Utz finds creative solution to fending off snack attacks
Utz Quality Foods wanted a way to assure there was nothing in its bags of snack foods but the product itself. With its new automated system and in-line X-ray, it now has visual proof.
Peter Bradley is an award-winning career journalist with more than three decades of experience in both newspapers and national business magazines. His credentials include seven years as the transportation and supply chain editor at Purchasing Magazine and six years as the chief editor of Logistics Management.
To some, the name Utz is synonymous with potato chips. But serious snack food fans know better. As they can tell you, the Hanover, Pa.-based company also makes pretzels, cheese curls, cheese balls, popcorn, tortilla chips, and party mix—essentially everything needed for an afternoon of watching football but the TV.
Since its founding in 1921, Utz Quality Foods has grown to become one of the largest privately held snack companies in the United States, serving markets along the East Coast from Maine into the Carolinas. It distributes its products through a network of regional DCs—both company-owned and leased facilities—extending across 15 states. In addition to the regional DCs, Utz operates what it calls its "World Distribution Center," a facility located adjacent to one of the company's four manufacturing plants in Hanover. From there, orders are shipped daily to the distribution network using Utz's private fleet and outside trucking firms, says Jeff Fuhrman, the company's vice president of engineering. A separate warehouse for bulk distribution serves its big box and warehouse club customers.
Given the high volume of products it ships out to major companies, Utz was becoming increasingly concerned about ensuring the integrity of every bag of snacks. "Food safety became an issue for us," says Fuhrman. In particular, Utz wanted to find a way to assure that as products passed through manufacturing to the consumer, they were free of foreign contamination.
When it came to specifying its requirements for the system, the company set the bar pretty high. Essentially, what it wanted was an ultra-reliable method of inspecting high volumes of product without creating unnecessary delays. Eventually, it found the solution it sought. Working in collaboration with Hytrol Conveyor Co. and its material handling systems integrator Wepco Inc., the company came up with an innovative blend of X-ray technology and automated material handling equipment that has both enhanced the safety of its products and boosted the operation's productivity.
High-tech inspections
The centerpiece of the new system, which went into operation at Utz's Kindig Lane manufacturing and central distribution facility this summer, is a conveyor system that whisks finished cartons from packaging through an X-ray device and on to an automated sorter prior to palletizing and shipping.
Under the new process, machines do most of the heavy lifting, freeing workers for lighter duties and problem-solving tasks. After the cartons are packed in production, workers manually apply bar-code labels to each carton with the appropriate product and expiration code information. The cartons are placed onto one of eight Hytrol E24 conveyor lines, where they accumulate prior to being loaded onto one of eight vertical lifts. The vertical lifts (supplied by United Sortation Solutions) elevate the cartons so they can be merged onto a main conveyor line, which in turn carries them around a 90-degree curve onto a mezzanine and on to the X-ray detector.
While the cartons are moving through the system, information on their contents is being fed to the X-ray device. "Prior to passing through the X-ray detector, the bar code of each carton is scanned and the product SKU information is sent to the X-ray system," Fuhrman explains. "What we're looking for are foreign objects, missing product, seasoning conglomerates, and incorrect weights."
If any of those conditions are detected, the system rejects the case into a contaminated lane, an over/underweight lane, or a failed bar-code read lane. "The system captures an image of each carton, making it easy for employees to identify which package in the carton has a problem," Fuhrman adds.
When the X-ray system rejects a carton, it sends an alert to the DC managers. Employees then address any cartons that were rejected, removing the problem package or investigating the cause of a failed bar-code read. The corrected cartons are then reintroduced into the system at a point prior to the X-ray detector.
Cartons that pass through the X-ray system without issues descend on a spiral conveyor past a bar-code reader and onto a Hytrol two-sided narrow belt sorter. The sorter diverts cartons to one of 14 gravity sort lanes as determined by the bar code. At the end of these gravity lanes, workers palletize the cartons by hand. Cartons the scanner failed to read are diverted to a designated gravity sort lane. When a lane is full, cartons recirculate through the sorter until they can be accommodated.
