Perishable Transportation Perishable Transportation and ...

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Perishable Transportation Perishable Transportation and ...

  1. 1. Perishable Transportation and Supply Chain Logistics Sponsored by: NatureWorks LLC TRUCKING ALTERNATIVES •CONVENTIONAL RAIL •BLOCKS •INTERMODAL •UNIT TRAIN
  2. 2. Paul Esposito • Coal and Grain industries move their products across this country in UNIT TRAINS, why can’t the PRODUCE INDUSTRY do the same? • Railroads are able to move product from Point A to Point B very efficiently • Conventional rail service requires many stops along the way this can delay transit • What if an entire TRAINLOAD of FRESH PRODUCE moved from ONE ORIGIN POINT to ONE DESTINATION, would the railroads be able to control this transit time? • The answer YES Roy Kane Miles to Go Before I Eat There was a time when you could run a truck with multiple pick ups but no more: with fuel prices at an all time high, you must now consider that for every mile you go to make a pick up you have to add at least $1.00 to that pickup. Make use of consolidation points and local hubs – pay the extra 75 cents to consolidate your orders rather than running your truck to different pick up locations. Consider using mileage calculators to help determine the distance between pick up locations.
  3. 3. Think Outside the Refrigerated Box Find innovative ways to help cut freight costs. Team up with other companies in your area to make full loads with fewer picks. Increase your product line with lightweight items that can maximize and fill your truck. Allow for more lenient transit times. Network with your local LTL companies - request that they contact you when they have space they need to fill. In this way the LTL provider comes to need and rely upon you, instead of the other way around. Don’t Lose Your Cool Look out for yourself and your regular drivers by training them towards iron-clad documentation. Don’t let paperwork trip you up. Work with your regular drivers so they can avoid frivolous claims – a good driving team is hard to find. It is in your interest to look out for their interests. Mandate temperature recorders – if you can prove that temperature wasn’t the problem, it becomes somebody else’s problem.
  4. 4. United Fresh, Las Vegas 2008 May 2008 Packaging & Operations Track Perishable Transportation & Supply Chain Logistics Costco Getting fresh produce from point A to point B is never a straight line Many factors affect perishable logistics in today’s marketplace such as Driver shortages, rising fuel costs, food safety, and legislative issues. In this session, transportation specialists will discuss solutions being Employed to address key challenges, dispel misconceptions, and explore New technologies being utilized to streamline perishable logistics. Panel Members Moderator: Craig Cahill, Director / Perishable Logistics Allen Lund Company Speakers: Paul Esposito, General Manager, Railex, LLC Roy Kane, Cooseman’s Worldwide, Inc. Carl Swartz, Corporate Transportation Mgr. - Perishables, Kroger Co.
  5. 5. Carl Swartz OUR ULTIMATE CHALLENGE HOW TO REDUCE TOTAL SUPPLY CHAIN COSTS WHILE SUPPORTING KROGER’S “FOUR KEYS” WHICH ARE FOCUSED ON PEOPLE, PRICE, PRICE SELECTION AND SHOPPING EXPERIENCE COST COMPONENTS OF KROGER’S SUPPLY CHAIN Product / Procurement 82% Freight (inbound to DC) 5% Warehousing / Cost of Inventory 3% Freight (outbound to store) 1% Store Handling / Lost Sales / Shrink 9% Cross Functional Problems Require Cross Functional Solutions
  6. 6. PRODUCE & FLORAL TRANSPORTATION CHALLENGES fuel costs hours of service linehaul costs emissions regulations seasonal capacity carrier performance driver shortage product rejections cost of equipment detention & reconsignment PRODUCE & FLORAL TRANSPORTATION FREIGHT RATE PER MILE $2.50 $2.25 $2.00 $1.75 $1.50 $1.25 CPM $1.00 FSC $0.75 $0.50 FSC AS A % OF TOTAL FREIGHT RATE $0.25 $0.00 2003 2004 2005 2006 2007 25.00% 20.00% 15.00% % OF CPM Impact of the rising 10.00% cost of diesel fuel 5.00% 0.00% 2003 2004 2005 2006 2007
  7. 7. PRODUCE & FLORAL TRANSPORTATION KROGER’S SECRET WEAPON TO COMBAT RISING FUEL PRICES Allen Lund’s Super High Gas Mileage Ultra Low Emissions Tractor Lund’ HaulAss 2020 PRODUCE & FLORAL TRANSPORTATION CHALLENGES fuel costs hours of service linehaul costs emissions regulations seasonal capacity carrier performance driver shortage product rejections cost of equipment detention & reconsignment TOOLS & INITIATIVES mgmt tools strategic initiatives technology tools future initiatives carrier friendly initiatives
  8. 8. PRODUCE & FLORAL TRANSPORTATION MANAGEMENT TOOLS routing guides on-time delivery report claims mgmt carrier scorecard carrier meetings PRODUCE & FLORAL TRANSPORTATION TECHNOLOGY TOOLS web-based transportation mgmt location tracking in-transit temp tracking downloadable reefers on-line appt scheduling
  9. 9. PRODUCE & FLORAL TRANSPORTATION STRATEGIC INITIATIVES continuous moves dedicated tours annual bids capacity hedging lane level single sourcing volume commitments PRODUCE & FLORAL TRANSPORTATION CARRIER FRIENDLY INITIATIVES shipper load & count elimination of pallet exchange elimination of unloading expense fair detention & reconsignment reimbursement fair fuel surcharge practical miles vs HHG miles freight payment
  10. 10. PRODUCE & FLORAL TRANSPORTATION FUTURE INITIATIVES enterprise transportation mgmt solution pick-up optimization increased utilization of drop trailers efficiency improvements at our DC’s PRODUCE & FLORAL TRANSPORTATION IN CONCLUSION………. Always measure performance Build relationships with carrier partners Keep service priority #1, cost #1A Stress over-communication Become the “shipper of choice”
  11. 11. PRODUCE & FLORAL TRANSPORTATION QUESTIONS?

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