UNIVERSITY OF PETROLEUM AND ENERGY

STUDIES, DEHRADUN

DISSERTATION

COLD CHAIN LOGISTIC

Associate Professor
Mr. Akhil Damodaran
Submitted by:

Bachelor of Business Administration [Auto Marketing]

2013-16
 STUDENT DECLARATION

This is to certify that I have completed the Dissertation titled

COLD CHAIN LOGISTIC under the guidance of Mr. Akhil
Damodaranin partial fulfillment of the requirement for the award
of Degree of Bachelor of Business Administration from University
of Petroleum and Energy Studies, Dehradun.

This is an original piece of work & I have not submitted it earlier

elsewhere.

Date: Signature:

Place: DEHRADUN

Enrollment No.:

SAP ID: 500026957

BBA[Auto Marketing]
 CERTIFICATE

This is to certify that the Dissertation titled COLD CHAIN

LOGISTICs an academic work done by ABHINANDAN
submitted in the partial fulfillment of the requirement for the
award of the degree of Bachelor of Business Administration from
University of Petroleum and Energy Studies, Dehradun, under my
guidance & direction.

To the best of my knowledge and belief the data &information

presented by him in the project has not been submitted earlier.

Signature :

Name of the Faculty:

Designation:
 ACKNOWLEDGEMENT

The successful completion of the Dissertation would be

incomplete without the mention of the people who made it
possible.

I would like to take the opportunity to thank and express my deep

sense of gratitude to my Faculty Mr. Akhil Damodaran.

Mr. Akhil Damodaran provide his valuable guidance at all

stages, his advice and suggestions, positive and supportive
attitude and encouragement, without which it would not have
been possible to complete the Dissertation.

I would like to express my special thanks of gratitude to my

Faculty Dr. Sunil Barthwal and

Dr. AnkurkumarRastogi who gave me the golden opportunity to

do this Dissertation on the topic COLD CHAIN LOGISTIC which
also helped me in doing a lot of Research and I came to know
about so many new things I am really thankful to them.

At last, the whole hearted appreciation to the Targeted

customers of Dehradun for their cooperation during the period of
my Dissertation.
 Abstract

Cold chain logistics is a booming area in developing country like China. However, not all
cold chain programs receive positive results. There are drivers and barriers for the
development of cold chain logistics. The thesis focused on finding the drivers and barriers of
cold chain logistics for Third-party logistics (3PL) companies in China. Two case companies
were interviewed and related scientific papers were interpreted in order to find relevant drives
and barriers. Five significant drivers and three significant barriers were identified. Social
requirement, development of food industry, customer demands, technology innovation and
positive profits encourage the booming of cold chain logistics. While, the unregulated market
order, increasing number of competitors and high investment impede the development of it.
Generally speaking, the prospects for cold chain logistics are promising, in spite of some
barriers. 3PL companies could evaluate factors of cold chain and uncover the major barrier
for their own program, in order to achieve better result.
 INTRODUCITON

A cold chain is a temperature-controlled supply chain (Cold Chain, 2007). A wide variety
of food, pharmaceutical, and chemical products are degraded by improper exposure to
temperature, humidity, light or particular contaminants. Some products, such as
pharmaceuticals, require more than a simple cold chain. Such products require end-to- end
management and visibility of the required temperature parameters.

A cold chain is a temperature-controlled supply chain (Cold Chain, 2007). A

wide variety of food, pharmaceutical, and chemical products are degraded by improper
exposure to temperature, humidity, light or particular contaminants. Some products, such
as pharmaceuticals, require more than a simple cold chain. Such products require end-to-
end management and visibility of the required temperature parameters. The Cold Chain

The Cold Chain While globalization has made the relative distance between regions of the
world much smaller, the physical separation of these same regions is still a very important
reality. The greater the physical separation, the more likely freight can be damaged in one of
the complex transport operations involved. Some goods can be damaged by shocks while
others can be damaged by undue temperature variations. For a range of goods labeled as
perishables, particularly food (produces), their quality degrades with time since they maintain
chemical reactions which rate can be mostly mitigated with lower temperatures. It takes time
and coordination to efficiently move a shipment and every delay can have negative
consequences, notably if this cargo is perishable. To ensure that cargo does not become
damaged or compromised throughout this process, businesses in the pharmaceutical, medical
and food industries are increasingly relying on the cold chain.
The cold chain involves the transportation of temperature sensitive products along a supply
chain through thermal and refrigerated packaging methods and the logistical planning to
protect the integrity of these shipments. There are several means in which cold chain products
can be transported, including refrigerated trucks and railcars, refrigerated cargo ships as well
as by air cargo.
The cold chain is thus a science, a technology and a process. It is a science since it requires
the understanding of the chemical and biological processes linked with perish ability. It is
technology since it relies on physical means to insure appropriate temperature conditions
along the supply chain. It is a process since a series of tasks must be performed to prepare,
store, transport and monitor temperature sensitive products. From an economic development
perspective, the cold chain enables many developing countries to take part in the global
perishable products market either as producers or as consumers. The growth is associated
with a higher propensity to consume fruits, vegetables, fish and meat products. Increasing
income levels create a change in diet with amongst others a growing demand for fresh fruit
and higher value foodstuffs such as meat and fish. Persons with higher socioeconomic status
are more likely to consume vegetables and fruit, particularly fresh, not only in higher
quantities but also in greater variety. Consumers with increasing purchase power have
become preoccupied with healthy eating, therefore producers and retailers have responded
with an array of exotic fresh fruits originating from around the world. From a geographical
perspective, the cold chain has the following impacts:

Global. Specialization of agricultural functions permitting the transport of

temperature sensitive food products to distant markets. Enables the distribution of
vaccines and other pharmaceutical or biological products from single large facilities.

Regional. Can support the specialization of production and economies of scale in

distribution. This could involve large cold storage facilities servicing regional grocery
markets or specialized laboratories exchanging temperature sensitive components.

