The True Cause of $17 Billion Cold Chain ShrinkUpdated 11.10.11 of the $17 Billion Cold Chain ShrinkThe True Cause
Introduction     The new Retail Grocer landscape:     •    Retail grocers are facing a tough,          new environment.   ...
The $35B Blind Spot     Wasted produce         •   One third of shipped produce is             wasted annually.         • ...
The $35B Blind Spot     Where does shrink begin?         •   At the store?         •   In the truck?         •   At the di...
The $35B Blind Spot     Shrink at the store:     •    Many grocers think waste due          to spoilage occurs after it is...
Digging Deeper: Shrink Starts in the Field     Shrink starts in the field     •   ~50% due to bad post harvest practices  ...
Truck-level Monitoring     Truck-level monitoring:     •    Typically uses one or two          temperature monitors per tr...
Truck-level Monitoring   Consider this example: a truck with 8 pallets…                                                   ...
Truck-level Monitoring                                                                  Status unknown                    ...
Truck-level Monitoring                                                              Status unknown                        ...
Truck-level Monitoring                                                              Status unknown                        ...
Implications        Sampling only one pallet results in a:        • 50% chance of rejecting entire shipment (100% waste)  ...
Intelleflex Solution     Intelleflex Solution     •   Achieves pallet-level monitoring     •   Powerful ROI at under a dol...
Pallet-level Monitoring     Pallet-level monitoring      ensures:     •    Quality and safety     •    Profitability     •...
Interested in Learning More?        To learn more about cost-effective pallet-level tracking and    addressing traceabilit...
Upcoming SlideShare
Loading in …5
×

The true cause of $17 billion cold chain shrink slide share

673 views
640 views

Published on

An overview of share shrink/waste occurs in the food cold chain and how retail grocers can proactively manage inventory and quality to improve customer satisfaction and profitability.

Published in: Business
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
673
On SlideShare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
9
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide
  • Each pallet has its own temperature history due to handling, harvest conditions, delays, weather, etcShrink only becomes visible at the store because visual inspection is a lagging indicatorDoesn’t fit
  • To illustrate further, in this example, you a have a 50% chance of rejecting the entire shipment, a 25% chance of assuming the entire shipment has 2 days of shelf life, and a 25% chance of assuming the entire shipment has 6 days of shelf life left. Yet, in all cases, sampling only one pallet results in waste or unsatisfied customers.
  • To illustrate further, in this example, you a have a 50% chance of rejecting the entire shipment, a 25% chance of assuming the entire shipment has 2 days of shelf life, and a 25% chance of assuming the entire shipment has 6 days of shelf life left. Yet, in all cases, sampling only one pallet results in waste or unsatisfied customers.
  • To illustrate further, in this example, you a have a 50% chance of rejecting the entire shipment, a 25% chance of assuming the entire shipment has 2 days of shelf life, and a 25% chance of assuming the entire shipment has 6 days of shelf life left. Yet, in all cases, sampling only one pallet results in waste or unsatisfied customers.
  • To illustrate further, in this example, you a have a 50% chance of rejecting the entire shipment, a 25% chance of assuming the entire shipment has 2 days of shelf life, and a 25% chance of assuming the entire shipment has 6 days of shelf life left. Yet, in all cases, sampling only one pallet results in waste or unsatisfied customers.
  • To illustrate further, in this example, you a have a 50% chance of rejecting the entire shipment, a 25% chance of assuming the entire shipment has 2 days of shelf life, and a 25% chance of assuming the entire shipment has 6 days of shelf life left. Yet, in all cases, sampling only one pallet results in waste or unsatisfied customers.
  • The true cause of $17 billion cold chain shrink slide share

