Food Safety and Quality : The Challenging Jigsaw Puzzle of Logistics
i th A i F d S l Ch i
Logistics and Transport Challenges in Asian Agri-Food Supply Chains
in the Agri-Food Supply Chain
ByBy
Dr. Rodney Wee PhD.
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Cold Chain Management
Sourcing (incl. Food Security)
Contract Farming
Risk Management
R & DR & D
On-Site Trials
Training
Project Management
Seed Sourcing
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Residue Management
Challenges in the Logistics of Agri-Food Supply Chains
SCM, Transport & Logistics in Distribution
ReceivingStaging
Warehouse Management SystemsInventory Control
Route PlanningSKU Planning
Quality & Food Safety
gHACCP, ISO 20000
Shelf LifeUse By Dates
Risk Management
Accreditation GAP, GHP, GDP
gConsolidation / Deconsolidation
Traceability2 Dimensional (Barcoding)
3 Dimensional (RFID)Systems
Challenges in Agri Business in the Next Decade
Accreditation GAP, GHP, GDP
B i D l t
Export MarketingImport Compliance (e.g. Halals)
C t ti
Challenges in Agri Business in the Next Decade
Pre & Post Harvest OperationsPrecooling practicesPost harvest technologiesCollection centres / Pack house Operations
Business DevelopmentContractingDemand ForecastingProduction Planning
PackagingNano Pack
Active PackRetail Pack
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Linking Cold Chain Practices and Fresh Food QualityQ y
• Quality food that is fresh looking, fresh smelling, fresh tasting.
• Managing the Cold Chain keeps food fresh g g pand in premium condition.
• Keeping food safe to eat.• Extending shelf life.• The Cold Chain is in place to meet the
demands of our customers
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Getting everyone involved !
Everyone from grower to retailer...and Consumer !
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Partners in the Quality Supply Chain…..• Growers, Fishers, Aquaculturalists• Packing, Processing• Cold Storage• Transport Businesses• Freight ForwardersFreight Forwarders• Customs Agents• Freight Loaders• Airlines
Shi i Li• Shipping Lines• Customs Clearance• Transport Businesses• Cold StorageCo d Sto age• Food Distributors• Customers
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The Asia – Pacific Environment
A iAsia• 17,212 000 Sq Miles• 47 Countries….. • > 4 Billion people
Including China – 1.3 Billion …with India set to overtake China by mid 21st Century
• Australia – 22 Million• New Zealand – 4 Million• Pacific Islands – 6 Million
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From…..
Asia’s Extreme Infrastructure
ContrastsTo….
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Fresh Producein Asiain Asia
From old Agricultural & Logistics Practices ……
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To…. technology oriented farming..and distribution…
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Challenges of handling Logistics & transport in Asia
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World Issues…….today…
Impact of banking and financial crisis Weakening world currencies…. Sovereign debts and government action Impacts of consumerism…. Crises in oil producing countries - “volatile” prices Impacts of Climate change Costs of natural disasters eg. Storms, Earthquakes,
Volcanoes, Tsunamis.. Consequential crisis…..Japan’s nuclear meltdown Outsourcing – Impacts of shifts in production areas Dynamism of developing economies…China, India, … Demographic shifts & Urban congestion Woes of Political Impasse …
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What others……….??? “Re-regulation” of banking systems ?....cost of borrowing ? Contamination and Fraud New “Export sources” Contracted farms Political agendas Political agendas Impacts of declining global food supply Poor resource management eg. Water, land Chemical residue managementg
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What “plagues” the Agri- Food Industry ?• Reliable Sources of Fresh Produce or raw materials for
food products• Consistency of Supply• Raw Material “Postharvest” Practices• Cold Chain “Breaks”• Long Distances• Frequent transshipment “hubs”• Unnecessary handling and staging operations• Unnecessary handling and staging operations• “Breaks” in your “Value chain” • Contamination & Cross-contamination (accidental or introduced)
• Quality maintenance in Transit• Cost Issues• How “safe”...are the Supply Chains ?
Ri k M t• Risk Management• Alternative Supply Chains & Emergency Procedures• Chemical Residue management
IIssues•Respiration•Temperature•Ethylene Productiony e e oduc o•Water Loss•Growth and Development•Mechanical DamagePhysiological Disorders
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•Physiological Disorders•Pathological Breakdown•Stress
Understanding Your Markets
Quantity of Products in each Lot Size
Response Time “tolerance” of each customer
Variety of Products Needed
Service Levels Needed
Price
Desired Rate of Innovation
2 Purposes of Information forAgri Food LogisticsAgri-Food Logistics
16Co-ordinating Activities Forecasting and Planning
Addressing Logistics & Transport Issues
•Ice Calculator
•On-tarmac time
•Transit time•Transit-time
•Transshipment Frequency
•Produce Stress
•Airport Facilities
•Aircraft storage
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Aircraft storage
Consequences of Climate change……..Irregular seasons, floods, droughts, hail, earthquakes, volcanic
ti iti id d l ti f f h t tactivities, rapid depletion of fresh water sources, etc
Resulting in Food shortages, rapidly rising prices, hunger, anger and desperation…….
