Cold-Chain Project Reveals Temperature Inconsistencies

For example, the two pallets at the back of the 43-foot container were each about 3 degrees warmer than those at the front, closest to the cooling unit. For both containers in transit, most pallets toward the back were warmer than those in the front. Overall, the research confirmed that the temperatures within the container varied by up to 35 percent from pallet to pallet.

Armed with this information, Chiquita and firms selling temperature-sensitive pharmaceuticals and other perishable goods may be able to decrease the rate of waste in the cold chain significantly—which, according to Deloitte, has been estimated to reach 35 percent. The ability to pinpoint those pallets of goods exposed to the highest temps during transit would enable retailers to ensure that merchandise with the shortest expected shelf life was sold first. They could then negotiate with merchants over how much of a container's cargo would be accepted, and how much would be rejected.

Knowing the temperature history of individual pallets of perishable goods would allow merchants to move from a "first in, first out" (FIFO) selling model to a "first to expire, first out" (FEFO) model. Under the latter model, employees would place pallets of produce or other perishable goods that were consistently warmest during transit on shelves first, since those products would have the shortest shelf life. This could translate into better inventory management and product quality.

Hardgrave notes that a company looking to roll out a temperature-tracking system using RFID tags with sensors such as those used in the study would first need to devise a system for collecting and recycling the temperature-tracking tags, due to their high cost—up to $10 apiece. They would also need to calibrate the tags' temperature sensors to take accurate readings in transit.

Waheed Zaman, Chiquita's senior vice president of supply chain and procurement, says his firm participated in the study to learn how it might improve the quality and freshness of its products. The company believes that working to optimize cold-chain operations will benefit consumers purchasing its products, as well as the merchants selling them. Chiquita is working with Deloitte to develop its overall RFID strategy, and to comply with Wal-Mart's tagging mandate, which entails having suppliers apply EPC UHF tags to all cases and pallets of goods being shipped. While Wal-Mart does not require its suppliers to track the temperatures of perishable items, the retailer has publicly noted its interest in incorporating temperature tracking into its RFID program.

"We think there is a collision of opportunities vis-à-vis Wal-Mart saying that [it is] interested in tracking temperature and the value that this [temperature information] would give our client," says Standley.