As business blossomed, the California citrus packer began experiencing bottlenecks in its packing operations. A sophisticated automated palletizing system cleared the jam.
David Maloney has been a journalist for more than 35 years and is currently the group editorial director for DC Velocity and Supply Chain Quarterly magazines. In this role, he is responsible for the editorial content of both brands of Agile Business Media. Dave joined DC Velocity in April of 2004. Prior to that, he was a senior editor for Modern Materials Handling magazine. Dave also has extensive experience as a broadcast journalist. Before writing for supply chain publications, he was a journalist, television producer and director in Pittsburgh. Dave combines a background of reporting on logistics with his video production experience to bring new opportunities to DC Velocity readers, including web videos highlighting top distribution and logistics facilities, webcasts and other cross-media projects. He continues to live and work in the Pittsburgh area.
Situated in the heart of Central California's orange- and lemon-growing region, Bee Sweet Citrus specializes in packing and shipping California citrus, supplying customers around the world with oranges, lemons, grapefruit, mandarins, and the like. Since its founding in 1987, the business has blossomed from a startup operation that handled 10,000 cartons a year to one that now handles 10 million.
But the story hasn't been all sweetness and light. In 2016, for example, it became clear that things were starting to sour at the company's 400,000-square-foot facility in Fowler, Calif., which provides cold storage, packing, and distribution services for customers like grocery stores and big-box retailers. To be specific, the company was encountering bottlenecks at the ends of its packing lines—bottlenecks that were putting the squeeze on its operations.
This Alvey 910 series high-speed in-line palletizing system is one of two that Bee Sweet uses to handle its varied product offerings.
At the time, cases of citrus were being palletized by hand after they were packed. That required a lot of heavy lifting on the part of workers—the facility handles some 50,000 cases daily during peak seasons, with each case weighing around 40 pounds. It wasn't unusual for work to fall behind in the manual palletizing area, creating slowdowns further upstream or even bringing activity to a halt.
The pressure to perform under these conditions took a toll on morale. "We had a lot of turnover before as a result of the pace of our stacking, and it was a lot of lifting for our people," says Thomas Marderosian, industrial technology manager at Bee Sweet Citrus.
To solve the problem, Bee Sweet began looking into options for automated palletizing. But it knew from the start that finding the right solution wouldn't be easy. Because of its diverse product offering, the company needed a system that could handle more than just the most common sized cartons and packaging. Instead, it needed a system with the flexibility to handle a wide variety of citrus products, carton sizes, and stacking arrangements—and do it all quickly and efficiently.
Although it required a lengthy search, the company eventually found exactly what it was seeking. After a competitive bid process, it chose a solution from Honeywell Intelligrated that consists of two Alvey 910 series high-speed in-line palletizing systems, an accumulation area, and automated stretch wrappers supplied by Orion.
ORCHARD ORCHESTRATION
Processing at Bee Sweet Citrus starts with local growers delivering fruit to the Fowler facility, which processes about 3,500 bin loads of oranges, lemons, mandarins, grapefruit, and other citrus each day. Each bin measures 48 by 48 by 28 inches and weighs about 900 pounds. Upon arrival, much of the fruit goes directly into temporary storage, where the citrus spends time "de-greening."
When the fruit has ripened, the bins are taken to processing. Here, they are gently emptied onto lines for washing and initial sorting by size and grade—a process carried out using both automated equipment and visual inspection. During peak seasons, the facility is capable of processing 14 different varieties of fruit at the same time. After the initial sorting, the fruit is further sorted according to industry standards pertaining to fruit size, shape, and sweetness. Higher-graded fruits then move on to a packing area, while lower-graded and blemished fruits are sent to other facilities that produce juice. Damaged fruit is sent to companies that make animal feed.
Once they arrive in packing, the higher-grade fruits are placed into cartons, bins, or bags. Some varieties are packed using automated equipment, while others are packed manually, depending on type and customer preference. Once the packing is completed, three conveyor lines move the products to an adjacent building for palletizing.
The palletizing building contains two complete automated palletizing systems that work independently of each other—one equipped with three delivery magazines and the other with two. The palletizers are designed for optimal flexibility and can handle 95 percent of the varieties of citrus processed by Bee Sweet. They can also accommodate six different packaging types, including industry-standard 40-pound cartons, open-top nested trays, telescopic cases, reusable plastic containers, and euro cartons, as well as a variety of pallet sizes. On top of that, the system can handle 29 different stacking patterns to accommodate variations in case size and pallet footprint.
In addition to the two automated palletizers, the building also houses a manual palletizing operation. Currently, about 80 percent of total volume is palletized by the automated equipment, with manual handling reserved for items like odd-shaped boxes or partial pallet loads.
