Food Lo g istics Warehousing and Transportation Solutions for the Food and Beverage Supply Chain E-commerce and the Supply Chain Pg. 24 WEB EXCLUSIVES New videos, podcasts and audio blogs Industry insights from Food Logistics’ staff and others ▼ ▼ WWW.FOODLOGISTICS.COM More Perishables, More Supply Chain Keeping fresh food in optimal condition is an ongoing challenge. Pg. 18 Complexity Issue No. 146 May 2013 PLUS: SECTOR REPORTS • Sustainable Pallets & Packages • Liquid Bulk Logistics • Load Planning With a JIT Mindset The Big Thaw in Cold Chain Storage Pg. 30
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Food Logistics
Warehousing and Transportation Solutions for the Food and Beverage Supply Chain
E-commerce and the Supply Chain
Pg. 24
W E B E X C L U S I V E S
New videos, podcasts and audio blogs
Industry insights from Food Logistics’ staff and others
▼▼
W W W . F O O D L O G I S T I C S . C O M
More Perishables,More Supply Chain
Keeping fresh food in optimal condition is an ongoing challenge. Pg. 18
Complexity
Issue No. 146 May 2013
PLUS: SECTOR REPORTS
• Sustainable Pallets & Packages
• Liquid Bulk Logistics
• Load Planning With a JIT Mindset
The Big Thaw in Cold Chain
StoragePg. 30
* National Cash Back Incentives: Take new retail delivery from dealer stock by 7/8/13. Restrictions apply. See dealer for qualif cations, complete details and possible program extension. Offer correct at time of printing; program rules subject to change. **F-350 – F-550 Chassis Cabs: Available on upf ts costing $1,200 or more. Not available on factory-installed options. Units receiving any form of CPA (56A), GPC, Long-Term Rental (56K) or other concessions are ineligible. $4,620 in total savings options for eligible 2013 F-350 – F-550 Super Duty® Chassis Cabs equipped with diesel engines. Eligible vehicles receive $3,000 cash back, $750 in upf t cash allowance and $870 MSRP on maintenance package coverage. For upf t offers on listed vehicles: Take new vehicle delivery by 7/31/13. Restrictions apply. See dealership for details. †Maintenance Plan: $870 MSRP on complete and incomplete vehicles equipped with diesel engines. $375 MSRP on complete and incomplete vehicles equipped with gas engines. Coverage begins at the signature date and current mileage. Coverage expires upon reaching the selected time or mileage or completion of all the maintenance services, whichever comes f rst. Prices and plans are subject to change without notice. Plan availability, benef ts, coverage and provider may vary by state. For more information, please see your dealer or reference the Terms and Conditions on your plan agreement. Take new vehicle delivery from dealer stock between 4/18/13 and 7/1/13.
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More Perishables, More Supply Chain ComplexityGlobal consumption of fresh food is rising, and getting it from farm to fork in optimal condition is the ongoing challenge. By Lara L. Sowinski
E-commerce and the Supply ChainThe impact is affecting sourcing, transportation, fulfillment and more.By Lara L. Sowinski
The Big Thaw in Cold Chain StoragePost-recession expansion of the refrigerated warehouse network shows no sign of cooling down. By Lara L. Sowinski
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SECTOR REPORTS
WAREHOUSING: Sustainable Pallets, Packages & MoreGreen products are better for the earth and better for the bottom dollar.By Lauren Levy
TRANSPORTATION: The Logistics of Liquid BulkWine shippers see a value proposition that’s hard to beat. By Lauren Levy
TECHNOLOGY: Can We Apply JIT Thinking to the Outbound Problem?Advanced load planning reduces lead time and lowers labor costs.By Matthew D. Bent
COLUMNS
FOR STARTERS: Keeping Up With Fresh DemandsConsumers want fresh food, a lot of it, and they want it now. By Lara L. Sowinski
COOL INSIGHTS: Cold Chain Management Tools: Assessments and AuditsThese two tools are necessary for comprehensive cold chain management.By David M. Sterling
FOOD (AND MORE) FOR THOUGHT: Protecting Your Supply Chain From Foodborne PathogensExpert tips on how to manage risk in the food supply chain. By Mike Rozembajgier
DEPARTMENTS
8 Supply Scan • 12 Food on the Move • 41 Marketplace • 41 Ad Index
Consumers want fresh food, a lot of it, and they want it now. Our cover story this month looks at perishables in the supply chain. Sufce it to say that despite tighter food budgets for many American households, spending on fresh food is actually rising as many people incorporate fresh fruits and vegetables
into their diets.Grocery retailers know that fresh food ranks high when it comes to where consumers
choose to shop, and they’re putting time and resources into better merchandising and selection at the store level, while the transportation and distribution needed to keep fresh food flowing through the supply chain is also tasked to perform at its highest level.
