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COLD CHAIN LOGISTICS

TABLE OF CONTENTS
INTRODUCTION..............................................................................................................................................2

CHAPTER I.......................................................................................................................................................4

1.1 WHAT IS A COLD SUPPLY CHAIN.................................................................................................................6

1.2 WHAT ARE THE COMPONENTS OF COLD CHAIN.........................................................................................7

1.3 WHAT ARE THE RELATIONSHIPS BETWEEN THESE ELEMENTS...................................................................10

1.4 IN WHICH BRANCHES OF INDUSTRY / ECONOMY THERE IS A NEED TO USE A COLD SUPPLY CHAIN..........11

1.5 THE CONDITIONS FOR CONTROLLING THE ADDITION OF THE ASSUMED TEMPERATURE IN COLD CHAIN. 15

CHAPTER 2....................................................................................................................................................17

2. CONDITIONS OF THE CLIENT’S SATISFACTION............................................................................................17

2.1 FACTORS INFLUENCING CLIENT SATISFACTION.......................................................................................17

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RECOMMENDATIONS....................................................................................................................................27

2.2 CUSTOMER REQUIREMENTS IN COOLING STORAGE SERVICES..................................................................28

2.3 ENHANCING CUSTOMER SERVICE............................................................................................................30

CHAPTER 3....................................................................................................................................................33

AUTOMATIZATION IN COLD CHAIN LOGISTICS...............................................................................................33

3.1 AUTOMATION OF COLD CHAIN LOGISTICS...............................................................................................33

3.2 COLD CHAIN INDUSTRY IN INDIA.............................................................................................................39

3.3. AUTHORS OPINION ON IMPROVEMENT OF COLD CHAIN QUALITY..........................................................42

CONCLUSION................................................................................................................................................43

LIST OF TABLES..............................................................................................................................................45

LIST OF DRAWINGS.......................................................................................................................................45

BIBLIOGRAPHY.....................................................................................................................................................45

INTRODUCTION

India is one of the largest countries in the world where the demand for logistics
services for cold supply chains is growing dynamically. India is also one of the largest
meat producers. In the years 2012 - 2015, there was an increase in the number of cold
stores at the level of 20%. Despite this growth, there is still a great demand for new
infrastructure allowing for the organization of effective refrigeration supply chains Cold
chain is a supply chain in which temperature is controlled and in this includes cold
storages, temperature-controlled ware housing facilities as well as temperature-
maintained transportation. Cold chains play a major role in enhancing the shelf life of
the product mainly agricultural products, chemicals, seafood, photographic films, and
medical items. Materials such transferred if often stated as cool charge which always is
of a highly perishable nature even, they are in cold storage. All the mechanisms applied
to ensure correct maintenance of temperature for a product from production stage to
customer use is included in cold chain. It's combination of science with technology and
correct procedures.

Cold chains are logical extensions of good supply chain practices in movement of
biological products and help to avoid situation which impact safety, quality as well as
efficacy of the product. To ensure service quality in cold chain it has to be constantly
analyses, verified, controlled validated as well adequate documentation also has to be
done. Each time any deviation happens in cold chain like non-maintenance of required
temperature it is stated as Non conformances or anomaly. This has to be investigated;
documented further correctives measures will need to be undertaken. Non-
conformances are a key issue related to cold chain and impacts customer confidence in

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the organization as well. Cold chain helps to reduce to product spoilage, provides
advantages in transportation, enhance customer satisfaction as well cut down cost.

The main goal of the thesis is to present the conditions related to the organization and
implementation of cold supply chains. In the diploma thesis also raises issues related to the
quality of customer service for cold logistic chains. At the time of writing the diploma thesis,
the greatest difficulties encountered by the author concerned the access to sources of
knowledge. The main source for the author was the review of web sources, which was
associated with language difficulties with regard to printed sources.

The first chapter contains the characteristics of a cold logistics chain. He describes its
essence and technological conditions of its functionality. The second chapter explains the
conditions for the quality of services in relation to the logistics of the cold chain. Five model
gaps model discussed, as well as the SERVQUAL model (service quality model) is used to find
gaps in the quality of services. In the third chapter, the author focuses on the automation of
activities in the refrigeration chain. There are presented solutions in the field of refrigeration
logistics, which partially replace human work. This chapter also presents a vision of further
development of this part of logistics in conditions that occur in India. In this chapter, the author
presents his own concept of further development and improvement of quality.

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CHAPTER I

CHARACTERISTICS OF A COLD LOGISTICS CHAIN

The cold chain indicates all activities involves in movement of products sensitive to
temperature through a supply chain relying on temperature controlling technologies ,
refrigerated packing as well as logistical planning to protecting the value of a product.
Apart from major main logistic service providers many other players has emerged with
special expertise refrigerated ware housing and transportation. Their ability to
understand the special needs of each customer, customers as well as environmental
aspects of the country helps them do logistic planning in a better manner. In several
niche markets in the logistics industry the segmentation on basis of cold chain
transportation has become a reality. 1 Carthy, M., & Villalba, R. (2018).

Cold chain covers production, service as well as trade involved in the movement of
products which are sensitive to the temperature. Cold chain failure or breach is said to happen
when during transit or storage the temperature has fallen below the temperature prescribed
for the product. This is particularly valid on account of antibodies in which a little variety in
temperature can either obliterate them or make them pointless. On occasion of a cold chain
disappointment it must be reported to authority for important activity. However, it is under
fifteen minutes those cases probably won't be an issue. Documentation of cold chain failures is
fundamental to avoid clients purchasing less effective items or drugs. The globalization has
upgraded the movement of merchandise across the globe expanding interest for cold chain
facilities.2 Uyen, N. D. T. (2016).

Cold chain is the supply chain with expertise in transportation, preservation as well storage
of cargo which has to be transported in a specific temperature. Cold chains have become
fundamental for transport of more delicate or essential freight through differing climatic
conditions. While a vital piece of cold chain is keeping up low-temperatures to protect short-
lived products, not all cold chain freight should be transported at below zero temperatures. In
winter, for instance, a few natural products and vegetables should be kept warm to protect
their surface or to guarantee they last more .The cold chain is an appellation applied to depict
the temperature conditions in which certain items should be transported or stored. Keeping up
the cold chain regulations ensures that items are transported and stored as per directions of
the producer. The usability of items relies upon their temperature being kept inside the range.
Each warehouse site or transport facility which is part of cold chain should have a temperature
controlling mechanisms and trained persons. This helps to reduce the spoilage, protects the
quality of products and ensures quality products to customer. Different products need different
1
Source: Carthy, M., & Villalba, R. (2018). New trends in cold chain monitoring
applications-A review. Food control

2
Uyen, N. D. T. (2016). Vietnam’s Economy is an Emerging Market
Standout. Bloomberg Business.

3
temperatures to maintain quality throughout the transportation process. 3 Singh, R., & Shabani,
A. (2016)

Comprehensive cold chain logistics System include warehouses used to store products in
temperature managed environment for transportation to the point of s an l e, Refrigerated
transportation vehicles used for primary transportation within the cold Chain. During this
transportation continuous maintenance of temperature is necessary. Any failure significantly
impacts the quality of cold chain process. Packaging is a value addition process which refers to
packing as per specifications related to each product. Warehousing refers to secondary storage
of products within cold chain in temperature controlled environment. 4 Castiaux, E. (2010

1.1 What is a cold supply chain


Cold supply chain indicates all logistics operations done to transfer perishable goods
from place of procurement to place of consumption under specified temperatures. This
helps to address quality concerns and also to reduce product spoilage. Bishara (2006)
defines cold chain as a “cold chain is a supply chain of perishable items ”. As per Bishar
cold supply chain has utility in food, pharmaceuticals as well as chemical industry. In
these common factors are special requirements akin with product especially with
temperature, light, and humidity and other definite specifications. Wen Zuang (2010)
indicates “cold supply chain is a systematic process that include comprehensive
management for ambient sensitive products that demand controlled environment along
with whole supply chain including stages of production, storage, transportation,
delivering, and selling to ensure the quality of the products essentially reducing cost
further preventing need for disposal of degraded products”. Cold chain is not just about
chilled products but also about maintenance of products with low humidity.

The special challenges as well as vitality of cold supply chain have made its stand apart
from normal supply chains. In logistics Glossary cold supply chain is defined as “in
order to keep goods in specific temperature to maintain quality, and cold chain required
special logistics whole network”. Special Dynamics plus challenges of cold supply
chain means chain needs to have differential characteristics. Mainly cold supply chain
deals with storage and movement of perishable items, medicines as well as biological
products. This necessitates infrastructural developments and more training of staff.

The cold storage industry consists of government as well as private organizations who will
be owners of temperature maintained warehousing facilities or owners of transportation
facilities. Third party logistics firms also operate which ensure the movement of products from

3
Source “ Singh, R., & Shabani, A. (2016). The identification of key success factors in
sustainable cold chain management: Insights from the Indian food industry. Journal of
Operations and Supply Chain Management, 9(2), 1-16.

4
Castiaux, E. (2010). An introduction to cold chain management. Journal of GXP
Compliance, 14(4), 19.

4
sourcing stage to end user. The layers in the logistics of supply chain surface storage: This
indicates warehouses designed for products which are sensitive to time. Refrigerated transport
this indicates vehicles used for transportation like trucks as well as containers.