Big plans for the future
As for how it's all working out to date, Fuhrman has high praise for the new system. In addition to achieving the primary goal of food safety, he says, it has yielded a number of other benefits.
For one thing, it has streamlined operations, providing Utz with a significant boost in productivity. For another, it has enabled the company to make more productive use of space in the DC. On top of that, it has improved product quality, Fuhrman adds. The X-ray helps detect what he calls "conglomerates," such as seasonings or products that have clumped together.
When asked what's next, Fuhrman says the company will add automated case packing and palletizing equipment to the system in the near future. In addition, he says, there are plans to install six additional vertical lifts. "We've set up the infrastructure for a totally automated system," he says.
But perhaps the best measure of the system's success is the company's decision to expand it beyond the Kindig Lane facility. Fuhrman reports that Utz will soon install similar systems at its other manufacturing plants to ensure that no foreign objects of any kind find their way into its products. "Our food safety goal is to X-ray every product," he says. "This has been a huge help."
Grocery shoppers at select IGA, Price Less, and Food Giant stores will soon be able to use an upgraded in-store digital commerce experience, since store chain operator Houchens Food Group said it would deploy technology from eGrowcery, provider of a retail food industry white-label digital commerce platform.
Kentucky-based Houchens Food Group, which owns and operates more than 400 grocery, convenience, hardware/DIY, and foodservice locations in 15 states, said the move would empower retailers to rethink how and when to engage their shoppers best.
“At HFG we are focused on technology vendors that allow for highly targeted and personalized customer experiences, data-driven decision making, and e-commerce capabilities that do not interrupt day to day customer service at store level. We are thrilled to partner with eGrowcery to assist us in targeting the right audience with the right message at the right time,” Craig Knies, Chief Marketing Officer of Houchens Food Group, said in a release.
Michigan-based eGrowcery, which operates both in the United States and abroad, says it gives retail groups like Houchens Food Group the ability to provide a white-label e-commerce platform to the retailers it supplies, and integrate the program into the company’s overall technology offering. “Houchens Food Group is a great example of an organization that is working hard to simultaneously enhance its technology offering, engage shoppers through more channels and alleviate some of the administrative burden for its staff,” Patrick Hughes, CEO of eGrowcery, said.
The 40-acre solar facility in Gentry, Arkansas, includes nearly 18,000 solar panels and 10,000-plus bi-facial solar modules to capture sunlight, which is then converted to electricity and transmitted to a nearby electric grid for Carroll County Electric. The facility will produce approximately 9.3M kWh annually and utilize net metering, which helps transfer surplus power onto the power grid.
Construction of the facility began in 2024. The project was managed by NextEra Energy and completed by Verogy. Both Trio (formerly Edison Energy) and Carroll Electric Cooperative Corporation provided ongoing consultation throughout planning and development.
“By commissioning this solar facility, J.B. Hunt is demonstrating our commitment to enhancing the communities we serve and to investing in economically viable practices aimed at creating a more sustainable supply chain,” Greer Woodruff, executive vice president of safety, sustainability and maintenance at J.B. Hunt, said in a release. “The annual amount of clean energy generated by the J.B. Hunt Solar Facility will be equivalent to that used by nearly 1,200 homes. And, by drawing power from the sun and not a carbon-based source, the carbon dioxide kept from entering the atmosphere will be equivalent to eliminating 1,400 passenger vehicles from the road each year.”
As a contract provider of warehousing, logistics, and supply chain solutions, Geodis often has to provide customized services for clients.
That was the case recently when one of its customers asked Geodis to up its inventory monitoring game—specifically, to begin conducting quarterly cycle counts of the goods it stored at a Geodis site. Trouble was, performing more frequent counts would be something of a burden for the facility, which still conducted inventory counts manually—a process that was tedious and, depending on what else the team needed to accomplish, sometimes required overtime.
