Topic:
Development of the industrialization process for optimizing cargo freight capacity utilization (space, mass, packaging, refrigeration) in refrigerated shipping containers to reduce logistic costs while maintaining product quality.
Logistics Cost Chain
- Shipping Cost
- Containerization
- Industrialization
- Many ideas
- Gap between technology and implementation
Project Participants
- Koos Bouwer and Dr Malcolm Dodd
- Johan Strydom
- Logistics Students (Hons)
- 2015: Janita Pieterse and Tertius Bruwer
- 2016: Tessa Myburgh and Nicholas Bridge
- Dr Leila Goedhals-Gerber (US)
- Industrial Engineering
- 2016: Stephan Nel
- Dr Louis Louw (US)
- Many other industry inputs
Reefer Container
- Most used: 40’ Hi cube
- Assume as given:
- Dimensions (volume)
- Payload restrictions (Tare)
- Refrigeration capacity
Constraints
Historical Constraints
- The reefer container:
- Internal dimensions and usable volume
- Refrigeration capacity
- Airflow dynamics
Road Freight Constraints
- Total mass, axle mass
- Dimensions: height, width, length (vehicle)
Fruit Quality
- Temperature, RH, fresh air
Material Handling
- Total supply chain
Packaging
- Modular units (size and weight)
- Palletization (size)
- Refrigeration airflow
- Product marking and branding
- Environmental impact of packaging material
Economic Forces
- Cost of change
- Freight rates
- Packaging changes
- “Share the harvest”
Historical Overview
- Palletization
- Containerization
- Vertical airflow
- Space utilization
HI Cube Containers
- Ref: Johan Strydom
Road Transport Constraints
- Logistics students (Hons): 2015
- Janita Pieterse and Tertius Bruwer
Macro Container Analysis
- Logistics Student (Hons): Nicholas Bridge (2016)
- Global reefers: Approx. 4m (FEU)
- South African Fruit Exports: 115,000 (FEU)
- Pome Fruit: 22,500 (FEU) 2015
- Stone Fruit: 2,600 (FEU) 2015
Reefer Cost Chain
Micro Container Analysis
- Logistics Student (Hons): Tessa Myburgh (2016)
Container Load Optimization
- Industrial Engineering student: Stephan Nel (2016)
- No Restrictions: 28 ton apples in 40’ Hi cube
- Improve with Optimal sphere packing: 38 ton
- Kepler’s Conjecture
- Face Centred Cubic (FCC)
- Hexagonal Close Packed (HCP)
Current Container Utilization: Pome
Reasons for Difference
- Edge effects
- Fruit loss
- Quantity of edges in container
- Mk9 carton: 30 x 5 x 15
- Thickness of edge
- Telescopic (double)
- Air gaps
- Material handling time
- Pallet bases
- Carton sizes
- Fruit Bruising
BREAKTHROUGH!
Packing Module Optimization
- Goal software (Gower Optimal Algorithm Ltd)
- Pallet manager – Optimal pallet loading
- Pallet loading problem (Ops Research)
- Cargo Manager – Optimal container loading
- Container Loading problem (Ops Research)
Opportunities: Pome Fruit
- Euro Pallet or 21 pallet: Save 2.5%
- Reduce weight of packing material: Save 3%
- Reduce pallet height: Save 4-6%
- Optimal carton size (bigger cartons, less edge-effect)
- Optimal pallets (e.g. 2200 x 1200): Save 15–17%
- Combinations of above: Save up to 25%
Saving % and Impact
| Saving % | Net Farm Income | Pome Industry |
|---|---|---|
| 5% | +8% | R135m |
| 10% | +16% | R270m |
| 15% | +24% | R405m |
Action Plan
- Challenge historic habits and standardization
- Escape from the comfort zone and implement innovative ideas
- Need multi-disciplinary systems approach
Stakeholders:
Exporters, packaging designers/manufacturers, packhouses, refrigeration, information systems, logistic handlers, etc.
Some supply chain links may cost more and act as a barrier for the whole to benefit.
Can only be managed from Industry Organization (FPEF, Hortgro, SATI, etc.)
Need somebody to act on behalf of the whole so that everybody can benefit – “Share the harvest”