On the sourcing side, it’s getting more complex. More grocers are incorporating locally-sourced fresh foods into their overall product mix, along with fresh food that has traveled thousands of miles, thanks to advancements in refrigerated and controlled atmosphere technology.
For example, just last month California-based Global Fresh Foods announced that it would begin shipping fresh salmon via ocean container from Chile to the U.S. West Coast. A new technology they developed makes it possible to manipulate oxygen levels inside the container so that deterioration of the fish, and growth of bacteria, are essentially stalled during transit.
Previously, fresh salmon from Chile to the U.S. West Coast moved via airfreight, typi-cally through Miami. Putting fresh salmon in an ocean container for a 40-day voyage was unheard of until recently, and there are similar trade-changing developments popping up more frequently these days.
E-commerce is also responsible for driving new realities in today’s supply chains, even ones for fresh food. During my research for the e-commerce article this month, I was surprised to learn just how many new online food and grocery sites are out there. All the big guys are scrambling to figure out how to make large-scale e-com grocery work—Amazon.com, Google, Walmart, Target—everyone’s got their eye on the prize, even the smaller, local players. This is one story we’ll undoubtedly be covering more in-depth going forward.
The rest of our editorial this month also complements the topics of perishables and e-commerce. Inside you’ll find an update on the public refrigerated warehouse sector, along with reports on liquid bulk transportation trends in the wine industry, a by-lined article from Syntelic Solutions’ Matt Bent on load planning software, and coverage on pallets, packages and containers in our warehousing sector report. Our Cool Insights col-umn this month is an “encore presentation” from Georgia Tech’s Integrated Food Chain Center on cold chain management tools—it was popular with our readers when first published and deserves some extra exposure.
We’ve been hitting Twitter hard in recent weeks after a temporary hiatus and will soon roll out some much needed Web site improvements too.
Global consumption of fresh food is rising, and getting it from farm to fork in optimal condition is the ongoing challenge.
B y L A R A L . S O W I N S K I
More Perishables, More Supply Chain
18 MAY 2013 • FOOD LOGISTICS www.foodlogistics.com
COMPLEXITY
Consumer trends and regulatory crackdowns
In the U.S., the fresh produce industry is valued at $100 billion and growing. More healthy eating habits along with Americans’ desire for fresh fruits and veg-etables year-round are big drivers.
At the same time, emerging markets in Asia, Latin America, Eastern Europe and the Middle East and Africa are adopting Westernized palates, which means more fresh (and frozen) food is being transported, oftentimes over great distances. The easing of trade restric-tions and the formation of new free trade pacts is also expanding fresh food imports and exports.
Not surprisingly, longer transit time and distance puts more pressure on fresh food shippers and transportation provid-ers. Profit margins in the food sector in general are already relatively thin, which means it’s imperative to avoid any com-promises to temperature or proper han-dling that can lead to shorter shelf life or complete spoilage altogether.
More advanced refrigerated equip-ment, storage, and software and tech-nology tools that continually monitor temperature and environment make it possible to support a global supply chain for fresh food. However, there are some glaring weak links in this chain, which are mostly related to cutting corners as opposed to lack of adequate equipment.
Last year, Indiana’s state police began cracking down on hot trucks—refrig-erated trucks that transport food in trailers whose temperature exceeds safe limits. The crackdown made national headlines because of the sheer number of refrigerated shipments that were non-compliant. An unusually warm summer exacerbated by steep fuel prices were partly to blame for the high number of hot trucks snagged in the crackdown, according to the state’s law enforcement and public safety officials.
Recently, Indiana implemented stiffer laws that give state police authority to impound trucks that transport food in unsafe conditions and levy steep fines
on drivers. The state now boasts some of the strictest food transportation laws in the nation.
