Reference no: EM133033629

Get The Scoop: The Ice Cream Supply Chain

The ice cream supply chain is hot. The average American enjoys about 22 pounds of ice cream each year, reports the International Dairy Foods Association (IDFA). Vanilla remains the most popular flavor, with chocolate and cookies and cream next in line. And, despite waistline concerns, premium ice cream-with its high fat content and correspondingly hefty calorie load- is the most popular type, according to IDFA. No matter the flavor or type, ice cream is "a smile producer," says Dan Samson, chief executive officer with Lovin' Scoopful, a producer of gourmet light ice cream that's co-branded with the Special Olympics; it shares 25 percent of its profits with the organization and other causes. To capture those smiles, however, ice cream companies have to ensure products maintain their quality as they travel from the manufacturing plant to the distribution center to the retailer, and finally into the consumer's shopping cart and home. In addition to ingredients and flavorings, cold chain management and proper sanitation are key. "The cold chain's enemy is heat shock," says Robert Roberts, professor and head of the food science department at Pennsylvania State University. Ice cream that warms up and refreezes tends to become icy and grainy. The risk of an unwanted temperature change tends to be highest when the ice cream is moving from one location-say, a manufacturing plant-to another, such as a delivery truck. "There can't be any fumbled hand-offs," says Tom Foster, chair of the marketing and global supply chain department at Brigham Young University, Provo, Utah. Ice cream production in the United States typically starts with a handful of ingredients: water, a milk or cream product, emulsifiers, stabilizers, and sugar, says Ron Atapattu, president and founder of Overseas Cargo Inc., a Miami-based third-party logistics company. These ingredients are blended together, and then the mix is pasteurized, homogenized, and cooled to about the consistency of soft-serve ice cream. Flavors, such as fruits or candy, are added. The ice cream is packaged and moves to a blast freezer, where its temperature drops to well below zero. The Internet of Things (IoT) plays a role in proper transport of ice cream and frozen foods, say Sean Riley, director of global supply chain and the manufacturing industry with global enterprise software supplier Software AG. For instance, in addition to temperature sensors, the IoT can monitor the refrigeration unit's operation. Say the sensor notices a truck's cooling mechanism generating higher than normal RPMs just to maintain proper performance. The driver will know the ice cream needs to move from the truck to the freezer as rapidly as possible once it arrives at the warehouse, as the cooling mechanism may not work for much longer. Software AG recently announced a partnership with Dell to embed this software within devices that allow the driver, manufacturer, and transportation provider to access this information in real time. "The software streamlines, speeds, and simplifies the monitoring process," Riley says. Advances in cold chain management technology are prompting North American producers to consider shipping to other parts of the world, and in particular, South America. "Ice cream companies see a lot of market growth there, because it's counter-seasonal," Foster says. Although temperature shifts can degrade the ice cream eating experience, there's a positive side: The changed texture can make it easier to determine if the ice cream moved outside established temperature parameters, which could lead to bacteria growth. While temperature changes are a safety concern, most are apt to impact the quality of the ice cream before they compromise safety. "It's when the ice cream looks like a milkshake that safety is a problem," Roberts says. Ice cream safety remains top of mind, especially given recent recalls. In 2015, Blue Bell Creameries of Brenham, Texas, voluntarily recalled ice cream, frozen yogurt, sherbet, and frozen snacks distributed in more than 20 states and internationally, according to the Food and Drug Administration. The recall was prompted by an outbreak of Listeriosis traced to Blue Bell's facilities. The issue of safe food transportation gained even more attention with the April 2016 issuance of the rule on the Sanitary Transport of Human and Animal Food. The rule's goal is to prevent practices that can create food safety risks during transportation. The rule applies to shippers, receivers, loaders, and carriers that transport food in the United States by motor or rail vehicle. They're now required to ensure the vehicles are suitable for this function, can be adequately cleaned, and can maintain the temperature required for their intended use. The companies involved also have to maintain written records of their procedures, among other steps. (Source: Karen M.Kroll, 2016)

a) Based on the above case, explain the inbound and outbound logistics for cold chain supply chain with the illustration of diagram.

b) As a procurement manager, explain the importance of applying classification or categories to manage inventory.

Note: need in points and explanation for the points in paragraph.