{"id":30367,"date":"2023-01-12T14:02:12","date_gmt":"2023-01-12T04:02:12","guid":{"rendered":"https:\/\/www.machines4u.com.au\/mag\/?p=30367"},"modified":"2023-01-30T15:26:16","modified_gmt":"2023-01-30T05:26:16","slug":"ways-to-limit-costs-in-cold-supply-chain-logistics","status":"publish","type":"post","link":"https:\/\/www.machines4u.com.au\/mag\/ways-to-limit-costs-in-cold-supply-chain-logistics\/","title":{"rendered":"4 Ways to Limit Costs in Cold Supply Chain Logistics"},"content":{"rendered":"\n<p style=\"font-size: 8pt;\">Presented by <a href=\"https:\/\/www.machines4u.com.au\/directory\/Vertical-Lift-Machines\/2078\/\">Vertical Lift Machines<\/a><\/p>\n<p><span data-preserver-spaces=\"true\">When we talk about\u00a0<\/span><strong><span data-preserver-spaces=\"true\">cold supply chain logistics<\/span><\/strong><span data-preserver-spaces=\"true\">, we mean a<\/span><strong><span data-preserver-spaces=\"true\">\u00a0temperature-controlled supply chain\u00a0<\/span><\/strong><span data-preserver-spaces=\"true\">that includes the following systems:<\/span><\/p>\n<ul>\n<li><span data-preserver-spaces=\"true\">Production<\/span><\/li>\n<li><span data-preserver-spaces=\"true\">Storage<\/span><\/li>\n<li><span data-preserver-spaces=\"true\">Distribution<\/span><\/li>\n<\/ul>\n<p><span data-preserver-spaces=\"true\">Each of these systems must be supported by equipment\u00a0<\/span><strong><span data-preserver-spaces=\"true\">suited to keep a constant temperature within the required range<\/span><\/strong><span data-preserver-spaces=\"true\">\u00a0so the materials or products processed and distributed do not undergo contamination or deterioration.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">The cold chain is, therefore, one of the\u00a0<\/span><strong><span data-preserver-spaces=\"true\">most complex<\/span><\/strong><span data-preserver-spaces=\"true\">\u00a0\u2013 and expensive \u2013\u00a0<\/span><strong><span data-preserver-spaces=\"true\">logistics management processes<\/span><\/strong><span data-preserver-spaces=\"true\">\u00a0and is used in sectors dealing with products that are sensitive to heat, such as the food, pharmaceuticals, electronics, floriculture, and leather sectors.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Due to the nature of the products, the\u00a0<\/span><strong><span data-preserver-spaces=\"true\">specific criticalities<\/span><\/strong><span data-preserver-spaces=\"true\">\u00a0in managing cold chain logistics\u00a0<\/span><strong><span data-preserver-spaces=\"true\">make it different\u00a0<\/span><\/strong><span data-preserver-spaces=\"true\">from the traditional supply chain.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">One example is vaccines, which often require a very narrow temperature range throughout the supply chain, from production to the final user. Failure to maintain the temperature within these narrow ranges, even for a short time along the chain, can affect safety and efficiency, making the vaccines unusable.<\/span><\/p>\n<p>\u00a0<\/p>\n<h2><span data-preserver-spaces=\"true\">High Costs for Temperature Control<\/span><\/h2>\n<p><span data-preserver-spaces=\"true\">Some sectors in which cold supply chain logistics are used directly impact<\/span><strong><span data-preserver-spaces=\"true\">\u00a0public health\u00a0<\/span><\/strong><span data-preserver-spaces=\"true\">(for example, the agri-food and pharmaceutical sectors). For this reason, temperature control requirements are stringent and regulated for all phases of the cold chain.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">The reference framework in Europe is\u00a0<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/eur-lex.europa.eu\/legal-content\/IT\/TXT\/PDF\/?uri=CELEX:32005R0037&amp;from=ET#:~:text=1.,si%20trovano%20i%20prodotti%20surgelati.