Cold Supply Chain – Indian Perspective
The cold chain involves storage and transportation of products which are temperature sensitive and are likely to go waste if not protected through thermal and refrigerated packaging methods. The transportation could be done through trucks, railcars, refrigerated cargo ships or through air cargo. The cold chain is a critical factor to extend the shelf life, marketing period, avoiding over capacity and maintaining quality of these perishable goods. Development of this industry in a country like India where agriculture is prevalent becomes a directive to reduce wastages and in turn providing remunerative prices to the growers. Cold supply chain also is also the backbone in the pharmaceutical industry
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Even with such pressing requirements, warehousing has seen very little investment in the country. Currently, spending in organized warehousing in India is only 9% of the total logistics spending (its 25% in the US). Logistics costs account for around 6-10% of total retail cost which is higher than the global average of 4-5%. Improvements in the supply chain and logistics can bridge this gap. An integrated supply chain (including the cold supply chain) can save more than ₨ 300 Billion for the country. This along with saving perishable horticulture produce should be an incentive to develop logistics infrastructure in a country like India plagued with inflation and …show more content…
India is one of the largest producers of horticulture crops in the world. However, India is way behind countries like China and the US in yield per hectare and stores only two percent of its produce in temperature controlled condition. This is though the fact that the country has adequate abilities to store ten percent of its yield. Of the total produce, 30-40% is wasted before consumption due to inadequacies in the supply chain. Cold storage in India has been largely adopted for long-term storage of potatoes, onions and high value crops like apples, grapes and flowers. 75 percent of the cold storage capacity is used to store potatoes, while only 23 percent fall in the multi-product category. Cold storages for meat, fish and dairy items and for other items such as chilies and other spices account for only 1 percent of total cold storage capacity. These cold storages are also usually smaller in
ITC has introduced information technology into agricultural business in India. . The eChoupal kiosks have been set up to facilitate a new supply chain. This new technology-integrated supply chain has addressed several difficulties in the past. The following sections will lay out the inefficiencies of the traditional supply chain management; describe the ITC eChoupal Initiative; and analyze how eChoupal enhances the soybean supply chain. The future platform will also be discussed.
The most important stage of the value chain is inbound logistics, because they have the chance to build value in advance. Thus, the factors of this phase are considered to be upward action. In this case, logistics task including the goods received from suppliers cargo storage, loading and unloading and the inside of the transport of goods, and lay the product on the shelf. Tesco is trying to retain consumer choice, at the levels of the store, at the same time increase the efficiency of its distribution system. For damaged goods and products quality control program of the application, it provides less unfairly assume cost, company a great opportunity, therefore, to prevent these costs on to consumers by to potentially add value for the company.
The loss of a trailer of temperature sensitive products due to improper transpiration or inventory will cost thousands of dollars. The state discussed above have their own set of complexities thus technology intervention is imperative for ensuring an effective management of cold chains. Innovative and evolving technologies can contribute to ensuring better quality, safety, traceability, transparency and monitoring of perishable food
The Home Depot Supply Chain Management model is based on integrated inventory management through a centralized network of 20 distribution centers, called Rapid Deployment Centers (RDCs) and three Direct Fulfillment Centers (DFCs) aimed at the e-commerce market (Bond, 2015). Orders are processed and managed to meet current and forecasted demands, sent to the regional RDCs, which service approximately 100 stores each, and sent to retail outlets to meet stock requirements (Bond, 2015). Direct Fulfillment Centers are e-commerce distribution systems. Home Depot delivers within a two-day timeframe to 90% of US based customers, and the system also leverages in store stock for same day pick-up (Bond,
During its initial days the Company's primary concern was to have a quick and profitable turnover of its imported meats and range of products. Later Cold Storage shifted its system from counter-services to self-services and introduced the supermarket to Singapore. Cold Storage was the first supermarket retailer in Singapore to install a fully integrated cold chain distribution system from supply chain to store level to ensure the safe handling ...
