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A Shipper’s Guide for Food Logistics
adam • Dec 10, 2022
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A Shipper’s Guide for Food Logistics
While all shipped products are important, food ranks high on the list of priorities because, simply, people have to eat. With many foods requiring temperature- and climate-controlled environments throughout the supply chain journey, shipping of this precious cargo comes with greater responsibility and increased logistical concerns to ensure on-time, in-full deliveries with no product degedation.
This comprehensive guide examines food logistics, the types of food supply chains, and current industry trends. It also covers what services are available for food shippers and how an expert partner in food and beverage logistics can help them succeed.
What is Food Logistics?
Food logistics is how food products get from Point A to Point B. Three main areas are involved in food logistics: transportation, storage, and distribution. Not only must the logistics concerns of all three be figured in, as is the case with all shipped items, but there is the added need to make sure all three can handle and are prepared for items that must be climate controlled and free of any cross-contamination. All areas must be prepared to handle these special circumstances, from the vehicles transporting the food to workers handling the shipments in climate-controlled storage warehouses. Breakdowns and improper handling put food at risk, increasing the possibility of food waste and spoilage. Not only will there be cost losses because of claims sought, but a spoiled product can negatively impact a company’s customer service and reputation.
Types of Food Supply Chains in Food Logistics
The food supply chain can be complex, with multiple stages that shippers must monitor closely.
Production: This is the farm part of the farm-to-the-table. It is the food source, either grown or developed with guidelines in mind. Laws are also in place to ensure quality, appearance, and food safety.- Handling and storage: This stage comes before transporting the product. Potatoes provide a perfect example of how each product has a particular process: Some potatoes must be washed before being packaged for transportation, but others need to go straight into bags to start their journey. The type of food and its end destination decide the approach to handling and storage.
- Processing and packaging: Again, food safety is a concern here. The products must meet all food safety requirements before heading to packaging. After receiving the OK, the product is wrapped up and ready to move on.
- Distribution: After the product has been through the other stages, shipping takes over. The product must now make its way to its destination, which is quite often to markets.
Now that we know the stages that make up the supply chain, let’s look at their types and characteristics.
Continuous flow: This is the most traditional supply chain type. It is ideal for food manufacturers who produce food products that don’t vary often. It offers stability within high-demand production. The manufacturing process, by design, generates a regular cadence of product and information flow and provides a continuous-replenishment system that ensures high service levels and low inventory levels at customers’ facilities. This type is suited for mature industries with slight variations in customer demand.- Fast chain: The flexibility of this type works well with products that are changed out frequently. Think of trendy products with short life cycles. Manufacturers working with products with a shorter life cycle will benefit from the fast chain. Companies that adopt this type focus on shortening the time from idea to market.
- Efficient: In competitive markets, the efficient model is the go-to of all the supply chains. It represents an end goal at the premium level of competition in the marketplace.
- Agile: The agile type of supply chain management is most effective when a business deals in specialty items. This type, which sometimes allows increased movement, is ideal for companies that make products under unique customer specifications. It is mainly used in industries characterized by unpredictable demand. Managers focus on designing processes capable of the smallest possible batches to ensure agility.
- Flexible: As the name implies, this supply chain type is best suited for industries characterized by high demand peaks followed by extended periods of low demand. There is a high adaptability with the capability to reconfigure processes to meet specific customer needs or solve customer problems. This model’s success depends on management ensuring ample flexibility with an emphasis on rapid response capability.
- Custom configured: This is a combination of the agile and continuous flow types. The processes before the product configuration are managed under the continuous-flow type, while later processes operate as an agile supply chain. It is ideal for products with multiple and potentially unlimited product configurations. There is a high correlation between asset cost and total cost. The configurations are usually accomplished during the assembly process, where different product parts get assembled according to a customer’s specifications.
Trends in Food Logistics
There have been many factors in recent years that have affected the food supply chain and food logistics. Factors like COVID, the Great Resignation, and even natural disasters have changed the evolution of food shipping. Many of those factors have created food logistics trends that we can look at here.
Disruptions, Shortages Provoke Food Fraud
The chaos that COVID heaped upon us included some concerning issues for the food and beverage industry. The one-thing-leading-to-another timeline of problems began with shortages of raw materials, products, and labor. That caused an increase in food fraud as people started using the disruption and shortages to make counterfeit or low-quality products. A lack of food inspectors compounds the problem. There has been an exodus due to multiple reasons — retirement, illness, or resignation — that gap is not being filled because there are not enough college-age people to take their places. The lack of inspections is heightening food fraud concerns. This trend is one that the industry must keep a close eye on to maintain a safe, quality product for consumers.
Changes in Eating Patterns Raise Focus on Temperature-Controlled
The severe decrease in eating out during the pandemic forced food and beverage businesses to scramble to satisfy changing customer behavior. At-home options and ready-to-eat meals gained significantly greater shares. Also, the consumers’ interest in healthy, minimally processed foods, which require temperature control, continues to be high, and interest in cold-chain food items is rising. These movements will continue to affect the food industry. For instance, more businesses are offering safe cold storage and transportation to capitalize on the movements.
Last-Mile Delivery, Nearshoring & Omnichannel Take Hold
Before COVID, a customary logistics plan sufficed for shipment deliveries. But disruptions in recent years have changed that by increasing the need for flexibility and options like fast delivery. Smaller distributors that handle “last-mile delivery” have appeared, and hybrid-routing procedures are available to meet the demand for more last-minute deliveries. Another practice created by supply chain disruptions is nearshoring or reshoring, which means sourcing supplies closer to the business and customers. Purchasing resources that are closer to home means more control over supply. Like in retail, e-commerce fulfillment in the food industry has risen significantly. The omnichannel approach integrates all the different shopping and shipping methods and is now an integral part of shopping for almost every consumer. To succeed in today’s marketplace, the food industry must step up its direct-to-consumer efforts.
Technology Becomes a Much More Significant Factor
One of the critical areas that food and beverage businesses should focus on is technology. By embracing the latest technology — like analytics, automation, and artificial intelligence — companies can overcome some of the significant challenges in the industry. Analytics can help make more informed decisions. Automation and AI can help overcome labor shortages by leveraging data to better plan routes and cut down on time and resources.
Transportation Services to Support Food Shippers
Many concerns come with moving food shipments, but the No. 1 priority is ensuring the products arrive unspoiled and fresh. So let’s look at what needs to happen to keep those products in the ideal state to prevent food waste and spoilage.