Local. Timely distribution to the final consumer of perishables, namely grocery stores
and restaurants.
Some domestic or transnational supply chains may only require one transportation mode, but
many times ground shipments are only one link in a combination of transport modes. This
makes intermodal transfers critical for the cold chain. Intermodal shipments typically use
either 20 or 40 foot refrigerated containers that are capable of holding up to 26 tons of food.
The container makes loading and unloading periods shorter and less susceptible to damage
both on the container and its cargo. The environments in these containers are controlled
electronically by either plugging into a generator or power source on the ship or truck. The
efficiency of cold chain logistics permitted the consolidation of cold storage facilities.2.
Emergence of Cold Chain LogisticsWhile global commodity chains are fairly modern
expansions in the transportation industry, the refrigerated movement of temperature sensitive
goods is a practice that dates back to 1797 when British fishermen used natural ice to
preserve their fish stock piles while at sea. This process was also seen in the late 1800s for the
movement of food from rural areas to urban consumption markets, namely dairy products.
Cold storage was also a key component of food trade between colonial powers and their
colonies. For example, in the late 1870s and early 1880s, France was starting to receive large
shipments of frozen meat and mutton carcasses from South America, while Great Britain
imported frozen beef from Australia and pork and other meat from New Zealand. This
process was incited by a shortage of meat production in Europe and substantial surpluses in
developing countries. By 1910, 600,000 tons of frozen meat was being brought into Great
Britain alone. The first reefer ship for the banana trade was introduced in 1902 by the
United Food Company. This enabled the banana to move from an exotic fruit that had a small
market because it arrived in markets too ripe, to one of the world's most consumed fruit. Its
impacts on the reefer industry were monumental.The temperature controlled movement of
pharmaceuticals and medical supplies is a much more recent activity than the shipping of
refrigerated or frozen food. Since the 1950s, logistical third party companies began to emerge
and institute new methods for successfully transporting these global commodities. Before
their emergence, cold chain processes were mostly managed in house by the manufacturer. In
the United States, Food and Drug Administration restrictions and accountability measures
over the stability of the cold chain incited many of these companies to rely on specialty
couriers rather than completely overhauling their supply chain facilities. Specialization has
led many companies to not only rely on major shipping service providers such as the United
Parcel Service (UPS) and Fedex, but also more focused industry that have developed a niche
logistical expertise around the shipping of temperature sensitive products. The potential to
understand local rules, customs and environmental conditions as well as an estimation of the
length and time of a distribution route make them an important factor in global trade. As a
result, the logistics industry is experiencing a growing level of specialization and
segmentation of cold chain shipping in several potential niche markets within global
commodity chains. Whole new segments of the distribution industry have been very active in
taking advantage of the dual development of the spatial extension of supply chains supported
by globalization and the significant variety of goods in circulation.The reliance on the cold
chain continues to gain importance. Within the pharmaceutical industry for instance, the
testing, production and movement of drugs relies heavily on controlled and uncompromised
transfer of shipments. A large portion of the pharmaceutical products that move along the
cold chain are in the experiment or developmental phase. Clinical research and trials is a
major part of the industry that costs millions of dollars, but one that also experiences a failure
rate of around 80%. According to the Healthcare Distribution Management Association about
10% of drugs are temperature sensitive. If these shipments should experience any
unanticipated exposure to variant temperature levels, they run the risk of becoming
ineffective or even harmful to patients.In all the supply chains it is concerned with, cold chain
logistics favor higher levels of integration since maintaining temperature integrity requires a
higher level of control of all the processes involved. It may even incite third party logistics
providers to acquire elements of the supply chain where time and other performance factors
are the most important, even farming. This may involve the acquisition of produce farms (e.g.
orange groves) to insure supply reliability. Temperature control in the shipment of foodstuffs
is a component of the industry that has continued to rise in relation with international trade.
As a growing number of countries focus their export economy around food and produce
production, the need to keep these products fresh for extended periods of time has gained in
importance for commercial and health reasons. The cold chain is also public health
issue since the proper transport of food products will reduce the likeliness of bacterial,
microbial and fungal contamination of the shipment. Also, the ability to transport medical
goods over long distances enables more effective responses to healthcare issues (e.g.
distribution of vaccines).3. Providing Temperature Controlled Environments The success of
industries that rely on the cold chain comes down to knowing how to ship a product with
temperature control adapted to the shipping circumstances. Cold chain operations have
substantially improved in recent decades and the industry is able to answer the requirement of
a wide range of products. Different products require the maintenance of different temperature
levels to ensure their integrity throughout the transport chain. The industry has responded
with the setting of temperature standards that accommodate the majority of products. The
most common temperature are "banana" (13 C), "chill" (2 C), "frozen" (-18 C) and "deep
frozen" (-29 C), each related to specific product groups. Staying within this temperature
range is vital to the integrity of a shipment along the supply chain and for perishables it
enables to insure an optimal shelf life. Any divergence can result in irrevocable and expensive
damage; a product can simply lose any market value or utility.Being able to ensure that a
shipment will remain within a temperature range for an extended period of time comes down
largely to the type of container that is used and the refrigeration method. Factors such as
duration of transit, the size of the shipment and the ambient or outside temperatures
experienced are important in deciding what type of packaging is required. They can range
from small insulated boxes that require dry ice or gel packs, rolling containers, to a 53 footer
reefer which has its own powered refrigeration unit. The major cold chain technologies in
providing a temperature controlled environment during transport involve:

Dry ice. Solid carbon dioxide, is about -80C and is capable of keeping a shipment
frozen for an extended period of time. It is particularly used for the shipping of
pharmaceuticals, dangerous goods and foodstuffs and in refrigerated unit load devices
for air cargo. Dry ice does not melt, instead it sublimates when it comes in contact
with air.

Gel packs. Large shares of pharmaceutical and medicinal shipments are classified as
chilled products, which means they must be stored in a temperature range between 2
and 8C. The common method to provide this temperature is to use gel packs, or
packages that contain phase changing substances that can go from solid to liquid and
vice versa to control an environment. Depending on the shipping requirements, these
packs can either start off in a frozen or refrigerated state. Along the transit process
they melt to liquids, while at the same time capturing escaping energy and
maintaining an internal temperature.

Eutectic plates. Also known as "cold plates". The principle is similar to gel packs.
Instead, plates are filled with a liquid and can be reused many times. Eutectic plates
have a wide range of applications, such as maintaining cold temperature for rolling
refrigerated units. They can also be used in delivery vehicles to keep temperature
constant for short periods of time, a process that can be suitable for deliveries in noise
sensitive areas or for night deliveries.
 Liquid nitrogen. An especially cold substance, of about -196C, used to keep
packages frozen over a long period of time. Mainly used to transport biological cargo
such as tissues and organs. It is considered as an hazardous substance for the purpose
of transportation.

Quilts. Insulated pieces that are placed over or around freight to act as buffer in
temperature variations and to maintain the temperature relatively constant. Thus,
frozen freight will remain frozen for a longer time period, often long enough not to
justify the usage of more expensive refrigeration devices. Quilts can also be used to
keep temperature sensitive freight at room temperature while outside conditions can
substantially vary (e.g. during the summer or the winter).

