The Outbound Supply Chain
A Case Study in Improving Service and Reducing Waste
Turning the Dial event- Perth 2023 Adam Wade
Logistics Quality & Sustainability Leader Bega Dairy & Drinks
The Outbound Supply Chain
A Case Study in Improving Service and Reducing Waste
Adam Wade
Logistics Quality & Sustainability Leader Bega Dairy & Drinks
Overview
1. Setting The Scene 2. Issue
3. Action
4. Findings
5. Outcome
6. Conclusion
Setting the Scene
• Produce some of Australia most iconic brands
• Significant Consignor of Chilled Freight
• Retail, Route & Foodservice
• Bar Loaded Trailers
• Direct & Cross Dock Loads
Do Not Load Do Not LoadSetting the Scene
Distance Travelled
VIC to SA –728km VIC to NSW –963km VIC to QLD –1669km VIC to FNQ –3222km VIC to WA –3430km VIC to NT –4045km
Weather Conditions
Temperature –0-50 Celsius Relative Humidity –Up to 90%
National Distribution Centres
Manufacturing / Distribution
Issue
1. As a business we are increasingly being challenged to guarantee and extend shelf life by a broad spectrum of our customer base. Mechanisms to achieve this include heightened temperature compliance processes
2. A number of deliveries in the Oct 2014/May 2015 period did not meet our internal temperature compliance standards and resulted in a number of service issues
Action
1. Collaboration with the Customer
I. National Study
II. Single Use Data Loggers III. Three Months Data
Action
2. Industry Consultation – Brisbane Truck Show
I. Refrigeration Experts II. Trailer Manufacturer
III. Australian Standard (AS 4982)
Action
3. Intensive Testing
I. VIC to QLD II. 4 Trailer Loads
III. Multiple Refrigeration Settings IV. Product & Air Temperature V. Chutes v Non Chute
Action
4. Independent Trailer & Product Testing
I. Refrigeration II. Trailers
III. Product IV. Wrapping
Images by Supercool Asia Pacific Pty Ltd
Findings
1. Three Month Study
Considerable variability in conditions our product is being exposed I. Cycle Sentry / Continuous
II. Set Point III. Cross Dock
IV. Unload at Customer V. Chutes
Findings
2. Brisbane Truck Show
Australian Standard 4982 (AS 4982)
I. Set up by the refrigerated freight industry and in existence since 2003 to provide guidance on the construction and commissioning of trailers in Australia yet there is little recognition awareness
Findings
3. Intensive Testing
I. Temperature inside the trailer can vary considerably II. Load restraint needs consideration
III. A continuous airflow setting on the fridge makes a difference
Findings
4. Independent Trailer and Product Testing
I. The return air temperature is not a true indicator II. Product characteristics
III. Thermal efficiency of a trailer IV. Packaging and wrap play a role
Images by Supercool Asia Pacific Pty Ltd
Outcome
Policy
1. Clearly defined refrigeration policy for carrying Bega freight 2. Defined future state for vehicles carrying Bega freight.
I. Independent Monitoring
II. Minimum Thermal Efficiency – K Value III. Roof Chutes
Further Research
1. Refrigerated rail containers
Industry Change
1. Actively engaging industry to raise the standard of refrigerated trailing equipment in Australia
Outcome
Key Achievements Year on Year
1. 85% Reduction in delivery complaints related to temperature
2. 77% Reduction in costs associated with temperature related waste 3. 62% Reduction in delivery issues related to temperature.
4. Collaborative freight arrangement
Conclusion
1. Do you understand the risks in your supply chain?
2. Do you have the policies & procedures in place manage those risks?