Food distributor cuts routing time in half with delivery-management software
To handle scheduling for a fleet that has quadrupled in size over the past two years, Quirch Foods turned to the DispatchTrack delivery management platform.
Ben Ames has spent 20 years as a journalist since starting out as a daily newspaper reporter in Pennsylvania in 1995. From 1999 forward, he has focused on business and technology reporting for a number of trade journals, beginning when he joined Design News and Modern Materials Handling magazines. Ames is author of the trail guide "Hiking Massachusetts" and is a graduate of the Columbia School of Journalism.
If you’re a food retailer in the U.S., Latin America, or the Caribbean and you carry tasty products like Panamei salmon, Mambo empanadas, or Chiquita tostones, then there’s a good chance you’re familiar with Quirch Foods LLC. Since 1967, the Coral Gables, Florida-based company has been one of the region’s largest food distribution companies. Quirch serves customers like independent and chain supermarkets, food-service distributors, processors and manufacturers, cruise lines, and restaurants.
The distributor has been growing steadily throughout its 55 years, but that expansion has accelerated since 2018, when the private equity fund Palladium Equity Partners made a "significant investment” in the company. In recent years, Quirch has acquired a number of smaller brands, including Colorado Boxed Beef, Butts Foods, Pacific Food Distributors, Scariano Wholesale Food Distribution, Phoenix Logistics & Cold Storage, and IQ Foods.
To accommodate that growth, Quirch has quadrupled its fleet over the past two years. Today, the company operates just under 500 refrigerated trucks that make more than 7,000 stops a day. The trucks service a network of 23 distribution centers in Florida, Georgia, North Carolina, Tennessee, Alabama, Louisiana, Illinois, Texas, Washington, Oregon, and Puerto Rico that collectively represent 2.3 million square feet of space.
To get a better handle on its expanding fleet operation, Quirch recently contracted with software developer DispatchTrack to help it streamline its routes, reduce miles driven, and ensure faster, on-time delivery. Based in San Jose, California, DispatchTrack offers a scalable SaaS (software as a service) delivery management platform that uses an artificial intelligence (AI)-powered routing algorithm to ensure high ETA (estimated time of arrival) accuracy in last-mile deliveries.
ROUTING MADE EASY
The collaboration has been a success, according to leaders at both companies. “DispatchTrack’s hybrid routing has allowed us to create far more efficient routes in radically less time, and this increased efficiency has translated into time and cost savings,” Luis Porto, director of operations development at Quirch Foods, said in a release. “Additionally, having access to real-time information during deliveries has greatly improved the quality and speed of communication with our internal teams and our customers.”
Since the project began, DispatchTrack’s last-mile solution has allowed Quirch to continue to grow its business while preventing dips in customer service and minimizing the risk of late deliveries to important customers, the company reports.
At the same time, Quirch has been able to reduce its routing time by 50%, according to Satish Natarajan, DispatchTrack’s co-founder and CEO. As for what that process entails, the software developer defines routing time as the amount of time it takes to route all of the necessary trucks while optimizing for customer time-window expectations and driver skills, minimizing the number of trucks, and ensuring the fewest possible miles are driven.
“[In the past,] on a bad day, the routing exercise from a particular distribution center might have taken as long as three hours. With DispatchTrack, even on the worst days, routing only takes about an hour—on a good day, that might be as little as 25 minutes,” Natarajan said.
IMC says it specializes in comprehensive end-to-end transportation solutions to or from seaports or rail hubs, customer facilities and inland in the United States. The firm’s network of 49 locations handles 2 million twenty-foot equivalent units (TEUs) annually in intermodal drayage and rail operations. IMC employs around 1,700 people and earned revenue of around $800 million in 2023.
According to Kuehne+Nagel, the move ensures flexible transportation solutions in times of increasing supply chain disruptions throughput its network of almost 1,300 sites in close to 100 countries and some 80,000 employees.
"The Kuehne+Nagel strategy is based on organic growth supported by targeted bolt-on acquisitions. Asia and North America are the key growth markets for our business, where we have established a leading position which we systematically expand,” Joerg Wolle, chairman of the board of directors of Kuehne+Nagel International AG, said in a release. “With IMC in the USA as with the acquisition of Apex in Asia, we do rely on long term partnerships. This reduces the acquisition risk, ensures quick success by deepening an already rewarding cooperation. Acquiring a majority stake in IMC represents another important strategic step.”
An eight-year veteran of the Georgia company, Hakala will begin his new role on January 1, when the current CEO, Tero Peltomäki, will retire after a long and noteworthy career, continuing as a member of the board of directors, Cimcorp said.
According to Hakala, automation is an inevitable course in Cimcorp’s core sectors, and the company’s end-to-end capabilities will be crucial for clients’ success. In the past, both the tire and grocery retail industries have automated individual machines and parts of their operations. In recent years, automation has spread throughout the facilities, as companies want to be able to see their entire operation with one look, utilize analytics, optimize processes, and lead with data.
