A cold storage area chain is certainly a temperature-controlled source chain. An unbroken cool chain is an uninterrupted group of warehouse and distribution actions which maintain confirmed temperature range. It is employed to help lengthen and make sure the shelf existence of products such as marine products, frozen, fresh agricultural manufacture, photographic film, pharmaceutical drugs and chemical substances. The chain needs to begin at the development/farm level (e.g. harvest strategies, preprocessing, Pre-cooling) and cover up to the consumer level or at least to the retail level. A well managed cool chain minimizes spoilage, retains the standard of the perishable products and guarantees a cost efficient delivery to the consumer given satisfactory attention for customer service. The main feature of the chain is normally that if the links is missing or is weak, the whole system fails.
The Cool chain logistics and supply chain administration system’s infrastructure generally consists of:
Information Management systems (Traceability and Tracking etc.)
Fig: Outline of a typical Cold Chain
Some Snaps of wintry storagesâ€¦
Global Situation Analysis
Today shippers of perishable items face an array of challenges in getting their goods to market in the most efficient and cost effective manner, but insufficient potential in the logistics and warehouse assistance industry isn’t one of these. The necessity for temperature handled storage systems for storing both foodstuff and non food is increasing in many traditional and emerging marketplaces worldwide. The makers and retailers are going to emerging marketplaces like Latin America and Asia, together with the changing preferences and tastes of customers in older market places, is having a solid effect on the logistics industry. It has led to high degrees of investment by logistics corporations and their linked suppliers because they have:
They have eliminated for acquisition or entered into alliance with regional companies for getting usage of these markets
They established cold storage enabled procedures in the areas to serve the development in affluence of native consumers
Simultaneously, demand for perishable products from these emerging market segments is increasing, with an increased level of both perishable foodstuff and non food products becoming transported to the considerably more traditional western markets of the US and Europe. This is leading to problem on the previously jam-packed shipping and delivery routes .Increasing volumes will be leading to congestion issues at important ports of the world. Cold chain market is showing tremendous increase in France, Germany, holland, Spain and Brazil. Total convenience of these countries for 2008 is normally 6,350.32 million cubic legs (179.82 million cubic meters).The industry keeps growing globally at approximately 15 percent (IARW Report 2009).The growth charge for China and India happen to be higher in comparison to global common. Both have practically doubled their potential in last ten years
A phenomenal transformation happens to be occurring that may substantially affect a multi-billion dollar global frigid chain industry. The projected gross annual wastage of perishable products worldwide is definitely 35 billion dollars. There are enormous opportunities for companies to tell apart themselves available in the market place through effectively leveraging the upcoming systems that improve logistics and supply chains. Most agribusinesses and Client Packaged Goods (CPG) corporations are not only considering process advancements of their logistics and supply chains however they are investing in and overhauling the complete business model and ways of survive in the continuously changing competitive environment. Especially for manufacturing and retailing firms handling temperature sensitive foodstuff and non food products, the substantial challenges may be emphasized by the excess cold-chain logistics associated with efficiently preserving and handling these products.
Other converging and substantial problems such as fierce competition, strict government regulations and global benchmarks for product identification, security, and tagging; and the need for enhanced traceability to boost quality and functions are influencing crucial transformation in the Retail and CPG sector. The implications of resisting these alterations and other related approaching challenges are probably lost delivery channels and a weakened competitive location. By allowing information & computing power available anywhere and anytime, firms can more quickly adapt to these difficulties and the continually changing external environment. Aside from this, they can considerably improve what they deliver, how they work, and probably their profitability.
Indian Situation Analysis
The Indian chilly chain industry is quite large and estimated to get around Rs 10,000 to 15,000crore, which is growing at a rate of about 20-25 percent and is expected to touch Rs 40,000crore by 2015.It got been in regards to a century ago this Industry came into existence. In India bulk of cold storage facilities are under-utilized or totally unused for the most the entire year. There is a big gap of around 60% in cold storage infrastructure and 80% in mobile cold storage establishments like refrigerated trucks and rail wagons. By the entire year 2012, the frigid chain industry expects to visit a huge capability addition as there is an expected upsurge in the cold storage purchase.