Temp-Controlled for the Entire Journey
Having the correct reefer truck or container while the product is on the move is essential. But there is more to it than just that. To keep the cold chain intact for the complete trip, it’s also imperative that the product remains temperature controlled during any idle or storage time. If refrigerated food is left out too long on a loading dock, temperatures can rise enough for bacteria to grow. Even if that food gets returned to a refrigerated environment, that won’t stop the process of bacteria growth.
Frozen Freight
With more people opting to dine at home rather than at restaurants, the demand for frozen freight options and refrigerated services remains high. A suitable mode of transportation — which can include air, rail, and local transportation providers — is critical to getting frozen goods delivered safely, no matter how far the distance. To make sure food stays unspoiled, here are some things to remember:
- Keep the equipment well maintained.
- Pre-cool the freight before loading.
- Make sure that goods requiring only refrigeration do not get freezer burned.
- Plan the load configuration so items can be taken off in an order that benefits keeping certain foods at the right temperature.
- Optimize the route to come up with faster transportation times.
Reefer Trucking
Reefer — which is short for refrigerated — trucks or trailers have a built-in cooling system to ensure the cargo stays at the right temperature throughout the journey. A refrigerated trailer can usually keep freight at temperatures ranging from chilled to frozen. This is critical for sensitive cargo shipments or when the outside temperatures could result in a ruined load.
Expedited Shipping
Even the best-laid plans of any shipper can sometimes go astray. That’s when expedited shipping can prove crucial. A fast and reliable expedited delivery service can help you meet tight deadlines by performing those short-distance rush deliveries that are quickly becoming more and more common.
Technology Considerations
Food logistics has undoubtedly been one of the many groups that have benefited from all of the incredible technological advances in recent years. One advancement that has emerged is real-time visibility and tracking, which gives companies and customers live updates on the location and status of their shipments. Technology has also led to improvements in temp logging, which uses an electronic device that stores temperature measurements and saves the data for analysis.
How a Food & Beverage Logistics Company Can Help Food Shippers
There are many ways a food and beverage company can make life easier for food shippers. With an extensive background and expertise in foodservice logistics, Entourage Freight Solutions can help you navigate the world of refrigerated freight. Using expert knowledge, keen attention to detail, and a network of more than 7,500 carriers, Entourage Freight Solutions provides customers with a host of services that can make their lives easier. Let’s take a look at some of those services:
FoodService: The Entourage Freight Solutions team is well-versed in the various regulations affecting the movement of finished food items, fresh produce, and alcohol. EFS can provide just-in-time coverage, multi-pick shipments, flexible shipping options, and reefer and bulk goods transport to ensure your supply chain runs efficiently.- Food manufacturing: Your team can leverage Entourage Freight Solutions’ manufacturing supply chain solutions built on vast networks of dry van and refrigerated carriers to accommodate virtually any need. Top-quality services offered by the food manufacturing team include:
- Kitting of products to ensure assembly to your unique specifications.
- Individual quick-freezing processes to ensure the product reaches customers at the right temperature without posing an added safety risk.
- Tracking and tracing all goods throughout the food manufacturing process alleviates concerns..
- Grower and shipper: Entourage Freight Solutions offers an assortment of ready-to-roll trucks and services to help grower-shippers get their products to retailers or manufacturers on time. This includes all forms of fresh produce and finished, pre-packed goods that require refrigerated transportation.
- Retail: With the emergence of e-commerce, the retail world has significantly evolved. Combine that rise with brick-and-mortar sales that remain strong and you see why having a dedicated partner for retail goods transport like Entourage Freight Solutions is a must to keep up with the busy retail world. Entourage Freight Solutions offers a comprehensive lineup of retail distribution and delivery services. Our experience in foodservice and perishables allows us to integrate your new products into our delivery areas seamlessly.
Entourage Freight Solutions Can Help Make Sure Your Journey is Not Spoiled
The logistics of shipping food products bring with it a whole different level of responsibility. From the journey’s start to finish, temperature control must be foremost in mind, making life much more complicated and stressful for food logistics managers. One way to relieve that stress is to work with a 3PL specializing in food logistics. Entourage Freight Solutions brings years of experience handling produce and transporting foodservice ingredients and finished products. With an expert staff and cloud-based automated technology, EFS can help make sure you have an unspoiled experience. To find out more, visit our website and request a quote today.
This isn’t typically the busiest time of year for freight, but myriad factors are boosting airfreight demand and seaport imports.
