Table of Contents1. Executive Summary.............................................................................................................................3

2. Introduction.........................................................................................................................................4

3. Objectives:...........................................................................................................................................4

4. Methodology.......................................................................................................................................5

5. Literature Review................................................................................................................................5

6. Theoretical Framework........................................................................................................................6

6.1 Present supply-chain of gerbera:.......................................................................................................6

6.2 Lacunas in traditional supply-chain:..................................................................................................6

6.3 Recommended Supply-chain model:.................................................................................................6

6.4 Various technologies that can be used for optimizing the supply-chain are as follows:....................8

6.4.1 Use of phase-change materials...................................................................................................8

6.4.2Use of time-temperature indicators............................................................................................9

6.4.3 Using supply-chain softwares:..................................................................................................11

6.4.4Use of RFID:...............................................................................................................................11

6.4.4 Automation...............................................................................................................................12

6.4.5 Improving Energy Efficiency......................................................................................................12

7. Conclusion.........................................................................................................................................13

8. Recommendations.............................................................................................................................14

9. Bibliography.......................................................................................................................................15

1. Executive Summary

Gerbera occupies 7th position in top ten cut flowers. Good quality cut flowers of gerbera can be produced under protected cultivation. India being gifted with best climate for protected cultivation, the production of gerberas, particularly during winter months is highly profitable when compared to temperate countries, where these are grown under green house conditions. Hence there is good demand for gerberas particularly from European markets during winter months and throughout the year in India.

However, about 20-30 per cent of the flowers are lost due to faulty harvest, handling, package, storage, transport and marketing. Cut flowers are living, actively metabolizing heterogeneous organs, composed of floral parts which may be at different physiologically developing stage. Hence, steps need to be taken to optimize the entire supply chain so to minimize post-harvest losses. Following paper takes an overview of the existing supply chain and suggests methods which could be used to design the supply chain to more efficient.

The recommendations drawn from the paper are as follows :

1. Developing the supply chain such that only wholesaler maintains a large storage facility in the entire supply chain.

2. Wholesaler procures directly from a selected cluster of growers and then supplies flowers to retailers as per demand

3. Wholesaler’s storage facility is located either near the farmer end or the retailer end of the chain thus eliminating reefer vans from one side of the chain

4. Extensive use of technology in order to monitor shelf life of the flowers, maintaining the storage unit as well as storage container during cold logistics, maintenance of proper database, logsheets etc. with the help of technological developments discussed in the paper.

2. Introduction

Gerbera (Gerbera Jamesonii Hook) came into dictionary of floriculture after it was discovered by pre-Linnean botanist, Gronovious but it received its fortunate name in honour of German naturalist, ‘Traugott Gerber’ who travelled in Russia in 1743. Gerbera is an internationally important cut flower grown for its colourful, showy and long lasting daisy like flowers. It is one of the nature’s beautiful creations having beautiful flowers, exquisite shape, size and bewitching colour. It is commonly known as “Transvaal daisy”, “Barbeton daisy” or “African daisy”.

Gerbera belongs to the family Asteraceae and is considered to be the native of South African and Asiatic regions. They are mostly found inhabit temperate and mountainous regions. It is well distributed in South Africa, Europe, Asia and Indonesia. The genus consists of forty species of semi hardy and perennial flowering plants. Out of these only Gerbera jamesonii is under cultivation. Some other important species are G.aspleifolia, G.aurantiaca, G. kunzeana, G.viridifolia etc

Gerberas are stemless and tender perennial herbs. Leaves are radical petioled, lanceolate, deeply lobed sometimes leathery narrower at the base and wider at top are arranged in rosette at the base. Flower heads are solitary, many flowered, the conspicuous rays in one or two rows, those of the inner row when present, very short, sub tubular and two lipped. The daisies like flowers are in wide range of colours. The double cultivars sometimes have bi-coloured flowers which are very attractive. The flower stalks are long, thin and leafless and achenes beaked with pappus.

Gerberas are widely used as cut flowers because the flowers are available in numerous colours like pink, white, yellow, orange, crimson, purple and in many combinations and shades. The flowers are well suited for vase decoration and other floral arrangements on account of its lengthy robust pedicel. This hardy upright leafless stem facilitates long distance transport. Apart from this gerbera is an ideal crop for beds, borders, pot and rock garden etc. Gerbera can contribute largely to the floriculture industry by virtue of its yield potential, colour variation and long vase life.

