C OLD C HAIN S HIPPING R ESEARCH P ROJECT The Pennsylvania State University The Smeal College of Business December 7 th, 2009 Sam Shampain.

C OLD C HAIN S HIPPING R ESEARCH P ROJECT The Pennsylvania State University The Smeal College of Business December 7 th, 2009 Sam Shampain

Agenda December 7th, 2009BD Biosciences/Penn State Cold Chain Shipping Project 2  Project Background  Cold Chain Shipping in the Biological Industry  Cold Chain Shipping in the Pharmaceutical Industry  Cold Chain Shipping in the Food Industry  General Packaging Solutions for Cold Chain Shipping  Recommendations

Project Background December 7th, 2009BD Biosciences/Penn State Cold Chain Shipping Project 4  Becton Dickinson ships single/multiple doses to customers both internationally and domestically  The cold chain industry has become increasingly more challenging:  More government regulation  More customer preferences  Unreliable Infrastruture  Globalized economy

Project Background December 7th, 2009BD Biosciences/Penn State Cold Chain Shipping Project 5  Companies are beginning to focus on making their cold chain shipping a core competency  Research was conducted with the following goals:  Define the industry standard  Benchmark current BD Bioscience's practices against standard  Offer viable alternatives to current practices

Biological Industry December 7th, 2009BD Biosciences/Penn State Cold Chain Shipping Project 7  Trends  Reusable Packaging, Eco-Friendly Packaging  RFID tags, Data Logging, theft prevention  Best Practices  Beckman Coulter - Hired prominent 3PL, Arvato Services Created regional distribution centers Built replacement parts DC next to Brussels airport  eBioscience - Purchase NatuTec a German bio company Offered faster lead times to Europe Wider range of products

Pharmaceutical Industry December 7th, 2009BD Biosciences/Penn State Cold Chain Shipping Project 9  Trends  Switching from passive to active cooling systems  Alternatives to dry ice  Best Practices  Cold Chain Technologies - Global 3PL provider/manufacturer All of there products meet all regulations Sustainable, reusable, eco-friendly products  Minnesota Thermal Sciences - Packaging Manufacturer Fully ISTA certified Won “US Army Greatest Invention Award” for Golden Hour Container

Food Industry December 7th, 2009BD Biosciences/Penn State Cold Chain Shipping Project 11  Trends  Increased regulations because of disease outbreak  Global sourcing, trading partner collaboration, sustainability  Best Practices  Cross-Docking - Cuts inventory, labor, transportation costs Increased pressure from customer for variety, freshness, customer service  Outsourcing shipping practices Many companies using a 3PL for refrigerated shipping  Temperature Monitors/RFID Improves perfect order accuracy/less spoilage

Cold Chain Industry - Leading Companies December 7th, 2009BD Biosciences/Penn State Cold Chain Shipping Project 13  Cold Pack  US offices located in San Diego, California  Produces award-winning “Airliner” product “Revolutionary inflatable, insulating liner that easily converts a corrugated box into a cooler”  Entropy Solutions  Based in Minnesota - Competes in 35 countries globally  Produces award-winning, EPS substitute, “Greenbox”  Known for their 100% organic, yet extremely effective packaging solutions

Emerging Packaging Solutions December 7th, 2009BD Biosciences/Penn State Cold Chain Shipping Project 14  Vacuum Insulated Panels (VIPS)  Highest R-Value of any box liner Typically used to insulate houses  Extremely effective yet very costly As market expands prices will decrease  Dry Ice Alternatives  Dry Ice produces harmful CO 2 and creates handling problems Safer, more eco-friendly substitutes are coming to the market Effectiveness not quite known

Considerations December 7th, 2009BD Biosciences/Penn State Cold Chain Shipping Project 16  Packaging requirements of BD Biosciences  Maintain 2-8 o C or 2-25 o C for 24 hours  Maintain 2-8 o C or 2-25 o C for 5 days  Alternatives to Dry Ice  Aspects Considered  Environmentally friendly  Cost effective  Minimal Assembly  Packaging Integrity

Recommendations December 7th, 2009BD Biosciences/Penn State Cold Chain Shipping Project 17  Maintain 2-8 o C or 2-25 o C for 24 hours  ColdPack’s Airliner  Greenbox Inflater Pack with E23 Phase-Change Materials manufactured by Entropy Solutions  KoolTemp™ Insulated Envelopes manufactured by Cold Chain Technologies

ColdPack’s Airliner December 7th, 2009BD Biosciences/Penn State Cold Chain Shipping Project 18  Inflatable bag that can be used as a box liner or shipping pouch  Awards  European Pharmapack Cold Chain Award- for innovative medical shipping  FPA (Flexible Packaging Association) 2009 Gold Achievement Award in Packaging Excellence AdvantagesDisadvantages  Minimizes packaging weight to decrease freight cost  Can avoid the use of multiple gel packs  Reduces carbon footprint by 96% because of material reduction  Labor cost increases because of additional set-up time  When used with dry ice there are special handling requirements  Actual product cost not available

