Food Logistics – Inbound Logistics https://www.inboundlogistics.com Mon, 01 Apr 2024 16:35:23 +0000 en-US hourly 1 https://wordpress.org/?v=6.5.2 https://www.inboundlogistics.com/wp-content/uploads/cropped-favicon-32x32.png Food Logistics – Inbound Logistics https://www.inboundlogistics.com 32 32 Oil’s Well That Ends Well https://www.inboundlogistics.com/articles/oils-well-that-ends-well/ Mon, 01 Apr 2024 07:26:33 +0000 https://www.inboundlogistics.com/?post_type=articles&p=40083 RESPONSIBILITIES: Overseeing supply chain operations, production, maintenance, and capital expenditures.

EXPERIENCE: Vice president, operations; operations manager; and engineering manager, all with Pompeian; continuous improvement intern with Colgate-Palmolive.

EDUCATION: Université de Technologie de Compiégne (UTC); mechanical engineering, industrial reliability, and quality.


I was born and raised in Morocco, and then graduated from college in France. I came to the United States and joined Pompeian in September 2013 when I was 23 years old.

I came to the United States thinking I spoke decent English, but I really didn’t. I started in the maintenance department on a team of experienced mechanics, where I had no experience and a language barrier. The company trusted me, but gaining the trust of the department was more of a challenge.

To gain their trust, I focused on consistent, hard work combined with pride and love. Every day I worked longer hours, as I wasn’t yet thinking about having kids or buying a house.

I did this because I wholeheartedly agreed with Pompeian’s values. We offer a good, healthful product and are doing good for farmers, consumers, our employees, and the planet.

In this company, every employee matters. Knowing all of this means I can go through challenges and difficult days with pride. When I return home, I still smile and feel the same satisfaction as when I started. I was lucky that I was given a challenge and I embraced it.

Before Pompeian, I held an internship with Colgate in France, where I was able to see a large-scale production operation. Colgate also inspired me, when I was choosing my career path, to look at what I like to do and what type of businesses will remain meaningful and continuously do good for people. Food is one. People will always eat and drink, and value can always be added there.

It’s also easy to become passionate about the food industry, especially olive oil because it has a long history and provides many health benefits. In many countries, it’s on the table like salt and pepper.

Additionally, manufacturing skills can transfer from one company to another. I think of engineering as learning how to solve things. That’s the part I enjoy, as well as systems and process changes. These are also what drew me to supply chain.

There have been a lot of positive changes and growth across Pompeian. The company is family-oriented and culture-driven. We care about families, food and the planet, and I’m proud to be a part of it.


Salim Benjelloun Answers the Big Questions

1. What are one or two things you wished you’d known before starting your current role?

Without hesitation, it’s English. Speaking the language is an important requirement when coming to an English-speaking country.

Another thing is the American mentality about work and how much we focus on it. In Europe and Morocco, there’s a different mindset and balance. It wasn’t too difficult to adjust to the differences, but I would have been a little more efficient if I knew the American culture coming in. Yet, there is also the beauty of discovering it.

2. What kind of student and teen were you during your high school years?

One thing that made me who I am today when it comes to approaching challenges is that I was lucky to have parents that would not say no to anything. It doesn’t mean they always approved of what I was doing, but they left the responsibility to me.

My dad would say, ‘You’re going to keep going, hit the wall, and then come back. You have to measure the risk.’ So as a teen, I could sleep at a friend’s house even on school nights, but it was on me to make it to school the next day. This helped me to learn not to be scared of making my own decisions.

At the same time, making decisions can be exhausting. I would wear the same pajamas and socks each day so I didn’t have to think about choosing them. I then kept my thoughts for bigger decisions.

3. What motivates you to get you out of bed every morning?

The people I work with. Before I think about my job, I think about who I will be working with during my day.
What also gets me out of bed is the anticipation of uncovering new possibilities, and the excitement of turning potential into reality and embracing the day’s untapped opportunities.

Lastly, gratitude for the gift of a new day and the well-being to experience it.


]]>
RESPONSIBILITIES: Overseeing supply chain operations, production, maintenance, and capital expenditures.

EXPERIENCE: Vice president, operations; operations manager; and engineering manager, all with Pompeian; continuous improvement intern with Colgate-Palmolive.

EDUCATION: Université de Technologie de Compiégne (UTC); mechanical engineering, industrial reliability, and quality.


I was born and raised in Morocco, and then graduated from college in France. I came to the United States and joined Pompeian in September 2013 when I was 23 years old.

I came to the United States thinking I spoke decent English, but I really didn’t. I started in the maintenance department on a team of experienced mechanics, where I had no experience and a language barrier. The company trusted me, but gaining the trust of the department was more of a challenge.

To gain their trust, I focused on consistent, hard work combined with pride and love. Every day I worked longer hours, as I wasn’t yet thinking about having kids or buying a house.

I did this because I wholeheartedly agreed with Pompeian’s values. We offer a good, healthful product and are doing good for farmers, consumers, our employees, and the planet.

In this company, every employee matters. Knowing all of this means I can go through challenges and difficult days with pride. When I return home, I still smile and feel the same satisfaction as when I started. I was lucky that I was given a challenge and I embraced it.

Before Pompeian, I held an internship with Colgate in France, where I was able to see a large-scale production operation. Colgate also inspired me, when I was choosing my career path, to look at what I like to do and what type of businesses will remain meaningful and continuously do good for people. Food is one. People will always eat and drink, and value can always be added there.

It’s also easy to become passionate about the food industry, especially olive oil because it has a long history and provides many health benefits. In many countries, it’s on the table like salt and pepper.

Additionally, manufacturing skills can transfer from one company to another. I think of engineering as learning how to solve things. That’s the part I enjoy, as well as systems and process changes. These are also what drew me to supply chain.

There have been a lot of positive changes and growth across Pompeian. The company is family-oriented and culture-driven. We care about families, food and the planet, and I’m proud to be a part of it.


Salim Benjelloun Answers the Big Questions

1. What are one or two things you wished you’d known before starting your current role?

Without hesitation, it’s English. Speaking the language is an important requirement when coming to an English-speaking country.

Another thing is the American mentality about work and how much we focus on it. In Europe and Morocco, there’s a different mindset and balance. It wasn’t too difficult to adjust to the differences, but I would have been a little more efficient if I knew the American culture coming in. Yet, there is also the beauty of discovering it.

2. What kind of student and teen were you during your high school years?

One thing that made me who I am today when it comes to approaching challenges is that I was lucky to have parents that would not say no to anything. It doesn’t mean they always approved of what I was doing, but they left the responsibility to me.

My dad would say, ‘You’re going to keep going, hit the wall, and then come back. You have to measure the risk.’ So as a teen, I could sleep at a friend’s house even on school nights, but it was on me to make it to school the next day. This helped me to learn not to be scared of making my own decisions.

At the same time, making decisions can be exhausting. I would wear the same pajamas and socks each day so I didn’t have to think about choosing them. I then kept my thoughts for bigger decisions.

3. What motivates you to get you out of bed every morning?

The people I work with. Before I think about my job, I think about who I will be working with during my day.
What also gets me out of bed is the anticipation of uncovering new possibilities, and the excitement of turning potential into reality and embracing the day’s untapped opportunities.

Lastly, gratitude for the gift of a new day and the well-being to experience it.


]]>
Bringing Automation to Food Production https://www.inboundlogistics.com/articles/bringing-automation-to-food-production/ Fri, 23 Feb 2024 14:02:31 +0000 https://www.inboundlogistics.com/?post_type=articles&p=39709 John Deere and SpaceX have partnered to bring new automation advances to food production. Automation in the food supply chain is nothing new and there are many examples of how automation has driven efficiencies by saving time and keeping costs down.

Most of the existing examples are found in the middle mile—the warehouse and DCs—moving ingredients and finished consumer products toward the final demand point.

Several leading companies have taken shots at automating the final mile with drone deliveries. Amazon Air, DHL, FedEx, UPS, and Walmart are all testing the waters with drone delivery of products, but not necessarily just food. Robot final mile is also being tested in select urban areas.

But those automated bot delivery attempts have hit some speed bumps. Drone and bot delivery methods are in their infancy and may be successful in the  future, but today they can’t compete with something much better—human-driven DoorDash, Instacart, and Uber Eats last-mile food delivery.

Now comes a new alliance between two great brands—John Deere, with a long and storied 188-year history in food production, and Elon Musk, who is creating history with Starlink and everything else, it seems.

Deere has a long history in farm automation. How is this different? What’s the end game? For the first time, it brings web tone automation capabilities to rural internet dead zones, lighting up the first mile or starting point in the food supply chain. Aaron Wetzel, vice president of production for Deere, says it best: “Farmers must complete tasks within extremely short windows of time. This requires executing incredibly precise production steps while coordinating between machines and managing machine performance. Each of these areas are enhanced through connectivity, making the entire operation more efficient, effective, and profitable.”

The possibilities are exciting. Enterprise automation from low earth orbit, to rural farms both large and small, in the United States and around the world. Super accurate maps of all available arable fields.

Increased efficiency and sustainability. Better water and fertilizer management. Then there are the seasonal labor shortage challenges farms must contend with. Satellite automation can help there with all of that and more.

Imagine robotic combines, seeders, plows, fertilizers, or anything a tractor can pull. And most importantly for supply chain planning purposes, 10-ton harvesters like sentient bugs picking the fields clean and pushing advice to demand points around the globe.

The offline start point of the food supply chain is coming online.

]]>
John Deere and SpaceX have partnered to bring new automation advances to food production. Automation in the food supply chain is nothing new and there are many examples of how automation has driven efficiencies by saving time and keeping costs down.

Most of the existing examples are found in the middle mile—the warehouse and DCs—moving ingredients and finished consumer products toward the final demand point.

Several leading companies have taken shots at automating the final mile with drone deliveries. Amazon Air, DHL, FedEx, UPS, and Walmart are all testing the waters with drone delivery of products, but not necessarily just food. Robot final mile is also being tested in select urban areas.

But those automated bot delivery attempts have hit some speed bumps. Drone and bot delivery methods are in their infancy and may be successful in the  future, but today they can’t compete with something much better—human-driven DoorDash, Instacart, and Uber Eats last-mile food delivery.

Now comes a new alliance between two great brands—John Deere, with a long and storied 188-year history in food production, and Elon Musk, who is creating history with Starlink and everything else, it seems.

Deere has a long history in farm automation. How is this different? What’s the end game? For the first time, it brings web tone automation capabilities to rural internet dead zones, lighting up the first mile or starting point in the food supply chain. Aaron Wetzel, vice president of production for Deere, says it best: “Farmers must complete tasks within extremely short windows of time. This requires executing incredibly precise production steps while coordinating between machines and managing machine performance. Each of these areas are enhanced through connectivity, making the entire operation more efficient, effective, and profitable.”

The possibilities are exciting. Enterprise automation from low earth orbit, to rural farms both large and small, in the United States and around the world. Super accurate maps of all available arable fields.

Increased efficiency and sustainability. Better water and fertilizer management. Then there are the seasonal labor shortage challenges farms must contend with. Satellite automation can help there with all of that and more.

Imagine robotic combines, seeders, plows, fertilizers, or anything a tractor can pull. And most importantly for supply chain planning purposes, 10-ton harvesters like sentient bugs picking the fields clean and pushing advice to demand points around the globe.

The offline start point of the food supply chain is coming online.

]]>
Refrigerated Trucks: History, Benefits and Types https://www.inboundlogistics.com/articles/refrigerated-trucks/ Thu, 22 Feb 2024 16:07:15 +0000 https://www.inboundlogistics.com/?post_type=articles&p=39695 Refrigerated trucks, also called reefers, crucial for transporting perishable items under controlled temperatures, are the backbone of delivering fresh food and vital medications.

Remarkably, these reefers transport 70% of the food we consume, with around 500,000 units actively maintaining the cold chain across the United States.

In this blog, we will discuss the history, benefits, and types of these vehicles, along with insights into the significance of refrigerated shipping in global logistics.

History of Reefer Trucking

The advent of refrigerated trucking began in the 1920s, revolutionizing how perishable goods were transported. Initially serving the ice cream industry, the first successful mechanically refrigerated trucks emerged in 1925, invented by Frederick McKinley Jones.

By 1939, the development of automated cooling systems for shipping trailers further advanced the industry. With around 4 million refrigerated vehicles worldwide, these trucks and trailers are indispensable in maintaining the cold chain, crucial for the global economy.

Types of Reefer Trucks

refrigerated truck

Reefer trucks are essential in the transportation industry. They ensure that perishable goods reach their destination in optimal condition. Each type ensures that temperature-sensitive cargo is transported under optimal conditions.

Refrigerated Trailers

Refrigerated trailers, or reefers, are essential in cold chain logistics, transporting perishable goods such as food, flowers, and pharmaceuticals. They are often equipped with small vent doors for ventilation.

By maintaining precise temperatures, they ensure products remain fresh over vast distances. This capability is crucial for grocery stores and pharmacies, making reefers indispensable in local and global supply chains.

Cryogenic Reefers

Cryogenic reefers represent a specialized segment of refrigerated transport, utilizing liquid nitrogen or carbon dioxide to maintain temperatures down to -150°C. They’re pivotal for shipping susceptible medical supplies, including vaccines and biological samples, across great distances without compromising their integrity.

Heated Trucks

Heated trucks are tailored for goods that require warmth to prevent freezing, such as certain chemicals, cosmetics, and food products sensitive to cold. These vehicles are vital during winter, ensuring that the cargo’s temperature does not drop below a safe threshold, thus preserving the quality and efficacy of the transported goods.

Reefer Truck Features

Understanding the key features of reefer trucks is crucial for maintaining the quality and safety of perishable goods during transport.