The success of the industry is defined by proficiency in movement of temperature sensitive


items from the place of production to place of sale. Cold chain is mainly used for food,
pharmaceutical as well as chemical movements. Pharmaceutical products often require
temperature maintenance at 2 to 8 °C. The temperature needed varies as per products. For
certain pharmaceutical products even the humidity as well as oxygen and carbon dioxide levels
have to be monitored which increase the difficulties related to cold chain. 5 Castiaux, E.
(2010).

Failure can result in the loss of the quality as well as usability of the product. There have
been many instances in which the medicine which has been rendered too far off places in
Africa has become useless because of failure in cold chain process. Although people thought
they were getting prevention from diseases as the medicines was damaged it placed a huge
threat to their life, This gives an idea on importance of cold chain operation. The cold chain
practices are extension of good production practices which producers of biological and
temperature sensitive products needs to follow which is also supported by several legal bodies.
All things considered, the cold chain storage and transportation procedure must be approved
to guarantee that there is no negative effect to the Weller, viability or nature of the products.
The cold chain condition necessitates that all procedures that may affect the Weller, viability or
nature of the products must be documented. 6 Gligor, D., Tan, A., & Nguyen, T. N. T.
(2018).

1.2 What are the components of Cold chain


Cold supply chain has three main core component's integration action of these is
essential for safe transportation further storage of the products.

1) Transportation plus specialised storage devices


2) Trained staff
3) Effectual management procedures

The cold supply chain begins at the place of production. Primal stages of cold supply
chain process are sorting grading as well as pre-cooling further in supply chain product
has to go through various processing, storage as well as transportation before reaching

Castiaux, E. (2010). An introduction to cold chain management. Journal of GXP


5

Compliance, 14(4), 19.


6
Gligor, D., Tan, A., & Nguyen, T. N. T. (2018). The obstacles to cold chain
implementation in developing countries: insights from Vietnam. The International
Journal of Logistics Management.

5
place of consumption. The key aspects of a supply cold chain process are packing and
freezing, this becomes essential in food product movements. The Refrigerated products
movements using vehicles with temperature controlling mechanisms, cold ware housing
facilities, as well as refrigerated display facilities in shops. Technological elements
linked with cold chain include temperature controlled ware housing facilities, special
packing materials, special vehicles in which temperature can be maintained as
temperature sensors. In this transportation is more vulnerable due to the changing nature
of the products and lack of technologies for monitoring. 7 Bishara, R. H. (2006).

The cold chain has four essential parts, all of which must act perfectly to ensure the
secured transport and right stockpiling of cold chain items. The temperature controlled storage
and specific refrigerated warehouses where cold chain load is put away until the point when it
sent out to places where it will be consumed.

i. Temperature-maintained capacity - particular refrigerated areas where load is


secured until it's dispatched out to an end user.
ii. Temperature-maintained transport - using modified secured cold holders that
help transport stock by methods for air, roadways, or railways.
iii. Trained and industrious work force - that knows about the complexities of
taking care of sensitive cold chain load.

iv. Cold chain has to be overseen by a quality administration framework. System


ought to be measured estimated, controlled, recorded, and validated. 8 Source:
Zhang, H. (2011)

The general way to validate a procedure is by building an ever increasing number of


capabilities over one another to get to an approved state. This is finished by executing a
component qualification on the packaging segments, an operational qualification to show that
the procedure performs at the operational boundaries. Lastly a performance qualification that
exhibits that what occurs in reality is inside the points of confinement of what was shown in
the operational limits. Performing thermal testing can likewise help with approving the cold
chain. Affirmed test labs utilize environment chambers to reproduce encompassing profiles
that a bundle may experience in the conveyance cycle. 9 Zhang, H. (2011)

7
Bishara, R. H. (2006). Cold chain management–an essential component of the
global pharmaceutical supply chain. American Pharmaceutical Review, 9(1), 105-109.

8
Source: Zhang, H. (2011). Misc, (September 2017) 1. WU Qing—gang. The Current
Situation and the Counter measures of China Cold Chain Logistics Development. China Business
and Market,

9
Zhang, H. (2011). misc,(September 2017) 1. WU Qing—gang. The Current Situation and
the Counter measures of China Cold Chain Logistics Development. China Business and
Market, 2.

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Thermocouple tests as well as special temperature data loggers capture inside the product
to decide the reaction of the product to the test conditions. 10Repeat testing dependent on
qualification conventions is utilized to make a last capability report that can be utilized to
safeguard the design when evaluated by controllers. It is regularly best to have a person that
comprehends the standards of validation, when defending such procedures to a government
administrative body of any country. 0 Eden, M., & Calmer, C. (2010).

Transporters and logistics suppliers can help shippers. These suppliers have the specialized
capacity to connect with air craft’s for real status, create on-line export documentation and
give electronic updating. The utilization of refrigerated trucks, icebox, reefer ships, reefer
holders, and refrigerated warehousing is normal. Shipment in protected dispatching
compartments (insulated shipping) or other particular bundling, temperature data loggers and
RFID tags help screen the temperature variations of the truck and product, distribution center,
and so forth and the temperature history of the item being shipped. They additionally can help
decide the time frame for realistic usability. 11 Zhang, H. (2011)

Documentation is basic. Each progression of the cold chain needs to pursue built up
conventions and to keep up legitimate records. Customs delay happen because of off base or
fragmented paper work. Amid the cold chain process one should screen that procedure until
generate an adequate informational data that plainly exhibits the procedure is in consistence
and condition of control mechanisms. Each time the procedure does not fit in with the
procedure, the occasion ought to be legitimately reported, researched and redressed so the
temperature trip don't happen on future processes .

Any oddity is hence viewed as a Non Conformance and ought to be relegated as an


avoidable occasion. The occasion must be accounted for promptly when it is recognized and
every single deviation is reported and examined.12 Castiaux, E. (2010). Non Conformances and
CAPA's are an essential piece of the general Quality System in the harsh elements chain
condition. Slanting of these events will also enable businesses to screen the by and large "well-
being" of the systems set up. Excessive Non Conformances can rapidly recognize areas of worry
for administration and take into consideration restorative actions to be taken. Amid
administrative inspections of value systems, inspectors will often ask to survey a list of all
"open" Non Conformances" so that they can rapidly assess how an association is processing

10
Source: Eden, M., & Calmer, C. (2010). Improved cold chain management: efficiency and
food safety through international project results. Food Science & Technology, 24(1), 30-32.
11
Zhang, H. (2011). misc, (September 2017) 1. WU Qing—gang. The Current Situation and
the Counter measures of China Cold Chain Logistics Development. China Business and
Market, 2.

12
Castiaux, E. (2010). An introduction to cold chain management. Journal of GXP
Compliance, 14(4), 19.

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these events and ensuring they are managed in an opportune way. 13 Source: Wang, L., & Halo,
H. (2017).

It is important to build up an interior documentation framework and additionally


correspondence guidelines and conventions to exchange or make center point to track data
over the network. These frameworks would screen status, item temperature history, and
guardianship of goods within chain, and so on. These guarantee that a product,
pharmaceutical, or other is sheltered and use full when reaching its proposed shopper. It is
likewise essential to have a total chain of control of an item, so there is documented proof
regarding who had control of the item all through the transportation stage of the item, up to
the last customer utilization point.14 Wang, L., & Hao, H. (2017).

1.3 What are the relationships between these elements


There are several aspects which need to be analysed in design of cold supply chain type
of product, lot sizes, seasonal variations, packaging, transportation modes, and pallets
selected size as well as design. Each element of cold chain contributes to maintenance
of quality as well avoidance of spoilage. The aim of the cold supply chain is to ensure
strict adherence to quality. The maintenance and monitoring of temperature during the
transportation as well as storage is important to achieve this. This needs use of
technologies. Staffs needs to train to monitor and regulate temperature. This is essential
for addressing problems which can arise any time during supply chain process.

Cold supply chain includes a lot of environment controlling facilities to manage


temperature variations. Correct procedures has to be followed during Packaging,
handling, storage & distribution, truck-to-dock movement to cold facility and overall
movement from point of production to delivery, This needs active transportation system,
application of various technologies and services of global experts .The development of
correct management procedures contribute to maintaining quality as well also helps to
understand any deviations from the designed procedure much quickly.

1.4 In which branches of industry / economy there is a


need to use a cold supply chain
Cold chains are essential in many industries some of the industries which need this
most are:-

The fast moving perishable consumer products sector known as FMCG mostly includes

13
Source: Wang, L., & Halo, H. (2017). Study on Improvement of Cold Chain Logistics
Service Quality Based on QFD.

14
Source:Wang, L., & Hao, H. (2017). Study on Improvement of Cold Chain Logistics Service
Quality Based on QFD.

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fruits, vegetable, poultry as well as dairy products. In this main challenge s quality
maintenance as quality optimization though out the processes. Another industry that
basically needs to put resources into cold chain development is the pharmaceutical
industry. The assembling procedure for medications and pharmaceuticals as a rule
requires greatly low temperatures. Some expensive life-sparing medications and
prescriptions are to be kept at below zero temperatures for quality adherence.
15
(Adapted from: WHO, 2004),

CHEMICAL INDUSTRY

This industry is another which needs cold supply chain both for transportation as well as
movement of the products. The security specifications related to the industry are much
specific ad has to be strictly adhered to avoid calamities.