Logistics doesn’t operate in a vacuum. As shippers know, even the best-laid plans and well-oiled supply chains can be upended in minutes due to an external disruption, whether it’s a pandemic, a geopolitical conflict, or a natural disaster. The latest disruption was the tragic collapse of the Francis Scott Key Bridge near Baltimore after a container ship struck one of the bridge’s piers. Here are seven headlines to stay up to date on the latest happenings at the Port of Baltimore, along with other news in the supply chain and trucking industry: Relief Efforts for the Francis Scott Key Bridge The U.S. agency that governs trucking, the Federal Motor Carrier Safety Administration (FMCSA), extended its emergency declaration for drivers who are providing assistance related to the collapse of the Francis Scott Key Bridge. As Trucking Dive reported , the emergency declaration relaxes electronic logging device regulations for drivers supporting relief efforts. The declaration extends the 11-hour driving time restriction by two hours. State governments have also taken action. Maryland, Pennsylvania, and Virginia waived International Fuel Tax Association requirements for truck drivers hauling to or from the port. Maryland extended the tax deadline from April 30 to June 30. Virginia issued 30-day permits for container hauling until the end of the emergency. Access to the Port of Baltimore As local trucking companies and state governments work on relief efforts, the U.S. Army Corps of Engineers is working to open a limited access channel to the Port of Baltimore, according to an article in Supply Chain Dive . The channel will be limited to 280 feet wide and 35 feet deep and will be used by barge container traffic and roll-on/roll-off vessels, helping with the transport of items such as automobiles and farm equipment . It is expected to open by the end of this month. The permanent channel, which is 700 feet wide and 50 feet deep, should reopen by the end of May. Truckers Find Workarounds In the meantime, logistics companies are coming up with creative solutions to keep freight moving. Evans Delivery Company’s Land Transportation brand devised a “Drop Lot” solution, according to the American Journal of Transportation . Baltimore truckers can drop off containers in a lot along I-95, about 40 miles north of Richmond. From there, Norfolk drivers pick up the containers and haul them over to the Port of Virginia for shipment. The system works in reverse, too. The system helps smaller and medium-sized trucking companies, which may not have as large a network or ease of access to transfer cargo insurance between partners. The solution also deploys artificial intelligence to track cargo throughout the supply chain and help the various parties communicate in real time. XPO Greenlights Yellow Terminals In other logistics news, LTL carrier XPO is beginning to open up service centers that it acquired from the bankrupt trucking company Yellow, formerly called YRC. Yellow held an auction back in December, and XPO made a bid for Yellow’s terminals. XPO ended up purchasing 26 owned terminals and two leased terminals from the bankrupt firm, FreightWaves reported . In total, that’s about 2,900 doors – a 10% to 15% increase in XPO’s total door capacity. So far, XPO has opened three facilities: one in Nashville, Tennessee; another in Grand Junction, Colorado; and the third in Nogales, Arizona. That brings XPO’s total service centers to 297. “With a deeper presence in strategic markets, we are introducing new premium services and expanding our existing offerings, such as our cross-border service with Mexico,” said XPO CEO Mario Harik. XPO isn’t the only LTL carrier opening up terminals that formerly belonged to Yellow. Saia acquired 28 terminals from Yellow and opened one of them this month in Missoula, Montana . Meanwhile, Roadrunner opened a facility in Atlanta that used to be operated by Yellow. A Normalizing Truck Market LTL carriers might be speedily opening up terminals, but truck OEMs are starting to see a slowdown as the market normalizes. According to Transport Topics , Daimler Truck North America sold 46,220 trucks and buses in Q1. While it seems like a hefty number, it’s actually a 5% YOY decrease. The manufacturer, which owns brands such as Freightliner and Western Star, sold 48,891 trucks and buses in the first quarter of 2023. The OEM is seeing a normalizing marketing across its truck segments and its geographies. For global sales this year, the company expects to sell between 490,000 and 510,00 vehicles, a drop from last year’s 526,053 vehicles. “Reasons for the normalization include the persistently challenging economic conditions and the absence of catchup effects from pent-up demand that was exceptionally high during the previous two years,” Daimler Truck Chairman Martin Daum said. But one segment is bucking the trend. Daimler’s battery-electric sales jumped 183% to 813 units, up from 287 in Q1 2023. Calling All Truck Drivers Despite a slight slowdown in truck manufacturing, trucking demand remains high, and so does the need for drivers. The FMCSA proposed a rule that would help fill the need for drivers by loosening testing regulations for commercial driver's licenses (CDL). The rule would do a few things, FreightWaves reported . It would allow commercial learner’s permit (CLP) holders who passed CDL skills tests to operate trucks without CDL holders sitting on the passenger’s side. The proposed rule would also allow CDL applicants to take skills tests outside of their home states. Finally, the rule would eliminate a 14-day waiting period after receiving a CLP to take the CDL skills test. As with any regulation , the rule has some strong advocates as well as some staunch opponents. The Owner-Operator Independent Drivers Association opposes the FMCSA’s proposed rule. It worries that drivers won’t receive adequate mentorship or training in challenging conditions if a CDL holder is not in the passenger seat. Safety advocates fear what the streamlined rules could do for FMCSA’s safety objectives. But the American Trucking Associations believes the rule would streamline the process and attract more drivers to the field. The group pegs the driver shortage reaching 160,000 by 2030. The Commercial Vehicle Training Association also supports the rule, particularly revisions that shorten wait times related to license processing. TikTok’s Trucker An unconventional method might draw more people into the trucking workforce. A social media creator dubbed “Alex the Trucking Guy” has accrued more than a million and a half followers across Instagram, TikTok, and YouTube as he documents what it’s like to be a truck driver. “I started posting behind-the-scenes contents of the life of a truck driver, like who we are and really putting a face to these giant machines that you see on the road,” the content creator told Fox Business . Alex eventually got into the trucking industry after dropping out of college and realizing a degree wasn’t for him. He aims to show that trade professions can be a great option for many people who want steady careers without accruing student loan debt. Keeping Supply Chains Moving in the Face of Disruption In the supply chain industry, risk is unpredictable, and disruption could happen at the blink of an eye. Entourage Freight Solutions provides steady services that can help you navigate a turbulent logistics environment and receive important information in real time. Entourage Freight Solutions offers the following services, and many more: Our LTL service provides on-demand access to capacity, along with real-time data and peace of mind in this high-stakes world. Our Freight Management lets your team stay organized across inbound and outbound logistics, tracking market capacity and using automation notifications to keep everyone informed. Our Refrigerated transport provides expertise in everything from finished goods to raw materials, ensuring products arrive on time and in top condition. Request a quote today to see how Entourage Freight Solutions can solve your key logistics pain points.
While every for-profit business has its own mission and goals, they all want to maximize revenue and save costs with an optimized supply chain network.
