This article was published in the March/April 2025 issue of Pet Food Processing. Read it and other articles from this issue in our March/April digital edition.
The distribution of pet food and treats is increasingly complex. Key logistics require careful planning and execution to ensure efficiency, product quality, timely delivery, and alignment with regulatory requirements and evolving consumer expectations. Quality control measures are also paramount throughout the process with ever-present safety concerns creating a constant source of concern for manufacturers, distributors and retailers.
Break down the steps
To navigate the growing complexity of the supply chain, Jim Ritchie, president and chief executive officer of RedStone Logistics LLC, Olathe, Kan., recommends using a performance-based framework, like a Supply Chain Operations Reference (SCOR) model, to manage activities and examine the supply chain in critical areas.
Sustainability initiatives prioritize facilities that protect the environment through responsible waste management, clean water conservation and energy-efficient technologies.
|Step one: sourcing. Take a close look at suppliers and the location of these suppliers within the supply chain to determine if their location is in the right geographies to meet the needs of the manufacturing operation and its customers. If not, it might be time to look for alternative suppliers who better fit within the supply chain network.
Next, the SCOR model looks at where the product is made, evaluating all the manufacturing processes, including facilities, packaging and other considerations of the “make” process. Then it’s time to evaluate delivery, looking at the high-level distribution network to find answers to the following questions:
- Do I need wholesale distribution centers?
- Is there an e-commerce component?
- If yes, should the e-fulfillment activities happen in-house?
- Are there efficiencies in outsourcing them to an e-fulfillment specialist?
- Additionally, is there a cold-chain component that necessitates temperature control?
Investment in temperature-controlled solutions paired with rigorous inspection protocols and adherence to strict food safety regulations can ensure proper handling procedures to prevent cross-contamination while final inspections can help ensure compliance with regulatory guidelines, according to Dave Campbell, automation consultant, Burns & McDonnell, Kansas City, Mo.
Coordination, collaboration and integration
But even with precise planning, disruptions can occur anywhere in the supply chain in the form of ingredient shortages or production issues. Effective inventory management is critical to avoid stockouts, overstocking or product expiration.
This makes coordination among suppliers, manufacturers and retailers essential and requires real-time communication, inventory synchronizations, quality control and efficient logistics management. Nevertheless, there remains a challenge of visibility among these entities that can be difficult to overcome, in part because most supply chains are not vertically integrated, Ritchie said. Each contains a combination of contract manufacturers, different distribution organizations and retailers — all with their own systems, processes, policies and methods.
“When you are unable to provide real-time visibility from source to consumption, you run the risk of supply chain disruption,” said Jim Ritchie, RedStone Logistics.
“News reports of a retailer experiencing stockouts can often be traced back to a lack of communication, data and collaboration across all the elemental nodes contained within the supply chain,” he continued. “When you are unable to provide real-time visibility from source to consumption, you run the risk of supply chain disruption.”
Integration with tech advances
The use of digital and tech solutions can increase integration, boost visibility and align processes to transform distribution. Operations powered by an agile, data-driven ecosystem provide efficiencies and empower processors to make informed decisions. Yet, there is never a one-size-fits-all approach. Determining the right technology necessitates an investment of time and resources to understand the options available.
Examples to consider include integrated technology platforms such as Enterprise Resource Planning (ERP) that allows rapid adjustments to production schedules and distribution plans; Transportation Management Systems (TMS) that optimize load planning and carrier selection; and Warehouse Management Systems (WMS) that facilitate real-time data exchange on inventory levels, demand forecasts and shipment status. Modern WMS further enhance accuracy by automating workflows, optimizing space utilization, and enabling seamless coordination between storage and transportation.
When powered by a network of IoT (Internet of Things) sensors and combined with artificial intelligence (AI), real-time tracking systems can provide processors with precise visibility into stock levels. In WMS, AI enhances sophisticated algorithms to improve demand forecasting, inventory management, route optimization, predictive maintenance, labor management and quality control. The algorithms consider factors such as item characteristics, destination and urgency to determine the most efficient picking and placing sequences, resulting in reduced cycle times and increased throughput.
“By deploying machine learning and computer vision technologies, integrators can enhance quality control, detection and process optimization,” Campbell said. “These AI-driven systems analyze vast amounts of visual data in real-time, identifying patterns and anomalies that human operators might miss, thereby improving overall production efficiency and product quality.”
