As we inch towards reopenings, the demand to keep perishable and short-shelf-life products in well-controlled environments, according to storage, logistical needs and purchasing habits. As a result, the need for cold storage warehouses is increasing.
Cold storage warehouse management is difficult due to maintaining a consistent temperature for storage at various locations while keeping the equipment and employees comfortable and ready to perform at their best. Also, the ideal storage conditions and material handling best practices vary for each item.
The bulk of items held in cold storage facilities are refrigerated and frozen foods. Other sectors that rely on cold storage include petrochemicals, pharmaceuticals, and high-tech electronics. Since the need for cold storage is increasing at an alarming rate, strategic solutions that assist in keeping the products frozen without hurting operational expenses are also witnessing a surge in demand. Let’s see the distribution of cold storage warehousing demand forecast:
Thus, it will give a boost to companies focused on logistics software development in Canada and other surrounding countries while creating an ecosystem of supply chain solutions that would help optimize various processes involved.
3 Problems Faced In Cold Storage Warehouse Management and Their Solutions
As the need for cold storage facilities grows, so do the issues encountered in cold storage warehouse management. Some of the most frequently faced issues and their remedies are listed below:
The Impact On The Equipment And The People Involved
After economies reopen, cold warehousing firms will meet an inflated demand to store items while they might struggle to get an adequate headcount to meet such surges. Also, working with new talent can cause managerial shortcomings. On the other hand, working with new equipment will also require you to revamp your entire planning and operations.
The first thing you can do is to get cold storage warehouse management software that will help you manage the people and equipment through data-driven automation.
Pricing-Model Related Issues
The common trouble that most cold warehousing facilities will face will be deciding their pricing model and how they want to book the available real estate. You can take help from demand forecasting reports and word of mouth, but it is necessary that you strike the right balance between early allocation at lower prices and last-minute bookings at a higher premium.
To address this, you should go ahead with a strategic approach that involves analyzing local and international businesses that might require cold storage solutions in your region. Next would be understanding their operating models and learning where you fit into them. Now you can come up with a proper plan to locate your real estate and equipment at optimal prices.
The Impact Of Pandemic-Based Disruptions
With the pandemic, there came adverse situations, and there came disruptions. The increasing need for transparency across global supply chains, socio-political changes, and push to tech trends like API economy and headless ecommerce will make a lasting impact on how cold storages function.
The only way to solve this problem is to upgrade your equipment and software tools to meet the evolving conditions. They should be able to integrate with your external stakeholders and provide a competitive ecosystem for technologies like AI, Big Data, and decentralized computing.
4 Best Practices That Will Help Optimize Cold Storage Warehouse Management In 2021
Here are a few tips to help you manage your cold storage more effectively despite the uncertainties:
Make A Backup Plan In Case Something Goes Wrong
Even with the most advanced monitoring equipment, an unforeseen delay or reroute might compromise the safety of your package. Shippers and their transportation partners must collaborate to create contingency plans that clearly outline a strategy in the event of a delay.
Protect Yourself From Flaws
To effectively handle cold chain shipments, all parties involved must work together. Everyone engaged has to be well-versed in cold chain handling and transportation best practices. For instance, food items must be transported as quickly as possible to provide consumers with the most useful, nutritious, and healthy products with the longest shelf life. On the other hand, cosmetics-related items need to be handled with more care as compared to agility. Having clarity on a basic level helps make better SOPs and protects you from unwanted flaws.
Incorporate A Data-Driven Approach To Decision Making
What causes most failures in this sector is failing to leverage data for operations. As the inventory turnover ratio is lower for such facilities, it becomes tough to comprehend various processes and synchronize them in complete harmony. Take the help of various tools and try to automate as many decisions as possible.
Vegetables, for example, require a temperature of 55°F, meat requires a temperature of 28°F, dairy goods require a temperature of 34°F, and ice cream requires a temperature of –10°F. Your cold storage warehouse management software should be able to prompt your workers to adjust temperature levels preemptively.
Install Advanced Material Handling Systems
Use specially developed robots, seals, cables, energy supply, and lubricants for the severe freezing environment. Installing an AR/RS solution may provide you with a competitive edge since it improves operational accuracy and fights back troubles caused due to attrition.
The global market for cold chain goods is rapidly growing nowadays. As the global demand for perishable goods rises, effective cold storage warehouse management will facilitate stronger relationships and deeper collaboration. Cold storage warehouses are large and have their own set of problems to overcome in addition to the usual warehouse challenges. We hope we were able to provide you with some insight into the areas of cold storage warehouse management that require the greatest attention, and it helps you navigate through the reopenings.