Cold Chain Logistics for Dummies.

Today, almost every corner of the world is accessible through logistics. The intricacy of the global supply chain combined with the power of technology has enabled businesses to reach any corner of the world. Hands down.

But, have you ever wondered how something as temperature sensitive as your favorite ice cream makes its journey from Europe to India??

Or how do temperature-sensitive vaccines & pharmaceuticals move across the globe? This we have closely witnessed during Covid.?

Both wouldn’t reach the consumers if not for the miracles of cold chain logistics.?

What is cold chain logistics??

As the name suggests, it revolves around the transportation of temperature-sensitive products along a pathway of Point A to Point B through refrigerated packaging solutions and logistical planning; to protect the integrity of these temperature-sensitive goods.

Why is cold chain logistics important??

To explain the importance of cold chain logistics, what better example than vaccines - that proved life-saving during Covid. Covieshield was in fact made available to the masses with the help of efficient cold chain logistics powered by innovative technology solutions.

A great deal is at stake when temperature-sensitive goods are exposed to environmental changes. The stakes are high in terms of quality, flavor, consistency, efficacy, and safety.??

With these cold chain solutions, manufacturers and suppliers have more control over their products at every stage of the process.

But the cold chain process does not simply begin with transportation.?

It impacts every step of the supply chain; from supply procurement to transportation, storage, and last mile to the end customers.?

A slight rise or fall of temperature during any phase can spell disaster for the goods.

What does a cold chain actually look like, every step of the way?

Since, a series of tasks must be performed to prepare, store, transport, and monitor temperature-sensitive products.?

The main elements of a cold chain involve:

• Cooling systems - bringing commodities such as food to the appropriate temperature for processing, storage, and transportation.
• Cold storage - providing facilities for the storage of goods over a period of time, either waiting to be shipped to a distant market, at an intermediary location for processing and distribution or close to the market for distribution.
• Cold transport - Having conveyances available to move goods while maintaining stable temperature and humidity conditions as well as protecting their integrity.
• Cold processing and distribution - Providing facilities for the transformation and processing of goods as well as ensuring sanitary conditions. Consolidating and deconsolidation loads (crates, boxes, pallets) for distribution.

Depending on the shipping methods & systems adopted, the cold chain can be divided into two categories:??

1. Passive cold chain

2. Active cold chain?

The choice between these two depends on the type of the product and the destination it has to be shipped to.?

What is a passive cold chain??

• Passive thermal systems commonly use phase change materials (PCM) such as water/ice or dry ice to protect the goods. These shipping systems are the most basic and cost-effective.

This chain may involve the following products:

• Deep freeze products(- 28°C? to - 30°C): Seafood, Frozen foods, etc.?
• Frozen products(- 16°C to - 20°C): Meats etc.?
• Cold storage products(2°C to 8°C): Fruits, vegetables, vaccines.?
• Controlled room temp. (CRT) products (15°C to 25°C): Regular pharmaceuticals, fresh produce, processed foods.?

The most used temperature for products going out of India has controlled room temperature(15°C to 25°C).?

This is what a common passive system would look like for a CRT shipment:?

Step 1: Usually, these products come in cooler trucks to the airport.?

Step 2: it’s offloaded into a leased cold storage facility or a CFC-controlled warehouse. (The ambient temperature here is always between 15 to 25°C)

Step 3: Once inside it has a designated area of storage, based on whether it’s a CRT shipment, a cold shipment, or a frozen shipment.?

Step 4: After a security screening when the CRT shipment is moved into the aircraft, no coolant is used because the ambient temperature inside the aircraft is always maintained at 18°C.??

(If the shipment is moving through warmer regions then thermal blankets are put on to maintain the temperature, but are not required for CRT shipments)

Step 5: Once offloaded at the destination, the shipment is again moved to the designated storage facility for the consignee to pick up the shipment.?

