< Previous40 Food & Drink International www.fdiforum.net WAREHOUSING OPTIMISATION Efficiency is always going to be the most important factor and the advent of COVID-19 and the lockdown hasn’t done much to change that – it’s just added new obstacles. The balance between minimising costs and maximising throughput, isolating and identifying factors that cause delays or problems becomes increasingly important. Now, however, maintaining levels of hygiene and social distancing are becoming even more paramount, but despite the difficulties faced and the obvious problems, COVID-19 may in fact be making the supply chain more streamlined. That’s not to say it is a good thing or that COVID-19 is “helping” but much like companies learning to be leaner and more efficient during the recession based around the credit crunch, the lockdown is enabling companies to take a long look at their processes and make Finding the right balance Lean, efficient, COVID-19 proof. The new pressures on warehouse and distribution centres are known by all, but will the latest addition of coronavirus finally push the industry towards automated warehouses? 40-43.qxp_Layout 1 27/11/2020 10:43 Page 1Food & Drink International 41 www.fdiforum.net WAREHOUSING OPTIMISATION changes. Some of these changes may, if beneficial, continue to be run after lockdown is over. Optimisations may result in the need for les staff, leaner rotas and better care taking in distribution centres, but it’s going to be important to not slip back into bad habits once it’s all over. We’ve long since touted the benefits of automation here, and the lockdown may be offering yet one more reason to look for automated centres for the future. It’s worth noting that automated warehouses don’t truly attempt to live in a world where humans don’t exist. There is likely to be a team monitoring an automated warehouse from another location, ensuring that everything runs efficiently and running the warehouse. Even then, however, it would be a much smaller team, enabling social distancing and more space between employees, and even allowing the possibility of several key members of staff to work from home. By cutting out manpower there is less risk for accidents or mistakes. While `to err may be human` is all well and good, it’s not something that will placate major customers who haven’t received their shipment on time, or who now have lost or damaged stock. Automated systems reduce the chance of human error. Of course they do not completely remove the potential for accidents, such as a wooden pallet splintering – a fully automated system also cannot be injured by the resultant mess. Space is another benefit to an automated system. Walkways and mezzanine floors can be unnecessary if a distribution centre is set out properly. Aisles could theoretically be removed entirely if a warehouse was to use roof- mounted shuttles or cranes to move goods about. But even if a company preferred to use remote-operated forklifts, there would be less requirements in terms of the width of aisle – a remote forklift unit of course not needing to be as wide as a normal one, due to its lack of a driver cabin. Software, specifically Supply Chain Management Software, can also help in this regard, especially with accurate summation of stock incoming and outgoing, but also where it is stored and what employees will be available at the time that it is required to be shifted. Any delays at the distribution part of the supply chain, especially if caused by not having the correct SCM in place can be catastrophic, as it is distribution centres which commonly deal with directly with the final client – introducing that age-old risk of failing to satisfy and thus losing a key contract. With the food and drink retail market dominated by a few very powerful © Shutterstock /hacohob 42 Á 40-43.qxp_Layout 1 27/11/2020 10:43 Page 242 Food & Drink International www.fdiforum.net WAREHOUSING OPTIMISATION retailers, manufacturers can ill-afford to suffer any lost confidence with these major clients. So what is holding companies back? Costs remain an important factor, with a fully automated warehouse system requires not only specialist machinery and software, but also a lot of planning and preparation. For existing warehouses it might mean alteration, or removal of all existing systems, which would lead to a lot of wastage. While for new builds, there is already such high investment being utilised for distribution centres that adding another facet to the mix in what is already a tough economic climate, simply isn’t desirable. Return on investment tends to be a little slower with fully automated systems, despite high labour costs. Naturally, all this is compounded thanks to the uncertainty of COVID-19, the lockdown and Brexit, which is still somehow an issue almost half a decade after it was decided. On top of that there are also concerns about the flexibility of automated