Food and beverage shippers know that the trucking industry is always moving – both literally, and in the sense of the market. Carriers’ rates have been up and down, and one key LTL carrier is on a growth spree. As tonnage, rates, and capacity continue to change, here are six headlines to keep up to date with the latest in the ever-changing logistics industry: Saia Basks in February Glory Things warmed up for Saia in February. The LTL carrier saw an 11% YOY increase in daily tonnage last month, with a 19% boost in shipments and a 6.7% decrease in weight per shipment. That growth was even faster than in January, when tonnage went up 3.3% YOY and shipments grew 11.8%. “March is the most important month in Q1,” Saia CFO Doug Col told analysts on the carrier’s quarterly earnings call last month. “That's where maybe we'll start to get a better feel for what's going on with this underlying freight economy. … So, we'll see what things look like in March.” But Saia isn’t waiting until March to invest. According to FreightWaves , the LTL carrier has big growth plans this year—Its $1 billion in CapEx includes $550 million for real estate. The carrier plans to grow its net door count by 12% to 14% this year. And recall that Saia recently acquired 28 terminals from bankrupt Yellow. Diesel Prices on the Downhill As carriers like Saia see their tonnage go up, they’re also seeing diesel prices go down. On March 4, the Department of Energy/Energy Information Administration diesel price was $4.022 per gallon. That’s a drop of 3.6 cents a gallon from a week earlier, FreightWaves reported . When we take a step back, however, the picture is even clearer. At this time last year, the diesel price was $4.282 cents a gallon. That’s 26 cents more than the price at the beginning of this month. So, why the drop? There are a handful of possible factors. Last year, there was more uncertainty regarding Russia’s diesel supplies as the country continued its invasion of Ukraine. Those supplies have mostly normalized. More refining capacity for diesel has come online, increasing the ability to supply diesel. For one, ExxonMobil brought on 250,000 barrels a day of new refining capacity at its refinery in Beaumont, Texas. A final potential reason is the rise of renewable diesel capacity in the U.S. All those factors together equal a softening picture for diesel, which is welcome news for diesel consumers. Scope 3 Emissions Get the Boot It’s tough to discuss diesel without also talking about the elephant in the room: greenhouse gas emissions. There’s a new development in the Securities and Exchange Commission’s climate disclosure rule. The SEC finalized its rule, but it doesn’t require publicly traded companies to report their Scope 3 emissions. On top of that, requirements to report Scope 1 and Scope 2 emissions are scaled back, according to ESG Dive . The SEC first laid out its climate reporting proposal in March 2022. At the time, Scope 3 emissions—which are generated from a company’s supply chain rather than its direct operations—were slated to be part of the disclosure. However, since then, the SEC has received more than 16,000 comments opposing the inclusion of Scope 3. While the rule is finalized, the impact isn’t over. KPMG noted that large companies still have to report their Scope 3 emissions to comply with other regulations, such as California’s climate disclosure laws. Plus, many firms have set their own sustainability goals. Tracking Scope 3 emissions, from transportation providers to suppliers, holds them accountable for meeting those targets. A Costly Forklift Regulation In other regulatory news , the California Air Resources Board is developing a rule that would require businesses and local governments to replace combustion forklifts with battery-electric ones. According to a new economic impact report released by the Western Propane Gas Association, this wouldn’t be cheap. WPGA estimates the regulation will cost California forklift owners and operators up to $27 billion, Food Logistics reported . The association notes that, under the regulations, operators will spend $10 billion on forklift replacements and will have to buy new forklifts even if their internal combustion ones are fully functional. They’ll also spend more than $6.3 billion on implementing charging stations, and that doesn't include any costs to upgrade power supplies or actually transmit electricity. But making the transition to battery-electric forklifts is also a critical part of CARB’s strategy . According to the board, the measure helps meet California’s air quality and greenhouse gas reduction goals. The board will consider the rule this summer. Smaller Suppliers Feel the Pinch A recent Supply Chain Dive article took a look at the finances of small companies. Turns out, many are in worse shape than before the pandemic began. Private middle-market companies have filed for bankruptcy four times as often as public large companies since 2019. Those middle-market companies also saw earnings before tax drop 20% from 2019 to 2022, while large companies’ earnings rose 20%. “Their profit margins are being squeezed. Their capital costs are increasing,” Rapid Ratings Executive Chair James Gellert told Supply Chain Dive. It can behoove large firms to support their suppliers. Some buyers are pressuring suppliers with short lead times or canceled orders. By avoiding those practices, and offering faster payment terms, large buying companies could improve the health of their suppliers and the overall value chain. The Need for Cold Chain Focus Here’s a staggering statistic: $1 trillion of food goes to waste every year. Can supply chains dramatically reduce that? Most certainly, according to Food Logistics . The publication calls on companies to make cold chain technology a big focus for 2024. The food supply chain hasn’t kept pace with the food industry’s rapid expansion, with thousands of farms, restaurants, and grocery stores feeding the nation. Fast and reliable transportation is essential. One solution is to remove moisture from shipping containers. Companies can also use technology for better circulation in a container. Another is to use expedited trucking . These strategies help better maintain the freshness of perishables, in an environment where every degree counts. “Holding in cold temperatures and improving the flows of refrigeration should be the north stars of the logistics industry in the coming years,” the article stated. Tyson’s Call for Cold Chain and More Startups As the industry rallies around modernizing and cutting down waste in the cold chain, Tyson Foods is making its own play. The CPG’s venture capital arm, called Tyson Ventures, will hold its third Demo Day this summer, Food Business News reported . Startups focused on everything from cold chain to forecasting to logistics software are invited to pitch their technology solutions at the Demo Day event. The idea is for Tyson to work with startups to improve sustainability and efficiency across its supply chain, while Tyson provides mentorship and partnerships to the startups. As Tyson’s CFO put it: “Together, we can reimagine, innovate, and elevate the protein supply chain across every touchpoint.” Securing Capacity – LTL or Otherwise – With Entourage Whatever your logistics needs, Entourage Freight Solutions can help you with personalized services and security capacity. Entourage Freight Solutions offers the following services, and many more: Our LTL service provides on-demand access to capacity, along with real-time data and peace of mind in this high-stakes world. Our Freight Management lets your team stay organized across inbound and outbound logistics, tracking market capacity and using automation notifications to keep everyone informed. Our Refrigerated transport provides expertise in everything from finished goods to raw materials, ensuring products arrive on time and in top condition. Request a quote today to see how Entourage Freight Solutions can solve your key logistics pain points.
Expedited trucking ensures fast and reliable transport. But where it shines is in keeping production lines moving smoothly by linking raw materials directly to production needs, helping businesses stay nimble and ahead of the curve.
