Aug 31, 2023

In what is considered a rapidly expanding industry, cold chain logistics have to do with supply chains that associate with temperature-based items. These include refrigerated production, storage, and distribution facilities that can maintain a low-temperature range constantly. Cold chain logistics have become a vital part of the supply chain on a global scale. The products that are featured within this industry are everywhere. The prescription picked up from one’s pharmacy falls under the same umbrella as the frozen pizza bought from a grocery store: they were likely manufactured and transported under specific temperature sensitivity.

With these value increases comes a demand for new and revolutionary trends within cold chain logistics. Companies are constantly searching for innovative ideas and technology to help keep up with higher demand. However, with cold chain logistics comes the obvious: these products have shorter shelf lives and temperature-sensitive needs. While time is money, businesses that try to rush into this new era head-on will only see product mismanagement, a higher percentage of waste, and profit loss.

It's important to consider what trends are consistently reshaping cold chain management. Every business is different, whether that’s from the size of the company or the product they distribute. A larger pharmaceutical is not going to follow the same trends as a local grocery store, for example. Here is a closer look at the 3 trends in cold chain logistics that are truly reshaping the industry across the board.

Technological Advancements and Investments

Similar to any manufacturer or distributor, supply chain logistics often involve a great deal of tools and equipment. With cold chain logistics, there is a greater emphasis in particular on products that can handle extreme temperature differences. For example, a GPS tracker in a delivery truck needs to be able to handle the cold if the truck is handling produce. These labels need to also provide real-time data so that distributors can find discrepancies. This is important considering food waste happens at an alarmingly high rate.

One of the most important things to consider with these pieces of equipment is what temperatures they can handle. Most food storage, for example, typically falls under 40 degrees Fahrenheit, with frozen food stored at 32 degrees Fahrenheit. Meanwhile, medical storage has a wider range, from some drugs needing to be at room temperature to others needing to be exactly between 36 to 46 degrees Fahrenheit. Different tools, regulations, and energy use have to be considered based on what exactly is being stored.

Automation with cold chain technology is particularly important as well, as it often deals with last-mile procedures, considered the most important part of cold chain management. Being able to track products from the moment they leave the warehouse to the second they arrive at a retailer or seller is why so many companies are investing in the latest traceability technology. Detachable technology, RFID scanners and mobile devices, and temperature-sensitive labels help companies see a positive ROI on these devices.

New Regulations and Rules

The initiative towards better cold chain logistics isn’t just driven by an incentive towards profitability. With a rise in foodborne illnesses and other increases in waste, the result has been a change in the rules. For example, the Food Safety Modernization Act (FSMA) was written into law back in 2011. This act allows the Food and Drug Administration (FDA) to implement new regulations for companies, including the packaging and transporting processes.

The FSMA rules are meant to cover a wide variety of goods within the global supply chain with clear expectations and deadlines. These in turn have put pressure on food and beverage companies to stay in the now. Consequences of not meeting the FSMA include…

• Mandatory food recalls
• Suspension of a facility’s food registration
• Potential legal involvement

As a result, businesses are working to create new solutions and ultimately help to decrease waste. These solutions include food safety plans, better traceability, and improved food packaging and manufacturing. An emphasis on maintaining these new guidelines certainly has companies dealing with cold chain logistics walking a fine line. Implementing long-term solutions and policies can help keep businesses productive and avoid any changes down the line as mandates and laws change.

Online Grocery Services

In recent years, the growth of online grocery services within cold chain logistics has seen a change in how people are shopping. More digital options, such as delivering groceries straight to one’s door, is a newer trend that has seen substantial growth and is now a larger player in e-commerce. These services allow consumers to shop from the comfort of their homes without the hassle of driving and shopping in an actual store, yet the expectations for e-commerce grocery stores remain similar to that of a real one.

Time is of the utmost importance now more than ever, as consumers demand quick deliveries. This not only means a more efficient system but also an increase in product scrutiny with freshness. Perishable items in particular have to be able to make it out the door and safely on the doorsteps of customers.

Consumers are also expecting items to be in stock, or to be able to understand when a certain item will be back on the shelves. Inventory control and asset management don’t change for online grocery stores either. These businesses in turn will look towards the latest in RFID tracking services to help manage a higher online demand all while working towards delivering these items in a timely manner.

Cold chain logistics can be managed with the spike in recent trends. From acquiring new technology to redefining the rules, cold chain management has continued to be a vital part of the global economy.

Finding solutions to some of these aforementioned situations is where Heartland steps in. Heartland prides itself on being a leader in cold chain management. With years of experience in this industry and a commitment to offering smarter solutions, Heartland strives for creating a custom solution unique to your business. Take the next steps in cold chain logistics today.