Here are the top features of reefer trucks:

  • Temperature Monitoring System: Ensures perishable goods are kept at safe temperatures throughout the journey, which is crucial for food safety and pharmaceutical transport.
  • Reliable Vehicle Mechanics: Utilizes dependable trucks like Hino, Isuzu, and Toyota, minimizing the risk of breakdowns and ensuring timely deliveries.
  • Fiberglass Body: Offers superior insulation and structural integrity, enhancing thermal efficiency by 20-30% compared to steel, crucial for maintaining temperature control.
  • Galvanized Steel Chassis: Provides corrosion protection and durability, essential for withstanding heavy-duty tasks and adverse weather conditions.
  • Efficient Design Maximizing Space: Optimizes cargo space, allowing for more products per delivery and reducing wasted space, which is key for profitability.
  • Dependable Refrigeration Units: These are the core of reefer trucks, ensuring goods remain fresh. Brands like Carrier are preferred for their efficiency and reliability.

Refrigerated Box Trucks and Van Sizes

The range of refrigerated box trucks and vans caters to various cargo sizes and transportation needs. Some of the standard sizes are:

  • 12’-14’ Trucks: Ideal for small-scale deliveries, these trucks can carry 4-6 pallets, supporting loads between 5,000 to 7,000 lbs. Perfect for local, urban deliveries of fresh produce or pharmaceuticals.
  • 16’-20’ Trucks: This is a mid-size option capable of handling 6-8 pallets with a payload capacity of up to 13,000 lbs. It is suitable for medium-sized businesses distributing goods across regions.
  • 22’-28’ Trucks: Designed for heavy-duty hauls, these trucks accommodate 10-12 pallets and payloads between 9,000 and 15,000 lbs. They are the go-to for large-scale, long-distance deliveries of frozen foods or temperature-sensitive cargo.

Significance of Refrigerated Shipping and Logistics

Refrigeration in logistics revolutionizes the transportation of perishable items, ensuring they reach destinations fresh and safe. Reefer trucks and trailers are vital for maintaining the cold chain and crucial for food safety, pharmaceuticals, and other temperature-sensitive goods. This technology enables global trade, extending the market reach and consumer access to diverse products.

Buying New or Used Refrigerated Trucks

Evaluating the advantages of new versus used refrigerated trucks is essential when shopping for these trucks. Resources for finding these vehicles include online sales sites, specialized truck dealers, and industry trade shows.

  • New refrigerated trucks come with the latest technology and comprehensive warranties, listed on the dealer’s site and trucks for sale pages.
  • Used refrigerated trucks offer significant cost savings and are a viable choice if they have a transparent maintenance history, often found on sales pages.
  • Researching through online sales platforms, dealerships, and trade shows is crucial to making an informed decision.

When buying, it’s essential to consider the truck’s maintenance records and cargo area size, typically listed on the sale page.

Advantages and Disadvantages of Refrigeration Truck Fleets

Managing a fleet of refrigerated trucks is crucial for companies transporting perishable items, offering unique advantages and facing specific challenges.

Advantages:

  • Better shipping rates: Specialized services allow refrigerated trucks to command higher rates, improving profitability.
  • Expanded market access: These trucks transport diverse perishable items, opening up new markets.
  • Preservation of sensitive cargo: Ensures the safe transport of food, pharmaceuticals, and other temperature-sensitive products.
  • Enhanced customer satisfaction: Reliable delivery of fresh products builds customer trust and loyalty.

Disadvantages:

  • Higher initial cost: Advanced cooling systems and insulation significantly increase the purchase price.
  • Maintenance complexity: Requires specialized maintenance, increasing operational costs.
  • Insurance premiums: High value and cargo sensitivity lead to higher insurance costs.
  • Deadhead miles: Limited backhaul opportunities can result in non-revenue-generating miles.
  • Loading requirements: Strict loading protocols to maintain temperature integrity can reduce flexibility and efficiency.

Rules Governing Refrigerated Goods

Regulations governing refrigerated trucking are designed to ensure the safe transport of perishable items, adhering to health and safety standards. These rules, set by agencies like the FDA and USDA, mandate specific temperature controls and handling procedures to prevent spoilage and contamination, ensuring consumer safety.

FAQs

1. How long do refrigerated trucks last?

These trucks can last 10-15 years with proper maintenance, depending on usage and care.

2. What do refrigerated trucks do?

They transport perishable items under controlled temperatures to prevent spoilage.

3. Who manufactures refrigerated trucks?

Companies like Thermo King, Carrier, and Isuzu are leading manufacturers of refrigerated trucks.

4. Do refrigerated trucks make more money?

Yes, refrigerated trucks often command higher shipping rates due to specialized services.

Guide to Reefer Truck Logistics

In conclusion, reefer trucks are pivotal in transporting perishable items, ensuring they remain fresh from origin to destination. Whether new or used refrigerated trucks, these vehicles are essential for companies looking to maintain the cold chain.

With technological advancements and adherence to regulations, refrigerated box trucks remain a vital asset in the global logistics and supply chain industry.

]]>
Refrigerated trucks, also called reefers, crucial for transporting perishable items under controlled temperatures, are the backbone of delivering fresh food and vital medications.

Remarkably, these reefers transport 70% of the food we consume, with around 500,000 units actively maintaining the cold chain across the United States.

In this blog, we will discuss the history, benefits, and types of these vehicles, along with insights into the significance of refrigerated shipping in global logistics.

History of Reefer Trucking

The advent of refrigerated trucking began in the 1920s, revolutionizing how perishable goods were transported. Initially serving the ice cream industry, the first successful mechanically refrigerated trucks emerged in 1925, invented by Frederick McKinley Jones.

By 1939, the development of automated cooling systems for shipping trailers further advanced the industry. With around 4 million refrigerated vehicles worldwide, these trucks and trailers are indispensable in maintaining the cold chain, crucial for the global economy.

Types of Reefer Trucks

refrigerated truck

Reefer trucks are essential in the transportation industry. They ensure that perishable goods reach their destination in optimal condition. Each type ensures that temperature-sensitive cargo is transported under optimal conditions.

Refrigerated Trailers

Refrigerated trailers, or reefers, are essential in cold chain logistics, transporting perishable goods such as food, flowers, and pharmaceuticals. They are often equipped with small vent doors for ventilation.

By maintaining precise temperatures, they ensure products remain fresh over vast distances. This capability is crucial for grocery stores and pharmacies, making reefers indispensable in local and global supply chains.

Cryogenic Reefers

Cryogenic reefers represent a specialized segment of refrigerated transport, utilizing liquid nitrogen or carbon dioxide to maintain temperatures down to -150°C. They’re pivotal for shipping susceptible medical supplies, including vaccines and biological samples, across great distances without compromising their integrity.

Heated Trucks

Heated trucks are tailored for goods that require warmth to prevent freezing, such as certain chemicals, cosmetics, and food products sensitive to cold. These vehicles are vital during winter, ensuring that the cargo’s temperature does not drop below a safe threshold, thus preserving the quality and efficacy of the transported goods.

Reefer Truck Features

Understanding the key features of reefer trucks is crucial for maintaining the quality and safety of perishable goods during transport.

Here are the top features of reefer trucks:

  • Temperature Monitoring System: Ensures perishable goods are kept at safe temperatures throughout the journey, which is crucial for food safety and pharmaceutical transport.
  • Reliable Vehicle Mechanics: Utilizes dependable trucks like Hino, Isuzu, and Toyota, minimizing the risk of breakdowns and ensuring timely deliveries.
  • Fiberglass Body: Offers superior insulation and structural integrity, enhancing thermal efficiency by 20-30% compared to steel, crucial for maintaining temperature control.
  • Galvanized Steel Chassis: Provides corrosion protection and durability, essential for withstanding heavy-duty tasks and adverse weather conditions.
  • Efficient Design Maximizing Space: Optimizes cargo space, allowing for more products per delivery and reducing wasted space, which is key for profitability.
  • Dependable Refrigeration Units: These are the core of reefer trucks, ensuring goods remain fresh. Brands like Carrier are preferred for their efficiency and reliability.

Refrigerated Box Trucks and Van Sizes

The range of refrigerated box trucks and vans caters to various cargo sizes and transportation needs. Some of the standard sizes are:

  • 12’-14’ Trucks: Ideal for small-scale deliveries, these trucks can carry 4-6 pallets, supporting loads between 5,000 to 7,000 lbs. Perfect for local, urban deliveries of fresh produce or pharmaceuticals.
  • 16’-20’ Trucks: This is a mid-size option capable of handling 6-8 pallets with a payload capacity of up to 13,000 lbs. It is suitable for medium-sized businesses distributing goods across regions.
  • 22’-28’ Trucks: Designed for heavy-duty hauls, these trucks accommodate 10-12 pallets and payloads between 9,000 and 15,000 lbs. They are the go-to for large-scale, long-distance deliveries of frozen foods or temperature-sensitive cargo.

Significance of Refrigerated Shipping and Logistics

Refrigeration in logistics revolutionizes the transportation of perishable items, ensuring they reach destinations fresh and safe. Reefer trucks and trailers are vital for maintaining the cold chain and crucial for food safety, pharmaceuticals, and other temperature-sensitive goods. This technology enables global trade, extending the market reach and consumer access to diverse products.

Buying New or Used Refrigerated Trucks

Evaluating the advantages of new versus used refrigerated trucks is essential when shopping for these trucks. Resources for finding these vehicles include online sales sites, specialized truck dealers, and industry trade shows.

  • New refrigerated trucks come with the latest technology and comprehensive warranties, listed on the dealer’s site and trucks for sale pages.
  • Used refrigerated trucks offer significant cost savings and are a viable choice if they have a transparent maintenance history, often found on sales pages.
  • Researching through online sales platforms, dealerships, and trade shows is crucial to making an informed decision.

When buying, it’s essential to consider the truck’s maintenance records and cargo area size, typically listed on the sale page.

Advantages and Disadvantages of Refrigeration Truck Fleets

Managing a fleet of refrigerated trucks is crucial for companies transporting perishable items, offering unique advantages and facing specific challenges.

Advantages:

  • Better shipping rates: Specialized services allow refrigerated trucks to command higher rates, improving profitability.
  • Expanded market access: These trucks transport diverse perishable items, opening up new markets.
  • Preservation of sensitive cargo: Ensures the safe transport of food, pharmaceuticals, and other temperature-sensitive products.
  • Enhanced customer satisfaction: Reliable delivery of fresh products builds customer trust and loyalty.

Disadvantages:

  • Higher initial cost: Advanced cooling systems and insulation significantly increase the purchase price.
  • Maintenance complexity: Requires specialized maintenance, increasing operational costs.
  • Insurance premiums: High value and cargo sensitivity lead to higher insurance costs.
  • Deadhead miles: Limited backhaul opportunities can result in non-revenue-generating miles.
  • Loading requirements: Strict loading protocols to maintain temperature integrity can reduce flexibility and efficiency.

Rules Governing Refrigerated Goods

Regulations governing refrigerated trucking are designed to ensure the safe transport of perishable items, adhering to health and safety standards. These rules, set by agencies like the FDA and USDA, mandate specific temperature controls and handling procedures to prevent spoilage and contamination, ensuring consumer safety.

FAQs

1. How long do refrigerated trucks last?

These trucks can last 10-15 years with proper maintenance, depending on usage and care.

2. What do refrigerated trucks do?

They transport perishable items under controlled temperatures to prevent spoilage.

3. Who manufactures refrigerated trucks?

Companies like Thermo King, Carrier, and Isuzu are leading manufacturers of refrigerated trucks.

4. Do refrigerated trucks make more money?

Yes, refrigerated trucks often command higher shipping rates due to specialized services.

Guide to Reefer Truck Logistics

In conclusion, reefer trucks are pivotal in transporting perishable items, ensuring they remain fresh from origin to destination. Whether new or used refrigerated trucks, these vehicles are essential for companies looking to maintain the cold chain.

With technological advancements and adherence to regulations, refrigerated box trucks remain a vital asset in the global logistics and supply chain industry.

]]>
Musco & AFS Logistics: Oiling the Wheels of Change https://www.inboundlogistics.com/articles/oiling-the-wheels-of-change/ Tue, 13 Feb 2024 14:01:48 +0000 https://www.inboundlogistics.com/?post_type=articles&p=39593

THE CUSTOMER:

Musco Family Olive Co. is the country’s largest producer of black ripe olives. After more than eight decades in business, the third-generation, family-owned California company now works with more than 450 farmers and runs the first food-processing plant in the world to achieve a Level 2 Safe Quality Food ethical sourcing certification.

THE PROVIDER:

Founded in 1982, AFS Logistics, based in Shreveport, Louisiana, provides differentiated logistics services to more than 1,800 customers and employs more than 380 employees across seven locations.


Musco, which boasts eight decades of history, is the largest producer of black ripe olives in the United States. The company works with more than 450 California farmers, providing olives that are transported to four warehouses in the United States and then distributed to retailers across the country.

Musco’s olive-processing plant in California is a near-zero-waste facility and the first food-processing plant in the world to achieve a Level 2 Safe Quality Food ethical sourcing certification.

Despite its robust operations, Musco is still a relatively small, third-generation, family-run company. It doesn’t have extra resources it can easily allocate to areas outside its functional expertise—namely, olives.

Working within those constraints, Lin set several supply chain and logistics objectives: reduce manual processes, enhance the freight audit process, and boost the company’s ability to identify location and arrival times of in-transit freight so it could more proactively address customer questions and continue to provide quality service. Achieving these goals would also help Musco scale its operations and offset increasing logistics costs.

