Cold Chain Capacity Becomes a Procurement Priority for Freight Buyers

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.