Current status of wintry storages in India:
The cold storage area infrastructure in India was developed way back in 1960’s typically for potatoes and potato seeds and even the investments in frosty storage were very fewer during that time. Nationwide company of cold storage services is nonexistent in those days. The number of frigid storages in India is about 5316 and the total capacity is just about 23333694 mTs. The quantity of Private sector frigid storages in India take into account 4820 with a ability of 222343607mTs, cooperative sector 363 figures with 989445 mTs, Public sector account for 133 figures with a capacity of 100642 mTs. The existent cold storage services typically serve the potato goods. There is a lack of facilities such as for example cold storage vegetable, chilly storage fruits, cold storage tamarind, cold storage fish, cold storage meat, and cold storage milk and milk products.. Cold storage services are available for just 10% of the make. In India Transport of fruit and veggies through cold chain is almost negligible, whereas in US it really is around 80-85% in america and for Thailand it is around 30-40%. In India, as a result of current inefficiencies in the source chain around Rs 1 lakh crore value of fruits and vegetables are wasted every year.
Cold chain in India -Reality:
Modern Post Harvest Control is non existent
Lack of TOP NOTCH Integrated Cold Source Chain In the united states and also Isolated Shops without Logistics Support
Using Services of Chilly Stores with Archaic Storage area Technology
The cold storage services are used mainly for low worth products like potatoes
The present cold storage facilities result in Loss of quality and therefore value of the perishables
The duration period for storage generally influenced by the market imbalances
India cool chains potential and chances:
India is the second largest producer of vegatables and fruits on earth which contributes for about 10% of the total fruit production on the planet. India is the largest producer of fruits (32mT anually) on earth, which is about 8 per cent of the global production; India is also the second most significant producer of vegetables in the world (first being China), creating around 71 mT anually, which is about 15% share on earth market. The key region in India is Foodstuff processing and it processes about 1.3% of its total fruits and veggie where as it can be 80% in USA, 70% in France, 80% in Malaysia and 30% in Thailand. To become top exporter and processor chip of vegetables and fruit, India needs a top quality cold chain. Due to lack of cold storage services and energy infrastructure about 40 percent of the vegatables and fruits grown in India (40 mT worth $13 billion) gets wasted each year, which is huge enough to feed countries like Brazil and Vietnam.
The reason behind this huge wastage is the wide gaps that are existing in the wintry chain and there is no well equipped cool chain for the preservation of fruit and veggies. The Infrastructure for Chilly chain is not existing for the manufactured capacities and same is the case with storage, likewise these close storage conveniences are not available close to the farms, furthermore to these the transportation (temperature controlled) is also inefficient. So it is important to establish top notch cold storage area logistics, which play an essential role in lowering the global food shortage by eliminating wastages, which would give us enough scope to feed various parts of the world.
The major initiatives which federal government of India has taken up to improve this sector are
Allowing 100% Foreign direct Investment
Provided total excise duty exemption on frosty chain refrigeration equipment (comprising compressor, condenser models, evaporator), which reduced the costs substantially by around 16%.
These insurance policy initiatives taken by the government have signalled the existing cold chain majors in India to create their private back-end logistics.
Existing Players in India
The Leading Cool chain firms in India with set up frigid chain infrastructure are as follows:
Container Corporation of India (Concor),
Indraprastha Cold Chain,
Glacio Cold Chain.
Bulaki Deep Freeze
Cochin. Mumbai, Delhi International airports
Aditya Birla Group
Apollo Everest kool Solutions
The existing players happen to be taking major measures in growing their capacities, which are as follows:
Snowman and Kausar, two important names in the frosty chain Industry have already been bought over. Gatia ,a logistics company in Hyderabad acquired Kausar India, Gateway Distiparks, the Transportation & logistics important acquired a controlling stake in Snowman Frozen Foods.The Future Group provides carried backward integration, from meals retailing to safe-keeping and transportation; with the launch of Potential Logistics. Ahmadabad structured Adani Group revamped its cold chain logistics facilities just lately. Main players like Bharti, ITC, Reliance, Aditya Birla Group, Bharti the Godrejs, the Tatas and the Future Group has announced billion dollar investments which offer a ready market for third-party wintry chain logistics players. Apart from the Global giants and the Indian corporate the airport infrastructure corporations and the railways happen to be also likely to build refrigerated warehouses and perishable goods cargo centres in the united states in capture the show in the booming retail sector.