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Imagine a small, rural hospital facing an urgent crisis: their only MRI machine has broken down, and a patient with a suspected brain aneurysm needs an immediate scan. The nearest replacement part for the machine, a critical magnetic coil, is over 500 miles away. Enter Mike, an experienced driver in the expedited trucking industry, who receives the call for this emergency delivery. As Mike sets off in the early hours, his dispatcher, Sarah, is already mapping out the fastest, safest route. She keeps an eye on live traffic updates and weather forecasts, ensuring Mike avoids any delays. Their communication is constant and efficient, with Sarah relaying information about potential road closures and Mike providing progress updates. Back at the hospital, tensions run high. Yet, the trucking company's customer service team maintains a steady line of communication with the hospital, providing reassurance and real-time updates on the magnetic coil's arrival. This scenario isn't just a story; it's a day in the life of the expedited trucking industry, where such high-pressure situations are routine. Here, communication goes beyond talking over the radio or sending emails . It’s a key strategic principle that can mean the difference between life and death. Enhancing Operational Efficiency through Communication Effective communication is a building block of smooth operations in expedited trucking. It isn't just about passing messages; it’s about creating a seamless flow between dispatchers and drivers to ensure timely deliveries and happy customers. Streamlining Dispatch and Driver Interactions Clear and concise communication between dispatchers and drivers is fundamental to the smooth running of any trucking operation. Dispatchers are orchestrators and direct drivers to their destinations while often managing multiple routes and schedules simultaneously. Drivers, as the executors, navigate through unpredictable roads and weather conditions. This dynamic duo must work in perfect harmony to avoid costly delays and errors and allow for swift adjustments and decision-making. It's all about understanding and being understood. Leveraging Technology for Better Communication Technology has revolutionized how dispatchers and drivers communicate, making information exchange faster, more reliable, and more efficient. For instance, real-time data sharing and GPS tracking have become indispensable tools in expedited trucking by providing a live view of vehicle locations, enabling dispatchers to make informed decisions, and relaying accurate information to drivers and clients. At the same time, these tools combined enable dynamic routing. Dispatchers can reroute drivers based on traffic conditions, road closures, or weather issues, minimizing delays and enhancing delivery predictability. Solving Problems and Improving Safety with Effective Communication The benefits of effective communication go beyond staying on schedule. Communication is also a vital tool for problem-solving and enhancing safety. With the right communication strategies, managing both expected and unexpected challenges efficiently and safely is achievable. Quick Resolution of On-Road Challenges Imagine a driver encountering an unexpected road closure or a cargo issue. As we showed in our intro, instant and clear communication with the dispatch team can be the difference between a minor hiccup and a major delay. With real-time communication, dispatchers can quickly assess the situation, provide alternative routes, or offer solutions to cargo-related issues. This responsiveness ensures the prompt resolution of problems, minimizes downtime, and keeps schedules on track. Ensuring Driver Safety through Advanced Communication Tools Driver safety is paramount, and advanced communication tools play a critical role. Telematics systems, for instance, provide vital data on vehicle performance and driver behavior, enabling proactive maintenance and safer driving practices. Custom mobile applications are another boon. They offer drivers easy access to essential information without the distraction of handling multiple devices or paperwork. These apps can send alerts about weather conditions, traffic updates, or route changes, allowing drivers to focus on the road with fewer distractions. Building a Supportive Trucking Community Finally, building a supportive community is essential for driver well-being and job satisfaction in the often-solitary world of trucking. Fostering Team Spirit and Driver Engagement The rise of social media and digital platforms has opened new avenues for drivers to connect, share experiences, and support each other, regardless of their physical location. Online forums, social media groups, and dedicated apps allow drivers to engage in real-time conversations, exchange tips, and celebrate each other’s successes. This digital camaraderie fosters a sense of belonging and team spirit, which is crucial in an industry where isolation can be challenging. Moreover, companies can leverage these platforms to recognize driver achievements, share important updates, and gather feedback, nurturing a culture of inclusivity and loyalty . The Impact of Communication on Driver Satisfaction Effective communication goes beyond just passing information; it enhances driver satisfaction. When drivers feel heard and valued, their job satisfaction levels rise. Regular check-ins, transparent communication about schedules and expectations, and providing a platform for drivers to voice their concerns are all practices that contribute to a supportive environment. After all, 4 in 5 American workers report stress due to poor communication , while good communication can improve productivity by up to 25%. Tying Together the Power of Communication in Expedited Trucking The essence of expedited trucking revolves around precision, speed, and reliability , all underpinned by robust communication between dispatchers, drivers, and customers. From managing unexpected road closures to enhancing driver safety with advanced tools, communication improves operational efficiency and builds a sense of community and satisfaction. Every minute counts, and clear and efficient communication is the backbone of success. Entourage Freight Solutions (EFS) stands at the forefront of integrating these communication principles into practical, real-world services . As a well-rounded provider with offerings from full truckload to specialized freight management designed to cater to diverse needs while prioritizing safety, efficiency, and reliability, EFS understands the critical role of timely deliveries, expedited service , robust communication, and 24/7 support. Advanced communication tools, coupled with a network of strategic locations, ensure that your cargo is handled with the utmost care and precision, no matter how urgent or sensitive. Ready to experience a new level of expedited trucking service? Request a quote from Entourage Freight Solutions today and get started.
