Perishable Transportation Perishable Transportation and ...

Perishable Transportation Perishable Transportation and Supply Chain Logisticsand Supply Chain Logistics

Sponsored by:Sponsored by:NatureWorksNatureWorks LLC LLC

•CONVENTIONAL RAIL

•BLOCKS

•INTERMODAL

•UNIT TRAIN

TRUCKING ALTERNATIVES

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.

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.

Think Outside the Refrigerated Box

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 tolook out for their interests.

Mandate temperature recorders – if you can prove that temperature wasn’t the problem, it becomes somebody else’s problem.

Don’t Lose Your Cool

May 2008

United Fresh, Las Vegas 2008

Costco

Packaging & Operations TrackPerishable Transportation & Supply Chain Logistics

Getting fresh produce from point A to point B is never a straight lineMany factors affect perishable logistics in today’s marketplace such asDriver shortages, rising fuel costs, food safety, and legislative issues.

In this session, transportation specialists will discuss solutions beingEmployed to address key challenges, dispel misconceptions, and exploreNew technologies being utilized to streamline perishable logistics.

Moderator: Craig Cahill, Director / Perishable LogisticsAllen Lund Company

Speakers:Paul Esposito, General Manager, Railex, LLCRoy Kane, Cooseman’s Worldwide, Inc.Carl Swartz, Corporate Transportation Mgr. - Perishables, Kroger Co.

Panel Members

Carl Swartz

OUR ULTIMATE CHALLENGE

HOW TO REDUCE TOTAL SUPPLY CHAIN COSTSWHILE SUPPORTING KROGER’S “FOUR KEYS”WHICH ARE FOCUSED ON PEOPLE, PRICEPRICE, SELECTION AND SHOPPING EXPERIENCESHOPPING EXPERIENCE

COST COMPONENTS OF KROGER’S SUPPLY CHAIN

Freight (inbound to DC) 5%Freight (inbound to DC) 5%

Store Handling / Lost Sales / Shrink 9%

Product / Procurement 82%

Warehousing / Cost of Inventory 3%

Freight (outbound to store) 1%

Cross Functional Problems Require Cross Functional Solutions

CHALLENGES

fuel costslinehaul costsseasonal capacitydriver shortage

emissions regulationshours of service

product rejectionscarrier performance

cost of equipment detention & reconsignment

PRODUCE & FLORAL TRANSPORTATIONPRODUCE & FLORAL TRANSPORTATION


0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

2003 2004 2005 2006 2007

FSC AS A % OF TOTAL FREIGHT RATE

% OF CPM

$0.00$0.25$0.50$0.75$1.00$1.25$1.50$1.75$2.00$2.25$2.50

2003 2004 2005 2006 2007

FREIGHT RATE PER MILE

CPMFSC

Impact of the risingcost of diesel fuel


Allen LundAllen Lund’’s Super High Gas Mileage Ultra Low Emissions Tractors Super High Gas Mileage Ultra Low Emissions Tractor

HaulAss 2020

KROGER’S SECRET WEAPON TO COMBAT RISING FUEL PRICES

CHALLENGES

fuel costslinehaul costsseasonal capacitydriver shortage

emissions regulationshours of service

product rejectionscarrier performance

cost of equipment detention & reconsignment


TOOLS & INITIATIVESmgmt tools

technology tools future initiatives

carrier friendly initiatives

strategic initiatives

MANAGEMENT TOOLS


on-time delivery report

carrier scorecard

claims mgmt

routing guides

carrier meetings

TECHNOLOGY TOOLS


web-based transportation mgmt

in-transit temp tracking

downloadable reefers

on-line appt scheduling

location tracking

STRATEGIC INITIATIVES


continuous moves

dedicated tours

annual bids

capacity hedging

lane level single sourcing

volume commitments

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

FUTURE INITIATIVES


increased utilization of drop trailers

pick-up optimization

enterprise transportation mgmt solution

efficiency improvements at our DC’s

IN CONCLUSION……….


Become the “shipper of choice”

Always measure performance

Build relationships with carrier partners

Keep service priority #1, cost #1A

Stress over-communication

QUESTIONS?


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