Restaurants, supermarkets often need cold chain facilities to ensure product quality and
to avoid wastage.

After the second decade of 21 st Century have been the flourishing and coming of age
period of technologies that more suits to drive logistics agile, such as Internet of Things (IOT),
Machine Learning, Mixed Reality (MR) and Block Chain. Those technologies achieved enough
progress and achieving advancement and it has stability to use for industrial settings. Now in
2018, these technologies are applied in several areas of supply chain such as end to end
visibility, product tracking, fraud control, settlements, compliance, productivity, workers safety
and speed of delivery. These innovations and key trends drive the change and agility in present
supply chain such as:-
I. Internet of Things (IOT) and Block Chain allows supply chain traceability.
The combination of IOT and Block chain reduces crucial supply chain challenges, because
the IOT and block chain significantly streamlined to track product component genealogy, origin
of place, quality chain as well as location. The IOT and Block Chain not only tracks, but also
tracks and monitor different aspects of the product, such as:-
a. Location and ambient conditions
b. Block Chain captures non repeatable proof of important facts along the
product life cycle like design, sourcing, manufacturing, distribution, sales and
usage.
c. Data from IOT and Block Chain can use in conjunction with each other.
d. IOT and Block Chain provide a transparent granular sequence of events and it
used for root cause analysis and process optimization.

II. Mixed Reality and its experiments certainly take over the pace.
The augmented reality (AR) and Virtual Reality (VR) also mixed reality growing heredity
roots in entertainment room till now, even though in the places of factory floors, warehouses

The cold chain. (Adapted from: WHO, 2004), Immunization in Practice, Module 3,
15

The Cold Chain, Figure 3A, p.2)

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and retail stores, these applications are ahead grip. With the Virtual Reality can manage and
monitor production lines remotely. Workers can use Augmented Reality for streamlined stock
picking in warehouses. The customers can AR and VR to visualize the products in their own
personal settings. Providing the convenient access in right time to these technologies in supply
chain system will attain thrust.

III. Adaptive Intelligence will be omnipresent.

In yesteryear the machine learning is no longer cryptic technology and the modern supply
chain SAAS Applications provides reasonable intelligence features as well as lead users to take
efficient data – driven big business decisions, for instance built in analytical models be able to
predict consumer demand for a fresh product initiate. The accurate prediction of the demand
curves helps to plan the supply level planning. Therefore the application’s built in capability
helps to predict business decision makers stir towards their desired business targets. In short
the adaptive intelligence in industry situations and some of the probable scenarios are:-
1. Behaviour order anomaly detection
2. Return predictions
3. Quality predictions
4. Component geneology tracking
5. Predictive machine maintenance
6. Product usage predictions
7. Supplier performance
8. Segmentation optimization
9. Production optimization
IV. Avoidance of cloud suffers in future.

The traditional stand in business enterprise systems are against the agility and
innovation velocity of business. As and when companies required evaluation of
customer experience, products job, supply chain operations and logistics have to
revamped, the thriving companies have adopted cloud platforms to maintain the rate
of change and organizations those set up for agility and innovation will thrive in the
competitive atmosphere. As in other industries like logistics also do or die for cloud
adoption and slow in adoption of cloud leads disproportionate risk to survive.

THE 3D PRINTING WILL ACHIEVE DOMINANCE

The 3D printing will prolong its steady adoption way and it persuade on
supply chain operation continue to progress. The 3D printing adoption has been
implemented in many industries like automotive, medical devices, aerospace,
fashion and manufacturing industries. The adoption of 3D printing diminishes
the need of storing and moving inventory.
V. The digital co-workers like robots and more make entry in the logistics Industry

The corporate worker productivity tools are for to work with workers and help them with
the tasks, but technologies like robotics, computer vision and natural language processing

10
reduced error rates below the human work processes and they became the productivity
helpers in works like stock picking, packing and moving boxes from one place to another and
these type of robots are frequently dubbed as "coots". More over there is a different course
group of cobots are molding in a shape without physical form and it can let humans relieve
from repetitive tasks and those are chatbots and Robotic Process Automation. The Chatbots
helps knowledge workers by assembling nuggets of information from backend systems includes
updated inventory level and arrival of shipment. Those are accessible through different
interfaces like web, mobile applications or AR glasses, but RPA helps automation of complex
process driven tasks like order processing, payments processing, email communications and
stock management.

VI. The emerging business model likewise “SERVITIZATION” will brings changes in supply
chain operations.

The nature of servitization is giving greater emphasis up on customer intimacy, operational


excellence and product leadership, besides that provides base services, intermediate services
and advanced services and focused to improve value to customers. Producers are shifting from
selling products to selling customer outcomes and the trend is manufacturers are experiments
with servitization based business models. 16 (Anant Kadiyala, 2018)
A few players in cold chain are searching for creative approaches to strike a harmony
between needs of the cold chain logistics and the need to lessen asset utilization. In this way,
these organizations are putting intensely in researches about and growing better approaches to
land at an ideal arrangement. Numerous players are exploring different avenues regarding
enhancements in protection, which are probably going to give more investment funds and in
the meantime guarantee vitality productivity. Clients today are more cognizant about the
nature of the items they are purchasing. For cold chain firms they need to guarantee that the
items are kept safe throughout the transport. In this way, makers are depending on different
cold chain solutions to address the needs of the industry.17 Cathy, M., & Villella, R. (2018).
Awareness of Health aspects are making consumers to look for fresh as well as useful
products. This has increased the demand cold chain infrastructure especially in food industry.
Marketers are realizing importance of authenticating products and this has become a
competitive advantage, this is found to enhance authenticity of the brand). Digital tools as well
as intelligent devices enable firms to have more transparent route for products and companies

16
Anant Kadiyala, 2018. https://www.manufacturing.net. [Online] Available at:
https://www.manufacturing.net/blog/2018/02/top-emerging-trends-2018-supply-
chain[Accessed 10 November 2018].
17
Cathy, M., & Villella, R. (2018). New trends in cold chain monitoring applications-A
review. Food control

11
are applying this data as part of marketing messaging to create loyal end users. 18 (Gigot, D.,
Tan, A., & Nguyen, T. N. T. (2018)19, Chateaux, E. (2010).

Figure 1- Dimensions of Service Quality

1.5 The conditions for controlling the addition of the


Assumed temperature in cold chain
Every produce which has a temperature sensibility has a different packaging need
this has to be understood to prevent quality loss during transit & it’s a major challenge
faced by many logistic service providers. Ttemperature variances in many geographic
locations during transit make it a core to have specialized packaging solutions.
Containers with tight fitting lids as well as ice-packs can be used mainly in case of
drugs. Temperature control during transport is essential to prevent any loss of specimens
or product quality. Controlled Ambient (+15C to +25C) • Freezing (-25C to -15C) (-60C to
-80C) and Cold (+2C to +8C) can be used as per product needs’hen needed, a data logger
can be applied to understand temperature in process of shipping. Customers can analyse
the inner temperature during each stage of cold chain which enhance their confidence. 20
Zhang.W. (2010)

Monitoring of temperature is core element of good work practices in cold supply


chain. For this data logger with valid certificate of calibration has to be used. By the help
of the company, it is possible to understand the level of monitoring device in comparison
to industry standards. This is essential in case of VFC vaccines transportation and for any
vaccine transportation in which public fund is used. This can be used for both
documentations as well as monitoring of temperature. It is widely used in transportation
of sensitive items, mainly in food sector, medictal & Pharmaceutical, hotels, and
manufacturing sectors. Food as well as drugs needs to be stored in specified
18
Gigot, D., Tan, A., & Nguyen, T. N. T. (2018). The obstacles to cold chain implementation
in developing countries: insights from Vietnam. The International Journal of Logistics
Management.
19
Chateaux, E. (2010). An introduction to cold chain management. Journal of GXP
Compliance, 14(4), 19.

Zhang.W. (2010) market research in RFID Real time cold chain monitoring system,
20

Royal institute of technology Stockholm

12
temperature. Besides that such products special rooms with high racks needs to be
maintained. Documentation of temperature is important to adhere to legalities in drug
and food industry. The devices might show variation in quality this makes frequent
calibration testing becomes essential.

CHAPTER 2

2. CONDITIONS OF THE CLIENT’S SATISFACTION

2.1 Factors influencing client satisfaction

In the present current aggressive, quick paced and worldwide economy, an


organization needs has to think about its clients like never before. The expanding power
of the client and increase of the rivalry imply that numerous associations are trying hard
to keep space in market and profit also has come down.

The challenge for business today is to change from product focus to client center.
This is ending up more troublesome on the grounds that now clients are progressively
refined, taught and all around educated. They have often had exclusive expectations of
the services they need to get. They need more choices and won't be 'sold to' or
controlled. Hence, now-a - days, clients will be treated as person. They need to be
esteemed and firms have to make them feel their importance. Service firms continually
make progress toward the more elevated level of client services.

