collected by placings its IoT condition sensors in pallets/cartons of strawberries, romaine lettuce and grapes being shipped from the grower to retailers. Using the IoT sensors, Zest autonomously collected the data and analyzed it to show the retailers the variation in the shelf-life of the product that they received.

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www.foodlogistics.com

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you can make the biggest difference in terms of adding value to your end customer,” Gomez-Ulmke says. A large gap in adoption still remains, however, with very few companies actually reaching that stage of predictive management. Gomez-Ulmke estimates that about 50 percent of companies understand they need to receive more data in real time and are working toward reaching a proactive stage of data management, while 40 percent still don’t know where to start. That leaves just 10 percent of companies that are utilizing real-time IoT data to predictively manage their supply chain. The gap, Mehring says, is in the data processing stage. “Most of the analytics today have been filtering data to prioritize it versus assimilating the data and saying, ‘this is what it means,’” says Mehring. “We were very early in doing that with Zest Fresh, turning it into a prediction to say, ‘this is what it means to shelf life, and if that’s what the conclusion is, here’s what you should do about it.’” The key to achieving those predictive capabilities, he adds, is comprehensive data collection at the product level, communicating that reliably and then using analytics to process it into actionable insights. “A number of solutions in the industry have missed the analytics side, the cloud side,” Mehring says. “They have good devices, and they’ve learned to push the data to the cloud, but they haven’t really finished it by saying, ‘And what do you as a customer care about?’ You have to do that translation, otherwise they don’t know what to do with it, and like any user of computers, you quickly get frustrated and ignore it.” Solace Systems recently partnered with supply chain software provider CargoSmart, which has simplified the translation of its customers IoT data to answer three questions: • Where is my cargo? • Who has it? • And is it in good condition? www.foodlogistics.com

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“Their customers basically told them, ‘Hey, I’m going to put this IoT device into my box, but I want you, CargoSmart, to then track the data that this box emits in real time, and tell me about it,’” Gomez-Ulmke explains. Through its partnership with Solace Systems, which creates what it calls a global event mesh that allows people to exchange data and IoT events in real time, CargoSmart can

do this at an extremely fine-grained level for every party involved in the shipping process, creating a collaborative network for end-toend supply chain visibility. “When you ship something, you have a carrier and you have a shipper. Potentially, you have a truck that brings the container to the port, and maybe you have a rail system. All of these participants in that shipping process would like to see real-time

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SR: SOFTWARE & TECHNOLOGY continued

The challenge for the supply chain is to improve the level of granularity for temperature and quality monitoring.” Guilda Javaheri, chief technology officer, Golden State Foods

information about where their cargo is and when it’s going to arrive,” says Gomez-Ulmke. “As an end customer, the earlier I know that my shipment of food or my medical supplies might not be the quality that I expect, I can start making preparations to replace them, get a new shipment going, or manage it in a much more proactive way.” Beyond understanding the location and condition of the products, pallet-level monitoring can also provide insights into operations, such as: What’s the cadence that I get those pallets at? How efficient is my crew at harvesting? How many trucks do I really need to transport the product from the field to the processing plant to the pack house? How do I get the most efficiency and prequel, or processing, or fresh cut? “All of that ancillary information about the product and how it’s being handled suddenly becomes

a key to managing operational efficiency for the growers,” says Mehring. “We’ve already seen that directly with the growers we work with. When things change, they receive push notifications on a mobile app that tells them, ‘Do something about this.’ They can fix it in real time, and that’s been enabled by IoT in the sense that the data is readily available, it’s pushed up to the cloud, and the cloud can determine what the worker needs to know.”

Challenging Long-held Beliefs

Zest Fresh has been collecting product-level data for almost three years, and the findings challenge many long-held beliefs, forcing the food and beverage industry to become proactive in a way they’re still not ready for. For example, there’s a long-held belief that produce harvested on the same day has the same shelf life. If each item has the same date printed on its label, retailers have traditionally believed it must have the same 2018 freshness. But Mehring says once you look at the data, you see that’s just not true. “What we show is no, the variability can be up to five days in a single Discover the solutions our Safety Management, OSHA, Safety Software Programs and Risk Management Support can provide for your business in the following areas: load,” he adds. “But some people don’t want to believe that, because then Transportation Health & Safety Quality Control File Maintenance they have to act on it.” Guilda Javaheri, chief technology officer at Alcohol & Controlled Substances Document Control E-Training Golden State Foods (GSF), one of the largest diversified food procesONLINE | ONSITE | ON POINT sors and distributors in the United States, says  to implement best-in-class safety & compliance programs  to reduce workplace injuries and their associated costs advancements in IoT  to reduce fleet collisions and mitigate associated costs technology have also  to strengthen product quality and ensure supply chain integrity forced major industry  to digitally educate staff on the latest standards and requirements  to ensure compliance programs are controlled, well organized and secure players to redefine fresh. “The challenge for the supply chain is to 877-SMG-1776 www.smgsafety.com info@smgsafety.com improve the level of granularity for tempera-

