Making The Case For Cold Chain

Document Sample
Making The Case For Cold Chain Powered By Docstoc
					 coolinsights                                      TH E V I EW F R O M G EO R G I A TECH ’S I F C CENTER



 Making The Case For Cold Chain

 T
           he need for an effec-          benefit is in the area of product    cold chain is not operated effec-
           tive cold chain makes          quality enhancement. This            tively, there will often be a high
           intuitive sense to most        ensures that maximum shelf           degree of temperature variability
           participants. An effec-        life is attained for the product.    within the distribution process.
 tive, fully integrated cold chain is     When maximum shelf life is           At vulnerable points of the
 required to mitigate food safety         attained, inventory is optimized,    chain such as at the handoffs
 risks, but at the same time is           product waste is lessened, prod-     between cold chain partners,
 needed to ensure that product            uct return costs (if applicable)     the temperature may increase
 quality is at its highest levels.        are impacted positively, and the     beyond acceptable levels. At
    Most participants (produc-            cost of customer complaint reso-     other points, the temperature
 ers, packers, transporters,              lution is decreased. The benefits    may then be lowered and the
 processors, distributors and             achieved can range significantly     product brought within proper
 retailers) would readily agree           depending upon the actual prod-      temperature.                               By David M. Sterling
 that an effective, fully func-           uct and the industry segment.            The incremental energy costs
 tioning cold chain process is                Companies lose billions of       to bring the product to proper       dollar impact of these benefits.
 needed. However, when invest-            dollars in product waste every       temperature are significant com-     While percentages of product
 ments must be made to make               year. Proper replenishment plan-     pared to the cost of maintaining     waste, replenishment impacts
 this happen, then the reality            ning within an uncertain product     the product at proper tempera-       and other factors are often
 of competing priorities often            shelf life environment becomes       ture with minimal variability. In    quoted, there has been little
 requires companies to make               almost impossible. Building          addition, many times as the          empirical research to date of the
 different assessments.                   additional inventory into the        product is delivered to the store,   full economic impacts that may
                                          plan to account for potential        it is common to experience an        be obtained when the fully inte-
 Economic Benefits                         shelf life issues has obvious        increase in product temperature.     grated cold chain is achieved.
     Like so many other areas             costs in the additional inventory        For example, in multiple stop
 we evaluate in our businesses,           and product waste.                   distribution made to stores, the     Looking For The ROI
 the investments we make in                   On the other hand, revenue       product being delivered in the          Companies must be able
 improving our cold chain must            loss associated with not hav-        final stops may be especially vul-   to make decisions to invest in
 either drive economic benefit or         ing product available for sale       nerable to higher temperatures       their cold chains based upon
 meet regulatory requirements             because of reduced shelf life        because of several factors such      such economic benefit data.
 needed to conduct ou
				
DOCUMENT INFO
Description: Another area of economic benefit is that of environmental impact. When a cold chain is not operated effectively there will often be a high degree of temperature variability within the distribution process. At vulnerable points of the chain such as at the handoffs between cold chain partners, the temperature may increase beyond acceptable levels. At other points, the temperature may then be lowered and the product brought within proper temperature.
BUY THIS DOCUMENT NOW PRICE: $6.95 100% MONEY BACK GUARANTEED
PARTNER ProQuest LLC
ProQuest creates specialized information resources and technologies that propel successful research, discovery, and lifelong learning.