In this session, speakers Frank Morgiewicz, vice president and general manager of logistics services at ArrowStream and Rick Burden, director of transportation and logistics at Nature Ripe addressed new techniques in temperature management and best practices in damage reduction.
Morgiewicz presented a case study on Wendy’s, who experienced “alarmed hot loads” during the spring and summer months each year; these rejected hot loads were mostly affecting frozen products such as chicken, fries and produce. Because of these hot loads, Wendy’s experienced service level degradation, emergency deliveries and additional costs.
A cross-functional team comprised of internal stakeholders, DC’s, suppliers and supply chain experts was created to review the failed shipments from supplier to the DC and determine the cause of these hot loads.
The majority of the issues identified were between specific supplier locations and D.C. locations, so the team traveled to each of these locations and reviewed the SOP’s for shipment. Also, extra temperature monitoring devices were included to get a true picture of the total product condition during shipment.
The team found that there were multiple causes leading to these hot loads, including: tight product load and receiving temperature specifications; inconsistent carrier equipment checks, incorrectly loaded trailers, inconsistently handled alarmed loads at the DC, and inconsistent disposal of rejected loads, leading to potential product being put back into the market.
These results revealed that the SOP’s for successful deliveries were not being followed consistently, and a renewed focus on the training, involvement and accountability of all stakeholders was emphasized. This focus on training has led to a steady decrease in the number of overall rejected hot loads.
“It was just a matter of reverting back to basic SOPs, no new technology was involved.” said Morgiewicz.