Cheese Transportation from France to Sri Lanka: How to Overcome the Challenges - Case Study Example

Title: Cheese transportation from France to Sri Lanka: Its challenges and how to overcome the challenges Name Institution Date of submission Table of Contents Table of Contents 2 Introduction 3 How cheese will be transported from Normandy to 3 Deal Palace in Colombo, Sri Lanka 4 Product Description 4 Cheese packaging and storage 4 Means of transport 4 a) Truck transport 5 b) Air transport 5 Risks to the exporter 5 a) Temperature 5 b) Humidity 5 c) Loss 6 d) Contamination 6 e) Mechanical influence 6 Key challenges 6 a) The fluctuation in the trade level between France and Sri Lanka 6 b) Regulations (food and government regulations) 7 c) Security risks (terror and supply chain risks) 8 d) Inadequate packaging 8 e) Highway congestion both in France and Sri Lanka 8 How to overcome the challenges 9 a) Good timing 9 b) Understanding the regulations of transporting cheese and providing correct documentation 9 c) Choosing quality packaging shipping containers 9 d) Cargo insurance 10 References 11 Appendix 12 Introduction Dairy product supplies ought to know how to attend appropriately cheese products when it comes to shipping from the supplier to the consumer through the supply chain. The research shows that it is important for the cheese producers to be acquainted with the storage and packaging of cheese during transport and distribution process (McSweeney, 2007). Storage and packaging include determining the appropriate transportation vessels that transport both the raw material and the finished products. These considerations apply to the cheese producers who ship the products to retailers, restaurants or direct consumers. Transporting cheese from Normandy, France to Colombo, Sri Lanka can be faced by various key challenges. Based on the location, the two countries are far apart and belong to the different continent. France is located in Europe while Sri Lanka is located in South Asia region. The air travel distance between the two countries is about 8496.7 kilometers. Apparently, the travel distance between Normandy and Colombo, therefore, makes air transport appropriate in supplying cheese. Apart from air travel, cheese also will be transported by road from the supplier in France to the airport and from the airport to the restaurant in Sri Lanka. This paper explores how cheese will be transported from the supplier in France to the restaurant in Sri Lanka, steps involved, justification of the process, risk and key challenges to the exporter. The paper also explains how to overcome the key challenges in the chain of distribution. How cheese will be transported from Normandy to 3 Deal Palace in Colombo, Sri Lanka Product Description Cheese is a product of milk. According to the France cheese-making laws, cheese production is divided into three stages. These include milk coagulation, curding and ripening. Since this is a competitive business, the transportation of cheese will include various varieties such as hard, soft, slicing, semisoft slicing, curd and sour milk cheese. All these varieties will be stored and packaged differently (McSweeney, 2007). Cheese packaging and storage Cheese should be packaged in a way that it cannot be defected by humidity, contamination or mechanical effects. Damage, in this case, may cause maggot infestation and molds growth. The maximum storage period of cheese storage is between four to 6 months depending on the temperatures and relative humidity exposed to. Cheese to be transported to 3 Deal Palace will be wrapped with wax layers to protect cheese products from being contaminated as well as getting molds. The process of waxing is followed by putting the cheese products inside the plastic containers in an unripe form to allow ripening of cheese during the transportation process. These containers are packed in cartons ready for transportation. In this case, 1000 kilograms of cheese needs to be transported. Therefore, it will need multiple cartons of 80cm x 120cm for cargo units. The remaining quantity can be wrapped with metal strapping. All of these cartons should be put in mesh containers. The containers should be refrigerated to moderate the temperatures required (McSweeney, 2007). Means of transport There are two means of transport to be used in transporting cheese from France to Sri Lanka. a) Truck transport After packaging in the appropriate containers, cheese is transported from the supplier to the airport in France. Justification: The reason for choosing road transport is that there is no direct air transport to the supplier. Therefore, the good road networks in France allow good access to the airports. Road transport will also be used in transporting the cheese from Sri Lanka airport to the restaurant in 3 Deal Palace. b) Air transport Cheese is highly perishable. Therefore, air transport is the most appropriate form of transporting cheese from France to Sri Lanka. Justification: The reason for choosing air transport is because of the long distance between the two countries. Risks to the exporter a) Temperature The exporter should provide a printed cooling order to the transporters in the supply chain. Failure to provide and follow the written cooling order may lead to the damage of the transported cheese. Therefore, the temperature ranges should be followed effectively to avoid any damages. b) Humidity Cheese needs a relative humidity of between 70 and 90% depending on the variety. Therefore, failure to maintain these values may lead to damage of cheese. c) Loss Loss can result from various factors such as inappropriate packaging, theft or mishandling of cargo. Therefore, exporters should be aware of this risk during packaging. d) Contamination Cheese is very sensitive to dust and oils. Therefore, the wrapping of wax should be done very carefully to avoid this risk. e) Mechanical influence Cheese is very sensitive to the impacts of the loads. Mishandling or loading of the containers often leads to damage. Therefore, it is important to secure the packages appropriately to avoid this risk. f) The loss in volume: As it is transported, cheese may shrink thus losing the actual volume that was exported. Key challenges a) The fluctuation in the trade level between France and Sri Lanka It is important to note that the sustainability of the transportation of cheese from France to Sri Lanka depends on the trade level between the two countries. Over the past years, the trade level between the developed countries and emerging economies have not been doing well. As a result, this will affect the supply chain in terms of time and cost. Since there is no regular trade between the two countries, first, the direct flight may not be found, and this may lead to damage of cheese during transportation. Secondly, shifting of containers from one airplane to another increases the cost of transport through offloading and loading. Also, fluctuation in trade level will affect the reliability of the supplier. This is because the restaurant in Sri Lanka will not depend on the supply from France during low season of trade (Ilková, 2015). From the appendix 1, it is evident that