SPL CHAPTER 7: INTRODUCTION TO COLD CHAIN

Describe the "Exotic Chill" temperature range

+10degrees to +15degrees, for potatoes, eggs, exotic fruit and bananas

Describe the "Controlled room temperature" temperature range

+15degrees to +25degrees, for pharmaceutical products like cough syrup and creams

Describe the "Cool" temperature range

+2degrees to +8degrees, for vaccines and insulin

Describe the "Medium Chill" temperature range

+5degrees, for some pastry-based products, butters, fats and cheeses.

Describe the Cold Chain logistics of Tesco in the mid-1980s.

- Large number of single-temperature warehouses, each specialising in the handling, storage and delivery of a narrow product range - Each set was manage by a different specialist logistics service provider organised on behalf of the manufacturer and supplier - The deliveries to the retail stores took place 2-3 a week - with the temperature-controlled vehicle going from one store to another delivering the appropriate number of pallets of products.

Describe the "Frozen" temperature range

-25degrees for ice cream and -18 degrees for other foods. Freezing allows for the: 1. Extend shelf life 2. Retards the growth of microorganisms 3. Slows down the chemical changes 4. Slow the movement of molecules, causing microbes to enter a dormant stage Thereby preventing food spoilage and long-term food preservation

Describe the "Cold Chill" temperature range..

0degrees to +1degrees, usually for fresh meat and poultry, most dairy and meat-based provisions, most vegetables and some fruits.

What are the factors influencing the growth of cold chains?

1. Frozen food - Readily available - Convenient 2. Consumer behaviour - Lifestyle and shopping patterns - "Healthy living" 3. Locations of shops - More supermarkets and convenience stores - Move of shops from central locations to neighbourhoods -- Drivers are: 1. Growth of suburban affluent population, 2. Demand and opportunity, 3. Change in methods of selling, 4. Hypermarkets 4. Technological development - Out of season products - Lower purchase prices 5. International Trade - Expanding world economy - Liberalisation of food trade - Growing consumer demand - Development of food & science technology - Improvement in transport & communication 6. Retailers Capabilities - Retailers are becoming larger and abilities increased - International product sourcing and buying opportunities - Working directly with producers of fresh foods 7. Security - Due to terrorist acts such as 9/11, there are improved security measures to counter terrorism. - e.g. US's 24 Hour Manifest Rule 8. New drugs - 2009: 5 out of 10 best-selling pharmaceutical products require temperature-control (cold chain) - By 2016: estimate 8 out of 10 would require temperature-control - Population growth - Growth in cold chain pharmaceuticals expected to outpace industry growth due to the lack of competitors

What were the limitations faced by Tesco in the past?

1. It was expensive for them to meet the larges increases in overall growth of volume as it required the building of more single-temperature warehouses. 2. Retail delivery frequency is limited

What are the Problems in Cold Chain Logistics?

1. Quality of products change rapidly - Temperature variation can occur whilst in warehousing, handling and transportation 2. Temperature sensitive goods - Fast decision for goods to be forwarded within hours - Appropriate planning - Track and trace 3. Lack of infrastructure - e.g. warehouse, temperature-controlled trucks - e.g. road & rails, especially in developing countries -> leads to extended delivery times 4. Multiple parties are involved - Lack of understanding - Lower education - Varieties of products

What are the Components of the Logistics Mix in Cold Chains?

1. Storage Facilities - e.g. warehouses, stock rooms - used for the keeping of stock in anticipation of, or react to demand for products 2. Inventory - To meet changes in demand 3. Transportation - Different forms of vehicles - Different forms of transport - Different scheduling availability of drivers, vehicles, store access 4. Utilisation and packaging - Purchase products in small quantities - Purchase decision based on looks and packaging - Utilisation is combined with standardisation to provide order to the handling of products 5. Communication - Information about both demand and supply, and also volumes, stocks, prices and movements - Capture data at appropriate points in the supply and demand system for efficient and effective logistics operation

What is a Cold Chain?

A cold chain is a temperature-controlled supply chain. It refers to the process used to maintain optimal conditions during the transport, storage and handling of cargoes starting at the the consumer and ending with the administration to the consumer.

How does one select a temperature range?

For a narrow range of products: - Temperature will be set at the level for that product set For a broad range of products - Optimum temperature or a limited number of different temperature settings is used

Why is an unbroken cold chain important?

It is crucial to maintaining the (a) functional purpose and the (b) commercial value of the goods cargoes carried. A broken cold chain would also bring rise to the hazards associated with the spoilage of the goods carried.

What were past cold chain logistics like?

Past: single temperature warehouses dedicated to narrow product ranges of food. - The design, equipment and disciplines were only partially implemented so that there was incomplete integrity of temperature control - Products were exposed to periods of high-ambient temperature, which affected the shelf-life and quality of the product

What is the strategy adopted by Tesco to overcome their limitations in the past?

They built a small number of new large multi-temperature composite warehouses that would store, handle and deliver the full range of products, all from the same location. Manufacturers and suppliers of all the product sets make daily deliveries into the composite distribution centre - The composite delivery frequency to the retail stores increased to daily - The delivery vehicle had movable bulk heads and 3 temperature controlled evaporators so that 3 different temperature regimes could be set on a single vehicle

Describe the usage of cold chains in the pharmaceutical industry

Use to maintain optimal temperatures for vaccines (pharmaceuticals). Vaccines are sensitive to heat and freezing. Temperature sensitive pharmaceuticals must be kept at the correct temperature from the time they are manufactured until they are used.

Describe the usage of cold chains in the food industry.

Used to extend the shelf life of fresh products. As fresh products are sold in a managed selling environment, it is important for the products to look right, taste right. Optimal usage of cold chain for chilled (0-1degrees) meat products require constant monitoring and control of storage conditions from production to consumption. This is due to how meat products - unless processed, packaged, distributed and stored adequately - can spoil in relatively short times (especially at high ambient temperatures)

Define "Chilling"

WHO defines chilling as the process of cooling food to an appropriate temperature, often 5degrees or colder, but avoiding any formation of ice crystals.