So Levallois, France-based Geodis launched a search for a technology solution that would both meet the customer’s demand and make its inventory monitoring more efficient overall, hoping to save time, labor, and money in the process.
SCAN AND DELIVER
Geodis found a solution with Gather AI, a Pittsburgh-based firm that automates inventory monitoring by deploying small drones to fly through a warehouse autonomously scanning pallets and cases. The system’s machine learning (ML) algorithm analyzes the resulting inventory pictures to identify barcodes, lot codes, text, and expiration dates; count boxes; and estimate occupancy, gathering information that warehouse operators need and comparing it with what’s in the warehouse management system (WMS).
Among other benefits, this means employees no longer have to spend long hours doing manual inventory counts with order-picker forklifts. On top of that, the warehouse manager is able to view inventory data in real time from a web dashboard and identify and address inventory exceptions.
But perhaps the biggest benefit of all is the speed at which it all happens. Gather AI’s drones perform those scans up to 15 times faster than traditional methods, the company says. To that point, it notes that before the drones were deployed at the Geodis site, four manual counters could complete approximately 800 counts in a day. By contrast, the drones are able to scan 1,200 locations per day.
FLEXIBLE FLYERS
Although Geodis had a number of options when it came to tech vendors, there were a couple of factors that tipped the odds in Gather AI’s favor, the partners said. One was its close cultural fit with Geodis. “Probably most important during that vetting process was understanding the cultural fit between Geodis and that vendor. We truly wanted to form a relationship with the company we selected,” Geodis Senior Director of Innovation Andy Johnston said in a release.
Speaking to this cultural fit, Johnston added, “Gather AI understood our business, our challenges, and the course of business throughout our day. They trained our personnel to get them comfortable with the technology and provided them with a tool that would truly make their job easier. This is pretty advanced technology, but the Gather AI user interface allowed our staff to see inventory variances intuitively, and they picked it up quickly. This shows me that Gather AI understood what we needed.”
Another factor in Gather AI’s favor was the prospect of a quick and easy deployment: Because the drones can conduct their missions without GPS or Wi-Fi, the supplier would be able to get its solution up and running quickly. In the words of Geodis Industrial Engineer Trent McDermott, “The Gather AI implementation process was efficient. There were no IT infrastructure or layout changes needed, and Gather AI was flexible with the installation to not disrupt peak hours for the operations team.”
QUICK RESULTS
Once the drones were in the air, Geodis saw immediate improvements in cycle counting speed, according to Gather AI. But that wasn’t the only benefit: Geodis was also able to more easily find misplaced pallets.
“Previously, we would research the inventory’s systemic license plate number (LPN),” McDermott explained. “We could narrow it down to a portion or a section of the warehouse where we thought that LPN was, but there was still a lot of ambiguity. So we would send an operator out on a mission to go hunt and find that LPN,” a process that could take a day or two to complete. But the days of scouring the facility for lost pallets are over. With Gather AI, the team can simply search in the dashboard to find the last location where the pallet was scanned.
And about that customer who wanted more frequent inventory counts? Geodis reports that it completed its first quarterly count for the client in half the time it had previously taken, with no overtime needed. “It’s a huge win for us to trim that time down,” McDermott said. “Just two weeks into the new quarter, we were able to have 40% of the warehouse completed.”
Trade and transportation groups are congratulating Sean Duffy today for winning confirmation in a U.S. Senate vote to become the country’s next Secretary of Transportation.
Once he’s sworn in, Duffy will become the nation’s 20th person to hold that post, succeeding the recently departed Pete Buttigieg.
Transportation groups quickly called on Duffy to work on continuing the burst of long-overdue infrastructure spending that was a hallmark of the Biden Administration’s passing of the bipartisan infrastructure law, known formally as the Infrastructure Investment and Jobs Act (IIJA).