The significant airports like Cochin AIRPORT TERMINAL, Mumbai AIRPORT TERMINAL, Delhi AIRPORT TERMINAL and Greenfield airport terminal projects such as for example Bangalore and Hyderabad happen to be also setting up refrigerated warehouses for perishable cargoes following to the airports and began to tap the frosty chain market. Cochin International Airport is building a state-of-the-art centre for perishable cargo, that may handle about 40,000 million tonnes perishable cargo yearly and which would help the farmers of the express who are cultivating such items.Apollo Everest Kool Solutions, which is a joint venture of Spire Group and Apollo provides plans to set up at least 15 temperature-controlled warehouses in India. The other major firms showing interest in frosty chain marketplace in India consist of Snowman Frozen Foods (sold out), a joint venture between, Nichirei Logistics Group, Mitsubishi Corp & Gateway Distiparks. Fresh and Healthy Enterprises learning how to write a history essay has set up a 100 % subsidiary for cool chain logistics with a short capacity of 12,000 tonnes at Rai in Sonepat, Haryana and provides further plans to broaden it to over a dozen cold storages in the near future, Apollo-Everest Cool Alternatives a joint venture formed by the Delhi-centered Apollo Tyres and the Spire Band of Canada have plans to create 15 temperature-controlled warehouses in India with an purchase of $250 million; Adani Agrifresh among the Top retail chain purchased its retail business to start a cold storage supply chain for vegetables and fruit in over twelve top cities of the country.
Cold Chains in Different Industries
Special top features of Indian Cold chain market for important item segments are given in the table below.
– Amounts upto 90% of existing cold storage space capacity
– Great outsourcing demand.
– Seasonal-Large variation in
peak and non-peak demand.
– No dominant person among service providers
– All the industry is definitely captured by Snowman and RK Food-both pan India players
Fruits & Vegetables
– Predictable, Stable and High demand throughout the year.
– No dominant participant in the market.
– Market dominated by Domestic players. More than 60% demand achieved by small/ local/regional players
(Butter & Cheese)
– High demand throughout the year.
– Major players not very active
– Significant share of small players
-Seasonal Popular in peak season
– High growth
– 35% demand shared by small players
The major products are Potato, apple which contributes Rs 16050 million to the chilly chain market.
Other products are:
Imported Fresh Fruits & Vegetables
Exports By sea (Seafood, Meat, Poultry, Fruits & Vegetables)
Meat & Poultry (domestic)
Emerging segments (flavoured milk/yoghurt)
Cool Chain Transportation
Source: Global AgriSystem Ltd
Cold Chain in Pharmaceutical Industry
In the pharmaceutical source chain, the chain members have different requirements to meet up for materials handling, warehousing, storing, product packaging and distributing the pharmaceutical goods which are delicate to the environment. The perfect pharmaceutical cold chain should be capable of working with changing product portfolios, certain requirements once and for all Storage and Distribution Procedures, current regulatory trends, quality management, risk assessment elements, and temperature monitoring.
Pharmaceutical cold chain developments:
Manufacturers are being placed accountable for any defects in the merchandise in cold chain supervision. E.g. determining, maintaining and monitoring temperature levels during shipment.
The administration and control of environmental factors over the supply chain is being given higher emphasis. E.g. Vacuum packaging , Transportation selections in chilly chain, etc.
Temperature control and monitoring is being employed to lessen the risks and increase efficiency. 36% of all major and critical defects authorized by the Medications and Healthcare Goods Regulatory Agency during 2003/2004 were related to the control and monitoring of storage and transportation temperatures.
Heightened priority of patient safety due to the existence of multiple uncontrolled variables in the distribution procedure, developing an appropriate temp and humidity monitoring program is essential to protect the standard of environmentally sensitive pharmaceutical product and ensure patient safety.
Increased Need for the Pharmaceutical Cold Chain
In 2003, out of the $400 billion products, 10% were biopharmaceuticals.
The biopharmaceutical market’s compound twelve-monthly progress rate(CAGR) was 21% that was notably more than the approximately 11% CAGR of the traditional pharmaceutical market in the period 1999 to 2003The biopharmaceuticals are highly sensitive to heat range. This increases the importance of the pharmaceutical chilly chain.
The standard types of procedures normally adopted in the cold chain are:
Information of shipping configuration and the sort of packaging used, ought to be declared.
