In 2022, the cold chain logistics trends are all set to change for the better. With the evolving technology, it is no longer difficult for food corporations to find optimum logistics and warehousing solutions for temperature-sensitive products. However, along with the evolving technology, consumer trends are also changing. So much so, that today, the need for Melbourne third-party logistics that provide flexible solutions for the cold chain industry is increasing. Cold storage and transportation modes will have to step up their game in order to keep up with the changing consumer demands.
There is an increased need for home delivery of products like groceries and even medicines. The pandemic was the primary driver of this change in consumer demand and in the way the consumer expects this demand to be fulfilled. However, it is likely to continue and become a norm in the present world as it adds to the convenience of everyday life for the consumer.
On the other hand, life-saving pharma products need to be delivered in time and under the right conditions in order to be effective and safe for use. These new expectations have led to an increase in demand for cold chain logistics solutions. As a result, the refrigerated warehousing and cold chain solutions trends are changing. And that is what I’m going to discuss in this blog.
Scope for 3PL in Refrigerated Warehousing & Cold-Chain Logistics
The logistics industry can benefit immensely from this emerging demand for cold chain warehousing and logistics, provided they are prepared with the right equipment and digital advancements to make it happen. Industry analysts have stated that it would be important for all logistics businesses to expand their operations and include cold chain solutions in their services if they are aiming at a steady growth in the next few years.
Cold Chain Logistics Trends to Look Out for in 2022
Here are the top trends in cold chain logistics that you should look out for and incorporate in your own logistics operations in 2022 –
Traceability
Traceability is a big factor in logistics. Being able to know where your goods are gives a satisfaction and guarantee to the customer and makes them believe that their goods will be delivered. AWL India is a logistics provider that uses a digital dashboard, Chakshu, to help the user trace, monitor and update the status of the goods from any remote location. It was through this dashboard’s digital support that the logistics company was able to streamline its operations and improve decision making during the covid second wave crisis. Simple software can help you track products and even forecast demand, based on the current number of sales.
Since products that require cold chain solutions are temperature-sensitive, and prone to damage, the option of surveying the status of such products as per your convenience is always helpful. Through a software that keeps the customer on the loop, tracing the temperature-sensitive products and enquiring about them in case of any emergency becomes much more feasible.
Efficiency
Today, the efficiency of cold chain operations is among the biggest demands from the logistics industry. Last year during the covid emergency, it was upon the shoulders of the logistics industry to distribute the covid vaccines and other life-saving, temperature-sensitive pharma products. And it had to be done efficiently – on time, in the best possible condition.
Realizing the huge role the logistics industry had to play in helping save human lives during such a global health crisis, the government acknowledged the efforts of the industry. Now, in India, the government is all set to invest resources in the logistics industry to help make its operations more efficient. Technology will play a big role in making it happen. Logistics parks are also on the agenda of the government to help support the industry. With growing investment in the industry, the intent would be to improve the overall efficiency to cater to the growing demands of the industry. Again, digital transformation would be very much needed to make that happen. By automating certain processes and handing the human resources the right equipment, the entire cold chain operations can be streamlined.
Security
With the rising use in technology like RFID tags, CCTV monitoring, digital dashboards to trace the goods, anti-theft devices, etc., it is becoming imperative to also invest in security. Temperature sensitive goods require high-level security and constant monitoring to ensure that they are being kept in optimal conditions. If not done so, they may get damaged and may result in losses for the company. To avoid this, again, the support of technology is a must. In addition, the warehouses must also be periodically monitored and checked if they are up to date with the technology that temperature-sensitive products need to thrive in.
As the cold-chain warehousing services are expected to be demanded more and more in the coming times, it is vital that the existing logistics service providers of cold-chain management take the necessary steps to ensure security of products. Both digital and physical solutions will be required to keep things under control. Better surveillance is obviously the way to go but so is investing in trained personnel capable of managing emergencies in cold chain warehousing.
Factors that Would Affect Cold Chain Warehousing in 2022
The following are some factors that can have both positive and negative impacts on cold chain warehousing in the near future –
- Increased Demand for Pharmaceuticals
As the world is still pretty much in the grip of a pandemic, the pharmaceutical industry is expected to witness an increase in demand for products like vaccines, drugs, equipment, and more. And of course, as many of these products will be sensitive to temperature changes, the industry will demand better and reliable cold chain solutions to store the products in optimum conditions. It will also demand a more streamlined worldwide network for efficient transportation.
- High Cost of Operations
The industry will require some standardization and support through investment to meet the ever-rising cost of operations. Labor and digital assets both require investments and as the cold chain logistics sector continues to grow, it will need support to grow at the same steady pace. The operational costs for cold chain operations are also high because of higher energy requirements. Equipment like freezers, lighting, heaters, and vehicles with ventilators and cooling gears not only require investment but also cost of maintenance and continued operations.
- More Demand for Cold-Chain Warehouses
Refrigerated warehousing will see an increase in demand in the coming years. As the food & beverage businesses continue to grow on a global scale, refrigerated warehouses will be required for their operation. Most food & beverage products, cosmetics, and pharma products require refrigerated storage under strictly controlled temperatures. So, the industry is anticipating a huge upcoming demand for more refrigerated warehouses.
Conclusion
As the demand for cold chain logistics solutions rise, third-party logistics service providers also get a greater chance to penetrate the industry with innovative support. On-demand warehousing and logistics services will also aid the emerging e-commerce and food & beverages sectors to reach their consumer base more quickly. Many changes are on the way for the cold chain logistics sector, and to keep up with the changing demands, the businesses within the industries would have to incorporate the use of technology and strategic decision-making.
