Identifying Key Processes For Successful Temperature Sensitive Shipments

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

3. 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

4. Rejected Loads Yr / Yr Summary

5. 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)

6. The Four Keys to Successful Shipments • Step 1 Check the Product Temperature • Step 2 Prepare Trailer Properly • Step 3 Load Trailer Properly • Step 4 Maintain Temperature During Transport • All Cold Chain Stakeholders need to be trained, involved, and holding one another accountable for the process.

7. 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

8. 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.

9. 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: • 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.