Submitted by Sunday Fasina Title: Cold Chain Management — A comparison of Asparagus and Mangoes Logistics


Lecturer’s Review


Table of Contents Section Page(s) Section 1: Introduction 4 4 1.1 Company Background 2 .

the logistics of Cool Cargo asparagus cold chain and Kenya’s mango supply chain will be examined. The connection between theories and practice will be analysed. theories and/or techniques for analysis 5 1.1.2 Aims and Objectives 1. In the light of this. 0 Introduction This project came about as a result of the need to examine learnt theories during this module and how they can be applied in practice.2 Value Chain Analysis: A case study of Mangoes in Kenya 6 2.1 Asparagus from Thailand 2.3 Concepts.3 Comparison of Asparagus and Mango Supply Chains 6 Section 3: 6-7 Conclusion (and recommendation) References 7 1. 3 .4 Data Collection Method 5 4 Section 2: Case Study 5 5-6 2.

The rail mode may not be preferred where the risk of damage is high due to multiple handling issues but bulky/heavy loads may be better suited to rail mode. Jeffs & Hills. theories and/or techniques for analysis 1.31 Intermodal Transportation Some freight needs to be carried by using different modes of transportation such as road. importance of materials to production. Waters. reputation and stability of carrier. These companies are about 22 in number.333-344. p. It has expertise in providing the needed logistics for moving perishable vegetables through long distances and in varying weather conditions to the final consumers in-tip-top condition.329. air. haulage distance. 1. 1. cost and flexibility to negotiate rates. They have to compete with two supermarkets—Nakumatt and Uchumi—which sell mango to the upper income consumers. lessons that can be learned and adopted by Kenya mango exporters from the asparagus supply chain will be highlighted. trade-off between cost and service.38). the volume of materials. marine.Cold Chain serves to bridge the distance separating different regions of the world and provides practical demonstration of trade globalization with the application of technology for keeping goods undamaged through temperature control. 1990. p. The choice of modal split depends on the physical nature of the product. 1.1 Company Background 1. I would examine the nature of the asparagus and mangoes business and the special problems and challenges they pose for logistics. customer requirements. Croucher & Baker. schedules and frequency of delivery and availability of special facilities (Rushton.3 Concepts. value of materials. security. 4 .2 Aims and Objectives The aim of this project is to identify how improvements in Kenya’s mango sourcing and infrastructure can boost mango exports as achieved by Cool Cargo with the asparagus value chain. I will also identify the solutions proffered by Cool Cargo to the cold chain challenges.11 Cool Cargo: This company’s main business is to provide a range of cold chain and operational logistics solutions. rail. delivery time. 2003. 1. Finally. mode availability and reliability. p. 2010. loss and damage. To achieve this aim.12 Kenya’s Mango exporting companies: These companies buy exotic variety of mangoes from the farms located in various districts and package them for exports.

2005.39. buying. assessment of the attributes of the different transport mode characteristics. 1. International trade requires that an organisation must develop the capacity to distribute its product competitively across external boundaries into the global market. customer characteristics.86-87). p.38) to ensure efficient modal split will be discussed. Transaction channels is concerned with the non-physical aspect of the product transfer such as negotiation. p. ready availability and service reliability (Jeffs & Hills.32 Global Distribution There are two global distribution channels for products. consignment factors and. selling and product ownership at various points in the distribution systems. Distribution’s role as a key drier of overall profitability should be well considered by a firm because of its direct effect on cost and customer experience (Chopra & Meindl. p.253). 2011. 60.33 Supply Chain Integration The concept of integrates supply chain rests on the planks of coordinating and managing the flows of information and material between source and user as a system (Christopher. They are physical distribution channels and trading or transaction channels.42-43) 5 . cited in Power. 1. p. p.50-61). procedures standardization. 1998. reliable quality and fewer inspection (Waters. physical nature of the product and other logistics components. market and consumer (Rushton. better customer service resulting from lead time reduction and faster delivery. The choice should be one or a combination that fits the product. Benefits derivable from integration includes material flow improvement. The logistics manager has the choice of own-account channels or use third party. shorter lead times and better service level are achieved through the establishment of a relationship between customers and supplier. 1990. 2010. 2010. Croucher & Baker. Physical distribution is the method and means used to physically transfer or distribute products from points of production to retailers and consumers. When the objectives of inventory reduction. p.229). p. 45) How well this concept is used by Cool Cargo considering external factors. p.customers’ geographical location may rule out some modes especially if the location is not well served by road hauliers or the quantity of goods to be sent is small. 1990. performance improvement. 2003. p. trade-off between cost and service (Rushton. quick response to changing conditions.333-344 and Jeffs & Hills. integration is regarded as complete (Parnell. urgent order/consignment by customers may require the use of air transport. 2010. Croucher & Baker.