In the labeling part, the storage rules and particular precaution that needs to be taken should be included.
Mode of transportation should be approved by particular authorities.
The finished products in the shipment happen to be verified to check on any tampering or damaging of the containers.
The manufacturer should have the evidence that certain requirements for shipping e.g. temperature control have been fulfilled.
Some important areas of Pharmaceutical wintry chain are:
Some leading logistics companies and carriers that have advanced infrastructure e.g. electronic digital tracking, on the net export documentation provide can assists the shipping and delivery party.
In cold chain, the application of refrigerated warehouses, refrigerator trucks, refrigerated containers, refrigerated ships and refrigerator automobiles is common.
Another important service required may be the insulated shipment containers or other specific packaging.
The role of Heat range data loggers and RFID tags can be to help monitor the temperature background of the warehouse or truck etc. plus the temperature history of the merchandise being shipped. In addition they assist in determination of the remaining shelf life of item.
The key part is documentation. There happen to be set of rules for each part of the chain to keep up proper records. Incomplete or Inaccurate paperwork in customs can bring about delays. So all the established protocols ought to be followed e.g. quantity of copies and other information details.
Quality Management Method (QMP) and Risk Evaluation Process (RAP)
Factors to be considered for the QMP can include but are not limited to the: Organization, roles and responsibilities, process, trained resources, implementation program, compliance modification control, on-time delivery of right merchandise, quality metrics, constant enhancements, and monitoring client satisfaction.
Areas to be assessed in RAP contain: Compliance with regulations, guidances and quality specifications product account, physical and chemical stability environment (temperature
Mapping, temperature control, heat range and humidity monitoring), method of transportation (ground, atmosphere, sea), shipment destination (domestic, export), package (main and secondary), people (standard operating procedure, training, communication, documentation, recognizing, addressing, correcting adverse events, and change controls).
TMS- Temperature Monitoring System
The how to write a theme essay for college determining factor of a heat monitoring system (chemical, mechanical or electronic) may be the amount of details required. Generally the temperature monitor tools is the main part of the Cold chain system. If the suppliers are experiencing the infrastructure for high quality checks, the firm could use more technical, precise and sophisticated temperature data loggers which provide all the relevant information in recommended format. The data includes record of heat and humidity including period and date as well as specific identification.
All equipment employed for recording, monitoring and preserving temperature and humidity circumstances should initially get validated and thereafter calibrated regularly. The certifications are given by the leading suppliers in the market indicating the grades about the product quality required for the monitoring.
Cold Chain in Floriculture Industry
Flowers are perishable in nature. It really is observed that small heat range differences can result in very significant flower quality changes. There is a negative effect on the useful lifestyle of the plants with the increase in temperature in transportation. It is further affected by upsurge in the duration that the flowers were subjected to such high temperature. In India, due to inadequate cold-chain operations, the postharvest losses are incredibly large. The estimated losses are 40%, depending after the commodity at numerous stages. Flowers should be cooled to temperature ranging in 330 F to 410 F without any delay. Higher temperatures not merely reduce the useful-life but also improve the respiration-rate. It is discovered that the respiration of slice flowers increased exponentially with upsurge in storage temperature. Proper cold-chain operations of flowers improves the flowers’ marketability. Cold storage enables top quality stems to be kept for longer intervals before sale and ensures that the flowers nonetheless have an excellent shelf existence(called as vase life ) when they reach the market-place.
Cold Chain in Dairy Sector: Amul Case Study
Life cycles of various product lines of Amul will vary, for example items like milk, lassi and flavored milk has to be refrigerated from procurement, processing to end distribution stage. Milk is definitely procured from regional cooperative societies or agreement procurers. Pasteurization, refrigeration and packaging are completed in regional centers itself. These centers are completely owned by Amul occasionally and outsourced in other areas. Thirty to forty SKU’s of packaged milk, flavored milk and other similar items are supplied in plastic material crates filled up with ice for end mile distribution to the nearest marketplace i.e. various areas of cities, suburbs and possibly to rural areas. Since crates happen to be little loading and unloading is done manually, so it will not require complex tools. Empty crates are cut back as a part of Reverse Logistics for following day dispatching of milk. For ice creams, Srikhand, Butter and different such goods High-Tech refrigerated transportation system is used. Amul is first of all mover in India for tetra packed dairy food. It sells these under the brands Amul Sakthi and Nutramul. It has also introduced products like chilly coffe, butter milk and Lassi in tetra packs. These have a life time of six months to 1 year. These do not require cold storage facilities and provided in corrugated boxes in combination with stretched plastic. Amul has the major cold storage network in India (more than 18000 facilities).
