Seasonal Problems With “Hot Loads”

Identifying Key Processes For Successful Temperature Sensitive Shipments Frank Morgiewicz, VP & GM of Logistics Services ArrowStream

Seasonal Problems With “Hot Loads” Every year Wendy’s experienced “Alarmed (Hot) Loads” during the spring & summer months Highest Rates of Issues on frozen product: • Chicken • Fries • Produce

Issues resulted in: • Service level degradation • Emergency deliveries • Additional costs

Rejected Loads Yr / Yr Summary

Determining the Causes A cross-functional team was created to review the failed shipments from supplier to DC and identify the cause of failure. This team consisted of: • • • • •

Carrier management group Suppliers D.C.’s Sensitech Internal stake holders (Q.A. and Supply Chain)

The Four Keys to Successful Shipments • • • •

Step 1 Step 2 Step 3 Step 4

Check the Product Temperature Prepare Trailer Properly Load Trailer Properly Maintain Temperature During Transport

• All Cold Chain Stakeholders need to be trained, involved, and holding one another accountable for the process.

The Process • The majority of issues identified were between specific supplier locations and D.C. locations • The team traveled to each of these locations and reviewed the SOP’s for shipment • Supplier loading dock audits were conducted on all shifts to insure compliance with SOP’s:  product temping on the dock  trailer inspection prior to loading  sufficient time for trailer pre-cooling • For the designated DC’s, extra temperature monitoring devices were included to get a true picture of the total product condition during shipment. • The team also traveled to DC’s to observe the unload process

Identifying the Problem • The results of the supplier/transport/DC evaluations clearly identified that there was no singular cause that could eliminate the “Hot Load” issue. • The observations identified opportunities:  Product load and receive temperature specifications were too tight increasing the potential for alarmed loads.  Carrier equipment checks were inconsistent increasing the potential for alarmed loads.  Trailer loading, including side wall loading, pallets too high, and minimal air flow, increased the potential for alarmed loads.  Alarmed loads at the DC were handled inconsistently, increasing the product loss potential.  Rejected loads were not being disposed of consistently leading to potential product being put back into the market.

Identifying Corrective Action • The results were presented to Wendy’s Stakeholders. • Recommendations centered around SOP’s at each point in the supply chain. • A training program identifying the keys to successful shipments was developed. The program included: 1. 2. 3. 4. 5. 6. 7.

Product specific procedures for temping product on the dock. Proper carrier equipment checking. Allowing the carrier on the dock for temperature validation. Proper loading techniques to ensure proper airflow. Trailer pre-cool and set temperatures by product. Monitor placement. Receiving responsibilities.