Lin kickstarted a partnership with AFS Logistics, with whom he’d worked at a previous company. Based in Shreveport, Louisiana, AFS provides logistics services, including freight audit and payment, as well as parcel, less-than-truckload, and transportation management services to more than 1,800 clients.

Revamping the Carrier Dynamic

The two companies first collaborated on a domestic managed transportation program, says Andy Dyer, president, transportation management for AFS.

At the time, Musco was working with a number of incumbent carriers. While Lin didn’t want to drop them, he wanted to make sure they were meeting Musco’s business needs, had solid safety records, and were reliable and cost-effective.

Through carrier reviews, Musco and AFS were able to confirm that the incumbent carriers would continue to provide optimal service.

In addition, AFS provided Musco with access to a range of additional carriers from across the country. As a result, Musco doubled its carrier mix.

ENSURING STRONG RELATIONSHIPS

The AFS team also guided Musco on the benefits of building relationships with carriers. Strong relationships help ensure Musco can maintain its partners not just in good times, but also when the business encounters challenges. “We stay loyal to our carriers as long as they’re within reason, while also introducing other carriers. Having that access has been huge,” Lin says.

As they accumulate data on carriers’ service levels, the partners also engage in network analysis. For instance, Musco and AFS work together to assess if it makes sense to adjust forward stocking locations, given changes in demand or customer demographics.

Musco previously lacked a coordinated process for tendering shipments. This occasionally led to double- or triple-brokering loads. And, some brokers would re-broker freight to asset-based carriers, prompting concerns about maintaining integrity in the chain of custody.

AFS now coordinates Musco’s annual freight bids. AFS only considers asset-based providers for the carrier network, reducing the likelihood of shipments being brokered multiple times. To ensure Musco can leverage cost-effective shipment options, AFS receives outbound freight shipment notices via electronic transmission. AFS can then access competitive rates from a national pool of vetted carriers.

Once a shipment is booked, the transaction automatically loads into Musco’s ERP system, streamlining the billing process and enabling shipment tracking. This reduces the amount of time previously spent on tasks like manually coordinating and managing shipments.

The managed transportation service from AFS also helps Musco adjust to market changes by providing information that helps to optimize the transportation mode for each shipment.

Branching out With Track and Trace, visibility

Before working with AFS, Musco’s lack of an effective track-and-trace system limited its visibility to shipments. Now, by using the AFS transportation management system (TMS), Musco has access to visibility on shipment location, as well as costs and carrier operating performance. This data enables Musco to address issues as they arise, so it can continue to maintain quality service.

This data also aids in reducing customer chargebacks, which Dyer says is a key capability for Musco. Retailers, and particularly grocers, can impose significant penalties when a supplier makes a mistake. Working with AFS, Musco is able to receive data from carriers on arrival and wait times that it previously could not access. With this data, Musco can challenge claims that, for instance, deliveries arrived after the scheduled delivery time.

In addition, because Musco hadn’t been rigorously auditing its less-than-truckload, truckload, or intermodal freight, management couldn’t ensure billing accuracy. And with limited visibility into freight costs and load status data, it was difficult to dispute claims on issues like on-time in-full, as well as customer deduction claims. As a result, Musco was at risk of overpaying accessorial charges.

Getting Serious About Audits

Musco Family Olive Co.’s processing plant in California is a near-zero-waste facility and the world’s first food-processing plant to achieve a Level 2 Safe Quality Food ethical sourcing certification.

To help Musco exert more control over fees and surcharges, AFS implemented an invoice audit process across all transportation modes. By providing a comprehensive review of every bill, Musco can recover many overcharges and minimize the risk of overpaying. Without this information and process, fighting fines and fees often becomes time consuming and cumbersome, Lin says.

The invoice audit process also consolidates Musco’s weekly bills into one invoice, providing timely insight into transportation costs.

Musco also worked with AFS to streamline its order fulfillment process. Now, Musco sends order details to AFS via an SQL (structured query language) download, which then feeds into the AFS TMS. AFS also provides a gateway to exchange files and messages with other external trading partners, such as carriers.

Now, when orders drop, Musco no longer needs to manually disseminate information across the company and enter it into the system, Lin says.

Over time, the relationship between Musco and AFS has expanded to include imported containers as well. On these international shipments, AFS acts as Musco’s advocate in the market.

Musco’s network of warehouses also underwent analysis as part of the new partnership with AFS. By reviewing the network’s costs and services, Musco determined it could consolidate some facilities, reducing overall inventory levels. The two companies continue to periodically tweak the network.

“Quarterly business reviews are a great opportunity to flesh out other opportunities from a service or from a cost standpoint,” Lin says. This also enables Musco to redeploy employees who’d previously been dedicated toward freight, he adds.

Enjoying Process-Driven Results

By implementing more efficient processes and technology, Musco lowered its total transportation spending by more than 10% in the first year of its partnership with AFS. It also identified additional opportunities for cost reduction, leading to another $50,000 in savings, also during the first year. Subsequent reviews have led to warehouse network optimization opportunities that Musco is currently pursuing, Lin adds.

Leveraging technology for gains

Musco also was able to double its carrier mix. And through the partnership, Musco has leveraged technology that helps it adopt a process-driven approach.

Becoming more aggressive about pursuing different shipping options is the next big frontier for Musco, Lin says. This could mean reducing the number of containers or even taking trucks off the road by shifting from a less-than-truckload to a multi-stop approach.

“We’re peeling back the onion and asking, ‘What exactly are we doing? And is there a different way versus just being efficient with what we’re doing?’” Lin explains.

Whatever strategies Musco decides to pursue, Lin says AFS is key to achieving their goals. “The AFS operations team is in constant communication with us when things are good, and they’re in front of it when there are hiccups,” he says. “We get talented people who know what they’re doing and can drive value in our decision making.”


Case Study: Growing the Grove

The Challenge

Introducing greater rigor and automation to Musco’s logistics and supply chain processes, with a goal of maintaining quality service and offsetting rising transportation costs.

The Solution

Musco partnered with AFS Logistics, leveraging the 3PL’s managed transportation service and implementing both its freight bill audit and payment and order fulfillment solutions. AFS also introduced greater structure to carrier relationships and regularly assesses the company’s logistics network.

The Results

Among other benefits, Musco lowered its transportation expense by more than 10% in the first year of the partnership, while identifying opportunities to gain an additional $50,000 in cost reduction, also during the first year of the partnership. It doubled its carrier mix and restructured roles and responsibilities to improve the value contributed by employees.

Next Steps

Evaluate different means of shipping to further cut costs and boost efficiencies.


]]>

THE CUSTOMER:

Musco Family Olive Co. is the country’s largest producer of black ripe olives. After more than eight decades in business, the third-generation, family-owned California company now works with more than 450 farmers and runs the first food-processing plant in the world to achieve a Level 2 Safe Quality Food ethical sourcing certification.

THE PROVIDER:

Founded in 1982, AFS Logistics, based in Shreveport, Louisiana, provides differentiated logistics services to more than 1,800 customers and employs more than 380 employees across seven locations.


Musco, which boasts eight decades of history, is the largest producer of black ripe olives in the United States. The company works with more than 450 California farmers, providing olives that are transported to four warehouses in the United States and then distributed to retailers across the country.

Musco’s olive-processing plant in California is a near-zero-waste facility and the first food-processing plant in the world to achieve a Level 2 Safe Quality Food ethical sourcing certification.

Despite its robust operations, Musco is still a relatively small, third-generation, family-run company. It doesn’t have extra resources it can easily allocate to areas outside its functional expertise—namely, olives.

Working within those constraints, Lin set several supply chain and logistics objectives: reduce manual processes, enhance the freight audit process, and boost the company’s ability to identify location and arrival times of in-transit freight so it could more proactively address customer questions and continue to provide quality service. Achieving these goals would also help Musco scale its operations and offset increasing logistics costs.

Lin kickstarted a partnership with AFS Logistics, with whom he’d worked at a previous company. Based in Shreveport, Louisiana, AFS provides logistics services, including freight audit and payment, as well as parcel, less-than-truckload, and transportation management services to more than 1,800 clients.

Revamping the Carrier Dynamic

The two companies first collaborated on a domestic managed transportation program, says Andy Dyer, president, transportation management for AFS.

At the time, Musco was working with a number of incumbent carriers. While Lin didn’t want to drop them, he wanted to make sure they were meeting Musco’s business needs, had solid safety records, and were reliable and cost-effective.

Through carrier reviews, Musco and AFS were able to confirm that the incumbent carriers would continue to provide optimal service.

In addition, AFS provided Musco with access to a range of additional carriers from across the country. As a result, Musco doubled its carrier mix.

ENSURING STRONG RELATIONSHIPS

The AFS team also guided Musco on the benefits of building relationships with carriers. Strong relationships help ensure Musco can maintain its partners not just in good times, but also when the business encounters challenges. “We stay loyal to our carriers as long as they’re within reason, while also introducing other carriers. Having that access has been huge,” Lin says.

As they accumulate data on carriers’ service levels, the partners also engage in network analysis. For instance, Musco and AFS work together to assess if it makes sense to adjust forward stocking locations, given changes in demand or customer demographics.

Musco previously lacked a coordinated process for tendering shipments. This occasionally led to double- or triple-brokering loads. And, some brokers would re-broker freight to asset-based carriers, prompting concerns about maintaining integrity in the chain of custody.

AFS now coordinates Musco’s annual freight bids. AFS only considers asset-based providers for the carrier network, reducing the likelihood of shipments being brokered multiple times. To ensure Musco can leverage cost-effective shipment options, AFS receives outbound freight shipment notices via electronic transmission. AFS can then access competitive rates from a national pool of vetted carriers.

Once a shipment is booked, the transaction automatically loads into Musco’s ERP system, streamlining the billing process and enabling shipment tracking. This reduces the amount of time previously spent on tasks like manually coordinating and managing shipments.

The managed transportation service from AFS also helps Musco adjust to market changes by providing information that helps to optimize the transportation mode for each shipment.

Branching out With Track and Trace, visibility

Before working with AFS, Musco’s lack of an effective track-and-trace system limited its visibility to shipments. Now, by using the AFS transportation management system (TMS), Musco has access to visibility on shipment location, as well as costs and carrier operating performance. This data enables Musco to address issues as they arise, so it can continue to maintain quality service.

This data also aids in reducing customer chargebacks, which Dyer says is a key capability for Musco. Retailers, and particularly grocers, can impose significant penalties when a supplier makes a mistake. Working with AFS, Musco is able to receive data from carriers on arrival and wait times that it previously could not access. With this data, Musco can challenge claims that, for instance, deliveries arrived after the scheduled delivery time.

In addition, because Musco hadn’t been rigorously auditing its less-than-truckload, truckload, or intermodal freight, management couldn’t ensure billing accuracy. And with limited visibility into freight costs and load status data, it was difficult to dispute claims on issues like on-time in-full, as well as customer deduction claims. As a result, Musco was at risk of overpaying accessorial charges.

Getting Serious About Audits

Musco Family Olive Co.’s processing plant in California is a near-zero-waste facility and the world’s first food-processing plant to achieve a Level 2 Safe Quality Food ethical sourcing certification.

To help Musco exert more control over fees and surcharges, AFS implemented an invoice audit process across all transportation modes. By providing a comprehensive review of every bill, Musco can recover many overcharges and minimize the risk of overpaying. Without this information and process, fighting fines and fees often becomes time consuming and cumbersome, Lin says.

The invoice audit process also consolidates Musco’s weekly bills into one invoice, providing timely insight into transportation costs.

Musco also worked with AFS to streamline its order fulfillment process. Now, Musco sends order details to AFS via an SQL (structured query language) download, which then feeds into the AFS TMS. AFS also provides a gateway to exchange files and messages with other external trading partners, such as carriers.

Now, when orders drop, Musco no longer needs to manually disseminate information across the company and enter it into the system, Lin says.

Over time, the relationship between Musco and AFS has expanded to include imported containers as well. On these international shipments, AFS acts as Musco’s advocate in the market.

Musco’s network of warehouses also underwent analysis as part of the new partnership with AFS. By reviewing the network’s costs and services, Musco determined it could consolidate some facilities, reducing overall inventory levels. The two companies continue to periodically tweak the network.

“Quarterly business reviews are a great opportunity to flesh out other opportunities from a service or from a cost standpoint,” Lin says. This also enables Musco to redeploy employees who’d previously been dedicated toward freight, he adds.

Enjoying Process-Driven Results

By implementing more efficient processes and technology, Musco lowered its total transportation spending by more than 10% in the first year of its partnership with AFS. It also identified additional opportunities for cost reduction, leading to another $50,000 in savings, also during the first year. Subsequent reviews have led to warehouse network optimization opportunities that Musco is currently pursuing, Lin adds.

Leveraging technology for gains

Musco also was able to double its carrier mix. And through the partnership, Musco has leveraged technology that helps it adopt a process-driven approach.

Becoming more aggressive about pursuing different shipping options is the next big frontier for Musco, Lin says. This could mean reducing the number of containers or even taking trucks off the road by shifting from a less-than-truckload to a multi-stop approach.

“We’re peeling back the onion and asking, ‘What exactly are we doing? And is there a different way versus just being efficient with what we’re doing?’” Lin explains.

Whatever strategies Musco decides to pursue, Lin says AFS is key to achieving their goals. “The AFS operations team is in constant communication with us when things are good, and they’re in front of it when there are hiccups,” he says. “We get talented people who know what they’re doing and can drive value in our decision making.”


Case Study: Growing the Grove

The Challenge

Introducing greater rigor and automation to Musco’s logistics and supply chain processes, with a goal of maintaining quality service and offsetting rising transportation costs.

