Temperature-Controlled Freight Solutions

Notably, a failure in shipping a temperature-controlled product does not always result from the failure of the refrigeration system. In some cases, delays during the loading stage, poor handling between transfer points or inadequate coordination between various transfer points along the shipping route can expose the products to conditions that make the products unqualified prior to reaching the customer. This development is causing companies that need temperature-controlled shipments to give high priority to this aspect of their procurement needs. Traditionally, the temperature-controlled freight was mainly focused on the pharmaceutical industry and the food industry. However, the discussion has expanded over time, and more companies are evaluating the effect that transport conditions have on the quality of the shipment, wastage and customer satisfaction. More buyers are focusing on all aspects of shipping instead of simply looking at the availability of refrigeration trucks. The selection of the freight carrier has become more complicated. More companies are interested in knowing the processes employed by the freight provider in order to maintain the set temperature in transit, management of disruptions in the shipping route and shipment documentation. Questions that were asked at the contract negotiation phase are being raised in advance because of the importance of transportation reliability in the inventory plan. However, the question goes beyond equipment availability. Refrigerated trailers and containers are incapable of maintaining the temperature of the shipment if there are scheduling problems or handling problems at the transfer points. Firms shipping temperature-sensitive cargo require transportation partners who can provide consistent handling of the shipment from pickup to delivering it. Procurement experts are also evaluating if the transportation partner will be able to cope with the evolving shipment patterns in the firm. The distribution networks are changing because firms are serving new markets while responding to the expectations of fast fulfillment among customers. These developments have increased the significance of freight planning because of longer routes and more handling of the cargo in the routes. Firms that rely on temperature-controlled transportation in the delivery of their products to customers may find themselves being asked for documentation by their customers about the shipment. This will put pressure on the logistics partners to prove their capability based on the handling practices and not just refrigeration assets. The procurement discussion is gradually being shifted from price consideration to the reliability of the shipment process. While buyers are concerned about the price, the costs of losing products or rejected shipments can be more than the saving on the cost of freight. This trend indicates that the temperature-controlled freight will be a specialized transportation service whose procurement process will rely on the capability of the provider rather than a comparison of capacities.

Usually, schedules in warehouses are overlooked until a temperature-sensitive shipment fails to depart according to plan. In such a case, warehousing time, loading procedures and delivery schedules become linked to the possibility of maintaining appropriate temperature parameters. An increased interest in temperature-controlled freight has become the source of enhanced attention paid to distribution processes before the cargo's departure. Temperature-controlled transportation requires coordination among different points instead of only refrigerating the cargo during the transport process. Preparation of shipment, dispatching schedules and reception of cargo can be responsible for the cargo's ability to keep temperature requirements during the whole delivery process. This broader approach changes the way companies evaluate their logistic performance. Distribution managers start giving more attention to the interdependence between activities in warehouses and the availability of the cargo. Scheduling problems in one warehouse may cause disruptions in transportation plans of the following deliveries, especially in the case of tight planning of the refrigerated equipment's route. Minor problems may cause large schedule difficulties as alternative equipment is not always readily available. Also, companies start reevaluating the practices concerning inventory management in connection with transportation capacity. Keeping goods in warehouses for a longer time than expected can change the shipping schedule and cause additional storage needs prior to freight departure. This leads to new considerations for companies that deal with cargo that has low tolerance of changing environmental parameters. Providers of temperature-controlled freight may need to cooperate with managers of warehouses more often due to requests from clients for better coordination of shipment preparation and its delivery. Transportation performance becomes increasingly dependent upon information exchange among facilities instead of being isolated by functions. Expectations of customers are also playing a role in distribution planning. Commitments about delivery become more complicated to fulfill when refrigerated transportation should take into account schedule changes without impact on shipment quality. Companies may need to reevaluate fulfillment commitments in light of transportation capacity and not expect refrigerated service to cope with any changes. The consideration gradually expands its scope beyond the transportation function. Distribution processes, warehousing schedules and freight coordination become elements of the same planning process as shipment becomes temperature sensitive and requires functioning of all stages within a certain timeframe. Temperature-controlled freight will continue to attract attention; however, many future improvements will come from distribution facilities and not the transportation process itself. When companies analyze shipment quality, they start realizing that transportation performance is the result of many preceding decisions.

Getting a temperature-controlled transportation contract is just the start of the responsibility. Sustained shipment conditions throughout the delivery process require consistent execution at every phase of the freight delivery, making execution at least as important as transportation capacity. Companies buying temperature-controlled freight services are becoming increasingly concerned about how well such providers execute routine shipment operations. The interest centers around questions regarding handling practices and procedures to be followed when disruptions take place. Consistent execution can determine whether products are delivered in acceptable condition after transportation. One difficulty lies in the fact that many shipment risks can emerge from slow development rather than clear equipment failure. Loading delays, route changes or prolonged waiting time can affect product conditions even when refrigeration systems work as designed. The freight provider needs to manage such circumstances in order to satisfy customers, who will judge the delivery as a whole rather than its cause. Execution quality is also important in terms of establishing a business relationship. Transportation providers are often called to deliver sensitive products in consistently good condition throughout a long period of time. Any problems arising from shipment can lead to more scrutiny of the transportation process and new requirements. Questions related to shipment monitoring, communication in case of disruption and documentation regarding delivery conditions can become part of the discussion when making a contract. Buyers are looking not just at transportation availability because their confidence in execution is important for further cooperation. The other point about temperature-controlled freight providers is the difference in customer requirements from one shipment to another. Handling practices suitable for one category of products might not always suit other products, and transportation teams need to maintain discipline despite changing customer specifications. The consistency of services becomes particularly important when companies analyze the performance of transportation over a period of time rather than on an individual delivery basis. Consistently successful shipments weigh much more than sporadic cases of outstanding execution because procurement decisions depend on reliability. The temperature-controlled freight industry seems unlikely to be defined only by equipment anymore. Companies choosing transportation providers are expected to examine how shipment is executed throughout the delivery process because execution often determines business relations.