Food Shippers of America - Fall/Winter 2017 - 45

R A I L
U P D A T E

Gaining Efficiencies Through

Modal Selection
by Sam B. Hughes and Natalie Ortega

T

he food industry today is under price pressure from its customers while also being
challenged to improve its margins. Several large players in the industry have
consolidated as the center of the grocery store continues to shrink. As a manager
of a company's supply chain, how do you reshape your company's distribution

strategy to realize efficiencies and help support the company's cost reduction needs? With recent
industry consolidations, logistics managers may be less familiar with all modal and logistical
opportunities available to them. One of the opportunities to drive efficiency in a company's
logistics chain is to find the most cost effective mode for each product as it moves to market.

In this and future articles we will step
back and look broadly at the processed
food supply chain to examine the
industry's transportation and
logistics choices as they stand today.
By inspecting industry managers'
decision making, we will analyze how
rail, truck and other modal options
participate in the supply chain and
outline a methodology to most
efficiently use each mode. Based on
the characteristics of each product, we
may be able to assist managers with
additional tools to determine a more
cost effective transportation plan than
they are using today.
Inbound Ingredients to Farm
To get started, let's review what a
sample processed food supply chain
looks like. Today, farmers receive
fertilizer by a combination of railroad
and truck. The three types of fertilizer
most commonly used - potassium,
phosphorus and potash - are mined
and processed in different parts of

the country. For example, potash is
mined in the South and transported via
rail and truck for delivery to regional
warehouses or sales locations for
ultimate distribution to the farm. These
products' characteristics are large
quantities, lack of perishability and
remoteness from the location where
the product is used. Additionally,
the product is transferred into an
application vehicle in bulk format
for its use in the fields. This first

segment of the processed food supply
chain is more industrial in nature and
its products naturally move in bulk
vehicles, making rail and bulk trucks
an efficient modal choice.
Farm to Food Processing
Crops moving from the farm to a food
processor have differing logistics
requirements, depending on the
commodity as well as the geography.
These crops include, but are not

Preparing to Grow

Farm to Food Processor

BULK PROCESSOR

FOOD PROCESSOR
ROC

FERTILIZER

FARM

FEED

FOOD SHIPPERS OF AMERICA | www.foodshippersofamerica.org |

45


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Table of Contents for the Digital Edition of Food Shippers of America - Fall/Winter 2017

