Transportation providers now play a more vital role in the fresh food supply chain than ever before. They are expected to provide fast, efficient and sanitary last mile logistics services as this directly impacts the freshness of produce inventory. Product freshness is more critical than ever due to increased customer expectations as consumers are now more educated about varying inventory options available to them. In order for retail grocers to capture market share they must be able to guarantee the highest quality product at the lowest prices- something they can only do by partnering with a reliable and high performing transportation partner. Transportation operations have been impacted by legislation such as the FSMA Sanitary Transportation of Human & Animal Food Rule. Under this legislation many transportation providers have had to make adjustments to their operational processes in order to meet the stringent requirements relating to proper refrigeration during transport, trailer cleansing between loads and proper food protection. Produce inventory shrinkage rates are high due to poor handling during transit. This has spurred advancements in produce packaging and loading procedures. Technology such as cartonization software is being utilized to assist warehouse staff in selecting proper packaging. Transportation providers are also implementing warehouse management software to help direct reverse loading procedures. Reverse loading trailers helps to lower handling requirements as deliveries are made. Minimized handling can potentially reduce inventory damage during transit. Temperature monitors are also being implemented to assist in maintaining regulatory compliance. These monitors track pre-cooling, temperature during transit and temperature at time of delivery. This information helps to complete the audit trail required for FDA FSMA compliance. Vehicle maintenance has also been brought to the forefront as a key factor in ensuring produce inventory quality. Properly maintaining vehicles reduces instances of break downs where inventory shrinkage may occur. Regular maintenance checks are often automated through the transportation providers WMS software. Fuel prices have also affected transportation operations and how they develop their distribution networks. Many are moving towards a spoke-and-wheel strategy, bringing products closer to consumers. To learn more about produce transportation best practices and how the industry is adapting to the latest legislation read this brief SlideShare or contact Datex experts today at marketing@datexcorp.com or 800.933.2839 ext 243.

1. FOOD SUPPLY
CHAIN:
TRANSPORTING
FRESH FRUITS &
VEGETABLES

2. Transportation: A Critical Link in the Supply Chain
• Transportation providers play a more critical role than ever in the
fresh produce supply chain. Providing fast, efficient and sanitary last
mile delivery service can significantly impact the freshness and
quality of produce inventory.
• Consumers are becoming more educated about produce selections
that are available to them and therefore are more selective when
making their buying decisions. If produce transporters provide top
tier service, retail grocers can benefit from increased profits and
consumers may benefit from improved customer service and
product quality.

3. FSMA Sanitary Transportation of Human
& Animal Food Rule
• The Sanitary Transportation of Human & Animal Food Rule enforced by
the FDA has prompted many adjustments throughout the supply chain
to ensure the safety and quality of consumer food products.
• This legislation builds upon the 2005 Sanitary Food Transportation Act in
an effort to increase the stringency of existing inventory handling
regulations for food product transporters.
• While most commonly known for affecting transportation providers, this
legislation applies to all shippers, loaders, motor & rail carriers and
receivers of animal and human-grade food inventory.
• The FDA developed this FSMA rule to help prevent practices including
failure to properly refrigerate inventory during transport, inadequate
trailer cleansing between loads and failure to properly protect food
inventory.

4. Produce Inventory Packaging & Loading
• A large portion of fresh produce inventory loss or shrinkage is due to
damage during transit. Many shippers are over-loading containers
causing crushing.
• Protecting produce with proper packaging is one initiative to help
prevent damage during transit. If correct package sizing is used less
movement will occur, reducing bruising and crushing.
• Cartonization software is often used to assist warehouse staff in
selecting the proper packaging type. This can take the guess work
out of utilizing proper packaging.

