Fresh from the farm

Supply chain management for perishable food When it comes to moving perishable food, transportation must be fast and error-free. As competition grows, food businesses face competition and pressure to reduce costs and increase sales. According to a recent report published in foodquality.com, perishable foods constitute the single largest category in a conventional supermarket chain, contributing to approximately 35 to 50 per cent of sales and 40 to 55 per cent of gross profits.

The main difference between perishable and non-perishable products is their delicate nature and sensitivity to temperature. "If you want to develop a supply chain around these types of products, then it is essential that all the product specific requirements are taken into consideration when handling them throughout the supply chain. Handling perishable products in a supply chain environment is similar to any other products done correctly.

Start by analysing the product characteristics, develop procedures to handle the products and than ensure that you follow through. The supply chain for perishables will not be more complex to handle than any other supply chain," says Fredrik Lindblad, business manager — 3PL, Logistics Services.

The process behind getting perishable items, whether it is fruit, vegetables, flowers or frozen goods from the source to the consumer is a complex one. "Whatever product we move whether it is fruit, vegetables or meat, we flash freeze them to a temperature of minus 18 degrees Fahrenheit, which means that they're taken to a low temperature in a short duration of time. This instantly increases their preservation time. The key to retaining the freshness of the product is to constantly maintain this temperature. Even the delivery trucks we use to deliver to supermarkets are equipped with reefer containers that are low temperature containers. Most supermarkets in the UAE have ideal cold storages, so the supply chain management is able to function effectively," says A.K. Srikanth, Group Marketing Manager, Al Kabeer, a company specialising in frozen foods.

Cold storage

The only problem producers of perishable products face are with the small and medium-sized retailers. "The big improvement can happen in maintaining the right temperature in chillers inside the smaller retailers because that is the place where variations can kill the freshness of the products," says Vipul Bahl, Business Head – UHT, Al Safa Dairy.

The key component in getting the products fresh to the consumers lies with cold chain efficiency and efficacy. "We need to maintain the right temperature in all the components of chain right from cold stores to delivery trucks and then finally in the chillers kept in store. Any variations in the temperature in any of the components would make the products lose their freshness," says Bahl.

Innovations

A number of innovations over the years have made the supply chain management process smoother and quicker.

"All processes within a cold chain management system are related to achieving and maintaining minus temperatures in the quickest time without a high cost involved. Earlier the preservation time of a frozen product was two days, now it has been extended to an year-and-a-half. In some products, freezing can lead to spoilage or the formation of ice crystals, but technological changes have effectively addressed these issues. The current technology we now employ is spiral freezing, which helps in uniform freezing. The future lies in cryogenic freezing but the process is still being modified and researched," says Srikanth.

"Innovations happen in components of supply chain by way of storage of products. Also, with accurate forecasts we can ensure that consumers find only fresh products on the shelves which have been produced on the same day. We believe in maintaining the correct inventory of short-life products hence avoiding past dated products on shelves," says Bahl.

According to Bahl, companies use effective supply chain management as a tool to bring down costs by fewer expiries and damage, thereby passing on the benefits to consumers. Currently, Dubai has a superior supply chain management system for perishable goods in place. "There are no electricity fluctuations here as there are in some other parts of the world with erratic power supply, so maintaining cold temperatures is not an issue. Also as no major crops or fruits are grown here, any new technology in the cold supply chain management segment is bound to make an appearance first in the Middle East market," concludes Srikanth.