Farm to ForkA Supply Chain Perspective

ByZUBIN POONAWALLA

Content List

2

1. Introduction2. What is SCM3. Food Supply Chain4. Food Catagories5. Warehousing6. Processing & Pakaging7. Transportation8. Cold Chain Management9. Usage of Technology in Food Logistics10. Conclusion

Introduction

• Importance of Food.• Motivation

.

3

Supply Chain Management

What is Supply-Chain Management (SCM) ?Management of the flow of goods Movement & storage of raw materials, work-in-process

inventory, & finished goods from point of origin to point of consumption.

4

Supply Chain Management

• It’s the design, planning, execution, control, & monitoring of supply chain activities with the objective of creating net value, building a competitive infrastructure, leveraging worldwide logistics, synchronizing supply with demand & measuring performance globally” 5

Food Supply Chain

• Food Supply Chain or Food System refers to the processes that describe how food from a farm ends up on our tables.

6

Food Supply Chain• The processes include production, processing,

distribution, consumption & disposal.• Each step of the Food Supply Chain requires human,

natural resources & artificial resources

7

Example

8

Food Categories

• Animal Based Products (Fish, Chicken, Meat, etc)• Dairy Products (Milk, Yogurt, Cheese, etc)• Crop Products (Wheat, Rice, Sugar-cane, etc)• Cooked Products: Any cooked vegetable, starch or grain products

including rice, pasta & potatoes, etc.• Convenient Foods Products: Food like candies, Soft

Drinks, Juices, Fast Food, etc.

9

Food Categories• Frozen Foods

Needs to be to rapid freezing & is kept frozen until used. Freezing decreases the ability of bacteria’s to duplicate.

10

Challenges to handle Frozen Food

• Frozen Foods need special treatment when they should be transported:

• Always a low or freezing temperature • Hygienic conditions • Fast Distribution and JIT – Transportation to keep the food

fresh

11

Warehousing

12

Food Warehousing

13

A food warehouse can be a food storage facility of any size, storing any amount of food for either long or short periods of time, for distribution in normal food channels. Food warehouses serve as a critical link in the food chain from the farmer to processor to distributor to retailer & ultimately to the consumer.

Types of Warehouses1. Dry Storage Warehouses• Items which need to be kept away from moisture & Humidity• Temperature is always between 50 & 70 degrees Fahrenheit.• Temperature Variation can cause damage. Etc canned foods• Examples rice, oats & grain

14

Food Warehousing2. Cold or Frozen Warehouses Refrigerated or deep-freeze storage facility for perishable goods such as

fruits, vegetables, meats, beverages to prevent rotting, sprouting, insect damage, & other forms of degradation..

It maintains a controlled interior temperature as low as - 25°C Necessary for logistical reasons, cold storage also enables

seasonal agricultural products to be distributed to retailers across a much longer season or possibly year-round.

15

KPI´S In Food WarehousingCleanliness..does not grow bacteria, fungus or create any other health

hazardous situationsCondition of the building... well maintained the building is, the less likely

there will be pests or rodents to contaminate the food,should not have holes, cracks or other ways for unwanted critters to enter:

A pest control plan is a must for food grade warehousing inside & outside of the building

Building & staff play a big role in finding the right food grade warehouseFood grade warehouses should be registered with the Food Authorities &

up to date with local food safety inspections.

16

Food Processing & PackagingProcesssing:Transformation of ingredients into Food.Produce marketable Food Products for ConsumerInvolves activites like Mincing, Liquefication, Cooking; Preservation,

Freezing etc

17

Food Processing & Packaging

18

Food Processing & PackagingPackaging:Range of Environment friendly materials are used.Provides identification, protection, temperature resistance,

and physical, chemical, or biological needs.Contains nutrition facts & barcodes label & other information

about food.

