Significance of Cold Chain for Third-Party Logistics Providers

Third-party logistics companies plan to expand their cold chain capabilities and service offerings in the near future.

FREMONT, CA: More discussion about supply chain management issues has been driven by COVID-19. Cold chains became a key supply chain topic as vaccine distribution complexities increased. The cold chain is a supply chain dedicated to planning, storing, loading, and moving temperature-sensitive products to maintain the best possible temperature. Using foods or medicines shipped or stored outside of the specified temperature parameters can negatively affect the safety of consumers, as they will be exposed to unnecessary risks.

There is no doubt that cold chain services play a vital role in their company's growth. There is such a high demand for cold chain services nowadays that finding available and cost-effective services are challenging. More specialized services are in greater demand than ever before. Even though temperature-controlled trailers are not necessary, some shippers opt to use cold chain services to preserve the shelf life of their products. 

Cold Chain Logistics

Managing chilled and frozen goods is a complex problem because multiple nodes and parties are involved. The majority of outsourced goods were frozen. Similarly, last mile transportation saw more outsourcing. The critical challenges for 3PLs are investing in a cold chain infrastructure, maintaining it, and monitoring temperature. Shippers' cold chain requirements require several services from 3PLs. Monitoring temperature and product traceability follow. 3PLs must develop ROI models that justify entering this market if they wish to compete. Third-party logistics providers become much more focused on infrastructure issues because of this. 

Compliance with regulations

Regulatory compliance is one of the concerns for shippers regarding their business. Hence, visibility and traceability are important technological features of cold chain services. Logistics providers can ensure the safety of temperature-controlled products by maintaining visibility and traceability. As a result, shippers can also comply with regulatory requirements, such as the Food Safety Modernization Act and record-keeping regulations imposed by the government. Companies involved in agribusiness commodities production, processing, and distribution will likely face increased regulations in the next few years.

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