The Solution

Musco partnered with AFS Logistics, leveraging the 3PL’s managed transportation service and implementing both its freight bill audit and payment and order fulfillment solutions. AFS also introduced greater structure to carrier relationships and regularly assesses the company’s logistics network.

The Results

Among other benefits, Musco lowered its transportation expense by more than 10% in the first year of the partnership, while identifying opportunities to gain an additional $50,000 in cost reduction, also during the first year of the partnership. It doubled its carrier mix and restructured roles and responsibilities to improve the value contributed by employees.

Next Steps

Evaluate different means of shipping to further cut costs and boost efficiencies.


]]>
The Logistics of Love https://www.inboundlogistics.com/articles/the-logistics-of-love/ Fri, 09 Feb 2024 19:11:20 +0000 https://www.inboundlogistics.com/?post_type=articles&p=39542 Whether you plan to indulge with roses and chocolates or skip the love fest entirely, Valentine’s Day is upon us. Both boon and bane for shippers around the globe, Valentine’s Day has an undeniable impact on marketing, sales, and supply chain for many industries—and the holiday wouldn’t take place at all without a Cupid’s arrow’s worth of help from the logistics and transportation sector. Behind the scenes, logistics plays a pivotal role in ensuring the seamless execution of this romantic occasion. 

Here are some statistics to help tell the love story:

Consumers Will Spend Extravagantly This Year

  • Valentine’s Day will be one of the first big commercial holidays of 2024. According to the National Retail Federation, 53% of consumers plan to celebrate.
  • Those consumers are prepared to spend an average of $185
  • The total expenditure will be a doozy, with consumer spending estimated to reach nearly $25.8 billion, which is about the same as last year.
  • Despite the steady spending trend over the last few years, 2024 will not beat 2020’s record of $27.4 billion.
  • However, spending on significant others is anticipated to reach a record $14.2 billion.

(Source: Thomas Insights)

What’s Everyone Buying for Valentine’s Day Gifts?

  • The most commonly bought gift will be the tastiest: candy, with 57% of consumers prepping to supply sweets to their romantic partners and friends.
  • In comparison, only 22% have their sights—and checkbooks—set on purchasing jewelry. Still, consumers are expected to splash out $5.5 billion for the shiny stuff.
  • A “gift of experience,” such as a night out, can be equally treasured. More than 30% of people plan to go out for a romantic holiday date.
  • Don’t forget the flowers. The iconic Valentine’s flower, the rose, is a failsafe option. That’s why more than 250 million are grown just for this holiday.
  • A heartfelt card is just as essential. More than 145 million Valentine’s Day cards are exchanged every year.
  • Spending can vary significantly per demographic, and 62% of consumers ages 25-34 plan to celebrate this year, more than any other age group.

(Source: Thomas Insights)

Chocolate Conundrum

While chocolate is always a top choice, fewer lovers may be gifting chocolate this year thanks to high cocoa prices and issues with the crop. 

  • According to according to Everstream Analytics, global cocoa prices are at a 40-50 year high due to extreme weather, disease, and geopolitical issues. Additionally, cocoa prices have jumped nearly 15 percent since November and are nearly 65 percent higher than they were a year ago. 
  • Cocoa futures are also higher than they’ve been in nearly 50 years.
  • According to the USDA, the price of chocolate is rising three times faster than the rate of broader inflation. 

Flower Power

You can’t go wrong giving a gorgeous bouquet of flowers as a Valentine’s gift. But flowers may put the biggest strain on the Valentine supply chain. Getting flowers and other goods on the shelves and in the customer’s hands-on time for February 14 is essential for keeping customers happy and increasing revenue in what is traditionally a slow quarter. And because flowers are fragile, require refrigeration, and are typically transported from afar (the largest exporters of fresh-cut flowers into the U.S. from Latin America are Columbia and Ecuador), it’s not an easy move. 

  • More than 250 million roses are grown alone for the holiday, and suppliers have the precarious task of ensuring the precious buds arrive at retailers and flower shops on time.
  • According to the USDA, 97% of roses and carnations are transported on air freighters between South American and Miami every year. 
  • For the first six weeks of 2023 about 500 temperature-controlled truckloads left Miami every day, moving those flowers across the nation. 
  • According to analytics platform Xeneta, this high demand impacts air cargo rates: In the week ending February 4, the air cargo spot rate from Columbia and Ecuador to Miami increased by 37 percent to $1.45 per kg compared to three weeks prior before the start of the peak season. Air cargo chargeable weight soared 128 percent in the three weeks ending on February 4, while capacity increased by 81 percent in the same period. 

So, while you’re snuggling with your sweetheart on the most romantic day of the year, don’t forget to be grateful for the inner workings of the global supply chain!

 

Valentine In Action: See how one chocolatier tackles its peak season orders and ongoing e-commerce demand through a 3PL partnership.

]]>
Whether you plan to indulge with roses and chocolates or skip the love fest entirely, Valentine’s Day is upon us. Both boon and bane for shippers around the globe, Valentine’s Day has an undeniable impact on marketing, sales, and supply chain for many industries—and the holiday wouldn’t take place at all without a Cupid’s arrow’s worth of help from the logistics and transportation sector. Behind the scenes, logistics plays a pivotal role in ensuring the seamless execution of this romantic occasion. 

Here are some statistics to help tell the love story:

Consumers Will Spend Extravagantly This Year

  • Valentine’s Day will be one of the first big commercial holidays of 2024. According to the National Retail Federation, 53% of consumers plan to celebrate.
  • Those consumers are prepared to spend an average of $185
  • The total expenditure will be a doozy, with consumer spending estimated to reach nearly $25.8 billion, which is about the same as last year.
  • Despite the steady spending trend over the last few years, 2024 will not beat 2020’s record of $27.4 billion.
  • However, spending on significant others is anticipated to reach a record $14.2 billion.

(Source: Thomas Insights)

What’s Everyone Buying for Valentine’s Day Gifts?

  • The most commonly bought gift will be the tastiest: candy, with 57% of consumers prepping to supply sweets to their romantic partners and friends.
  • In comparison, only 22% have their sights—and checkbooks—set on purchasing jewelry. Still, consumers are expected to splash out $5.5 billion for the shiny stuff.
  • A “gift of experience,” such as a night out, can be equally treasured. More than 30% of people plan to go out for a romantic holiday date.
  • Don’t forget the flowers. The iconic Valentine’s flower, the rose, is a failsafe option. That’s why more than 250 million are grown just for this holiday.
  • A heartfelt card is just as essential. More than 145 million Valentine’s Day cards are exchanged every year.
  • Spending can vary significantly per demographic, and 62% of consumers ages 25-34 plan to celebrate this year, more than any other age group.

(Source: Thomas Insights)

Chocolate Conundrum

While chocolate is always a top choice, fewer lovers may be gifting chocolate this year thanks to high cocoa prices and issues with the crop. 

  • According to according to Everstream Analytics, global cocoa prices are at a 40-50 year high due to extreme weather, disease, and geopolitical issues. Additionally, cocoa prices have jumped nearly 15 percent since November and are nearly 65 percent higher than they were a year ago. 
  • Cocoa futures are also higher than they’ve been in nearly 50 years.
  • According to the USDA, the price of chocolate is rising three times faster than the rate of broader inflation. 

Flower Power

You can’t go wrong giving a gorgeous bouquet of flowers as a Valentine’s gift. But flowers may put the biggest strain on the Valentine supply chain. Getting flowers and other goods on the shelves and in the customer’s hands-on time for February 14 is essential for keeping customers happy and increasing revenue in what is traditionally a slow quarter. And because flowers are fragile, require refrigeration, and are typically transported from afar (the largest exporters of fresh-cut flowers into the U.S. from Latin America are Columbia and Ecuador), it’s not an easy move. 

  • More than 250 million roses are grown alone for the holiday, and suppliers have the precarious task of ensuring the precious buds arrive at retailers and flower shops on time.
  • According to the USDA, 97% of roses and carnations are transported on air freighters between South American and Miami every year. 
  • For the first six weeks of 2023 about 500 temperature-controlled truckloads left Miami every day, moving those flowers across the nation. 
  • According to analytics platform Xeneta, this high demand impacts air cargo rates: In the week ending February 4, the air cargo spot rate from Columbia and Ecuador to Miami increased by 37 percent to $1.45 per kg compared to three weeks prior before the start of the peak season. Air cargo chargeable weight soared 128 percent in the three weeks ending on February 4, while capacity increased by 81 percent in the same period. 

So, while you’re snuggling with your sweetheart on the most romantic day of the year, don’t forget to be grateful for the inner workings of the global supply chain!

 

Valentine In Action: See how one chocolatier tackles its peak season orders and ongoing e-commerce demand through a 3PL partnership.

]]>
5 Ways AI-Powered Logistics Maximize Eco Savings https://www.inboundlogistics.com/articles/5-ways-ai-powered-logistics-maximize-eco-savings/ Tue, 30 Jan 2024 14:49:20 +0000 https://www.inboundlogistics.com/?post_type=articles&p=39204 The environmental toll shipping inefficiencies cause is proving costly. Companies are now setting net-zero carbon goals to achieve and maintain sustainable business practices while minimizing their environmental impact.

To do this, companies are turning to artificial intelligence (AI). Here are five ways logistics providers can leverage AI to operate supply chains sustainably and cost-effectively.

1. Logistics planning. AI can process vast amounts of data to optimize the movement of goods. Food shippers and logistics providers are now applying machine learning algorithms to accurately predict shipment ETAs across all transportation modes. For ocean container shipments, AI systems can accurately forecast weather conditions and diagnose the impact of disruptive events along each shipment’s route.
Due to multi-terminal stops and widely variable transit times, predicting arrival times for less-than-truckload (LTL) shipments has previously been a challenge. With AI, shippers and logistics providers can predict LTL shipment delivery times within minutes.

2. Mode management. According to the Massachusetts Institute of Technology (MIT), over-the-road hauling can emit over 100 times as much CO2 as ships carrying the same freight amount. Data from the EPA shows moving cargo by rail rather than truck lowers GHG emissions by up to an average of 75%.

Leveraging AI for sustainable network optimization makes it possible to analyze vast internal and external data to create multimodal transportation solutions. Furthermore, introducing sustainable alternatives can cut a shipment’s transportation costs by around 60%.

3. Shipment consolidation. Milk-run shipments can prevent stockouts; however, shipments may occur before truly needed, run partially empty or require additional material handling and equipment that severely strains sustainability.

With AI, food shippers and their logistics partners can determine the best cadence for cargo that balances service requirements with sustainability. Doing so reduces the need for additional over-the-road truck movements that generate harmful emissions.

4. SmartWay selections. The SmartWay program tracks, documents, and shares information about fuel usage, freight emissions, and environmental risks across the supply chain. Freight shippers, carriers, and logistics companies voluntarily partner with the EPA to measure and improve operations to reduce their ecological footprint.

With AI, logistics partners can prioritize top-ranked fleets using SmartWay data without manually filtering through thousands of transportation providers. Additionally, AI can examine data retrospectively to make future recommendations, advancing sustainability goals with minimal supply chain disruptions.

5. Working in the warehouse. Estimates show that 90% of warehouses primarily rely on manual processes, creating space and energy inefficiencies. By turning to technology, these companies can increase throughput while decreasing the environmental footprint.

Innovations like dynamic slotting use AI algorithms to decrease inventory space. AI improves inventory management by predicting demand, tracking current inventory and optimizing stocking levels. AI can suggest an appropriate box size based on an order’s dimensions to minimize packaging waste.

AI will continue to rapidly evolve and change the landscape of industries across the board. At the end of the day, a successful business is people-centric and technology-enabled.

To learn about the full scope of Jarrett’s AI strategies, visit www.gojarrett.com.

]]>
The environmental toll shipping inefficiencies cause is proving costly. Companies are now setting net-zero carbon goals to achieve and maintain sustainable business practices while minimizing their environmental impact.

To do this, companies are turning to artificial intelligence (AI). Here are five ways logistics providers can leverage AI to operate supply chains sustainably and cost-effectively.

1. Logistics planning. AI can process vast amounts of data to optimize the movement of goods. Food shippers and logistics providers are now applying machine learning algorithms to accurately predict shipment ETAs across all transportation modes. For ocean container shipments, AI systems can accurately forecast weather conditions and diagnose the impact of disruptive events along each shipment’s route.
Due to multi-terminal stops and widely variable transit times, predicting arrival times for less-than-truckload (LTL) shipments has previously been a challenge. With AI, shippers and logistics providers can predict LTL shipment delivery times within minutes.

2. Mode management. According to the Massachusetts Institute of Technology (MIT), over-the-road hauling can emit over 100 times as much CO2 as ships carrying the same freight amount. Data from the EPA shows moving cargo by rail rather than truck lowers GHG emissions by up to an average of 75%.

Leveraging AI for sustainable network optimization makes it possible to analyze vast internal and external data to create multimodal transportation solutions. Furthermore, introducing sustainable alternatives can cut a shipment’s transportation costs by around 60%.

3. Shipment consolidation. Milk-run shipments can prevent stockouts; however, shipments may occur before truly needed, run partially empty or require additional material handling and equipment that severely strains sustainability.

With AI, food shippers and their logistics partners can determine the best cadence for cargo that balances service requirements with sustainability. Doing so reduces the need for additional over-the-road truck movements that generate harmful emissions.

4. SmartWay selections. The SmartWay program tracks, documents, and shares information about fuel usage, freight emissions, and environmental risks across the supply chain. Freight shippers, carriers, and logistics companies voluntarily partner with the EPA to measure and improve operations to reduce their ecological footprint.

With AI, logistics partners can prioritize top-ranked fleets using SmartWay data without manually filtering through thousands of transportation providers. Additionally, AI can examine data retrospectively to make future recommendations, advancing sustainability goals with minimal supply chain disruptions.