Greenbox Inflater Pack December 7th, 2009BD Biosciences/Penn State Cold Chain Shipping Project 19  Single dose package that must be combined with a gel pack  Walmart uses the Inflater Pack for all of their single dose shipments  Awards  2009 Greener Package Award  “Innovator of the Year” AdvantagesDisadvantages  Fully Reusable  100 percent organic  Phase changing materials are non-toxic and fully reusable  Cost savings because of reduced weight  Designed for reuse so may be more expensive than traditional methods for single use  Requires the use of specific Entropy Solution’s gel packs  Can only be used for specific temperature profiles

KoolTemp™ Insulated Envelopes December 7th, 2009BD Biosciences/Penn State Cold Chain Shipping Project 20  Insulated envelope that can be used with gel packs/dry ice  May be shipped within standard overnight box for added protective  Envelope and payload must be chilled to temperature profile before shipment AdvantagesDisadvantages  Light-weight material reduces freight costs  Reflective exterior reflects 97 percent of radiant heat transfer  Can be used with Dry-ice, expanding the applicable temperature profiles  Exact effectiveness unknown  Only applicable for overnight shipments  Must use manufacturer’s gel packs

Recommendations December 7th, 2009BD Biosciences/Penn State Cold Chain Shipping Project 21  Maintain 2-8 o C or 2-25 o C for 5 days  KoolTemp Polyurethane Insulated Cooler  Entropy Solution’s GreenBox

KoolTemp PU Insulated Cooler December 7th, 2009BD Biosciences/Penn State Cold Chain Shipping Project 22  Polyurethane insulated cooler ships within outer corrugated box  Much higher R Value than EPS or XPS  Contains no CFCs or HCFCs AdvantagesDisadvantages  High R value reduces the gel pack/dry ice requirement  Ideal for 2-8 degrees Celsius but can be used with dry ice  Completely reusable  Environmentally friendly, no ozone depleting materials in manufacturing  Higher cost than EPS foam  Must replace corrugate for reuse  Molded container increases necessary storage space

Entropy Solution’s GreenBox December 7th, 2009BD Biosciences/Penn State Cold Chain Shipping Project 23  The Greenbox can maintain payload temperatures from -40°C to +70°C for up to 120+ hours or five days  Contains Thermal-Lok™ insulation panels with a R Value 10 times greater than EPS  Awards  Greener Package Award and “Innovator of the Year.” AdvantagesDisadvantages  Most effective and sustainable packaging solution on the market  Can be reused up to 100 times  Made of 100% organic material  Available for almost all temperature profiles  Extremely costly and not cost effective unless reused  Time consuming pack out  Greenbox use requires use of the entire Greenbox system (gel packs, packing tape etc)

Recommendations December 7th, 2009BD Biosciences/Penn State Cold Chain Shipping Project 24  Alternatives to Dry Ice  Entropy Solutions: The PureTemp - 40 Solution  Techni Ice™ Reusable Dry Ice Packs  TCP Reliable’s ‘20 below’

The PureTemp - 40 Solution December 7th, 2009BD Biosciences/Penn State Cold Chain Shipping Project 25  Insulating panels that surround and insulate the product  First sustainable dry ice alternative to come to the market  Department of Agriculture lists the material in its Bio-preferred purchasing program AdvantagesDisadvantages  100% renewable and biodegradable  Requires no special handling  Can be used more than 20,000 times with no thermal degradation  Much higher cost than traditional dry ice  Only one supplier  Is not economical unless reuse is applicable

Techni Ice™ Reusable Dry Ice Packs December 7th, 2009BD Biosciences/Penn State Cold Chain Shipping Project 26  Dry Ice pack that must be hydrated then frozen down to the required temperature  Has recreational and commercial uses AdvantagesDisadvantages  Less costly than traditional dry ice  Can be frozen down to -190 degrees Celsius  Reusable and not toxic  Must be hydrated before use, which may be difficult  Unproven in the cold chain shipping market

TCP Reliable’s ‘20 Below’ December 7th, 2009BD Biosciences/Penn State Cold Chain Shipping Project 27  Serves specific temperature profile from -25 to -20 degrees  Available as a panel or as a pouch AdvantagesDisadvantages  Safe to handle  Water soluble and reusable  Can be disposed of in standard municipal waste stream  More expensive than standard dry ice  Panels require additional set up time

Conclusion December 7th, 2009BD Biosciences/Penn State Cold Chain Shipping Project 28  Entire Industry looking to move away from using standard EPS foam  Focusing on more environmentally friendly substitutes  Reusable options - can aid reverse logistics  Eco-friendly and sustainable shipping practices can be a competitive advantage  Cold Chain Shipping is a rapidly expanding industry  The companies that succeed will be those who stay ahead of the innovation curve

T HANK Y OU !

C OLD C HAIN S HIPPING R ESEARCH P ROJECT The Pennsylvania State University The Smeal College of Business December 7 th, 2009 Sam Shampain.

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C OLD C HAIN S HIPPING R ESEARCH P ROJECT The Pennsylvania State University The Smeal College of Business December 7 th, 2009 Sam Shampain.

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