Cold Chain Industry Trends – July 2021
The cold chain market is predicted to grow at a consistent rate over the next several years, bringing up some interesting trends and challenges for those in the field. The year of 2020 was difficult yet eye opening, and has allowed us to understand the patterns and trends to look for in the upcoming years.
With a number of trends emerging as the cold chain returns to a new normal, it’s important to consider the challenges that may be faced while attempting to achieve these goals. Whether it’s a new technology or a global demand for a more efficient supply chain, check back here every month to see what’s new!
- Pharmaceutical Needs
It’s no secret that the need for cold storage in the pharmaceutical industry has drastically increased in recent years. As the number of COVID-19 vaccines being approved is rising, the mass distribution of these vaccines has proven to be complex. According to Yang and Sivadas (2021), challenges within this growing necessity include a lack of proper cold storage units and shortages of trained personnel. This can cause massive amounts of vaccines to spoil or go to waste due to improper storage or not being able to monitor them efficiently. Additionally, Sureddin (2021) notes that pharmaceutical necessities aren’t just for vaccine distribution and storage. As more people in North America return to hospitals and doctors for medical treatment, there is a pressure placed on healthcare companies to appropriately manage these surges. There is a sense of urgency within the pharmaceutical industry due to the major challenges it has faced recently, and a more efficient supply chain is where many of the problems may be solved.
2. Global demand for freshness
As the world population continues to grow, there has been an increase in demand for food safety and freshness. Jemdahl (2021), says that research indicates refrigerated shipping will experience fast growth in the upcoming years. No contact delivery has increased in popularity as the delivery of groceries and fresh produce has become the new normal. This will require a more efficient supply chain and better technology to keep perishable goods at safe temperatures.
3. Digitization
A more efficient supply chain is necessary to mitigate the upcoming challenges in the industry, and one of those improvements include the use of better technology. Having live monitoring, appropriate alerts, and access to real-time temperature of goods can assist in identifying safety issues in shipments. Transvoyant notes that, “A digital supply chain could also suggest changes to shipment routes where predicted temperatures are more favorable than the original route” (2020). When there is a lack of coordination or outdated technology used in the supply chain, billions of dollars may be wasted. As technology advances, it’s expected that proper use of temperature monitoring can assist in saving great amounts of time and expenses.
4. “Greener” Logistics
In recent years, there has been an emphasis on sustainability within the supply chain. This includes a greater accountability of the suppliers performance on health, environment, and safety, adjusting time of deliveries and costs. There is an increased awareness among consumers that transportation is a main contributor to greenhouse gas emissions and lowering ones carbon footprint is a priority. Contributing to the environment using energy management systems while staying cost effective boosts customer loyalty and satisfaction. According to the Harvard Business Review, businesses that focus on sustainability grow nearly six times faster than those who don’t (Jemdahl, 2021).
5. Artificial Intelligence
Creating a more efficient supply chain may be complicated, but Artificial Intelligence and Machine Learning (ML) are already proving to be a worthwhile investment. According to a 2020 article by Tina Jacobs, AI and ML, “drive enterprise-wide visibility into all aspects of the supply chain and with granularity and methodologies that humans simply can’t mimic at scale”. Human error is inevitable within any industry, but the use of proper technology can prevent issues before they happen. With an opportunity for improved scheduling and visibility of the entire supply chain, consumers can be reassured that their products will be delivered in a timely and cost efficient manner.