systems vs their more standard counterparts. When creating a new warehouse there is always the possibility that sales fall, or the space is not fully utilised in some way. In the event that a warehouse suddenly finds itself only operating at 50% capacity for instance, it is a relatively simple affair to move the racking around, designate the space to a different sector, rent out the space – or even just cut down on the size of the workforce to save costs. With a fully automated system this just isn’t quite so simple. Excess equipment could be sold for some quick capital, but that just leaves the warehouse unable to pick back up if sales increase, while leaving half of the warehouse inoperable will only result in marginal savings in terms of energy costs. Automated systems that are locked in place are not as easy to move around as workers, and even if a company was able to rent the space out to another – software systems and operating procedures would need to be adapted to the new products, causing further confusion. Ultimately, many companies are forced to adapt some kind of balance, reaping the benefits of automated systems where they can, while also keeping a certain degree of manual labour in place to work around it. © Shutterstock /wellphoto 40-43.qxp_Layout 1 27/11/2020 10:43 Page 3Food & Drink International 43 www.fdiforum.net WAREHOUSING OPTIMISATION During 2020, the logistics and supply chain network, that keeps food and drink moving around the country has never been more important as Britons changed their shopping habits, and providers in the hospitality sectors saw demand all but stop, in the spring and early summer. An intrinsic part of this supply chain has been the role that third-party logistics providers play in it. Through developing storage, distribution and logistics solutions for all elements of the supply chain; from supporting core business, to uplifts in demand, seasonal demands or for those manufacturers and distributors that require a new bespoke solution, the industry is well placed to provide flexibility to support a whole host of requirements. Carlton Forest 3PL has three warehouses across South Yorkshire and North Nottinghamshire and currently offers 600,000 sq ft of storage space. Over the last three years the business has tripled in size and turnover and, in 2021, is looking to further increase its market share. Setting itself apart from its competitors in variety of ways, it is particularly renowned for its service driven ethos. By tailoring its services to suit the myriad needs of its many customers and industry sectors, the team builds productive relationships with each customer to support their procedures and integrate with their logistics procedures. To facilitate the movement of goods, Carlton Forest 3PL has a fleet of vehicles at its disposal to fulfil a variety of transport requirements from single pallets or parcels, to multiple, articulated loads. It's complete logistics management solution allows them to work with their customers to cope with both fluid demands and strategic planning. System integration options are available, and the team is proud to maintain a 99.6% OTIF rate. Fully accredited to BRC AA standard for the last four years the facilities are efficient, secure and supported by an experienced team and Warehouse Management System. It has a range of 3PL services which include: • Warehousing and storage • National distribution • Fulfilment operations • Stock control and WMS • Container unloading Graham White, Group Commercial Director, Carlton Forest Group, commented: “The supply chain in the UK, especially in the food and food related sector, has seen unprecedented demand during 2020. It is predicted that this will continue during 2021 as the perfect storm of Brexit, an ongoing pandemic, a huge spike in ecommerce and online sales and a shift in general consumer habits has placed additional pressures on the food industry and how it gets products from point of manufacture or point of arrival to distribution centres, retailers and consumers. “The importance of a well- respected and efficient 3PL provider can make a huge difference, allowing you to upscale product capacity without committing to your own warehouse and storage space or increasing the space that you have. By leaving us to deal with all your logistics needs you can concentrate on all other elements of your business so that we can achieve mutual success and growth.” Why an independent 3PL provider can be the key to success when dealing with changing demand For more information, visit www.carltonforest3pl.com, or contacting Alistair Plant, Operations Manager at alistair.plant@carltonforestgroup.com. 40-43.qxp_Layout 1 27/11/2020 10:43 Page 444 Food & Drink International www.fdiforum.net INGREDIENTS © Shutterstock /Luis Echeverri Urrea Moving with the market 44-47.qxp_Layout 1 27/11/2020 10:45 Page 1Food & Drink International 45 