Food Logistics

JAN-FEB 2015

Food Logistics serves the entire food supply chain industry with targeted content for manufacturers, retailers, and distributors.

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30 JANUARY/FEBRUARY 2015 • FOOD LOGISTICS www.foodlogistics.com F L E E T M A N A G E R The Fleet Manager's 2015 Forecast Recently, Food Logistics asked industry execu- tives to share their insight on what's ahead for this year and what they're seeing from their vantage point. The challenges Todd Bernitt, director of global sourcing, foodservice, at Minneapolis, Minn.-based C.H. Robinson notes that one of the main challenges facing fleet managers is the increasing shift from national to regional distribution strategies. "Historically, successful truck fleet business models capitalized on long-haul moves with minimal stops in order to limit the effects of variable cost in the equation. Today, there is a heightened consumer demand for locally- sourced product requiring fleet managers to take a different approach to their asset utilization strategies, including sourcing short-haul drivers in a tight capacity market and implementing more efficient modes, such as less-than-truck- load (LTL) or other consolidated options. Many fleet managers are dealing with the realization that drivers have become a variable cost in a supply and demand market." Not surprisingly, regulations rank high as a top concern, says Bernitt, particularly "impend- ing changes in regulations around food safety from a supply chain standpoint." He says that, "Fleet managers will likely need to make large investments in equipment, service and technol- ogy to meet the demands of these regulatory changes and avoid any indemnification or liabil- ity that could result from an oversight." Consumer demands are another consider- ation, especially the demand for freshness, he adds. "Subsequently, supply chains become shorter to meet demand. In an industry where speed to market and product integrity are imperative, technology and traceability solutions will continue to be important for members of the food supply chain." When it comes to drivers, not only are they in short supply, the turnover rate is exceedingly high, points out James Langley, vice president of business analytics at TMW Systems in May- field Heights, Ohio. "Driver turnover remains a challenge with over one-third of fleets reporting greater than 50 percent turnover, while only 19 percent achieve better than 25 percent. The aging driver population accentuates the chal- A s the food and beverage industry moves further into 2015, a number of diffcult transpor- tation issues from prior years are keeping us compa- ny, including driver shortages, pro- liferating and costly regulations, and the never-ending pressure to keep operating costs in check. On the fip side of the coin, feet man- agers are discovering innovative technologies and better strategies to more effectively respond to new and existing challenges alike. Execs cite new distribution strategies, regs and driver turnover among the key issues. BY LARA L. SOWINSKI Isuzu's N-Series low cab forward product line includes two EPA-certified diesel engines and a gasoline engine alternative. Photos: Isuzu

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