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The Food Shippers of America Blog

Connectivity: The Key to Ready Your Supply Chain

by Brian Everett, on Feb 10, 2025 10:23:11 PM

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As global food chains become increasingly complicated, food companies need the best talent who bring productivity and efficiencies, strong logistics partners that understand their needs and exceed expectations, and robust technology platforms that optimize visibility and streamline operations. You now can download the digital edition Edition 1 2025 of Food Chain Digest, the official magazine of Food Shippers of America (FSA). This edition covers many of these food chain connectivity issues that involve talent management, outsourcing and technology.

Connecting the Talent You Need

Food companies that deploy a strategic, systematic approach to sourcing, recruiting, developing, and retaining talent are the most successful. Key roles in modern supply chain management include purchasing, operations, logistics, resource management, and information workflow/systems.

As the industry becomes more digitized, automation in plants, fulfillment centers, procurement, production planning and maintenance is eliminating jobs – yet there’s still insufficient talent to meet demand. In this digital edition, you’ll find helpful content focused on talent management in the feature article Recruiting Young Supply Chain Talent starting on page 24 and Women Mean Business: Gender Diversity in the Supply Chain starting on page 28. Download Food Chain Digest now.

Connecting Logistics Partners to Support Your Food Chain

Selection and management of your key intermediaries, rail/intermodal providers, and ocean carriers/maritime players with specific core specialties can contribute to building and maintaining an effective, productive supply chain. Yet, there are many forces playing into how these logistics players are succeeding (or not) in the marketplace today – and their performance is critical to yours’ as well.

For example, there has been significant turmoil in the trucking market over the last several months, with a sharp downturn in consumer demand which has left motor carriers with a lingering surplus of capacity, a relative dearth of freight demand, and a plunge in rates.

The 3PL sector faces significant challenges as well, such as low freight rates and excess capacity. This could lead to further consolidation among 3PLs, especially smaller players and those reliant on venture capital funding. In addition, as the market anticipates improved conditions there is an opportunity for larger players to invest in internal capabilities and for shippers to lock in favorable rates and improved productivity commitments.

In the rail industry, the largest Class I railroads experienced this last year a challenging financial environment, including rising operating ratios, a 2% decline in revenue last year compared to 2022, and an 11% decrease in operating income. These financial reversals have been driven primarily by intermodal volume decreases, service challenges, inflationary pressures, and escalated fuel and labor expenses.

Lastly, the warehousing/distribution sector has been defined by a pullback from extreme conditions caused by the pandemic. Persistent inventory levels are another factor building a floor for vacancy and pricing but an elongated recession scenario could break that resistance. As companies look for ways to improve capacity in existing space, demand for new warehousing space has softened and subleasing has hit a decade high.

With this backdrop of market conditions, refer to the feature article The Power of Partnership starting on page 12 and the list of Top Food Chain Providers starting on page 16 of this digital edition of Food Chain Digest. Download your digital edition now.

Connecting Technology to Your Operations

There’s no question that rapidly emerging technologies and IoT is accelerating the pace of change in the food chain. For example, food companies are well aware of the growing threat of cyberattacks on their company and its supply chain.

Supply chain disruptions have altered the cybersecurity threat landscape, resulting heightened business risks. In addition, the age of generative artificial intelligence (AI) continues to drive radical change across the food industry.

Across end-to-end supply chain networks, CSCOs are capitalizing on this reinvention of the way people work, access data insights, and generating information.

Much of the cover story Strategies to Navigate Supply Chain Disruptions starting on page 6 of the digital edition of Food Chain Digest addresses the importance of diversification of suppliers and partners and integrating technology for real-time visibility and data analytics.

There’s lots of information to consume in this digital edition – and it’s free for anyone to download. Get the most out of it and enjoy!

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Disclaimer: The views and opinions expressed in articles within the FSA Blog are those of the authors/submitters and do not necessarily reflect the views or positions of Food Shippers of America.

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