Spurred by increasing demand, cold chain food logistics is rapidly advancing thanks to modern technology and advanced freight logistics solutions.
Cold chain logistics isn't discussed as often as other types of food logistics. It is far more challenging and precarious, making it essential for distributors and all other members of the supply chain to have honed in on the ideal logistics methods.
Cold chain logistics is a specialized area in food logistics designed to provide safe movement of perishable food, ensuring it is maintained at the proper temperature at every stage of the supply chain. Globally, this market is expected to grow to $826.33 billion by 2032, a CAGR of 13%. This specialized area of logistics requires careful planning, high-end technology with precision management, and some of the most advanced packaging and refrigeration on the market. Take a closer look at what makes this industry more challenging than others and the new technology that's helping to advance opportunities for global industry growth.
The obvious concern in shipping perishable food is how to do so while preserving the product's safety and quality. Yet several factors make this challenging in cold chain logistics.
- Condensation and temperature changes due to faulty equipment: A very common problem is the breakdown of critical equipment, even for a short period of time. Temperatures rise and fall, creating a risk of freezer burn, condensation, and product damage. Equipment that malfunctions suddenly is by far the largest concern in the logistics management process because of the damage it can cause in minutes. The only route to minimizing these risks is to have backup support available to continuously maintain accurate temperatures. Notably, working with proven cold chain-specific logistics companies, as well as those with the most advanced technology to oversee product management, can offer support.
- Human errors: Mistakes in refrigerated logistics often involve human error. Highly trained professionals should be the only parties to play an active role in the management of logistics. Lack of efficiency in operations or poor equipment management can lead to a high risk of damage to food products. Education on proper handling and best practices in cold product management is critical to overcoming these challenges. Technological advancements that automate various tasks and steps could provide some relief to operational management.
- High costs: Cold chain logistics is capital-intensive, involving high costs for specialized equipment, refrigerated transport, temperature monitoring systems, and energy consumption. Maintaining cold storage facilities and refrigerated vehicles, especially those that meet stringent standards, can be expensive. High operational costs can be a barrier for smaller companies and make it challenging to maintain competitive pricing, particularly in low-margin industries like food.
Mastering Temperature Control for Cold Chain Success
When considering cold chain management success, it is critical to understand the delicate balance within these environments. Temperature is a key factor, as are moisture and humidity levels. Light, carbon dioxide, and oxygen also play a role in how quickly products deteriorate in these environments.
Success requires highly specialized equipment that maintains the quality and safety of the product as it moves through the supply chain, with careful monitoring of environmental conditions at every stage of the process. This includes the initial production and packaging through transportation, storage and, eventually, the distribution of products. To create the ideal environment, supply chain logistics partners must develop an environment that offers several key elements:
- A steady and consistent temperature specific to the product (typically ranging from 0° Fahrenheit to -22° F (-18° Celsius to -30° C) for ice cream products to 34° F - 50° F (1° C - 10° C for fruits and vegetables).
- Refrigerated vehicles with solid maintenance and upkeep to provide for safe transport of products. Even slight differences in one vehicle to the next can create unsafe conditions for products. Careful monitoring throughout this transfer is critical.
Using specialized carriers who have the experience and technology to master the cold supply chain, organizations improve their ability to deliver top-quality products with limited to no damage and waste. This improves bottom-line efficiencies throughout the industry.
To maintain food safety and quality at every stage of the cold chain logistics process, organizations must utilize technology to monitor, automate, and alert to concerns quickly and accurately in real time.
GPS-enabled monitoring: One of the most effective strategies for maintaining food safety during the refrigerated logistics process is to use GPS-enabled temperature monitoring. This process enables drivers and distribution centers to have a constant "eye" on the products' temperature even as they move through various stops and levels of the supply chain. This ensures consistency while also creating a traceable record that can be used to verify the safety goals met along the journey.
Loading and unloading: Another key risk faced in the cold chain logistics process is safe and efficient loading and unloading. During these periods, the product is most at risk for changes in temperature, and without in-place, proven, and highly developed processes for loading and unloading, the product can suffer easily. Minimizing exposure to non-optimal temperatures is critical for food safety.
Smart packaging: Smart packaging provides new ways for logistics providers and product owners to monitor the overall food safety and quality of products throughout the supply chain. These tools enable companies to monitor the condition of food products in real time, enabling the monitoring of critical components, such as humidity levels, temperatures, and exposures to pathogens.
Efficient Transport Strategies for Perishable Items
Timelines matter to all parts of the supply chain and logistics industry. Non-perishable products, such as paper towels, need to arrive on time to meet goals and expectations. However, a case pack of fruit is not going to last indefinitely. Consider some of the strategies available to mitigate risk to perishable items:
Select the best mode of transportation. Efficiency is important, but choosing a cold chain logistics organization with a proven track record of safely moving cold and perishable products is essential. This starts with considering not just efficient modes of transportation, such as trucking, but also the fastest methods, such as air freight. Balancing costs along with speed enables organizations to make better decisions.
Utilize temperature-controlled logistics. In this area, transporting and storing perishable goods is done in a very precise environment, including the transportation's humidity and temperature levels. Proper equipment such as trucks and planes needs to be used, and organizations should also embed sensors to monitor conditions with reliability and transparency.
Negotiate with logistics providers to keep costs in line. Refrigerated logistics is one of the most expensive components of moving food or pharmaceutical products around. Utilizing a robust third-party logistics or managed transportation services provider is also necessary. They are able to negotiate the best pricing for even the most sensitive transportation needs. Apply strategies to all areas of cold chain logistics:
- Energy efficiency standards;
- Compliance and regulation management;
- Air circulation and ventilation improvement;
- Humidity control devices and methods;
- Temperature fluctuation control and sensing tools.
Cold chain logistics will grow exponentially over the coming months and years as more globally sourced products become available. Consider the demand, with some studies reporting a 34% increase in the demand for frozen food products alone since 2019.
Consider some of the most important refrigerated logistics trends playing out right now:
Expect market volume to increase, including in the area of global frozen foods. A compounded annual growth rate of 5.4% is possible from 2022 through 2030. This will increase the demand for highly trained specialists.
Automation will aid in reducing human errors while also improving speed. Machines can move products and maneuver items more efficiently than can be done by humans alone. This enables lower costs and improved product management quality.
Sustainability efforts are underway. Shippers will need to develop a holistic approach combining more efficient transportation, improved energy efficiency, and strategies to minimize food waste due to spoilage.
With opportunities in cold chain logistics now readily available throughout the industry, products that are typically highly sensitive can be transported around the world. With technological advancements offering better precision management and overall functionality that keeps costs in line, refrigerated logistics will remain and grow into one of the most important sectors of the supply chain industry. Who doesn't want to sample cold products from Europe or tap into the freshest fish coming out of the Alaskan coastline? With cold chain logistics, you can count on exceptional results every time.