In California, tougher rules govern-ing refrigerated trailers, which came into effect on January 1, also have steep fines attached for non-compliance. For example, soon after the new regulation was implemented, the California Air Resources Board (CARB) fined Ontario, California-based Foster Enterprises $300,000 for failing to upgrade its diesel engines on its refrigerated trailer fleet to meet the new emissions standards.
Meanwhile, the Food Safety Modern-ization Act (FSMA) is also ratcheting up regulations—and fines—surrounding refrigerated transportation of food as it continues its phase-in.
Advances in equipment and technology
For shippers not willing to sacrifice food safety, the good news is that the latest equipment and technology is mak-ing it easier, safer, more environmentally friendly, and even cheaper in some cases to transport fresh and frozen food.
Manufacturers of refrigeration units along with manufacturers of refrigerated containers and trailers are constantly improving their products, from the design and engineering of the cooling units to the insulating ability and per-formance of the containers and trailers. In addition, other companies are intro-ducing new software and technology to monitor and control temperature and environment.
Indeed, the market for cold chain monitoring tools has plenty of room to grow, according to Tom Chicoine, vice president of business development for Cooltrax.
“Approximately 500,000 trailer refrig-eration units operate across the United States, but only an estimated 15 percent of these vehicles operate with on-board telematics technology,” he states in a recent white paper. “Companies operat-ing trucks without this technology deny their fleet managers the ability to moni-
C O V E R S T O R Y
www.foodlogistics.com FOOD LOGISTICS • MAY 2013 19
he recession has forced grocery shoppers in the U.S. to place an even greater emphasis on price and value. There-fore, private label brands have become more popular
over the past four years, as have discount grocers and club stores. Yet, access to high quality produce and a great selection of fresh food continue to rank high on consumer surveys.
20 MAY 2013 • FOOD LOGISTICS www.foodlogistics.com
tor reefer unit and refrigerated box temperatures, or to be alerted to truck locations and open-door durations. Fleet managers also lack the ability to remotely change reefer settings when necessary. Having these capabilities allows transportation firms to react when tempera-tures fall outside of accepted ranges—whether based on government regulations or internal requirements. More importantly, having these capabilities can help companies avoid catastrophic consequences.”
While remote monitoring devices have been available for years, telematics technology that allows for remote management of tempera-ture and environment is still relatively new, notes Chicoine.
Telematics technology can zero in on other problems in the cold chain, he says. “One food transportation company discovered that some drivers left the doors open from their arrival until their depar-ture at each delivery location—often for 20 minutes or more. The company instituted a policy requiring drivers to close their trailer doors immediately after removing products. Not only did this new SOP (standard operating procedure) ensure product temperatures remained consistent, with telematics, the company was able to moni-tor drivers.”
For companies looking to invest in telematics technology, Chicoine advises considering solutions “that extract as much data as possible through alerts, fault codes, temperature set points, door open/close statuses, and geo-zone tracking. The data can serve as the ultimate proof of your company’s ability to properly care for food and adhere to regulations.”
In the meantime, containerized ocean carriers are transporting more refrigerated cargo while the specialized reefer carriers are losing market share, and they’re investing in equipment and technology to support this key business segment.
C O V E R S T O R Y
BY JEFF STOUT
he advance ship notice (ASN) is essentially an electronic com-
munication from a vendor or supplier to its customer advising
them that a shipment has been created against a purchase
order (P.O.) with specific item(s) and quantities. At shipment level,
an ASN can provide basic information about the order. More advanced ASNs
can offer detailed information via case/pallet level license plate identification,
which can be imbedded to include data elements such as end customer/
store, lot numbers, expiration dates, catch weight and even country of origin/
pedigree information. This visibility can be extremely valuable and provides
the key to unlock the handcuffs on your supply chain. In order to fully under-
stand the power of the ASN, let’s take a look back.
Many retailers have been utilizing ASNs and ASN compliance with their
vendors for more than 20 years and they have come to fully appreciate their
value. For example, a large department store will require an apparel supplier
to do a “ship to/mark for”, meaning that the ASN label on that carton already
earmarks the contents for a specific store location. Once it arrives at the dis-
tribution center that carton will be cross-docked directly to the targeted store
without being opened, reducing handling and transit time to the selling floor.