It is suggested for any organization to review, reassess any existing supply chain management or any delivery techniques, before developing a new supply chain method so that any exposure to high risk of failure is reduced. Somerset as a company taken advantage of outsourcing and transferred it product manufacturing to China leveraging low cost labor and raw material. The labor cost and other cheap material reduce Somerset overhead cost, but there is always the risk of not delivering product on time due to the foreign country political climate, change in tax and tariff and local
Storage and transportation of stock are important activities that connect all three parts of the supply chain. To work on the logistics aspects of business, LeanFoods employs specialist transportation and storage companies. TDG is one such partner of LeanFoods, for storing and transportation of pallets of LeanFoods cereals. This enables LeanFoods to concentrate on its specialist area of manufacturing cereals and other food products. To reduce the distribution costs and keep the products competitive, LeanFoods shares transportation with another manufacturer, Kimberley Clark. Sharing of transportation helps in reducing the number of part-full or empty vehicles on the road. This system not only saves time and road miles but also provides additional benefits of reducing CO2 emissions.
India’s food crisis is slightly different from the food crisis in other countries of the world that are facing shortage of supply of food grains. In India it is not a supply pushed crisis, but it is a case of the poor peoples being unable to get access to food. This is because of the ineffective and inefficient marketing strategies, lack of adequate storage facilities and man-created hoarding. Farming provides livelihood to nearly 60% of India’s 1.1 billion people, even though farm produce comprises only 18% of the India’s current GDP. India is largely insulated from food prices due to huge stocks, but has challenges like inefficient distribution system and poor storage facilities Climate Change The most concerning challenge facing India’s agriculture is climate change.
Sustainability of the supply chain has increasingly become a crucial aspect of corporate responsibility. Apart from being good for business, management of social, economic, and environmental effects of supply chain remains the right thing to do. Constantly changing markets have created complex landscapes that businesses must navigate to build sustainable supply chains. Sustainable supply chains aim at creating social, economic, and environmental value for all stakeholders throughout the supply chain. Building sustainable supply chains not only benefits the stakeholders but also aims at safeguarding business interests. Businesses can easily become sustainable by understanding who they are and working closely with people. Nestle is company that has been at the forefront in advocating for sustainable supply through the ‘creating shared value’ platform. The report makes recommendation on the role of supply chain management in attaining sustainability.
1. Every organisation in both the public and private sector is in varying degrees dependent on materials and services supplied by other organizations (Johnson and Flynn, 2015:36-37). In your view, what role can supply play in determining an organization's strategic growth?
Coolcargo and Frito-Lay implemented technical solutions for agricultural-products transportation following customers’ requirements. Coolcargo developed a transport-system for maintain fresh asparagus at controlled temperature from production site in Thailand to final destination in UK (UOL, 2013). Frito-Lay developed a global agile supply-chain for manufacturing and distributing salty-snacks to end-customers that allows processing agricultural-products in less than 24 hours for flavor guarantee (PepsiCo, 2013).
Coyle, J., Langley, C., Gibson, B., Novack, R. and Bardi, E. (2008).Supply Chain Management: A Logistics Perspective. 8th ed. Cengage Learning, p.366.
Logistics is the designing and managing of a system in order to control the flow of material throughout a corporation. This is a very important part of an international company because of geographical barriers. Logistics of an international company includes movement of raw materials, coordinating flows into and out of different countries, choices of transportation, cost of the transportation, packaging the product for shipment, storing the product, and managing the entire process. The concept of logistics is fairly new in the business world. The theoretical development was not used until 1966. Since then, many business practices have evolved and logistics currently costs between 10 and 25 percent of the total cost of an international purchase.
Food Preservation is the ways to retain the food quality in a longer times. It is to prevent the food decomposition and fermentation. Besides that, food preservation not only to prevent the food getting spoilt in a long period of time but also preserved the colour, taste and the food nutritive value. Nowadays, food preservation has become more and more important component in the food industry as the consumers expect that able to purchase those foods that are out of season or imported from other countries. Furthermore, there are few reason why food preservation is important in our daily life such as preservation foods when they are in season it may added variety choices in our meals for example smoke meats and
As an outcome of the thesis, my professional interest on the issue associated with the development of logistics sector has been enhanced. Furthermore, I am planning to keep an eye on the sector to enhance my knowledge which will benefit me and the organization I work for.