In this paper the enhancement of temperature sensitive product conditions when the product is placed in chilly bins is studied. The aim is to develop a numerical model for a bin used to store cold or hot food. Phase change materials (PCM) were used to allow longer time for transport and storage without affecting the quality of perishable products. The mathematical model is validated with the measured experimental data which proved the usefulness of using PCM in cold storage. The benefit of using PCM was demonstrated since it maintained product temperature constant for longer periods. The numerical model may be used for effective design of new chilly bins for use in storage of food.