3. Objectives:

1. To optimize the supply-chain of gerbera for local consumption in India2. To minimize post harvest losses of gerbera3. To have an insight of shelf-life of gerbera in local market

4. Methodology

The research is based on data collected on the existing techniques used in the post harvest management of Gerbera and also secondary data collected from studies carried out on related subjects.

5. Literature Review

India is a land of festivals, weddings, functions. The domestic consumption of gerbera in India is more than that is being exported. Gerbera cultivation has emerged as a very important option to progressive farmers in many parts of India, especially in Maharashtra, Karnataka, north-eastern states, U.P., and Uttaranchal. But demand for the flower in various parts of the country is emerging tremendously. So to cater the needs of the demand with good quality, matters the most. Since majority of farmers in India are small and marginal farmers, the influence of middlemen is very high. Following are the middlemen in the supply-chain of cut flowers

Florists (includes theme decorators for weddings, functions, office purposes, etc)

Wholesalers (pooling of flowers locally and selling in bulk) Retailers (retail shops)

This longer supply chain demands storage of flowers for a longer time and transportation over a longer distance thus compelling the stakeholders to compromise on the end quality of flowers.

Responsiveness and efficiency are the key decision factors involved in the decision about supply chain strategies for most of the products. The amount by which the product undergoes value addition during the time gap between production the product and its delivery to the end-user determines the choice of supply chain strategy. In case of Gerbera, the product does not change in value substantially from farm to retailer. However, longer supply chain leads to eventual increase in storage costs thus causing changes in ‘Marginal Value of Money’ which gets reflected in price making the product uncompetitive in the market.

The term ‘Marginal Value of Time’ is defined as ‘the change in value of a unit of product per unit time at a given point in the supply chain. MVT measures the cost of a unit time delay in the supply chain. (Blackburn & Scudder) When the MVT remains relatively stable over time in the supply chain, then a single design choice of either responsiveness or efficiency is appropriate. However, for fresh produce, we show that because of dramatic changes in the MVT and hence in the cost of time delays, no single design choice is appropriate for the entire chain.

Supply chain designs should be efficient in the early stages and responsive in the final stages. Also, the shorter the supply chain, the better for all the stakeholders.

6. Theoretical Framework

In this paper, there are two things that have been analyzed

1. The shelf-life of gerbera after harvest and optimizing its domestic supply-chain

2. Latest technologies available for optimizing the supply chain of gerbera

6.1 Present supply-chain of gerbera:The point-of-sales of gerbera for the farmers are different depending on the

volume of production. Generally farmers sell their produce in local mandi or to wholesalers or to retailers. The traditional supply-chain is as follows

However, the above mentioned supply chain is flawed and leads to inefficient use of resources in addition to deterioration in quality of produce.

6.2 Lacunas in traditional supply-chain:1. Improper knowledge of the supply-chain participants about the shelf-life of

gerberas which leads to poor quality of gerberas at the consumer end2. Improper knowledge of the customers of good quality gerberas3. Lack of awareness of latest technology that can be availed by the SC

participants to increase the value of the produces4. Also, as discussed above, the MVT increases with such longer supply chain.

If the number of intermediaries is reduced, the lead time will reduce, thus optimizing the use of resources in order to provide optimum quality product to the end customers.

6.3 Recommended Supply-chain model:Quality of the flowers is inversely proportional to its handling time. The

traditional supply chain is too long for the flower and its quality deteriorates before it reaches the consumer’s hand. So, to optimize the supply chain, the recommendations are given below.

Gerberas can be produced under controlled conditions throughout the year in India. Hence, the flowers are directly procured from the farmer’s field and they are stored in the warehouses of the florists. After receiving the order from the consumer’s end the flowers are dispatched from the warehouse.

This supply chain optimization will be useful in following ways

1. Better knowledge and information transfer within the supply chain. The wholesaler can be connected to a cluster of growers and buyers thus facilitating demand and supply synchronization

2. Efficient use of information technology to manage the demand supply flow, automizing the storage location, maintaining database of farmers, customers, flowers stored in the cold storage unit at a given point of time, estimated demand rise and falls and storage of flowers accordingly etc.