Challenges & Issues
Cold storage market is facing following challenges
1. Insufficient Uniform Technology standards: There is insufficient uniform digital and bar code criteria. International standards vary broadly, and domestic benchmarks are almost as disparate, creating unnecessary paperwork and profit-taking delays.
2. Consolidation: The pattern toward consolidation sprung from the developing tendency for warehouses to act as shipping venues, along with the entry into the market by warehouse holders. Though consolidation spurred overall market growth, smaller warehouses own struggled to compete with larger industry players.
3. Capital Purchase and Technology: The cold chain Storage and logistics is definitely a capital-intensive industry (investment for refrigeration tools and property) with a big capacity cold storage space chain has a high payback period of around five years.
4. Incumbency positive aspects independent of size: Existing players like Snowman have got built expertise by functioning in this market for longer periods in time & use imported hi-tech equipment, which new entrants find difficult.
5. Economies of scales: It is just a largely untapped, fragmented & packed with unorganized small size players. No player has attained economies of scale and so a new a new entrant with deep pockets can enter this industry but still be at a significant cost advantage.
6. Human being Capital and Domain Expertise: It needs skilled recruiting for operating and controlling the chilly storage facilities. Lack of technically qualified employees is also among the hindering factors for Indian cold storage area industry.
7. Lack of logistical Support: Small territory holdings remain a challenge because it requires multiple farm gate collection centers. Likewise Fragmented cold chain industry hasn’t encouraged the development of chilly logistics for horticulture manufacture. Standard refrigerated systems are inefficient and badly designed. Also, domestic industry for fresh perishable produce is underdeveloped.
8. Uneven Distribution of chilly stores: Available capacity is mostly centered on single commodities. Issue of financial viability can be their due to seasonality.
Other pertinent issues are
1. Erratic power supply
2. Large operational costs and low yield versions.
3. Great insurance/ Risk insurance coverage premiums.
4. Large gap in demand supply conducive to little unorganized providers.
5. Government tax and commercial regulations.
Role of Government
Government policy works as a catalyst in this sector. Following are the salient features of Government policies for cool storage sector:
1. Encourages Investments – Agri food is determined as priority sector.
2. Encourages arranged sector- ECB path opened, Import duty calm.
3. Liberalizes Marketing Norms- Concentrate on increased retail, improved source chain.
4. Rationalizes Tax Laws- Going towards uniform VAT/GST.
5. Provides Grants and subsidies- VG financing, Grants, Infrastructure status
6. Eases foreign expense- 100% FDI in food sector. ECB for cold chain.
Government of India Initiatives
1. Excised waved on F&V, meat preparations, ice-cream, additional RTE food mixes.
2. Automatic acceptance for 100% foreign equity in processed food items. External commercial borrowing opened (except in beer, alcohol etc.)
3. Priority lending status; Duties decreased on imports; Zero provider tax on installations.
4. EOI floated for 30 mega foodstuff parks- allocated US $ 1.02 billion by 2012. Aim of the scheme can be to provide forward and backward linkages aswell develop dependable and sustainable supply chain.
5. GOI initiating National Highway Development Method and partnering with Indian railways to determine wintry chain infrastructure. Indian railway is likely to invite private parties to perform refrigerated container trains for transporting agricultural products in the united states.
6. Integrated food regulation(FSSA) notified and prepared for implementation.
7. Task pressure on Development of cold chain established and countrywide centre for Cool Chain Development (NCCD).
In Budget 2011- Cold chain Industry
Industries like fertilizer and cold-storage space chains will benefit, with capital investment in fertilizer being cured as infrastructure expense. Hyderabad based mostly express distribution and offer chain solutions company Gati logistics has explained the endowment of infrastructure position to cold-storage chains & logistics in the Budget will help in realizing its plans to build cold self storage in the united states. Gati is setting up 10 cold storage plants over the India at an purchase of about Rs 200 crore in the arriving four years.