5. Working in the warehouse. Estimates show that 90% of warehouses primarily rely on manual processes, creating space and energy inefficiencies. By turning to technology, these companies can increase throughput while decreasing the environmental footprint.

Innovations like dynamic slotting use AI algorithms to decrease inventory space. AI improves inventory management by predicting demand, tracking current inventory and optimizing stocking levels. AI can suggest an appropriate box size based on an order’s dimensions to minimize packaging waste.

AI will continue to rapidly evolve and change the landscape of industries across the board. At the end of the day, a successful business is people-centric and technology-enabled.

To learn about the full scope of Jarrett’s AI strategies, visit www.gojarrett.com.

]]>
Craving a Sweet 3PL Partnership https://www.inboundlogistics.com/articles/craving-a-sweet-3pl-partnership/ Wed, 24 Jan 2024 14:41:59 +0000 https://www.inboundlogistics.com/?post_type=articles&p=39188

THE CUSTOMER

Bon Bon Bon, a 10-year-old artisan chocolate company with stores in Michigan and an ecommerce arm, creates bonbons with clever flavor combinations and eye-catching designs.

THE PROVIDER

Evans Distribution Systems is a full-service third-party logistics provider that offers warehousing, fulfillment, value-added, transportation, and staffing solutions.


From its start in the back room of a diner about a decade ago, Detroit-based Bon Bon Bon, which offers “the goodest goodies and sweetest sweets,” now operates a manufactory and four brick-and-mortar locations, has a presence at local markets, and ships across the United States and internationally.

Yet even as Bon Bon Bon has grown, its internal shipping department remained small—no more than a handful of employees. So, Bon Bon Bon partnered with Evans Distribution Systems, a third-party logistics (3PL) provider, also based in Michigan.

“We never would have been able to offer shipping solutions at the level of expertise that Evans has been able to,” says Alessandra Rodriguez, head of marketing for Bon Bon Bon.

A Life of Chocolate

At 19 years old, Alexandra Clark, Bon Bon Bon’s founder and head chocolatier, decided to dedicate her life to chocolate. With $32,000 she received from a taxi accident—it occurred as she was leaving a chocolate show—she opened a chocolate shop near Bon Bon Bon’s current manufactory.

Initially, the shop was open only on Saturday. Fast forward to 2024, and the company has multiple locations and is in action seven days a week, with operations significantly ramping up between Thanksgiving and Valentines Day.

Before Bon Bon Bon connected with Evans, a “small and mighty team of employees,” according to Rodriguez, filled and packaged online orders, among other responsibilities.

Along with the challenges of managing the growing volume of orders were the challenges of the chocolate itself, which is perishable and requires a temperature-controlled environment. What’s more, each order can be customized, including with a handwritten note and a choice of packaging tape designs.

Finding a Partner

In 2023, Bon Bon Bon began its partnership with Evans Distribution Systems. The team at Bon Bon Bon knew of Evans in part from its work with vegan cosmetics and skincare brand, The Lip Bar (TLB), whose flagship store is also in Detroit.

A 90-year-old company, Evans operates more than three million square feet of warehousing space in Michigan. Bon Bon Bon uses Evans’ fulfillment, shipping, logistics, warehousing, and product storage services.

Evans’ handling of these functions enables Bon Bon Bon to focus on its core competency—making great chocolate—as well as increasing sales and expanding to other markets, says Leslie Delekta, director of customer solutions with Evans.

Evans direct-ships online and corporate orders. To ensure a temperature-controlled environment, Evans has located a refrigerated container within its warehouse. The 3PL is able to add staff to the Bon Bon Bon account to manage the holiday increase in sales. As volume tapers off, Evans can shift those employees to other clients.

Bon Bon Bon and Evans are electronically connected through Shopify, which transmits most orders to Evans; currently, corporate and other large orders are handled separately. Once Evans receives the order within its warehouse management system (WMS), employees kit the product and place it into custom boxes, says Rich Huziak, senior operations manager with Evans.

When developing customized solutions for Evans’ clients, verbal explanations typically go only so far, Huziak says. To gain a thorough understanding of Bon Bon Bon’s operations, the Evans team toured its manufacturing facility and stores. Evans then built a solution that considered the processes already in place.

For instance, when Bon Bon Bon delivers inventory to Evans, it’s in trays of single bon bons. These are recorded in the Evans WMS. Evans developed a kitting process so employees know which chocolates to pull for each order.

Customized Fulfillment

Evans helps manage Bon Bon Bon’s fulfillment process, which is challenging because the chocolate is perishable and requires a temperature-controlled environment. The 3PL also helps with additional labor when orders rise dramatically between Thanksgiving and Valentine’s Day.

Many packages are finished with colorful wrapping tape; customers can choose from several designs. They also can request a handwritten note to accompany their orders. The WMS lets Evans employees know which packages will include these embellishments, as well the card, message, and tape to include. The employee who packs the box also initials and dates it before sending it on its way.

Depending on the destination and time of year, the order may be packed in ice. “It’s a very custom experience,” Delekta says.

Handing responsibility for packing customers’ orders and creating handwritten notes means entrusting another company to accurately represent the Bon Bon Bon brand. “It’s a big thing,” Rodriguez says.

When Bon Bon Bon receives very large orders—say, from corporate clients—it currently emails the information to Evans. This allows Bon Bon Bon to designate specific products for these customized orders.

Evans receives Bon Bon Bon inventory anywhere from several times each week, to almost daily during the busiest season. Because Bon Bon Bon’s products are perishable and custom-made, it’s not feasible to stockpile inventory in advance.

Getting up and running with the Evans team was fairly rapid, Rodriguez says. The longest piece of the puzzle was redesigning the website and creating new stock-keeping units. “It was almost as though we created a new store,” Rodriguez says.

The benefit? Setting up a new website and new SKUs from the beginning of the partnership minimized the need for Bon Bon Bon to retroactively adjust any information.

Once the new website was complete, testing took a couple of months. The teams mapped out multiple scenarios so everyone could be prepared for any type of order.

For instance, team members needed to learn what an order would look like, operationally, if it included multiples of one item, plus an item from another category or a gift card.

Similarly, if a customer ordered a box of bonbons with one tape design and another box with a different tape design, Bon Bon Bon and Evans needed to understand how the person packing the order would know which design went with which box. “We were able to work together on that,” Rodriguez says. “It was a collaborative effort.”

The Evans team needed to make sure the processes were functional, while also taking care that Bon Bon Bon’s website would be customer-friendly and provide a strong user experience. Through their combined efforts, the companies ultimately improved both the customer experience and internal operations.

More Efficient Order Processing

For example, orders can be filled more quickly than was possible previously, even with Bon Bon Bon’s dedicated internal team. One reason is Evans’ technology, which offers a step-by-step guide for processing orders. The systems in place for the fulfillment and packing teams make it easy for them to work efficiently, as they don’t have to figure out how best to process each order before they begin filling them.

This is key, as the faster rate at which orders are filled means customers have a longer time to enjoy their handmade bon bons, Rodriguez says.

The speedier processes are especially valuable with larger orders. Previously, handling a very large order could delay other orders. Now, Bon Bon Bon is able to manage all sizes of orders at the same time. Being able to accept more large orders, instead of being constrained by operational limitations “is largely beneficial,” Rodriguez says.

Tackling New Challenges

As soon as the two companies were up and running with regular orders, they began working on new opportunities, Rodriguez says. One was developing an effective pre-sale system. This allows customers to, for instance, place Valentine’s Day orders in January, but delay shipment until early February.

Later in 2024, Bon Bon Bon plans to release two new extensions to its website. One is a “box builder.” This will allow customers to select exactly which bon bons they want in their box. Bon Bon Bon actually offered this capability years ago, but it didn’t have the back-end operations ironed out. Now, through its partnership with Evans, Bon Bon Bon will be able to offer this feature to its customers, while also being confident it will work operationally.

Building Large and Customized Orders

Bon Bon Bon and Evans also are working on a large-order builder. Customers placing large—often custom—orders will be able to complete their transactions with several clicks.

If Bon Bon Bon was working with any other company, management probably would be more nervous about embarking on multiple new initiatives at the same time. “But Evans has already proven to us that they can handle it and that they’re willing to figure out how we can offer these things,” Rodriguez says.

The Bon Bon Bon team hails from across the city, as well as the world, and they are united in their belief that good people deserve good chocolate, Rodriguez says. “The Evans team has joined our efforts in accomplishing this mission in the most genuine and collaborative way,” she adds.


Casebook Study: How Sweet It Is

The Challenges

Finding a way to effectively and efficiently manage order fulfillment and shipping as Bon Bon Bon grew to encompass multiple locations and national and international shipments, while still creating quality chocolate.

The Solution

Partner with Evans Distribution to handle fulfillment, shipping, logistics, warehousing, and product storage.

The Results

A significant reduction in order processing time and greater ability to handle large orders.

Next Steps

Working on extensions to Bon Bon Bon’s website, including a pre-order feature and the ability to enable customers to create large orders with several clicks.


]]>

THE CUSTOMER

Bon Bon Bon, a 10-year-old artisan chocolate company with stores in Michigan and an ecommerce arm, creates bonbons with clever flavor combinations and eye-catching designs.

THE PROVIDER

Evans Distribution Systems is a full-service third-party logistics provider that offers warehousing, fulfillment, value-added, transportation, and staffing solutions.


From its start in the back room of a diner about a decade ago, Detroit-based Bon Bon Bon, which offers “the goodest goodies and sweetest sweets,” now operates a manufactory and four brick-and-mortar locations, has a presence at local markets, and ships across the United States and internationally.

Yet even as Bon Bon Bon has grown, its internal shipping department remained small—no more than a handful of employees. So, Bon Bon Bon partnered with Evans Distribution Systems, a third-party logistics (3PL) provider, also based in Michigan.

“We never would have been able to offer shipping solutions at the level of expertise that Evans has been able to,” says Alessandra Rodriguez, head of marketing for Bon Bon Bon.

A Life of Chocolate

At 19 years old, Alexandra Clark, Bon Bon Bon’s founder and head chocolatier, decided to dedicate her life to chocolate. With $32,000 she received from a taxi accident—it occurred as she was leaving a chocolate show—she opened a chocolate shop near Bon Bon Bon’s current manufactory.

Initially, the shop was open only on Saturday. Fast forward to 2024, and the company has multiple locations and is in action seven days a week, with operations significantly ramping up between Thanksgiving and Valentines Day.

Before Bon Bon Bon connected with Evans, a “small and mighty team of employees,” according to Rodriguez, filled and packaged online orders, among other responsibilities.

Along with the challenges of managing the growing volume of orders were the challenges of the chocolate itself, which is perishable and requires a temperature-controlled environment. What’s more, each order can be customized, including with a handwritten note and a choice of packaging tape designs.

Finding a Partner

In 2023, Bon Bon Bon began its partnership with Evans Distribution Systems. The team at Bon Bon Bon knew of Evans in part from its work with vegan cosmetics and skincare brand, The Lip Bar (TLB), whose flagship store is also in Detroit.

A 90-year-old company, Evans operates more than three million square feet of warehousing space in Michigan. Bon Bon Bon uses Evans’ fulfillment, shipping, logistics, warehousing, and product storage services.

Evans’ handling of these functions enables Bon Bon Bon to focus on its core competency—making great chocolate—as well as increasing sales and expanding to other markets, says Leslie Delekta, director of customer solutions with Evans.

Evans direct-ships online and corporate orders. To ensure a temperature-controlled environment, Evans has located a refrigerated container within its warehouse. The 3PL is able to add staff to the Bon Bon Bon account to manage the holiday increase in sales. As volume tapers off, Evans can shift those employees to other clients.

Bon Bon Bon and Evans are electronically connected through Shopify, which transmits most orders to Evans; currently, corporate and other large orders are handled separately. Once Evans receives the order within its warehouse management system (WMS), employees kit the product and place it into custom boxes, says Rich Huziak, senior operations manager with Evans.

When developing customized solutions for Evans’ clients, verbal explanations typically go only so far, Huziak says. To gain a thorough understanding of Bon Bon Bon’s operations, the Evans team toured its manufacturing facility and stores. Evans then built a solution that considered the processes already in place.

For instance, when Bon Bon Bon delivers inventory to Evans, it’s in trays of single bon bons. These are recorded in the Evans WMS. Evans developed a kitting process so employees know which chocolates to pull for each order.

Customized Fulfillment

Evans helps manage Bon Bon Bon’s fulfillment process, which is challenging because the chocolate is perishable and requires a temperature-controlled environment. The 3PL also helps with additional labor when orders rise dramatically between Thanksgiving and Valentine’s Day.

Many packages are finished with colorful wrapping tape; customers can choose from several designs. They also can request a handwritten note to accompany their orders. The WMS lets Evans employees know which packages will include these embellishments, as well the card, message, and tape to include. The employee who packs the box also initials and dates it before sending it on its way.

Depending on the destination and time of year, the order may be packed in ice. “It’s a very custom experience,” Delekta says.

Handing responsibility for packing customers’ orders and creating handwritten notes means entrusting another company to accurately represent the Bon Bon Bon brand. “It’s a big thing,” Rodriguez says.

When Bon Bon Bon receives very large orders—say, from corporate clients—it currently emails the information to Evans. This allows Bon Bon Bon to designate specific products for these customized orders.

Evans receives Bon Bon Bon inventory anywhere from several times each week, to almost daily during the busiest season. Because Bon Bon Bon’s products are perishable and custom-made, it’s not feasible to stockpile inventory in advance.

