COOL CHAIN IN SUPPLY CHAIN

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1 COOL CHAIN IN SUPPLY CHAIN FORCE LOGISTICS PVT. LTD. TEL: TO 1074 FAX: Web:

2 Cool Chain Management - Commodity Flow In Cool Chain Process Farm Packing House Pre-Cooling Area Refrigerated Transport Cold Storage MARKET Refrigerated Transport

3 Cool Chain Management A cool chain is described as a logistics process where temperaturesensitive cargo will maintain its integrity through. multi-modal movement and kept in ambient facilities to ensure 100% quality, freshness, and customer satisfaction The equipment and people that keep the vaccines cold during their journey are together called the Cold Chain The cold Chain is as strong as its weakest Link. We are all part of the Cold Chain.

4 The Challenges In - Cool Chain Management From origin to destination, the cool chain must ensure that that cargo flows in a specific temperature to ensure Food Safety Flower Freshness Drug Potential The transshipment is a challenge when the cargo is transferred along the logistics journey from one mode to another and trying to keep ambient temperature that is critical for cool chain integrity. It is essential to monitor product degradation at every stage of transportation to avoid litigation.

5 What is Supply Chain..? A supply chain integrates activities of all members of the chain from farmer to the consumer in the chain. It converts a raw material to finished product by adding value along the logistics process.

6 Food Cool Chain Fresh food processing demands special skills of logisticians because of variety of food items, weather induced fluctuations in supply, highly changeable prices, great variability in quality attributes, extreme perishability in most cases, varying requirements in storage and handling - all present real challenges.

7 Floriculture Cool Chain A research report of TLC mapped the process of logistics journey from farm to the vase where flowers could wither in post-harvest handling stage if the cool chain criteria is not met. The manner of how a flower is cut to the way it is packed and handled for shipment reveal the need for logistics training to ensure customer SATISFACTION.

8 Pharmaceutical Cool Chain A drug formulation must be potential enough to treat an ailment. Medicines need care in manufacturing, storage and shipment at the right temperature.

9 Issues In Cool Chain Cool-chain management of perishable and temperature sensitive cargo is a specialized element of supply-chain management. Product deterioration is slowed by using a variety of temperature retarding and cooling techniques and environments. Although loss of product quality can occur at each point along the chain, most damage to perishable products results from a breakdown in the cool-chain and/or poor handling.

10 Watch Out The Weak Link Local Transport Local Assembly Points Warehousing at Sea/Air Ports Quality of Receiving Port Services Importing Country s Transport System Warehousing & Distribution in importing Country

11 Perishable Logistics In Cool Chain Lessons In Humid Environment Perishable product is not inert (i.e., it is subject to deterioration) with different products breaking down at different speeds. This means that the peak of a product s life is the very moment before it is picked/harvested/caught, then the deteriorating processes begins. Nothing can stop this natural process. Best measures simply slow the rate of deterioration and maximize product condition and shelf-life.

12 Outsourcing:- From Commodity to Partnership The BestWay.. Transportation and logistics outsourcing has evolved from a freight-based commodity to a value-added logistics and supply chain partnership in which logistics service providers (LSPs) have emerged as seamless extensions of the freight carrier. Today, LSPs generate results that meet or beat the shipper s own capabilities. This is especially true in the life science industry and pharmaceutical cold chain where shipping biological materials has become so important, and is not the core competency of the shipper. By transferring responsibility for logistics infrastructure to a globally connected third party with cold chain expertise valuable resources, both people and money can be freed up for other projects. Traditionally, for example, a shipper managing its own cold chain must purchase, store, test, and maintain the packaging inventory, such as insulated boxes with dry ice or cryo-shippers and liquid nitrogen. These inventories have real financial impact in terms of real costs and space requirements. Unfortunately, industry metrics indicate that up to 30% of cryoshippers are never returned adding real losses and additional cost. Less tangible, but equally important is the personnel time and effort, e.g. staff must be trained to safely handle liquid nitrogen or may be exposed to handling hazardous dry ice. If dealing with international shipments staff must know how much dry ice to pack to minimize risk of temperature excursions and must be trained to accurately fill out customs documentation for global destinations. Those same employees also must spend time tracking shipments and if using cryo-shippers, spend time ensuring the recovery of the cryo-shippers from their destinations. But by shifting thinking from a freight-based mentality to a true outsourced partnership, biotech and pharmaceutical companies can work with cold chain specialists that have expertise in filling out the paperwork, monitoring the shipment and bear the cost of managing inventories.

13 SCALABILITY For those companies that have committed to minimizing risk of temperature excursions for the shipping of biological materials, the only suitable solution is the stable temperature of cryogenic shippers. Unless your frozen cold chain shipping requirement are static, stable, or highly predictable, managing an appropriate level of inventory of cryogenic shippers is costly. Too few cryo-shippers on-hand and shipments are held up delaying revenue or extra costs are incurred to expedite the return of inventory from the field. Too many shippers and unused expensive inventory sits on shelves. Outsourcing to a frozen cold chain service provider can provide overnight scalability. A client, for example, may have need for one shipment today, 50 tomorrow and 100 a few days later. An LSP, like CryoPort, can maintain a suitable level of inventory by spreading the variability of demand over a larger customer base. And because the cryo-shippers are constantly in use, their maintenance and validation is a routine part of the service. Therefore, LSPs provide the surge capacity life science companies need without the overhead of maintaining or retrieving their own inventory of specialty containers.

14 BEST PRACITICE As specialists, logistics service providers have benefited from seeing best practices throughout the industry and know what works and what doesn t. And, because shipping is their core business, they have the intelligent infrastructure needed to respond to the constantly changing global transportation situations such as weather, strikes, and foreign holidays that may interfere with the routine delivery of the shipment. In the past several years, shipping has been transformed from a commodity to a partnership in which cold chain specialists handle the most sensitive deliveries on time and at temperature with minimal shipper input.