“Cimcorp has always grown by starting small in the new business segments. We’ve created one solution first, and as we’ve gained more knowledge of our clients’ challenges, we have been able to expand,” Hakala said in a release. “In every phase, we aim to bring our experience to the table and even challenge the client’s initial perspective. We are interested in what our client does and how it could be done better and more efficiently.”
Although many shoppers will
return to physical stores this holiday season, online shopping remains a driving force behind peak-season shipping challenges, especially when it comes to the last mile. Consumers still want fast, free shipping if they can get it—without any delays or disruptions to their holiday deliveries.
One disruptor that gets a lot of headlines this time of year is package theft—committed by so-called “porch pirates.” These are thieves who snatch parcels from front stairs, side porches, and driveways in neighborhoods across the country. The problem adds up to billions of dollars in stolen merchandise each year—not to mention headaches for shippers, parcel delivery companies, and, of course, consumers.
Given the scope of the problem, it’s no wonder online shoppers are worried about it—especially during holiday season. In its annual report on package theft trends, released in October, the
security-focused research and product review firm Security.org found that:
17% of Americans had a package stolen in the past three months, with the typical stolen parcel worth about $50. Some 44% said they’d had a package taken at some point in their life.
Package thieves poached more than $8 billion in merchandise over the past year.
18% of adults said they’d had a package stolen that contained a gift for someone else.
Ahead of the holiday season, 88% of adults said they were worried about theft of online purchases, with more than a quarter saying they were “extremely” or “very” concerned.
But it doesn’t have to be that way. There are some low-tech steps consumers can take to help guard against porch piracy along with some high-tech logistics-focused innovations in the pipeline that can protect deliveries in the last mile. First, some common-sense advice on avoiding package theft from the Security.org research:
Install a doorbell camera, which is a relatively low-cost deterrent.
Bring packages inside promptly or arrange to have them delivered to a secure location if no one will be at home.
Consider using click-and-collect options when possible.
If the retailer allows you to specify delivery-time windows, consider doing so to avoid having packages sit outside for extended periods.
These steps may sound basic, but they are by no means a given: Fewer than half of Americans consider the timing of deliveries, less than a third have a doorbell camera, and nearly one-fifth take no precautions to prevent package theft, according to the research.
Tech vendors are stepping up to help. One example is
Arrive AI, which develops smart mailboxes for last-mile delivery and pickup. The company says its Mailbox-as-a-Service (MaaS) platform will revolutionize the last mile by building a network of parcel-storage boxes that can be accessed by people, drones, or robots. In a nutshell: Packages are placed into a weatherproof box via drone, robot, driverless carrier, or traditional delivery method—and no one other than the rightful owner can access it.
Although the platform is still in development, the company already offers solutions for business clients looking to secure high-value deliveries and sensitive shipments. The health-care industry is one example: Arrive AI offers secure drone delivery of medical supplies, prescriptions, lab samples, and the like to hospitals and other health-care facilities. The platform provides real-time tracking, chain-of-custody controls, and theft-prevention features. Arrive is conducting short-term deployments between logistics companies and health-care partners now, according to a company spokesperson.
The MaaS solution has a pretty high cool factor. And the common-sense best practices just seem like solid advice. Maybe combining both is the key to a more secure last mile—during peak shipping season and throughout the year as well.
The Boston-based enterprise software vendor Board has acquired the California company Prevedere, a provider of predictive planning technology, saying the move will integrate internal performance metrics with external economic intelligence.
According to Board, the combined technologies will integrate millions of external data points—ranging from macroeconomic indicators to AI-driven predictive models—to help companies build predictive models for critical planning needs, cutting costs by reducing inventory excess and optimizing logistics in response to global trade dynamics.
That is particularly valuable in today’s rapidly changing markets, where companies face evolving customer preferences and economic shifts, the company said. “Our customers spend significant time analyzing internal data but often lack visibility into how external factors might impact their planning,” Jeff Casale, CEO of Board, said in a release. “By integrating Prevedere, we eliminate those blind spots, equipping executives with a complete view of their operating environment. This empowers them to respond dynamically to market changes and make informed decisions that drive competitive advantage.”
Material handling automation provider Vecna Robotics today named Karl Iagnemma as its new CEO and announced $14.5 million in additional funding from existing investors, the Waltham, Massachusetts firm said.
The fresh funding is earmarked to accelerate technology and product enhancements to address the automation needs of operators in automotive, general manufacturing, and high-volume warehousing.
Iagnemma comes to the company after roles as an MIT researcher and inventor, and with leadership titles including co-founder and CEO of autonomous vehicle technology company nuTonomy. The tier 1 supplier Aptiv acquired Aptiv in 2017 for $450 million, and named Iagnemma as founding CEO of Motional, its $4 billion robotaxi joint venture with automaker Hyundai Motor Group.
“Automation in logistics today is similar to the current state of robotaxis, in that there is a massive market opportunity but little market penetration,” Iagnemma said in a release. “I join Vecna Robotics at an inflection point in the material handling market, where operators are poised to adopt automation at scale. Vecna is uniquely positioned to shape the market with state-of-the-art technology and products that are easy to purchase, deploy, and operate reliably across many different workflows.”