Page 7 - Case Study Annual 2018
P. 7
Foreword
From farm to
fresh food aisle
By Gerhard Stander, Agricultural Director at CHEP South Africa
Supply chain management in the fresh produce
industry needs to be effi cient and innovative,
working as it does with precious cargo.
PLAYERS WITHIN this space are fi nding innovative
ways of balancing the three main challenges facing
the sector: Ensuring lower costs for businesses,
sustainability for society and quality for the
customer.
The power of pooling
Though balancing these three considerations is
precarious, the sector has been highly adept at
doing so. One of the ways they are managing it is supply chain companies, like CHEP, are establishing
by opting for a share-and-reuse model that enables service centres at the premises of large growers,
growers to transport their product from the farm to centralising and aligning the management of
the fresh food aisle on a single shipping platform. produce and containers to ensure effi ciency and
Shipping platforms most often used within the comprehensive tracking throughout.
fresh food industry include foldable plastic bins,
captive bulk bins and collapsible crates that can A quality export market built on trust
now replace costly and ineff ective carton boxes. South Africa is known as a signifi cant global
Because these containers are reusable, they allow for produce exporter. It is one of only a handful of
signifi cant cost savings, protect the cargo and also countries that produces citrus without black spot,
have a far smaller environmental impact. A reusable making our fruit highly sought after in European
plastic container is manufactured once, and it can markets. Gold-standard supply chain management
make many trips over its lifespan, which most often is necessary for the country to convert this
lasts decades. advantage into export successes.
Growers often opt for bulk bins. As the name What truly distinguishes and benefi ts the local
implies, these bins transport produce in bulk, while agriculture and fresh produce industry is the
ensuring the highest integrity and food safety. high level of trust that exists between players.
Today, for instance, apples or pears can be harvested This underscores the need for industry-wide
directly into bulk bins. They are transported to the collaboration. Such collaboration is fostered by
grower pack houses, where they can be decanted logistics operators that embed themselves in the
and washed and selected for export or the local communities they supply to.
market.
A foldable bulk bin, measuring 1m x 1.2m, can hold The value of industry bodies
freshly harvested fruit, transport it to retailers and The Produce Marketing Association (PMA)
then function as a display platform. Then, from the provides the perfect networking platform for
retailer, it can be folded down and returned to CHEP, agriculture and fresh produce players, because it
conditioned, and be re-issued to the grower. This includes growers and retailers not just in South
type of solution drastically reduces the handling Africa, but around the globe.
of fresh produce, which has a direct impact on the It is crucial that we close the loop and pass
aesthetic appeal and lifespan of the produce. on these fi nancial, effi ciency and environmental
The real logistical challenge then becomes savings to the customer. The entire process is
managing the movement and return of the for the customer – the most important trust
containers to ensure optimum effi ciency. Today, relationship in the entire supply chain. •
The Logistics News Case Study Annual 2018 5