05 Challenges in Cold Chain Logistics

The Cold Chain Industry is complex in nature with the highest concentration on safety and customer
satisfaction. The commencement of the process till the closure is critical for the company to thrive.

However, every industry faces challenges in various departments and of varying nature.
Highlighting a few challenging points- that are encountered by Logistic firms.

1) Last mile quality is compromised – The last mile is also known as the final leg of the supply chain process and that poses unique challenges in maintaining the integrity of the cold chain.

While many companies prioritize the quality of warehouses, primary transport, and secondary
transportation, the specific intricacies of the last mile present distinct challenges in the cold chain
industry.

The last mile quality is compromised due to the following factors:

Limited Visibility Control that often involves multiple touchpoints, 3rd party carriers, etc

Infrastructure Constraints – especially in urban areas lack the ability to handle the cold chain supply
logistics, which then leads to a lack of temperature-controlled storage facilities, specialized vehicles, and
proper handling procedures. The result being temperature excursions, affecting the quality and safety of
perishable goods.

Variable Delivery Timeframes – the unpredictability of delivery timelines during the last mile is a significant
challenge. Traffic congestion, and route deviations can cause expose the temperature-sensitive products to extended period outside their optimal conditions thereby risking spoilage or compromised quality.

Insufficient Training and Handling Practices – handling of cold chain products requires specialized
training and adherence to strict protocols. Lack of awareness can result an improper storage or handling practices that compromises the quality of goods.

Packaging Limitations – is also the probable cause of temperature excursion during last mile delivery,
leading to degradation of the product.

Regulatory Compliances: Complex rules in different jurisdictions and stringent laws during the last mile,
if not followed can be detrimental to the logistics firms in terms of

2) The Availability of Reefer Trucks: The availability of reefer trucks at an affordable price is a complex challenge influenced by factors such as asset utilization, demand-supply dynamics, and seasonal variations. Yet another challenge imposed is the non-availability of return load in the cold chain supply sector.

3) Lack of Volume leads to partial load:
Here the major constraint is of economic considerations where small businesses incur the cost
of hiring a full truck for a relatively small volume of goods and hence opt for a partial load as a
cost-effective solution.

This pertains to companies dealing with specialized or niche products. The disadvantage of the same would be that many customers not being aware of what the transporters would be loading to fulfill the truck load capacity.

Eg: For the pharmaceutical Industry, there is a huge risk if a transporter loads meat or vegetable
along with medicines or temperature-sensitive products.

4) Breakdown of AC unit on the way: The transporter faces the challenge of quick solutions to prevent
temperature excursion. Some situations are unpredictable and need quick thinking and even faster
solutions when AC unit’s break down.

There are various ways of finding the solution of breakdown by first identifying or detecting the early
signs, investing in fleet management solutions, having a backup of trucks if it’s a huge consignment, etc

5) Challenge of Temperature excursion while loading /Unloading of Truck: The duration taken to
load and unload is approximately 2 to 3 hours. It’s a matter of concern and can be avoided if the bay at which the loading and unloading takes place are temperature controlled without incurring any extra cost.

These are a few challenges in the Cold Chain Industry and with the right solutions in place a seamless
the logistical process is possible.