Add up to mind of the client must be accomplished when the need of the internal
and external clients is considered. A decent client device meet their desire which is
impacted by such factors as, aggressive pricing, staff graciousness and conduct, great
esteem, and service quality. Representative attempts with heart and brain to guarantee
the most ideal service for the client.

13
James Fitzsimmons (2008, 4),21 defined service “A service is a time perishable,
intangible experience performed for a customer acting in the role of co-
producer.’Zeithaml et al. (2006, 4)22 define services as ‘Services are deeds, processes
and performances”. They elaborate their definition as- all economic activities whose
output is not a physical product and construction, is usually consumed at the time it is
produced, and provides added value in forms that are essentially intangible concerns of
its first purchaser.

Customer satisfaction is a stand out among the most essential issues concerning
business firms of all types. Business associations attempt to give best support of the
customer and furthermore search for the reason that can build the satisfaction level. The
factors which impact customer satisfaction include “these factors include friendly and
helpful staff, knowledgeable staff, Helpful employees, and billing, billing time,
competitive pricing, service quality, good value and quick service”

PRODUCT AND SERVICE FEATURES

Customer satisfaction is altogether impacted by the customer's assessment of


product or service highlights. Along these lines, firms additionally consider features as
well as attributes customer measure most and that organizations estimates the
impression created by these features as well tries to understand general service
satisfaction. In such manner, examine has discovered that regularly customers make
exchange between services like value level and service quality.

EMOTIONS OF CUSTOMERS

Emotions of the customers has core role in defining product as well as service
satisfaction. Mental frame work of the customer whether person is happy or is in a
positive mind this has an influence on feelings about the service. Similarly if end user is
in a bad mood person can develop negative feeling about service offered. But positive
emotions gain more than negativism. Emotion which customer feels when using a cold
chain logistics service can influence client satisfaction (Zeithaml et al. 2006, 111).23

ATTRIBUTIONS RELATED TO SERVICE SUCCESS OR FAILURE

21
B. Fitzsimmons, James A., and Mona J. Fitzsimmons, Service Management: Operations, Strategy,
and Information Technology, 5th Ed., Irwin/McGraw-Hill, 2006.
22
Gupta, S. and Zeithaml, V., 2006. Customer metrics and their impact on financial performance. In:
Marketing science. s.l.:s.n., pp. 25(6), pp.718-739..
23
Gupta, S. and Zeithaml, V., 2006. Customer metrics and their impact on financial performance. In:
Marketing science. s.l.:s.n., pp. 25(6), pp.718-739..

14
Customer satisfactions are impacted by attributions of the customer. Behavior of
staff, value of the product, billing methods, competitive pricing as well as service
quality all defines these attributions. There are almost 20 aspects which define
attributions related to particular service. Many time faults in services are ignored by
customers as a rare happening or because it was beyond organizations control.
(Zeithaml et al. 2006, 112) 24

PERCEPTIONS RELATED TO EQUITY AND FAIRNESS

View of equity as well as fairness much affects customer satisfaction. Customers


generally consider if they were treated decently in contrast with experience of other
customer, was the price relative for the service, did they get great service. These
assumptions of fairness are fundamental to customer satisfaction, especially in service
recuperation circumstances.

OTHERS CONSUMERS, FAMILY AS WELL AS CO WORKERS

Customer satisfaction not just relies upon the item or service includes, one's own
experience rather it likewise impacted by other customer recognition, encounters and so
forth. For example, relatives' satisfaction or dissatisfaction might define customer
perceptions towards specific service – like a get-away excursion. Now and then
opinions of the loved do impact customer perceptions about that service. (Zeithaml et al.
2006, 112)25

PRICE INFLUENCE ON CUSTOMER SATISFACTION

Price is an extremely well known strategy for client satisfaction. Customer will
demonstrate higher levels of satisfaction when they get bargain price (pay less value)
with same way a lower level of satisfaction when they pay more for relatively terrible
service. They thought they paid not exactly the stated cost for that service (discount)
this enhances level of customer satisfaction.

24
Zeithaml, V. A., Bitner, M. J., & Gremler, D. D. (2006). Services Marketing: Integrating Customer
Focus across the Firm. Boston, MA: McGraw-Hill/Irwin.
http://library.wur.nl/WebQuery/clc/1809666

Gupta, S. and Zeithaml, V., 2006. Customer metrics and their impact on financial
25

performance. In: Marketing science. s.l.:s.n., pp. 25(6), pp..112..

15
As per Zeithaml et al. (1996, 116-128)26 the customers' utilization of cost as a
parameter to quality relies upon a few elements, the openness of services signs to
quality, brand names that offer proof of a company's, level of promoting and the dangers
related with the purchasing a service.
Typically when the expense is high, customer expects higher quality and better
services. Then again, when the expense is too low, customer may address about the
reliability of services. In this manner, when organization utilize any value advancement
strategy, for example, volume rebates, discounts, favored customer rebate, occasion
deals or different incalculable advertising offers they ought to be extremely cautious
about their item picture and how customer react to their item and service

SERVICE QUALITY AND CLIENT SATISFACTION

There are mainly five aspects such as tangibles, reliability, assurance, empathy and
responsiveness when considers to measure the service quality. The Tangibles are the
appearance of material facilities, equipments, personnel and communication facilities
and reliability is the capability of carry out the committed service unfailingly and
perfectly. The responsiveness is readiness to help clients and offer punctual service.
The assurance consists of knowledge and politeness of the personnel’s and their
capability to communicate trust and confidence and finally the empathy is individual
caring and attention provided by the firm its customers. (qualtrics.com, (2017) 27

THE FIVE-GAP MODEL

Among that rose a celebrated five-gap service quality model led by Zeithaml,
Parasuraman and Leonard Berry. As indicated by Niros, M., Pollalis, Y. and Niros, A.,
(2017)28 , as they basically look at nineteen changed service quality models somewhere
in the range of 1984 and 2003, there are up to eight models in light of the five-gap
model. This is a somewhat huge extent so we can without much of a stretch see that this
model is thought to be very dependable by numerous researchers.

This model is thought to be very particular and itemized with ID five gaps that may
make customers encounter poor service quality. Not exclusively does it think about
between customers' desire and reality yet it likewise considers the service that
organizations need to give. What's more, it specifies that service quality is influenced by

26
Gupta, S. and Zeithaml, V., 2006. Customer metrics and their impact on financial
performance. In: Marketing science. s.l.:s.n., pp. 25(6), pp.116-118.
27
Qualtrics.com, 2018. How to Measure Service Quality. [Online] Available at:
https://www.qualtrics.com/blog/how-to-measure-service-quality/[Accessed 01 05 2018].
28
Niros, M. and Pollalis, Y., 2014. “Brand personality and consumer behavior:
strategies for building strong service brands”, Journal of Marketing and Operations
Management Research, 2(2), pp. 101-115.

16
the contrast between customers' desires and organizations' discernment France, M.H.,
(2015.)29
i. Gap 1: shows up when there is distinction between consumer expectation and
service recognition. The essential purpose of this model is to make firms
comprehend the important attributes of their own association's service quality
and also benefit conveyance to fulfill clients (Dally, M., 2018)30
ii. .Gap 2: between service recognition and service quality principles. It implies
that the association thinks that it’s hard to transform clients' expectations into
fitting execution standard. The reason is perhaps not-all around prepared staff or
then again as well popularity of clients (Dally, M., 2018).
iii. .Gap 3: between service quality execution and service delivery. This happens
when the staffs can't achieve set service standard.
iv. Gap4: between service conveyance and outside interchanges. This occurs at the
point when the special crusade and commercials don't meet reality, which will
effortlessly lose clients' trust in the organization picture.
v. .Gap 5: between anticipated service and professed or felt service. The service
quality appraisal depends for the most part on the fifth gap while this gap five is
likewise influenced by the initial four gaps above. On the off chance that the
clients don't feel any distinction between their desire and reality, that service
would be appraised brilliant. So a definitive objective is to diminish these gaps
to build clients' fulfillment. (Daielly, M., 2018). 31
SERVQUAL MODEL

From the general five-gap model demonstrate, Zeithaml et al. endeavored to


fabricate a more particular and functional estimation scale to evaluate the service quality
in actuality. They originally felt that any service is evaluated in view of ten variables:
dependability, responsiveness, and competence, get to, correspondence, kindness,
believability, security, understanding and effects Kim, S. and Kim, S., (2018).32

One major favorable position is that it covers almost all qualities of service; in any
case, at the same time researching and analyzing all these ten parts is such a diligent
work, to the point that they later improved into just five variables called SERVQUAL
model. In the wake of directing several exploratory and quantitative investigates in five
distinctive service segments, they found that there is a critical correlation among things
speaking to a lot of the original dimensions.
29
France, M., 2015. Student expectations and perceptions of service quality at a for-
profit college. In: s.l.: (Doctoral dissertation), Oklahoma State University.
30
Dally, M., 2018. Quality Gap Analysis on Education Services. IJAME...
31
Daielly, M., 2018. Quality Gap Analysis on Education Services. IJAME...
32
Kim, S. and Kim, S., 2018. A Service Quality Management Model for the Public
Information Systems. . 21(1), pp. 61-85.

