The proposed rule dictates a number of specific requirements, ranging from materials used to hand washing. While the rules are not expected to specify use of particular technologies, they are likely to require more data recording and tracking throughout the food and beverage supply chain.
Moses spoke during the Trading Partner Alliance Supply Chain Conference in New Orleans, Louisiana, earlier this year and outlined opportunities that exist within the fresh supply chain.
The grocery channel is competing with a growing number of retailers, including c-stores and pharmacies, that are offering the same types of fresh products. “They’re competing with other channels where people can get in or out quicker or can get in and spend on higher margin items,” Moses said.
In order to compete, alternative delivery methods are likely to increase. These can range from courier-type deliveries to those completed by professional drivers, he said.
No matter which method retailers turn to, they will want to maintain a focus on their brand. “If you’re a big grocer, you have to consider someone is going to be showing up at the door of your customers and how well vetted that person is,” Moses said.
“In warehouse you have pallet, case or each picking. With fresh, you get into more each-type picking,” he explained. “Within the realm of omni-channel commerce, this has all kinds of implications.”
Smaller, more frequent deliveries can change the way the warehouse slots and replenishes items. In addition, Moses added that some retailers are using their stores as the warehouse, which adds complexity to the supply chain.
Moses said technology remains a top concern among partners within the fresh supply chain. “That is what is keeping their executives up at night,” he remarked, adding that executives are concerned with the process, implementation and adoption challenges related to transportation and warehouse management systems.
Moses said while technology facilitates the seamless movement of goods, it isn’t a core competency of grocers. Leveraging automation and the efficiencies TMS and WMS can provide can increase efficiency and profitability, he said.
By "Move Ahead" Staff
The team at Penske's new El Paso location includes Branch Rental Manager Santiago Vasquez, left, and Branch Service Manager Monty Apodaca.
Penske Truck Leasing has opened an additional facility in El Paso, Texas, to provide greater convenience for truck rental, leasing and maintenance customers on the west side of El Paso and in southern New Mexico.
The facility at 4051 Doniphan Park Circle will offer truck leasing, consumer and commercial truck rental and contract truck fleet maintenance services.
Penske recently acquired and remodeled the 3,200-square-foot building, which features two service bays and a wash bay. The site is conveniently located just off Interstate 10.
“This additional site will provide greater convenience for customers in the west side of El Paso,” said Penske District Manager Fred Haddad. The company’s existing center is about 20 miles away on the eastern side of the city."
“In addition, this location will enable us to offer late-model trucks and state-of-the-art maintenance services to businesses and consumers in Las Cruces and the surrounding area in southern New Mexico,” Haddad said. “We look forward to supporting the area’s growing transportation needs, which are fueled by cross-border traffic and facilities such as a railroad and intermodal hub in nearby Santa Teresa, New Mexico.”
Consumer and commercial truck rentals are available from the facility at 4051 Doniphan Park Circle Monday through Friday, 8 a.m. to 5 p.m., and Saturday, 8 a.m. to noon.
Maintenance services for vehicles under contract with Penske are available Monday through Friday, 9 a.m. to midnight, and Saturday, 10 a.m. to 6:30 p.m.
The phone number is 915-261-1113.
In the food industry, freshness drives business, but achieving that freshness is a complex process. Retailers are looking for more frequent, smaller deliveries of a wider variety of products and seeking greater assurances that food is kept safe throughout the supply chain. At the same time, a growing number of retailers are offering fresh food and they have higher expectations of service.
To address the increasingly complex supply chain, logistics providers are working to support the fresh channel in a number of ways, said Joe Carlier, senior vice president of sales at Penske Logistics. Carlier was among several logistics executives speaking during the Trading Partner Alliance Supply Chain Conference in New Orleans, Louisiana.
Here are some of his take-aways from the conference:
Ensuring cold-chain compliance starts with spec'ing newer, late-model equipment that fits customers’ needs. Carlier said some customers benefit from trailers with multiple temperature zones—frozen, refrigerated and ambient, which allows carriers to haul products that require different temperatures.
Utilizing different types of equipment, such as box trucks, can make rapid replenishment feasible, speed deliveries and improve utilization. While traditional grocery items, such as milk and frozen foods, can travel on 53-foot trailers, rapid replenishment items and prepared grab-and-go foods can go on smaller, more agile trucks.
To improve safety and meet upcoming requirements under the Food Safety Modernization Act (FSMA), Penske Logistics is investing in temperature tracking technology that monitors temperature fluctuations throughout the length of the trailer. “The timing of the alerts is critical so we can address any temperature fluctuations before it becomes an issue,” Carlier said.
He added that it's vital that your logistics providers be proactive when it comes to complying with FSMA requirements. “If you aren’t proactive, you’ll be looking in the rear-view mirror and everyone will be way ahead of you,” Carlier said.
Drivers have always been a critical link in the supply chain, and that role is increasing within the fresh channel, which can sometimes require more driver involvement than deliveries within other industries.
Not only do your logistics providers have to hire the right type of individuals, they have to maximize drivers’ time, which is becoming even more important as the driver shortage worsens.
“In theory you have 14 hours available of a driver’s day. Looking at how many hours are being utilized efficiently, is on the lower end—maybe six to seven hours,” Carlier said.
Carlier said participants at the TPA conference discussed bottlenecks that occur at distribution centers. “You pull in and see a line of trucks leading to the dock. The interesting thing is probably 90 percent of those trucks that are waiting in line for more than an hour have a scheduled window time,” Carlier said, adding that the backlog can occur if the warehouse isn’t able to support the scheduled delivery times or if drivers arrive early or late.
Proper routing and labor management can help minimize wait times. Carlier said 3PLs are investing in technology that can speed the flow of information between shippers, the warehouse and transportation providers, which can help each party in the supply chain make adjustments as needed.
“There are point-of-sale challenges everybody will be faced with as the consumer changes the way they purchase things,” Carlier said. “We’re still learning what this omni-channel, home delivery of groceries really looks like and if we can get to the point of collecting point-of-sale data and analyzing it the right way to help create efficiencies throughout the supply chain.”
Carlier said the challenges within the supply chain are leading more and more retailers and food manufacturers to outsource their logistics needs so they can focus on their core competencies.
“There are so many different types of regulations, why would you want to do it yourself? Most people are not set up to support these new requirements,” Carlier said. “We’re growing substantially because there is a need. Technologies, processes and the assets used as part of this dynamic supply chain are changing every single day.”
By "Move Ahead" Staff
Universal Technical Institute students (UTI) are invited to apply for the Penske Truck Leasing Diesel Excellence Scholarship, a $3,000 scholarship awarded each quarter to up to three students.
Penske Truck Leasing received an Above and Beyond Award from the Employer Support of the Guard and Reserve (ESGR) for its continued efforts to support associates serving in the Guard and Reserve.