www.fdiforum.net INGREDIENTS Available in a variety of ingredient types - vitamins, proteins, probiotics, omega-3 fatty acids et al. - global sales for functional food and drinks are anticipated to surpass $225 billion by 2024. To remain competitive, food and drink firms must produce products that do not just satiate hunger/thirst while providing a satisfying taste and texture experience, but present additional benefits that add value without compromising on quality. Moreover, health conscious consumers are proactively looking for food-alternatives to supplements, as pill exhaustion takes hold – a survey of US adults found that seventy-nine per cent would rather ingest probiotics via food and beverages than through a supplement or pill. Consumers are particularly interested in products containing functional ingredients that boost the immune system, aid digestion, weight management and are high in protein. The ‘Proactive Health’ whitepaper from Kerry indicates that there is a building desire for functional ingredients across various applications, with sixty-five per cent of US consumers looking for added functionality benefits from their everyday food and drinks beyond their inherent benefits. Digestive health is a main driver of functional food development, a reputation that has extended from the 1980s. Seeking products to assist gut health and the microbiome, consumers are primarily focused on probiotics - being more likely to buy yogurts and nutritional bars if they are fortified with a probiotic. As a result, many food companies are playing with the ingredient, with products holding claims such as ‘good source of probiotics’ growing their market entry, according to Mintel, by thirty per cent in the past three years. While yogurt is one of the most popular products with probiotics, other opportunities for food firms lie in juices, coffee, tea, snacks, baked goods and ice creams. The breadth of probiotics available continues to progress, with new probiotic strains on offer from powders to refrigerated tablets to shelf-stable options, and work is being undertaken to provide probiotics which have a high survival rate in production and on the shelf, with much of the bacteria utilised in fermentation not strong enough to survive for extended periods of time. Opportunities for digestive health goods is expanding outside probiotics however, with an upswing in foods containing prebiotics, which are important in growing beneficial bacteria in The market for functional ingredients continues to expand as consumers demand healthy alternatives and clean labels, take proactive control over their wellbeing, and push for more options that meet their dietary requirements, forcing manufacturers and suppliers to adapt or fall behind. 46 Á 44-47.qxp_Layout 1 27/11/2020 10:46 Page 246 Food & Drink International www.fdiforum.net INGREDIENTS © Shutterstock /Africa Studio the gut and tend to hold a slight sweetness, making them prime for reducing sugar in goods. Launches of synbiotic products, including those containing both probiotics and prebiotics are expected to increase, with prebiotics acting as good bacteria promoters, containing non-digestible ingredients that fuel probiotic bacteria growth. The use of various fibres, of which a lot are prebiotics, in launches is climbing across the world, hand-in-hand with the dietary fibre enrichment trend, not only playing a clear role in digestive health, but weight management. Fibre demand comes as just three per cent of consumers, according to the World Health Organisation, meet the daily recommended intake of fibre in their regular diets. There is thus great opportunity for food firms to inhibit this nutritional gulf. Added and alternative proteins make up another key segment within the functional ingredients space, with consumption of protein-rich foods soaring. Food and drinks labelled high in protein from muffins to peanut butter cups and water can be seen across shelves, with manufacturers constantly innovating to create improved products that boost consumer experience and overcome the common problems of off- notes and gritty textures when dealing with added proteins. Once only recognised in the realm of elite athletes, protein has expanded out into the mainstream as a supporter of weight loss and muscle health, pushing the functional ingredient to be incorporated into various products. Protein claims have rocketed in supermarkets with Nielsen highlighting in 2018 that ‘high- protein’ statements on US packaging have increased 157 per cent year-on- year. The rise in plant-based diets is further driving protein development as consumers aim to incorporate more high protein foods into their diets from non-animal sources. Food and drink manufacturers are looking to uncover new protein sources and better isolates of existing ones, refine sensory attributes, the extraction process and nutritional profile of goods with