Reefers. Generic name for a temperature controlled transport unit, which can be a
van, small truck, a semi trailer or a standard ISO container. These units, which are
insulated, are specially designed to allow temperature controlled air circulation
maintained by an attached and independent refrigeration plant. A reefer is therefore
able to keep the cargo temperature cool and even warm. The term reefer increasingly
apply to refrigerated forty foot ISO containers with the dominant size being 40 high-
cube footers (45R1 being the size and type code).

4. Refrigerated Containers Refrigerated containers, reefers, account for a growing share of

the refrigerated cargo being transported around the world. While in 1980 33% of the
refrigerated transport capacity in maritime shipping was containerized, this share rapidly
climbed to 72% in 2013. The structure of global maritime shipping is thus adapting to service
the reefer trade implying a shift away from specialized ports, or specialized terminals within
ports, to standard container terminals. The reefer has become a common temperature-
controlled transport unit used to insure load integrity since it can accommodate a wide range
of temperature settings and accordingly a wide range of temperature sensitive products. Also,
it is a versatile unit able to carry around 20 to 25 tons of refrigerated cargo and is fully
compatible with the global intermodal transport system, which implies a high level of
accessibility to markets around the world. About 2.02 million TEUs of reefers were being
used by 2011, which represents about 5% of the global ISO container capacity. While a
regular 40 foot container costs around $5,000, a reefer of the same size is in the range of
$30,000. The cost difference is attributed to insulation and the refrigeration unit that keeps
the temperature constant. This implies that a reefer has less volume than a regular container
of the same size. While a regular 40 foot high cube container can accommodate a volume of
76 cubic meters, a reefer of the same size handles 67 cubic meters (12% less). This
shortcoming is compensated by the heavier loads that are usually carried in reefers. From a
manufacturing standpoint, all the world's reefers are made in China. In 2015, MCI, a subdiary
of Maersk will begin operations of a new reefer manufacturing plant in San Antonio, Chile.
This will convey the advantage of manufacturing reefers next to major export areas of
refrigerated cargoes (fruits such as oranges and grapes).Proper air circulation must also be
insured, implying that reefers have gratings on the floor and that at clearance of about 15 cm
must be kept between the cargo and the ceiling. Cold air coming out of the refrigeration unit
flows through the bottom part of the reefer and as it warms up it climbs towards the ceiling to
flow back to the refrigeration unit, usually 0.5 C to 3 C warmer. The heat is the outcome of
ambient temperature permeating into the reefer (this is particularly the case when ambient
temperature is high) as well as the cooling of the cargo if it was loaded in at a warmer
temperature than the one maintained in the reefer. All reefers are painted white to increase the
albedo (share of the incident light being reflected; high albedo implies less solar energy
absorbed by the surface). For instance a low albedo container can have its internal
temperature increase to 50 C when the external temperature reaches 25 C on a sunny day
while a high albedo container sees its internal temperature increase to only 38 C under the
same conditions. The refrigeration unit of a reefer requires an electric power source during
transportation and at a container yard. For the road transport of a reefer, either a clip-on
generator (called genet; it attaches to the upper front end of a reefer) or an underslung
generator (it attaches under a container chassis) are used. For modes such are maritime and
rail that can carry multiple containers, the capacity of the power system determines the
number of reefers that can be carried. Regular containerships have 10 to 20% of their slots
adapted to carry reefers, with some ships having up to 25% of their slots being dedicated
when servicing routes with a higher intensity of refrigerated cargo (e.g. Latin American
exports). The power is directly provided by the ship's generator. For rail movements, diesel
generators are used to provide power to about 8 reefer containers. These genset units have the
same dimensions than a 40 foot container and can thus use the same intermodal equipment
than intermodal containers. A common load out for unit trains is to have two stacked genset
units about to power a group of 16 reefers. For smaller reefer loads, or for shorter distances,
clip-on generators are commonly used. It is important to underline that the refrigeration units
are designed to maintain the temperature within a prefixed range, not to cool it down. This
implies that the shipment must be brought to the required temperature before being loaded
into a reefer, which requires specialized warehousing and loading / unloading facilities. A
new generation of reefers is coming online, which are equipped with an array of sensors
monitoring effectively the temperature and shutting the cooling plant when unnecessary. This
enables to improve the reliability of temperature control and well as extend the autonomy of
the reefer. The growth of the intermodal transportation of reefers has increasingly required
transport terminals, namely ports, to dedicate a part of their storage yards to reefers. This
accounts between1% to 5% of the total terminal capacity, but can be higher for
transshipment hubs or terminals in areas with an important reefer trade. The stacking
requirements simply involve having an adjacent power outlet, but the task is more labor
intensive as each container must be plugged and unplugged manually and the temperature to
be monitored regularly as it is the responsibility of the terminal operator to insure that the
reefers keep their temperature within preset ranges. This may also forbid the usage of an
overhead gantry crane implying that the reefer stacking area can be serviced by different yard
equipment. Even if reefers involve higher terminal costs, they are very profitable due to the
high value commodities they transport. Depending on the intensity of reefer use, reefer
activities can account for up to 20% of a container terminal energy consumption. The higher
costs of the reefer and the additional equipment and monitoring required involve higher
shipping rates. To be profitable, a reefer must be used 4 to 6 times per year as a revenue
generating movement. Due to the specific trades they service, reefers are often repositioned
empty or used as regular containers with their power supply turned off. As such they are
labeled as non-operating reefers. The reefer trade is a full container load (FCL) and point-to-
point only. Unlike the regular container trade, there is no consolidation or deconsolidation
function performed in reefer transportation, since they would increase the risk of damaging
what is being carried. Deconsolidation usually takes place either when the contents of reefers
are translated into domestic refeers or at the distribution center when orders are assembled for
customers (particularly for grocery).5. Cold Chains Operations Moving a shipment across the
supply chain without suffering any setbacks or temperature anomalies requires the
establishment of a comprehensive logistical process to maintain the shipment integrity. This
process concerns several phases ranging from the preparation of the shipments to final
verification of the integrity of the shipment at the delivery point:

Shipment preparation. When a temperature sensitive product is being moved, it is

vital to first assess its characteristics. A key issue concerns the temperature
 conditioning of the shipment, which should already be at the desired temperature.
Cold chain devices are commonly designed to keep a temperature constant, but not to
bring a shipment to this temperature, so they would be unable to perform adequately
if a shipment is not prepared and conditioned. Other concerns include the destination
of the shipment and the weather conditions for those regions, such as if the shipment
will be exposed to extreme cold or heat along the transport route. Using a reefer with
its own power unit usually mitigates such concerns.

