Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.
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

747 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
  • Be the first to comment

  • Be the first to like this

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

×