the GDP of Sri Lanka is not stable. Therefore, the instability will affect other sectors of the economy including cheese transportation. Maybe during this time of transportation, the trade level is low. For this reason, it will be most likely to incur the high cost of transport depending on the economic regulation model. b) Regulations (food and government regulations) European Union (EU) governs cheese products in Europe. According to the regulations, production of cheese is currently legal, and one can export to anywhere around the world. There is a strict regulation on the cheese that is made from raw milk. The France government in accordance with the EU regulations needs all the cheese made from raw milk to be labeled. The regulations also ensure that there is a strict and high standard of sanitary conditions both in storing and packaging. In his case, the strict regulations will need extra recruitment of the quality assurance team to audit the cheese products to be exported. The auditing procedure will increase the costs of export in the supply chain therefore reducing the returns if at all the main objective was to get more profits in the new market. Despite these regulations promoting high levels of health protection, the exporter has to incur extra costs to fulfill the standards needed by the government. Also, the exporter will have to get clearance from Food and Agricultural Organization (FAO) regarding food safety before exporting the cheese products (Baughen, 2009). As much as these regulations are taking much time, it also increases the costs of exporting cheese. c) Security risks (terror and supply chain risks) The increasing terrorism alert increases the need for insuring the cargo (Gregory, 2003). The International Transport Security Administration (TSA) specifically in western countries (France inclusive) is changing the events involved in air transport. As a result, this will affect the scheduling of delivering the cheese products that are highly perishable. The alternative of air transport to Sri Lanka is limited because of the long distance and cross-boundary traveling. d) Inadequate packaging The advance in packaging and storing procedures is currently a primary role in the food supply chain. More developed countries are currently using plastic packaging materials to ensure that the food travel safely to the destination. However, the introduction of the new packaging technology should balance with the food protection and the material cost as well. The whole process of transporting 1000 kilograms to Sri Lanka will heighten the environmental consciousness of the two countries (France and Sri Lanka). Therefore, using plastic containers in transporting cheese will come at an extra cost that will cater for disposal of the solid wastes (Ilková, 2015). To avoid damage or loss, packaging roles should be adequately followed and appropriate materials used during transportation. e) Highway congestion both in France and Sri Lanka Highway congestions from the cheese supplier to the airport may lead to the delay or even miss of flights. Airports in France are active with many people traveling all over the world (Iatatravelcentre.com, 2015). Therefore, there is a possibility that at some point during the day, the highways leading to the airport might be congested. The case is also the same in Sri Lanka. When the roads leading to the restaurant in 3 Deal Palace is congested, then the time of delivery will be delayed. How to overcome the challenges a) Good timing Having a good timing in transportation can lessen the costs as well as the time taken for cheeses to be transported from France to Sri Lanka. It is recommended that the cheese should be transported during the high trade level between the two countries. During this time, one can get frequent flights to Sri Lanka and also the possibility of getting direct flight is high. This can result in the reduction in costs of transportation as well as reducing the chances of damage and loss. Good timing also can lessen the challenge of road congestion in either of the countries. For example, it is recommended that the cheese should be transported when there is less traffic on the roads. This will allow smooth movement of packaged cheese from the supplier to the consumer in the supply chain. b) Understanding the regulations of transporting cheese and providing correct documentation When shipping cheese from one country to another, it is important to comply with all the regulations from one institution to a dozen of them. Therefore, before deciding on starting the shipping process, it is necessary to be acquainted with all regulating bodies as well as oversight organizations. When one is familiar with these regulations, it will be easier to get cleared for the cargo thus reducing the chances of being troubled during shipping. One should provide the certificate of clearance from all institutions associated with the transport of cheese such as France Highway Authorities (FHA) and Food and Agricultural Organization (FAO). c) Choosing quality packaging shipping containers Since cheese needs to be delivered to the restaurant in 3 Deal Palace, Sri Lanka in good conditions, one should choose the appropriate shipping containers. After finding good and adequate packaging containers for the 1000 kilograms, it is important to have good labeling to avoid loss. Furthermore, it is recommended that one should get familiar with the packaging procedures of cheese. In case one does not own the container, there are companies in France that build custom containers that fit in the cargo needed to be transported. Therefore, one can order the container from these companies to avoid inadequate packaging (McSweeney, 2007). d) Cargo insurance Terrorism attack can happen anytime and anywhere. Therefore, to reduce the risk of losing cheese during transportation due to possibilities of the terrorism attack, it is important to insure the cargo. Though the majority of the airlines have the third party insurance cover such as freight loss and damage, the vessel is trading through the area that is subjected to the high level of terrorism hostilities. Therefore, as a cargo transporter one should ensure that he or she obtains a separate insurance cover for terrorism risks. Obtaining a cover of terrorism risks may be expensive to the exported. But it is always important not to take any chances in these areas that are disposed to terrorism (Gregory, 2003). References Baughen, S. (2009). Shipping law. London: Routledge-Cavendish. Gregory, S. (2003). France and the War on Terrorism. New York: Taylor and Francis. Iatatravelcentre.com,. (2015). IATA - Sri Lanka Customs, Currency & Airport Tax regulations details. Retrieved 1 September 2015, from http://www.iatatravelcentre.com/LK-Sri-Lanka-customs-currency-airport-tax-regulations-details.htm Ilková, Z. (2015). Rights to Designaton Focusing on Protected Designations and Geographical Indications of Agricultural Products and Foodstuffs. EU Agrarian Law, 3(2). doi:10.2478/eual-2014-0008 McSweeney, P. (2007). Cheese problems solved. Boca Raton: CRC Press. Appendix Figure 1: fluctuation in the GDP between 2012 and 2015 Read More