Easyfresh Newsletter 07091520.pdf

Easyfresh Newsletter
Monday 7th September, 2015
“Logistics is
the hard part of
fighting a war“
Caught up in the reefer logistics fight ?
EASYFRESH NEWSLETTER Nr.07091620
”Amateurs study strategy, professionals study logistics,” US Army General Omar Bradley famously said. Bradley’s
declaration was of course an overstatement, but it was also a necessary correction. Logistics — the mobilization of
vast resources and, most importantly, people — was the lifeblood of a winning military strategy.
As a matter of fact, supply chain complexity in reefer transportation has grown exponentially. Contributing factors
include greater product choice and configurations, more customer segments, shorter order cycles demanded,
extended production chains and a much wider geographical spread.
To stay ahead of the competition, remove complexity from your supply chain to get rid of inefficiencies and layers
of hidden costs. Skip the battles, concentrate in your “war” (product) : We, in Easyfresh, can support simplification
of your cold chain by providing best “reefer oriented” practices and solutions, lean-oriented methods and on-theground
reefer knowledge to the supply cold chain planning global and regional process.
“Thinking will
not overcome
fear, but action
will”
“Apathy” vs “activism” in the cold chain
Certain exporters or importers , mostly significant trading and diversified groups are often blamed for poor
managerial accountability and limited or inefficient control of their fresh and frozen cargo logistics.
Attempts to encourage “activism in logistics” tend to focus on large retailers or suppliers, regardless of their size,
used to certain routes and systems and being rather reluctant to apply a real change, but meantime analyzing and
studying theoretical options, but with limited practical measures or actions.
However, some producers, and important retailers are willing to take action and fill the gap by linking origin and
destination, applying innovative logistics solutions and skipping trade barriers.

“Seek your
connection and
stay
connected”
Key determinants of container shipping, port and country connectivity
The position of a port or a country within the global liner shipping industry is very dependant on following factors:
Its geographical position, its captive or local cargo flows, its port facilities and the legal framework for liner
shipping:
Geographical position : Lying close to the main shipping routes or next to a large trading nation makes it easier for
a port to attract liner companies and become a port of call. The Caribbean islands, for example, are closer to the
main East–West and North–South routes than most SIDS in
the Indian Ocean or the Pacific.
Port characteristics : Shipping lines will be more inclined to connect a country’s ports to their global liner network if
they can rely on modern infrastructure and efficient operations.
This issue is also closely linked to the determinants of various transport cost. If the port is considered to be costly
from the carrier’s perspective ,the carrier will also skip it and not call, or increase its
freight charges to the shipper.
Shipping rules and local legal issues : By liberalizing the cabotage, reducing bureaucratic barriers, and simply
easing access, shipping lines will trend to call at those more “friendly” ports.
Reefer trades in South America , an overview
“What happens
is not as
important as
how you react
to what
happens”
There has been impressive growth in the demand for reefer exports from the west and east coasts of South
America since 1995, and today, they export 30% of the global reefer trade.
The export volume for the two coasts is the same, but the export composition differs. The export
value for the east coast was 40% higher than that of the west coast due to its high share of meat exports.
However, the export value for the west coast is expected to increase due to the recent recovery in exports of fish, a
promising market with a high demand from Russia and the Far East.
The most rapid increase in reefer exports since 1995 was observed on the east coast, where export volumes have
grown three times as fast as those on the west coast, and Peru and Brazil are the fastest growing exporters.
At present, Peru’s share of overall reefer exports is insignificant, but it is still important to bear in mind the
country’s potential for growth in perishable production. The main export destination for both of the subregions is
Northern Europe. Chile and Brazil, however, are the least dependent on this market. They have higher export
shares in Asia and the Far East, regions which are becoming more important, because of the rapid growth of their
populations and the increasing demand for perishable goods.
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The east coast is more dependent on these emerging markets, while the west coast relies more on markets that are
closer to home, that is to say, in America.
The most activity takes place on the west coast, with a marginally lower frequency of port calls than Africa.
Ecuador has the strongest market presence and highest volume shipped by conventional reefer vessels in South
America, but even this market is facing a drop in market shares because of container lines.
The container capacity on the principal trade lanes from South America has grown significantly since 2000 and the
main destination is Asia. The east coast offers a higher capacity on the Europe trade routes compared to the west
coast, while the latter offers a larger capacity to North America. Services from
the north coast have the smallest capacity, but have seen a growth in reefer slot shares, particularly on the trade
lane to Europe.
Despite the old debate over conventional reefer and containerized vessels, both modes are
essential for reefer exports and cold chains in South America. They should aim to complement each other
rather than compete. This should ensure the flow of the cold chain and improve export competitiveness
in the region.