Modal choice. Several key factors play into how the shipment will be moved.
Distance between the origin and the final destination (which often includes a set of
intermediary locations), the size and weight of the shipment, the required exterior
temperature environment and any time restrictions (perishability) of the product all
effect the available transportation options. Short distances can be handled with a van
or a truck, while a longer trip may require an airplane or a container ship. In this case,
the cost / perishability ratio becomes a factor in modal choice.

Custom procedures. If the freight crosses boundaries, custom procedures can

become very important, since cold chain products tend to be time sensitive and more
subject to inspection than regular freight (e.g. produce, pharmaceuticals and
biological samples). The difficulty of this task differs depending on the nation (or
economic bloc) and the gateway since there are variations in procedures and delays.
Customs issues are commonly identified as the most crucial in establishing reliable
international cold chains.

The "Last Mile". The last stage is the actual delivery of the shipment to its
destination, which in logistics is often known as the "last mile". Key considerations
when arranging a final delivery concern not only the destination, but the timing of the
delivery so the critical labor and warehousing space is available. Trucks and vans, the
primary modes of transportation for this stage, must meet the specifications necessary
to transfer the cold chain shipment. Since many deliveries of cold chain products,
particularly groceries, are taking place in an urban setting congestion and parking
difficulties Also important is the final transfer of the shipment into the cold storage
facilities as there is potential for a breach of integrity.
 Integrity and quality assurance. After the shipment has been delivered, any
temperature recording devices or known temperature anomalies must be recorded and
made known. This is the step of the logistical process that creates trust and
accountability, particularly if liability for a damaged shipment is incurred. If problems
or anomalies that compromise a shipment do occur, an effort must be made to identify
the source and find corrective actions.

Therefore, the setting and operation of cold chains is dependent on the concerned supply
chains since each cargo unit to be carried has different requirements in terms of demand, load
integrity and transport integrity. Because of the additional tasks involved as well as the
energy required for the refrigeration unit transportation costs for cold chain products is much
higher than regular goods. The ongoing rise in standards of living and economic
specialization will remain important drivers for years to come in the growing demand for
perishable goods and the cold chain logistics supporting their transport.6. Food
Transportation Any major grocery store around the world is likely to carry tangerines from
South Africa, apples from New Zealand, bananas from Costa Rica and asparagus from
Mexico. Thus, a cold chain industry has emerged to service these commodity chains.
However, the level of application of cold chain technology varies substantially according to
the level of development. About 70% of all the food consumed in the United States is handled
by the cold chains. For China, less than 25% of the meat and about 5% of the fruits and
vegetable is. Alone, the United States imports about 30% of its fruits and vegetables and 20%
of its food exports can be considered perishables. The uncompromised quality and safety of
this food is often taken for granted, despite being the main reason behind the ability to sell the
food. The cold chain serves the function of keeping food fresh for extended periods and
eliminating doubts over the quality of the food products. Still, about 25% of all food products
transported in the cold chain are wasted each year due to breaches in integrity leading to
fluctuations in temperature and product degradation. There is a variety of methods for the
transport of food products with the banana accounting for the world's most significant
commodity transported in the food cold chain with 20% of all seaborne reefers trade. Land,
sea and air modes all have different operations for keeping food fresh throughout the
transport chain. Depending on their speed, different modes will service different cold chain
markets. Innovations in packaging, fruit and vegetable coatings, bioengineering (controlled
ripening), and other techniques reducing the deterioration of food products have helped
shippers extend the reach of perishable products. For food products such as fruits and
vegetables, time has a direct impact on their shelf life and therefore on the potential revenue a
consignment may generate. Concomitantly, new transport technologies have permitted the
shipment of perishable products over longer distances. For instance, improved roads and
intermodal connections along the African coast reduced food transport time to European
markets from 10 days to 4 days. Moving away from ice refrigeration has allowed for much
greater distances to be traveled and has greatly increased the size of the global food market,
enabling many developing countries to capture new opportunities. Another efficient mode for
transporting foodstuffs is air travel. While this is a preferred form of travel for highly
perishable and valuable goods due to its ability to move much faster over longer distances, it
does lack the environment control and transfer ease of the ground and sea transports. Also,
during the flight the cargo is stored in a 15C 20C environment, but close to 80% of the
time the package is exposed to exterior weather while waiting to be loaded onto the plane or
being moved to and from the airfield. This is troubling considering the value of the food and
the importance placed behind quality and freshness. In order for this form of food transport to
experience growth among market users, more uncompromising strategies and regulations will
have to be embraced and enacted.Food transportation is an industry that has fully adapted to
the cold chain and can, despite the problems with air transport, be considered the most
resilient, particularly since a large majority of food products have a better tolerance to
temporary variations of transport temperatures. It is thecold chain distribution center that
represents one of the most efficient link in cold chain logistics by providing facilities where
vast amount of perishable food products can be received from a large amount of suppliers,
stored, sorted and assembled into loads bound for respective grocery stores. These facilities
usually have several storages areas with different temperature settings to handled regular
grocery goods at ambient temperature, produces, dairy, meat and frozen products. As a result,
small errors can be compounded without the concern of irreversible damage. For instance, for
the transportation of produces, for every hour of delay in the pre-cooling of shipments, an
equivalent one day loss of shelf life must be accounted.The usage of refrigerated containers
has particularly helped, since they account for more than 50% of all the refrigerated cargo
transported in the world. Source loading can be an important factor extending the shelf life
of a cold chain product since it is loaded in a reefer directly at the place of production without
additional handling and risks for further breaches in the chain of integrity. For instance,
source loading into a reefer can expand the shelf life of chilled meat by about 25 days (from
30-35 days to 55-60 days) from conventional methods and thus considerably expand the
market potential of the product.The efficiency and reliability of temperature controlled
 transportation has reached a point which allows the food industry to take advantage of global
seasonable variations, meaning that during the winter the southern hemisphere can export
perishable goods to the northern hemisphere while an opposite trade, generally of smaller
scale, takes place during the summer. Countries such as Chile have substantially benefited
from this and have developed an active agricultural and food transformation industry mainly
servicing the North American market during the winter, but also with several niche markets
such as wine. A similar issue concerns some African countries such as Kenya that have
developed a fresh produce and flower industries catering the European market. The fast food
industry is also an active user of cold chain logistics as every outlet can be considered as a
factory, with dozens of workers with schedules and shifts, inventory management and the
supply chain of components (many of which are temperature sensitive), and which are
assembly lines producing quality-controlled and high-volume products.

Evaluation of Existing Means

Cold chain management has two categories: managing equipment and managing people.