Another method is for the cartons to be pre-packed with an assortment that
is defined at the ASN level. These cartons are then scanned at receipt and
systemically directed to an associated store location thus eliminating the need
to put-away, replenish and pick the products, reducing labor and increasing
the speed of processing.
However, grocery retailers have been slow to adopt detail level ASNs. It
could be due to the typical “pull” environment where the store locations order
the required inventory, which creates the store order that is provided to the
operations of the grocery DC, versus the “push” environment of other retailers
where POS feeds a replenishment system that creates the orders. So it may
seem on the surface that ASNs and flow-through distribution won’t work in
the grocery supply chain.
But some supermarket chains are seeing the light. For example, one
Manhattan Associates customer, Giant Eagle, employs ASNs with Manhattan’s
Warehouse and Distribution Management solutions, utilizing “put to store”
functionality for virtually all their fresh items. With those vendor supplied
ASNs, they’re not having to put away, replenish or pick it, saving a day or two
of shelf life by reducing turnaround time at the warehouse. Stores can offer
fresher produce and reduce waste from spoilage. In an environment where
consumers demand more fresh, healthy selections, even an extra day of shelf
life can make a big impact on any grocer’s bottom line.
That’s the power of the ASN—enabling flow-through/cross-dock distribu-
tion to drive efficiency from the guard shack to the store. But in order to
understand how ASNs can streamline your distribution, we need to take a
closer look at your typical supermarket DC, beginning with the guard shack
operation.
When a truck driver arrives at a typical facility, he presents someone in
the guard shack his paperwork, usually a packing slip or a manifest. That
employee goes back into the guard shack and keys in the information to
determine if this is a valid delivery and if the driver has an appointment. The
guard shack employee has to look at the paperwork, assume it’s accurate,
and decide, or call, to determine what door it should be unloaded at to get it
closer to where it’s going to be put away for receiving. This results in a line of
trailers backing up, day in, day out. Meanwhile, the clock is ticking, especially
on those fresh items.
Once the delivery has been directed to its door for unloading it will
22 MAY 2013 • FOOD LOGISTICS www.foodlogistics.com
For example, Hamburg Sud says it aims to achieve a 15 percent reduction in energy consumption from its reefer containers by 2015, with the newest reefer containers expected to save up to 20 percent in energy consumption. The box carrier says its new reefers will use inverter technology to produce cooling power only when it’s needed, making it more energy efficient and cost effective.
Meanwhile, Global Fresh Foods has begun shipping fresh salmon from Chile to the U.S. West Coast by ocean cargo, a route that was previously serviced only by air. The company’s patented fuel cell technology, Safe and Fresh Distribution (SAF-D), controls oxygen levels inside the ocean container to keep the salmon fresh during the longer transit. Ultimately, the solution provides a more cost effective transportation solution and a more sustainable alternative (no ice, polystyrene foam packaging, or carbon-intensive airfreight). Buyers, including food wholesalers and restaurant operators, have expressed interest in the service not only because of the lower freight costs, but also because it offers a dramatic reduction in the use of Styrofoam. In addition to the U.S. West Coast market, Global Fresh Foods will soon be shipping fresh salmon to Japan via ocean cargo.
Battery technology is also advancing. Last month, Emerald Tech-nology Partners and EnerDel announced they would work together to develop EnerDel’s lithium-ion battery for commercialization with Emerald’s WedWay Zero-Emission Refrigeration Power System.
The system uses kinetic energy produced by a semi-trailer’s rotating wheels to produce power, which is stored in the lithium-ion battery and used to run the refrigeration or freezer unit of the semi-trailer when it is stationary anywhere from 12 to 24 hours. It also allows for the removal of a dedicated fuel system, which reduces the weight of the semi-trailer and makes it possible to carry more cargo. ◆
C O V E R S T O R Y
need to be received. The check-in process can be labor intensive and detail
oriented. In most operations, check-in requires that quantities, lot numbers,
expiration dates and many other criteria be manually captured at the time of
receiving in order to be tracked throughout its lifecycle. This information is
then entered into the system of record and updated prior to any release of
outbound orders for fulfillment.