But according to industry associations such as the Coalition for America’s Gateways and Trade Corridors (CAGTC), federal spending is critical for funding large freight projects that sustain U.S. supply chains. “[Duffy] will direct the Department at an important time, implementing the remaining two years of the Infrastructure Investment and Jobs Act, and charting a course for the next surface transportation reauthorization,” CAGTC Executive Director Elaine Nessle said in a release. “During his confirmation hearing, Secretary Duffy shared the new Administration’s goal to invest in large, durable projects that connect the nation and commerce. CAGTC shares this goal and is eager to work with Secretary Duffy to ensure that nationally and regionally significant freight projects are advanced swiftly and funded robustly.”
A similar message came from the International Foodservice Distributors Association (IFDA). “A safe, efficient, and reliable transportation network is essential to our industry, enabling 33 million cases of food and related products to reach professional kitchens every day. We look forward to working with Secretary Duffy to strengthen America’s transportation infrastructure and workforce to support the safe and seamless movement of ingredients that make meals away from home possible,” IFDA President and CEO Mark S. Allen said in a release.
And the truck drivers’ group the Owner-Operator Independent Drivers Association (OOIDA) likewise called for continued investment in projects like creating new parking spaces for Class 8 trucks. “OOIDA and the 150,000 small business truckers we represent congratulate Secretary Sean Duffy on his confirmation to lead the U.S. Department of Transportation,” OOIDA President Todd Spencer said in a release. “We look forward to continue working with him in advancing the priorities of small business truckers across America, including expanding truck parking, fighting freight fraud, and rolling back burdensome, unnecessary regulations.”
With the new Trump Administration continuing to threaten steep tariffs on Mexico, Canada, and China as early as February 1, supply chain organizations preparing for that economic shock must be prepared to make strategic responses that go beyond either absorbing new costs or passing them on to customers, according to Gartner Inc.
But even as they face what would be the most significant tariff changes proposed in the past 50 years, some enterprises could use the potential market volatility to drive a competitive advantage against their rivals, the analyst group said.
Gartner experts said the risks of acting too early to proposed tariffs—and anticipated countermeasures by trading partners—are as acute as acting too late. Chief supply chain officers (CSCOs) should be projecting ahead to potential countermeasures, escalations and de-escalations as part of their current scenario planning activities.
“CSCOs who anticipate that current tariff volatility will persist for years, rather than months, should also recognize that their business operations will not emerge successful by remaining static or purely on the defensive,” Brian Whitlock, Senior Research Director in Gartner’s supply chain practice, said in a release.
“The long-term winners will reinvent or reinvigorate their business strategies, developing new capabilities that drive competitive advantage. In almost all cases, this will require material business investment and should be a focal point of current scenario planning,” Whitlock said.
Gartner listed five possible pathways for CSCOs and other leaders to consider when faced with new tariff policy changes:
Retire certain products: Tariff volatility will stress some specific products, or even organizations, to a breaking point, so some enterprises may have to accept that worsening geopolitical conditions should force the retirement of that product.
Renovate products to adjust: New tariffs could prompt renovations (adjustments) to products that were overdue, as businesses will need to take a hard look at the viability of raising or absorbing costs in a still price-sensitive environment.
Rebalance: Additional volatility should be factored into future demand planning, as early winners and losers from initial tariff policies must both be prepared for potential countermeasures, policy escalations and de-escalations, and competitor responses.
Reinvent: As tariff volatility persists, some companies should consider investing in new projects in markets that are not impacted or that align with new geopolitical incentives. Others may pivot and repurpose existing facilities to serve local markets.
Reinvigorate: Early winners of announced tariffs should seek opportunities to extend competitive advantages. For example, they could look to expand existing US-based or domestic manufacturing capacity or reposition themselves within the market by lowering their prices to take market share and drive business growth.