Perishable Food Chain
A “Perishable Food” chain Industry facing energy and distribution challenges
Kunal Bajaj
Indian Institute of Technology Kanpur
Kunal Bajaj is M.B.A student at Indian Institute of Technology Kanpur 208016 India (e-mail: kbajaj@iitk.ac.in, (M-9198433257)).
Specific Conference – Bangkok, 2013
Paper Category- Case studies
Track-Business
Abstract: - There have multiple warehouses (Distribution Centers) located in India and there exist common suppliers for each product. Also, these suppliers are located across the country. Warehouses order as per their requirement. Since the per trip loads are not enough to send a dedicated truck from supplier to each warehouse, receiving on-time deliveries and food safety of the products was a challenge. This had affected inventory holding in warehouses leading to higher inventory carrying cost, high inventory days, threat of stock-out situation and in-transit damages, safety of food items in transit and higher inbound cost. Moreover, Retail Stores were delivered Frozen, Chilled and Dry goods in separate vehicles. This resulted in higher transportation cost, more manpower in loading / unloading / delivery and inconvenience to stores which were receiving, multiple deliveries and multiple documents. Once Orders were placed, the status was available on the order w.r.t. the date and time when the delivery will reach and the fill rate / quantity received, was known only when the delivery reached the customer. This affected further commitments from Distributors to the retailers and impacted subsequent orders. Since the retail purchase of the products, is driven by impulse, absence of product in the shelf means loss of sales. Higher energy costs primarily, electricity contributes major operational cost of running the high capacity warehouse, which leads to scope of high use of Technology i.e. Puff Insulated panel on floor, roof and walls, highly efficient and durable heat exchangers, compressors, Wind mill
Kunal Bajaj
Indian Institute of Technology Kanpur
Kunal Bajaj is M.B.A student at Indian Institute of Technology Kanpur 208016 India (e-mail: kbajaj@iitk.ac.in, (M-9198433257)).
Specific Conference – Bangkok, 2013
Paper Category- Case studies
Track-Business
Abstract: - There have multiple warehouses (Distribution Centers) located in India and there exist common suppliers for each product. Also, these suppliers are located across the country. Warehouses order as per their requirement. Since the per trip loads are not enough to send a dedicated truck from supplier to each warehouse, receiving on-time deliveries and food safety of the products was a challenge. This had affected inventory holding in warehouses leading to higher inventory carrying cost, high inventory days, threat of stock-out situation and in-transit damages, safety of food items in transit and higher inbound cost. Moreover, Retail Stores were delivered Frozen, Chilled and Dry goods in separate vehicles. This resulted in higher transportation cost, more manpower in loading / unloading / delivery and inconvenience to stores which were receiving, multiple deliveries and multiple documents. Once Orders were placed, the status was available on the order w.r.t. the date and time when the delivery will reach and the fill rate / quantity received, was known only when the delivery reached the customer. This affected further commitments from Distributors to the retailers and impacted subsequent orders. Since the retail purchase of the products, is driven by impulse, absence of product in the shelf means loss of sales. Higher energy costs primarily, electricity contributes major operational cost of running the high capacity warehouse, which leads to scope of high use of Technology i.e. Puff Insulated panel on floor, roof and walls, highly efficient and durable heat exchangers, compressors, Wind mill
References: [1] http://business.outlookindia.com/print.aspx?articleid=576&editionid=20&catgid=1&subcatgid=244 [2] http://www.fnbnews.com/article/detnews.asp?articleid=32630§ionid=11 [3] http://www.fcaoi.org/cold_storage_patrika.html [4 ]http://forbesindia.com/printcontent/32162] [5] http://nhb.gov.in/schemes/capital-investment-subsidy.html [6] http://www.nabard.org/pdf/circular-Cold%20storage.pdf [7] http://www.nhb.gov.in/doc/CISS.pdf [8] http://www.nhb.gov.in/doc/Publice%20Notice%20for%20IQF.pdf