\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">EC Regulation 37\/2005<\/span><\/a><span data-preserver-spaces=\"true\">, which requires\u00a0<\/span><strong><span data-preserver-spaces=\"true\">temperatures to be measured and recorded at regular intervals<\/span><\/strong><span data-preserver-spaces=\"true\">\u00a0on means of transport and storage sites. This means that both the method of transportation and the warehouses must have suitable instruments and equipment to guarantee the required temperature and measure it over time.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Examples of the specific equipment and significant investments needed for cold logistics are\u00a0<\/span><strong><span data-preserver-spaces=\"true\">cold rooms, building insulation, temperature control sensors, and reefer transport.<\/span><\/strong><span data-preserver-spaces=\"true\">\u00a0These costs can be five times higher than those required for transporting and storing dry products, and the energy costs related to refrigeration systems are also a consideration.<\/span><\/p>\n<p>\u00a0<\/p>\n<h2><span data-preserver-spaces=\"true\">Risk of Contamination and Deterioration<\/span><\/h2>\n<p><strong><span data-preserver-spaces=\"true\">The contamination or deterioration of products that require a controlled temperature can pose enormous economic implications for a company<\/span><\/strong><span data-preserver-spaces=\"true\">. For example, the food sector, where the cold chain is increasingly adopted due to the massive presence of large-scale retailing and e-commerce. Food items are highly perishable, and fungi, bacteria, and microbial growth can quickly develop if they are not properly managed and handled. Logistics must also comply with the Hazard Analysis and Critical Control Points (<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.salute.gov.it\/portale\/temi\/p2_6.jsp?area=sicurezzaAlimentare&amp;id=1225&amp;menu=igiene\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">HACCP<\/span><\/a><span data-preserver-spaces=\"true\">) rules.<\/span><\/p>\n<p><strong><span data-preserver-spaces=\"true\">The costs related to the deterioration of materials are both direct and indirect\u00a0<\/span><\/strong><span data-preserver-spaces=\"true\">and can be generated throughout the supply chain logistics. These costs are higher in the storage phase, where the temperature is reduced.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">When products are contaminated or perish, the consequences are:<\/span><\/p>\n<ul>\n<li><span data-preserver-spaces=\"true\">Waste management costs<\/span><\/li>\n<li><span data-preserver-spaces=\"true\">Higher quality control costs<\/span><\/li>\n<li><span data-preserver-spaces=\"true\">Replenishment costs<\/span><\/li>\n<\/ul>\n<p><strong><span data-preserver-spaces=\"true\">Indirect costs,\u00a0<\/span><\/strong><span data-preserver-spaces=\"true\">instead, are related to the following:<\/span><\/p>\n<ul>\n<li><span data-preserver-spaces=\"true\">Loss of reputation and trust<\/span><\/li>\n<li><span data-preserver-spaces=\"true\">Loss of market share<\/span><\/li>\n<li><span data-preserver-spaces=\"true\">Possible disputes due to claims for damages<\/span><\/li>\n<\/ul>\n<p><span data-preserver-spaces=\"true\">To reduce the risk of contamination and degradation of products \u2013 and thus avoid the associated costs mentioned above \u2013 it is critical to implement all\u00a0<\/span><strong><span data-preserver-spaces=\"true\">temperature control measures and use suitable technological solutions<\/span><\/strong><span data-preserver-spaces=\"true\">\u00a0to maintain the cold chain.<\/span><\/p>\n<p>\u00a0<\/p>\n<h2><span data-preserver-spaces=\"true\">Picking Times<\/span><\/h2>\n<p><span data-preserver-spaces=\"true\">Strictly related to the safety risks illustrated above,\u00a0<\/span><strong><span data-preserver-spaces=\"true\">picking times in cold logistics must be reduced to a minimum to ensure the products\u2019 integrity.