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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
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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
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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
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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
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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
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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
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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
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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
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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
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Customer Service Requirements
Quality
Availability
• Cycle Reduction
• Visibility
• Traceability
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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.
© Alexander Proudfoot Company All rights reserved
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
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Refrigerated Exports
‘Old’ Model
‘New’ Model
Farm Slaughter Inland Freezer Port
Farm Slaughter Freezer/Port
•Reduced Costs
•Reduced Lead-time
•Postponement
•Improved Equipment
Utilization
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PORT OF TAMPA/Green Express
ARTIST RENDERING TRANSLOAD FACILITY
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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
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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
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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
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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
© Alexander Proudfoot Company All rights reserved
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.
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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
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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"
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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