Solutions for these take time and for governments have to agree to engage…….
18What the Cold Chain, Logistics and Transport has to consider……
Tracking & Tracing in Supply ChainsFl h ti i di id l d t’ S l Ch i ti• Flowcharting individual product’s Supply Chain operations
• Real-time Inventory Tracking• “Worse case” scenario modeling• “Checks” at all possible “chokepoints”p p• Map sequenced actions in implementation• Have real-time “Track & Trace” monitoring with reporting• Institute corrective action instructions
Emergency action procedures• Emergency action procedures
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Process Track and Trace (Apples)
In the case of fruits ………(Also used for vegetables)1. Each row is tagged, colour
coded, with crop / fruit detailscoded, with crop / fruit details
2. Post harvest operationsi l d f til t dinclude use of ventilatedcrates, hydrocool wash…
3. Sorting, Grading by lots4. Export Packing with barcodes
containing “lot details”containing lot details
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Monitoring Temperature & Humidity
Button Data Loggers
WHO approved reusable Data Loggers (-40 to +85 deg C) g )
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“Stages” in the Supply “pipeline”
Moving from processing and Storage facility to a Throughput facility.
P idi V l ddi i M i t i i h lf lif t Providing Value-adding services eg. Maintaining shelf life, etc Managing throughput for continuity Managing information flow (more important than inventory
flow ie doing things once)flow ie. doing things once). Reduce lead times and avoid “bottleneck” congestions Providing smooth “inter-change” in agribusiness Uses a distribution centre approach to the markets Uses a distribution centre approach to the markets Managing information for forward planning
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Adding Value Services to Agri-Food Supply Chains• Providing Post Harvest cooling facilities• Packaging types• Packaging and repackaging services• Avoiding contamination (and mutation) in storage• Avoiding contamination (and mutation) in storage• Speedy and accurate deliveries• e - marketing / on-line order support• Provide Distribution Requirements planningProvide Distribution Requirements planning
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Additional Supply Chain Partner Requirements• Use proven existing Networks in Distribution Transport & Logistics• Use proven existing Networks in Distribution Transport & Logistics• Flexibility to accommodate dynamically changing conditions• Innovative and creative thinking• Not overly dependent on technology “solutions”Not overly dependent on technology solutions• Continuous sensitive cargo (product) training• Accountability and responsibility even at onsite (ground) level• Constant communication of shipment conditions • Have built-in “fail-safe” alternative actions…a “Plan B or C”• “Disaster” planning – Making use of partners’ contingency plans• Adapting tested and validated complex supply chains & distribution networks.
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Main Areas of Concern1. SKU Storage / Retrieval
2. JOB Lot Storage / Deliveryg y
3. Cross Docking Operations
4. Cargo Condition eg. Contamination, Damages / Shortages, Shelf life
5 Accuracy - Deliveries Inventory5. Accuracy - Deliveries, Inventory
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Risk ManagementRisk Management Contamination ?
Mutation ?
Export
ComplianceSupply Chain OverviewCold Chain Management
Business issues in the Export EnvironmentInternational Transport (Land, Sea & Air)
Chain of ResponsibilityTransport Security (Post 9/11)
Counterfeit / Fraud ?
EnvironmentSecuring Supply EnvironmentClimatic ConditionsEnvironmental Management Systems (EMS)
Risk Management “Fresh Produce”
Skills & TrainingBusiness PlanningIntellectual Property (IP)
Product SafetyTraceability Systems
Temperature & Humidity MaintenancePackaging Selection
Business SkillsIntellectual Property (IP)HR Management (Labour Risks)Trading Partner RelationshipsContractingMarketing & Competition
AccreditationGCP, GHP, GDP
2010 Copyrights Reserved, Asia Cold Chain Centre 2010 Copyrights Reserved, Asia Cold Chain Centre
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Train and Educate your teams
Fruit and Vegetables
Seafood
Meat and Dairy
Flowers
Best long-term storage temperatures may be slightly different
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Summary
• Review Entire Supply Chain Operational Practices• Environmental Control in Supply Chain operations• Packaging & Packing (Selection & Practice)Packaging & Packing (Selection & Practice)• Staging and Storage (Locations and Accessibility)• Transportation (Route Planning)
St ff T i i (S l Ch i t )• Staff Training (Supply Chain partners)• Tracking, Monitoring & Reporting• Damage Control & Correction• Managing Risks ?
END
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