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ture and quality monitoring. We need to be more specific about the exact temperature required by each product to sustain its properties as the industry continues to move away from preservatives,” she says. Fortunately (or unfortunately depending on who you ask), industry pressures will continue to drive players in the food supply chain to leverage IoT data and analytics. “There’s recently been pressure on pricing that’s forced everyone to look at how to reduce waste and thus improve efficiency. That’s pushed for new technology,” Mehring says. Additionally, there’s an obvious push for improved food safety. Much of that conversation over the last few years has revolved around blockchain, but Mehring predicts IoT and blockchain will go hand-inhand in the future. “There’s still a weak link to entering the data into the blockchain,” he notes. “Even though blockchain is very good once it has the data, the weak link is the manual entry. IoT is a great way to do that because when you use devices not only is it comprehensive, it’s authenticated, and it’s not manual entry.” GSF and IBM have partnered on pilot projects that explore solutions for this weak spot. In 2017, GSF unveiled two pilot programs utilizing IBM’s Watson IoT solution, and today, the company continues to focus on finding solutions to obtain trusted supply chain data in an automated fashion—more specifically using IoT to drive a reinvention of the restaurant industry’s ecosystem. “We’ve proven that IoT can be leveraged to obtain reliable data around package movement and product quality (i.e., temperature), but we’ve also learned that just capturing this data in siloes does not drive industry-wide change,” says Javaheri. “That’s why we are also looking to blockchain as a mechanism to share this data across supply chain partners to drive process standardization and transparency across the system.” www.foodlogistics.com

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

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BY STEVE SNOW

GROWING TRADE VOLUMES REQUIRE SMARTER PORTS W hen most people think of large-scale commerce, they probably imagine trucks crossing the country on interstate highways packed with goods. However, shipping on waterways accounts for the overwhelming majority of foreign trade as well as a significant portion of domestic shipping via inland waterway channels like the Mississippi River. Maintaining these channels is necessary to ensure that billions of dollars of goods are delivered on time and intact. As commerce continues to grow in size and demand increases exponentially, it’s becoming more urgent to modernize the waterway shipping system for engineering and adjust the country’s waterways to support future trade.

Sean McBride for the US Army Corps of Engineers

Imports and exports of perishable food are particularly sensitive to port infrastructure, and dredging is vital to keep pace with future demand.

The United States moves 95 percent of its imported and exported goods by ship, so

keeping its ports open is critical.”

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Sean McBride for the US Army Corps of Engineers

Increasing Challenges The U.S. Army Corps of Engineers maintains waterways throughout the United States and wages a constant battle against the forces of nature. If a storm hits causing underwater sediment to shift making a port too shallow for cargo ships, the Corps must dredge that port to keep it open for shipping. To avoid running aground in the mud, ship captains and harbor pilots rely on the Corps for this work and for updates about port conditions. The United States moves 95 percent of its imported and exported goods by ship, so keeping its ports open is critical to the economy. With the 2016 Panama Canal expansion, the cargo capacity of ships traveling through this important channel nearly tripled. The number of ships entering the channel also increased, as did their drafts. Draft is the distance between waterline

Sandra Arnold for the US Army Corps of Engineers

SECTOR REPORTS OCEAN PORTS & CARRIERS

The South Carolina Ports Authority is deepening Charleston Harbor to 52 feet. Work is currently ongoing in the entrance channel with several dredges deepening the harbor.

and keel, and it marks the necessary water depth for safe travel. These “New Panamax” ships have a fully loaded draft of nearly 50 feet, placing constraints on navigation that favor the nation’s deepwater ports. This directly affects the flow of commerce.

Fiscal Impacts A variety of risks, including weather, can impact ports and the multiple stakeholders that depend

on them. For example, when strong storms caused sediment buildup (known as shoaling) in the deepwater Port of Texas City in Galveston Bay, the port was forced to restrict shipping from the typical 45-foot draft to just 41 feet. This 4-foot difference had an economic impact on the port and the industries that rely on it. The lower draft meant that companies needed to use smaller ships to ferry cargo into the Gulf of Mexico for loading onto bigger ships www.foodlogistics.com

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Added capacity means fewer individual trips with less fuel consumed,

which translates into dollars saved and emissions reduced.”

continued

or divert them to different ports. The key Brazilian port of Santos has experienced similar storm-related restrictions. The port estimates that every day a vessel is not operating, shipowners lose between $10,000 and $75,000, depending on the size and type of ship. Restrictions on shipping for just one day in Santos collectively cost shipowners $1 million, not including losses to the port and the overall impact on Brazil’s economy. The solution to this problem has historically been simple, but complexity grows as demands of commerce quickly expand.