If you have outdated systems in your distribution operation, you may have
to receive, put away, then in many cases wait for an overnight process to
update the host systems. Distribution can’t even begin until the next day, so
already you’ve added a day to processing time within your DC. Another day to
process, pull and ship to stores and you’ve lost about two days of shelf life.
If you think you can implement flow-through in that kind of environment—
dream on.
Now, let’s imagine your grocery operation with fully optimized distribution
technology in place. Your vendor generates an ASN for your order, detailing
quantities, lot numbers, even expiration dates—giving you complete vis-
ibility of what’s on that truck headed to your DC down to the item level. And
because that ASN can drive online appointment scheduling, your system can
start prioritizing and slotting loads while that truck is still on the road.
So when that driver pulls up to your guard shack and presents that ASN,
the data is scanned and input into your system so fast he doesn’t even need
to get out the truck. You send him straight to a designated door because
you’ve already prioritized when you want to unload it and how you want to
unload it.
Granted, cross-dock is difficult to do with most palleted staples such
as canned goods. But, a pallet of bottled water? Most stores can sell that
amount fairly quickly. ASNs make that commodity an ideal candidate for
cross-dock.
The other items can be processed utilizing flow-through where the
received pallets are directed to a put-to-store area where the cases are
broken down from each pallet and store pallets are built based on the case
level allocations.
When you enable flow technology, you reduce travel in the DC. The ability
to move fresh and even seasonal items to your stores in less time can make
a huge difference to your already razor thin margins.
Another trend we are beginning to see with retailers is the requirement
of an ASN for all store level shipments both within their network and vendor
direct deliveries. This provides the ability to leverage the same advantages
for the store locations including appointment scheduling, improved visibility
and streamlined receiving. Furthermore, many companies are using this func-
tionality for store returns going back to the distribution center. This greatly
reduces the time and labor required to receive, process and disposition the
return items improving both throughput and turns.
The vast majority of vendors today have the capabilities to create detailed
ASNs. In fact, Wal-Mart and other mass retailers require it of their suppliers.
All you need to do is ask. Vendor compliance capabilities are key to Manhat-
tan Associates’ solutions. For example, our Extended Enterprise Management
(EEM) solution allows you to measure vendor performance as well as the
accuracy of their ASNs. EEM even enables you to be proactive with your
smaller vendors by providing them a secure log in to create ASNs and print
out labels for the goods they ship to you. Now you can source wherever you
want to. Even a small farm can provide ASNs for fresh local produce that can
be showcased in your stores—all they need is Internet access and a printer.
All of this can happen because of the ASN—the visibility, the paperless
operation, the flow-through—the efficiencies are tangible and the bottom line
savings are real. When you increase turns and get inventory to stores faster,
you sell more, reduce spoilage and keep your customers happy. ◆
Jeff Stout is a solutions architect for Manhattan Associates.
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Now that the global economy is on the rebound, construc-tion and expansion of refrigerated warehouses in the U.S. and abroad is picking up to stay ahead of grow-ing demand. A number of high-profile projects offer a glimpse into who’s expanding where and how these state-
of-the-art facilities are supporting the cold chain.
Activity in the PRW sector
In the public refrigerated warehouse (PRW) sector, several key proj-ects have recently come online or are near completion. In Dallas, US Cold Storage is close to wrapping up construction on a new 500,000 square-foot facility. The company purchased the site in 2007, but delayed construction because of the recession.
US Cold Storage already runs a facility in Dallas, but it’s been operating at maximum capacity for the past few years, according to the company’s Dallas general manager. The new facility features six 42-pallet blast cells, a temperature-con-trolled dock with 21 doors, and rail accessibility.
It’s also highly energy efficient. A CO2 cascade refrigeration system will use hot gas defrost, instead of electric defrost, allowing the system to operate at opti-mum efficiency.
Boosting energy efficiency is key for cold storage opera-tors, and was a determining factor behind a partnership between Lineage Logistics and Cascade Energy, which aims to lower resource utili-zation and costs for Lineage by 10 to 15 percent.