<\/span><\/strong><span data-preserver-spaces=\"true\">\u00a0Picking is crucial, as the products or goods are left out of the temperature-controlled environment. This lapse of time must be minimised to ensure safety and integrity.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">When designing a warehouse management system for the storage of perishable products, it is essential to implement picking strategies and use automation tools to keep the products outside the refrigerated environment for the shortest possible time.<\/span><\/p>\n<p>\u00a0<\/p>\n<h2><span data-preserver-spaces=\"true\">Solutions to Limit the Costs of the Cold Chain Logistics<\/span><\/h2>\n<p><span data-preserver-spaces=\"true\">Suppose the costs related to cold logistics and improper management are very high. In that case, it is also true that it is possible to<\/span><strong><span data-preserver-spaces=\"true\"> adopt processes and technological solutions suited to limit them significantly, <\/span><\/strong><span data-preserver-spaces=\"true\">as well as all related risks, while simultaneously optimising the organisation.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">These solutions can be used in the following phases of the supply chain:<\/span><\/p>\n<ul>\n<li><span data-preserver-spaces=\"true\">Production<\/span><\/li>\n<li><span data-preserver-spaces=\"true\">Storage<\/span><\/li>\n<li><span data-preserver-spaces=\"true\">Loading of goods<\/span><\/li>\n<li><span data-preserver-spaces=\"true\">Transport<\/span><\/li>\n<li><span data-preserver-spaces=\"true\">Unloading at distribution hubs or Points of Sale<\/span><\/li>\n<\/ul>\n<p><span data-preserver-spaces=\"true\">The last phase \u2014 picking, storage, and transport to the final consumer \u2014 remains outside the company\u2019s control unless it is e-commerce.<\/span><\/p>\n<p>\u00a0<\/p>\n<h3><span data-preserver-spaces=\"true\">1. Automated Picking<\/span><\/h3>\n<p><span data-preserver-spaces=\"true\">In addition to being a critical phase for safety, picking is also a process in which\u00a0<\/span><strong><span data-preserver-spaces=\"true\">operators cannot always be involved.<\/span><\/strong><span data-preserver-spaces=\"true\">\u00a0This is the case, for example, of frozen product storage, with temperatures as low as -30 degrees Celsius.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Modern cold logistics centers\u00a0<\/span><strong><span data-preserver-spaces=\"true\">use anthropomorphic robots to automate picking to prevent thermal shocks and degradation.\u00a0<\/span><\/strong><span data-preserver-spaces=\"true\">The goods-to-person method is therefore adopted, also taking advantage of the more recent\u00a0<\/span><strong><span data-preserver-spaces=\"true\">voice-picking<\/span><\/strong><span data-preserver-spaces=\"true\">\u00a0technology, which allows operators to communicate with the supply chain equipment and systems using a headset.<\/span><\/p>\n<p><strong><span data-preserver-spaces=\"true\">Faster picking<\/span><\/strong><span data-preserver-spaces=\"true\">\u00a0and the ability of anthropomorphic robots to automatically detect product conditions translate into significant economic savings.<\/span><\/p>\n<p style=\"text-align: center;\"><img fetchpriority=\"high\" decoding=\"async\" class=\"size-full wp-image-9352 aligncenter\" src=\"https:\/\/vertistore.com.au\/wp-content\/uploads\/2022\/10\/MIR-MODULA-05_opt-1024x576.jpg.webp\" sizes=\"(min-width: 0px) and (max-width: 480px) 480px, (min-width: 481px) and (max-width: 980px) 980px, (min-width: 981px) 1024px, 100vw\" srcset=\"https:\/\/vertistore.com.au\/wp-content\/uploads\/2022\/10\/MIR-MODULA-05_opt-1024x576.jpg.webp 1024w, https:\/\/vertistore.com.au\/wp-content\/uploads\/2022\/10\/MIR-MODULA-05_opt-1024x576.jpg-980x551.webp 980w, https:\/\/vertistore.com.au\/wp-content\/uploads\/2022\/10\/MIR-MODULA-05_opt-1024x576.jpg-480x270.webp 480w\" alt=\"\" width=\"1024\" height=\"576\" \/><span style=\"color: #808080;\"><em>Modern cold logistics centres use anthropomorphic robots to automate picking. Source: Supplied.