Supporting A Safe and Secure Global Food Chain Jaymie C. … · 2014-03-03 · Temperature...

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Disciplined Execution

Speed & Certainty Increased

Shareholder Value Working Together

Lasting Positive Change

Supporting A Safe and Secure Global Food Chain

Jaymie C. Forrest

March 3,2014


Your Partner for Operational and Financial Results

Drive top line growth and market share

Reduce costs and improve cash flow and

working capital ratios

Improve productivity and create operational

efficiencies

Identify and remove the waste in core processes

that frustrates employees and compromises

customer service

Accelerate the pace of change

Implement corporate strategies by means of an

improved focus on disciplined execution

Complement and magnify existing initiatives


Supporting A Safe and Secure Food Chain

• Drivers of Safe and Secure Supply Chain

• Answer: An Integrated Food Chain

• Value from Integrating the Supply Chain

• Food Trade Trends

• Future of Cold Chain Management

• Questions


Safe and Secure Supply Chain Drivers

• Consumers want safe and high quality food that has a reasonable time to consume

• Retailers want continuous availability, high quality and minimum losses

• Regulators want to know who is responsible if safety issues arise

• Retailers and regulators want more assurance that safety will not be compromised

• Everyone wants more “value” from information

Producers Processors Retailers Distributors Packers

Consumers Critical

Stakeholders

Government Regulation


A Safe and Secure Chain is an Integrated Chain

• Build brand equity and customer loyalty through improved product quality and availability

• Increase logistics performance by reducing costs and minimize time in the supply chain

• Increase profits through supply chain visibility and better replenishment planning

• Increase value to retailers and consumers by improving shelf life while reducing waste


Quality Assurance and Control Time of paraffine application process

Time of drying process

Sunshine

Shocks during transportation

Logistics performance (times and costs)

90% of all containers are sent to exportation

90% business perfect order performance

(4,5,6 hours. Triang. Distrib.) from pack. facility to export port

Identify Gaps in Traceability No code bar technology used at all

Lot number is date and grower identification basically

Paper and isolate records about: Qty. driver, Plate number, date and weight

Value from Integrating the Supply Chain


Food Trade Trends

• Emphasis on food safety

• Attention to costs, waste reduction/spoilage

• Driven by customer service requirements

• Innovation in cold chain technologies

• New infrastructure models

• Network redesign and collaborative strategies

• Cold chain management education and training

• Best practice discovery and proliferation


FMSA: Effects on Transport

•Transportation now included in the regulation for traceability

•FDA can stop transport of product entering a market

•New data requirements and records

•Time limit on providing trace back

•Exposure for out of spec product


Contributing to Waste Farm and post-harvest

• Pre-harvest losses due to severe weather, disease, and predation.

• Harvest losses attributed to mechnisation , production practices, and decisions

• Storage losses due to insects, mold

• Deterioration, shrinkage, and spoilage

Processing , wholesaling and retailing

• Removal of inedible portions—bones, blood, peels, pits, etc.

• Discard of substandard products (bruised fruit, etc.)

• Shrinkage in storage

• Poor handling or package failure

• Transportation losses


Customer Service Requirements

Quality

Availability

• Cycle Reduction

• Visibility

• Traceability


11

Innovation in New Technologies

CSX Reefer Cars All cars are equipped with satellite -

based, 2-way GPS communication capabilities

Temperatures can be maintained without refrigeration for an extended number of days due to insulation and seals

Construction

Facilities

Track and Trace

Temperature Control

Packaging

Merchandising

Etc.


Food Trade Trends










Refrigerated Exports

‘Old’ Model

‘New’ Model

Farm Slaughter Inland Freezer Port

Farm Slaughter Freezer/Port

•Reduced Costs

•Reduced Lead-time

•Postponement

•Improved Equipment

Utilization


PORT OF TAMPA/Green Express

ARTIST RENDERING TRANSLOAD FACILITY


Rotterdam Cool Port - Central hub for perishables

Artist impression

Connected to

Rail Service Center

Cold and frozen storage facilities

Storage / inspection / labelling / repacking

Connected to

Rotterdam Shortsea Terminal

Cross-docking

40ft- / 40-45-ft

Transshipment

Inland shipping shuttle / short sea / specialized reefer / all reefer container ships

Full container stack

Storage / reefer plugs

Empty depot

Inspection / pti


Food Trade Trends










95 % exports enter through these 6 ports:

Philadelphia,

PA 36%

Miami, FL

28%

New York,

NY 10%

San

Juan, PR

9%

Los Angeles,

CA

8%

Houston/Galveston,

TX 4%

The remaining 5%

came from these

other ports

(descending order):

San Francisco, CA

San Diego, CA

Savannah, GA

Seattle, WA

Norfolk, VA

Baltimore, MD

Honolulu, HI

Nogales, AZ

Ogdensburg, NY

Tampa, FL

U.S. Virgin Islands

Distribution Network Flows


Food Trade Trends










Temperature as a quality

control point is being

adopted by many

suppliers, retailers and

distributors as cold chain

performance is now

becoming an industry

standard

Best Practice: Cold Chain Integrity

Stage Description

Initial Typical cold chain management processes are undocumented and driven by ad hoc and

reactive management mostly driven by events. This is usually an unstable environment.

Repeatable

Temperature monitoring using GPS is characteristic that some processes are repeatable,

possibly with consistent results. Process discipline is unlikely to be rigorous, but where it

exists it may help to ensure that existing processes are maintained.

Defined

Monitoring temperatures using prescribed limits and thresholds is characteristic of

processes that are defined and documented with standardized processes established

with some degree of improvement over time. These standard processes are in place and

used to establish consistency of process performance across the cold chain

Managed

A temperature performance index provides proactive controls where dispatchers and

supervisors can effectively control the delivery process. Of note, management can adjust

and adapt the process to better manage driver behavior and delivery methods without

deviations from set specifications. This can allow a summer and winter approach to

operations.

Optimized

A temperature performance and service index is a characteristic of processes that focus

on continual process improvement through both incremental and innovative technological

changes/improvements.


Best Practice in Logistics Performance

• Costa Rica National Export Strategy

• Panama – National consolidation centers

• Peru – Transportation consolidation strategies and Cost Performance Initiatives

• Mexico – Infrastructure planning, SCT-US DOT, and SAGARPA value chain/total cost models

• USA - Regulatory collaboration (USDA, CBP, FDA)

• Port of Rotterdam – Cool Port project

• Port of Miami – Cold treatment pilot

• Chile – Port community portal


Best Practice Standards are Key

Temperatures of product adjacent to wall in a centerline loaded trailer. Loading Patterns

40" 40" 40" 48" 48" 48"

Loading Patterns

40" 40" 40" 48"


Future of Cold Chain Management

•Scheduled temperature control intermodal models

•New food safety models – facilities, treatments, automation,

and integrated services designed for cold chain management

•Integrated border management policies and practices

•Use of process and technology management for better for

better visibility and control

•Collaborative commerce for

synchronized supply chains

• Investments in Brazil, Russia, India and China

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Supporting A Safe and Secure Global Food Chain Jaymie C. … · 2014-03-03 · Temperature...

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