The acclimatized logistic chain, also called cold chains, is constituted as the logistic chain of products which need temperature control during transport and storage. When we hear the term cold chains, we think only of foods such as meat and ice cream, but the list of products that permeate this chain is extensive, with examples such as: fruits and vegetables, fine sweets, cheeses, wines, plants and flowers, vaccines, medicines, cosmetics and even even movies and art pieces. These are products that often do not need to be transported at negative temperatures, but require strict temperature control.
The complexities in this logistics chain are very diverse, from manufacturing to the point of sale. With regard to transport, whether transferring between installations or distribution, the high cost of contracting, due to refrigerators, is what most calls attention. However, the challenges go beyond this, as listed below.
- About hiring: transport with temperature control has a smaller number of players available among cargo transport service providers. The high cost of implements, greater government regulations and the need for technology for continuous temperature control are factors that make it difficult to increase the supply of this type of transport. It is common for carriers to negotiate cargo volume guarantees with their customers so that they can then make investments in this segment. It is noteworthy that, at peak times such as major national holidays, hiring transport becomes even more challenging.
- About temperature control: The wide range of products transported in air-conditioned vehicles brings the challenge of the ideal temperature range to the chain. There are items that must be kept between 0ºC and 3ºC, such as some fruits, while for some chocolates you want to keep between 12ºC and 14ºC. For each item, there is a temperature setting, which needs to be guaranteed by the carrier. In addition to the necessary accuracy, it is essential that there is thermal monitoring throughout the journey. Still, many times the shipper requests a tracking throughout the route, allowing real-time monitoring with alerts if the temperature goes outside the desired range.
- About the transition between modes: as stated above, temperature control throughout the transport journey is a necessity in this chain. This even extends to air and sea transport and to the transition between modes. This fact makes the decision to use multi-modal complex, seeking reduced costs or faster transport times. Choosing to use containers, which need to be kept refrigerated 100% of the time, including when waiting at cargo terminals, raises costs and makes operations more difficult.
- About last mile: if we find difficulty in thermal maintenance in airplanes and ships, let alone in the vehicles used for distribution. In urban centers, the last mile it is often carried out by motorcycles or utility vehicles, even more frequent with the growth of e-commerce. For the air-conditioned logistics chain, this becomes yet another challenge, as temperature control requires refrigeration equipment or packaging with high thermal insulation capacity, maintaining the quality of the products until their destination.
- About the operation: it is inevitable that the items mentioned above will put pressure on the operation of this chain. In the quest for cost reduction, high productivity becomes even more essential. The greater the turnover of vehicles, the lower the cost per transported unit. Thus, loading and unloading operational times become even more relevant, as well as very well planned routes. Another relevant factor in the cost per unit is vehicle occupancy, which many times is already reduced by refrigeration equipment.
It is clear that companies that are willing to work with air-conditioned products face several challenges in order to maintain the quality of their products. And note that in this post I only addressed the impacts of temperature control on transport! I'll be back another day to bring up the complexities of warehousing this supply chain for discussion. Meet you soon.
References:
– Sumit Varma – LinkedIn Pulse (13/07/2022): Cold Chain Logistics Complexities and Possible Solutions
– Food Logistics (13/07/2018): Mastering the Complexities of the Cold Chain
– Logistics Brew: What is Cold Storage & How Does Cold Storage Work?
– Jetcar: Transport à chaud, deliver rapide
– Cargo Connect (17/02/2020): Managing complexity within the Food Supply Chain
– Totvs (14/10/2021): Cold Chain: understand what it represents for the logistics sector
Marina Pomaleski
He has been part of the ILOS Team since 2018, working on projects focused on Logistics and Supply Chain. His experiences encompass major players in the cement, polymers and consumer goods industries, as well as retail companies. Types of projects carried out at ILOS: Transport management, transport contracting strategy, advice on the impacts of setting minimum freight levels, fleet sizing, process mapping and optimization, reduction of return rates.
