Supply Scan

News and Trends from accross the Food Supply Chain


In just three years of operation, iGPS says it has revolutionized the way goods are being shipped throughout the North American supply chain.

Its 100 percent recyclable pallets are 30 percent lighter than pallets made of wood and are vastly better for the environment.

» IWLA Asks FDA To Maintain 3PL Responsibility Over Recalled Food Products

Joel D. Anderson, president and chief executive officer of the International Warehouse Logistics Association, Des Plaines, IL, asked the U.S. Food and Drug Administration to clarify a recently issued draft regulatory guidance regarding the reporting of adulterated food product by third-party logistics providers.

The FDA guidance document implements the requirements of the Reportable Food Registry and the reporting of adulterated food products. IWLA’s letter specifically responds to FDA’s request for recommendations for determining when a food product has been transferred in the supply chain.

“Whether or not an article of food has been transferred from customer to the 3PL warehouse is a significant issue for the 3PL industry,” Anderson said in a July 26 letter to FDA. He urged the agency to make clear in its written guidance that a transfer of product occurs upon transfer of ownership, not upon transfer of possession.

“A 3PL never takes title to or ownership of the products in the warehouse—rather he serves as a logistics intermediary in the supply chain,” Anderson says. “Although the customer ships product to a 3PL warehouse to be held until further direction, no transfer of legal title of the food has occurred. Accordingly, we recommend that FDA clarify in the guidance document that ‘transfer’ occurs upon change of ownership, not a change in physical possession or control.”

He points out that the guidance issued by FDA correctly maintains the statutory standard holding a report is not required if the adulteration originated with the responsible party, which detected the adulteration prior to any transfer and corrected the adulteration or destroyed the article of food.

This clarification of the reference to “transfer” in the guidance that IWLA seeks would allow the customer of the 3PL warehouse to correct or destroy the adulterated product through contractual arrangements governed by the Uniform Commercial Code, Anderson said.

» Sysco Acquires Lincoln Poultry & Egg Co.

Sysco Corp., Houston, has acquired Lincoln Poultry & Egg Co., a broadline foodservice distributor based in Lincoln, NE. The management team and employees of Lincoln Poultry will become employees of Sysco.

“Lincoln Poultry’s high-quality operation and deep customer relationships represent an excellent growth opportunity for Sysco,” says Mike Green, Sysco’s executive vice president, foodservice operations.

Lincoln started as a fresh poultry and egg distribution business in 1957. It serves more than 800 customers which are primarily located throughout the central United States.

» ATA Supports Efforts To Reduce Truck Idling

The American Trucking Association and several of its affiliates support the Diesel Idle Reduction Campaign headed by the Metropolitan Washington Council of Governments (COG), in partnership with the District Department of the Environment, District Department of Transportation and Maryland Department of the Environment.

The aim of the campaign, which was launched on July 13, is to reduce discretionary idling, improve public health and protect the environment. The program is aligned with the goals of ATA’s Sustainability Initiative.

ATA launched its six-prong campaign in 2008, with one goal being the reduction of both discretionary and non-discretionary idling. Discretionary idling, the type being targeted by COG’s campaign, occurs when drivers leave engines running during their rest periods to provide heat or air conditioning for the sleeper compartment, keep the engine warm during cold weather and provide electrical power for their appliances.

Non-discretionary idling, which can be reduced by improvements to our national highway system that alleviate bottlenecks, occurs when vehicles are stuck in congested traffic.

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