Supply Scan

7-Eleven Opens 'Green' Commissary, DC


GMA, FMI SIGN COLLABORATION AGREEMENT

The Food Marketing Institute (FMI) and the Grocery Manufacturers Association (GMA) have signed a two-year agreement to develop a common agenda on supply chain issues and other initiatives.

Steven C. Smith, chairman of FMI and president and CEO of K-VA-T Food Stores and Douglas R. Conant, chairman of GMA and president, signed a Joint Memorandum of Understanding Collaboration Agreement at the FMI Midwinter Executive Conference in Orlando, FL, last month.

The agreement calls for greater collaboration and is focused on enhancing manufacturer-retailer engagement to achieve improved supply chain efficiency, better ways to serve consumers and more efficient use of association and member resources.

Under the terms of the agreement, the associations’ industry affairs agenda will be strengthened through the creation of a joint industry affairs-industry relations leadership group known as The Trading Partner Alliance (TPA).

The TPA will develop a common agenda on supply chain efficiency issues, the application of information technology, the adoption of environmentally-friendly business practices and other issues.

The agreement also calls for increased collaboration on public policy, scientific and regulatory affairs activity.

The term of the agreement is from January 2009 to December 2010.

USDA ISSUES FINAL RULE ON COUNTRY OF ORIGIN LABELING

The United States Department of Agriculture (USDA) has announced details of the final regulation for the mandatory country of origin labeling (COOL) program required by the 2002 and 2008 farm bills.

The rule becomes effective on March 16, 2009, 60 days after the date of publication.

The rule covers muscle cuts and ground beef, lamb, chicken, goat and pork; wild and farm-raised fish and shellfish; perishable agricultural commodities (specifically fresh and frozen fruits and vegetables); macadamia nuts; pecans; ginseng and peanuts.

Commodities covered under COOL must be labeled at retail to indicate its country of origin. For fish and shellfish, the method of production—wild or farm-raised—must be specified. Commodities are excluded from mandatory COOL if the commodity is an ingredient in a processed food item.

Excluded from COOL labeling are items derived from a covered commodity that has undergone a physical or chemical change or that has been combined with other covered commodities or other substantive food components such as chocolate, breading and tomato sauce.

Also exempt are food service establishments, such as restaurants, lunchrooms, cafeterias, food stands, bars, lounges and similar enterprises.

The final rule outlines the requirements for labeling covered commodities and the recordkeeping requirements for retailers and suppliers. The law provides for penalties of up to $1,000 per violation for both retailers and suppliers not complying with the law.

FRITO LAY CANADA REPLACES CROSS-DOCK OPERATION WITH DEMOUNTABLE SYSTEM

Frito Lay Canada recently replaced its Montreal cross-dock facility with the Warehouse on Wheels System by Demountable Concepts Inc., Glassboro, NJ.

In 2006, Frito Lay Canada, based in Cambridge, Ontario, had approximately 365 separate facilities distributing snack food to retail centers from six factories across the country. This large number of distribution centers led the company to decide that retooling its distribution systems would increase efficiency and result in significant savings.

Most of Frito Lay’s facilities were cross-dock operations being serviced by larger distribution centers. Trucks would arrive at the regional cross-dock and product would be unloaded, sorted and loaded into local delivery trucks that made retail deliveries.

While researching ways to make its cross-docks more efficient Frito Lay discovered the Warehouse on Wheels System, a truck-based alternative to cross-docking widely used for hub and spoke retail distribution throughout North America.

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