plant derived protein sources that do not create off flavours that must be masked, or texture challenges. Pea protein, made from yellow/split peas, is one thriving market, increasingly accepted as a replacement for other proteins - not just animal-based but soy, which is reducing in popularity as concerns rise over its environmental impact and association with deforestation. While many companies now have established pea protein ranges, development continues with Ingredion last year launching its 44-47.qxp_Layout 1 27/11/2020 10:46 Page 3Food & Drink International 47 www.fdiforum.net INGREDIENTS first protein isolate, a pea protein which will help manufacturers respond to demand for protein rich products. The isolate holds a minimum of eighty per cent protein and will thus substantiate food firms making ‘high in protein’ claims on labelling. Its use extends across nutrition bars, snacks, ready to drink beverages, meat and dairy alternatives, healthier baked goods and baking mixes. A main criticism of pea proteins however is that they can have a strong flavour that must be masked. Chickpea protein, then, is breaking into the plant-based meat and dairy markets as a potentially better option, chosen for its neutral flavour profile as well as light colour, allowing it to be used as a foundational ingredient across many applications from chickpea milk to energy bars. It also hosts essential amino acids, unsaturated fatty acids, doesn’t represent a common allergen and has a smaller environmental impact than animal protein. Fava beans meanwhile are a key new protein source gaining attention as ingredient makers look to expand their offering and the sensory and nutritional profile of their proteins. Though already utilised by some, new methods have been uncovered for the processing of fava beans, a rich source of proteins and fibres that is gluten-free. Researchers at the University of Copenhagen have produced a concentrated protein powder using wet fractionation to concentrate fava bean protein and remove substances that would otherwise inhibit the digestion of the protein, allowing fava bean proteins to be more readily absorbed when consumed. In this method, beans are milled into a flour, water added and then blended into a soup. Substances that aren’t beneficial are then easier to sort out, to form an optimised product, and the method is said to improve protein content. While enhancing nutrition and physical health is an important aspect of the functional ingredients space, the future is expected to see significant growth of products with relaxation and stress relief properties, expanding opportunities for functional ingredient makers. Cannabidiol is gaining attention here, though until governments decide how to regulate cannabidiol goods, food and drink manufacturers are likely to move slowly on developing products in this arena, falling back on established ingredients like chamomile and melatonin that are in the mainstream. © Shutterstock /V alentin V alkov 44-47.qxp_Layout 1 27/11/2020 10:46 Page 4FEATURES Health, Safety & Hygiene Spotlight Cartoning & Sleeving Conveying Pumps & Fluids Sorting & Weighing Bakery & Confectionery New Year – New Suppliers Import & Export Next month in January 2021 - Deadline 2nd December INTERNATIONAL Food &Drink Food &Drink Visit us at www.fdiforum.net where you’ll find the latest news as it breaks – and why not subscribe to our newsletters so you can have the latest news emailed to your inbox, in between printed issues? 48.qxp_Layout 1 27/11/2020 10:49 Page 1Classified Often imitated… …never equalled You can feature your company in our hugely popular Online Directory with a description, contact details and a hyperlink If you would like further information please contact Sam Trott on +44 [0] 1472 310310 or email s.trott@blmgroup.co.uk or visit www.fdiforum.net/directory From field to fork, Food & Drink International is the voice of the industry. Food & Drink International 49 www.fdiforum.net Depositors Tel: 01282 440040 enquiries@riggsautopack.co.uk www.riggsautopack.co.uk Manufacturers of depositors & filling machines for the food production industry Labels Tel: 01482 506560 sales@datamarkuk.com www.datamarkuk.com • Self adhesive Labels • Lasersheets • Fanfolded Labels • Thermal Transfer Ribbons • Barcode Labels INDEX Online Directory Depositors Labels To Let w w w . fd if o ru m .n et • Superb Location - Close to the ports of Grimsby & Immingham - Great motorway links - Close to the town centre • Secure off street parking • High speed internet availability • Easy in/out terms • A range of affordable office sizes Armstrong House, Armstrong Street, Grimsby DN31 2QE Tel: (01472) 310301 Email: s.fisher@blmgroup.co.uk Ground floor offices to let - prime location in Grimsby To Let Online Directory To advertise your services on the Classified pages contact us on 01472 310302 49.qxp_Layout 1 27/11/2020 10:49 Page 1Next >