Explore the future of cold chain logistics and discover the top trends shaping the industry. Delve into sustainable cold storage solutions and learn more about the transformative landscape of temperature-controlled logistics. Stay informed, stay ahead!
A cold chain product in the logistics industry is where the product needs to be maintained at a cold temperature. The specified temperature needs to be maintained from the collection to the delivery. In the third-party logistics industry, the company should have the equipment and the facilities to maintain this temperature during the various stages of product transfer. Cold chain logistics is usually more complicated than regular logistics. This is because they deal with perishable products that must be delivered within a specific timeframe. Although this field is quite complex, it withstands the test of time as there is always a requirement to ship cold, perishable, and temperature-sensitive goods.
What are the Top Trends in Cold Chain Logistics?
The face of cold chain logistics has changed significantly in recent years. Customer expectations and changes in business trends have molded the shape of the cold chain logistics industry to its current form. Let us discuss a few trends that can shape the future of cold chain logistics.
• Demand for a Better Level of Service
The cold chain logistics industry is set to grow further in the future. With the growth comes new expectations. One of the major expectations is better service. More and more companies are working closely with third-party logistics (3PL) companies to meet their requirements. The companies have shipping and logistics requirements as per usual. However, they are also looking at the 3PL providers for new and innovative solutions and ideas to make the process more seamless. The companies expect the 3PL providers to have plans for issues such as labor shortages and natural disasters. They want a provider with a solid business continuity plan. So the level of service these companies expect nowadays is higher than ever.
• Expectations of a Flexible 3PL
Along with the expectation of better service, companies are looking for a 3PL provider who can be flexible according to the market demands. The companies want the 3PL provider to be able to adapt to any changes. They want the service providers to be able to have an adjustable plan of shipment. Furthermore, they also want visibility of the entire process. The companies expect transparency in the entire transaction. They want to track all the stages of the product shipment, and since this is cold chain logistics, they also want an update on the temperature maintained.
• Better Usage of Warehouse
Warehouse plays an important role in cold chain logistics. Managing the warehouse space effectively and maintaining a dry environment is key for cold chain products. Companies are expecting their 3PL providers to have more products available with them, stored at their warehouses. Suppose there is an unforeseen disruption in product delivery. In that case, they can still deliver the excess products ready at their warehouses. The challenge here is to build a warehouse equipped with the equipment required to house cold chain products.
• Combat Labor Shortage
In the past, there has been a lack of drivers to transport goods across the entire 3PL industry. However, in the future, the 3PL industry, including the cold chain sector, will see a severe lack of labor in general. The solution is to implement and integrate robotics and artificial intelligence (AI) into their process to combat this labor shortage. While a considerable investment is involved in implementing and maintaining these technologies, the cost of searching and the ever-increasing wages of skilled laborers might also be a hurdle. Therefore, the companies are looking for 3PL providers who can demonstrate that they have effectively combat these labor shortages.
• Better Differentiator Than Cost
All the existing 3PL companies in the market offer their services at a competitive rate. So, the cost of the service is not an adequate differentiator anymore. Currently, the differentiator is the quality of service you provide and the value-added services you give the customer. Suppose you have a well-run warehouse space and a smooth distribution service. In that case, it will give you a distinctive edge over your competitors. This is especially true in the current scenario where proper storage in the warehouse facility is a big obstacle worldwide.
• Include Digitalization
One of the technologies that will continue to grow in cold chain logistics is digital freight matching. In this technology, the system matches an available space with a carrier. Additionally, the technology also calculates the price and offers an instantaneous quotation. This technology reduces the errors in matching available spots with the carriers and uses the services more effectively. In the future of logistics, 3PL providers will need to incorporate more digitalization and technologies such as AI in their processes. Incorporating these technologies effectively will ensure the process is smooth, error-free, and quick.
• Embrace Sustainability
One of the key trends in cold chain logistics will be sustainability. The 3PL provider will have to conduct every aspect of their business sustainably. They will have to take active measures to reduce emissions, lower their carbon footprint, and be more eco-friendly. Controlling the temperature and lighting through sensors and other such efforts will be a key player. Another serious effort will be to use electric vehicles and control the HVAC system to be more effective.
• Better Solutions for Cold Storage
One of the biggest demands in cold chain logistics will be better and new storage methods for these products. The packaging and the storing of these products will be of utmost importance. 3PL providers will have to be innovative with their solutions. Suppose they don’t have a warehouse specifically for cold storage. In that case, the providers will have to develop ideas such as floating warehouses to combat these problems. The packaging also needs to be effective because if the products are spoiled during delivery, the provider will have to bear the damages and insurance costs.
Conclusion:
As per a recent Precedence Research report, the cold chain logistics market had a value of $304.8 billion in 2022. It is predicted to increase to $892.6 billion by 2030. This growth will depend heavily on the success of the grocery and pharmaceutical industries. In conclusion, the cold chain logistics market will see an exponential inclusion of digitalization, improved sustainability, and better automation. If you plan to tap into this industry, be ready to embrace these changes.
If you require help with cold chain logistics, contact XPDEL for expert logistics solutions.
About XPDEL:
XPDEL helps eCommerce brands accelerate their growth, empowering them with multi-channel fulfillment, whether shipping directly to consumers, delivering to businesses, or selling through retail stores. We are founded and operated by veterans with experience from Amazon, FedEx, UPS, JDA, Walmart, Target, and other leading companies in eCommerce and Retail. Guided by these experts, we provide customer experiences that help you grow your business.
