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Challenges Presented By Cold Chain Logistics




Cold chain business have a mountain of external challenges to face in and volatile industry that is constantly changing. This has been ignited further by Covid.


Before Covid there was an increased consumer need for healthy foods and pharmaceutical products. Such products are sensitive to temperatures and have short life spans if not transported correctly. The globally growing middle classes especially seen in China have high demands for products such as high end food products such as wine, salmon and healthcare products such as supplements and many more. Global supply chains were pressed for high standards requiring speed, quality while being regulation compliant.


Cold chain logistics is a challenge at the best of times and is not a business where stakeholders can expect a quick buck or over night success. It takes serious investment in terms of time and money. High tech facilities and storage space is required, expensive equipment which consumes high energy levels. Knowledge for different laws and legislations that are constantly changing in multiple countries across the world is required. For example it is not uncommon for a product running through a supply chain to require five different types of temperatures in order to comply with different cold chain laws in different parts of the world. In addition, winning new businesses and attracting new customers takes a long time. Customers are cautious and have to be when out sourcing their cold chain logistics needs - they have customer order fulfilment and contractual obligations to meet.Therefore, return on investments and sales cycles are far away. Bigger picture and long term thinking is required. High demands set by the consumers and principles results in a complex supply chain tight rope with low margin for error..


Cold chain logistics is a fascinating and interesting segment of the supply chain world and one of course that is highly complex and rewarding. Companies that have plans to enter this field must do so with the right expectations and patience. Those already leading the way must be masters of change and innovation and have a passion for problem solving. All the above require the right talent - the experts who can spearhead the function..


If you are interested to learn more about the cold chain logistics talent pool across the globe reach out to Robert at RJM - rjmaguire@rjm-associates.com

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