Cold Chain Logistics

What is Logistics ?
Logistics is the management of the flow of goods from origin

to destination to meet customer requirements.
Right Time, Right Place@ Minimum Cost
Transportation
Security Inventory
Logistics
Packaging Warehousing
Information
Management
What is Cold Chain Logistics?
TEMPERATURE
COLD CHAIN
LOGISTICS CONTROL
LOGISTICS
(REFRIGERATION)
Major Sectors : Food and Beverages, Bio-Pharmaceutical
The Cold chain logistics infrastructure

Supply End
Transport Storage Transport
Procurement Customer
• Precooling • Refrigerated • Cold Storage • Refrigerated • Retail, Terminal,

System • Trucks • Warehouses • Trucks Markets, Factory,
• Refrigerated • Refrigerated
• Farms (Rural Ports, Airport
• Railway Wagons • Railway Wagons
• Markets) • Refrigerated • Refrigerated
• Manufacturers Cargo Cargo
• Containers • Containers
Cold Chain Operations
• Shipment preparation: When a temperature-sensitive product is being
moved, it is vital first to assess its characteristics. A key issue concerns the
temperature conditioning and the packaging of the shipment, which should
already be at the desired temperature. Cold chain devices are commonly
designed to keep the temperature constant.
• Modal choice: Distance between the origin and the final destination (which
often includes a set of intermediary locations), the size and weight of the
shipment, the required exterior temperature environment, and any time
restrictions (perishability) of the product all affect the available
transportation options. In this case, the cost/perishability ratio becomes a
factor in the modal choice.
Cold Chain Operations
• Custom procedures. If the freight crosses boundaries, custom procedures can
become very important, since cold chain products tend to be time-sensitive and
more subject to inspection than regular freight (e.g. produce, pharmaceuticals,
and biological samples). A common issue relates to sanitary inspection that may
require fumigation. Customs issues are commonly identified as the most
crucial in establishing reliable international cold chains.
• The “Last Mile”. The last stage is the actual delivery of the shipment to its
destination, which in logistics is often known as the “last mile”. Key
considerations when arranging a final delivery concern not only the destination
but the timing of the delivery, so the critical labor and warehousing space is
available. Also important is the final transfer of the shipment into the cold
storage facilities as there is potential for a breach of integrity and damages to
fragile goods such as produce.
Cold Chain Industry Breakdown:
Global Cold Chain- Pharmaceutical Sector
Cold chain logistics

spending expanded
from $5.1 billion in
2008 to $6.6 billion in
2011.
Global Cold Chain Facts: Bio- Pharmaceutical
Pharmaceutical Biotech Vaccines Blood Clinical Trials

Products
Global Bio-Pharma Cold-chain market
2010 : $5.1 billion 2011 : $6.6 billion
2014 : 7 of the top 10 global pharma products in will require cold-chain
handling Vaccines growing on average 8% per year for the next five years.
Global Cold Chain Facts: Food Sector
Fruits & Meat Fish & Dairy Beverages

Vegetables Seafood Products
In European and American developed countries, the rate of

refrigerated transport is up to 80-90%, pre-cooling preservation is up
to 80-100%, and the loss rate is below 5%.
25% of the total food production is processed foods. A booming

industry
Cold chain in Food Sector
Farm (Point of
Pre- Cooling Cold Storage
Harvest)
Storage/
Retail (Point Processing/
Distribution
of sale) Packing
Centre
Impact of Cold Chain over International
Trade and Logistics
From a geographical perspective, the cold chain has the following impacts:
• Global: Specialization of agricultural functions permitting the transport of

temperature-sensitive food products to distant markets. Enables the distribution of
vaccines and other pharmaceutical or biological products from single large facilities
to any market around the world.
• Regional: It can support the specialization of production and economies of scale in
distribution. This could involve large cold storage facilities servicing regional grocery
markets or specialized laboratories exchanging temperature sensitive components.
• Local: Timely distribution to the final consumer of perishables, namely grocery
stores, and restaurants.
Impact of Cold Chain (food sector) over
International Trade and Logistics
• Biological risks: About 93% of the vegetable varieties have gone extinct because
their cultivation was abandoned for species that were judged more suitable for
human consumption. However, this induced productivity comes with higher risks
related to disease, pests, and pathogens. Food systems should maintain a level of
biological diversity to limit the risks of a large scale shortage if a disease was to
impact a plant or an animal species.
• Natural risks. Agriculture accounts for about 70% of all freshwater anthropogenic
use and is therefore highly vulnerable to changes in water cycles. The conventional
risks of floods, storms, and droughts are likely to be exacerbated by climate change,
which may involve a shift in the forms of cultivation and agricultural ranges. Food
systems should show greater resilience to natural risks through improvements in
plant resistance, irrigation techniques and sustainable use of vast pastures.
Impact of Cold Chain (food sector) over
International Trade and Logistics
• Technological risks. Food systems depend on a wide range of infrastructure
and equipment. Information and communication technologies have also
become more prevalent, namely in terms of weather information and market
prices. Infrastructure failures remain a risk, particularly if they involve the
storage and distribution of food. Food distribution infrastructures, from ports
to distribution centers, are to be considered as strategic assets.
• Political risks. Food systems are vulnerable to a wide range of political risks,
including conflicts, corruption, theft and trade restrictions. All these factors
increase the unreliability of food systems since mechanisms such as stable
prices, safety, and security of distribution and the capability to accurately
predict supply (food output) and demand are severely disrupted. Food
systems require mechanisms able to mitigate political disruptions.
Challenges with Cold Chain Logistics
• Cold chain companies are under increasing pressure to ensure goods are
kept at specific temperatures.
• Additional challenges includes – from increases in the sensitivity, quality
standards, and volume of many of its goods, to continually mounting
regulations.
• Service of the global market, driving out costs, becoming more strategic,
and addressing capacity and resource constraints.
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Cold Chain Logistics

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What is Logistics ?

Logistics is the management of the flow of goods from origin

Major Sectors : Food and Beverages, Bio-Pharmaceutical

The Cold chain logistics infrastructure

• Precooling • Refrigerated • Cold Storage • Refrigerated • Retail, Terminal,

Cold chain logistics

Pharmaceutical Biotech Vaccines Blood Clinical Trials

Fruits & Meat Fish & Dairy Beverages

In European and American developed countries, the rate of

25% of the total food production is processed foods. A booming

• Global: Specialization of agricultural functions permitting the transport of

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