17
Not exclusively is SERVQUAL model broadly acknowledged by analysts however
it likewise utilized and connected in all actuality more than some other models to survey
benefit quality in a wide range of fields (Xuehua, J., 2018). 33

SERVICE QUALITY ANALYSIS BASED ON SERVQUAL MODEL 20

RELIABILITY

Companies should focus on gaining the trust of the customers as survey indicates in
this level company is low rated. The aim of the firms should be to provide, “right
products at correct location at correct time with quality”. This means company will need
to keep certain standards quite essential for delivering excellent service and developing
a carving a trustworthy image with end users. One suggestion is Just-in-time (JIT)
strategy has to be employed to reduce costs and ensure quality of goods. The concept
occurred much earlier but in cold chain industry this has been less adopted. This might
be because operation of the company is often synchronized with that of other companies
a common strategy applied by Indian companies. This surely can enhance service
quality as well as customer loyalty (Tian, F., 2016).34

Firms needs to have long terms contracts with its customers and associated this
helps to anticipate and also ensures that demands are met during peak seasons like
Christmas and New Year. Legal contracts should be well drafted although trust is more
important the specifications of the contract should be made clear to the customers
especially when dealing in international scenario. Offices of the company should be
there in all main locations. There has to be supervising section to check the entire
process Professional expertise of the staff becomes a main aspect in this and they needs
to have good grasping in English and vernacular languages. This not only enhances
speed of the logistics process but also helps to enhance end user trust. Companies
should inform customers about the facilities available and should invite them to see
their infrastructure so they remain updated (Tian, F., 2016). This generates a bridge
between end users and company. Company should provide tracking facility and
customer should be able to understand the conditions. Track as well as trace is a core
feature which most of the logistics companies provide now. In cold chain logistics
customer’s needs to know hoe goods are kept and transported.

33
Xuehua, J., 2018. SERVQUAL-Model-Based Fuzzy Evaluation of Express
Service Quality. International Journal of Transportation Engineering and Technology,
4(1), p. 20.
34
Tian, F., 2016. An agri-food supply chain trace-ability system for China based on
RFID & block chain technology. In Service Systems and Service Management
(ICSSSM), s.l., s.n., pp. 1-6.

18
ASSURANCE

The specific low-appraised factors "critical thinking skills" and "staff trust"
essentially result from frail interior power .Indian organizations are outplayed in
effectiveness and working system by foreign firms. Subsequently, they need to reinforce
their inside advantages for raise affirmation by creating capital, HR and association with
other nearby firms. More confidence has to be built within employees and this can
provide assurance to employees as well (Singhal, R. and Saksena, S., 2017).35
Firm has to provide much emphasis on the recruitment of employees, quality of the
resources helps in enhancing service quality which firm provides.

Staffs have to be empowered to take decision without much paper work and without
having to await directions from higher authorities in appropriate cases. Further for
enhancement of quality staff needs to be trained at regular intervals. Organizational
culture has a main role in motivation of the staff and defining the goals as well as work
nature. Through this healthy work place environment as well good bandings between
staff happens and this happens through organizational culture. In ensuring customer
satisfaction and service quality a good organizational culture is quite important. Kelvin
has to engage in contracts with other companies for further development (Bremer, P.
(2018). 36

TANGIBLES

Company was found in research to be less active in digital platform. Web site as to
have live updates about goods transportation also facilities for E booking has to be
there. Effort has to be done to enhance the visibility on line. Good website is important
for the company investment might be huge in the first, but more benefits will come in
the future. Kelvin’s needs to do Search Engine Optimization this can enhance the
company’s profits in future.

Building brand picture is a troublesome undertaking, which can't be finished in one


day however in a long haul through predictable advertising efforts. Among them, logo
and motto are the initial two things that endear must consider. They can be imprinted on
all transportation modes, wraps, uniform, presents for customers with the goal that

35
Singhal, R. and Saksena, S., 2017... Performance Assessment of the Storage and
Warehousing Industry in India. . Journal of Industrial Statistics, 6(1), pp. 15-40...
36
Bremer, P., 2018. Towards a reference model for the cold chain. The International
Journal of Logistics Management...

19
clients can perceive and remember organization' picture effectively Stevens, G.C. and
Johnson, M., (2016).37
RESPONSIVENESS

Research indicated that company fails to respond fast to customer demand for
enhancing service Quality Company has to employ comprehensive technological
solutions to enhance its service levels. For this more usage of computer application will
be essential. The software can be used in to maintain temperature and for
documentation. Error chances cam lessened though information technology and this can
cut down cost as well.

The entire operations has to be connected to digital platform this can considerably
enhance service quality as well as competitiveness (Andreeva, T. and Kianto, A., 2016).
38

EMPATHY

Company empathy is defined by performance of the firm. The warmth as well as


friendliness shown by staff influences the customer satisfaction. Staffs need to be
specifically trained to show empathy. Organizational culture has a main role in
motivation of the staff and defining the goals as well as work nature (Andreeva, T. and
Kianto, A., 2016).

Through this healthy work place environment as well good bandings between staff
happens and this happens through organizational culture. In ensuring customer
satisfaction and service quality a good organizational culture is quite important. Kelvin
has to engage in contracts with other companies for further development.

Managers need to make the workers feel work they are entrusted corresponds with
their skills as well as expertise and can be beneficial for them This also contribute
towards enhancing quality of service further staff needs to know how to reward staff so
that they are motivated. Sort out that assistance workers see better the significance and
advantages of client care benefit. Representatives must master and apply both particular
learning and delicate aptitudes to fulfill client needs. What's more, dispositions and
conduct of the workers should dependably be delicate, chivalrous, polite and proficient.
Organizations need to associate both client care culture and corporate culture together to
make long term advancement.

37
Stevens, G.C. and Johnson, M, 2016. Integrating the supply chain… 25 years on.
International Journal of Physical Distribution & Logistics Management, 46(1), pp. 19-
42...
38
Andreeva, T. and Kianto, A., 2016, 2015. Empirically testing the role of strategic
management of knowledge in firm performance. s.l., European conference on
knowledge.

20
Indian logistics firms ought to likewise have particular policy to keep up long haul
business connections. Have a standard customer care plan to make a strong association
with customers, particularly the occasions like New Year. Gifts are a vital piece of the
visit to indicate enthusiasm for customers (DeNisi, A. and Smith, C.E., 2014).39 The
firm even needs to focus on the customers not utilizing the organization’s service any
longer on the grounds that there may come a period when they may be back because of
good impression that organizations have for them. When essential staff of the client can
be allowed in warehouse this enable them to get a better understanding. Both client and
company will be able to understand each other better.

Recommendations

To be in Logistic leader a Company has to plan and upgrade its infrastructure which
is main priority. Without development of infrastructure company cannot remain
competitive or ensure high level of service. A Company needs to do research to
understand the needs of the cold chain logistics industry and try to find methods which
enhance competitiveness as well reduce cost. To achieve this Company needs to focus
more on “commodity specific packaging as well as temperature models” and also need
to make use of WSN as well as to monitor and track tools and also in reefer truck with
small capacity to cater to tough geographic locations.

The most recent technologies can be embraced for service of the warehouse
facilities. Use of new technologies can dispose of duplication and superfluous
information utilization which will decrease the speed of a recovery forms and
furthermore result in reduction in service quality.

Government of India and various states are providing much help for the
improvement of cold chain logistics like land, subsidies, land and help to procure new
technologies Kelvin cold chain Logistics Company has to make use of these to enhance
their current infrastructure.

There is an increased demand for cold chain services which is much beneficial for
the company. As the demand is increasing which is a positive sign global players are
also emerging which means Kelvin cold chain logistics has to enhance its service
quality to keep the customer with them. To take advantage of foretasted demand

39
Denise, A. and Smith, C.E., 2014. Performance appraisal, performance
management, and firm-level performance. The Academy of Management Annals, 8(1),
pp. 127-179.

21
company has to develop network all over India. Government of India is much incentive
for infrastructure development which has to utilize by the firm.

Company needs to train more staff and ensure they understand the needs of the
customers. India is a big nation and commodities which each region produces are also
different. Each commodity has different transportation and warehousing requirements.
Company needs to conduct research to better understand the opportunities and
challenges ahead and has to plan accordingly to meet the demand.

2.2 Customer requirements in cooling storage services

Third party service providers are specialized services in relation to cold-chain


logistics. But still as pet cool chain association almost 30 percent of the perishable items
are still destroyed in transit. Customers expect that service providers deliver high class
service as well as quality. The producer’s reputation as well as product integrity id based
on safe delivery does company needs to act a committed stake holder. Customers also
expect that company will have a skilled as well as committed team to ensure quality
plus to endure operations is undertaken within time frame. Further documentation is a
key aspect service providers have to ensure this. Several laws have been developed by
authorities al regulations as well as guidelines have to be followed. Technology is
improving rapidly so customers do expect third party service providers to have state of
the art facility, as cold chain logistics is an industry which acquires special expertise it is
better that companies specialize on this. Company needs to adhere to advanced
processes s well needs to customers have acquired conveniences. Two days cold chain is
highly-specialized service provider’s customers expect them to deliver increased
volume of inventory ‘Just in time.