Cascade Energy’s CEO Marcus Wilcox explained that, “Lineage is taking both an aggressive and compre-hensive approach to energy management.” Acknowledg-ing the high energy costs associated with running a cold storage facility, he
32 MAY 2013 • FOOD LOGISTICS www.foodlogistics.com
added that Cascade is working with Lineage “shoulder-to-shoulder” to “strategically con-trol utilization and costs that are second only to labor in the industry.”
Central to Cascade’s approach to reducing its clients’ energy costs is the facility “tune up,” which identifies opportunities for energy savings through proper maintenance and operations, all of which is captured by Cas-cade’s proprietary energy tracking software and efficiency platform called SENSEI.
According to Cascade, the company has saved its industrial clients approximately $125 million, and two billion kilowatt hours per year with its energy savings solutions.
To date, Cascade has completed more than 3,000 projects across a variety of industries, including cold storage, foodservice distribu-tion, food processing, agribusiness, oil and gas, pulp and paper, and general manufactur-ing.
Meanwhile, Lineage Logistics has been steadily building out its network. Most recently, it acquired Seattle Cold Storage (SCS) and its business in Algona, Washing-ton and the Port of Tacoma. Between the two locations, SCS has 420,000 square feet with services ranging from temperature-controlled storage, to import/export, retail distribution, and transportation services.
Bill Hendrickson, Lineage CEO, said the acquisition of SCS “complements our exist-ing Seafreeze and CityIce operations in Seat-tle and enables us to provide our customers with unparalleled service and supply chain capabilities in the Puget Sound. Our Lin-eage Freight Management division has also expanded its market leading transportation-freight consolidation solutions to these new locations.”
In the meantime, Lineage really boosted its network last July when it acquired Cali-fornia-based Castle & Cooke Cold Storage (CCCS), positioning itself as the third-largest refrigerated warehouse company in North
America. The acquisition of CCCS
included 24 facilities totaling 112 million cubic feet located across California, Illinois, Maryland, Mis-souri, Georgia and Texas.
Foreign trade adding to demand
An increase in U.S. imports and exports is also adding to demand for cold storage. Although Port-land, Maine has been without direct ocean container service to Europe for 33 years, that changed in late March when Iceland’s liner company Eimskip added the city as a port of call—the only U.S. city currently served by Eimskip.
The liner’s expertise in ship-ping frozen seafood is a boon for the region’s seafood companies. However, it’s causing some to ques-tion whether Portland has the cold storage capacity to support the new traffic (Eimskip estimates it will move 5,000 containers through Portland annually with the new service).
Right now, the port has only one cold storage facility, a 1.7 mil-lion cubic-foot warehouse operated by Americold Logistics. Most sea-food companies in New England use cold storage providers in the Boston area. There are reports that Americold will invest in its Port-land-based cold storage operations, but no details are available yet.
Meanwhile, there are other developments in the works result-ing from the new Eimskip service. For one, the Maine Port Authority is installing 150 reefer container
2013 IARW Top 25 Global Public Refrigerated Warehousing CompaniesCompany Locations In Capacity
(cubic feet)
Capacity
(cubic meters)
Americold Logistics and China
Merchants Americold
Argentina, Australia, China,
New Zealand, United States
958,449,139 27,140,213
Lineage Logistics United States 289,976,853 8,211,217
Swire Cold Chain Logistics (Langfang)
Ltd., Swire Cold Chain Logistics (Shang-
hai) Ltd., Swire Cold Storage, Finlay
Cold Storage (Pvt.) Ltd., Swire Cold
Storage Vietnam, Swire Pacific Cold
Storage Company. Ltd., United States
Cold Storage
Australia, China, Sri Lanka,
United States, Vietnam
289,937,626 8,210,106
Millard United States 279,571,738 7,916,577
Preferred Freezer Services China, United States, Vietnam 235,100,269 6,657,287
Interstate Warehousing, Inc. United States 90,285,937 2,556,609
Cloverleaf Cold Storage Co. United States 67,898,876 1,922,679
Burris Logistics United States 63,679,576 1,803,202
MUK Logistik GmbH Germany 60,758,989 1,720,500
Nordic Logistics and Warehousing, LLC United States 59,529,000 1,685,671
Gruppo Marconi Logistica Integrata Italy 55,090,931 1,559,999
Columbia Colstor, Inc. United States 50,610,000 1,433,113
Congebec Logistics, Inc. Canada 48,380,000 1,369,967
Frialsa Frigorificos S.A. De C.V. Mexico 45,538,850 1,289,515
Bring Frigoscandia Sweden 42,847,343 1,213,300
Henningsen Cold Storage Co. United States 42,589,635 1,206,002
Hanson Logistics United States 35,178,539 996,144
Oxford Logistics Group Australia 34,943,549 989,489
Conestoga Cold Storage Canada 33,762,000 956,032
Trenton Cold Storage, Inc. Canada 28,335,972 802,384
Confederation Freezers Canada 26,450,000 748,979
2013 TOTAL 3,328,862,365 94,262,732
P R W U P D A T E
plugs at the port terminal to power the reefers discharged from the Eimskip vessels. In addi-tion, a Maine-based lobster company says it may export some of its Europe-bound prod-uct out of Maine instead of trucking it down to Boston now that more cold chain services and shipping are available in Portland. Other cold storage operators are watching the lat-est developments too, but say they won’t commit to adding any cold storage capacity to Portland unless more business starts to materialize.
