Nationwide Study Identifies Food Logistics Challenges and Trends

Lakeland, Fla., Jan. 23, 2007 — Cross-docking is increasing, paper-based order-pick methods are still most common, and the vast majority of food and beverage companies outsource some or all of their transportation. These are just some of the findings from the 2007 Food Logistics Industry Report, a new white paper on the state of the food logistics industry, released today by Saddle Creek Corp., a nationwide third-party logistics services company.

The white paper is based on a survey of more than 100 executives involved in the warehousing and/or transportation management of food and beverage products in the United States. It identifies common practices, challenges and emerging trends in the food logistics industry. The majority of respondents are grocery companies, food and beverage processors or 3PLs located throughout the United States.

Research highlights include:

• Capacity problems and the driver shortage are still top concerns for the food logistics industry, with 43.2 percent of respondents naming capacity as the biggest logistics challenge they face and 24 percent citing driver shortage. Customer demands are a key concern for about 20 percent of respondents.
• Food and beverage manufacturers are establishing more forward distribution centers to enhance responsiveness and accommodate changing delivery needs.
• Leading food manufacturers and retailers are devoting considerable resources in order to integrate information systems with their trading partners using both EDI and, more recently, web-based internet systems or e-market hubs/exchanges.
• Food shippers are interested in developing collaborative relationships with third-party logistics providers to create leaner, more efficient logistics practices within their supply chain. Nearly two-thirds of respondents (63.5 percent) outsource some or all of their transportation.
• Order pick methods continue to be largely paper-based, but both RF and voice-directed technology are growing.

"We're continually striving to better understand our customers and their needs as part of our ongoing commitment to creating value and ensuring service excellence," said Bruce Abels, president of Saddle Creek Corp. "Food logistics is a critical part of our business, and this research helps to paint a picture of the state of the marketplace right now. We felt it was important to share this information with the industry."

To access a complete copy of the 2007 Food Logistics Industry Report, go to www.saddlecrk/fl.

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About Saddle Creek Corp.

Saddle Creek Corp., headquartered in Lakeland, Fla., provides integrated warehousing, transportation, and value-added services nationwide. For more information, visit www.saddlecrk.com.

Contact:

Stephen G. Cook,
Vice President,
Saddle Creek Corporation
Telephone: 863/668-4316
E-Mail: stephen.cook@saddlecrk.com

Brian Everett
Senior Partner,
MindShare Strategies, Inc.
Telephone: 952/442-5638, ext. 201
E-Mail: media@mindshare.bz

Download the 2007
Food Logistics Industry Report.

Saddle Creek Newsroom