3. It becomes a mammoth task to link the entire traditional supply chain through reefer vans and maintaining storage units at scattered grower locations. Smaller chain with the wholesaler located either close to the farmers or to the retailers will ensure that the reefer vans can be eliminated from that part of the chain thus reducing the costs.

4. Storage unit at a single point in the supply chain will reduce the infrastructural costs

5. Traceability of the products can be increased with the help of technology given smaller number of linkages for each wholesaler at backend and front end both.

6.4 Various technologies that can be used for optimizing the supply-chain are as follows:

1. Extending the shelf-life of flowers:

6.4.1 Use of phase-change materials

Phase change materials are substances with higher heat of fusion. They are capable of storing and releasing huge energy while melting and solidifying at certain temperatures. When the materials change from solid to liquid, thy either absorb or release energy and hence Phase Change Materials fall in the category of Latent Heat Storage (LHS) units.

The phase change properties of PCMs is the main reason for their increasing applications in the industry. The solid-liquid phased change is utilized the most for industrial applications.

Although water also falls in the category of phase change materials, it is usually excluded from the PCM category by the packaging industry.

The main criteria for choosing a PCM for a certain industrial application is that the phase change temperature of the material should match with the temperature of the product. This is mainly because the PCM naturally tends to maintain the same temperature while freezing or melting.

Criteria for selection of PCM

PCM should have high phase change temperature within the required temperature range.

If a temperature range has only one limit the PCM temperature should be near the limit but still within the range.

PCM should have higher performance characteristics in order to be a better replacement for water

Product Temperature Range PCM Temperature

2°C to 8°C 5°C

15°C to 30°C 22°C

-10°C to 10°C 0°C

Below 30°C 25°C to 28°C

Below -10°C -25°C to -15°C

Phase 5™ 5°C Phase Change Material

6.4.2 Application of time-temperature indicator

Definition

Time temperature indicators (TTI) are devices or smart labels that display accumulated time-temperature history of a product. They require less energy for operation and also are inexpensive.

Two functions of TTI

To monitor the thermal history of the products they are affixed to To provide information about the product both before purchase (warehouses,

transportation, display at the point of sale, etc.) and after purchase (when the end-user is in the possession of the product)

Technology

Based on the technology used, huge varieties of time temperature indicators are available in the market. Some TTIS use migration of dye through a filter paper, while others contain pouches with bacterial fluids which change colour when certain time-temperature combinations have been reached. To the extent that the physical changes in the TTI match the degradation rate of the food, the TTI helps to indicate the estimated level of food degradation.

Full temperature history of a shipment can be indicated by using Digital Temperature data loggers. This helps in identifying the time period for which out-of-tolerance range temperatures were detected. This temperature history can be used to calculate the loss of shelf life or the likelihood of spoilage. These small recorders are also used to identify the time (and thus location) of a shipment when the problem occurred, which allows for corrective action.

Application

TTIs are usually used on food, pharmaceutical and medical products to show the exposure to out-of-tolerance temperatures (and time at temperature). TTIS can also be used on flowers that are dependent on a controlled temperature environment. Certain technologies can also be used for the cold chain.

Currently Available Commercial TTIs

1. Partial History TTI

Partial history Time Temperature Indicators do not respond unless the threshold limit has been exceeded and indicate that the product has been exposed to temperature sufficient enough to damage the product’s quality or safety.

2. Full history TTI

Full history TTI gives continuous temperature dependent responses throughout the product’s history and is a major area of interest for both, researchers and commercial users.

a. Progressive Response

In progressive response TTIs, a spot continuously darkens or lightens at the rate which depends on temperature.

Drawback: The readings are not quantitative and may be subjective or even confusing.

Diffusion based TTIs

For products with less shelf life, diffusion-based sensors are designed which change their resistance proportional to the amount of diffused water and thus the TTI. The process starts by itself with filling the package with a water-containing good whereas storage in a dry ambience does not affect the sensor. A barrier layer which is adapted to desired TTI characteristic is used to control the diffusion into a polymer with decreasing conductivity in the presence of water. Depending on the surrounding temperature, the polymer layers allow water to permeate.