2024 is shaping up to be a rollercoaster year for expedited trucking and the trucking industry as a whole. Think of it as a highway under constant construction, with new speed limits and safety signs emerging. The U.S. Department of Transportation (DOT) and the Federal Motor Carrier Safety Administration (FMCSA) are ramping up their game – imposing heftier fines for non-compliance. On the horizon, there are potential new laws. Imagine trucks mandated to have built-in speed caps, automatic braking systems, or Electronic Identification Devices becoming the standard, requiring you to upgrade your fleet just as you would swap an old phone for a smart one. That's just the tip of the iceberg. For everyone in expedited trucking, it's time to buckle up, stay alert, adapt, and keep pace with the pros, cons , changes, and proposed changes we’ll discuss in this article. Key Regulatory Changes in the Trucking Industry for 2024 Let’s first focus on three critical areas of change: stricter enforcement, higher fines, and new safety regulations. Stricter Enforcement and Financial Penalties The FMCSA is adopting a tougher stance with increased fines for non-compliance. This move isn't just a random decision; it's part of a yearly update required by a law passed in 2015, known as the Federal Civil Penalties Inflation Adjustment Act Improvements Act. This law is about keeping fines in step with inflation, ensuring they remain a strong deterrent against violations. As a result, if you find yourself caught bending the rules – say, falsifying records or ignoring out-of-service orders – expect to feel a heavier pinch in your wallet. To put it into perspective, the penalty for falsifying records has jumped from $14,960 to $15,445 . It clearly signals that the FMCSA is serious about reinforcing safety and compliance, especially for smaller trucking businesses that might more acutely feel the impact of these increased fines. Other Adjustments in Civil Penalty Amounts DOT has also updated civil penalty amounts for various infractions in line with inflation in response to economic changes and to ensure that fines continue to deter regulatory violations effectively. As of January 2024, significant adjustments include increased penalties for premerger filing notification violations under the Hart-Scott-Rodino Improvements Act (from $50,120 to $51,744), violations of cease and desist orders under the Clayton Act (from $26,628 to $27,491), and several infractions under the FTC Act, including unfair or deceptive acts (each from $50,120 to $51,744). Additionally, penalties for failures to file required reports and maintain necessary records under several acts have increased from $659 to $680. Potential New Federal Laws On top of the harsher fines and penalties, the trucking industry is also facing some proposed new federal rules and regulations focused on vehicle safety and employment practices: Speed Limiters on Trucks: Balancing speed, safety, and service is a constant trucking challenge, and The FMCSA is getting involved with a proposal to mandate speed limiters on commercial motor vehicles with a gross vehicle weight of over 26,000 pounds. Proposed initially to cap speeds at 68 mph, this specific limit was later retracted, pending a final decision after public comment. This change aims to enhance road safety by controlling truck speeds on interstate highways. Automatic Emergency Braking Systems: There is a proposed rule, expected to be finalized by April 2024, for the mandatory inclusion of automatic emergency braking systems on new commercial vehicles over 10,000 pounds. This development is part of ongoing efforts to reduce accidents and improve safety standards in heavy truck operations. California's AB5 Labor Law: Potentially expanding to the federal level, California's AB5 law is redefining the classification of many independent contractors and gig workers as employees. This shift could significantly impact employment practices within the trucking industry, aiming to provide more worker protections while potentially requiring business model adjustments. Potential Technological and Sustainable Trucking Changes in 2024 Beyond the key regulatory changes we discussed above, there are two other ones to consider. One is the proposed Electronic Identification Devices (UIDs) requirement by FMCSA, and the other is California's Advanced Clean Trucks Regulation. While one is a proposal and the other is already in motion, they each signal a trucking industry on the cusp of significant changes in technology and regulation driven by environmental concerns, safety measures, and the need for increased efficiency. Electronic Identification Devices (UIDs) Requirement by FMCSA Since September 2022, the Federal Motor Carrier Safety Administration (FMCSA) has been pushing a game-changing rule for commercial motor vehicles: requiring Unique Identification Devices (UIDs). Sparked by a petition from the Commercial Vehicle Safety Alliance (CVSA), this proposal would equip every interstate commercial vehicle with technology to transmit a unique ID to safety enforcement personnel wirelessly. The goal? To boost safety and compliance monitoring by pinpointing vehicles needing inspections and honing in on higher-risk carriers and drivers. However, there's a catch: privacy concerns. A 2023 Pew Research Center survey reveals growing unease: 71% of Americans worry about how the government uses their data, up from 64% in 2019. People feel powerless over their data, with 73% concerned about companies and 79% about government handling. Unsurprisingly, these concerns center on using, accessing, and securing data gathered through UIDs. California's Advanced Clean Trucks Regulation Effective 2024, California's Advanced Clean Trucks Regulation ushers in a new era in transportation, mandating 5% to 9% of truck sales to be zero-emission, depending on the category. This pioneering initiative aims to diminish emissions and foster clean technology, aligning with California's vision to transition to a zero-emissions transport system by 2045 . However, even though zero-emission vehicles are emission-free during operation, they still emit pollutants during their construction and the production of energy carriers. Moreover, the higher costs associated with zero-emission vehicles stemming from vehicle prices, new fueling infrastructure, and performance attributes are challenging, particularly for small fleet operators . Such operators bear the brunt of operational changes and financial pressures due to these higher costs while managing limited resources. Strategies for Navigating the New Regulatory Landscape Now that you have a bird’s eye view of the trucking industry’s new regulatory landscape, what can you do to stay compliant? It requires a strategic approach, and we’ve outlined five tips you can employ: Regular Training and Updates: Stay informed about the latest FMCSA regulations and ensure that all employees, especially drivers, receive regular training on these updates. This approach helps understand and adhere to new rules, thus minimizing the risk of violations and associated fines. Investing in Compliance Tools: Utilize advanced software solutions designed for the trucking industry. These tools can track and manage compliance-related tasks, making it easier to adhere to FMCSA regulations. Features like automated alerts, record-keeping, and reporting functionalities are invaluable. Proactive Maintenance: Regular vehicle maintenance is more important than ever. Ensure that your fleet meets all safety standards to avoid violations related to vehicle condition. Doing so not only helps in compliance but also in ensuring the safety of your operations. Accurate Record-Keeping: Maintain meticulous records of driving hours, vehicle maintenance, and other compliance-related information. Accurate record-keeping is essential for compliance, particularly with the increasing complexity of regulations and the heightened emphasis on documentation. Seeking Professional Advice: Consider consulting with legal or compliance experts specializing in the trucking industry. They can provide tailored advice and help with specific challenges and changes in regulations. On the Fast Track: Closing Remarks on the Evolving Trucking Industry Expedited trucking in 2024 feels like a high-speed chase with new rules, regulations, and technological advancements. From higher fines to new laws to proposed new laws, it's not just about keeping up; it’s about staying safe, efficient, and profitable no matter what comes your way. Now's the perfect time to team up with a logistics partner who handles these changes. Entourage Freight Solutions (EFS) is at the forefront with expertise and diverse services. From the demanding world of food service logistics to a wide array of shipping needs, EFS ensures top-notch service with the customer at the center. Addressing everything from full truckload shipments to specialized freight management and using cutting-edge tech, they ensure each shipment is monitored and adapted to changing circumstances, maintaining high service quality and efficiency. So, why not take the next step? Contact Entourage Freight Solutions, request a quote , and prepare to steer your business through 2024 and beyond.