With the opening of the widened Panama Canal , the capacity of vessels on the west coast is expected
increase. In the future, vessels are expected to be the same size, or perhaps even bigger, as the vessels operating
on the east coast.
“ An
investment in
knowledge
pays the best
interest”
Food processing and nutrition
The nutrient value of food can be changed by the way it is processed, transported, cooked and stored. Food
processing can destroy the water-soluble B-group and C vitamins. However, processing and cooking can also make
it safer.
Almost all food is processed in some way before it is eaten. Commercially, the main reasons to process food are to
eliminate micro-organisms (which may cause disease) and to extend shelf life.
Some vitamins are more stable (less affected by processing) than others. Fat-soluble vitamins are more stable (K-
A-D) during food processing, transportation and storage. In fact a variety of things can happen during the growing,
harvesting, carriage, etc of food that can affect its nutritional content. Processes that expose foods to high level of
heat, light or oxygen cause the greatest nutrient loss. Professional dealing with cargoes at coldstores, crossdocking
stations or container or truck loadings are utmost important.
Use expertise in reefer logistics when shipping your foodstuffs !!
For more info contact info@easyfresh-logistics.com
“The best
supply chains
are not just
fast and costeffective.
They
are also agile
and adaptable”
What is the supply chain under temperature controlled environment ?
The cold chain is the flow of fruit, vegetables, seafood, etc from their point of origin to the factory, packing station
or warehouse gates, then through these as work-in-process, and finally out of the cold storage and packing
stations as ready-to –eat produce to be delivered to the final customer.
During the whole process, from beginning to end, inventory needs to be stored in warehouses and DCs (distribution
centres) and then transported as needed. All of this involves a huge amount of computerized information about the
location of inventory and goods, its expected arrival time at the next point, etc. This information has to be shared
across many different companies and IT networks: suppliers, customers, third party logistics providers and the
producer itself.
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The management of this information is critical to the success of the business.The aim of SCM in reefer trades is to
collaborate with all the supply chain partners to improve the visibility and velocity of the process. This includes ·PLs
that shall provide the correct “mentality” to the operation and the link with shipping lines (these more focused to fill
the space on the ships vs a customer-focus of the reefer 3PLs).
Linked to it, the words “reefer logistics” refer to the practical issues surrounding transportation, warehousing and
inventory or fresh/frozen goods management. Where there is an external focus it’s more or less a synonym for
SCM, but it can also have an internal focus, getting goods from site A to site B inside a company at different stages
of the business process.
The term “reefer logistics” is also used in smaller companies where “supply chain management under temperature
controlled environment” seems too grand.
“We cannot
dream to
create a
sustainable
culture, with
any but
sustainable
souls of the
buyers”
Sustainable seafood in supermarkets
More supermarket shoppers are demanding to know they are buying from operations that don't threaten fragile fish
populations, or damage habitats with nets and other commercial gear. And supermarkets are meeting the demand.
Traditional grocers are increasingly promoting seafood that's labeled sustainable.
In fact, consumers are more and more aware of the food that they eat and how it's grown and how it's raised and
how it's caught.
Supermarket chains have increasingly embraced the sustainability movement, prompted not only by consumer
demand but by the growing realization that supply could be in jeopardy.
Public awareness of overfishing and other practices threatening species such as swordfish and Chilean sea bass has
stoked the sustainability movement.
Some estimates indicate that a quarter of the seafood sold to US and European consumers comes from illegal
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sources: It's a challenge for supermarkets to ensure all their sustainable seafood comes from legal sources.
Meanwhile retailers see strong growth in sales of organic and natural product lines, including packaged and fresh
food made mostly without synthetic pesticides, fertilizers, antibiotics or added growth hormones, and meat from
animals raised without antibiotics or added hormones.
“The best time
to plant a tree
was 20 years
ago. The
second best
time is now”
Easyfresh Express : Next station : Qingdao
The 20 th anniversary of China Seafood Expo shall be an excellent opportunity for Easyfresh team mates to gather
again. Once day before its start Qingdao’s Housing International Hotel will host Easyfresh 2015 conference on.
The Easyfresh focal points of our global organization, gather 3 rd of November to define sales strategies and internal
policies, by reviewing our Easyfresh Service Manual and other commercial matters
More info at : www.chinaseafoodnews.com (Qingdao 4 th – 6 th November 2015) and
http://www.easyfresh-logistics.com/news.php?nid=74#
“It’s common
for change
management
practices to
view
resistance to
change as an
irrational
barrier to
progress.”