    1. 1. The True Cause of $17 Billion Cold Chain ShrinkUpdated 11.10.11 of the $17 Billion Cold Chain ShrinkThe True Cause
    2. 2. Introduction The new Retail Grocer landscape: • Retail grocers are facing a tough, new environment. • Retailers are looking at new ways to optimize cold chain operations due to: - New regulations - Fickle customers SHM PowerPoint Template Guidelines 03.15.10Intelleflex PowerPoint Template GuidelinesChain ShrinkThe True Cause of the $17 Billion Cold | Updated 11.10.11
    3. 3. The $35B Blind Spot Wasted produce • One third of shipped produce is wasted annually. • $35 billion in perishable shrink. • Stores lose 20% of available perishable profit to shrink. • Reducing perishable shrinkage by 20% will increase total store profit by 33%. SHM PowerPoint Template Guidelines 03.15.10Intelleflex PowerPoint Template GuidelinesChain ShrinkThe True Cause of the $17 Billion Cold | Updated 11.10.11
    4. 4. The $35B Blind Spot Where does shrink begin? • At the store? • In the truck? • At the distribution center? • Earlier? SHM PowerPoint Template Guidelines 03.15.10Intelleflex PowerPoint Template GuidelinesChain ShrinkThe True Cause of the $17 Billion Cold | Updated 11.10.11
    5. 5. The $35B Blind Spot Shrink at the store: • Many grocers think waste due to spoilage occurs after it is received at the store. • Assumes uniform aging and shipment does not change from field to store. • If quality was compromised, grocers would have rejected shipment. SHM PowerPoint Template Guidelines 03.15.10Intelleflex PowerPoint Template GuidelinesChain ShrinkThe True Cause of the $17 Billion Cold | Updated 11.10.11
    6. 6. Digging Deeper: Shrink Starts in the Field Shrink starts in the field • ~50% due to bad post harvest practices $17 billion cold chain waste per year! Post Harvest Total Shrink Practices Other 0 10 20 30 40 SHM PowerPoint Template Guidelines 03.15.10Intelleflex PowerPoint Template GuidelinesChain ShrinkThe True Cause of the $17 Billion Cold | Updated 11.10.11
    7. 7. Truck-level Monitoring Truck-level monitoring: • Typically uses one or two temperature monitors per truck. • Does not monitor condition of all pallets – pallet level variation is significant and impacts quality. • Visual inspection is not adequate – it is a lagging indicator and identifies problems after they have occurred. SHM PowerPoint Template Guidelines 03.15.10Intelleflex PowerPoint Template GuidelinesChain ShrinkThe True Cause of the $17 Billion Cold | Updated 11.10.11
    8. 8. Truck-level Monitoring Consider this example: a truck with 8 pallets… Status unknown 0 Days left 2 Days left 4 Days left 6 Days left Truck arrives at DC; condition of individual pallets is unknown SHM PowerPoint Template Guidelines 03.15.10Intelleflex PowerPoint Template GuidelinesChain ShrinkThe True Cause of the $17 Billion Cold | Updated 11.10.11
    9. 9. Truck-level Monitoring Status unknown ? ? ? ? 0 Days left 2 Days left 4 Days left ? ? ? 6 Days left One pallet is sampled. Status of other pallets remains unknown. SHM PowerPoint Template Guidelines 03.15.10Intelleflex PowerPoint Template GuidelinesChain ShrinkThe True Cause of the $17 Billion Cold | Updated 11.10.11
    10. 10. Truck-level Monitoring Status unknown 0 Days left 2 Days left 4 Days left 6 Days left Assumption: Entire shipment has 6 full days of shelf life left SHM PowerPoint Template Guidelines 03.15.10Intelleflex PowerPoint Template GuidelinesChain ShrinkThe True Cause of the $17 Billion Cold | Updated 11.10.11
    11. 11. Truck-level Monitoring Status unknown 0 Days left 2 Days left 4 Days left 6 Days left Reality: Only 25% of the shipment has 6 days left. SHM PowerPoint Template Guidelines 03.15.10Intelleflex PowerPoint Template GuidelinesChain ShrinkThe True Cause of the $17 Billion Cold | Updated 11.10.11
    12. 12. Implications Sampling only one pallet results in a: • 50% chance of rejecting entire shipment (100% waste) • 25% chance of assuming the entire shipment has 2 days of shelf life • 25% chance of assuming the entire shipment has 6 days of shelf life All cases lead to waste or unsatisfied customers due to poor product quality! SHM PowerPoint Template Guidelines 03.15.10Intelleflex PowerPoint Template GuidelinesChain ShrinkThe True Cause of the $17 Billion Cold | Updated 11.10.11
    13. 13. Intelleflex Solution Intelleflex Solution • Achieves pallet-level monitoring • Powerful ROI at under a dollar per pallet per use • Tags can be read without unpacking trailers or pallets • Reduces waste at the store by managing temperature from field to fork using FEFO SHM PowerPoint Template Guidelines 03.15.10Intelleflex PowerPoint Template GuidelinesChain ShrinkThe True Cause of the $17 Billion Cold | Updated 11.10.11
    14. 14. Pallet-level Monitoring Pallet-level monitoring ensures: • Quality and safety • Profitability • Traceability End Result: • Happy customers • Reduced out of stocks • Reduced overstocks SHM PowerPoint Template Guidelines 03.15.10Intelleflex PowerPoint Template GuidelinesChain ShrinkThe True Cause of the $17 Billion Cold | Updated 11.10.11
    15. 15. Interested in Learning More? To learn more about cost-effective pallet-level tracking and addressing traceability requirements, download the full whitepaper at www.intelleflex.com/cut-retail-waste or email info@intelleflex.com SHM PowerPoint Template Guidelines 03.15.10Intelleflex PowerPoint Template GuidelinesChain ShrinkThe True Cause of the $17 Billion Cold | Updated 11.10.11

    ×