6.4.3 Using supply-chain softwares:

Eg. Frontalrain

Supply chain softwares can help the wholesaler in better management of the frontend and backend linkages. Also, demand forecasting, database of existing inventory is facilitated with the use of such softwares.

6.4.4 Use of RFID:

Any RFID system consists of three parts:

the RFID tag itself, the RFID reader device, and a backend IT system

Also an antenna is used to communicate with the remote reader device.

The reader device communicates with the RFID tag by sending and receiving radio-frequency waves. The backend IT system is responsible for cross-checking RFID tag's ID number with the record in the database which describes the object to which the tag is attached.

Although RFID is similar to bar-coding in some ways; (both technologies using labels and scanners to read the labels, and both relying on IT systems which

verify ID on the label and matches it with the object or a class of objects using a database system) , from an user’s point of view, RFID has benefits over barcode in following ways

1. line of sight is not required2. More than one parallel reads are possible at a time3. Individual products can be identified instead of individual products4. Read/Write capability

6.4.4 Automation

Automated Storage and Retrieval Systems (ASRS) may not be a new technology, but adoption of ASRS has been slow. Those using automation, whether fully or partially, have seen the benefits and it savings in labor costs and 60-80 percent savings in energy expenditures, working in a footprint that is at least 40-50 percent smaller.

6.4.5 Improving Energy Efficiency

Refrigeration and warehouse lighting comprise 90% of the electrical demand of the cold storage warehouses. Thus great emphasis is placed on the design and operation of warehouses and refrigeration systems.

In addition to the advanced features of newest facilities, investments have to be made in retrofitting existing warehouses to improve performance and reduce energy consumption. The following facilities feature these technologies which has become very popular these days.

CO2 Cascade refrigeration systems

Bi-level fluorescent and Pulse Start HID Lighting

Variable Frequency Drives on evaporators and condensers

High efficiency motors and electronic starters

High efficiency evaporator and condenser design

Highly-reflective white roof membranes

High speed bi-parting freezer doors

Energy optimized refrigeration control systems

High frequency battery chargers

Continuous Pit Dock Door Design

The use of refrigerated warehouses to utilize the innovative Carbon Dioxide (CO2) Cascade refrigeration system has become very common in developed countries. Carbon Dioxide Cascade refrigeration systems are proving to be more efficient, simpler to maintain, and safer to operate than typical two- or single stage ammonia refrigeration systems.

There is a method to dramatically reduce energy demands and increase efficiency through the use of LED lighting both on the dock and in the freezer. LED lighting emits less heat than conventional light bulbs and uses a fraction of the electricity hence being more environment friendly and less at carbon dioxide emission, hence making the cold chain more effective.

7. Conclusion

Existing supply chain has following lacunas :

1. Improper knowledge of the supply-chain participants about the shelf-life of gerberas which leads to poor quality of gerberas at the consumer end

2. Improper knowledge of the customers of good quality gerberas3. Lack of awareness of latest technology that can be availed by the SC

participants to increase the value of the produces4. Also, as discussed above, the MVT increases with such longer supply chain.

These hurdles can be overcome by reducing the number of intermediaries in the supply chain

8. Recommendations1. Developing the supply chain such that only wholesaler maintains a large

storage facility in the entire supply chain. 2. Wholesaler procures directly from a selected cluster of growers and then

supplies flowers to retailers as per demand3. Wholesaler’s storage facility is located either near the farmer end or the

retailer end of the chain thus eliminating reefer vans from one side of the chain

4. Extensive use of technology in order to monitor shelf life of the flowers, maintaining the storage unit as well as storage container during cold logistics, maintenance of proper database, logsheets etc. with the help of technological developments discussed in the paper.

5. Bibliography

Joseph Blackburn & Gary Scudder, 2002, “Supply Chain Strategies for Perishable Products: The Case of Fresh Produce”Celikel and Reid, 2002, “Storage Temperature Affects the Quality of Cut Flowers”HortiScience 37(1):148-150, 2002Tjia and Black, 1991, “Gerberas of Florida”, University of Florida, Circular 527, February 1991Hortex Newsletter, Volume 10 November 3 2010