Getting up and running with the Evans team was fairly rapid, Rodriguez says. The longest piece of the puzzle was redesigning the website and creating new stock-keeping units. “It was almost as though we created a new store,” Rodriguez says.

The benefit? Setting up a new website and new SKUs from the beginning of the partnership minimized the need for Bon Bon Bon to retroactively adjust any information.

Once the new website was complete, testing took a couple of months. The teams mapped out multiple scenarios so everyone could be prepared for any type of order.

For instance, team members needed to learn what an order would look like, operationally, if it included multiples of one item, plus an item from another category or a gift card.

Similarly, if a customer ordered a box of bonbons with one tape design and another box with a different tape design, Bon Bon Bon and Evans needed to understand how the person packing the order would know which design went with which box. “We were able to work together on that,” Rodriguez says. “It was a collaborative effort.”

The Evans team needed to make sure the processes were functional, while also taking care that Bon Bon Bon’s website would be customer-friendly and provide a strong user experience. Through their combined efforts, the companies ultimately improved both the customer experience and internal operations.

More Efficient Order Processing

For example, orders can be filled more quickly than was possible previously, even with Bon Bon Bon’s dedicated internal team. One reason is Evans’ technology, which offers a step-by-step guide for processing orders. The systems in place for the fulfillment and packing teams make it easy for them to work efficiently, as they don’t have to figure out how best to process each order before they begin filling them.

This is key, as the faster rate at which orders are filled means customers have a longer time to enjoy their handmade bon bons, Rodriguez says.

The speedier processes are especially valuable with larger orders. Previously, handling a very large order could delay other orders. Now, Bon Bon Bon is able to manage all sizes of orders at the same time. Being able to accept more large orders, instead of being constrained by operational limitations “is largely beneficial,” Rodriguez says.

Tackling New Challenges

As soon as the two companies were up and running with regular orders, they began working on new opportunities, Rodriguez says. One was developing an effective pre-sale system. This allows customers to, for instance, place Valentine’s Day orders in January, but delay shipment until early February.

Later in 2024, Bon Bon Bon plans to release two new extensions to its website. One is a “box builder.” This will allow customers to select exactly which bon bons they want in their box. Bon Bon Bon actually offered this capability years ago, but it didn’t have the back-end operations ironed out. Now, through its partnership with Evans, Bon Bon Bon will be able to offer this feature to its customers, while also being confident it will work operationally.

Building Large and Customized Orders

Bon Bon Bon and Evans also are working on a large-order builder. Customers placing large—often custom—orders will be able to complete their transactions with several clicks.

If Bon Bon Bon was working with any other company, management probably would be more nervous about embarking on multiple new initiatives at the same time. “But Evans has already proven to us that they can handle it and that they’re willing to figure out how we can offer these things,” Rodriguez says.

The Bon Bon Bon team hails from across the city, as well as the world, and they are united in their belief that good people deserve good chocolate, Rodriguez says. “The Evans team has joined our efforts in accomplishing this mission in the most genuine and collaborative way,” she adds.


Casebook Study: How Sweet It Is

The Challenges

Finding a way to effectively and efficiently manage order fulfillment and shipping as Bon Bon Bon grew to encompass multiple locations and national and international shipments, while still creating quality chocolate.

The Solution

Partner with Evans Distribution to handle fulfillment, shipping, logistics, warehousing, and product storage.

The Results

A significant reduction in order processing time and greater ability to handle large orders.

Next Steps

Working on extensions to Bon Bon Bon’s website, including a pre-order feature and the ability to enable customers to create large orders with several clicks.


]]>
Food Logistics: Serving CX on a Silver Platter https://www.inboundlogistics.com/articles/food-logistics-serving-cx-on-a-silver-platter/ Fri, 08 Dec 2023 12:59:01 +0000 https://www.inboundlogistics.com/?post_type=articles&p=38784 Food distribution and transportation companies are helping retail, restaurant, and other companies boost performance and meet customers’ changing needs. These are critical capabilities, given the industry’s competitive and time-sensitive nature.

One example is the partnership between The Convenience Group (TCG) and its distributor Harbor Wholesale.

During the pandemic, food distributor Harbor Wholesale served its retail customers such as The Convenience Group by offering flexible product selections and solutions.

The convenience store industry used to be perceived as purveyors of “gas, smokes, and cokes.” No longer. Many stores are raising the bar and providing a range of quality groceries and food products, says Don Rhoads. He heads a chain of nine—soon to be 10—TCG superettes in Washington state that range from 3,000 to 5,000 square feet, and offer sandwiches, produce, groceries, and other items.

Like many other firms during the pandemic, TCG struggled to access supplies. “We had to pivot,” Rhoads says. Fortunately, Harbor Wholesale was able to provide flexible product selections and substitutions.

Also during this time, TCG accelerated its technology implementation. Technology tools from Harbor Hub, a program of Harbor Wholesale, now play major roles in several areas. For instance, a unified inventory and order management program provides Rhoads with a detailed breakdown of different products’ performance. “These tools provide a new and innovative way to look at our business,” he says.

TCG also leverages a system from Harbor Hub that suggests alternatives when products are out of stock.

“In food service, there are no rain checks,” says Clyde Coleman, senior director of operations with food service distributor PFG.

TCG operates and franchises neighborhood convenience stores throughout Washington and Oregon. It leverages technology from its distributor for inventory and order management.

Moreover, the business environment remains challenging. Distribution often is a “penny-profit business,” explains Justin Craigwell-Graham, managing director with L.E.K. Consulting.

Like many companies today, food distributors are confronting labor pressures, a truck driver shortage, and inflation. That’s prompting many to try to rein in costs, through steps such as competitively sourcing key products, better managing damaged goods, and addressing logistics and operations inefficiencies.

Some private equity firms are working to build national or supra-regional brands in the food distribution sector. Their goal is to gain efficiencies in several areas, including purchasing and routing configurations.

Also driving efficiencies is technology, which has become “table stakes” in the industry, Craigwell-Graham says. To remain competitive, distributors need at least a basic online ordering system, some digitization of their point-of-sale system, and an automated route or fleet optimization tool.

Even as food distributors and transportation providers focus on costs and technology, providing superior service and building strong client relationships remain critical. This requires trust, transparency, and an understanding of each other’s businesses.

Here are a few case studies of companies doing just that.

Doing Good for Customers and the Planet

Moving SGSY’s temperature-controlled products to markets across the country can be challenging. The company relies on transportation partners that provide excellent service and help meet customer needs.

The mission of So Good So You (SGSY), a manufacturer of premium, probiotic plant-based functional beverages, is to deliver “good to bodies while also doing good for the planet,” says Angel Cisneros, director of distribution and logistics with the B-Corp certified company. As one example, renewable energy powers its zero-waste facilities.

In line with its mission, SGSY strives to “deliver what our customers want, when they want it, and at the best possible price,” Cisneros says. That can be a challenging endeavor when moving temperature-controlled products via less-than-truckload (LTL) shipments to markets across the country.

SGSY relies on transportation partners that understand its goals and share its vision of providing excellent service through on-time arrivals, timely communication, technology, and the flexibility needed to meet changing customer needs.

For about one year, So Good So You has been working with Bay & Bay Transportation, a family-owned trucking and logistics company. “Bay & Bay strives to provide a personal level of service geared to solve our transportation challenges,” Cisneros says.

Among other services, Bay & Bay provides dry and refrigerated full truckload and LTL transportation to SGSY’s major retailers, says Levi Hall, account manager with Bay & Bay.

At the start of their partnership, Bay & Bay took over a single lane. SGSY had been working with another provider that wasn’t able to consistently meet on-time delivery metrics required by a big-box client, straining the relationship and leading to substantial fines, Hall says. Since Bay & Bay assumed control of the lane, it has consistently maintained a flawless on-time delivery record.

Bay & Bay also worked closely with SGSY’s transportation management system (TMS) service provider to enhance electronic communication through EDI connections. This reduced the labor hours needed to maintain proper information in the company’s system. The initiative also standardized data and procedures.

“Being a continuously growing company means having to react to the changes and demands our growth creates,” Cisneros says. “Bay & Bay’s ready-to-go mentality has been key to ensure we deliver what our customers want when they want it.”

Leveraging a Rolling Warehouse

Bay & Bay provides dry and refrigerated full truckload and LTL transportation to SGSY’s major retailers.

Bartolotta LLC buys fresh produce, typically from California or Arizona, and transports it to the Northeastern U.S. About 15% of shipments head to retail companies, 25% to processors, and 60% to wholesalers, says Kevin Bartolotta, president.

The company partners with Radiant Global Logistics for several services, including its ability to provide rail cars that can act as “rolling warehouses,” for purchases that haven’t yet been re-sold, Bartolotta says.

While the ability to use trains for rolling inventory is a small piece of Radiant’s services, it can be an important one. “Produce is a commodities market, and Bartolotta often can read the market and forecast when prices will rise,” says Debra Sanford, Radiant’s vice president, sales and pricing.

Bartolotta can make a purchase, locking in a price. Within several days, the same load might be sold for significantly more.

Rail, although typically not as fast as over-the-road travel, is less likely to be impacted by weather delays, and the rates and schedules tend to be more stable, Bartolotta says. In addition, it’s possible to track shipments and monitor temperatures and other features.

“Radiant helped me expand my business by offering perks not available with over-the-road shipments,” Bartolotta says.

Streamlining LTL

As one of Performance Food Group’s approved LTL carriers, Old Dominion Freight Line provides key benefits such as delivering on time, coordinating delivery schedules, and transporting specialty products on demand.

For the past 13 years, PFG, a food service distributor, has used Old Dominion Freight Lines (ODFL) for LTL services and occasional final-mile deliveries. “ODFL has been instrumental in helping PFG streamline LTL services,” Coleman says.

Old Dominion provides direct LTL service to more than 99% of the country. As an approved LTL provider for PFG, ODFL offers several key services. One is ensuring products land at each PFG location consistently and reliably. Another is coordinating delivery schedules between PFG’s distribution center or inbound receiving manager and ODFL’s local service center operations team.

The benefits to PFG and its vendor base include reduced yard congestion and labor allocation, as well as an improved ability to serve customers. Many PFG vendors provide specialty products that typically aren’t inventoried in large quantities. Old Dominion can transport and deliver these on demand, says Ed Garner, director of national accounts for ODFL.

ODFL also provides visibility through several integrated systems. “From shipment pickup to final delivery, these data points are shared with both the shipper and the consignee via multiple interfaces including EDI, API, or other real-time methods,” Garner says.

“As we have expanded over the years, ODFL has kept up with our growing demands and has been able to maintain service levels,” Coleman says.


An Appetite for Technology

A tactical routing solution and big data portal provide visibility into Baldor’s delivery routes.

Technology impacts many industries, including the food distribution sector. Consider DSW Distribution, which operates more than 6.5 million cubic feet of warehouse space in Southern California that is temperature-controlled, organic-certified, and licensed for alcoholic beverages and pharmaceuticals, among other features.

The company’s initiative to convert its Food Safety Manual System (FSMS) from paper to paperless, was an “intense exercise,” says Brad Thayer, president and chief executive officer of DSW. The paper-based FSMS had taken decades to develop and consumed a roomful of binders.

To accomplish this shift, DSW leveraged a food safety management software system from Certdox. The new FSMS is now securely live on phones, tablets, and laptops—all of which feed into a secure platform.

The benefits include increased productivity, faster reporting, and chain-of-custody time-stamped electronic records. One month after going live with Certdox, DSW scored a perfect 100 on a Safe Quality Food (SQF) Level 2 Certification Audit.

Another food distribution company embracing technology is Baldor Specialty Foods, one of the largest distributors of premium fresh produce, specialty foods and other products in the Northeast and Mid-Atlantic regions. Baldor serves more than 13,000 food service, retail, and corporate accounts, including three-quarters of the Michelin-star restaurants in its regions, says Seth Gottlieb, the company’s senior vice president, logistics.

During the pandemic, when the company urgently needed to shift from restaurants to home delivery, Baldor reached out to Ortec, a supplier of mathematical optimization software. Ortec’s Tactical Routing platform enabled a quick and effective pivot. The Routing and Dispatch platform helps Baldor’s routing teams continuously improve their on-time record by using analytics configured within the Ortec Big Data Portal, which includes historical stop service times, along with other order-level data.

Baldor’s routing, analytics, and technology teams regularly collaborate with their counterparts at Ortec. The two companies also are working together as Baldor develops its strategic three-year roadmap.

“We’re fortunate to have a relationship that allows us to come to our partners with our goals for the years ahead and work together on collaborative solutions that maximize our use of the platform,” Gottlieb says.


]]>
Food distribution and transportation companies are helping retail, restaurant, and other companies boost performance and meet customers’ changing needs. These are critical capabilities, given the industry’s competitive and time-sensitive nature.

One example is the partnership between The Convenience Group (TCG) and its distributor Harbor Wholesale.

During the pandemic, food distributor Harbor Wholesale served its retail customers such as The Convenience Group by offering flexible product selections and solutions.

The convenience store industry used to be perceived as purveyors of “gas, smokes, and cokes.” No longer. Many stores are raising the bar and providing a range of quality groceries and food products, says Don Rhoads. He heads a chain of nine—soon to be 10—TCG superettes in Washington state that range from 3,000 to 5,000 square feet, and offer sandwiches, produce, groceries, and other items.

Like many other firms during the pandemic, TCG struggled to access supplies. “We had to pivot,” Rhoads says. Fortunately, Harbor Wholesale was able to provide flexible product selections and substitutions.

Also during this time, TCG accelerated its technology implementation. Technology tools from Harbor Hub, a program of Harbor Wholesale, now play major roles in several areas. For instance, a unified inventory and order management program provides Rhoads with a detailed breakdown of different products’ performance. “These tools provide a new and innovative way to look at our business,” he says.