Evaluations of existing means can reveal issues like:

frequent breakdowns in cold chain (sometimes for a long time) because of the lack of
fuel, spare parts and back-up energy source;

lack of planning for maintenance and cold chain rehabilitation;

incorrect use of the Vaccines Vial Monitor (VVM) as a management tool; and

lack of planning for emergencies resulting in organisations not having effective cold
chain systems during responses.

These problems slow down improvement in routine vaccination services and hinder efforts to
eliminate and eradicate disease. To solve these problems, it is necessary to:

identify problems in the cold chain and their causes;

 undertake specific actions to remove these causes; and

strengthen management systems to prevent recurrence of the same or similar

problems.

(Taken from Mid Level Management Course for EPI Managers, Module 8: Cold Chain
Management, World Health Organisation, 2004)

Logistics

A rapid logistics evaluation can determine the status of materials and vaccines management at
field level, along with the status of the vaccine distribution strategy. Based on this
information, and taking into account the geography of the country, Expanded Program on
Immunization (EPI) managers can decide which option to use.

Whatever the chosen immunisation strategies, the cold chain structure is based on two
options: fast cold chain (see active cold chain) and slow cold chain (see passive cold chain).
(Taken from Mid Level Management Course for EPI Managers, Module 8: Cold Chain
Management, World Health Organisation, 2004.)

Example: See Logistics requirements for a vaccination site. (Source: Medecins Sans
Frontieres)

Some of the logistics activities related to cold chain management are:

shipping/customs clearance/storage;

vaccine management;

insulated shipping containers;

shipping/storage material (see passive cold chain paragraph).

Active Cold Chain (Materials for producing cold)

 These include active thermal systems that do not use any phase change materials (PCM) such
as water/ice or dry ice. These systems use mechanical or electric systems powered by an
energy source, combined with thermostatic control to maintain proper product temperatures.

The equipment used in active cold chain is split into two categories as follows:

compression refrigerators/freezers;

absorption refrigerators/freezers.

Adapted from Rushton, A. et.al.: "Handbook of Logistics & Distribution Management",

1998, Kogan Page Limited, London.

Compression Equipment

These are the models most commonly used. They run solely on electricity (220V / 110V or on
a battery). These models use little energy, require little maintenance, produce significant
amounts of cold quickly and are easy to repair. They are equipped with a thermostat for
setting the desired temperature. Some models require only eight hours of energy per day (ice
lined refrigerators).

Solar models are of the compression type (source of energy: solar panels, battery). They are
expensive and maintaining them requires specialized knowledge.

Note: These models may only be equipped with an HFC 134a coolant which is not harmful
for the environment (the ozone layer). This is valid only for compression models since
absorption models function with a water/ammonia/helium (or hydrogen*) mixture.

(*) Cannot be purchased locally given the risk that the hydrogen will explode.

Absorption models

The energy sources are: kerosene, gas, electricity (heating resistor). They use more energy
and require more maintenance. They produce less cold and are slower. However, they are
suitable for situations where electricity is not available or reliable.
 Since the cooling circuit is closed, it is not possible to fill it with gas or repair it if there is a
leak. However, these models are very reliable.

Models used to store vaccines are particularly well insulated and equipped with a temperature
stabilizing device, except for the kerosene model which does not have a thermostat (the best
known manufacturers are Sibir and Electrolux). They are used extensively for the Extended
Vaccinations Programs (EVP).

Domestic absorption models are generally insulated less well and it is occasionally difficult to
maintain a low temperature for storing vaccines, particularly when the external temperature is
high (higher than 32C).

The efficiency of the models that run on oil depends on the quality of the fuel. Decanting and
filtering are often required. A kit is available to modify certain burners, in order to improve
operating efficiency, despite oil of inferior quality.

Passive Cold Chain (Shipping/storage materials)

These include passive thermal systems that commonly use phase change materials (PCM)
such as water/ice or dry ice. These shipping systems are the most basic and cost effective.
Some of the basic systems in use are as follows:

freezers for province, county and sometimes at the township level;

refrigerators and, in some areas, the new water-jacket refrigerators for province,
county and township levels.

Some villages do not have access to a refrigerator for vaccine storage and therefore use:

cold/cool Boxes at all levels for transporting vaccines;

vaccine carriers to store vaccines during the immunization session or round;

isothermal packaging/control materials like paper to wrap the vaccines up when using
a vaccine carrier;
 ice packs or ice, as a last resort, to keep the vaccines at a temperature between +2C
and 8C;

a thermometer to measure the temperature inside the vaccine refrigerator and cold
boxes; and

a chart to record the day and time of the temperature of the vaccine refrigerator. The
chart should be used to record the temperature two times a day (morning and night).

For visuals see- Equipment

Insulated shipping containers

Insulated shipping containers are a type of packaging used to ship temperature sensitive
products such as foods, pharmaceuticals, and chemicals. They are used as part of a cold chain
to help maintain product quality or condition.

An insulated shipping container might be constructed of:

a vacuum flask similar to a "thermos" bottle;

fabricated thermal blankets or liners;

molded expanded polystyrene foam, similar to a cooler;

other molded foams such as polyurethane, etc;

sheets of foamed plastics;

reflective materials;

bubble wrap or other gas filled panels; and

other packaging materials and structures.

 Some are designed for single use while others are returnable for reuse. Some empty
containers are sent to the shipper disassembled or knocked down, assembled and used, then
knocked down again for easier return shipment.

Insulated shipping containers are part of a comprehensive cold chain which controls and
documents the temperature of a product through its entire distribution cycle. The containers
may be used with a refrigerant or coolant such as:

dry ice

gel packs (often formulated for specific temperature ranges)

Some products (such as frozen meat) have sufficient thermal mass to contribute to the
temperature control, etc

A temperature data logger is often enclosed to monitor the temperature inside the container
for its entire shipment.

Labels and appropriate documentation (internal and external) are usually required.

Personnel throughout the cold chain need to be aware of the special handling and
documentation required for some controlled shipments. With some regulated products,
complete documentation is required.

Installation, Care and Maintenance

Installation Points to note

Respecting certain parameters concerning position helps the refrigerator function well:

out of the sun and away from any source of heat;

in a well aerated area, cool if possible, but not ventilated (risk that the flame will be
blown out in the case of a model running on oil or gas);
 with a space of 30 to 40 cm around the equipment in order to allow air to circulate and
facilitate maintenance;

placed on wedges for protection against humidity; and

installed horizontally (absorption models) to ensure good circulation of the cooling

gas. Use a plumb line or an air bubble level.

