Keefer Gibson is a dynamic logistics industry leader known for his dedication to fostering diversity and prioritizing safety. Currently serving as the Sourcing Manager,North America Supply Chain at Grupo Bimbo, his areas of specialization include logistics management, transportation network optimization, and distribution and warehousing. As a change agent with a disruptive mindset, he challenges the status quo and implements innovative strategies to drive results.
He holds internationally recognized certifications as a Six Sigma Lean Black Belt professional and a certified Scrum Master, demonstrating his commitment to continuous improvement and effective project management.
In an interview with Logistics and Transportation Review, Keefer Gibson sheds light on the evolving cold storage and distribution landscape, highlighting key challenges, trends and innovative strategies to navigate disruptions and drive sustainable growth.
Please share insights into your professional journey and experience that led to your current role as a Sourcing Manager in Supply Chain at Bimbo Canada. What are your current roles and responsibilities?
After completing my Bachelor’s degree in business management from Dalhousie University, I began my career at TransX Group of Companies. My initial responsibilities included managing fresh, frozen and dry goods in the less-than-truckload (LTL) division. Over time, my role expanded to include full truckload, intermodal, and warehouse management.
Following a brief stint exploring sales, I returned to supply chain, joining Bimbo Canada. Over eight years, I progressed through diverse roles, starting as a transportation supervisor for Western Canada and advancing to manager, overseeing transportation for the region.
We must explore creative avenues to lower the total cost of product ownership, ensuring prices remain stable and not burden consumers.
Subsequently, I transitioned to distribution, managing sites in Calgary and Edmonton, where I gained experience in people management and broader team oversight where I had the privilege to lead the teams to become the top ranked sites in Canada for KPI’s and safety records two years in a row. Approximately a year ago, I seized an opportunity to join the procurement team as a Sourcing Manager for North America, specializing in Logistics.
In my current role, I focus on sourcing transportation vendors, distribution and storage solutions for long-term needs across Bimbo’s business units, including Bimbo Canada, Bimbo Bakehouse and BBU in the U.S., as well as managing inbound logistics from Mexico. My deep logistics background complements my procurement responsibilities, enabling me to optimize supply chain operations.
What are some significant challenges currently facing the cold storage and distribution industry?
A primary challenge is Canada's lack of notable cold storage market players, with only one or two major suppliers operating nationwide. While some regional players exist, larger businesses like ours require partnerships that offer scalability across different regions. This scarcity of options impacts pricing, as fewer providers can lead to potential monopolistic situations, making it challenging for smaller businesses to secure space or negotiate favorable rates, especially with third-party logistics providers (3PL).
Another challenge stems from a shift in the industry’s booking practices. Traditionally, companies book storage space based on specific needs for a set timeframe. However, there is a trend toward year-round commitments, where companies must pay for space regardless of utilization. This model poses challenges for businesses that require only cold storage during specific times of the year or for certain projects.
Due to the high upfront costs of building new facilities and the limited availability of space at competitive prices, the cold storage industry remains challenging for existing and new competitors.
What are some key trends anticipated in the cold storage and distribution space?
Effective integration with warehouse management systems is becoming crucial from a technological perspective. This enables efficient load booking, real-time inventory tracking and collaborative business management. Many larger players in the industry are already adopting these systems.
There is a growing trend among cold storage facilities to expand their services to include transportation support, such as offering pickup and drop-off within their networks. This flexibility helps address appointment scheduling and load times issues, enhancing overall efficiency.
Advancements in booking capacity practices are driving a paradigm shift toward more flexible, year-round commitments, which aim to meet varying business needs and improve operational agility.
Please elaborate on the specific technology implementation or project initiative at your organization.
We recently leveraged internal transportation services provided by our 3PL partners to alleviate pressure on our transportation providers. Many of these trips are booked as one-way appointments in and out. Conventional booking freight with carriers for one-way trips tends to be more expensive.
However, by utilizing the transportation networks of 3PLs, we have found cost advantages, particularly for inbound trips. These logistic partners can coordinate outbound trips with different customers, leading to better pricing for us. This approach saves transportation costs and avoids tying up our local drivers and assets during potentially lengthy loading or unloading processes at facilities.
Given the potential disruptions and transformations, how do you foresee the future of the industry in the coming years?
We are reaching a point where the main suppliers of frozen 3PL are nearing capacity limits. This impact would resonate throughout the entire value chain for products requiring storage in these facilities. Without new vendors, the industry will need to explore creative strategies to mitigate cost pressures and ensure the sustainability of operations without passing on increased costs to consumers.
Another emerging trend is manufacturers are exploring the option of building their own freezer storage facilities. However, this presents challenges due to the significant upfront investment and the need for specialized warehouse management. Many manufacturers may find this approach daunting, especially those dealing with fresh or dry products that only require temporary freezer storage.
Partnerships between suppliers, manufacturers or distribution centers are also becoming prevalent. Companies can achieve economies of scale and negotiate better pricing by combining their similar storage and transportation requirements. This collaborative approach allows for more efficient storage capacity utilization, where companies with varying storage needs can pool their resources under one partnership.
What advice would you offer to your peers and emerging professionals in cold storage and distribution?
It is crucial to continuously explore market trends and innovations and to think outside the box. Traditional strategies for handling frozen products and storage may no longer suffice, so we must be open to change and creativity. Given that freezer requirements and energy costs are unlikely to decrease, we should focus on reducing our total cost of ownership.
Do not hesitate to form new partnerships and experiment with different approaches. Even if some initiatives fail, they provide valuable learning experiences. Reach out to industry peers for insights and collaboration opportunities. We can collectively improve industry practices and outcomes by sharing ideas and experiences regardless of their size. Fostering open communication and collaboration will benefit everyone in the long run.