Cases bound for the automated palletizing area pass through scan tunnels before being sorted and sent to one of the palletizers.
Cases bound for the automated palletizing area enter the 31,140-square-foot palletizing building on a mezzanine level. After passing through scan tunnels, the cases move in-line to one of two Honeywell Intelligrated-supplied IntelliSort sliding-shoe sorters, each of which feeds one of the palletizers. Shoes on each sorter automatically slide across the conveying surface to divert products to 28 accumulation lanes used to gather cases. Cases remain in the accumulation lane until the full number required to build a pallet load have been gathered. Once all the cases have been collected, they're conveyed single file from the mezzanine to the floor level of the building, where the palletizers reside.
As cases enter the palletizer system, a series of wheels turn to adjust the cases' orientation as well as position them left or right so that they slide into specific positions to create a single pallet layer. The number of cases in a layer varies according to pallet and case size. For example, it takes nine of the standard 40-pound cartons (the industry standard) to form a layer on a 40- by 48-inch pallet.
This view of one of the palletizers from above shows the layout of the area.
Once a layer is built, the palletizer uses a pusher to gently slide it off onto a pallet. It then begins building the next layer. To assure a stable stack, the cases alternate their orientation from one layer to the next, much the way bricklayers set blocks into a brick wall. When the new layer is complete, the system lowers the pallet to allow space for the new layer to be pushed off onto the previous layer. The process continues until a full pallet is built. While that might sound like a time-consuming operation, it actually takes place in seconds. Each of the Alvey 910 systems is designed to palletize up to 125 cases per minute.
Completed pallets then move via conveyor to workers who manually add corner boards to protect the loads during shipping as well as pallet identification tags for tracking purposes. The pallets are next sent to one of two automated stretch wrappers, with each of the palletizers feeding one stretch wrapper. The loads are wrapped for stability and then discharged onto holding lanes.
Forklifts next gather the pallets and take them to temporary cold storage, where they are staged for a few hours before being loaded onto trucks. Some 125 loaded trucks leave the facility daily.
SWEETER RESULTS
Bee Sweet Citrus has stacked up some solid benefits from moving to the new automated palletizing system. To begin with, work no longer backs up because palletizing is unable to keep pace with production.
"It has made a tremendous change to our operations," says Marderosian. "Before, it was stop and go. Now, we have a consistent flow." He adds that simply eliminating the bottlenecks has allowed the company to move more volume through its packing areas and overall operate more efficiently.
Marderosian also reports that the facility has seen a significant reduction in the labor required for its palletizing operations. And because there's less need for repetitive lifting of heavy cartons, associates experience fewer workplace injuries. On top of that, the constant pressure to keep up with the rest of the operation has eased, creating a more pleasant work environment. Employee turnover has dropped as a result.
The benefits don't end there. The operation has seen advantages with respect to sanitation and accuracy as well. For instance, in an operation where food safety is always a concern, the automated palletizers have cut down on the number of human touches required in processing, while simultaneously ensuring that the right case is placed on the right pallet. This has enhanced the company's tracking and tracing capabilities.
Lastly, customers see more solidly built loads coming from the facility, which helps prevent damage in transit. "The system builds a better, straighter load," says Marderosian. He adds that Bee Sweet Citrus is considering the addition of a third automated palletizer system as future volumes dictate.
RJW Logistics Group, a logistics solutions provider (LSP) for consumer packaged goods (CPG) brands, has received a “strategic investment” from Boston-based private equity firm Berkshire partners, and now plans to drive future innovations and expand its geographic reach, the Woodridge, Illinois-based company said Tuesday.
Terms of the deal were not disclosed, but the company said that CEO Kevin Williamson and other members of RJW management will continue to be “significant investors” in the company, while private equity firm Mason Wells, which invested in RJW in 2019, will maintain a minority investment position.
RJW is an asset-based transportation, logistics, and warehousing provider, operating more than 7.3 million square feet of consolidation warehouse space in the transportation hubs of Chicago and Dallas and employing 1,900 people. RJW says it partners with over 850 CPG brands and delivers to more than 180 retailers nationwide. According to the company, its retail logistics solutions save cost, improve visibility, and achieve industry-leading On-Time, In-Full (OTIF) performance. Those improvements drive increased in-stock rates and sales, benefiting both CPG brands and their retailer partners, the firm says.