<\/em><\/span><\/p>\n<p>\u00a0<\/p>\n<h3 id=\"2__Automated_vertical_temperature_controlled_storage_systems\" class=\"has-headingfive-font-size\">2. Automated Vertical Temperature-Controlled Storage Systems<\/h3>\n<p><span data-preserver-spaces=\"true\">Cooling a warehouse is expensive, even in terms of energy. For this reason, it is good practice to\u00a0<\/span><strong><span data-preserver-spaces=\"true\">take advantage of the available surface area<\/span><\/strong><span data-preserver-spaces=\"true\">\u00a0as much as possible to reduce energy costs.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">The solution to this problem is\u00a0<\/span><strong><span data-preserver-spaces=\"true\">vertical storage systems<\/span><\/strong><span data-preserver-spaces=\"true\">,<\/span><strong><span data-preserver-spaces=\"true\">\u00a0which can save up to 90% of the available warehouse space.<\/span><\/strong><span data-preserver-spaces=\"true\">\u00a0<\/span><strong><span data-preserver-spaces=\"true\">Modula Lift Climate Control automated storage systems\u00a0<\/span><\/strong><span data-preserver-spaces=\"true\">also ensure temperature control in a\u00a0<\/span><strong><span data-preserver-spaces=\"true\">range of +2 to +25 degrees Celsius<\/span><\/strong><span data-preserver-spaces=\"true\">, combining the benefits of a vertical storage system with engineering that guarantees the temperatures and humidity levels necessary for the safe storage of products.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">An automatic storage system also\u00a0<\/span><strong><span data-preserver-spaces=\"true\">reduces the costs associated with temperature dispersion<\/span><\/strong><span data-preserver-spaces=\"true\">, thanks to the automation of picking and placing operations.<\/span><\/p>\n<p style=\"text-align: center;\"><img decoding=\"async\" class=\"size-full wp-image-9351 aligncenter\" src=\"https:\/\/vertistore.com.au\/wp-content\/uploads\/2022\/10\/MicrosoftTeams-image-83_crop.jpg.webp\" sizes=\"(min-width: 0px) and (max-width: 480px) 480px, (min-width: 481px) 700px, 100vw\" srcset=\"https:\/\/vertistore.com.au\/wp-content\/uploads\/2022\/10\/MicrosoftTeams-image-83_crop.jpg.webp 700w, https:\/\/vertistore.com.au\/wp-content\/uploads\/2022\/10\/MicrosoftTeams-image-83_crop.jpg-480x320.webp 480w\" alt=\"\" width=\"700\" height=\"466\" \/><span style=\"color: #808080;\"><em>Modula Lift Climate Control automated storage systems. Source: Supplied.<\/em><\/span><\/p>\n<p>\u00a0<\/p>\n<h3 id=\"3__Automatic_handling_of_solutions_in_deep_freezer_cells\" class=\"has-headingfive-font-size\">3. Automatic Handling of Solutions in Deep Freezer Cells<\/h3>\n<p><span data-preserver-spaces=\"true\">In temperature-controlled storage systems, where storage temperatures are low, it is common to use\u00a0<\/span><strong><span data-preserver-spaces=\"true\">automatic handling systems<\/span><\/strong><span data-preserver-spaces=\"true\">\u00a0to reduce the time spent by operators in these areas.<\/span><\/p>\n<p><strong><span data-preserver-spaces=\"true\">Examples include pallet stacker cranes and pallet shuttles<\/span><\/strong><span data-preserver-spaces=\"true\">, which are automatically and remotely controlled. The result is improved operational efficiency and speed.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">AMR vehicles, robots, and all handling systems operating in temperature-controlled warehouses or deep freezers have different characteristics. The particular temperature and humidity conditions can affect the operation and combine so that it can become dangerous.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">The lower costs, in this case, are always due to reduced dispersion of energy, decreased exposure of stored products to possible contaminants, and protection of the health of operators.