As the world speeds up, so do the demands on the food industry. Picture a seasonal fruit company about to launch a limited-edition mango-flavored ice cream. But, with just a week left, they face a sudden shortfall of ripe mangoes due to unexpected storms. Enter expedited trucking: a fast and carefully coordinated service built for such emergencies . Within hours, a refrigerated truck dedicated solely to this task races across states, ensuring the mangoes arrive fresh and on time. This mission, more than just a delivery, is a testament to the growing significance of expedited trucking in food manufacturing. As we go deeper into this topic, we'll see how this fast-paced logistical solution has evolved from a convenience to a necessity, reshaping how food reaches from farm to factory to fork in record time . Understanding Expedited Trucking in Food Manufacturing The role of trucking in food manufacturing is like the bloodstream in the body: essential and life-sustaining. With trucking responsible for moving roughly 72.6% of the nation’s freight , it’s toiling behind the scenes, bringing ingredients to factories, products to shelves, and connecting farms, factories, and families. Consider expedited trucking as its express lane. The Expedited Trucking Process Unlike standard trucking, which operates on pre-set schedules and routes, expedited trucking is the 911 call of logistics. It's a tailored, rapid-response service that handles urgent, time-sensitive deliveries. When regular shipping says "in a week," expedited trucking says "overnight" or even "within hours." This process often involves dedicated vehicles and non-stop driving, bypassing the usual logistical hurdles to deliver urgent shipments as fast as possible. Key Benefits for Food Manufacturers For food manufacturers, expedited trucking is not just a service; it's a strategic advantage with three key benefits: Time-Sensitivity: In a world where timing is everything, expedited trucking ensures that seasonal, perishable, or limited-time products hit the market exactly when needed. Reduced Spoilage: Fast delivery means fresh ingredients and products, meaning less spoilage and waste for perishables like dairy, meats, fruits, and vegetables. After all, the U.S. wastes more food than any other country: nearly 120 billion pounds a year, or about 40% of the country’s entire food supply . Efficiency: Expedited trucking streamlines the supply chain, enabling manufacturers to operate leaner and respond faster to market demands and unexpected challenges. Impact on Supply Chain Dynamics The addition of expedited trucking into the supply chain is like introducing a high-speed train into a world accustomed to stagecoaches . It's transforming the dynamics of the movement and management of goods, making the supply chain faster, smarter, and more responsive. Enhanced Supply Chain Efficiency Imagine a world where the supply chain operates with the precision and speed of a finely tuned sports car. That's what expedited trucking brings to the logistics world. By significantly reducing transit times, expedited trucking allows businesses to implement just-in-time inventory strategies, transforming their operations into lean, agile systems that cut down on warehouse storage needs and associated costs and enable quick responses to market demands and customer needs. Take a boutique hot sauce company, for instance. The company’s unique, spicy creations are hot in taste and demand, and they're having trouble keeping pace. So, they turn to expedited trucking. The service works almost as a superpower for the company, ensuring the exotic peppers, spices, and ingredients needed arrive ASAP from distant suppliers—no more waiting for weeks, no risk of losing customers to competitors. Risk Management in Food Transportation The path perishables take from farm to fork is fraught with potential risks like temperature fluctuations, contamination, physical damage during transit, delays leading to spoilage, and loss due to inadequate storage facilities. Expedited trucking mitigates risks such as spoilage, contamination, or damage to sensitive products by shortening the delivery window. For instance, a dairy company switching to expedited trucking services can see a noticeable decrease in spoilage rates, ensuring that the products reaching consumers are as fresh as possible. Technological Advancements and Innovations Technology is reshaping our daily lives, and expedited trucking in food manufacturing is no exception. These advancements are not just about moving goods faster but smarter, safer, and more sustainable logistics. Role of Technology in Expedited Trucking Think of expedited trucking today as like a well-coordinated offense of a football team, where every player, or in this case, technology, has a specific, vital role . GPS tracking is the quarterback, guiding trucks along the most efficient routes and ensuring timely deliveries. Temperature monitoring technologies act like the offensive line protecting perishable goods against spoilage. Sophisticated logistics software functions like the coach, devising strategies to optimize routes, manage fuel usage, and enhance delivery times. It’s an orchestrated synergy that ensures your time-sensitive food items arrive in peak condition. Future Trends in Food Logistics The future of food logistics promises even greater efficiency and innovation, with advancements set to streamline the process of expedited trucking and contribute to more sustainable and eco-friendly logistics. One key trend is the increasing use of electric trucks, which could significantly reduce carbon emissions by at least 63% while maintaining the speed and efficiency of deliveries. Autonomous trucking technology is another exciting development, offering around-the-clock transportation without the constraints of human drivers. Additionally, AI and machine learning will likely become more prevalent, enabling predictive analytics to anticipate demand better and optimize supply chain operations. Best Practices for Food Manufacturers For food manufacturers, selecting the right expedited trucking service is about partnering with a carrier that can handle transporting perishable goods efficiently and reliably . Here are 5 points to consider when making that decision: Evaluate Carrier Reliability and Experience: Prioritize carriers with a strong history in expedited trucking and experience in handling perishables. High on-time delivery rates and positive customer testimonials are good indicators of reliability. Assess Technology and Tracking Capabilities: Choose carriers with advanced tracking and temperature monitoring technologies. This level of transparency allows for real-time monitoring of the shipment's condition and precise location tracking. Understand Pricing Structures: Carefully compare the pricing of various carriers. While affordability is necessary, the cheapest option may not always offer the best value. Weigh the cost against the quality of service, reliability, and speed. Plan for Flexibility and Scalability: Opt for a carrier that can adapt to your fluctuating needs, especially during peak seasons or in response to unexpected demand. Flexibility and scalability in a carrier are crucial for handling changing business dynamics. Seek Carriers with a Diverse Fleet: A carrier with a varied fleet can offer more tailored solutions for different types of shipments. Whether refrigerated trucks for dairy products or smaller vans for quick urban deliveries, a diverse fleet ensures that the specific needs of each shipment are met. Sealing the Deal: Why Choose Entourage Freight Solutions Expedited trucking has become a cornerstone in food manufacturing, transforming the way we handle perishables with efficiency and precision. This service, more than a mere convenience, is a strategic asset that addresses the unique demands of food logistics – delivering freshness at speed. Entourage Freight Solutions (EFS) embodies this dynamic , offering tailored services that cater to the diverse needs of foodservice and food manufacturing . From comprehensive truckload options to specialized refrigerated transport and beyond, EFS's portfolio covers every aspect of modern food logistics. They provide a reliable network of services, including Full Truckload , Less Than Truckload , Refrigerated Trucking , Cross Docking , and more, ensuring that your food products are handled with the utmost care and professionalism. For those seeking a logistics partner that combines speed, reliability, and expertise, reach out to Entourage Freight Solutions and request a quote to elevate your food transportation strategy.
