Food Retail Logistics & Packaging Summit & Awards

Vivek Sarbhai

Vice President : Logistics & Customer Operations

Cadbury India Ltd

2

End to End Cold Chain is required to drive consumer satisfaction through reduced Heat Damage complaints

Mode Location From Location To Target Temperatures Target Temperatures Summit Bournville

Primary Transportation Plant Depot 21 C +/- 1 C 21 C +/- 1 C

Depot storage Depot Depot 21 C +/- 1 C 21 C +/- 1 C

Secondary Transportation Depot RD 23 C +/- 1 C 23 C +/- 1 C

RD storage RD RD 23 C +/- 1 C 23 C +/- 1 C

RD to retail RD Retail 25C +/- 1 C 27C +/- 1 C

Retail storage Retail Retail 25 C +/- 1 C 27 C +/- 1 C

B. Project Summit : Temperature Norms from Plant to RetailA. 69% of consumer complaints are Heat Damage

C. Complaints on Temptations, Celebrations and CDM increase in summer

Capability : End to End Cold chain

3

End to end Cold chain Landscape

External suppliers

External Suppliers

Cadbury Plants and

CMO

Wholesalers

RM/PM W/H

3PL Distribution

Centres

Distributors

MT DC & MT Distributors

Stores

Retail Outlets

SH

OP

PE

RS

Cold chain

Cold chain

Cold chain

Cold chain

Cold chain

Cold chain

Cold chain

Cold chain

Cold chain

Cold chain

Temperature

controlled

warehousesCold Chain

Ref vehicles

in Summers

& Insulated

in Winters

Storage in

AC Rooms

Delivery

in cold

chain

vehicles

Delivery

units with

Shippers

Visicooler/

AC

Storage

4

Implementation Plan: We have identified 8 Work tracks & developed a 4 year implementation roadmap

Retail Outlet

Re-distributor

Warehouses

1. Cold chain at RD godowns in TG Towns

2. Visi Coolers at all Wholesalers

Mfg. Plants

1. Refrigerated Trucks usage for Premium chocolates and also all along in summer months

1. Visi Coolers in all HEG/FS/SAS in TGS Towns

2. Cold chain from RD to Retail

3. Visi Coolers in sub stockists (small towns / rural)

1. Cold chain from depot to RD (T,G,S,SST)

2. Depot cold room infrastructure

Requirement Unit 2010 2011 2012 2013 Total

Visi coolers No.

Visi coolers No.

`Visi coolers No.

Requirement Unit 2010 2011 2012 2013 Total

Freezers/ ACs No.

Delivery Units No.

Requirement Unit 2010 2011 2012 2013 Total

Refer Vehicles No.

Cold Room Space

Sq ft

Requirement Unit 2010 2011 2012 2013 Total

Increase in Refer Vehicles

No.

Hardware Quantities

5

End to End Cold Chain – Infrastructure plans

Retail Outlet

Re-distributor

Warehouses

1. % of TITANIUM RDs compliant on all elements

Mfg. Plants

1. Refrigerated Trucks usage for Premium chocolates and also all along in summer months

1. Visi Coolers in all HEG/FS/SAS in TGS Towns

1. Cold chain from depot to RD (T,G,S,SST)

2. Depot cold room infrastructure

Requirement Unit Exit 2010 2011

Visi coolers No.

Requirement Unit YTD Aug ‘10 Exit 2010 2011

Warehousing:A/C Temperature GaugeDelivery:Freezers, Shippers & Chill pads

%

%

Requirement Unit 2010 2011

Refer Vehicles No.

Cold Room Space

Sq ft

Requirement Unit 2010 2011

Refer Vehicles / Total Cold Chain fleet (incl. insulated)

%

2. % of GOLD RDs compliant on all elements

6

End to End Cold Chain – 75% Volume Delivery thru cold chain

Fleet Size 32

%age compliance 69%

Fleet Size 30

%age Compliance 75%

Fleet Size 41

%age compliance 77%

Fleet Size 40

%age compliance 76%

West Branch

East Branch

South Branch

North Branch

68%75%

143130

0%

20%

40%

60%

80%

2010 2011

%age C

old

Chain

Com

pliance

0

40

80

120

160

Fle

et

siz

e (

No)

Increase in Cold Chain Compliance

Fleet Size of 143 across regions

7

End-to-End Cold Chain Depot Space (Sq. Ft.)

114000

135907

2009 2010

37%

2010: Quantum leap in cold chain

Cold Chain Fleet & Distance

63

114

5.14

2.5

0

20

40

60

80

100

120

2009 2010

Cold

Ch

ain

Fle

et

Siz

e

0.0

1.0

2.0

3.0

4.0

5.0

6.0

Cold

Ch

ain

Mn K

Ms

8

Monitoring & managing the temperature throughout the cold chain

Where Preliminary / Earlier Current Advanced / Future

In Temperature controlled factory warehouses & depots

Temperature data logger

Temperature data logger with SMS / email in case of violation

1. Compressor monitoring & alert in case of breakdown.2. Door open alarm

Primary transportation Temperature noted at the beginning & end of trip

Temperature data logger set at periodic intervals. Print out at the end of trip

Temperature data logger with SMS / email in case of violation

Secondary transportation ( depots to redistributors)

Temperature noted at the beginning

Temperature data logger set at periodic intervals.

Temperature data logger with SMS / email in case of violation

Redistributors (RDs) warehouse

Air conditioner temperatures

Temperature data logger

Temperature data logger with SMS / email in case of violation

Tertiary distribution (RDs to retailers)

- - Shipper temperature log

9

A/C Warehouse – temperature log report for year

10

Reefer vehicle - temperature log report for a trip

11

Live Temperature Monitoring of a Multi-chamber warehouse

12

Online Vehicle Tracking & Temperature Monitoring System

• GPRS based solution

• Tracking possible for – temperature setting of reefer unit– Temperature of return air– Door status– Hourmeters– Fuel level– Vehicle location & kms travelled– No of stops & halting time

• Review data for any period starting every 30 min,1 hr, 3 hrs, 6 hrs, daily etc

• Email or SMS Alert for temperature range violation

13

Online Vehicle Tracking & Temperature Monitoring System

14

Designing Energy Efficient cold rooms

• Usage of PIR / Rockwool insulation to achieve low thermal conductivity as against traditional RCC & brick wall structures

• Designing refrigeration / air conditioning system for optimum cooling & RH

• Air conditioning capacity (tons) reduced to less than half.

RCC roof & Brick Wall structure 80 mm PIR panels for roof & walls

15

Thank you