Engineering Commerce Without dredging, many ports would become impassable. The Corps regularly performs this maintenance chore that keeps 400 ports and harbors along 13,000 miles of deep-draft coastal channels and 12,000 miles of shallow-draft inland and intra-coastal waterways

Sean McBride for the US Army Corps of Engineers

SR: OCEAN PORTS & CARRIERS

Dredging is part of the U.S. Army Corps of Engineers’ regular maintenance schedule, which keeps 400 U.S. ports and harbors passable.

usable. Storm debris increases the Corps’ regular workload, adding 250 million cubic yards to the material dredged from the nation’s waterways every year. As a result, the Corps conducts regular hydrographic surveys across 22 coastal and 16 inland districts to assess channel safety and prioritize dredging needs. The fiscal impact of dredging cannot be overstated. Consider that in 2017, the Port of Los Angeles/Long Beach increased the

draft of the port complex from 65 feet to 66 feet. Each additional foot of draft means that larger ships can enter the port complex and carry more goods. Each foot of depth translates into considerably more cargo and value. The National Ocean Service, a division of National Oceanic and Atmospheric Administration (NOAA), puts this added capacity into perspective. With a foot more of draft, a cargo ship can carry: • 684 more tractors, worth more than $45 million • 378,624 more laptop computers, worth more than $262 million • 9,274,800 more bushels of wheat, worth more than $720,000 • 61,728 more 55-inch televisions, worth approximately $26 million The added capacity also means fewer individual trips with less fuel consumed, which translates into dollars saved and greenhouse gas emissions reduced. But, the system can still be improved.

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Recently, the Corps started using an enterprise-wide system dubbed eHydro that includes tools and workflows to catalog, organize and share surveys. eHydro is an application that easily—and almost automatically—feeds the data from each survey into a Corps-wide system. Each dredging effort is a project, so eHydro acts as a centralized system of projects. It captures the horizontal and vertical dimensions of each dredging project as the work is www.foodlogistics.com

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completed and records surveys periodically conducted to assess current channel conditions. Since implementing the approach, the Corps has seen marked improvements in the accuracy, consistency, timeliness and sharing of project information. The streamlined data aggregation allows for automation of regular reports on channel availability and conditions. Internal data sharing was a big advancement, but the full benefit comes from sharing with all stakeholders through the Corps Navigation Portal (navigation.usace. army.mil). Now, information can flow to NOAA to update the navigational charts. The Corps’ data is by far the biggest outside source of data that NOAA uses in its nautical charts. Previously, information had to be gathered from each district, then “normalized” from the more than 20 formats that existed. Today, the Corps’ data is accessible from a single web service.

Modern Ports for a Modern Economy The Corps now has a means for evidence-based decision-making using eHydro to clearly compare present channel conditions and prioritize dredging funds against the impacts to commercial shipping. Typically, dredging projects are backlogged due to the sizeable workload demands along with time and budget constraints. Furthermore, each dredging project must be carefully analyzed. For example, if one channel is authorized at a 35-foot depth and it’s only 32 feet, the Corps has to balance the $5 million additional cost to get the channel to that depth against other projects. In some cases, it’s more beneficial to dredge a deepwater port from 40 feet to 45 feet to accommodate today’s larger ships. However, thanks to eHydro, the Corps can now use location intelligence to more precisely balance these trade-offs. Over the next 20 years, the volume of cargo traveling by container ship is projected to increase by 65 percent, according to the global management consultancy McKinsey & Company. With demand at ports and waterways rising steadily, the Corps’ streamlined data-sharing efforts have an increasing impact on the flow of goods imported and exported from the United States.

DEEPENING PROJECTS BOOST COMPETITIVENESS FOR U.S. SOUTHEAST PORTS By Lara L. Sowinski Key container ports in the United States are in the midst of several harbor-deepening projects that will accommodate larger ships, which means more cargo. The Port of Charleston’s $558 million dredging project will eventually provide its Inner Harbor with a 52-foot depth and the entrance channel with 54 feet. “The deepening of the Charleston Harbor is one of the most important strategic priorities for the State of South Carolina,” says Jim Newsome, president and CEO of South Carolina Ports Authority (SCPA). “The Southeast needs a 52-foot harbor to efficiently handle the large container ships now calling the East Coast. There are four other harbors on our coast at 50 feet of depth (New York/ New Jersey, Baltimore, Virginia and Miami), and such large container ships call a network of ports. The deepening of major U.S. ports is a significant element of the overall investment thesis across the port industry nationwide…” Just over 100 nautical miles to the south, the Savannah Harbor Expansion Project, or SHEP, is expected to conclude in late 2020, deepening the Savannah River to 47 feet at mean low water. Griff Lynch, Georgia Ports Authority’s executive director, notes that, “Since the opening of the expanded Panama Canal, the neo-Panamax vessel percentage calling on Savannah has grown from 42 percent to 60 percent, and GCT (Garden City Terminal) has experienced meteoric growth. With deeper water, today’s 14,000 TEU ships will be able to transit the Savannah River with greater scheduling flexibility and take on heavier export loads.”