product losses are high. Mangoes are bought directly from farms or through middlemen in various districts and packaged for exports. 1. and finally by truck to the various supermarket distribution centers. to the airport cargo terminal until loading into the aircraft. Mango logistics is faced with many challenges such as unreliable supplies and inadequate 6 . Due to poor post-harvest handling techniques and lack of storage facilities. the FAO report titled “Value Chin Analysis: A case study of Mangoes in Kenya”. These companies are about 22 in number.2 Value Chain Analysis: A case study of Mangoes in Kenya In Kenya. Because of the loading and the unloading inherent in its movement through the chain. handling difficulties in other to meet customers’ requirements. Mode of transportation includes trucking by road from the pack house to the cargo terminal.4 Data Collection Method The data for this project were collected from the media provided for this module for the case study entitled ‘Asparagus from Thailand’. there are about 22 companies engaged in the mango export business. 2.0 Case Study 2. the vegetable stands the risk of being exposed to warmth which may not meet customers’ requirement of freshness. maintaining and controlling temperatures. recommended module textbooks and lecture notes. by air to Europe. Overall. Supply chain collaboration as a concept that the exporters of mango in Kenya can use to improve their competitive advantage will also be x-rayed. Multiple handling of asparagus from the packing house until it reaches the DCs creates breaches in the required temperature which requires that solutions are provided at different nodes of the chain to control the temperature. asparagus supply chain has to overcome limited transportation modes.1 Asparagus from Thailand This case study is about the logistics challenges of moving asparagus from Thailand and the keeping it prime condition throughout the chain which lasts between 24 to 48 hours to the UK. 2. Asparagus is moved through a cold chain right from the precooling at the pack house.1. The exporter have to compete with two local supermarkets—Nakumatt and Uchumi—which sell mango to the upper income consumers.34 Supplier Collaboration Suppliers across supply chain boundaries need collaboration by pooling resources together to dovetail with one another.

the marketing stage and the export stage. mangoes need to arrive in good condition in the market 3. There is. the varieties of mangos in Kenya are of the low-qualitylow-price type and airfreight costs are prohibitive 2. roads. adequate infrastructure and an efficient supply chain are required to meet customers’ requirements in the perishable goods business.infrastructure at the farm level.33 Product Value: Though asparagus is expensive. air transport facilities are available in Thailand to aid quick passage of asparagus through the different stages of the chain whereas roads leading to mango production areas in Kenya are bad which slows down the chain or brings it to a halt.34 Transportation Mode: Both asparagus and mangoes require intermodal transport split to be exported to the international market. therefore. Poorly developed transport infrastructure like the bad roads leading to production areas contribute to quality deterioration and low prices. a need for countries whose economic mainstay is agricultural produce to take advantage of trade globalization by 7 .0 Conclusion From this study it is clear that steady sources of supply. 2.3 Comparison of Asparagus and Mango Supply Chains The following characteristics of the two supply chains need to be examined to have an overview of the challenges. However. At the farm level. On the other hand.32 Infrastructure: Infrastructure such as packing rooms. Export constraints include inadequate post-harvest/husbandry control. inadequate sea freight facilities and high air freight costs. inadequate technology.31 Sourcing: While asparagus is produced all year round in Thailand providing steady supply source. the difference in the product values makes the choice of air transportation too costly for mango exporters even though like asparagus. solutions and lessons that can be applied to improve them: 2. 2. wrong varieties for sea freight. the length of production cycle and poor handling facilities. the challenges are mainly that of lack of clean planting material. mangoes are only harvested once in a year in some Kenya provinces leading to unreliable supplies. 2. its supply chain is effectively carried out with surplus.

D. (n.html (Accessed: 9 March. D (2005) ‘Supply chain management integration and implementation: a literature review’. Vol.. P.) ‘The Cold Chain’. [Online]. Available from: http://www. M. Available from: University of Liverpool/Laureate Online Education Blackboard (Accessed: 8 March. No.fao.ezproxy. (1998) ‘A practical guide to the cold chain from factory to consumer’.uk/content/pv766558h07t8820/ (Accessed: 11 March. NJ: [Online]. Supply Chain Management: An International Journal. & Hills.) ‘Value Chain Analysis: A case study of Mangoes in Kenya’. The Handbook of Logistics and Distribution Management.improving their logistics network in order to be competitive in the international market. 17. Englewood Cliffs. 2011) Vol. Food and Agriculture Organization of the United Nations Report. 2011) Jeffs. (1990) ‘Determinants of modal choice in freight transport’. pp. P. Available from: http://www. J. 252–263. & Meindl. 2011) 8 .L. Chopra. pp. [Online].. [Online]. 10. P. & Craig. Available from: http://www.4. & Baker. (2010) Supply Chain Management: Strategy.d.d. and Operation. 2011) FAO (n. S. “‘Asparagus from Thailand’.412-418 Cool Cargo (2009).com.html (Accessed: 8 March. (2010). case study from Logistics and International Trade Module [Online]. Croucher.liv. R. 4th Global ed. 2011) Fuller. Transportation.pdf (Accessed: 8 March. Planning. Available from: DOI 10. pp. Available from: http://people..hofstra.springerlink.1108/13598540510612721 Rodrigue. A. No. V.infolizer. in the international food industry". 4th ed. Kogan Page: London. References: Rushton. P. Emerald [Online].1.

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