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Lectures Food Logistics Management
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Lectures of the Food Logistics Management Cours (ORL-31806)
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Global Supply Chain Management; Chapter summary
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Summary Global Supply Chain Management VU IBA
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TRL3709 Prescribed Book - Supply Chain Management: Strategy, Planning, and Operation, Chopra, S. 7th Edition
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http://vietnamsupplychain.com/assets/files/55629f9567bbf50.pdfMonday 16th of March – 14:00
Challenges and characteristics of agri-food supply chains
- Right product
- Right quality
- Right quantity
- Cost efficient
- Sustainable
Biobased products, several parts of a plant can be used for biofuel for example. Food can be used for
non-food, like fuel. Some are perishable, some are non-perishable.
Distinctive features of agri-food supply chains
- Perishable: need for cool chain
o Chilled or frozen state
o Cooling electricity also very important!
o Different products, different optimum temperature range
o Too much food wasted! 50 kg per persoon per jaar (in Netherlands)
- Supply uncertainty
o Uncertainty and variation in production (in dutch greenhouse for example)
o Quantity, quality, lead time, price
- Demand uncertainty = consumers are expecting the food being in a good quality, not in a
specific season, but whole year.
- Product/market diversity
o High product differentiation market demand, logistics requirements, initial quality
Different distribution/retailing channels
- Traditional retail markets VS modern retailers
o In which higher quality?
Quality Controlled Logistics
Getting insight in variability variation in production or transportation
- If temperature is different, shelf life is different for example
Quality controlled logistics is that part of supply chain management that plans, implements, and
controls the efficient, effective flow and storage of food products, services and related information
between the point of origin and the point of consumption in order to meet customers requirements
- Quality requirements and logistics requirements
- Should plan the activities
- From distribution centre to retailers
Physical process
- Quality control
- Logistics control
QUALITY CONTROLLED LOGISTICS
1. Consumer preferences & product acceptance periode
a. Every product has quality attributes. By consumer research, the quality requirements
can be investigated. There are different groups of consumers! Some are sensitive to
quality, and some aren’t.
, 2. Critical control points for quality (CQP) and logistics (CLP)
a. CQP is a point in the chain, where variation in product properties or processes results
in unacceptable and or irreversible deviations in required quality
b. CLP (how much do we need to harvest, to go to the next activity (process))
3. Product quality measurement and quality prediction
a. Measure and predict dynamic quality development. Predict the ripening or quality
decay development under different environmental conditions
i. Quality decay models how the quality is changing, depending on
temperature/environment (also product dependent)
4. Data logging and exchange of information
a. Monitoring environmental conditions allows prediction of shelf-life
i. Weather stations, wireless sensors, dataloggers for items
5. Local dynamic/adaptive logistics and quality control
a. Adjust processes, planning and control
i. Change temperature of warehouse, change the presentation of products,
speed up logistics processes
6. AgriFood Supply Chain Management it’s about coordination
Levels of cooperation
1) Physical integration crates, boxed (load units)
2) Information integration barcodes (share order information and bills)
3) Control integration Just in time deliveries
4) Organisational integration multiple actors (change roles and functions in the chain)
Tuesday 17 March – 15:50 – Food Quality from farm to fork
Identification of Critical Quality Points (CQP’s)
Quality controlled logistics
- Products on right time, right place, right quality many decisions should be taken into
account on product quality (decay, way of packaging) AND logistics (costs, way of transport)
Product flow and information flow
- Product goes from left to right
- Information goes left to right and right to left
Food quality = meeting or exceeding customer and consumer expectations
Critical quality points (CQP)
- A point in the process where variation in product properties and or process results in
unacceptable and or irreversible deviatios in required quality attributes of the final product
- Own definition: point in food production process to control quality decay preventing or
eliminating food quality decay necessary to deliver high quality in food supply chains
QACCP method (quality analysis critical control point)
- Tool that support supply chains in taking technological and managerial actions to realise
consumer-oriented quality performance
Step A: Food quality attributes
- Intrinsic attributes (inherent to phycial product)
- Extrinsic attributes (not inherent, production system/marketing or communication)
o Influence your consumer perceptions
, o When u start eating: in the mouth physical processes psychological processes in
the brain!
Five decay processes can happen in your product and you need to take these into account
- Microbiological: growth bacteria
- Chemical : non-enzymatic (maillard)
- Biochemical: enzymatic reactions (browning of an apple)
- Physical: migration of water (drying, softening)
- Physiological: respiration in plants products)
Step B: identification of the supply chain and production process
- Supply chain/production process
Step C: Technological and managerial factors
- Food dynamics (FD)
o factors inherent to the product itself (stability, composition, enzymes, initial bacterial
load)
o Or factors inherent to the packaging (type, flavour scalping, inkt migration)
- Technological conditions (TD)
o Food processing equipment
o Actual food processing parameters during processing
o Packaging conditions
o Food plant and equipment conditions
- Human dynamics (HD)
o Disposition to quality (quality knowledge, personal quality standard)
o Ability to quality (skills and competence/availability of time)
Influences the quality behaviour of employees in food supply chains
- Administrative conditions (AC)
o Trust among stakeholders
o Commitment to work as integrated supply chain
o Level of collaboration
o Decision-making system
o Consumer driven or not
o Cultural differences
Control: 4 activities
- Measuring: product properties and process
- Comparing: actual measurement with the standard (specifications)
- Determining: which actions need to be taken (is there a difference between actual and
control/standard)
- Taking: necessary corrective actions to ensure the final quality will meet or exceed
customer/consumer needs
Less variation in quality attributes
- Raw materials
- Methods and measures
- Machine and equipment
- Calibration procedures
- Employees
o What is the difference between structural variation or incidental variation?
Structural is a little out the target value
, Incidental is way out of the target value
Two types of control circles
- Feedback control circle 4 activities are conducted after the trouble has occurred
- Feedforward control circle 4 activities are conducted before the trouble has occurred
In order to minimize variation factories do inspections, this can be done
- Off-line: take a sample and measure at the laboratory
- At-line: take a sample and measure at the line (viscocity for example)
- On-line: sample is taken and measured automatically
- In-line: automatically measuring of the product flow (probes for example)
- Non-invasive: no contact of product with equipment infrared thermometer
Step D: identification of critical quality points
- Which points are really critical?
- Need to know the impact of the factor !
Step E: establishment of monitoring these points
- Monitoring activities
o Product parameters
o Process parameters
o People paramters
o Organisational parameters
Step F: Establishment of verification activities
- Validating = check in advance the effectiveness of the planned activities
- Verification = check afterwards
- Verification can be done internal or external audits
Step G: embedding into the existing QMS
- Quality management systems refers to ALL ACTIVITIES that companies use to direct/control
quality
Lecture 3 – 18th of March – 14:00 - An overview on main concepts in supply chain management
What is a supply chain?
- A supply chain is a goal-oriented network of processes and stock points used to deliver
products
o Stock points = locations in the supply chain where inventories are held
o Processes = individual activities involved in producing and distributing products
Objective of a supply chain
The objective is to maximize the overall value generated
ROI = return on investments
ROI = profit/investments
Profit = revenue – costs
How to resolve conflicts?
- Trade-offs!
- Supply chain strategy
- Supply chains compete on the basis of: cost, quality, time, flexibility
- Being stronger in one aspect, others will suffer!
o Low cost for example, will be less quality
- Quality/speed/flexibility (y) against cost (x)
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