Hierarchy and network : Two structures, one organization
Almost all companies organize people in a hierarchy, and then run well known managerial processes (planning,
budgeting, staffing, measuring, etc) with it. We have all seen so many hierarchical organizational charts, sprawling
boxes of letters and arrows arranged in inverted pyramids — and have been through so many budget, planning,
and problem solving meetings, that we take all of this as a given, as if it had existed forever. In fact, it hasn’t.
The hierarchical organization that we see today was invented in the last century, and it is an incredible invention. It
can direct and coordinate the actions of thousands of people making and selling thousands of products or services
across thousands of miles, and do so effectively, efficiently, and profitably, week after week after week. If you had
told an average citizen in the year 1900 what this structure and those sets of processes were accomplishing
everywhere today, they would have thought you daft.
But 20th-century, capital “H” Hierarchy (a sort of hardware) and the managerial processes that run on it (a sort of
software) do not handle transformation well. And in a world with an ever-increasing rate of change, it is impossible
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to thrive without timely transformations. The data, case studies, and personal anecdotes to this effect abound.
The challenge is that, at both a philosophical and a practical level, the Hierarchy (with its management processes)
opposes change. It strives to eliminate anomaly, standardize processes, solve short-term problems, and achieve
stopwatch efficiency within its current mode of operating.
In a sense, the crowning accomplishment of the Hierarchy and its management processes is the enterprise on
autopilot, everyone ideally situated as a cog whirring on a steady, unthinking and predictable machine. Thus, the
Hierarchy ignores new opportunities that require transformation because these don’t align with its core purpose of
maintenance and optimization. A market opportunity for tablet computers, for example, is more of a distraction
than an opportunity to the hierarchy of a giant PC manufacturer focusing on this quarter’s earnings targets.
That is not to say that small- and medium-sized change are impossible in the Hierarchy. In fact, many critics point
to change management processes, Kaizen initiatives, and the like as evidence that the Hierarchy can do change.
But I am referring to something far bigger: large-scale organizational change, such as a company redesigning its
entire business model, or accomplishing its most important strategic objectives of the decade, or changing its
portfolio of product offerings. And there is no evidence to suggest that the Hierarchy allows for such changes, let
alone that it effectively facilitates them.
All of this leads to believe that the successful organization of the future will have two organizational structures: a
Hierarchy, and a more teaming, egalitarian, and adaptive Network. Both are designed and purposive. While the
Hierarchy is as important as it has always been for optimizing work, the Network is where big change happens. It
allows a company to more easily spot big opportunities and then change itself to grab them.
The Network is a system of teams with representatives from all divisions and all levels, who leave formal titles at
the door to participate in a decidedly anti-hierarchical forum. As the environment changes in various ways, this
system senses and responds to it, and in turn creates more and more teams with volunteers to address the discrete
parts of a larger change.
With this Network, potential opportunities and changes are identified, urgency around tomorrow’s possibilities is
fostered and maintained, strategies for organization-wide changes are formed, barriers are identified and
addressed, and change is achieved.
Logistics & a smile :
“Who says you
can’t ? ”
Videos, books, blogs, websites, others
1) Videos :
- Fragmentation of the Cold Chain :
http://easyfreshtv.web.tv/video/easyfresh-solutions-the-fragmentation-of-the-cold-chain__wyfkjkrdunq
-Poultry processing plant, labour & hard work :
https://www.youtube.com/watch?v=0XzKP8ctxrc
2) Articles
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Issued by :
Maritime&Logistics
A.E., SL on behalf of
Easyfresh
Phone:
+34963218021
E-mail:
info@easyfreshlogistics.com
&
We’re on the Web!
www.easyfreshlogistics.com
www.maritimelogistics.net
“ Grocery Stores Are Losing You. Here's How They Plan To Win You Back”
http://easyfresh-global-reefer-logistics.blogspot.com.es/2015/07/grocery-stores-are-losing-you-heres-how.html
“Ports & Reefer Trades” :
http://www.internationalsupermarketnews.com/news/16698
http://easyfresh-global-reefer-logistics.blogspot.com.es/2015/05/ports-and-reefer-trades.html
3) Books : Reefers in North American Cold Chain Logistics: Evidence from Western Canadian Supply Chains . Free
download : http://vanhorne.info/files/vanhorne/reefers-in-north-american-cold-chain-logistics-evidence-fromwestern-canadian-supply-chains.pdf
4) Blogs :
Easyfresh Blog : http://easyfresh-global-reefer-logistics.blogspot.com.es/
5) EASYFRESH TV
http://easyfreshtv.web.tv/ AND
FOLLOW US IN TWITTER AT @easyfreshglobal & our Management Company Maritime & Logistics at
@maritimelogics or visit www.maritime-logistics.net
We await your input to upcoming Newsletters . Please lead same to easyfresh.ho.marketing@easyfreshlogistics.com
or to info@easyfresh-logistics.com !!
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