Customers expect service providers to share benefits of “shared-user logistics.


Shared logistics enabled firms to reduce the needs of infrastructure, further also reduce
costs of administration and other overhead costs. The supply chain Open Office is
important. Companies while selecting cold chain partners needs to make sure that they
have well developed systems, processes as well as distribution chains to make
effaceable supply chain.

Companies need to provide ambient temperature in which biologic products can be


sustained and even cryogenic storage has to be provided. Creating units that can keep up
product integrity amid packaging, transportation, and capacity under these profoundly
particular conditions requires critical capital interests in ware house cold chain facilities
and temperature management mechanisms, and delivering containers. Alongside such
physical resources, contracting work force who comprehends the importance of
products transported is important. In last supply chain compliance to regulations was
not much of an issue. Manufacturing guidelines never talked about how to handle

22
materials. But in last several new guidelines has emerged customers expects firms to
fully comply with these regulations 40

Outsourcing of cold chain logistics is done to ensure customer get help from
expertise of the third party agents, capacity as well as IT systems. This is expected to
reduce expenses, enhance visibility within the supply chain and also ensure legal
compliance. Another main concern for customers is the freight billing. Customer
expects that there will be trained personnel having expertise in LTL as well as parcel
billing.

Customers are demanding real time communication of data and elimination of


surprises. Demand for visibility is increasing. Real-time as well as “end- to-end cold
chain monitoring “is helping the customer to have more visibility related to their
shipment. Customers are now choosing firms which employ automation technologies
that helps in monitoring temperature location as well as ETA related to shipment.

On the whole customers are looking for fully as well as semi-automated shipment
solutions which have less human interaction. There needs to be real time monitoring as
well as communication of temperature related data. Increased accuracy in billing is a
must. State of the art Standardization which ensures quality metrics is met. Company’s
needs to provide tailor made which caters to specific needs of individual firms. Further
cost containment also needs to happen.41

2.3 Enhancing customer service

DEVELOP A RISK MANAGEMENT PLAN

Even with best efforts accidents can happen which can damage reputation of the
company. In cold chain logistics in transport of products sensitive to temperature even a
small variations can drastically impact quality of the product. Therefore adequate risk
assessment has to be undertaken.
REVIEW TRANSPORTATION CHOICES

To enhance the level of productivity of the company personnel have analyze as well
as provide justification for our shipment decisions. Cold chain companies needs to have
40
Source: Cathy, M., & Villalba, R. (2018). The New trends in cold chain monitoring
applications-A review. Food control

41
Yuen, N. D. T. (2016). Vietnam’s Economy is an Emerging Market Standout. Bloomberg
Business.

23
an air, road as well as freight strategy in place. This will help company to understand
modal choices, possibilities and provide better solutions to customers. Strategies
adopted commercial rivals also need to be given consideration.
UNDERSTAND TRENDS IN THE INDUSTRY

Company needs to make effort to understand the current trends in cold chain
analysis. This can be done through a study of the competitors, participating functions
arranged by bodies within industry. Company also needs to interact with experts to
understand changes in the industry. Similarly company also need to interact with new
suppliers understand new product as well as innovations and also network with other
members of the industry.

SPOT THE LATEST OPPORTUNITIES

Companies needs to look for new strategies to overcome problems companies are
facing. Firms need to be update on new challenges as well as solutions as well as
opportunities.

BE CREATIVE

Cold chain company’s needs to constantly update their innovation strategies to


ensure products are delivered on time, without cost enhancement and with quality
needed by customers. Studying how your peers or rivals integrate temperature sensitive
products can help bring in more innovation.

DIGITAL SOLUTIONS

Whether you have a large scale or small scale company offering services cold chain
industrial digital promotions as well as on line presence becomes important . This is
vital for attracting new customers. Help of IT professionals with expertise in
Application, Web as well as Program development able to handle programming
languages, such as Ruby on Rails, PHP, and OS as well s Android needs to be hired.

FREIGHT BILLING

Company needs to have team of trained billing staff, as well as supervisory staff that
have expertise in LTL and Parcel billing. Companies need to implement automated
programs which reduce the necessity of human interferences. Process should be
accurate as possible. Standardization of process has to be done that ensures quality
metrics are met. Billing needs to be adaptable to the needs of the customer and needs to
enhance the overall experience of the client.

FREIGHT RATE AUDIT

24
Accuracy related to bill is core to maintain closer relationship with customers. The
products offered to customers’ needs to have scalability, flexibility as well as system
compatibility. Service capabilities have to be bridged with skilled staff to ensure
company has resources to meet any challenges.

AUTOMATED -REAL-TIME VISIBILITY

In shipments of refrigerated product Automated -Real-Time Visibility has become


quite important; any problems can result in damage of reputation. Automation
technocracies have made monitoring as well as communication of current temperature,
location as well as ETA possible. This cuts down risk, enhances profitability, reduces
spoilage and enhances customer satisfaction.

STAFF TRAINING

Another aspect which can impact is training provided to the staff. As more
automation technologies has to been put in use staff has to be trained on that aspect.
Behavior of customer does impact perception about customer service. Staff has to be
provided training in billing as well as engagement with customers. Staff needs to
constantly interact with customers to understand their concerns.

INSURANCE

As the risk is high company will need to have insurance policies in place. This can
help in management of the risk and will help to provide compensation and avoid
arguments in case of any uncertain events.

POD PROCESSING

Proof of delivery is important for customer. Customer should be able to check and
download proof of delivery from the web browser. Up-to-date status alert can much
enhance the level of customer service. 42

CHAPTER 3

42
Source “Singh, R., & Shabani, A. (2016). The identification of key success factors in
sustainable cold chain management: Insights from the Indian food industry. Journal of
Operations and Supply Chain Management, 9(2), 1-16.

25
AUTOMATIZATION IN COLD CHAIN LOGISTICS

In the third chapter, the researcher writes on the automation of activities in the cold
refrigeration chain. The solutions related to automated refrigeration logistics, which has ability
to replace human work is done as part of discussion. This chapter also presents a vision of
further development cold chain in conditions that occur in India. Further author’s opinion on
improvement of cold chain quality is provided.

3.1 Automation of cold chain logistics

Present day cold chain storage facilities include cold rooms, computer controlled
frameworks, advanced warehouse management programs, new energy management
frameworks, and equipments which enhance productivity and control temperature. Industry is
still less updated in the area of automation. Automation by and large alludes to the utilization
of electronic control frameworks, together with other data innovation, to control modern
apparatus and decrease the requirement for human intercession. 43,44

Automation helps not just about lessening the costs that can be picking up a more
productive operations and a more effective activity all the while. Automation requires services
of qualified specialized individuals. Second, it requires something of a culture change, with
emphasis on precision. Automation needs more specialized help per exchange, in any event at
first, and possibly less as per level of advancement."

Automation goes well beyond mechanization. While mechanization empowers managers


with device to assist them with needs of work, automation altogether reduces the prerequisite
for human thinking as well as choices. In cold chain, computerized stacker cranes and
periphery structures do just that. Computerized cold storages were begun in 1980. By
Conestoga Canadian firm works four completely automation product warehouses which has an
area of 22 million cubic feet.

In spite of Conestoga's thundering achievement, automation has not been implemented


with enthusiasm in cold chain operations. To start with, automation requires a costly
investment. Second, individuals are normally traditionalist, and might be unwilling or uneasy
with change. Also, third, it's dependably a test to put away first framework and to work
through all the inescapable and tedious emergencies that go with the development of new

43
Source: Khanuja, G. S., Sharath, D. H., Nandyala, S., & Palaniyandi, B. (2018). Cold Chain
Management Using Model Based Design, Machine Learning Algorithms and Data Analytics (No.
2018-01-1201). SAE Technical Paper.
44
Trebar, M. (2015). RFID Logistic Management with Cold Chain Monitoring–Cold Store
Case Study. World Academy of Science, Engineering and Technology, International Journal of
Social, Behavioral, Educational, Economic, Business and Industrial Engineering, 9(3), 736-739.

26
system. Any organization which experiences the automation cauldron once will discover it a
world less demanding after troubles of executions.