President's Letter
Help Wanted
The Value in Orchestrating a Scheduled Transportation Plan
Building Better Supply Chains with Blockchain
Blockchains for Trucking
Truck Platooning
Regulatory Update
Rail Update
Evolution of Logistics: Developing Our Leaders of Tomorrow
Dinner at the Door
Industry Forecast
Retail Trends
Food and Beverage Industry Undergroing Transformation
Not My Tribe: Beyong Millennial Stereotypes
Where Did the Milk Go?! Or, Why You Should Optimize Your Website Before Redesigning It.
Burris Logistics
Vantix Logistics
FSA Members
Membership Application
Index of Advertisers
Food Shippers of America - Fall/Winter 2017 - Intro
Food Shippers of America - Fall/Winter 2017 - cover1
Food Shippers of America - Fall/Winter 2017 - cover2
Food Shippers of America - Fall/Winter 2017 - 3
Food Shippers of America - Fall/Winter 2017 - 4
Food Shippers of America - Fall/Winter 2017 - 5
Food Shippers of America - Fall/Winter 2017 - 6
Food Shippers of America - Fall/Winter 2017 - 7
Food Shippers of America - Fall/Winter 2017 - 8
Food Shippers of America - Fall/Winter 2017 - 9
Food Shippers of America - Fall/Winter 2017 - 10
Food Shippers of America - Fall/Winter 2017 - President's Letter
Food Shippers of America - Fall/Winter 2017 - 12
Food Shippers of America - Fall/Winter 2017 - 13
Food Shippers of America - Fall/Winter 2017 - Help Wanted
Food Shippers of America - Fall/Winter 2017 - 15
Food Shippers of America - Fall/Winter 2017 - 16
Food Shippers of America - Fall/Winter 2017 - 17
Food Shippers of America - Fall/Winter 2017 - 18
Food Shippers of America - Fall/Winter 2017 - 19
Food Shippers of America - Fall/Winter 2017 - 20
Food Shippers of America - Fall/Winter 2017 - The Value in Orchestrating a Scheduled Transportation Plan
Food Shippers of America - Fall/Winter 2017 - 22
Food Shippers of America - Fall/Winter 2017 - 23
Food Shippers of America - Fall/Winter 2017 - Building Better Supply Chains with Blockchain
Food Shippers of America - Fall/Winter 2017 - 25
Food Shippers of America - Fall/Winter 2017 - 26
Food Shippers of America - Fall/Winter 2017 - 27
Food Shippers of America - Fall/Winter 2017 - 28
Food Shippers of America - Fall/Winter 2017 - 29
Food Shippers of America - Fall/Winter 2017 - 30
Food Shippers of America - Fall/Winter 2017 - 31
Food Shippers of America - Fall/Winter 2017 - 32
Food Shippers of America - Fall/Winter 2017 - Blockchains for Trucking
Food Shippers of America - Fall/Winter 2017 - 34
Food Shippers of America - Fall/Winter 2017 - 35
Food Shippers of America - Fall/Winter 2017 - Truck Platooning
Food Shippers of America - Fall/Winter 2017 - 37
Food Shippers of America - Fall/Winter 2017 - 38
Food Shippers of America - Fall/Winter 2017 - 39
Food Shippers of America - Fall/Winter 2017 - 40
Food Shippers of America - Fall/Winter 2017 - Regulatory Update
Food Shippers of America - Fall/Winter 2017 - 42
Food Shippers of America - Fall/Winter 2017 - 43
Food Shippers of America - Fall/Winter 2017 - 44
Food Shippers of America - Fall/Winter 2017 - Rail Update
Food Shippers of America - Fall/Winter 2017 - 46
Food Shippers of America - Fall/Winter 2017 - 47
Food Shippers of America - Fall/Winter 2017 - 48
Food Shippers of America - Fall/Winter 2017 - Evolution of Logistics: Developing Our Leaders of Tomorrow
Food Shippers of America - Fall/Winter 2017 - 50
Food Shippers of America - Fall/Winter 2017 - 51
Food Shippers of America - Fall/Winter 2017 - 52
Food Shippers of America - Fall/Winter 2017 - 53
Food Shippers of America - Fall/Winter 2017 - 54
Food Shippers of America - Fall/Winter 2017 - 55
Food Shippers of America - Fall/Winter 2017 - 56
Food Shippers of America - Fall/Winter 2017 - 57
Food Shippers of America - Fall/Winter 2017 - 58
Food Shippers of America - Fall/Winter 2017 - 59
Food Shippers of America - Fall/Winter 2017 - 60
Food Shippers of America - Fall/Winter 2017 - 61
Food Shippers of America - Fall/Winter 2017 - Dinner at the Door
Food Shippers of America - Fall/Winter 2017 - 63
Food Shippers of America - Fall/Winter 2017 - 64
Food Shippers of America - Fall/Winter 2017 - 65
Food Shippers of America - Fall/Winter 2017 - 66
Food Shippers of America - Fall/Winter 2017 - 67
Food Shippers of America - Fall/Winter 2017 - 68
Food Shippers of America - Fall/Winter 2017 - 69
Food Shippers of America - Fall/Winter 2017 - 70
Food Shippers of America - Fall/Winter 2017 - 71
Food Shippers of America - Fall/Winter 2017 - 72
Food Shippers of America - Fall/Winter 2017 - 73
Food Shippers of America - Fall/Winter 2017 - 74
Food Shippers of America - Fall/Winter 2017 - Industry Forecast
Food Shippers of America - Fall/Winter 2017 - 76
Food Shippers of America - Fall/Winter 2017 - Retail Trends
Food Shippers of America - Fall/Winter 2017 - 78
Food Shippers of America - Fall/Winter 2017 - 79
Food Shippers of America - Fall/Winter 2017 - 80
Food Shippers of America - Fall/Winter 2017 - Food and Beverage Industry Undergroing Transformation
Food Shippers of America - Fall/Winter 2017 - 82
Food Shippers of America - Fall/Winter 2017 - 83
Food Shippers of America - Fall/Winter 2017 - 84
Food Shippers of America - Fall/Winter 2017 - 85
Food Shippers of America - Fall/Winter 2017 - 86
Food Shippers of America - Fall/Winter 2017 - 87
Food Shippers of America - Fall/Winter 2017 - 88
Food Shippers of America - Fall/Winter 2017 - 89
Food Shippers of America - Fall/Winter 2017 - 90
Food Shippers of America - Fall/Winter 2017 - Not My Tribe: Beyong Millennial Stereotypes
Food Shippers of America - Fall/Winter 2017 - 92
Food Shippers of America - Fall/Winter 2017 - 93
Food Shippers of America - Fall/Winter 2017 - Where Did the Milk Go?! Or, Why You Should Optimize Your Website Before Redesigning It.
Food Shippers of America - Fall/Winter 2017 - 95
Food Shippers of America - Fall/Winter 2017 - 96
Food Shippers of America - Fall/Winter 2017 - Burris Logistics
Food Shippers of America - Fall/Winter 2017 - Vantix Logistics
Food Shippers of America - Fall/Winter 2017 - 99
Food Shippers of America - Fall/Winter 2017 - 100
Food Shippers of America - Fall/Winter 2017 - FSA Members
Food Shippers of America - Fall/Winter 2017 - Membership Application
Food Shippers of America - Fall/Winter 2017 - Index of Advertisers
Food Shippers of America - Fall/Winter 2017 - 104
Food Shippers of America - Fall/Winter 2017 - 105
Food Shippers of America - Fall/Winter 2017 - 106
Food Shippers of America - Fall/Winter 2017 - cover3
Food Shippers of America - Fall/Winter 2017 - cover4
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