The cold chain industry is rapidly evolving. In recent years, the industry has seen a surge in technological advancements and innovation, transforming traditional cold chain operations and driving a revolution in the industry. With the ever-increasing demand
for food, pharmaceuticals, and other temperature-controlled products, the need for a reliable and sustainable cold chain is more evident than ever.
Shift from Cold Chain to Sustainable Cold Chain
One major trend that will revolutionize the cold chain industry is the shift towards greater sustainability, efficiency, and accuracy. A sustainable cold chain helps businesses reduce their environmental impact by reducing waste and emissions. The focus on sustainability will enable the businesses reduce costs by streamlining their operations and eliminating unnecessary steps. From a business perspective, a sustainable cold chain can help companies create a competitive advantage. With a resilient cold chain, businesses can ensure that their products are delivered faster and in better condition than those of their competitors. Additionally, businesses can use their sustainable cold chain to differentiate themselves from other providers and gain a leg up in the market.
“Sustainability is as much a business need as it is for the environment. You might even see that the consumers might reject using your product if the businesses do not follow sustainability practices.”
Dry Ice is a Thing of the Past
The usage of dry ice as part of cold chain will significantly reduce. There will be a lot more awareness in businesses that filling a truck with dry ice and transporting products is not a cold chain. Dry ice has several harmful effects on the environment and on the humans who handle and consume products transported using one. Cold chain businesses will think beyond dry ice and adopt newer technologies that maintain the precision temperature required for the product to retain its quality. The adoption of new technologies, such as Phase Change Material (PCM) will enable the businesses to fulfil more deliveries, reach farther places and yet keep the products fresh.
3PL to 5PL
India has already seen a shift from the simple reefer trucking model to 3PL services where logistics companies are more integrated with the storage and movement of goods – however, the evolving models will need them to be much more agile and integrated to ensure demand fulfillment.
Therefore, cold chain companies need to evolve into full-stack supply chain providers, or 5PL, to cope with the future requirements
of brands. This required them to build the requisite infrastructure, partnerships, and technology to cater to requirements
ranging from primary transport to last-mile home delivery.
Growing Adoption of the Phygital Approach
2023 will bust a big myth that cold chain business means a trucking business or a business that is heavily dependent on physical infrastructure. There is going to be growing pressure on cold chain businesses and brands to build traceability and transparency throughout the supply chain – from origin of the food or medicine to consumption.
The revolutionary change that will happen in 2023 will see growing usage of technologies, such as AI/ML, IoT, Blockchain.
Automation and Robotics: Automation and robotics are becoming increasingly popular in cold chain operations, allowing businesses to improve accuracy and efficiency. From automated temperature monitoring to robotic pick-and-place systems, automation and robotics can help businesses streamline their operations and reduce labour costs.
IoT-Enabled Cold Chain: The Internet of Things (IoT) can be used to monitor and control the temperature of products throughout the entire supply chain. By leveraging IoT, businesses can ensure that their products remain at the optimal temperature and that any deviations are immediately addressed.
Cloud-Based Solutions: Cloud-based solutions allow businesses to monitor their operations in real-time and ensure that their products remain safe and that their operations remain efficient.
Big Data and Analytics: Big data and analytics are essential for businesses to gain insights into their operations and to identify areas of improvement. By leveraging big data and analytics, businesses can gain a better understanding of their operations and gain a competitive edge.
Blockchain for Cold Chain
Blockchain technology is revolutionizing cold chain operations by providing an immutable, secure, and transparent record of data. By leveraging blockchain, businesses can ensure that their products are tracked throughout the entire supply chain, from production to delivery. Additionally, blockchain can be used to automate certain processes, streamline operations, and reduce costs.
Cold Chain cannot be an Afterthought
In 2023, you will notice that more and more brands will think about cold chain as part of the product design and packaging. Cold chain cannot be an afterthought as the temperature control requirements are defined at the design stage and not afterwards. This means that cold chain will have to be custom-built for each type of product. Here is where the cold chain businesses will have to start thinking as solution providers and not mere transportation business. The complexity of the food and medicine products is increasing and it is the time for cold chains to step in and simplify the fulfilment.
Conclusion
The cold chain industry is undergoing a revolution. By embracing the latest trends in cold chain for 2023, businesses can create a resilient and sustainable cold chain that meets the increasing demands of the industry. Additionally, businesses can leverage emerging technologies such as blockchain, IoT, and automation to optimize their cold chain operations and ensure that their products remain safe. These technologies are helping companies to track and trace products, automate processes, and improve customer service. Finally, businesses should ensure that their staff is properly trained and equipped to handle cold chain operations. By leveraging the latest trends and technologies, businesses can remain competitive in the market and create a sustainable cold chain.
Rajat Gupta is the Founder & CEO of TESSOL
