Food Shippers of America - Fall/Winter 2017 - 46

limited to, corn, soybeans or barley.
For example, corn leaves the farm and
moves to a bulk processor where it
is converted into high fructose corn
syrup, corn starch or other corn-based
commodities. Next, the high fructose
corn syrup moves to an additional
food/beverage processor where it is a
key ingredient in soft drinks. Another
example of a product in this stage
would be moving barley via truck or rail
to a bulk processor where it is malted,
then to a brewery where it is used to
produce beer.
A third example is grain shipped from
the farm via a rail shuttle train to its
feed mill destination. Once at the mill,
the corn will be added to a feed ration
and fed to livestock. The livestock
produces milk or meat. The milk is
taken to the food processor where it
can be turned into cheese, yogurt and
protein powder. Meat can be moved
to a food processor to create prepared
foods or simply shipped fresh to retail
distribution.
Food Processing to Distribution
Now that the product is store-ready, we
have an abundance of transportation
and logistical options to move our
product to final distribution. To make
this move, some producers choose
a forward distribution model, others
centralize their freight and ship
directly to receivers' distribution
points, while other producers have
more perishable products and manage
a very low inventory position/high
velocity model to maximize the time
their product is on a store's shelf.
Managing the cost to service ratio of
modal options such as single and team
driver trucks, intermodal, rail, LTL and
air in conjunction with the trade offs
of different warehousing/inventory
strategies is one area where the
logistics manager can provide tangible
benefits to the company.
However, possible cost savings
practices must be considered while
weighing the risk of stock outs in
today's high SKU environment. Factors
to consider as you start to look at what
modal/warehousing/inventory strategy

46

| FALL/WINTER 2017

Food Processor to
Distribution Center

Distribution Center to
Consumer

GROCERY

WEB INTERFACE
FOOD PROCESSOR

DISTRIBUTION CENTER

CONSUMER

RETAIL

RESTAURANTS

best suits your company include the
quantity of product shipped, product
density (weight), SKU complexity,
perishability, length of haul, fragility,
cost of the product, seasonality and
location of labeling functions. By
weighing the impact of these product
characteristics, supply chain managers
will be better equipped to make the most
cost-efficient transportation decision.
From Distribution to the Consumer
Finally, the product makes its final trip
to the consumer. The consumers obtain
these products via four major channels:
the grocery store, web interface, big
box retailers and restaurants. This final
stage of the processed food distribution
channel is changing rapidly. Products
currently moving through the traditional
grocery and big box channels are at
least partly shifting to a web interface
and home delivery methodology. This
final stage will continue to evolve as
millennials gain more influence and
disposable income. Technology will also
be a key factor. This final stage receives
significant attention in the press with
events such as Amazon purchasing
Whole Foods in an effort to broaden
and simplify the customer experience
as well as the success of companies
that are focusing on home delivery.
However, the initial three stages of the
processed foods supply chain are similar
regardless of the final delivery method.
For example, web interface providers
have large distribution centers located
near large cities similar to traditional
grocery stores. Truckloads inbound

to final distribution are broken into
smaller delivery quantities at these
facilities regardless of the fourth
stage of the distribution channel.
Overall, the transportation and
logistical requirements for the
processed food supply chain vary by
product and by stage. Rail may be a
superior choice in certain instances,
while truck or intermodal may be a
better choice in others. Combining
that modal choice with the most
effective warehousing/inventory
management strategy can enable you
to achieve greater results with your
limited logistics budget.
In the next issue, we will focus on
optimizing the third stage of the
distribution channel and provide
a methodology to evaluate which
combination of transportation and
warehousing/inventory management
is most appropriate. Each step
of the food chain process may be
evaluated through this method;
however, we will focus on the
processing to distribution center
stage of the food chain. The solution
you select in that segment may
be the key to accomplishing your
financial goals while exceeding your
customers' expectations. ■
Sam B. Hughes is AVP, food and
refrigerated products, and Natalie
Ortega is account representative,
food and refrigerated products, at
Union Pacific Railroad.



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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