15 Coming Home To India We Are Different 5,000 Year old Ancient Civilization 325 Language Spoken 1,652 dialects 18 Official Languages 28 States, 7 Union Territories 600 Districts 3.28 million sq. kilometers Area 7,516 kilometers Coastline 1.1 Billion population. GDP % 576 Billion. (GDP rate 8%) Parliamentary from of Government Worlds largest democracy Worlds 4 th largest economy Largest English speaking nation in the world Indian Railways Largest employer in the world 4 th in terms of volume (Pharma Market) 12 th in terms of volume (Pharma Market)

16 Coming Home To India We Are Different Distribution Channel Pharma Companies 5,000 Primary Sales 95% of Trade CFAs 95% of Trade Distributors / Stockiest 60,000 Secondary Sales Sub-Stockist Retailer s 500,000 85% Contribution Hospitals Dispensing Dr Patients Doctor

17 Coming Home To India We Are Different Snapshot of Stocks In The Chain As we move down the Channel, the Awareness / Knowledge levels Tend to Deteriorate. Chances are- We might lose control over Quality

18 Coming Home To India We Are Different Links In Cold Chain (TIME IS CRITICAL) Manufacturer 60 Hours Warehouse C&F Agents 60 Hours 48 Hours Maximum Control Stockiest 48 Hours Restricted Control Retailer / Institution / Hospital.

19 Logistics Partner To keep everything in control and ensure the safest handling of cool chain management, we just need a reliable logistics partner and here the search of a true & reliable partner ends With Force Logistics

20 About Force Logistics.. Force Logistics Private Limited was founded by professionals who wanted to make a difference in the conventional clearing and forwarding industry. The company started operating in all major cities in India with a determination to give the industry in India a face lift and offer the Indian customers finest Logistics services. Within a short span of time, it has grown effectively. The operations based on strong values and ethics enabled the company to muster sizable market share. colossally to become one reliable Logistics organizations in India. Currently with its global network Force Logistics operates quite strategically. We are leading privately-operated go-to provider in India, south Asia, Europe and US for third party logistics offering unmatched quality, service and value. Force Logistics is uniquely qualified to design and implement an efficient logistics solution that provides best in class service to our clients and our client s customer. Our intimate relationship at all levels of the supply chain ensures our ability to provide additional value and dimension of service to our customers. We can help keep your logistics activities simple by offering single source solutions. Our selection of services in warehousing, transportation, technology and value added provide an integrated solution of multiple activities for our customers. Being an independent logistics provider we have pursued a very clear strategy since the incorporation of the company. On the one side, our goal was to establish a strong and reliable network for our clients. On the other side, we strived for worldwide cooperation's with other independent partners who are market leaders in their respective countries. We are an international logistics, supply and transportation company. We operate Globally. We serve wide range of Industry segments all across the globe. We have a very strong world wide business associates network.

21 Scope OF Business Customer, under its regular freight movement policies from India, is always engaged in developing a good and reliable business partner / associate within India, who can handle there huge & sensitive business volumes from India in a proper and purely professional manner. Hence there is huge scope of Freight Forwarding & Logistics services, specially Exports of material, local custom clearance and delivery of material at desired customer s location worldwide.

22 Why Force The Business Community in India was forced to choose between the traditional clearing & forwarding and Foreign Multinational companies. The traditional companies failed to give the competitive edge due to their myopic vision and conceited approach to business. On the other hand, the Multinationals were unyielding and failed to blend in the local business landscape. Force has the right combination of global experience and local understanding. We can confidently say we DO think global and act local. Quality driven and committed to keep YOUR promise to the customer, our experienced team monitors every shipment closely 24 X 7. In case of any eventuality, the trained pool of talent works together as a team and take alternate steps to circumvent the hurdle and quickly resolve delivery. Our real time updation of our welldefined check points that are built with finesse, keeps customers updated and prepared. Force provides you all Logistics related services under one roof. Our carrier-neutral and mode-flexible approach to transportation enables us to deliver your products and equipment's in the desired place before the dead line simultaneously keeping your cost under control. We help you strike the best balance between the cost and the quality. As a part of 3rd party transportation management, we can provide you with first-rate services from carrier management to transportation strategy assessment. Already having proved our mettle in tough market conditions, we have been successful in evolving and improving efficiency in an environment where most of the components of the supply chain have been commoditized and are available off the shelf. Moreover, we engage competent professionals from Logistics service provider background and the Industry giving us an edge of collectively having seen the supply chain activities from both sides of the table. We are critically aware of the concerns of the Industry as well as the strengths and limitations of the resources and infrastructure.

23 Force Can Help This is where we can help customer, we have our own offices across the country which will help in providing single window solution to avoid multiple communication with multiple people, single point of contact to take care of your logistics requirement. We have our own in house team of custom clearance and experts in logistics and delivery services, we have our own fleet of Trucks ensuring timely delivery of material across the Globe. We will set-up our in house help desk exclusively for you and provide an exclusive team of highly trained executive s to interact with buying house, suppliers and your office to collect and compile the shipment details including delivery status of shipment at respective locations.

24 STATEMENT Last, but, not the least, it goes without saying that we are hard core supply chain provider and hence, your shipments with us will always in safe hands. We sincerely hope & trust that you would provide us an opportunity to put our words into deeds & pave the way for a long lasting & fruitful business co-operation. We keep our self at your disposal, now & always and look forward with anticipation, of hearing from you to catalyze the growth of our symbiotic existence. In anticipation of your queries & valuable business support, we remain