18


Issue 1 2018 - Freight Business Journal Fresh thinking powers


New materials make for an agile, sensitive supply chain


Global supply chains are becoming much more adept at moving temperature-sensitive goods


around the says Peter world, Lockett, director


of thermal proactive cover supplier TP3 Global. One factor is that freight


forwarders and logistics companies are getting very good at managing things, he explains. “The changes brought in by Good Distribution Practice [GDP -the pharmaceutical industry’s standards for movement of products in the supply chain] necessitated the need for temperature- monitoring and everyone gained a lot more knowledge of what was happening and were able to refine things. So, for example, forwarders knew to have their cargo land in Saudi Arabia at night, and not in the middle of the day, when temperatures are much higher.” The second major


development is the range of materials and methods available


to protect goods


from temperature extremes – materials such as TP3 Global’s Silverskin or the recently introduced SilverQuilt. “Ten years ago, the default position was either to purchase a tempera t ure-co ntro lled


shipping box, possibly with a gel pack, or use a temperature- controlled airfreight container, and suffer the financial consequences.” However, with all the


new knowledge about what temperatures goods are exposed to in the supply chain, coupled with the availability of much cheaper solutions such as thermal blankets, forwarders now have the opportunity to purchase protection at much lower cost, Lockett explains: “The


logistics of thermal


covers are much easier to manage than other methods; it’s more sustainable and simpler to operate. It reduces costs, both the material itself and also in areas such as labour or storage.” Much of TP3’s market


are forwarders sending pharmaceuticals by airfreight, but thermal covers are also beginning to make inroads into perishable food movement – especially more expensive wine, meat or pre-packed food. However, at the cheaper end


of the food market, shippers are more willing to dispense with thermal protection and risk the consignment arriving spoiled if things go wrong – for example delays or the consignment not


are not recovered. However, Lockett believes that a system for getting covers back in international supply chains might soon be feasible, although for food and pharma products it would still be necessary to ensure that they were not damaged or contaminated, so it would not entirely eliminate costs. In some markets, covers are


Indeed, the cost is already coming down, which might make them more viable for a wider range of shipments, says Lockett. More affordable covers mean less supply chain waste as temperature variation is one of the main causes of shelf life reduction at the moment. “We do see a constant


evolution,” Lockett continues. “At TP3 Global we have invested


Pharma logistics needs to shape up, says expert


The global pharma industry


loses over $35bn a year solely as a result of temperature excursions and 30% of scrapped pharmaceutical can be attributed to logistics


issues alone, says industry collaboration specialist Alan Kennedy. Speaking ahead of the roll-


out of the Poseidon pharma ocean freight programme at the


IQPC Temperature Controlled Logistics Conference in London on 1 February, he said that despite the attention being paid to upgrading logistics process, most of the current ‘improvement’


initiatives for pharma “are


piecemeal and merely papering over the cracks”, he argued. He claimed that the Poseidon


model provides a structured platform on which the industry


being loaded on its scheduled flight. “There is definitely a break-even point, and while the cost of our covers may only start at, say, €18, many of our forwarder customers say they only make £50 on a pallet of perishables, so they can’t spend half of that on a cover.” These prices are based


on the assumption that they are used only one way and


already regularly returned, particularly in the US domestic road market. They are also reused quite extensively in supermarket distribution in the UK, the usual practice being to keep the blankets on board the vehicle and throw them over the roll-cages when required. However, a more


likely


scenario is the development of cheaper thermal covers.


///COOL CHAIN


the cool supply chain New materials and new technology are making possible logistics that would have been the stuff of fantasy only a few years ago.


in an advanced technical centre [at Redditch, near Birmingham] and in lab equipment to analyse factors such as reflectivity and insulation. We have test temperature chambers to analyse different scenarios, for example putting two pallets in the chamber together with different covers so we can compare what happens. And we also have computer simulation software so, for example, we can tell a forwarder if our covers will keep a shipment under 12 degrees from South Africa to London. Our technical people are excited at the possibilities.” Developing new materials


takes time, though. Coming up with something that has good insulation properties is one thing; the trick is to make it strong, light and compact enough too. Nevertheless, “I think there will be some interesting developments in the next few months or so.” Much has already been


achieved by the technologists. A crucial factor is the number of covers that can be delivered on a single pallet. The new SilverQuilt product when in use is relatively thick – hence its superior thermal performance – but it is also compressible, meaning that a much larger number can be delivered on a single pallet. While SilverSkin was good


for products requiring control within the 2-30/40 degrees C


can work in concert and has been methodically built around collaborative. Pharma shippers form the backbone to the program and are actively involved in program design and development. Poseidon’s Mark Edwards


commented: “The Poseidon program has been conceived as a risk-managed,


fully GDP


compliant, comprehensively- insured freight platform for pharma. It’s smart consolidation of all the different freight


range, SilverQuilt has brought pharmaceuticals requiring a temperature range of 15-25 degrees C (controlled room temperature or CRT) within the orbit of thermal covers, now seen as almost a default in the pharma industry. SilverQuilt could even be


considered for well-controlled controlled trade lanes for more expensive and more sensitive pharma products requiring a +2oC to +8oC range, although here controlled temperature containers will still be the most favoured option. However, thermal covers could still have a role when these are used, Lockett considers. For example, they could reduce the ‘thermal shock’ experienced by products when they are placed in the older containers that use dry ice or for protecting products that have to be moved out of the coldstore before they can be placed in the container. “The other big area where we are seeing change is


in


the use of thermal covers in seafreight,” Lockett continues. Reefer containers may spend up to seven hours switched off before and after being loaded on board ship and thermal covers could help maintain product integrity in this situation, or perhaps if a truck driver forgets to switch the reefer on. They might also have applications on the new Europe/China rail services that are being developed.


players and elements makes it a very attractive proposition for pharma shippers.” Poseidon says that its logistics,


product and service partners are hand-picked and vetted prior to signing the partnering agreement which tightly commits them to the program and governs


their behaviour


and performance. Companies already on board include Maersk, H. Essers, Marsh, DuPont, Pelican Biothermal, Logtag Recorders and Controlant.


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