Robotic automation solutions can offset labor shortages while increasing production output.
| Source: Gray AESRobotics is also revolutionizing warehouse efficiency, particularly in palletizing and loading. Automated guided vehicles (AGV) and robotic arms handle heavy loads with precision, reducing labor costs and workplace injuries while increasing throughput by up to 30%.
Grey AES, Lexington, Ky., is seeing AI leveraged through demand forecasting, route optimization and customer engagement through chatbots. Automation solutions are a smart way to offset higher labor costs, labor shortages and to increase production output, said Greg Powers, vice president, automation, Gray AES.
Operational efficiency strategies also emphasize the principles of a circular economy by adopting lean inventory practices to increase production efficiency, reduce waste and minimize emissions. Other methods to enhance energy efficiency in operations include the use of renewable energy sources and the implementation of IoT sensors.
“These efforts collectively contribute to a more sustainable supply chain and a reduced carbon footprint,” Powers said. “Additionally, pet food processors are reducing supply chain emissions by sourcing regional pet food ingredients and partnering up with local farms for fresh meat, grain and vegetables.”
Right facilities, right processes
While the challenges of labor shortages, limited trucking capacity and unpredictable weather-related disruptions remain, an effective network of warehouse operations can help curb costs, reduce inefficiencies and meet customer demand. AI Integration with AGVs and automated storage and retrieval systems (ASRS) help navigate complex environments to revolutionize warehouse operations through seamless collaboration with human operators, enhancing the efficiency of material handling and storage processes.
Robots equipped with sophisticated vision systems and AI algorithms manage a wide variety of product sizes and shapes to assemble stable and efficient pallet loads with precision. Vision systems and AI also analyze pallet loads to identify optimal depalletizing strategies and guide robots to handle mixed pallets safely and efficiently.
The application of AI further accelerates the programming process and makes it more accessible to non-technical staff, enabling faster deployment and customization of automated systems. Efficiencies include AI-enabled sensors and cameras to enhance safety through advanced collision avoidance systems while data analysis of warehouse layouts and traffic patterns improve route optimization. Load-monitoring systems provide real-time feedback to drivers, ensuring load stability and accident prevention. Additionally, the use of predictive maintenance powered by AI can analyze forklift performance data to forecast potential breakdowns, ensuring equipment remains in peak condition for uninterrupted operations.
“AI is making substantial contributions to programming and code development applications,” Campbell said. “Large language models and chatbots streamline code development to create more intuitive human-machine interfaces.”
But the use of such tools comes with its own set of challenges in the form of high upfront capital investments that will necessitate specialized infrastructure and training. It’s also important to note AI tools depend on the accuracy of the “machine learning,” so information generated by AI should be verified before application.
Regulatory and compliance risks
Regulatory compliance poses another challenge due to stringent food safety regulations that can vary by region. Monitoring ever-changing FDA, USDA and AAFCO regulations for pet food safety along with robust tracking and traceability systems and processes can help ensure compliance and regulatory standards. Ongoing vigilance further increases the ability to quickly remove contaminated products from the market, alleviating costly recalls and other disruptions that could damage a brand and its bottom line.
Regular engagement with compliance consultants and/or a legal team can help pet food and treat manufacturers stay on top of changing regulations and be mindful of the threat of tariffs on international shipments that will make ingredients, sourcing and manufacturing more expensive.
Priority placement
The implementation of forecasting for managing demand fluctuations can also enable more accurate inventory planning based on historical data and market trends. Accurate predictions help optimize inventory, reduce waste and enhance supply chain efficiency. Additionally, the right distribution partners ensure timely deliveries and product quality throughout the supply chain, a critical element for long-term success. Joint forecasting efforts are also crucial as they align production schedules with retailers’ point-of-sale data, helping to prevent stockouts and overstocking.
The desire to futureproof logistics necessitates the integration of partnership, vigilance, agility, and AI and machine learning tools to build a resilient distribution strategy — one that’s well-equipped to handle ever-evolving challenges and demands. This includes a focus on regulatory and compliance readiness, storage and handling capabilities, inventory management, technology integration, and insight into reverse logistics and handling recalls.
“Ensuring that suppliers adhere to quality and safety standards through regular audits and collaborative corrective actions is vital for maintaining product integrity throughout the distribution process,” Campbell concluded. “This comprehensive approach ensures that all parties are synchronized, leading to a more efficient and reliable distribution network.”
Read more about pet food and treat processing on our Operations page.