Automation advantages are not limited to decrease in costs. In addition to the fact that
expenses will fall pointedly on the very beginning; the organizations can likewise keep away
from unavoidable costs of spoilage, inevitably cut down staff medical coverage costs, and the
mounting cost of laborers’ remuneration. Automation likewise would yield significant
advantages in efficiency. Neither work force nor gear will be exposed to the worry of
continually moving between below zero temperatures and hotter temperatures. Warm-up
breaks are never again required for lift truck administrators, administrator debilitated time is
kept away from, and human blunders are for all intents and purposes non-existent. 45

Organizations can gain energy savings with its mechanized structure and a lessened carbon
impression. It makes expense of warm up insignificant, yet the refrigeration framework will not
need warm up through lighting.46

Working an automated facility isn't simple. For a certain profitability and output might be
enhanced it's not boundless. As machines can't be put extra time to handle an unscheduled
shipment. What's more, if the machine framework ever goes down, it's more hard to make up
for lost time, On the positive side, the hardware is less inclined to be manhandled and there is
far less probability that there will be unscheduled issues. The machines are more correct than
humans. A crane can't misunderstand the plate, the wrong tag, or the wrong part number.
47 48 49 50
, , ,

Concerning the drawbacks of automation development expenses can run 25-35 percent
higher than that of an ordinary structure. The Automation is about rate of profitability (ROI). In
a cold storage condition, specialists appraises structure with 8,000 or more bed plates can
create 50 percent reserve funds in relations to labor expenses and 60 percent energy gains

45
Khanuja, G. S., Sharath, D. H., Nandyala, S., & Palaniyandi, B. (2018). Cold Chain Management
Using Model Based Design, Machine Learning Algorithms and Data Analytics (No. 2018-01-1201). SAE
Technical Paper.
46
Trebar, M. (2015). RFID Logistic Management with Cold Chain Monitoring–Cold Store
Case Study. World Academy of Science, Engineering and Technology, International Journal of
Social, Behavioral, Educational, Economic, Business and Industrial Engineering, 9(3), 736-739.
47
Badia-Melis, R., Mc Carthy, U., Ruiz-Garcia, L., Garcia-Hierro, J., & Villalba, J. R. (2018).
New trends in cold chain monitoring applications-A review. Food Control, 86, 170-182.
48
Kim, S. H., & Han, J. S. (2014). Smart Cold-Chain Monitoring Automation System
Architecture based on Internet of Things. Journal of digital convergence, 12(12), 351-356.
49
Francisco, R. P., Campos, D. P., Frazzon, E. M., & Machado, R. L. (2016). On the application
of modelling and simulation to compare human-and automation-based order-picking systems.
IFAC-PapersOnLine, 49(12), 1062-1067.
50
Choi, H. W., Ryoo, M. C., Lee, C. S., & Kim, H. S. (2013). Secure Data Gathering Protocol
over Wireless Sensor Network. Journal of Digital Convergence, 11(12), 367-380.

27
Automation keeps warehouse clean, profoundly composed with item movement arranged from
accepting to delivery. There were horde issues amid the early years — issues plates,
temperature and build-up, lack of foresight and incorporation, and insufficient pre-execution
preparing and testing.

They can likewise work nonstop to meet due dates or specially appointed solicitations.
Precise picking: Automation enhances the exactness of outbound shipment. Indeed, even the
most industrious workers are inclined to committing errors. Outside of any blunders in their
programming, robots will play out their obligations faultlessly and without end. Issues like
uncommon temperature changes, breaking down equipment and human mistake are on the
whole normal.51

Long term stocking of food and other shopper items is one of the harsh elements of cold
chain this stage is much inclined to human mistake, yet it requires additional consideration
because of the time-touchy nature of solidified products. Indeed, automation can possibly
spare the day. VRFID chips and scanners give a method for following termination dates, as well,
and mechanized picking frameworks can find these lapsed products for inevitable transfer. By
utilizing developments like information technology and the IoT pair with mechanical
automation, producers can decrease their long haul storage needs by and large. By precisely
estimating purchaser propensities, arranging expected requests and gaining by just in time
deliveries, it's conceivable to hoist the production network – and, by augmentation, the client
encounter – to enhance the satisfaction levels.52

Cold warehouses needs control over humidity, temperature, as well as Co2 sensors. The
temperature, Co2 as well as humidity within structure have to be documented. Information got
from plant related to temperature is investigated day by day to discover the nature of
sustenance or quality of things set inside the plant. Along these lines plants help in shielding
the products from breaking down. Temperature inside the plant is kept up with the using PLC
temperature module controllers. 53

These controllers can keep up temperature at a plant by altering the stream of cooled air.
O2 Sensors are sending the weather condition information to PLC controllers. And complex
rationale will take the decision for how to keep up nature inside the capacity by opportune
working humidifiers and Co2 deplete from the capacity. Progressed humidifier and Co2 deplete

51
Choi, H. W., Ryoo, M. C., Lee, C. S., & Kim, H. S. (2013). Secure Data Gathering Protocol
over Wireless Sensor Network. Journal of Digital Convergence, 11(12), 367-380.
52
Badia-Melis, R., Mc Carthy, U., Ruiz-Garcia, L., Garcia-Hierro, J., & Villalba, J. R. (2018).
New trends in cold chain monitoring applications-A review. Food Control, 86, 170-182.
53
Budak, A., Ustundag, A., Kilinc, M. S., & Cevikcan, E. (2018). Digital Traceability Through
Production Value Chain. In Industry 4.0: Managing The Digital Transformation (pp. 251-265).
Springer, Cham. Fink, J., Salvetti, M., &

28
frameworks are introducing now a days to get the fast outcome with energy sparing as well.
54 55
,

As more changes happen in appropriation and assembling, cold chain automation will
change significantly. Changes in cold chain automation will be essential to working more quick
witted cold chains. However, rising innovations adjust to changes in production network
conditions. That is a totally unique story for cold chain network automation.

The “Man-made consciousness (AI, robots and the Internet of Things (IoT) “are in the
inventory network mechanization line up. This has potential to alter the work arrangements in
a cold storage facility.56

Below are four ways organizations and the cold supply chain can benefit from automation?
SAFER WORKING ENVIRONMENTS

With temperatures often reaching near fatal for humans the cold chain can be a difficult
workplace. However, by automation include designed frameworks, or pallets that bring cold
item out of the storage to be picked, organizations that for the most part transport full pallets
can give innovation a chance to accomplish a greater amount of the work. In this way, staff can
go work more secure, take larger obligations in the administration. Business still requires fork-
trucks work in cooler conditions; these fork-trucks can be fitted with warming mechanisms so
the administrators are shielded from the bone chilling condition.

IMPROVED INVENTORY MANAGEMENT

In cold chain operation temperature maintenance is essential to prevent degeneration as


well as wastage, Through employment of just-in-time (JIT) methodologies, ware housing
facilities can also handle orders which are placed at short notice also bring reduction in time in
which products has to be stored in automated facility. 57

54
Warhurst, J. (2015). Cold chain management–Understanding transient warming events
and best practices for storage, automation and transport. Cryobiology, 3(71), 555.
55
Kim, S. H., & Han, J. S. (2014). Smart Cold-Chain Monitoring Automation System
Architecture based on Internet of Things. Journal of digital convergence, 12(12), 351-356.
56
Saurav, S., & Potti, R. (2016). Cold chain logistics in India: a study. In Innovative Solutions
for Implementing Global Supply Chains in Emerging Markets (pp. 159-172). IGI Global.
57
Francisco, R. P., Campos, D. P., Frazzon, E. M., & Machado, R. L. (2016). On the application

of modelling and simulation to compare human-and automation-based order-picking systems.

IFAC-PapersOnLine, 49(12), 1062-1067.

29
The speed as well as unwavering quality of highly automated capacity plus recovery
frameworks (AS/RS) permits pharmaceutical and food and refreshment industry to effectively
enhance their service quality along these lines ensuring a more secure supply chain.

Moreover, a Warehouse Execution System (WES) clubbed with an AS/RS can provide firms
more control (First Expired, First out (FEFO) in inventory administration by providing complete
authority over movement and storage of inventory. This keeps cold ware houses from holding
items for a really long time and expiring, leading to item wastage.
REDUCED COSTS

A cold chain empowers organizations to use their existing space by storing more items
within the building footprint. Automating an existing office can increase the capacity limit of an
existing office by 30 to 50 percent. Automation can lessen the general building footprint by as
much as 50 to 100 percent, subsequently lowering its natural footprint alongside building
costs. 58

The correct usage of space reduces need for sophisticated cold storage this provides cost
and energy gains. Stockpiling and recovery machines (S/RMs) equipped with regenerative
braking also reduces storage space and provide energy gains. These systems provide firms
strength to store “surplus braking vitality or exchange it to the power framework” for use by
different machines with similar operations. 59
INCREASED EFFICIENCY

Manual refrigerated store room, staff require visit "warm-up" breaks, which can prompt
inefficiencies in time, work and energy use. Computerized automation can pick items in
refrigerated facility without the requirement of tea time. In addition, mechanization can
drastically increase picking precision which diminishes inefficiencies because of repackaging
and operational bottlenecks. 60,61

3.2 Cold chain industry in India


58
Saurav, S., & Potti, R. (2016). Cold chain logistics in India: a study. In Innovative Solutions
for Implementing Global Supply Chains in Emerging Markets (pp. 159-172). IGI Global.
59
Badia-Melis, R., Mc Carthy, U., Ruiz-Garcia, L., Garcia-Hierro, J., & Villalba, J. R. (2018).
New trends in cold chain monitoring applications-A review. Food Control, 86, 170-182.

Saurav, S., & Potti, R. (2016). Cold chain logistics in India: a study. In Innovative
60

Solutions for Implementing Global Supply Chains in Emerging Markets (pp. 159-172).
IGI Global.
61
Badia-Melis, R., Mc Carthy, U., Ruiz-Garcia, L., Garcia-Hierro, J., & Villalba, J. R. (2018).
New trends in cold chain monitoring applications-A review. Food Control, 86, 170-182.

