CLIP Cool Logistics Improvement Program

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1 1 CLIP Cool Logistics Improvement Program What is CLIP? Do I need it? What s involved? What does it Cost? What One Company Found A Case Study What to do next? CLIP Application Form 2010, South Australian Freight Council Inc.

2 2 CLIP Cool Logistics Improvement Program What is CLIP? CLIP is a South Australian Freight Council 1 funded initiative aimed at assisting eligible small-medium firms get quality product to their customers in top condition. CLIP provides a point of difference and adds value to your supply chain. CLIP can cut out poor cold chain performance and improve management of your supply chain - meaning perishable products arrive on-time, in-full and in top-condition. CLIP helps you understand each step in the supply chain, track and monitor the time / temperature of your products, strengthen supply chain relationships, set performance benchmarks and implement improvements - from point of product preparation, packing, despatch, transport through to delivery to buyers premises. CLIP is a self-learning continuous improvement program that let s you maintain market advantage - even after the program is over. CLIP is a simple, straightforward and practical way to manage your Cold Chain. Do I need it? Over many years the South Australian Freight Council s Cold Chain & Quality Working Group has undertaken independent temperature monitoring trials for a range of companies with perishable products and found that in all cases improvements can be made that will directly improve the out-turn of their product for their customers. In addition temperature monitoring can reduce food safety risks. 1 The South Australian Freight Council (SAFC) gratefully acknowledges funding it receives from the Commonwealth and State Governments and industry.

3 3 Companies that have participated in temperature monitoring to date have ranged from those that are looking for a solution to a specific problem or companies that want to demonstrate to their customers how well their supply chain is operating. Export, Interstate and Intrastate shipments have been analysed. Typical problems encountered include: Product not pre-cooled correctly Product not packed appropriately Product left out in the sun or heat for extended periods Product at too high a temperature when being loaded Inside of trucks too hot on pick up and/or delivery Truck refrigeration not operating effectively during transit Refrigerated transport not being used when it needs to be Unchilled product being added to the load Reefers not being connected to power quickly enough Refrigeration equipment failure Air cargo spending extended periods on-tarmac before loading to aircraft Loading of air cargo in the wrong aircraft hold Cargo being left out in the sun / heat for extended periods during transhipment Cargo delays Delays in unloading cargo overseas or interstate and not under refrigeration Cargo deliveries in non-refrigerated trucks Delays unloading at the customer s premises not under refrigeration Using CLIP helps diagnose cold chain problems and implement solutions. What s involved? Getting Started Lodge an application to enter the program nominating which chain(s) you want to look at. On receipt of approval (generally within 2 weeks) set up your CLIP Team within your organisation. Get your team to map the chain door to door using the CLIP template Determine how you are going to track the location of the cargo as it moves through the chain with your partners (time/date). Define acceptable temperature range and handling guidelines for your product. Discuss it with your chain partners. 2 Decide if you are going to use temperature loggers inside the carton or temperature product probes that measure core product temperature. Advise CLIP. 2 NOTE: Temperature handling guidelines are available from SAFC

4 4 Implementation Set a start date for the first shipment, communicate that to your chain partners Obtain the temperature data loggers from CLIP Send a prepaid data logger return satchel to your customer or place it in the specially marked data logger carton Place the data loggers in the cargo, turn the data logger on once in the cool room and wrap the outside of carton(s) / packages with coloured Data Logger marking tape. Measure the product temperature, truck temperature and ambient air temperature at loading. Record temperature, time, location, date and name and position of person making the entry. Note if product loaded in ambient or controlled temperature area. Let the customer know when the product has left and its estimated arrival time. Remind them they need to remove data logger on receival & return it to CLIP. At destination remove data logger, turn it off and return it to CLIP Analysis Unit. Record action, time, location, date and name and position of person making the entry. Note if product unloaded in ambient or controlled temperature area. Receive CLIP Cold Chain performance report and plan actions to be implemented prior to next shipment Repeat CLIP chain monitoring process Post CLIP Program Install data logger software to conduct your own data logger analysis on an ongoing basis Develop cold chain management performance benchmarks and standard operating procedures & implement them. Undertake your own temperature monitoring on other chains in your business Maintain a Freight Issues Log & review performance every three months Continue to make improvements What does it Cost? The South Australian Freight Council does not charge its members to join or participate in the CLIP program. Non SAFC members are charged $100 plus GST. A CLIP manual is provided at no charge for participants to work through during the program. Subject to demand, a 4 hour workshop will be run [about every 4 months] that enables individuals to chain map, work through the manual, be shown how to place data loggers and practise with data logger software. Participation in the workshop costs $ plus GST