Care/Maintenance Points to note

Maintenance is essential for ensuring that the equipment runs well, but having trained,
conscientious and stable staff is the best guarantee of this.

A minimum amount of spare parts (glass, wicks, etc.) must be available. In the case of
maintenance and small repairs, the staff must be specially trained; in the case of major
repairs, a refrigeration technician is required.

Storage: specific rules apply depending on the type of equipment (chest or front
opening) and the products to be stored in it.

To simplify maintenance and repair, cold chain equipment managers and donors are advised
to procure the same types and models of equipment. The costs of spare parts, tools, repairs,
and fuel to run the equipment must not be overlooked during budget preparation. As the pie
chart shows, these costs are much more significant over a ten-year period than the initial cost
to purchase cold chain equipment.

Shipping, Customs Clearance and Storage

Customs

Regarding the customs clearance of the vaccines, the same procedures as described in the
Customs topic apply, but with additional specific requirements linked to vaccine
management. Note that requirements vary from country to country.
 The first step in the customs clearance process, is contacting the following entities to obtain
or verify the import procedures:

national regulatory authorities (NRA) or head of customs in the destination country.

To be cleared, the vaccines must have received marketing authorisation and a release
certificate from the national regulatory authority;

WHO office: vaccines must meet WHO recommended norms and standards (pre-
qualification process); and

local Ministry of Health (MOH): depending on country specific requirements, the

MOH may issue a letter approving the shipment.

As reference, usually the general steps are:

submission of vaccine shipping documents (as soon as they are received) with a
request to customs authority for the provisional clearance of shipment to the nominated C&F
agent;

C&F agent immediately processes the shipping documents as per established rules
and regulations of government and contacts customs and airlines to coordinate the arrival,
transport, checking and safe storage of the vaccines;

continuous contact is maintained well in advance with the concerned airlines to get
accurate and updated information of the flight arrivals of the shipments;

once the flight arrives, immediate action is taken to release and take delivery of the
vaccine shipment and to safely transport the vaccines to the cold storage locations;

C&F agent checks the cold-chain monitor(s) and other mechanism (if necessary) to
identify and reconfirm that the vaccines arrived in good condition before removing the
shipment from the airport;

irrespective of the condition of the vaccines at the time of clearance, the C&F agent
clears the vaccines and delivers as per regular procedures;
 the C&F agent informs the concerned official(s) in a timely manner and arranges for
the cold room and the required staff to be ready and available to receive/store the vaccines;

there should be a system in place to arrange to open the cold room and liaise/contact
with the store keeper/cold room staff at any time (24-hours/day, including weekends and
holidays);

in the event of emergencies or unplanned shipments, if the cold room is inaccessible,

the C&F agent is expected to arrange safe and appropriate storage of vaccines at the airport
cold room or alternative location, ensuring proper temperature for storage;

under no circumstances can any vaccine be left unattended, or outside of the cold
room in an open space;

unannounced shipments are cleared in time, like all other shipments;

a reliable transport system including a refrigerated/insulated van should be made

available at all times for effective transportation and delivery of the vaccines; and

in emergencies, the use of charter flights is very common. There are separate rules,
regulations, systems and procedures for clearance of charter flights with vaccines including
obtaining special permission for landing, fly over etc. and various no objection certificates
(NOCs) from Ministry of Civil Aviation, etc.

Shipping

This involves:

Cool Box Vaccine Carrier

Isothermal Packaging

Control Materials

Monitoring Means
 All shipping documents for vaccine shipments should be sent in advance of arrival of
shipment. The number of days will be determined by the destination country rules. This
requirement has been established to facilitate the pre-customs formalities for clearance of
vaccines to ensure prompt clearance of the heat or cold sensitive items upon arrival. Some
countries have an exceptional early release procedure pending document processing during
emergencies.

Documents that accompany shipments

The following original documents must accompany the consignment when it is shipped, and a
copy of these must also be placed in the box numbered one:

airway bill;

suppliers invoice;

packing list;

lot release certificate issued by the national regulatory authority of the country of
manufacture for each lot of vaccine supplied; and

any other documents, certificates or instructions specified in the individual contract.

The shipping carton containing the documents should be clearly labelled with the words
Containing vaccine shipping documentation.

Due to the sensitive nature of vaccines, shipments are handled with utmost diligence and
special care. Vaccines are mostly transported by air.

The following information shall be stated on the airway bill:

consignees name, address and telephone number;

purchase order reference;

consignees requisition reference;

 type of vaccine and quantity;

instructions to: Telephone consignee upon arrival (repeat telephone number); and

handling information: Medicines Vaccine For human use Highly perishable

Not to be delayed."

For all vaccines other than oral polio vaccine (OPV), the following instruction should be
stated in the AWB:

Throughout shipment, pending reshipment and prior to collection by the

consignee, the vaccine must be stored at +2C to +8C (i.e., +35F to +50F).

For OPV, the following instruction should be stated in the AWB:

Throughout shipment, pending reshipment and prior to collection by the

consignee, the vaccine must be stored at -15C to -25C (i.e., +5F to -13F).

Airlines web online tracking is checked before the arrival of every vaccines shipment to see if
there is any change in schedule. Constant touch with airlines and customs and forwarding
agents is maintained.

Storage

After arrival vaccines are cleared and immediately offloaded from the aircraft and directly
loaded onto trucks for further transportation to the cold storage facility. Delivery of vaccines
at the cold storage is strictly monitored to ensure maintenance of the cold chain in an
appropriate manner. Some countries have special requirements for vaccines. There is
therefore no standard clearing process but generally the following will apply.

Vaccine management

The vaccines must be kept at the correct temperature when being transported. Maintenance of
the cold chain requires vaccines and diluents to be:

collected from an airport as soon as they arrive;

 transported at the correct temperature from the airport and from one store to another;

stored at the correct temperature in stores at the provincial, county, city, township or
village health centres;

transported at the correct temperature to outreach sites; and

kept cold during immunization sessions or rounds.

The figure below illustrates the cold chain from manufacturer to end user (child to be
vaccinated), including all steps along the chain, in order to ensure a proper cold chain.

Diagram 1: Cold chain

Distribution

From a logistics point of view, the same principles of distribution apply as in general logistics
distribution. These principles are covered in the Distribution topic with the exception of the
use of specialised carriers and containers as discussed in this topic. The distribution of cold
chain should be built into the organizational distribution plan to maximize on the limited
transport facilities available during emergencies.

In the cold chain the logistician must pay particular attention to the vaccine arrival and
temperature control.

