Streamlining Cold Chain Operations with Technological Advancements

Scott Sayre, director of supply chain and contracts at The Human Bean, brings around 16 years of industry experience and a wealth of deep-rooted expertise in optimizing supply chain operations. Prior to his present role, he dedicated ten years as a procurement specialist for an international supplier. Currently, Sayre's daily responsibilities revolve around managing franchise partners, overseeing the supply chain, and collaborating with vendors, distributors, and manufacturers. With a relentless commitment to innovation and adaptability, he focuses on ensuring smooth and streamlined inventory flow throughout the supply chain.

In an interview with Food Business Review, Sayre sheds light on some of the challenges prevailing in the cold chain sector and how organizations can turn them into profitable opportunities.

What, according to you, are some of the challenges impacting the cold chain and ways to resolve them?

With the onset of the COVID-19 pandemic, the specialty coffee business is faced with many problems related to the supply chain, such as labor crunch and rising costs. The cost of ingredients, including coffee beans and dairy products, is increasing year over year. This means that the standard, static way of managing the supply chain will no longer suffice, making it imperative for businesses to use strategies that are more flexible and creative.

To deal with these problems, it is important to diversify supply chain networks. This helps ensure the supply chain is robust and more flexible, so it can better endure disruptions. Reviewing supplier contracts helps ensure good business terms and keep costs under control.

Diversifying the supply chain necessitates the implementation of technology in order to gain insight into vital supply categories and collaborate with suppliers effectively. Through requests for proposals (RFP), companies can identify new suppliers to maximize advantages. The resumption of trade shows and face-to-face meetings is viewed as a valuable opportunity for networking and relationship development. Implementing tier suppliers can connect manufacturers and distributors, improving procurement processes and higher fill rate percentage.

Internal cross-functional teams play a pivotal part in streamlining the supply chains. By enabling departments to work together and share information, companies can use their combined knowledge to find and apply solutions to supply chain problems.

Can you elaborate on your recent project initiatives?

Being a well-known coffee company that prioritizes delivering high-quality coffee and exceptional customer service, our primary focus this year is directed toward optimizing ground-level operations and building strategic partnerships. To support our initiatives, we are exploring partnerships with leading organizations to obtain industry data.

"I emphasize maintaining solid and long-lasting relationships, not only with present suppliers but also with new ones"

Moreover, one of our strategic initiatives is to analyze and renegotiate our supplier contracts based on our company's strength and growth. Another major focus is sourcing products from all over the U.S. rather than relying solely on familiar areas. For us, building strong relationships with DOT Foods, North America’s largest redistributor in the food industry, and Bunzl, one of the leading distributors of catering disposables, food packaging, and hygiene products across the U.K., is vital. These partners play a critical role in efficiently distributing our products across the country. 

How do you envision the future of the cold chain?

The continually rising costs of labor and transportation are anticipated to have a substantial effect on the industry. Managing and containing the cost of goods is important. It is also crucial to monitor the particular markets that impact business operations. For instance, a decline in resin prices should ideally result in a decrease in a few of our product prices. The key is to have comprehensive supply chain visibility and diligently monitor and analyze relevant data to make informed decisions.

What is your sage advice for budding professionals?

I emphasize maintaining solid and long-lasting relationships, not only with present suppliers but also with new ones. Cooperative and strategic discussions between organizations and suppliers on product costs, as opposed to unfair negotiations, are the way forward. This ensures both organizations and suppliers make profits, creating a win-win situation for everybody involved. Maximizing individual and collective profits and concurrently providing quality products to end users is the primary focus. This strategy includes building both internal and external teams and capitalizing on the knowledge that each contributes to the table. In addition, leveraging artificial intelligence will improve both visibility and operational efficiency, helping businesses complete operations to achieve the desired outcomes.