Let's cut to the chase — 2024's food transportation and logistics outlook is pulsing with innovation and challenges . Imagine a world where sleek technology seamlessly intertwines with the gritty realities of labor and operational costs, all while consumer choices shift like the tides. This sector isn't just about DC-to-DC transfers or the backdrop to our daily lives; it's a living, breathing ecosystem adapting to the rhythms of technological progress, economic shifts, and evolving tastes. We're about to unpack three transformative trends shaking up the industry, revealing what’s making it tick and keeping our world nourished and moving. Trend 1: Technology and Automation in Food Logistics Food logistics is undergoing a revolutionary change driven primarily by technology and automation. It’s a shift not just about efficiency but a response to various challenges, including changing consumer demands, environmental concerns, and the need for greater transparency. Rising Importance of Supply Chain Visibility Recent events over the past three-plus years have revealed the fragility of our food supply chain. The pandemic led to abrupt order cancellations for foodservice suppliers, resulting in significant stock excess due to mismatches in packaging sizes , exacerbating food waste. Geopolitical tensions, particularly the conflict in Ukraine, have disrupted vital crop supplies like wheat and corn, impacting global food accessibility . Similarly, climate change has led to concerning agricultural shifts ; Malaysia's chicken export restrictions due to reduced egg production in extreme heat and India's wheat export ban following a heatwave-induced yield drop are prime examples. In response, technology has become indispensable. With only 6% of companies having full supply chain visibility, 70% now prioritize this aspect strategically . Emerging technologies like AI and machine learning further revolutionize this space , enhancing demand forecasting, inventory management, and market responsiveness. Adoption of Advanced Technologies Let's take a closer look into those innovative technologies transforming food transportation: Real-Time Visibility: Essential for tracking goods, monitoring inventory, and adapting to demand changes. Alpine Fresh, a major player in the U.S. fruit and vegetable import market, is a prime example of the impact of this technology . They faced substantial losses due to untraceable shipments and product spoilage, so they turned to Tive’s Solo 5G trackers. This move improved their logistics operations and saved them hundreds of thousands of dollars. Blockchain: This technology offers a secure, decentralized ledger, vital for industries needing high transparency and traceability. Nestlé's use of IBM's Food Trust blockchain ledger exemplifies this . Through it, they can track the origin of products like Mousline purée and Zoégas coffee, partnering with the Rainforest Alliance to monitor cocoa bean sources, enhancing consumer transparency and supporting sustainable farming practices. Artificial Intelligence (AI): AI's application ranges from predictive analytics to data analysis and automation. Its impact on the food supply chain is significant, addressing challenges like container storage costs, asset planning, and route optimization. The increasing adoption of AI-driven solutions in the industry is a testament to its effectiveness in streamlining operations and enhancing overall efficiency. Trend 2: Addressing Operational Challenges The second trend shaping food transportation and logistics is addressing operational challenges. This trend encompasses two major areas: labor and talent management and capacity and cost issues. Labor and Talent Management Beyond food logistics, the challenges of retaining workers and managing rising labor costs impact the entire value chain in the transportation and logistics sector. Despite wage increases, logistics operations struggle with hiring and retaining frontline workers. Over 3 million truck driver positions are unfilled globally, including a 60,000 driver shortage in the U.S. Worse, this global shortage could double by 2028 . To address these issues, companies are building strategic relationships with temporary staffing agencies and prioritizing proactive hiring, employee development, competitive compensation packages, workforce retention , and developing managers and supervisors. They also leverage technology like advanced tracking and automation systems for more efficient operations. Dealing with Transportation Capacity and Cost Issues A 2022 survey revealed that 71.8% of companies were dealing with global supply chain disruptions, and 57.7% were working through ongoing transportation capacity shortages. Consequently, U.S. business logistics costs surged to $2.3 trillion, a substantial 19.6% increase from the previous year, accounting for 9.1% of the nation's GDP, the highest in the deregulated era . These challenges persisted throughout 2023 and led to rising transportation costs , directly impacting the profit margins of food and beverage manufacturers and causing widespread operational disruptions. In response, companies are adopting innovative approaches like big data analytics for improved operational insights and route optimization, utilizing Industry 4.0 tools for waste reduction and food safety , switching to more efficient materials like plastic pallets for transportation, and implementing advanced optimization algorithms to enhance transportation efficiency. Trend 3: Consumer Behavior and Market Dynamics The third and final trend impacting food transportation and logistics is the interplay of evolving consumer behaviors and global market dynamics. Shifting Consumer Preferences Shifting consumer preferences are significantly influencing food transportation. A study by Ingredion shows that 75% of consumers are making more deliberate food choices, with a willingness to pay more for brands aligning with their ideals. Deloitte UK also highlights how the rise in energy prices in 2023 drove consumers towards sustainable products and packaging . Simultaneously, BCG reports that health, quality, and nutrition are top priorities in food choices. These trends necessitate efficient transportation for fresh, organic, and local foods, transparency in processed food supply chains, and robust networks for increasing online grocery shopping and home delivery services. Moreover, as consumer behavior evolves, driven by social trends, economic conditions, and technological advancements , businesses must adapt their supply chain and product offerings to meet these changing demands. Economic and Geopolitical Influences As we kick off 2024, the food transportation sector is still reeling from the prolonged impacts of inflation that began in mid-2021 despite recent signs of easing . Plus, even if the economy sees a “soft landing” in 2024, economists still expect inflation to remain above the Fed’s long-term 2% inflation target . After all, food prices increased 5.8% in 2023 and could rise another 1.2% in 2024 . Compounding these challenges are geopolitical tensions and fluctuating global trade policies. Tensions are occurring worldwide, but the Russia-Ukraine War, with the region’s importance to energy and as Europe’s breadbasket , has disrupted supply chains and spiked energy prices. In response, the sector is adopting several strategies to mitigate these effects. These include improving operational efficiency, strategically managing costs and purchases , and enhancing price-negotiation capabilities . In addressing geopolitical uncertainties, investments in renewable energy , effective recycling of surplus nutrients, regionalizing supply chains , and exploring alternative revenue streams are also key tactics. Food Logistics: Entourage Freight Solutions (EFS) and The Road Ahead The food transportation and logistics world is changing, with technology, operational hurdles, and consumer trends at the forefront. So, if your head is spinning, that’s understandable. How can you put your best foot forward to confront these trends? The answer lies in working with providers like Entourage Freight Solutions (EFS) . With specialized logistics services designed to cater to the complex needs of this dynamic sector, EFS has an answer for everything in foodservice logistics , food manufacturing , and beyond. Whether leveraging cloud-based technologies for real-time tracking, implementing strategic supply chain solutions, or needing expedited services and a refrigerated truck , they ensure top-tier service regardless of your needs. Entourage Freight Solutions is your go-to partner. Request a quote today and position yourself in the best way possible to thrive in the face of these changes.