5. Produce Inventory Packaging & Loading
• During loading it is also helpful to follow stacking rules and consider safe
weight distribution to further prevent damage. While this may decrease
overall load size it will increase the level of sellable goods for retailers. In
many warehouse management solutions these rules can be automated,
directing staff on how to most effectively load shipping containers in
order to prevent damage.
• WMS software can also direct users to load trailers in the most effective
order. Reverse loading is beneficial because handling is reduced during
delivery as products are unloaded in sequential order rather than being
moved around as needed. By minimizing handling the potential for
damaged inventory is reduced.
LIFO FILO

6. Inventory Temperature Monitoring
• During fresh produce transportation there is a delicate balance
between time and temperature. If the proper proportion is not
maintained inventory shelf life decreases.
• Controlling and monitoring temperature is critical throughout the
entire transportation process. Trailers should be pre-cooled prior to
loading, during loading and during transportation.
• This information should be recorded in inventory records to create a
detailed audit trail showing FDA FSMA compliance.

7. Delivery Vehicle Maintenance
• Maintaining vehicles properly is also a critical part of produce
transportation. Breakdowns can cause time delays and potential
inventory spoilage due to the already short shelf life of fresh fruits
and vegetable inventory.
• To avoid lost profits assign and record regular maintenance checks
on all vehicles and equipment. To further simplify this operation use
available transportation management solutions within your
warehouse management software.

8. Transportation Cost Implications
• Cost management has also played a significant role in modifying
traditional produce distribution methods.
• In many cases little to no additional processing is done on fresh fruit
and vegetables before being delivered to retailers. This leaves
transportation as a major cost driver for fresh produce.
• This has caused retailers to call for transportation network
improvements in order to reduce inventory costs and increase
profitability.

9. Fuel Prices Affecting Produce Costs
• The USDA Economic Research Service evaluated and published a report
“How Transportation Costs Affect Fresh Fruit and Vegetable Prices”. Here
they demonstrated that due to the limited processing required, fresh produce
prices are greatly impacted by fluctuating fuel costs. The relationship
between produce prices and fuel consumed during delivery is linear resulting
in varying prices by geographical region (shown below).
• In cases of imported produce, price is not impacted as severely by
fluctuating fuel prices. In order to remain competitive local growers must
identify transportation providers with optimized distribution networks that
can assist in lowering total handling costs and improving profit margins.
Fuelconsumption
Price

10. Optimize Produce Distribution Networks
• Many fresh fruit and vegetable transporters are optimizing
distribution networks by implementing cross docking. This alternative
delivery method shortens delivery cycles, reducing fuel costs and
produce prices.
• Establishing cross docking facilities in high volume geographical
areas creates shorter and more direct routes to customer locations.
The savings produced by shortening delivery distance can be passed
on to consumers in the form of lower product prices.

11. Implementing Best Practices
• The Produce Marketing Association identified best practices for
transporting fresh produce in their annual report. These
recommended practices showcased by Food Logistics can help in
efficiency improvement and cost reductions in the supply chain:
1. All members of the produce supply chain approach transportation issues and
disputes with an understanding of the impact on the business customer.
2. Shippers and receivers engage in collaborative sales and operational planning to
better cope with supply and demand management issues.
3. Supply chain efficiencies are maximized when there is a clear, ongoing
communication between all parties.
4. Pallet requirements negotiated between the shipper and the receiver rather than
assuming that carriers will be responsible for acquiring and/or disposing of
pallets.

12. Implementing Best Practices
5. Supply chain partners (shipper, carrier and receiver) agree to service level metrics
and expectations prior to moving a load or, in the case of an ongoing business
relationship, periodically review a scorecard of service level metrics and
expectations.
6. Shippers and receivers strive to build loyalty, confidence and trust with carriers
by addressing relevant environmental factors.
7. The Bill of Lading contains necessary information.
8. All supply chain partners need to understand, as well as comply with, the
requirements of the US Bioterrorism Act of 2002.
Many of these identified best practices require little investment but will
greatly improve efficiencies and reduce costs. Consider evaluating these
solutions for your fresh produce transportation operation.

13. Conclusion
• Implementing best practices and adapting your operation to meet
regulatory requirements will not only help keep your transportation
operation compliant, but can produce cost saving opportunities.
• In an industry where quality and price are key factors in the
consumer decision making process every competitive advantageis
critical.

14. Contact Datex Now
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