Foreign trade is also driving cold storage construction in the U.S. Southeast. Last month, the Georgia Ports Authority cel-ebrated the grand opening of Nordic Cold Storage’s new facility near the Port of Savan-nah. The facility features more than 200,000 square feet of convertible temperature-con-trolled storage space and is capable of blasting more than 10 million pounds of product, ranging from fresh poultry to produce, per week. Nordic plans to start on a second phase of the facility by the end of the year.
The new facility is a win for the state’s poultry producers, according to Curtis Foltz, Georgia Ports Authority’s executive director.
“The Port of Savannah handles nearly 40 percent of the nation’s containerized poultry exports, supplied largely by Georgia’s farms. Quality providers like Nordic will give ship-pers more cost effective options for moving refrigerated commodities to and from inter-national markets,” he remarked.
Reefer business is central to the Port of Savannah’s cargo mix. In 2012, the port’s refrigerated cargo exports grew 3.9 percent to nearly 108,000 TEUs. Over the last seven years, refrigerated cargo exports through Savannah have risen 130 percent.
The Georgia Ports Authority says that more than 80 cold storage facilities around the state rely on the Port of Savannah, with a combined storage capacity greater than 16 million square feet.
“These private investments help to grow Savannah’s market reach, to attract a greater base of cold storage commodities, and to make Savannah a hub for refrigerated cargo,” noted Cliff Pyron, Georgia Ports Authority’s chief commercial officer.
In neighboring South Carolina, Millard Refrigerated Services is breaking ground on a new cold storage facility in Charleston Coun-
ty that will begin operating in 2014. “The team at Millard is excited about
the business opportunities with our new operation in Charleston County. The facil-ity will give us access to the world class port in Charleston and provide an efficient hub for our customers along the East Coast and throughout the Southeast,” said Lance Lar-son, the company’s president and CEO.
Millard’s new cold storage facility will be used to freeze and store poultry, pork and beef products that will be exported to foreign markets.
South Carolina’s Secretary of Commerce Bobby Hitt added that, “Distribution and logistics companies are increasingly coming to understand that South Carolina is just right for their operations. Being centrally located between Miami and New York City, having solid infrastructure and one of the busiest ports on the East Coast makes the Palmetto State ideal for reaching customers and mar-kets.”
South Carolina’s exports last year rose more than 21 percent to $24.6 billion worth of goods sold to 198 countries around the world. ◆
B Y M I K E R O Z E M B A J G I E RFOOD (and More) FOR THOUGHT
42 MAY 2013 • FOOD LOGISTICS www.foodlogistics.com
Each year, the Centers for Disease Control and Prevention
(CDC) estimates 31 different pathogens cause 9.4 million
foodborne illnesses in the U.S. In addition, the problem
is on the rise: According to the most recent data available
from the CDC, hundreds more consumers become ill from
foodborne illnesses every year.
Foodborne illnesses attract the attention of media and regulators;
each month, there are hundreds of articles about outbreaks of ill-
ness in online and traditional newspapers, with the largest outbreaks
discussed on national news shows. In response to the threat to public
health, the federal government has enacted the Food Safety Mod-
ernization Act (FSMA), which shifts the focus from reacting to a
situation to prevention, with additional scrutiny and accountability
on companies. As a result, food manufacturers find themselves in an
operating environment where just one negative incident can quickly
attract a lot of attention to their brand.
