A major challenge in the consumer products industry is supply chain management of temperature-sensitive products.
Consumers trust certain brands for fresh, high-quality food. After one bad experience with spoiled milk, meat, vegetables, or another temperature-dependent food, a consumer may quickly turn to a different brand. How can consumer products companies better deliver the brand promise of fresh, high-quality food?
SAP Leonardo for Consumer Products, Cold Chain Logistics Option, Can Help
The SAP Leonardo for Consumer Products, cold chain logistics option industry innovation kit can provide multiple benefits, including helping to comply with manufacturing quality regulations and minimize ingredient and food spoilage and the associated costs. There is the potential for fewer quality-related defects, returns, and financial penalties. And, a consumer products company is likely to experience improved yield and reduced rework.
Consider the salad kits that are currently in high demand in the United States. Most are cultivated in California and then shipped to various locations. That being said, the salad kits need to maintained a cold temperature to stay fresh and have good shelf life when they arrive at retailers. If the cold chain is compromised at any point, it could cause problems for the brand.
Life sciences and retail industries face comparable challenges and seek the same overarching objective from cold chain logistics solutions: prevent product spoilage. This explains the commonality of logistics applications and the use cases of SAP Leonardo for Consumer Products, cold chain logistics option.
With inbound logistics, the industry innovation kit monitors storage conditions to help ensure the product has not spoiled and is ready to be distributed to manufacturing or processing facilities. If, for example, a shipping truck’s air conditioning unit lost power, the driver would be immediately alerted to find a replacement truck or a refrigerated warehouse where the product can be stored.
During manufacturing or processing, a key variable is time out of refrigeration (TOR). SAP Leonardo for Consumer Products, cold chain logistics option helps ensure that TOR does not exceed the recommended limits.
The final step in the process is outbound logistics. Once the product has been processed and shipped to distributors, data on outbound shipments is monitored to help confirm on time shipping and detect any possibility of in-transit spoilage.
To recap, SAP Leonardo for Consumer Products, cold chain logistics option gives consumer products companies new insights into their supply chain. They can track temperature-sensitive goods in real-time and be alerted immediately if something has spoiled or is prone to spoiling. With this information, companies are better able to optimize production and reduce losses.