5 5 Approved 3 temperature data loggers will be provided to CLIP participants at cost to use during the program. Data loggers cost around $50-$60 plus GST for a reusable button type and $250 plus GST for one with a temperature probe. About 3 data loggers are required per shipment as a minimum. Where data loggers are not returned by the customer the CLIP participant will be required to pay for supply of replacement data loggers. A free telephone/ information service is available during the program. Chain mapping and data logger placement and analysis consulting services are available at a reasonable cost. At the completion of the program the participant is asked to make time for an exit interview to summarise the results of the program, comment on how it might be improved and what changes will be made (if any) to their cold chain management practices. Disclaimer SAFC provides this program as a service to assist its members and non members in the carrying out of their businesses. SAFC is not responsible for any liability in relation to the program and in particular, but not limited to, defects in the temperature data loggers nor any data obtained during the program. Any user of the program agrees to provide an indemnity to SAFC. 3 To keep costs down only two brands of temperature data loggers will be used thereby avoiding the cost of low volume purchasing and buying software for once off use

6 6

7 7 What One Company Found A Case Study Case Study Salad Greens Source: Tasmanian Freight Logistics Council Trip 1 Temperature (Degrees Celcius) 7 Core Temperature Dispatch Arrival at wholesaler Coolchain Timeline (Hours) A company producing salad greens in Tasmania was using two different transport companies simultaneously. Temperature monitoring proved to be an invaluable tool in identifying the supply chain partner that could best meet their cool chain requirements. Temperature logging devices were placed within each consignment of Mesclun mix sent to a Retailer. The tracing device recorded both the product temperature inside the carton, and the air temperature outside the pallet, at five minute intervals throughout the cool chain journey. This allowed the company to develop a clear picture of how their product was being handled and stored throughout each stage of the cool chain. Additional information on product movement was provided by key personnel involved in handling the product along the way. In order to meet the Retailer s specifications, the product was required to be within a temperature range of 1-4ºC upon arrival at their depot in Melbourne. Temperature data logging showed a significant difference in performance between company 1 and company 2. 4 % of product arriving at Retailer within specifications when delivered Transport Company 1 % of product arriving at Retailer within specifiications when delivered Transport Company Clearly within specs. Borderline Would clearly be rejected Clearly within specs. Borderline Would clearly be rejected Problems identified included: Dispatch temperature not low enough Containers switched off during the journey Non chilled goods added to the load resulting in heat transfer Product getting frozen by use of incorrect delivery vehicle Solutions included: Using best performing transport company Communicating better with the transport company Pre-cooling & packaging improvements Better staff training Controlling the supply chain better 4

8 8 What to do next? If you think CLIP can help your business and maintain or increase your market share and want to participate in CLIP then you need to: Be a producer/catcher, processor, packer, marketer or commercial buyer of South Australian perishable food products Operate your business in South Australia or purchase commercial quantities of perishable food products from South Australia Be a small to medium business [less than 100 FTE s employed in South Australia] Have the commitment and resources to implement cold chain logistics improvements as part of a continuous improvement process To apply to join CLIP please fill out the attached application form. If you have questions contact: Neil Murphy General Manager SA Freight Council Inc, 296 St Vincent Street PORT ADELAIDE SA 5015 Phone: (08)

9 9 Application to undertake the Cool Logistics Improvement Program CLIP Company Name Contact Person Position Telephone SAFC Financial Member? Yes No Company Activities Product(s) Being Transported (e.g.: Cherries, Mixed Fruit & Vegetables, Meat etc) Type of Packaging e.g.: in cartons, palletised, within 20ft shipping container, hand stacked in truck, cartons packed into air cargo container [ULD] Origin / Destination (e.g.: Adelaide (Findon) to Malaysia (Kuala Lumpur) Mode(s) (e.g.: rail to port, sea to Malaysia, road to customer) Reason(s) for trial (i.e.: what is the problem and any other details/information e.g.: poor product outturn believed to be caused by extended time off power etc) Number of Logger Trials Required [Generally 2] Supply Chain Partners (please name as many as possible) (e.g.: product from XYZ Co (Virginia), moved through HIJ Cold Store, then packed and sent to Adelaide Airport by road AB Trucking) We/I have read the terms and conditions of undertaking this program and agree to accept those terms and conditions. Signed: PLEASE RETURN SIGNED FORM TO Mr Neil Murphy, General Manager, SAFC C/o Flinders Ports Pty Ltd, 296 St Vincent Street, Port Adelaide SA Telephone: (08) Facsimile: (08)

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