9 best cold chain practices you should be doing now
In the last decade, cold chain logistics have become more complex than ever. Regulatory requirements are more difficult to satisfy, and the demand for food is increasing rapidly. It is imperative for decision-makers to follow best practices to decrease loss, as well as scale operations based on current and increasing demand.
Consumers have also become increasingly picky about the food they consume, preferring to know of its origin. They are also willing to pay more for the “farm-to-table” approach instead of frozen produce.
As a logistics provider, how do you grow along with the demand, minimize risk, and satisfy logistic requirements?
Below are some of the best practices we at Post Harvest recommend to maximise and run a successful supply chain.
9 cold chain practices you should be doing now
1. Proper shipment preparations
2. Ensuring the "cold" in the cold chain
3. The correct choice of packaging
4. Maintaining SOP's globally
5. Smarter cost management
6. Investing in technology
7. Building skilled teams
8. Continuous compliance
9. Leveraging artificial intelligence
1) Proper Shipment Preparation
Before you begin sending your products through your supply chain, it is imperative to understand the chemical and biological characteristics as well as the shelf life of your products. Most are in a temperature-sensitive range that they require for freshness.
The majority of cold chain equipment has been designed to maintain temperatures at specific levels and does not shift the shipment to the required temperature. Cooling systems must be employed, to ensure that temperatures are maintained and monitored along-side the produce being shipped. This helps with total quality management across the cold chain.
A fact well known, fresh fruit and vegetables can be finicky. One small slip and your produce can begin to omit ethylene, which in turn can begin to affect and spoil the other produce within its container, which results in further food loss. We recommend that for optimal post-harvest handling, all cool rooms should have temperature readings, humidity, CO2, and ethylene levels monitored as well.It is also important that the equipment that is being transported inside the supply chain be precooled as well as steam cleaned before the next shipment. This helps avoid additional contamination and spoiled produce.
2) Ensuring the ‘Cold’ in the Cold Chain
In recent years, advancements in cold chain technology have introduced diverse temperature standards to accommodate a wide variety of products and specific requirements. Ranging from cryogenic temperatures as low as -135 degrees Celsius to various Controlled Room Temperatures (CRTs) covering deep-frozen to chilled conditions, cold chain operators now have more options to suit the unique needs of different goods.
Maintaining the recommended temperature range at each stage of the supply chain is crucial, and continuous monitoring is essential to promptly address any sudden fluctuations. It's imperative for cold chain operators to consider weather predictions and potential changes throughout the journey and at the destination. Reefers, equipped with their own power supplies, are recommended as they can handle external temperature variations and make necessary adjustments.
For fruits' ripening control during transit, atmospheric control plays a vital role. Alongside utilizing post-harvest sensory units, wrapping shipments in polyethylene bags can prevent the spread of ethylene, a natural plant hormone, and safeguard other produce from its effects. This comprehensive approach ensures the integrity of products during transportation.
3) The correct choice of packaging
There are two main types of packaging, active and passive. Active packing involves thermostatic control and an energy source, it also has monitoring mechanisms such as a GPS.
Passive, however, involves more conventional packages that use dry ice, ice, or water that are placed to keep produce at the required temperatures. Both shipments are vulnerable to changes in the atmosphere, especially when there are disruptions and delays in the supply chain and transport.
You must always consider both the cost and risks of both types and ask questions such as- how much risk can you actually take on? Apart from monetary risk, there is also loss of brand value and market share, should products quality be affected at delivery.
4) Maintaining SOP’s Globally
When transporting high-value goods globally, it is crucial to establish well-strategized processes and procedures to ensure the security and integrity of the cargo. Begin by defining essential processes, including in-transit and storage requirements, and identify potential risk factors that may be encountered throughout the supply chain.
Examples of such processes include guidelines for handling situations like container breakage, product leakage, or flight delays. Develop Standard Operating Procedures (SOPs) to standardize responses and actions across various risk scenarios. Collaborate closely with clients, particularly in high-risk situations, to enhance communication and coordination.
Effective collaboration is key to successfully managing risks in the transportation of valuable goods. Regular communication and shared protocols between stakeholders contribute to a more robust and secure supply chain.
5) Smarter Cost Management
Understanding total costs is a valuable approach for comprehending risks and planning to mitigate them effectively. It is crucial to consider direct, indirect, and hidden costs associated with the entire supply chain process. Rather than focusing solely on purchase price-based management, adopting a Total Cost of Ownership (TCO) perspective provides a more comprehensive view.
TCO allows for the incorporation of both direct and indirect costs, including unexpected expenses such as penalties, loss of business, or market share. These real risks can result in tangible costs if the cold chain experiences failures. In summary, Third-party Logistics (3PL) providers must prioritize economizing all aspects of the cold chain, incorporating TCO to minimize risks and ensure the success of their operations and client partnerships. Failure to consider TCO may expose businesses to significant risks.
6) Investing in Technology
It’s a well-known fact that half of all fresh produce worldwide ends up wasted. A large part of this happens across the supply chain, and it is our social responsibility working in the fresh produce industry to help reduce these losses.
To avoid this, it is incredibly important to make sure that specific temperatures are set and maintained during transportation.
Investing in environmental sensors that can monitor specifics such as temperature, humidity, and ethylene levels is not only recommended but critical. Invest in tech such as the Post Harvest sensor that can monitor in real-time, and send alerts to those monitoring it.
The best fleet management systems on the market not only have this tech, but also use GPS to monitor location, and atmospheric changes. If there are breakdowns, power outages, or open doors, these management systems can correct the issue before it begins to impact the product itself.
7) Building Skilled Teams
You can invest in the best technology on the market, but if you don’t have the right people and teams operating, it’s safe to say you won’t be too successful. Your teams make the supply chain run, your business is only as successful as they are.
Make sure they have adequate knowledge of good distribution practices in the areas they work in. You can find many free online courses via Postharvest Learning.Having ongoing team training, and creating niche teams that specialise across all areas of your supply chain is a major key in your success as a logistics company.
8) Continuous Compliance
When the FDA introduced the Food Safety Modernisation Act (FSMA), they started becoming more proactive with enforcing food safety as well as preventing contamination. Supply chains and logistic companies need to partner along and set goals on having a higher environmental impact.
Your 3PL’s should aim to meet this challenge and become experts in compliance. Procedures such as monitoring and regularly logging temperature and humidity levels across all shipments, as well as being able to hold all the data to report on later.
This will allow your supply chain to remain integrous with all regulatory authorities and will build a better supplier relationship with your clients and customers. If there are any issues, your data and recordings can be investigated into the source of the issue.
9) Leveraging Artificial Intelligence
Artificial Intelligence can be integrated into your cold chain technology and help better manage operations. It can help your supply chain managers to identify potential risks and trends, and create pathways in which to reduce them. Supply chain leaders are investing in this data to lead the way into more streamlined processes.Business owners and executive leadership should evaluate the cost and investment into having an AI-led supply chain, and restructure their processes accordingly with a trusted provider.
These are the 9 most recommended cold chain practices that every logistics company should be implementing. For more content like this, feel free to check out our blog here, or take free online courses to learn more today.