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Transportation/Logistics Concerns Still Brewing
Jim Prevor's Perishable
Pundit, August 14, 2006
One area that the Pundit intends to address a
great deal in the months ahead is transportation and logistics.
It has always been true that in perishables, the product only has value
if you can get it where the customer needs it, when the customer wants
it.
My family was once considered the “coconut kings” — why did we want that
title? It was a logistics issue.
We used to import a lot of items into the New York metro area. We would
have Italian chestnuts and radicchio, Greek figs, French Granny Smith
apples, Belgian endive and many other relatively low-volume items.
Since we had customers for all these items all across the country, the
challenge was transportation. So whoever could get it to the retailers
and wholesalers across the country when they needed it would get the
order.
It wasn’t a matter of price; it was a matter of service.
So we would put together complicated truck loads of LTL shipments and
snake them across the country.
Where did the coconuts come in? We sold them at break-even because they
were big and helped us fill up the trucks. It was our secret weapon so
we could always keep the trucks humming.
Of course, the Pundit isn’t the only one concerned about trucking. Bryan
Silbermann, President of the
Produce Marketing Association, and I engaged in an extensive
discussion about the issue
here.
The crux of the articles? Well Bryan put it best:
There is a perfect storm brewing now in the transportation sector of
the produce and floral industries.
But things are happening. Most notably, the
Dispute Resolution Corp. announced that it was providing the same
protections for produce carriers as it did for the actual buyers and
sellers of produce. Bill Martin, a noted expert on transportation and a
Contributing Editor to
PRODUCE BUSINESS,
analyzed the significance right
here.
Of course, there is a lot more to transportation and logistics than
trucking. Have you seen the
Atlanta Perishables Complex managed by Perishables Group
International JV LLC? So often, air transport seems to make sense for
perishables but the reality is that the product sits on a tarmac
somewhere, breaking the cold chain, and the product is damaged.
This is the kind of facility you need if air transport is ever going to
meet its potential for perishable transportation.
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