<\/span><\/p>\n<p>\u00a0<\/p>\n<h3 id=\"4__Cold_supply_chain_monitoring_with_sensors_and_IoT_solutions\" class=\"has-headingfive-font-size\">4. Cold Supply Chain Monitoring with Sensors and IoT Solutions<\/h3>\n<p><span data-preserver-spaces=\"true\">All the solutions mentioned above are based on the most modern\u00a0<\/span><strong><span data-preserver-spaces=\"true\">sensor systems for determining temperature<\/span><\/strong><span data-preserver-spaces=\"true\">, position, and size, and\u00a0<\/span><strong><span data-preserver-spaces=\"true\">IoT solutions for analysing and assessing the collected data<\/span><\/strong><span data-preserver-spaces=\"true\">. Therefore, the Internet of Things and the sensors help to ensure a constant temperature along the cold chain and to prevent energy waste.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Thus, with the demand for this kind of service\u00a0<\/span><strong><span data-preserver-spaces=\"true\">currently growing on the market<\/span><\/strong><span data-preserver-spaces=\"true\">, it is possible to\u00a0<\/span><strong><span data-preserver-spaces=\"true\">take full advantage of these technological opportunities<\/span><\/strong><span data-preserver-spaces=\"true\">\u00a0to maintain the cold chain and improve its management. Think of e-grocery or the pharmaceutical sector, where the demand for products that need controlled temperatures increases yearly.<\/span><\/p>\n<p><strong><span data-preserver-spaces=\"true\">The companies operating in these sectors must therefore reorganise their warehouses<\/span><\/strong><span data-preserver-spaces=\"true\">, both to meet the new requirements for the proper management of goods and to reduce costs while at the same time improving the efficiency of their logistics system.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Presented by Vertical Lift Machines When we talk about\u00a0cold supply chain logistics, we mean a\u00a0temperature-controlled supply chain\u00a0that includes the following systems: Production Storage Distribution Each of these systems must be supported by equipment\u00a0suited to keep a constant temperature within the required range\u00a0so the materials or products processed and distributed do not undergo contamination or deterioration. [&hellip;]<\/p>\n","protected":false},"author":40,"featured_media":30369,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7837,35,18990],"tags":[23875,23861,23876,21400,3057,23856],"yst_prominent_words":[],"class_list":["post-30367","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-access","category-featured","category-material-handling","tag-cold-supply-chain","tag-freezer","tag-frozen-goods","tag-logistics","tag-robots","tag-storage"],"_links":{"self":[{"href":"https:\/\/www.machines4u.com.au\/mag\/wp-json\/wp\/v2\/posts\/30367","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.machines4u.com.au\/mag\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.machines4u.com.au\/mag\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.machines4u.com.au\/mag\/wp-json\/wp\/v2\/users\/40"}],"replies":[{"embeddable":true,"href":"https:\/\/www.machines4u.com.au\/mag\/wp-json\/wp\/v2\/comments?post=30367"}],"version-history":[{"count":9,"href":"https:\/\/www.machines4u.com.au\/mag\/wp-json\/wp\/v2\/posts\/30367\/revisions"}],"predecessor-version":[{"id":30418,"href":"https:\/\/www.machines4u.com.au\/mag\/wp-json\/wp\/v2\/posts\/30367\/revisions\/30418"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.machines4u.com.au\/mag\/wp-json\/wp\/v2\/media\/30369"}],"wp:attachment":[{"href":"https:\/\/www.machines4u.com.au\/mag\/wp-json\/wp\/v2\/media?parent=30367"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.machines4u.com.au\/mag\/wp-json\/wp\/v2\/categories?post=30367"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.machines4u.com.au\/mag\/wp-json\/wp\/v2\/tags?post=30367"},{"taxonomy":"yst_prominent_words","embeddable":true,"href":"https:\/\/www.machines4u.com.au\/mag\/wp-json\/wp\/v2\/yst_prominent_words?post=30367"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}