Project Detail
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The development of the industrialization process for various ideas towards optimization of cargo freight capacity utilization (space, mass, packaging, refrigeration) in refrigerated shipping containers to reduce logistic costs while maintaining product quality
Objectives and Rationale
The cost of exporting fruit with refrigerated containers has increased more than 30% during 2013/14. The cost of shipping is linked to a container unit. In this project, we investigated the opportunities to export more fruit per container to save on shipping costs.
Methods
A document was compiled to list all the factors that define an optimum solution for container utilization. Research was done on historical changes in shipping methods for exporting fruit. Many of the current methodologies are based on historical decisions and these were challenged. Interviews were held with fruit exporters and logistical handlers to obtain their expectations and concerns. Constraints in the form of transport load regulations and dimensions of containers were researched and listed for most of the target exporting countries. The volume of refrigerated container shipments was analysed and from this a cost chain defined to assist in quantifying opportunities. An analysis of packaging types was done to reflect the current container utilizations. Industrial engineering optimization techniques were applied to develop potential solutions for improvement in container utilization.
Key Results
Various inputs to future solution development are researched and documented. Preliminary results show that the opportunities for better utilization of refrigerated containers, and a saving in shipping costs, is very likely for pome fruit and less so for stone fruit. A total of 5 areas for improvement were identified and the potential supply chain cost savings can amount to 15%.
Key Conclusions of Discussion
Current packaging and handling methods are based on historical logistical practices. There is potential for saving in shipping costs with better utilization of available container space. Potential improvement areas were identified and detail development of the solutions are still required before implementation.