TCG also leverages a system from Harbor Hub that suggests alternatives when products are out of stock.

“In food service, there are no rain checks,” says Clyde Coleman, senior director of operations with food service distributor PFG.

TCG operates and franchises neighborhood convenience stores throughout Washington and Oregon. It leverages technology from its distributor for inventory and order management.

Moreover, the business environment remains challenging. Distribution often is a “penny-profit business,” explains Justin Craigwell-Graham, managing director with L.E.K. Consulting.

Like many companies today, food distributors are confronting labor pressures, a truck driver shortage, and inflation. That’s prompting many to try to rein in costs, through steps such as competitively sourcing key products, better managing damaged goods, and addressing logistics and operations inefficiencies.

Some private equity firms are working to build national or supra-regional brands in the food distribution sector. Their goal is to gain efficiencies in several areas, including purchasing and routing configurations.

Also driving efficiencies is technology, which has become “table stakes” in the industry, Craigwell-Graham says. To remain competitive, distributors need at least a basic online ordering system, some digitization of their point-of-sale system, and an automated route or fleet optimization tool.

Even as food distributors and transportation providers focus on costs and technology, providing superior service and building strong client relationships remain critical. This requires trust, transparency, and an understanding of each other’s businesses.

Here are a few case studies of companies doing just that.

Doing Good for Customers and the Planet

Moving SGSY’s temperature-controlled products to markets across the country can be challenging. The company relies on transportation partners that provide excellent service and help meet customer needs.

The mission of So Good So You (SGSY), a manufacturer of premium, probiotic plant-based functional beverages, is to deliver “good to bodies while also doing good for the planet,” says Angel Cisneros, director of distribution and logistics with the B-Corp certified company. As one example, renewable energy powers its zero-waste facilities.

In line with its mission, SGSY strives to “deliver what our customers want, when they want it, and at the best possible price,” Cisneros says. That can be a challenging endeavor when moving temperature-controlled products via less-than-truckload (LTL) shipments to markets across the country.

SGSY relies on transportation partners that understand its goals and share its vision of providing excellent service through on-time arrivals, timely communication, technology, and the flexibility needed to meet changing customer needs.

For about one year, So Good So You has been working with Bay & Bay Transportation, a family-owned trucking and logistics company. “Bay & Bay strives to provide a personal level of service geared to solve our transportation challenges,” Cisneros says.

Among other services, Bay & Bay provides dry and refrigerated full truckload and LTL transportation to SGSY’s major retailers, says Levi Hall, account manager with Bay & Bay.

At the start of their partnership, Bay & Bay took over a single lane. SGSY had been working with another provider that wasn’t able to consistently meet on-time delivery metrics required by a big-box client, straining the relationship and leading to substantial fines, Hall says. Since Bay & Bay assumed control of the lane, it has consistently maintained a flawless on-time delivery record.

Bay & Bay also worked closely with SGSY’s transportation management system (TMS) service provider to enhance electronic communication through EDI connections. This reduced the labor hours needed to maintain proper information in the company’s system. The initiative also standardized data and procedures.

“Being a continuously growing company means having to react to the changes and demands our growth creates,” Cisneros says. “Bay & Bay’s ready-to-go mentality has been key to ensure we deliver what our customers want when they want it.”

Leveraging a Rolling Warehouse

Bay & Bay provides dry and refrigerated full truckload and LTL transportation to SGSY’s major retailers.

Bartolotta LLC buys fresh produce, typically from California or Arizona, and transports it to the Northeastern U.S. About 15% of shipments head to retail companies, 25% to processors, and 60% to wholesalers, says Kevin Bartolotta, president.

The company partners with Radiant Global Logistics for several services, including its ability to provide rail cars that can act as “rolling warehouses,” for purchases that haven’t yet been re-sold, Bartolotta says.

While the ability to use trains for rolling inventory is a small piece of Radiant’s services, it can be an important one. “Produce is a commodities market, and Bartolotta often can read the market and forecast when prices will rise,” says Debra Sanford, Radiant’s vice president, sales and pricing.

Bartolotta can make a purchase, locking in a price. Within several days, the same load might be sold for significantly more.

Rail, although typically not as fast as over-the-road travel, is less likely to be impacted by weather delays, and the rates and schedules tend to be more stable, Bartolotta says. In addition, it’s possible to track shipments and monitor temperatures and other features.

“Radiant helped me expand my business by offering perks not available with over-the-road shipments,” Bartolotta says.

Streamlining LTL

As one of Performance Food Group’s approved LTL carriers, Old Dominion Freight Line provides key benefits such as delivering on time, coordinating delivery schedules, and transporting specialty products on demand.

For the past 13 years, PFG, a food service distributor, has used Old Dominion Freight Lines (ODFL) for LTL services and occasional final-mile deliveries. “ODFL has been instrumental in helping PFG streamline LTL services,” Coleman says.

Old Dominion provides direct LTL service to more than 99% of the country. As an approved LTL provider for PFG, ODFL offers several key services. One is ensuring products land at each PFG location consistently and reliably. Another is coordinating delivery schedules between PFG’s distribution center or inbound receiving manager and ODFL’s local service center operations team.

The benefits to PFG and its vendor base include reduced yard congestion and labor allocation, as well as an improved ability to serve customers. Many PFG vendors provide specialty products that typically aren’t inventoried in large quantities. Old Dominion can transport and deliver these on demand, says Ed Garner, director of national accounts for ODFL.

ODFL also provides visibility through several integrated systems. “From shipment pickup to final delivery, these data points are shared with both the shipper and the consignee via multiple interfaces including EDI, API, or other real-time methods,” Garner says.

“As we have expanded over the years, ODFL has kept up with our growing demands and has been able to maintain service levels,” Coleman says.


An Appetite for Technology

A tactical routing solution and big data portal provide visibility into Baldor’s delivery routes.

Technology impacts many industries, including the food distribution sector. Consider DSW Distribution, which operates more than 6.5 million cubic feet of warehouse space in Southern California that is temperature-controlled, organic-certified, and licensed for alcoholic beverages and pharmaceuticals, among other features.

The company’s initiative to convert its Food Safety Manual System (FSMS) from paper to paperless, was an “intense exercise,” says Brad Thayer, president and chief executive officer of DSW. The paper-based FSMS had taken decades to develop and consumed a roomful of binders.

To accomplish this shift, DSW leveraged a food safety management software system from Certdox. The new FSMS is now securely live on phones, tablets, and laptops—all of which feed into a secure platform.

The benefits include increased productivity, faster reporting, and chain-of-custody time-stamped electronic records. One month after going live with Certdox, DSW scored a perfect 100 on a Safe Quality Food (SQF) Level 2 Certification Audit.

Another food distribution company embracing technology is Baldor Specialty Foods, one of the largest distributors of premium fresh produce, specialty foods and other products in the Northeast and Mid-Atlantic regions. Baldor serves more than 13,000 food service, retail, and corporate accounts, including three-quarters of the Michelin-star restaurants in its regions, says Seth Gottlieb, the company’s senior vice president, logistics.

During the pandemic, when the company urgently needed to shift from restaurants to home delivery, Baldor reached out to Ortec, a supplier of mathematical optimization software. Ortec’s Tactical Routing platform enabled a quick and effective pivot. The Routing and Dispatch platform helps Baldor’s routing teams continuously improve their on-time record by using analytics configured within the Ortec Big Data Portal, which includes historical stop service times, along with other order-level data.

Baldor’s routing, analytics, and technology teams regularly collaborate with their counterparts at Ortec. The two companies also are working together as Baldor develops its strategic three-year roadmap.

“We’re fortunate to have a relationship that allows us to come to our partners with our goals for the years ahead and work together on collaborative solutions that maximize our use of the platform,” Gottlieb says.


]]>
3PL Provides a Well-Oiled, Single-Source Solution https://www.inboundlogistics.com/articles/3pl-provides-a-well-oiled-single-source-solution/ Thu, 20 Jul 2023 19:02:59 +0000 https://www.inboundlogistics.com/?post_type=articles&p=37252 THE CHALLENGE

Pompeian is a leading name in the olive oil industry and has been a long-established customer of Trinity Logistics for all its truckload shipping needs since the 1990s.

However, as its business grew, Pompeian realized they had little to no visibility into their less-than-truckload (LTL) shipping rates. Nor did they have clear information on the delivery status of their LTL and truckload customer orders through the manual data entry processes they had in place.

Pompeian quickly realized they needed a transportation management solution that could be their one source for all their transportation information. They needed a system and expert support so they could eliminate their manual entry processes and access detailed reporting so they could gain visibility into where their freight dollars were actually going.

Pompeian needed a solution that could not only offer them the answers to their current problems but continue to support them through the years as their business continues to grow and expand.

THE SOLUTION

Pompeian chose Trinity Logistics as their single-source logistics solutions provider because Trinity offered more than just its transportation management software. Pompeian had already experienced Trinity’s invaluable People-Centric service and Trinity’s offer to manage Pompeian’s logistics operations through its Integrated Outsource solution appealed to them.

While Trinity offers other transportation management solutions including Software-as-a-Service (SaaS) and a managed TMS, their Integrated Outsource solution offered Pompeian exactly what they were looking for—a fully managed transportation solution that provides them with expert super-user support, extensive data, and any training needed to maximize their transportation results.

Since working solely with Trinity Logistics, Pompeian has increased efficiencies, reduced the cost of their transportation operations, and gained valuable freight cost visibility, all thanks to Trinity’s strategic account management in conjunction with their transportation management software.


To learn more:
marketing@trinitylogistics.com
800-846-3400
www.trinitylogistics.com

]]>
THE CHALLENGE

Pompeian is a leading name in the olive oil industry and has been a long-established customer of Trinity Logistics for all its truckload shipping needs since the 1990s.

However, as its business grew, Pompeian realized they had little to no visibility into their less-than-truckload (LTL) shipping rates. Nor did they have clear information on the delivery status of their LTL and truckload customer orders through the manual data entry processes they had in place.

Pompeian quickly realized they needed a transportation management solution that could be their one source for all their transportation information. They needed a system and expert support so they could eliminate their manual entry processes and access detailed reporting so they could gain visibility into where their freight dollars were actually going.

Pompeian needed a solution that could not only offer them the answers to their current problems but continue to support them through the years as their business continues to grow and expand.

THE SOLUTION

Pompeian chose Trinity Logistics as their single-source logistics solutions provider because Trinity offered more than just its transportation management software. Pompeian had already experienced Trinity’s invaluable People-Centric service and Trinity’s offer to manage Pompeian’s logistics operations through its Integrated Outsource solution appealed to them.

While Trinity offers other transportation management solutions including Software-as-a-Service (SaaS) and a managed TMS, their Integrated Outsource solution offered Pompeian exactly what they were looking for—a fully managed transportation solution that provides them with expert super-user support, extensive data, and any training needed to maximize their transportation results.

Since working solely with Trinity Logistics, Pompeian has increased efficiencies, reduced the cost of their transportation operations, and gained valuable freight cost visibility, all thanks to Trinity’s strategic account management in conjunction with their transportation management software.


To learn more:
marketing@trinitylogistics.com
800-846-3400
www.trinitylogistics.com

]]>
Satisfying a Craving for Productivity https://www.inboundlogistics.com/articles/satisfying-a-craving-for-productivity/ Thu, 20 Jul 2023 15:37:55 +0000 https://www.inboundlogistics.com/?post_type=articles&p=37222

THE CUSTOMER:

Morton Food Service is an independent distributor that supplies food and beverage products to independent restaurant owners and food service operators across southwestern Ontario and the Niagara region. The company offers more than 6,500 local and national products as well as many international products.

THE PROVIDER:

VAI is an independent mid-market ERP software developer offering solutions that automate critical business functions for the distribution, manufacturing, retail, and service sectors, including specific ERP solutions for hard goods, food, and pharmaceutical companies.


Among other actions, Morton implemented VAI’s S2K Enterprise for Food software, as well as its advanced software applications such as Mobile Order Entry, Suggested Purchasing, Warehouse Management, and Analytics. Together, these solutions are helping Morton Food Service improve productivity and visibility and grow sales.

An Aging ERP

Morton Food Service offers more than 7,000 products from numerous brands to 1,000-plus customers and specializes in providing locally sourced food to restaurants across southwestern Ontario and the Niagara region. In 2019, the company celebrated its centennial anniversary.

Before it connected with VAI, Morton had been making do with an aging ERP solution that lacked support. It also lacked many of the capabilities Morton wanted to implement for its own operations and to offer its clients.

“We realized that there were a lot of opportunities to improve our operations and our processes,” says Patrick Lenover, Morton’s director of project management.

For example, picking operations had been largely manual and paper-based. The company’s sales reps lacked access to updated and live inventory, and special orders were treated with a combination of manual methods, such as stickers and spreadsheets. Morton also handled routing manually.

“We put a lot of manual effort into almost all aspects of the business,” Lenover says. Not only was this less than efficient, but it largely disconnected different functions from each other.

Implementing a new ERP solution would address this, while also providing an opportunity to offer Morton’s customers features such as mobile capabilities.

“We wanted to improve our operations and we knew that we couldn’t do it with the solution that we had at the time,” Lenover says.

To help identify the best ERP solution, Morton brought in Patrick Rivait, an external project consultant. Working together, the Morton team and Rivait mapped all the company’s business processes across multiple areas, including warehouse management, purchasing, sales, and finance.

“We broke things down to a very granular level to come up with a shopping list of the different functionalities we needed,” Rivait says. In total, the team identified more than 1,000 process components, which they ranked according to importance to the organization.