19

Food Processing & PackagingSome more functions of Packaging:

Physical Protection.. Shock, Viberation, compressionBarrier Protection.. Oxygen,Water, DustContamination..for Small items not to mix etc.LiquidsInformation.. For Use, Transport Recycle etcMarketing, Convinience for Distribution, Handling Stacking

20

Food Processing & Packaging

Packaging Types:Primary..provides protecion to the food & informationSecondary..middle Layer of PackagingTertiary/ Transit...outer boxes or pallets for Transportation & distribution

21

Food Processing & PackagingExample:

22

TransportationFor Farm to Fork transportation is essentialA vast global transportation network is required Include suppliers, manufacturers, warehouses, retailers & the end

consumers It is middlemen responsible for getting food from field to retail.All means of transport are used

23

Transportation

Whether the food is transported by road, rail, air or sea. Some key points needs to be followed..Restricting transportation of cargo food & hazardous

materials Regular information-sharing between shippers & carriers

about food handlingMandating specific requirements for shippers & carriers

concerning record-keeping, reporting, & inspections.Keep ready-to-eat food items that are being transported

separate from raw food.Food is covered, Vehicle & transport boxes are cleanedUse a cooling system to ensure that cold food is transported

below 5°C or colder by cold chain. 24

Transportation

What is Cold Chain Transportation

25

TRANSPORTATIONTEMPERATURE

CONTROL(REFRIGERATION)

COLD CHAIN TRANSPORTATION

•A cold chain is a temperature-controlled supply chain. •An unbroken cold chain is an uninterrupted series of storage & distribution activities which maintain a given temperature range. •It is used to help extend & ensure the shelf life of products such as fresh agricultural products, seafood, frozen food, photographic film, chemicals & pharmaceutical drugs

Transportation

Cold Chain is a process since a series of tasks must be performed for temperature sensitive products at every step.

26

Cold ChainMeans of Cold Chain Transport

There are several means in which cold chain products can be transported, including refrigerated trucks & railcars, refrigerated cargo ships as well as by air cargo..

27

Cold Storage Management System

How Cold Chain is managed?A cold chain can be managed by a quality management system. It should be analyzed, measured, controlled, documented, & validated.

28

Cold Storage Management System

What are its functionalities?It manages the Time how long a the good is going to be

stored in the cold storage Offers Services like Temperature tracking– Offers the location

of the stored goods Managing a cold Storage could be easily done

with i.e. Datex Foot Print Warehouse Management System It includes temperature capture, the ability to restrict

inventory to specific temperature zones; catch weight; track and trace inventory by Lot, VAT code

29

Cold Chain Management System

IMPORTANT FACTORS WHILE HANDLING COLD CHAIN LOGISTICS

30

• Shipment in insulated shipping containers or other specialised packaging.• Temperature data loggers and RFID tags help monitor the temperature

history of the truck, warehouse, & the temperature history of the product being shipped. They also can help determine the remaining shelf life.

• Documentation is critical. Customs delays occur due to inaccurate or incomplete customs paperwork, so basic guidelines for creating a commercial invoice should be followed:

Cold Chain Management System

Global Cold Chain Facts: Food Sector

31

Fruits & Vegetables

Meat Fish & Seafood

Dairy Products

Beverages

In European countries & American, the rate of refrigerated transport is up to 80-90%, pre-cooling preservation is up to 80-100%, &the loss rate is below 5%.

25% of the total food production is processed foods.

Question

If you are a logistics company & your major product is fresh foodTo presevere the freshness of food as supplier to your retailers what would you do?

• Build more cold storage Warehouses? • Invest on your Transportation?

• Any other Suggestion?32

Usage of Technology in Food Logistics

Computers & Technlogy are essential in development of food Products.. Need to be updated with latest Technology Especially in Food manfacturing etc. Designing , Processing

managing operations, resources of plants. Most commanly used softwares are CAD, CAM,MRIPII & CIM:

33

Usage of Technology in Food Logistics

CAD• Nutritional analysis• Calculate costs, amounts• Packaging desingns• Production Flowcharts• HACCP Requirements

CAM• Monitor temperature ,

Weight,PH, quantites• Controlling Conveyor belt

speed

MRPII• A method for the effective

planning of all resources of a manufacturing company.

CIM• CAD/CAM, process controls,

groups technology systems, MRPII, financial systems, etc, are linked & interfaced.

34

Conclusion

Farmers problems... restiected markets...short term contratcs food processors & marketers receive big share a trust needs to built up between these strategic partners

Safety & environmental attributes should be cared CAD,CAM difficult to set up need skilled workers.

35

Conclusion

1/3 of food pakaging goes in waste that is 1.3 billion ton per annum.. Solution is flexible pakacaging

Massive transportation of food over great distances causes pollution peak oil & emission of CO2

Greenhouse effect causes DSD, TP&E, WMS

36

37