Vaccine Arrival

Every international shipment of vaccines from a manufacturer should include a blank vaccine
arrival report (VAR) form, as shown on the following page. When the shipment arrives, the
individual responsible for monitoring vaccine arrivals and storage fills in the VAR and gives
a copy to the local office of the procuring agency. The report documents the condition of the
shipment and the quantities received, and it confirms that all other necessary documentation
 is included. If problems occur, the VAR can be the basis for initiating corrective action or
making claims.

Vaccine Arrival Report (WHO/UNICEF) The logistics function must avoid:

shipment of vaccines by way of airports that lack cold rooms;

consignments to the wrong party;

shipment of the wrong vial sizes;

shipment of the wrong quantity of vaccines and diluents;

shipment of vaccines that are due to expire soon;

arrival of vaccines on weekends or holidays;

shipment of vaccines without:

advance notification

sufficient icepacks

cold chain monitors

documentation needed for customs clearance (Taken from Immunization

Essentials A Practical Field Guide, USAID, 2003)

The organisation of supply within a country is an integral part of the overall cold chain
system, and should be properly planned and executed. There are two types of supply
procedures:

vaccines and other supplies to be collected by lower level institutions; and

supplies to be delivered to the lower level institutions.

See Organisation of Vaccine supply for details.

Temperature Control

Some vaccines are very resistant to heat and are shipped from the manufacturer without
insulation. They are, however, damaged by temperatures above +48C. A special device is
therefore used to monitor temperatures during shipment. One indicator is included with each
shipment of minimum doses. The shipping indicator should be kept with vaccines if they
have to be stored outside the cold chain.

In cold climates, vaccines should be protected from freezing during transport. They should
therefore be packed with a cold-chain monitor and Freeze Watch TM, according to the
procedures. To avoid damage to the vaccines the staff must know how temperatures are
monitored and understand how to interpret temperature readings (indexes).

See some Tools for Monitoring Temperature.

Example: Table 2: Recommended temperature ranges

Vaccines Stages of the Maximum Minimum
cold chain temperatures temperatures

OPV, BCG, All + 8C -20C

measles, yellow
fever

Hepatitis B, DTP All + 8C + 2C

DT, TT Transport + 40C + 2C

DT, TT Storage + 8C + 2C

Diluent Transport Ambient + 2C

Diluent Storage Ambient + 2C

Diluent Point of Use + 8C + 2C

To retain maximum potency a vaccine should be kept in its safe temperature range.
 Quality Control Tools:

Vaccine Arrival Report (WHO/UNICEF)

How to choose appropriate Cold Chain Transport (UNICEF)

Choosing a suitable source of energy (WHO)

Estimating required cold chain capacity (WHO)

Tasks for Cold Chain Officers and Supervisors (WHO)

Refrigerator Temperature Monitoring Chart (WHO)

 REVIEW OF LITERATURE

A. Evolution
According to Fernie and Sparks [2], cold chains have been evolving since 1980s. Earlier, cold
chains simply meant storing at a specific temperature in warehouses and refrigerated vehicles.
There was no awareness of integrating the supply chain links and as a result billions of
dollars worth of losses occurred every year.

B. Storage Facilities
Warehouses are a critical component in the Cold Chain Logistics. Duiven and Binard [3]
describe cold stores or refrigerated warehouses as facilities for handling and storing
perishables under controlled temperatures in order to maintain product quality.

C. Food Packaging
Packaging is a necessary element because the proper insulation materials can keep the
temperature of the product as a cushion while they are in the weak links of the supply chain.

D. Distribution: Challenges
Apart from food production, distribution of food is a big business [4]. Transport is an important
link in the cold chain as temperature maintenance and safety enhance shelf life of perishable
food. The takes in food, pharmaceutical, and chemical cold chains are high.

E. Technological Aspect of Cold Chain

Sahin et al.[5]establish that the trade related to temperature sensitive food has seen a surge in
recent years; consequently international trade continues to grow at 6% per annum [6].

F. Technology: Indispensable Element in Cold Chains

Rathore and Saxena [7]explain the transit of perishable food products like fruits and
vegetables, mild and milk products, meat and fish and other frozen food such as ready-to-eat
food, etc.

FACTORS AFFECTING EFFECTIVENESS OF COLD CHAIN

India has a huge opportunity to become a leading global food supplier if only it has the right
marketing strategies and of course agile, adaptive and efficient supply chain. In spite of high
production of food, the demand for food remains highly unfulfilled within the country and
outside.
Viswanadham [8] has identified the following constituents of a Cold Chain:
Pre-cooling facilities
Cold Storages
Refrigerated Carriers
Packaging
Warehousing
Information Management systems (Traceability and Tracking etc.)

The huge wastage of perishable food occur due to factors like: lack of pre-cooling and storage
facilities, dearth of refrigerated carriers, fragmented supply chains, poor scarce application of
latest tools and technologies, poor product knowledge and lack of professionals. There is
also a need to bring in efficiency in existing cold chain networks. Without an efficient
supply chain there is a high cost of wastage for the companies. The cold chain network can
be made efficient by development of basic infrastructure.
 RESEARCH METHODOLOGY

Research methodology is a way to systematically solve the research

problem. It may be understood as a science of studying how research is
done scientifically. It is necessary for the researcher to design his
methodology for his problem as the same may differ from problem to
problem.

WHAT IS RESEARCH? :

Research is scientific and systematic search for pertinent information on a specific

topic.

According to Clarifford Woody (1944) research comprises defining and redefining

problems, formulating hypothesis or suggested solution, collecting, organizing and
evaluating data, making deductions and reaching conclusions and last carefully
testing the conclusion to determine whether they fit the formulating hypothesis.

Research, is an original contribution to the existing stock of knowledge, making for

its advancement. It is the pursuit of truth with the help of study, observation,
compassion and experiment. The researcher themselves a part and parcel of the
object of the study. Our search for definition of methodology would require us to
know the nature of the course pursued by research scholars in social sciences. The
procedures by which researchers go about their work of describing,
explaining, predicting, phenomenon are called methodology.

All the methods used by the social research in their fact & finding mission constitute
methodology. Methodology is defined as The study of methods by which gets
knowledge ,it deals with the cognitive processes imposed on research by problems
arising from the nature of its subject matter. The motive of researcher is to uncover
truth or fact method comprises the procedure used for generating, collecting, and
evaluating the data. Methods are ways of obtaining information for assessing
explanations .

Methodology thus prepares the investigator to adopt techniques to neutralize the

scientist to uncover truth, find the explanation for the assurance of a similar
 phenomenon .Research methodology is the description, explanation and justification
of various methods of conduct of research.

