Actionable data for the intelligent Supply Chain Pallet-level Freshness Management

Transcription

1 Actionable data for the intelligent Supply Chain Pallet-level Freshness Management Erik Cotman Director EMEA Intelleflex Corporation 1 Smoked salmon blamed for salmonella outbreak in Netherlands 2

2 Food for thought Each year, perishables suppliers ship over five billion pallets valued at $2.6 trillion of chilled meats, seafood, cheese, produce, temperature sensitive pharmaceutical and biomed products. (EPCglobal) The GDP of France is $2.5T On an industry-wide level, losses due to spoilage and shrinkage translate into $32 billion for chilled meats, seafood, and cheese; $34 billion for produce; and $5.4 billion for pharmaceutical and biomed products (71.4b). (EPCGlobal) Total Internet advertising spend in the US is $40b Do you see the difference? 4

3 Do you see the difference? SHM PowerPoint Template Guidelines A day later SHM PowerPoint Template Guidelines

4 Visual Quality and Actual Quality Quality Index o C Ripening not visually apparent until late in process 0 o C Visual Quality Indicators o C Actual Quality Why visual inspection is a poor indicator of remaining freshness - Okay at store level, but not helpful earlier in supply chain 7 Freshness and Quality Traditional methods still result in significant waste Visual quality inspections Trailer-level and storage temperature monitoring Timing versus measuring pre-cool process 8

5 Today s Supply Chain Raw Materials Transit Processing Transit DC Transit Retailer QC QC QC Today s supply chain is complex and fragmented Very little information exchanged, especially quality data Temperature abuse can - and does - occur throughout entire supply chain leading to food safety issues and reduced shelf life Impacting trading partners/consumers further down the supply chain Inventory is managed by FIFO blind to invisible shelf life loss and other product quality issues. 9 Managing Shelf-life 10

6 Value Chain Grower/Packer/ Shipper Wants to ship large volumes of product with lowest shrinkage and justify the highest price Retailer Needs to protect his investment via a long shelf life product to sell to an ever discerning consumer Consumer Trusts and selects the Retailer and brand based on freshness and taste. Trailer/container-level Traditional Temperature Monitoring High variation between ambient/trailer and pallet temperature - Up to 30% variation from pallet to pallet temperature - Only covers transport not transfers - Really just checks refrigeration compliance As a result Undetected remaining freshness varies among pallets Leads to waste when handling based on original expiration date On average, 2 pallets from every trailer lot are not saleable For every trailer of berries, 2 pallets are wasted due to spoilage At $4/clamshell, this represents $3456 in lost revenue per trailer This cost is passed on to the cold chain through increased prices, over stocks, out-of-stocks, handling costs 12

7 Case Study: Pallet-level Variation in Distribution Acceptable Range 13 5 of 26 pallets impacted 14

8 It Starts Here: Field to Packing House Harvest Conditions Vary Significantly As Does Transportation from the Field Refrigerated Truck - 38 Open Truck - 85 Closed Van SHM PowerPoint Template Guidelines Case Study : Field to Packing House Due to Temperature Variations and Time Spent at High Temperatures Pallet Relative Remaining Shelf Life After QC at Mexico Pack House Shelf Life (days) > <10 % Total Pallets 23.2% 19.7% 27.1% 12.3% 7.9% 5.4% 2.5% 1.5% 30% of Pallets requiring Special Handling Pallets with a shelf life index less than 14 days require special handling Can t be shipped and meet all of the routing profiles Special handling required to eliminate potential shrink and quality issues Pace of shrink accelerates over time In-pallet RFID temperature monitors provide Actionable Data: Establish shelf life indexes Reduce shrink using uniform pallets and prioritized routing Pallets requiring special handling 16

9 Pre-Cool Monitoring Harvest temperature variations significantly impact precool Current precool operations produce non-uniform cooling within and across pallets Do not measure product-level temperature, only ambient temperature Pulping is inefficient, time-consuming and doesn t measure a pallet s core temperature 25,0 20,0 15,0 10,0 5,0 0,0 11:40 11:50 12:00 12:10 12:20 12:30 12:40 12:50 1:00 PM 1:10 PM 1:20 PM 1:30 PM 1:40 PM 1:50 PM Outside Inside Pack House - Mexico Pallet-level temperature monitoring in precool (with alerts) solves inconsistent core temperature problem 17 FIFO vs FEFO 18

10 Pallet-level Monitoring Only pallet-level temperature monitoring provides the actionable data necessary to enable delivered freshness Optimize inventory management Improve efficiency Improve confidence in delivered quality Enables Freshness Management Not just monitoring for failure Reduce out-of-stocks Reduce need to overstocks Provides traceability from processing through delivery Automates all data capture run at the speed of commerce 19 Case Study: Pallets of Frozen Food in Distribution Acceptable temperature limit Impacted product warmed over trip - 4 pallets over limit Temperature excursion at loading unrecorded by truck-level monitor Truck-level monitor reported all good - 4 pallets should have been rejected But waste could have been avoided Pallet level monitoring ensures proper handling throughout distribution Inadvertent excursions can drive alert notifications in time to avoid waste 20

11 Returnable Transport Items GTIN EPC Global PalletTag w/temperature Identification Localisation Condition Readers x 0HIO Cloud Based data collection server Long Range RFID reads automate Scan Compliance Temperature data available throughout supply chain

12 New RFID Enables Actionable Data XC3 Technology Temperature Monitors Can be read wirelessly, through pallets, without unpacking - Reliably read & write data to tag throughout supply chain Includes temperature/condition sensors Includes additional tag memory for shipping/order information to automate receiving / exchange of information. Can be integrated directly into RTIs/RPCs Provides a complete traceability record from field to fork Field Transit Packing Transit DC Transit Retailer 23 Intelleflex Founded in patents file / 14 patents issued Award-winning technology Extended Capability RFID built on ISO and EPCglobal standards-based RFID technology Superior Read Range of 100m+ Ability to read/write reliably in RF-unfriendly environments On-board tag memory for epedigree, customs info and traceability New generation of products being introduced New ISO/EPC multi-protocol readers New ISO/EPC tags for temperature monitoring, asset tracking and other applications 24

13 The Intelleflex Mission Working with industry-leading partners, become the leading provider of optimization solutions for: Fresh Produce and Perishable Foods: Improve the quality and consistency and reduce shrink Pharmaceutical/biologics: Verify product integrity to ensure efficacy and quality Asset utilization: Optimize and reduces capital carrying costs for Construction, harvesting and other mobile worksites Reusable transport items (RTI) and containers Personnel monitoring: Extend security for site management and safety Improving Profitability and Sustainability 25 Thank you Actionable Data Intelleflex Corporation

14 XC3 Technology Features Customer can monitor and maintain product temperature from harvest to store. Data collected drives actionable decisions, achieving First Expired First Out (FEFO) inventory management and reducing shrink by up to 50%. REQUIREMENTS XC3 Technology Passive RFID Long Read Range > 120m ~ 12 ft Long Write Range > 120 ~ 9 ft Large User R/W Memory 61,440 bits (60 kbits) ~ 1,000 bits Security Multi-layer access control Password Protected Memory Minimal Sensor Support Industry-standard I 2 C bus Very limited Data Logging (with time stamp) Yes, >3000 data points None Selectivity Individual tag or groups of tags None 27 The Intelleflex Product Family Tags Tag ICs Readers Delivering Actionable Data through a Standards based platform Extended Range (300+ Feet) Sensor Support Simplified Deployments 28