One area of innovation with plenty of untapped potential for the entire industry is data tracking and integration.
On the transportation side, Advanced Transportation Services, Inc. or ATS BB #:120506 in Visalia, CA, is moving forward.
“We’re making major investments in technology to ensure forward progress,” says Marshall Kipp, president and CEO of ATS.
He says new technologies can “improve driving efficiency, log in to drivers’ electronic logbooks for tracking purposes, create customer-facing portals with real-time information on truck locations, use data and analysis tools to integrate trends and market information to sales projections, and enhance API [application programming interface] connectability.”
For suppliers, costs and uncertainty have pushed some to limit inventories and reduce offerings.
“It’s much more turbulent than prior to the pandemic,” says Jin Ju Wilder, director of marketing and business development at Vesta Foodservice BB #:125924 in Los Angeles, CA, who adds that predicting volumes in the current landscape is difficult.
“Our customers say they’re returning to the office three days a week on a voluntary basis, but what does that mean in terms of volume?” As a result, Vesta Foodservice is looking into ways to better capture data for decision-making.
Retail, too, needs more data analysis and integration.
Eric Peters, CEO of Procurant, BB #:355257 based in Watsonville, CA, says many retail systems for produce are 15 to 20 years old, and data is often stored in different places. “That’s okay for cereal or Pepsi, but not for 700 to 800 suppliers in the produce category.”
He says retailers want a more holistic view of their businesses.
“In the next three to five years, supply chain, procurement, and food safety all will start to merge,” he predicts. “Now they’re in separate silos, but it will become a more integrated process. The industry must step up its game in how it collects and shares this information.”
Transportation
Similar trends are occurring in transportation.
“We’re seeing consolidation of multiple data streams and an increased emphasis on data analytics,” says Amy Childress, vice president of monitoring, cold chain at Emerson Cargo Solutions BB #:194324 in Boise, ID, noting Emerson’s data-integration capabilities allow it to partner with its customers to provide consolidation and meaningful insights. “The key is understanding what’s holistically happening in the supply chain.”
Emerson introduced its Oversight cargo services suite in 2022, available on its own or in combination with any of its other modules.
“By automating and consolidating these processes, data integration can reduce the amount of time required for each shipment by 80 percent or more,” Childress says.
There are some challenges ahead when it comes to making data integration a reality.
“I’m watching what’s happening in the area of data interoperability,” says Ed Treacy, vice president of supply chain and sustainability for the International Fresh Produce Association BB #:378962 in Newark, DE.
“The industry is realizing we spend far too much time and effort reformatting data and inefficiently sharing it, because systems cannot seamlessly share data between trading partners. There are a few initiatives underway that are tackling this issue.”
Sustainability is another area where tech innovation is blossoming.
“Sustainability was a buzzword, but now people are looking for metrics, and that falls into the agricultural technology arena,” says Matt Seeley, CEO for the Organic Produce Network, LLC BB #:338018 in Monterey, CA.
ProduceIQ, a B2B platform for fresh produce, is working on a free food waste “alarm” or ticker tool, which it will make available in 2023.
“Farms are one of the primary sources of food waste, and it’s mostly price-driven,” observes Mark Campbell, cofounder and CEO of ProduceIQ, Inc. BB #:368175 in West Palm Beach, FL.
If prices are too low, a grower might stop harvesting, especially for lower-grade items. The new ProduceIQ ticker system alerts buyers when prices go down to a specific level, which then encourages them to offer deals to move more volume. Prices then stay above the desired level to the benefit of both buyers and sellers, more product is moved, and food waste is reduced.
Transforming digitally
Campbell says that the produce industry is behind most others in the digital transition realm, but he says there is a desire for better technology, especially when integrated into what’s already in use every day.
ProduceIQ’s core business is an online marketplace to connect retailers and suppliers.
“An easy-to-use online platform is a big step forward from handshake deals,” Campbell says, reporting that 180 companies are registered on the platform as of October 2022. He says interest has increased since the start of the pandemic. “There’s less skepticism than even three years ago. The pandemic was a dramatic catalyst for online transactions.”
For retailers, the produce department is the least digitally connected, but that’s starting to change.
“Retailers are trying to reimagine their produce and perishables operations,” Peters says. “They want to see how they can automate everyday tasks to have more time to focus on the unplanned problems that come up.”
Procurant is invested in the digital evolution with its new iPad solution, Inspect, which helps speed up inspections. Good loads get through fast, and if there’s a problem, it can be addressed.
“That’s why it’s been so successful for us,” Peters says. “It allows them to move quickly through the process and focus on where quality is an issue.”
In transportation, real-time tracking remains a priority. “The global supply chain challenges facing all industries have driven increased interest in our GO real-time tracker offering,” Childress says.
“Having the quality information and the logistics tracking information helps both our food producer customers and retail/restaurant customers be apprised of when their loads will arrive and have the confidence to know if there has been a problem along the way.”
This is an excerpt from the cover story in the January/February 2023 issue of Produce Blueprints Magazine. Click here to read the whole issue. https://apps.bluebookservices.com/BBOS/LearningCenter/BP/January%202023/eBook/index.html