Research Design

A descriptive research design is selected by the researcher as in the project of Cold

Chain Assessment . descriptive study is undertaken in many circumstance .when
researcher is interested in knowledge the characteristics of the groups such as age,
sex, educational level, occupation or income, interested in knowing the proportion
of a given population who have behaved in a particular manner; making projection
of a certain things ;or determining the relationship between two or more variables ,
descriptive study may be necessary.

UNIVERSE

There are three categories of workers

Highly skilled workers

Skilled workers
Semiskilled workers
The universe of research is skilled Workers.

Type of Research

The research methodology is adopted for this research work is descriptive type
wherein 20 workers & 30 company executive of were taken as sample unit.

Methods of data collection:

1. Primary Source

2. Secondary Source

Primary Data:-
 It is the data which is collected for the first time by investigator to serve a particular
purpose, such a data is of original nature & is first hand information. The sources
from where these data can be collected are known as a primary source.

Methods of Primary Data Collection:-

1. Questionnaire
2. Interview
3. Observation method
 DATA ANALYSIS AND INTERPRETATION

1. Is any other incentive/scheme required to motivate the entrepreneurs to enhance

investment in developing cold chain and modernization to meet the state of art
standards.

Agree 60
Disagree 40

Chart Title

Disagree; 40%

Agree; 60%
2 Please furnish details about storage capacity and capacity utilization

Sr. Year Storage Capacity Capacity Utilization

No
1. 2012-13 2000 1000
2. 2013-14 5000 2000
3. 2014-15 7000 4000

Storage Capacity

14%

50%
36%
3. Please indicate your assessment of the impact of fiscal incentives (so far provided by the
Government for development of cold chain infrastructure) on consumers, producers and
Economy as a whole. The assessment of the impact may be explained separately for each
component of the cold chain infrastructure.

Agree 56

Disagree 44

Chart Title

Diagree; 44%
agree; 56%
4. Amount of Fiscal Incentive availed by the Cold Chain Projects
Sr.No. Year Excise Custom Duty Sales Interest Subsidy Others
Duty Tax
1. 2012-13 50 30 20 40 20
2. 2013-14 60 55 45 55 40
3. 2014-15 75 75 60 85 60

1 2012-13
Excise Duty Custom Duty Sales Tax
Interest Subsidy Others

13%
31%

25%

13% 19%
5. Amount of Financial Assistance received for the cold chain project from different Central & State
Agencies

Sr.No. Year NHM NHB MFPI State Govt Others

1. 2010-11 20 30 40 50 60
2. 2012-13 35 40 55 60 75
3. 2013-14 45 55 65 75 85
4. 2014-15 55 65 75 85 95

1 2010-11

NHM; 10%
Others; 30%
NHB; 15%

MFPI; 20%
State Govt; 25%
6. Suggestion if any for introduction of any other scheme to boost the Cold Chain Infrastructure.

Agree 58
Disagree 42

Chart Title
agree Disagree

42%

58%
8 Suggest any other incentive required which according to you would motivate the entrepreneurs to
enhance investment in developing more cold chain

Agree 75
Disagree 25

Chart Title

Diagree; 25%

agree; 75%
7 Please furnish details about storage capacity and Capacity utilization

Sr. No Year Storage Capacity Capacity Utilization

1. 2012-13 1000 500
2. 2013-14 2000 1500
3. 2014-15 3000 2500

Storage Capacity

17%

50%

33%
8 Details of Production, Domestic Sales, Exports and Imports

Sr. Year Production Sales Export Imports

No.
Qty Val Qty Val Qty. Val Qty Val
1. 2012-13 200 100 20 100 100 50 25 50
2. 2013-14 10 50 20 35 20 50 20 30
3. 2014-15 10 20 30 50 60 40 50 70

1 2012-13

8%
4%
8% 31%

16%

16%
16% 3%
9. Please furnish list of Items/Products along with the ITC(HS) Code traded in the cold chain project.

Agree 65
Disagree 35

Chart Title

Disagree; 35%

agree; 65%
 CONCLUSION

In cold chain distribution channel, connections between steps are weak links due to the cold
products characteristics. Risks of cold chain distribution always exist in the whole distribution
process, especially in these weak links. Thus, cold products characteristics is the reason for their
quality risk.

Cold chain products characteristics lead to complex requirements during the whole
distribution process. These requirements have a single aim: to keep the temperature steady. Any
small mistake can lead to serious consequences from quality damage to product waste. In
distribution channel, transport network, transport mode, transport pattern, city logistics and
warehouse structure are five aspects which connect the ordinary distribution process. Their way
of operation can determine the efficiency and result of distribution process. Weak links in
these processes have a great chance to cause quality damage or other problems. Therefore, in
cold chain distribution process, there are several weak links which may cause some problems with
product quality.

Several kinds of risks in general supply chain may lead to different potential consequences.
Risk in distribution channel is a category in supply chain risks. These risks have different
possibility to happen, which depends on the management method of distribution. Thus,
Risks in distribution channel always exist and need to be carefully managed and dealt with.
In cold chain distribution process, risks also exist like ordinary distribution risks. More
over, it shares more risks which related to temperature control of cold products.

Weak links of cold chain and risk of cold chain can lead to results of risks in weak links of cold
chain distribution channel. In order to manage and control theses risks, risk assessment is
needed to evaluate and analyse each and every single risks. In risk assessment process,
risks must be identified firstly. Then to their different properties, measures need to be take in
order to reduce their chance of happening. Strategy and methods need to be carefully chosen
in order to have the best and fair results. Then managers can make choices and decisions
according to these results assessment is going to help a lot with finding and dealing with risks
in weak links of cold chain distribution channel.

- What kind of weak links exist in distribution process of cold chain?

Currently cold chain distribution process is equipped with refrigerated systems, and these systems
are operated well in most circumstances. The first kind of weak link in distribution process is cooling
system bugs occasionally.

Human handling in delivery and storage process is another weak link exist in cold chain
distribution process. Human handlings efficiency and results are greatly depend on each worker.
Therefore, it is hard to control the outcome of human work and this is a weak link in cold chain
distribution process.

Resource management of different participants is the third weak link since the whole cold chain is
composed by several participants. Even if there is a certain general criteria for cold products, it is still
hard to manage how each participants dealing with it. As a consequence, it is hard to track which ones
responsibility is for the quality damage.

Product package is the fourth weak link since different materials and the way package went can affect
the temperature keeping. Some package offers a better condition for cold products while others do not.
In other circumstances, too easy to spoil the package can bring difficulty in transportation. Maybe
some small actions can make damage of package and it will cost more cold products to fulfil the
certain needs.

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