"After several years of mitigating inflation, disruption, supply shocks, conflicts, and uncertainty, we are currently in a relative period of calm," John Paitek, vice president, GEP, said in a release. "But it is very much the calm before the coming storm. This report provides procurement and supply chain leaders with a prescriptive guide to weathering the gale force headwinds of protectionism, tariffs, trade wars, regulatory pressures, uncertainty, and the AI revolution that we will face in 2025."
A report from the company released today offers predictions and strategies for the upcoming year, organized into six major predictions in GEP’s “Outlook 2025: Procurement & Supply Chain” report.
Advanced AI agents will play a key role in demand forecasting, risk monitoring, and supply chain optimization, shifting procurement's mandate from tactical to strategic. Companies should invest in the technology now to to streamline processes and enhance decision-making.
Expanded value metrics will drive decisions, as success will be measured by resilience, sustainability, and compliance… not just cost efficiency. Companies should communicate value beyond cost savings to stakeholders, and develop new KPIs.
Increasing regulatory demands will necessitate heightened supply chain transparency and accountability. So companies should strengthen supplier audits, adopt ESG tracking tools, and integrate compliance into strategic procurement decisions.
Widening tariffs and trade restrictions will force companies to reassess total cost of ownership (TCO) metrics to include geopolitical and environmental risks, as nearshoring and friendshoring attempt to balance resilience with cost.
Rising energy costs and regulatory demands will accelerate the shift to sustainable operations, pushing companies to invest in renewable energy and redesign supply chains to align with ESG commitments.
New tariffs could drive prices higher, just as inflation has come under control and interest rates are returning to near-zero levels. That means companies must continue to secure cost savings as their primary responsibility.
Freight transportation sector analysts with US Bank say they expect change on the horizon in that market for 2025, due to possible tariffs imposed by a new White House administration, the return of East and Gulf coast port strikes, and expanding freight fraud.
“All three of these merit scrutiny, and that is our promise as we roll into the new year,” the company said in a statement today.
First, US Bank said a new administration will occupy the White House and will control the House and Senate for the first time since 2016. With an announced mandate on tariffs, taxes and trade from his electoral victory, President-Elect Trump’s anticipated actions are almost certain to impact the supply chain, the bank said.
Second, a strike by longshoreman at East Coast and Gulf ports was suspended in October, but the can was only kicked until mid-January. Shipper alarm bells are already ringing, and with peak season in full swing, the West coast ports are roaring, having absorbed containers bound for the East. However, that status may not be sustainable in the event of a prolonged strike in January, US Bank said.
And third, analyst are tracking the proliferation of freight fraud, and its reverberations across the supply chain. No longer the realm of petty criminals, freight fraudsters have become increasingly sophisticated, and the financial toll of their activities in the loss of goods, and data, is expected to be in the billions, the bank estimates.
Specifically, 48% of respondents identified rising tariffs and trade barriers as their top concern, followed by supply chain disruptions at 45% and geopolitical instability at 41%. Moreover, tariffs and trade barriers ranked as the priority issue regardless of company size, as respondents at companies with less than 250 employees, 251-500, 501-1,000, 1,001-50,000 and 50,000+ employees all cited it as the most significant issue they are currently facing.
“Evolving tariffs and trade policies are one of a number of complex issues requiring organizations to build more resilience into their supply chains through compliance, technology and strategic planning,” Jackson Wood, Director, Industry Strategy at Descartes, said in a release. “With the potential for the incoming U.S. administration to impose new and additional tariffs on a wide variety of goods and countries of origin, U.S. importers may need to significantly re-engineer their sourcing strategies to mitigate potentially higher costs.”
A measure of business conditions for shippers improved in September due to lower fuel costs, looser trucking capacity, and lower freight rates, but the freight transportation forecasting firm FTR still expects readings to be weaker and closer to neutral through its two-year forecast period.
Bloomington, Indiana-based FTR is maintaining its stance that trucking conditions will improve, even though its Shippers Conditions Index (SCI) improved in September to 4.6 from a 2.9 reading in August, reaching its strongest level of the year.
“The fact that September’s index is the strongest since last December is not a sign that shippers’ market conditions are steadily improving,” Avery Vise, FTR’s vice president of trucking, said in a release.
“September and May were modest outliers this year in a market that is at least becoming more balanced. We expect that trend to continue and for SCI readings to be mostly negative to neutral in 2025 and 2026. However, markets in transition tend to be volatile, so further outliers are likely and possibly in both directions. The supply chain implications of tariffs are a wild card for 2025 especially,” he said.
The SCI tracks the changes representing four major conditions in the U.S. full-load freight market: freight demand, freight rates, fleet capacity, and fuel price. Combined into a single index, a positive score represents good, optimistic conditions, while a negative score represents bad, pessimistic conditions.