Steve Snow is an industry specialist for mapping, statistics and imagery at Esri. He has more than 18 years of experience working in GIS, mapping, charting and remote sensing.

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FOOD (AND MORE) FOR THOUGHT

BY VANAN MURUGESAN, REGINALDO REYES

A Gathering Place for Goodness BY REGINALDO REYES, VANAN MURUGESAN

O Vanan Murugesan is director of design and innovation at Pillsbury United Communities, a Minneapolis-based social enterprise.

Reginaldo Reyes is vice president of brand experience & environmental design at KNOCK Inc., a Minneapolis-based creative agency.

ver the last few decades, the community of North Minneapolis has been one of the most chronic food deserts in the country. A community of 67,000 ethnically and economically diverse residents, the area numbered 30 convenience stores and only one full-service grocery store. People were seriously deprived of fresh food choices and wellness services, impacting the rise of illness and disease. Minneapolis-based Pillsbury United Communities (PUC), a 139-year-old nonprofit driven to create social change for underprivileged and impoverished populations, set out to change that—for good. In a two-year joint venture with many community partners, including corporate funders, architects, developers, food merchants, brand strategists and environment designers—and most importantly the North Minneapolis community—a seedling of an idea became a transforming experience culminating with a mandate to provide everyone with the healthy choices they deserve. At PUC, we believe that change happens best when the people affected are engaged and able to be part of the process. That engagement took root when KNOCK Inc., a Minneapolis-based full-experience creative agency, was chosen to brand a new grocery store and wellness environment that would become a hub of accessibility and sustainability for the community. The collaboration among PUC, KNOCK and other operational partners made it possible to overcome the typical obstacles that food deserts face and work together to find a solution by facilitating stakeholder research.

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With, Not For PUC and KNOCK believe that true empathy and understanding happens when one is “with” the people, rather than “for” them—an important distinction that best defines an equitable relationship and acknowledges social innovation. Truly grasping the complexities of the problem was the first step to addressing the solution. Luckily for us, we have a history with the community and were able to identify populations who best represented the area. Our methods were varied to inspire more layered feedback— from large community center meetings to smaller group settings to one-on-one interviews. Through all of our stakeholder research, we discovered two main drivers in the process: Those who want more organic and healthy choices (about 20 percent) and those who want everyday foods with an emphasis on affordability (about 80 percent). It’s a problem that we could tackle by creating strong and nuanced relationships with our distributors. From these efforts, the North Market store was born. Since the store launched in December 2017, we continue to monitor the shifts in that 80-20 equation. As with any grocery store, wide-ranging need can be difficult to respond to. Our staff at North Market works diligently to accommodate suggestions, receiving feedback through social media, at the store and through drop boxes.

Product, Price, People North Market operates much like a regular independent grocery store, but as a nonprofit grocery option, we uphold a special commitment to our neighbors to offload costs. We keep costs manageable

by taking control of the supply chain and distribution. Having various players is important to meeting demand. It boils down to this: If our distributors can ensure quality, availability and affordability, we get it. If not, we try to offer alternative suggestions to our neighbors so the need can be met some other way. We also intentionally work with local vendors for produce and meats specifically, to help stimulate North Minneapolis’s economy and to fulfill PUC’s mission of being true advocates of the community. Our entrepreneurial spirit allows smaller brands to coexist at North Market.

A Model for Good Living Identifying a community as a food desert doesn’t necessarily mean that people are starving. They’re eating something—whether that be unhealthy food near to them or better food that’s an hour away. Either way, these people have developed a habit that is incredibly tough to break. So, creating a remedy for a food desert needs to be as easy as possible for the community to champion. The branding work from KNOCK to transform our environment to one that is destination worthy, informative, inspiring and deeply appealing to the specific community the store serves has bridged the gap from the North Market being a theoretical solution to a functional marketplace. Ultimately, it’s about more convenience, better options and lower pricing. To meet all three comes down to trusted relationships. You need to be vigilant in asking the right questions and finding the right distributor for your product mix. www.foodlogistics.com

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