Of all industries, the food industry needs data and visibility in the supply chain readily available when it comes to their shipping. Many food products are perishable and need to deliver in a specific timeframe to be able to be used. Recalls and claims can cost a lot to a manufacturer, causing them to lose revenue. The technology to keep data easily accessible can also cost quite a bit. Yet, food manufacturers outsourcing to a 3PL can gain benefits outside of just having their shipments arranged.
Quality Food Products Delivered
No matter the type of food – raw, cold, frozen, canned, produce – it all has a sell-by date and a proper way to be handled. Your customers want the best-looking product with the longest shelf life available when delivered. Having visibility into your shipping offers you insight into your product’s quality and helps you keep your customers happy.
Shipping temperature-sensitive items? Check out our Temperature Shipping Guide.
FSMA & Recalls
The Food Safety Modernization Act (FSMA) and the rise of recalls add in extra pressure for the food industry to have visibility. If food is not handled safely, you can face criminal penalties. Additionally, no one wants to be faced with the adverse publicity and expense of a recall. According to a study by the Food Manufacturing Institute and Grocery Manufacturers Association, a company faced with a recall can expect an average of $10 million in direct costs, in addition to the damage to their brand and lost sales.
Visibility Is Important In The Food Industry
Visibility in the food supply chain is becoming something that is moving from the Wish List to the Required List. A shipment’s whereabouts are critical in determining actions that may be needed to provide the best customer service and make sure products are delivering intact and on time. Sophisticated brands are ditching their manual and time-consuming processes and replacing them with technology to operate more efficiently while gaining more visibility into their operations than before. With food safety always in mind for this industry, there is a big advantage for those with end-to-end visibility into their operations. But technology comes at a price.
Shippers need to work with strategic vendors who can provide them the technology tools needed for full visibility. They need to choose vendors who can put into place those tools and manage control when necessary to keep operations moving and to stay competitive in the market. To reduce costs and gain a helping hand, food manufacturers can choose to outsource to a 3PL for both their transportation needs and technology.
Technology 3PLs Offer
We all know that outsourcing to a 3PL reduces the stress and workload of finding a carrier to move your freight. 3PLs such as Trinity Logistics, take over the responsibilities of vetting the carriers they work with, making sure they have the proper credentials, insurance, and experience for your freight. But they also offer you access to their technology for all sorts of needs. Technology to track your shipment from pick up to delivery, automate workflows, engage in collaboration with supply chain partners, and more.
Transportation Management Systems
One such piece of technology offered is Transportation Management Systems or a TMS. A TMS can help your business gain visibility into your supply chain, create new efficiencies, and automate your manual workload, so you can focus on keeping your customers happy and the orders coming. When using a 3PL, such as Trinity Logistics, you often have options to choose in how you want to integrate your TMS. With Trinity, we offer you a choice of:
- Software as a Service (Saas)
- Managed Services
- Integrated TMS
You get to choose how integrated you want the technology to be with your data and get a specialist to work with you every step of the way. No matter what option you choose, you gain the visibility you are looking for in your supply chain.
What Are You Waiting For?
As a food manufacturer, you need to track your supply chain to stay efficient and safe. Gaining supply chain visibility with technology is needed to stay competitive in your industry and outsourcing to a 3PL can reduce expenses for that investment. Taking advantage of their technology offerings, such as a TMS, can provide you insight and improvements.
Trinity Logistics is well-versed in the food industry and understands your need for visibility. Our team of experts is here to help you manage your operations, offer you the data you want, and give you the choice of how you want to integrate that technology and receive that data.
Are you ready to see what visibility you are missing in your supply chain?
Food manufacturers have to stay on top of changes, so they don’t fall behind or lose loyal customers. Consumer trends and interests often change, or other market disruptions come out of nowhere. Consumers today care more about health, fast shipping, and the environment. Food safety regulations and unexpected disruptions like the coronavirus have changed the market. Food manufacturers benefit when they choose an experienced 3PL provider who stays informed and can adapt to any changes quickly. This makes for less stress and reduced or no losses in business.
Health Conscious Consumers
Consumers are becoming more health-conscious with their food. They want fewer additives and more natural, organic products. Consumers are buying vegan or plant-based alternatives; food that fits their diet such as Keto, carnivore, or macro-counting. Fewer additives and healthier food mean fresher food with shorter shelf lives. This means quick shipping to keep food fresh and your consumers happy.
Faster Shipping
Due to the Amazon Effect, consumers expect even quicker shipping on everything. Shopping at brick and mortar shops is declining and consumers want to order everything online. According to studies by both Neilson and the Food Market Institute, fifty percent of Americans now buy all of their grocery products online. They want subscription boxes, such as ButcherBox, or meal subscriptions, like HelloFresh, delivered to their doorsteps. Direct to Consumer (D2C) is growing across all industries, especially the food industry.
Environmentally Mindful
With climate change being a hot topic, consumers are more aware of their carbon footprint now more than ever. They want less packaging used for the products they order. They want to know how the brands they shop from stay green and reduce their environmental impact; starting with how the product is made, to the packaging, the shipping, and more. Consumers worry more about how their impact on the environment and that falls back on the manufacturer as well.
Federal Regulations
On top of consumers’ changing demands, there are regulations to keep on top of as well. In recent years, food safety in transportation became a concern, so the Food Safety Modernization Act (FSMA) was created. FSMA is still a newer regulation that was put in place April 2017. Food safety in transportation is important, so there could still be changes to the regulation in the future.
Unexpected Disruptions
The novel coronavirus (COVID-19) rapidly made an impact on food manufacturers in 2020. Uncertainty from the virus caused consumers to buy out grocery stores, creating a high demand for those products. Restaurants shut down or switched to take-out only, causing a reduction in sales. Food manufacturers and the transportation providers they work with had to adapt fast. Hopefully, a crisis like COVID-19 does not happen again, but it is good to be ready for anything and be able to make changes quickly when needed.
Choosing a 3PL provider who stays on top of consumer trends, regulations, and other changes in the food manufacturing industry is important. Having someone who understands your challenges makes working to meet your customer’s demands an easier task.
Trinity Logistics stays informed about what goes on in the food manufacturing industry to better serve you. Concerning the changes mentioned above, Trinity Logistics;
• Makes use of many modes to arrange timely shipping for your natural and organic products.
• Through our parent company, Burris Logistics, we are able to offer you D2C services for faster shipping.
• Is SmartWay certified and has shipping arrangements that are better for the environment.
• Stays knowledgeable on federal regulations that may change shipping practices.
• Are ready to adapt to any huge industry disruption to keep your freight and supply chain moving.
Arranging the shipment of food has become a specialty of Trinity Logistics. When you come to us with problems, we’ll be there ready to offer you solutions. You can count on us.
Ready to work with a 3PL provider you can rely on?