In an interview with Pankaj Jaiswal Head of Sales for fast growing Foods and Chemicals business, Goodpack, Sagrika Sanjay from Food Marketing & Technology interacted to understand his expertise in changing bulk supply chain system in Indian and Supply Chain Innovation in the food manufacturing Industry….

1 How will you define Supply Chain Innovation in the food industry?

Innovation is an investment for all companies. “As supply chain leaders, we have the power to influence and transform the way innovation is developed, nurtured and implemented in our industry. The future of the supply chain is based on collaboration, connectivity and agility, and most importantly, being resilient.”

Packaging – particularly the outer packaging designed to protect a shipment while being handled on the production line, in the warehouse and in transit – is an often-overlooked aspect of supply chain management. Many view it as simply a cost of doing business – something that is neither glamorous nor strategic.

There are three main ways in which this type of pooling solution delivers more efficiency to the food supply chain:

  • Cost reduction
  • Global coverage, meaning low cost delivery and collection
  • Compliance, safety and sustainability

Greater benefits and be imparted to the users by various means such as:

  • Efficiency:This benefit area is largely cost-reduction oriented and focuses on such elements as Cost-of Goods (COG) savings, operating cost reductions, and productivity improvements.
  • Asset Utilisation:An often-overlooked source of advantage, asset utilisation can include increased plant and warehouse usage and throughput, faster inventory turns, and deferred capital expenditures through better facility utilisation.
  • Customer Response:Technology can bring benefits in the critical “customer facing” activities through improved cycle times, better order fulfilment, and enhanced product or service quality.

Real and meaningful impact will come from widespread deployment of technologies and processes that have been proven and tested in Goodpack. Successful supply chain leaders will pilot these leading-edge technologies as they get fine-tuned into maturity.

2  Tell us about your efficient supply chain solutions. What kind of Industry specific solutions do you provide?

“We deliver value to our customers and partners through efficient supply chain solutions, our global network and fleets of intelligent returnable containers. Our industry specific solutions and data analytics reduce supply chain costs, inventory, waste, damages, environmental footprints and capital spend.”

3 What is the critical challenge underlining the Food market?

The food processing industry is a sunrise sector. Lack of a comprehensive policy addressing the various needs of the food processing industry is obstructing its growth. According to one estimate, India’s food consumption is currently valued at $370 Billion and is expected to reach $1 trillion by 2025. The development of the food processing industry is necessary due to the rise in disposable incomes in the hands of the middle class, changing food habits, rapid urbanisation and the changing dietary preferences towards processed and packaged foods. Besides, a well-developed food processing sector with higher level of processing helps in the reduction of wastage, improves value addition, promotes crop diversification, ensures a better return to the farmers, promotes employment and increases export earnings. This sector is also capable of addressing critical issues of food security, food inflation and providing wholesome, nutritious food to the masses. Goodpack is able to provide comprehensive solutions to major food processing industries by providing value propositions to enable the industry to save substantial money and, at the same time, provide a solution to the most critical challenges the industry faces.

4 Comment on your intelligent returnable containers and RFID?

Goodpack dramatically transforms traceability and visibility capability across the entire supply chain. Every Goodpack is equipped with an RFID tag. RFID-equipped for ease of data capture tracking and extending supply chain visibility to optimise supply chain efficiency and cost. Global container positioning allows for shorter lead times and positioning of shipment and product for just-in-time containers. We utilise statistical forecast models with machine learning capabilities to manage and optimise working capital for demand and supply forecasting. RFID installation – consisting of Tag, readers and software to manage data – is providing the company with a more automated solution, intended to collect data regarding each container’s location. It also employs an automated rent-calculation system based on when a particular container was received by a customer, and when it was returned to Goodpack.

5 What is the use of data analytics in today’s world and its role in the food industry?

Our industry specific solutions and data analytics reduce supply chain costs, inventory, waste, damages, environmental footprints and capital spend. The food industry is one of the world’s largest and most important business sectors. The field encompasses everything from producers and shipping companies to various users. Food is nothing less than an essential part of life and a major global economic force. Therefore, it makes perfect sense for the food industry to follow the path already taken by many firms and use sophisticated analytics tools and methods to better understand consumers and uncover emerging market trends. Data analytics supports food industry businesses with critical decision-making capabilities in the areas of pricing, product promotion, product development, and demand forecasting. Benefits include improved product innovation, greater sales effectiveness, enhanced margins and profitability levels, extended customer reach, increased marketing ROI, and greater customer satisfaction and loyalty.

6 Tell us about your product delivery point, and how you handle volume fluctuation?

Goodpack owns and operates the world’s largest fleet of rented steel IBC containers. It is through the sheer size of our fleet and the spread of our operations across 77 countries that we can manage an efficient delivery and collection program to service our customers’ needs. We have sufficient volumes to react to the ebb and flow of the packaging needs of the food industry.

7 ‘No packaging waste’ is a serious concern. What is your fundamental concern with regard to waste disposal?

Strong, durable, and made of solid galvanised steel, Goodpack containers can be used for years with the strengthmaintained. Our fleet of containers are reused many times over; this has the dramatic effect of reducing solid waste by up to 90 percent versus disposable bulk packaging and drums. Our goal is to continue working with our customers to further reduce the minimal accessories that need to be used to hold food products inside Goodpack containers. Goodpack’s cleaning process utilises water reclamation and the containers are fully recyclable, once they are no longer suitable for shipment.

8 How do Goodpack Containers (IBCs) help in protection and transportation of the raw material?

Goodpack metal boxes are constructed using high tensile galvanised steel which has been tested in rugged environments with various products.

  • Patented, galvanised, high tensile steel
  • Rugged, returnable, and reusable
  • ISO 9001 and ISO 14001 Facilities
  • Zero wood contamination
  • Hygienic and food safe
  • Standard and custom solutions
  • Profitable:
    Sea: 29% more product in 20 foot container
    Rail: 10% more product in domestic shipments
    Land: 12-40% savings in transportation/freight costs
  • Green: Returnable and reusable = zero disposal emissions
  • Economic: Unit design = marginal raw material storage capex
  • Safe: Set-up, knock-down by a single individual in seconds

The product contained inside will be safe, used world over by MNCs for transcontinental movements.

9 What is the importance of capital spending in food and beverage manufacturing? How do you look at this?

Buying packaging such as Barrels and IBCs require lots of capital, which can be substituted by GoodPacks on a rental basis. These additional funds can then be deployed to other productive requirements such as capacity and capabilities enhancement. Goodpack makes renting containers easy by delivering, collecting and managing the entire process. The Goodpack rental system eliminates the need for capex and is perfect for managing volume fluctuations during season with pre-planning.

10 Your speculation on market expansion and new solutions next?

Goodpack is innovative and our R&D team works as per market feedback and specific requirements and, at the same time, we are expanding to new territories to cater to the diverse range of Industry requirements. Based on various product requirements, our solution design team provides the winning formulae to streamline the complete supply chain system understanding all requirements.