This process remains the same with an adaption of different storage & shipping methods based on the products and transportation time.?

For example, In the case of 2°C to 8°C degrees shipment to maintain the temperature coolant is required. Coolants like - Dry ice or gel packs. The type of gel packs differs depending on the transportation such as a 24-hour gel pack ranging to 72-hour gel packs and some even more than 100 hours.?

Other than maintaining temperature, there is a new concept of softboxes. They are designed to maintain the temperature within a long transit time i.e 3d to 6d. Some of these softboxes also use dry ice.?

This entire process described is considered a passive form of cold chain transportation.?

What is an active cold chain?

Active thermal systems do not use any phase change materials (PCM) such as water/ice or dry ice. These systems use mechanical or electric systems powered by an energy source, combined with thermostatic control to maintain proper product temperatures.?

To make this seemingly complex matter seamless, manufacturers and shippers rely on third-party logistics companies like Envirotainer, vacutainer, and many others are providing innovative active cold chain solutions.??

These active cold chain containers are usually made available on lease, they are either procured by airlines or shippers.?

The process for active cold chain management looks sort of similar to the passive.?

The first step includes the transport of shipment in cooler trucks

The second, offloading of the shipment into a temperature-controlled warehouse.?

The third, Security screening of the shipment.?

After this, the shipment is then loaded into these active cold chain containers where the temperature is monitored and controlled as per the requirements of the product or the shipper.?

These containers are then loaded into the aircraft. In this case, the transit destination for these containers is usually pre-agreed with the airlines by the shipper, based on which these companies charge for the containers.?

Upon arrival at the destination, these containers are moved to a storage facility for monitoring until the consignee picks up the containers or the shipment from the container in temperature-controlled trucks.?

How are third-party companies transforming active cold chain logistics?

Over the years with the advent of technology companies like? Envirotainer, Skycell, va-Q-tec and other market leaders have emerged to invent safe, innovative, and sustainable solutions.? These discoveries have led to a dramatic transformation in the industry, especially in the pharmaceutical sector.?

Not only that, these industry leaders with their data-driven insights and research bandwidth have paved the way through challenges that plague the cold chain industry.?

Here are some ways in which innovative solutions transform the industry

1. The quality of the product remains uncompromised for a long period of time.?
2. Airlines build brand loyalty with specialized services
3. Extremely low risk for sensitive goods
4. Higher freight rates and predictable revenues
5. When leased they are a cost-effective solution for shippers.?

The key to cold chain logistics is integrating and controlling the supply chain's various elements. This requires data and lots of it. With an obsession for data-driven tech, this intricate choreography of the active cold chain is now made possible.?

Are there any risks involved?

Risks can be found in the weather, infrastructure, natural disasters, and other areas that threaten to interrupt or compromise the quality of a shipment. Until those threats are thoroughly understood and evaluated, they can cause surprises that might/might not result in shipment delays, damage, or losses.

To resolve these risks, companies have developed, manufactured, and offered leasing of FAA/EASA certified, clean and functional containers.

For instance, let’s say a product must remain in a specific temperature range of 25° to 40°F at all times and the shipping lane stretches from Kuala Lumpur, Malaysia to Amman, Jordan.?

Here, data-driven insights are used to determine the ambient temperature.??

With this insight, a company could determine if paying for refrigeration in this instance is worth the gamble of the temperature rising above 40°F along that route.

To sum up: Yes, we need cold chain solutions. Period.?

Risks will continue to plague the supply chain; however, an accurate supply chain risk management assessment, effective mitigation protocols, and the right technology will give the best opportunity to not only ride the storm but come out ahead.

As the need for cold chain logistics grows, companies must consider a variety of aspects in order to save money without compromising quality or time to market.?

Whether it's choosing the best method of transportation or shipping route, deciding whether to use refrigeration or not, or adjusting shipment dates to account for known hazards, enterprises need to be more equipped than ever to make these educated decisions.