Then they reviewed a range of ERP solutions. In their evaluations, the team focused on requirements unique to the wholesale food distribution space, such as the ability to provide lot traceability and handle expiration dates.

Through this research, the pool of potential partners was winnowed down to four or five solutions. Rivait and other team members asked these vendors to demonstrate how the system would function daily. For instance, how would an employee add a new vendor to the system? Asking all solution providers to show how their system would handle common operations gave Morton a level playing field to analyze and compare the various solutions.

“Overall, we found that VAI fit the needs of the organization,” Rivait says. In addition, Morton could continue to grow and work together with VAI.

VAI’s solutions leverage business intelligence, analytics, mobility, and cloud technology to help companies make informed business decisions and build a competitive edge.

Assessing the Needs

In working with clients, VAI starts with a requirements analysis, says Peter Zimmerman, North American software sales manager. Once VAI team members understand what a client is looking for, they can recommend best practices drawn from the knowledge they’ve gained through their work with numerous customers.

Every implementation process also includes plans for data conversion, pilot testing, and training, among other steps. These actions help ensure that the solution meets the company’s needs, while also strengthening buy-in among both management and end users.

A critical component in the success of the partnership between the two companies was Morton’s decision to dedicate several staff members to the ERP team. These employees were responsible for learning about the software and its configuration, as well as for training, testing, and retesting to ensure that everything was working as it should.

Also important was Morton’s decision to avoid testing in “silos,” or individual functions, Rivait says. Instead, the teams conducted “cradle-to-grave tests” to check that information flowed accurately from one function to the next.

A primary benefit of an ERP solution is its ability to link together different functions so information flows seamlessly, Rivait notes. To fully leverage the value of an ERP implementation, testing needs to ensure information moves accurately and completely between functions.

Information Leads to a Bump in Sales and Profitability

Typically, companies that implement the S2K solution can expect a bump in sales and profitability because they easily can see what customers are buying. They can also see profit margins by product, which leads to more informed inventory management decisions.

For instance, through the Suggested Purchasing module, if a new type of bakery bread is taking off, a company will see this and know it probably makes sense to boost orders of it, Zimmerman says.

Along with offering recommendations, the Suggested Purchasing module lets Morton see sales and average movement, among other data, on each product. It’s possible to make adjustments if, for instance, it’s clear a bump in sales was due to an event or to a holiday.

The system also can recalculate suggestions, enabling users to make more informed decisions about how and what they’re buying. As important, the module offers visibility into the calculation behind its suggestions. “There’s no guessing or wondering, ‘Where did that number come from?’” Lenover says.

Paper Picklists

S2K also streamlined multiple operational processes. Previously, for instance, Morton employees would print stacks of picklists on paper, by order and storage area, such as freezer, dry, or cooler. Then they’d distribute the picklists, one or two at a time, to selectors.

Using a pushcart, selectors would walk through the warehouse picking the items listed and labeling each product by writing the appropriate stop number on the box with a magic marker.

Selectors left the completed carts and orders at a staging area, where a supervisor checked them for accuracy. Another worker palletized and loaded the products onto trucks. Completed picklists were left with a clerk who manually entered the shipped quantities and catch-weights into the system before generating an invoice.

“This process was slow and required workers to rehandle a lot of boxes and paperwork,” Lenover says. It also provided opportunities for error.

The current process is decidedly more automated. To start, orders are imported into voice picking software—another addition to Morton’s mix of technology tools. Selectors wear headsets, barcode scanners, and mobile label printers, and drive a double pallet jack, where a driver is in front with two trailing pallets.

When the selectors log in to the voice picking software, it assigns them a unit of work for each pallet based on the route, stop number, storage area, and other information.

Through the headset, selectors are instructed to proceed to a bin location, where they scan the barcode. Once the correct product is scanned, the system identifies the quantity to pick. Labels automatically print from the mobile label printer, and the system instructs the selector to place the product on the appropriate pallet, where the labels are applied, and the process continues.

“The selector is able to completely pick two pallets of product by moving through the warehouse once,” Lenover says.

Quantities shipped and other information is captured at the time of selection, as voiced by the selector. Cases are clearly labeled and picking data is automatically sent back to the S2K solution. The supervisor generates the invoices when the route is complete.

“This process is much more efficient and accurate,” Lenover says.

Streamlining Ecommerce

By using the Roadnet Transportation Suite, a third-party application that interfaces with S2K, Morton is getting a better handle on its routing needs.

The tools within Roadnet allow Morton to map orders and identify the most efficient way to direct its trucks. Importing this information back into S2K streamlines and provides visibility to multiple operations, like dock scheduling and product receiving. “We have visibility to everything now,” Lenover says.

Plans for the Future

Morton is currently implementing VAI’s ecommerce solution, which provides each customer with their own portal to place orders, review pricing schedules, and check accounts receivable, among other functions.

Eventually, Morton plans to also implement VAI’s Smart Center solution. This includes customer relationship management, and customized dashboards and KPIs, among other features.

Through S2K analytics, Morton has created dozens of reports that offer users the information they need to make informed, insightful decisions. Among other metrics, the solution can provide inventory turns and customer fill rates, forecasted demand versus actual, and picking and shipping performance.

Adding these tools has impacted Morton’s revenue, as well as operations. The company says sales have grown more quickly after implementing S2K than they had previously.


Casebook Study: Upping the Food Chain

The Challenges:

An aging ERP system meant many processes within Morton Food Service remained manual, time-consuming, and at risk of errors. It also kept Morton from offering customers mobile and other capabilities.

The Solution:

Partner with VAI to implement its S2K Solution, as well as other solutions that work with S2K, like mobile order entry.

The Results:

Streamlined, automated picking and fulfillment operations and transportation routing, as well as greater sales growth.

Next Steps:

Implement VAI’s ecommerce solution and possibly its Smart Center solution, which includes customer relationship management, customized dashboards, and other features.


]]>

THE CUSTOMER:

Morton Food Service is an independent distributor that supplies food and beverage products to independent restaurant owners and food service operators across southwestern Ontario and the Niagara region. The company offers more than 6,500 local and national products as well as many international products.

THE PROVIDER:

VAI is an independent mid-market ERP software developer offering solutions that automate critical business functions for the distribution, manufacturing, retail, and service sectors, including specific ERP solutions for hard goods, food, and pharmaceutical companies.


Among other actions, Morton implemented VAI’s S2K Enterprise for Food software, as well as its advanced software applications such as Mobile Order Entry, Suggested Purchasing, Warehouse Management, and Analytics. Together, these solutions are helping Morton Food Service improve productivity and visibility and grow sales.

An Aging ERP

Morton Food Service offers more than 7,000 products from numerous brands to 1,000-plus customers and specializes in providing locally sourced food to restaurants across southwestern Ontario and the Niagara region. In 2019, the company celebrated its centennial anniversary.

Before it connected with VAI, Morton had been making do with an aging ERP solution that lacked support. It also lacked many of the capabilities Morton wanted to implement for its own operations and to offer its clients.

“We realized that there were a lot of opportunities to improve our operations and our processes,” says Patrick Lenover, Morton’s director of project management.

For example, picking operations had been largely manual and paper-based. The company’s sales reps lacked access to updated and live inventory, and special orders were treated with a combination of manual methods, such as stickers and spreadsheets. Morton also handled routing manually.

“We put a lot of manual effort into almost all aspects of the business,” Lenover says. Not only was this less than efficient, but it largely disconnected different functions from each other.

Implementing a new ERP solution would address this, while also providing an opportunity to offer Morton’s customers features such as mobile capabilities.

“We wanted to improve our operations and we knew that we couldn’t do it with the solution that we had at the time,” Lenover says.

To help identify the best ERP solution, Morton brought in Patrick Rivait, an external project consultant. Working together, the Morton team and Rivait mapped all the company’s business processes across multiple areas, including warehouse management, purchasing, sales, and finance.

“We broke things down to a very granular level to come up with a shopping list of the different functionalities we needed,” Rivait says. In total, the team identified more than 1,000 process components, which they ranked according to importance to the organization.

Then they reviewed a range of ERP solutions. In their evaluations, the team focused on requirements unique to the wholesale food distribution space, such as the ability to provide lot traceability and handle expiration dates.

Through this research, the pool of potential partners was winnowed down to four or five solutions. Rivait and other team members asked these vendors to demonstrate how the system would function daily. For instance, how would an employee add a new vendor to the system? Asking all solution providers to show how their system would handle common operations gave Morton a level playing field to analyze and compare the various solutions.

“Overall, we found that VAI fit the needs of the organization,” Rivait says. In addition, Morton could continue to grow and work together with VAI.

VAI’s solutions leverage business intelligence, analytics, mobility, and cloud technology to help companies make informed business decisions and build a competitive edge.

Assessing the Needs

In working with clients, VAI starts with a requirements analysis, says Peter Zimmerman, North American software sales manager. Once VAI team members understand what a client is looking for, they can recommend best practices drawn from the knowledge they’ve gained through their work with numerous customers.

Every implementation process also includes plans for data conversion, pilot testing, and training, among other steps. These actions help ensure that the solution meets the company’s needs, while also strengthening buy-in among both management and end users.

A critical component in the success of the partnership between the two companies was Morton’s decision to dedicate several staff members to the ERP team. These employees were responsible for learning about the software and its configuration, as well as for training, testing, and retesting to ensure that everything was working as it should.

Also important was Morton’s decision to avoid testing in “silos,” or individual functions, Rivait says. Instead, the teams conducted “cradle-to-grave tests” to check that information flowed accurately from one function to the next.

A primary benefit of an ERP solution is its ability to link together different functions so information flows seamlessly, Rivait notes. To fully leverage the value of an ERP implementation, testing needs to ensure information moves accurately and completely between functions.

Information Leads to a Bump in Sales and Profitability

Typically, companies that implement the S2K solution can expect a bump in sales and profitability because they easily can see what customers are buying. They can also see profit margins by product, which leads to more informed inventory management decisions.

For instance, through the Suggested Purchasing module, if a new type of bakery bread is taking off, a company will see this and know it probably makes sense to boost orders of it, Zimmerman says.

Along with offering recommendations, the Suggested Purchasing module lets Morton see sales and average movement, among other data, on each product. It’s possible to make adjustments if, for instance, it’s clear a bump in sales was due to an event or to a holiday.

The system also can recalculate suggestions, enabling users to make more informed decisions about how and what they’re buying. As important, the module offers visibility into the calculation behind its suggestions. “There’s no guessing or wondering, ‘Where did that number come from?’” Lenover says.

Paper Picklists

S2K also streamlined multiple operational processes. Previously, for instance, Morton employees would print stacks of picklists on paper, by order and storage area, such as freezer, dry, or cooler. Then they’d distribute the picklists, one or two at a time, to selectors.

Using a pushcart, selectors would walk through the warehouse picking the items listed and labeling each product by writing the appropriate stop number on the box with a magic marker.

Selectors left the completed carts and orders at a staging area, where a supervisor checked them for accuracy. Another worker palletized and loaded the products onto trucks. Completed picklists were left with a clerk who manually entered the shipped quantities and catch-weights into the system before generating an invoice.

“This process was slow and required workers to rehandle a lot of boxes and paperwork,” Lenover says. It also provided opportunities for error.

The current process is decidedly more automated. To start, orders are imported into voice picking software—another addition to Morton’s mix of technology tools. Selectors wear headsets, barcode scanners, and mobile label printers, and drive a double pallet jack, where a driver is in front with two trailing pallets.

When the selectors log in to the voice picking software, it assigns them a unit of work for each pallet based on the route, stop number, storage area, and other information.

Through the headset, selectors are instructed to proceed to a bin location, where they scan the barcode. Once the correct product is scanned, the system identifies the quantity to pick. Labels automatically print from the mobile label printer, and the system instructs the selector to place the product on the appropriate pallet, where the labels are applied, and the process continues.

“The selector is able to completely pick two pallets of product by moving through the warehouse once,” Lenover says.

Quantities shipped and other information is captured at the time of selection, as voiced by the selector. Cases are clearly labeled and picking data is automatically sent back to the S2K solution. The supervisor generates the invoices when the route is complete.

“This process is much more efficient and accurate,” Lenover says.

Streamlining Ecommerce

By using the Roadnet Transportation Suite, a third-party application that interfaces with S2K, Morton is getting a better handle on its routing needs.

The tools within Roadnet allow Morton to map orders and identify the most efficient way to direct its trucks. Importing this information back into S2K streamlines and provides visibility to multiple operations, like dock scheduling and product receiving. “We have visibility to everything now,” Lenover says.

Plans for the Future

Morton is currently implementing VAI’s ecommerce solution, which provides each customer with their own portal to place orders, review pricing schedules, and check accounts receivable, among other functions.

Eventually, Morton plans to also implement VAI’s Smart Center solution. This includes customer relationship management, and customized dashboards and KPIs, among other features.

Through S2K analytics, Morton has created dozens of reports that offer users the information they need to make informed, insightful decisions. Among other metrics, the solution can provide inventory turns and customer fill rates, forecasted demand versus actual, and picking and shipping performance.

Adding these tools has impacted Morton’s revenue, as well as operations. The company says sales have grown more quickly after implementing S2K than they had previously.


Casebook Study: Upping the Food Chain

The Challenges:

An aging ERP system meant many processes within Morton Food Service remained manual, time-consuming, and at risk of errors. It also kept Morton from offering customers mobile and other capabilities.

The Solution:

Partner with VAI to implement its S2K Solution, as well as other solutions that work with S2K, like mobile order entry.

The Results:

Streamlined, automated picking and fulfillment operations and transportation routing, as well as greater sales growth.

Next Steps:

Implement VAI’s ecommerce solution and possibly its Smart Center solution, which includes customer relationship management, customized dashboards, and other features.


]]>