30
In India investments in food and pharmaceuticals is growing constantly, the players in these
segments are searching for better approaches to make perishable things last more and cold
chain logistics is used to deliver products to distinctive parts of the world to take care of the
rising demand. Nonetheless, cost of development of facility has for quite some time been a
noteworthy worry for companies putting money on cold chain because of strict temperature
prerequisites, capital investments needed, and power reliance.

Cold chain logistics in India has more cost concerns and challenges in coordinating the
correct stockpiling and addressing special needs of each industry or segment, and so on.
Packaging remains one of the most crucial aspects of the cold chain process. The main reason
for this being that the packaging decides how safe and fresh the contents inside remain till it
reaches the end user. In cold chain logistics, the essential test is to adjust the packaging and
transportation cost; for this situation, the more protégé packaging the higher is the expense
caused. There has been a sharp ascent in the quantity of occurrences relating to cold chain
failures which are provoking governments to make stringent directions on laws related to
supply chains. This is one of the primary reasons why different cold chain suppliers, are putting
resources into extra certifications and joining strict practices to hold fast to the administrative
prerequisites.62,63,64

In India, cold chain logistics is normally treated as transportation, a part of logistics, and
they are not exclusive. As a self-evident certainty, cold chain logistics assumes an essential job
in logistics (Bremer, P. (2018).65

The industry was much buoyant in recent years with high growth in profits. Gross value per
unit as gross value on total output has also enhanced which shows enhancement of
productivity as well resource usage.

Developing at 28% every year cold chain industry in India is estimated to achieve value of
~USD 13 billion by 2017 through automation, modernization of existing facilities, through
investments from private as well as governmental and trade associations. India's cold chain

62
Carson, J. K., & East, A. R. (2018). The cold chain in New Zealand–A review. International
Journal of Refrigeration, 87, 185-192.
63
Carthy, M., & Villalba, R. (2018). New trends in cold chain monitoring applications-A
review. Food control

64
Gligor, D., Tan, A., & Nguyen, T. N. T. (2018). The obstacles to cold chain implementation
in developing countries: insights from Vietnam. The International Journal of Logistics
Management.

65
Bremer, P., 2018. Towards a reference model for the cold chain. The International Journal
of Logistics Management.

31
industry is so far progressing, but not in adaptation to new technologies. The Indian cold chain
exhibit is greatly partitioned with more than 3,500 associations in the whole structure.

Principle players contribute just ~8%– 10% of the cool chain industry. Most hardware being
utilized is out of date and single thing base. 11% of world's total vegetables creation is
accounted by India alone yet India's offer in overall vegetable trade is simply 1.7% ‒ 127 Million
Tons of milk was produced in 2012, yet cold storing facilitates is available for 70,000 Tons only.
India has around 5000 ware houses equipped with cold chain automation technologies and
mainly they are concentrated around Calcutta and Luck now. Infrastructural growth is expected
at 13 percent annually. 66,67

Key improvement drivers which fuse advancement in cold chain industry, are government's
drives, rising passage enthusiasm for ready to cook products. India. Cold chain logistics
infrastructure is less but income in comparison to other countries is more. There is creating
pattern towards multi-item storage facilities. 6869

According to industry checks, around 110 million metric transient things is transported in
India each time of this figure, around 100 million metric tons moves by methods for non–
reefer mode and only four million metric tons is transported by reefer. Larger piece of the
refrigerated vehicles in India is utilized for milk and milk things transportation. 70
Figure 2 – The digitalization of logistics

66
Singhal, R. and Saksena, S., 2017... Performance Assessment of the Storage and
Warehousing Industry in India. . Journal of Industrial Statistics,, 6(1), pp. 15-40..

67
Wararkar et al., 2016. Performance Analysis of Supply Chain Management Technique at
Textile Industry in India in Accordance with Indian Textile Market.. International Journal on
Textile Engineering and Processes, 2(3), pp. 34-39..

68
Ashok, A., Brison, M., & LeTallec, Y. (2017). Improving cold chain systems: Challenges and
solutions. Vaccine, 35(17), 2217-2223.

69
Sinha, A. K., Verma, A. R., Chandrakar, A., Khes, S. P., Panda, P. S., & Dixit, S. (2017).
Evaluation of cold chain and logistics management practice in Durg district of Chhattisgarh:
pointer from Central India. International Journal Of Community Medicine And Public Health,
4(2), 390-395.
70
Mudda, S. K., Giddi, C. B., & Murthy, P. V. G. K. (2017). A study on the digitization of
supply chains in agriculture-an Indian experience. Journal of Agricultural Informatics (ISSN
2061-862X), 8(1), 45-55.

32
3.3. Authors opinion on improvement of cold chain
quality

The key issues in cold chain logistics in India identify with administration of logistics also
management of temperature. Cold chain administration is characterized arranging and in
addition usage as well as observing of the procedure and in addition control. The improvement
of item quality, security also wastage decrease ought to be primary points. The key difficulties
confronting industry are absence of infrastructural facilities and significant use of limited
infrastructural facilities for milk and potatoes. Industry needs to adopt more automated
technocracies to sustain in the long run. 71

The industry lack in standards as well as protocols further many of the globally set
standards does not suit Indian conditions. This generates poor performance from systems.
Power failures are common in many Indian towns and so investments in backup become
necessary.

The colossal cost of transportation is an essential test for utilizing refrigerated vehicles. Key
drivers include technological access, rising enthusiasm for ready to use food, and increase in
infrastructure. The business in India in cold chain industry tumble to two class’s temperature
controlled warehouse and additionally temperature controlled vehicles. The vast number of
little players had affected the business and now current players are rising who are putting
resources into present day innovations.

Indian Cold chain operators need to leverage automation technologies to monitor


temperature, location and ETA related to shipments. This cuts down risk, enhances profitability
and reduces wastages and time consumption and reducing usage of temperature data loggers.
Providing automated real-time visibility enhances customer confidence in the organization.

71
Agarwal, S. (2017). Issues in supply chain planning of fruits and vegetables in agri-food supply
chain: A review of certain aspects. IMS Business School, Kolkata, India.

33
Demand to use Real-time as well as end- to-end cold chain are more from customer and this
can be used to enhance level of customer care. Clients appear to always request bring down
costs and more facilities. The inquiry isn't whether organizations need to automate; it's about
what organization needs to do give its clients. No business can survive and thrive without
providing the best accessible advancements. There's expanding development towards
automated case picking in innovation. Before beginning organizations need to comprehend the
fundamental components of automation, issues and traps, best practices, and furthermore
ought to do site visits to automated work places.

Cold storage with hard temperature control needs and the quality of cold products,
consistent human interaction was always a necessity. With next-gen technology on the rise, the
entire industry will see several key improvements. While staff is rightfully concerned that
robots will replace their jobs, automation ultimately enhances the typical supply chain in many
different ways:

As the cold supply chain continues to develop and turned out to be more minds boggling,
automation can calm a portion of the growing pains. Food, drink and pharmaceutical
organizations that choose automation will be ready to beat the temperature related quality
destruction and this can be advantage they can advertise, and reveal new efficiencies and cost
saving.72,73

Conclusion
The requirement for supply chain visibility is expanding. Supply chain visibility enables cold
chain pioneers to have more command over the transportation procedure and effectively
maintain a strategic distance from waste and recalls. By applying the most recent innovative
headways, service providers can meet progressively complex controls while additionally
motivating more confidence among providers and buyers. As even small changes in the
transportation plan can impact the product quality so assessment of risk becomes essential.
Transport strategy of the company has to be analysed this will help the firm to identify more
modal choice and offer better products to the customer.

72
Mudda, S. K., Giddi, C. B., & Murthy, P. V. G. K. (2017). A study on the digitization of
supply chains in agriculture-an Indian experience. Journal of Agricultural Informatics (ISSN
2061-862X), 8(1), 45-55.
73
Agarwal, S. (2017). Issues in supply chain planning of fruits and vegetables in agri-food
supply chain: A review of certain aspects. IMS Business School, Kolkata, India.

34
Each customer and person shipment needs to be considered important and efforts need to
be made for safe delivery of the product this will enhance the reputation of the company.
Industry needs to interact with customers and understand their needs. For these executives
has to meet with customers at regular intervals. This will also help the company to understand
customer concerns. Companies need to be aware of customer demands in the industry this can
do through, analysis of the environment in which company operates and through interaction
with customers. As the movement of products across the globe is increasing demand for cold
storage facilities is also changing firm’s needs to constantly look for new challenges and
opportunities.

Well developed digital platform is important for any country operating in the field cold
chain logistics. Pricing as well as billing are another aspects which has to be carefully planned.
Billing has to be automated and pricing should be competitive in relation to other players in the
industry. Another viewpoint which can affect is training given to the staff. As more automation
innovations are being used staff must be prepared on that. Conducts of staff do affect
observation about client satisfaction. Staff must be given training in billing and also
commitment with clients. Cold chain logistics is important for any country. But this is a sector in
which lot of care is needed to avoid wastage. Automated technology has helped to reduce risk
related to transportation. More adaptation of automation can positively influence quality of
service and this in turn can impact customer satisfaction as well.

35
LIST OF TABLES
FIGURE 1- DIMENSIONS OF SERVICE QUALITY.....................................................................................................15
Figure 2 – The digitalization of logistics.......................................................................................................39

LIST OF DRAWINGS

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