With the threat of foodborne illness increasing, it’s not a matter
of if your company faces a food recall—it’s when a recall will occur.
More than ever, food manufacturers need to consider how recalls will
impact their supply chains and plan in advance. While most compa-
nies have a crisis scenario plan in place, there are important issues to
consider in order to navigate today’s unique business environment:
• Know your supply chain inside and out. Time and time again,
when a recall strikes, companies realize that their knowledge of who
sells their products is just as critical as tracking their own supply chain
data. By improving food traceability through new technologies, better
recordkeeping and increased data requirements, food companies can
better visualize supply chains during a foodborne illness outbreak and
more quickly determine the source of the problem. The ability to track
source ingredients and final products can help reduce the size and span
of any recall, as well as help determine who will be most affected.
• Ensure speed in a time of crisis. The
impact of foodborne infections on your
consumers happens at a rapid pace. Once
the public is made aware of the presence of a
pathogen, regular communication with con-
sumers is vital to help people protect them-
selves. In addition, a quick response from
a company can help minimize reputational
damage and keep your brand as safe as pos-
sible.
• Have a recall plan in place that is prepared
for a high volume of consumer inquiries. Developing a recall plan in
advance can save time, energy and money. Often, companies don’t
realize that they will need to be prepared to handle a high number of
hits to the company Web site, as well as a high influx of calls from
concerned customers. Given this surge of inquiries, you must have a
plan in place to have the right number of well-trained representatives
to handle questions by phone, as well as enough bandwidth to keep
your Web sites and servers running.
• Test your recall plan frequently and completely. A mock recall is
impactful, as it allows your team to test its recall preparedness first
hand. Because food traceability is such a critical issue, it’s crucial for
you to have good relationships with your food supply chain partners.
Recall planning and preparedness extends beyond your four walls;
you need to interact with your suppliers and vendors down the line to
increase the effectiveness of their recalls plans, as well as your own.
• Identify a core recall team. Part of an effective recall plan also
includes identifying a recall team with dedicated personnel who are
effectively trained in implementing your recall plan. A common over-
sight is making sure members outside of logistics are on this team.
You should bring in colleagues from across the organization, including
operations, communications, finance and sales. With a wide variety
of recall team members, you can ensure you’ll have a better perspec-
tive on the affected customer base, where the product is, and how to
quickly and efficiently remove it from shelves.
Despite best efforts at prevention, the threat of a foodborne recall
still exists throughout your supply chain. With increased media and
government scrutiny, now is the time to prepare your company in
order to meet this threat head on. It’s the only way to effectively pro-
tect your consumers and your brand. ◆
Mike Rozembajgier is Vice President of Recalls for Stericycle
ExpertRECALL, online at www.expertrecall.com.
Protecting Your Supply Chain From Foodborne Pathogens
R O Z E M B A J G I E R
“Part of an effective recall plan also includes identifying a team with dedicated personnel who are effectively trained in implementing your recall plan.”
MONDAY & THURSDAY’S EDITION
Food Logistics
Warehousing and Transportation Solutions for the Food and Beverage Supply Chain
Food Logistics is proud to announce our new eNewsletter series, Fresh Take on:
Fresh Take on: Industry News covers a
range of general news relative to the food
supply chain, including trends and develop-
ments in the industry, new products and
services, regulatory compliance issues, and
changes in trade policy, to name a few.
Fresh Take on: Sustainability looks at
news relating to sustainability in the food
supply chain, from transportation and
logistics practices to more effcient
packaging design.
Fresh Take on: Software & Technology,
focuses on a very critical and rapidly evolving
sector in the food supply chain—software and
technology. Advancements and innovations
that improve supply chain visibility and
collaboration, enhance tracking and tracing,
and streamline operations are just some of the
news items that will be covered each Wednesday.
Fresh Take on: Safety & Security, reports on
safety issues as they apply to both physical safety
(in the warehouse environment, for example), as
well as safety in the food supply chain (regulatory
developments, etc.)
Subscribe today to these Fresh Takes at http://www.foodlogistics.com/reg/newsletter/
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