Today, cold chains can control the temperature all the way from production to consumption. Moreover, cold chains help with more than just food. From the COVID times, cold chain management is critical for carrying pharmaceutical and other temperature sensitive products. However, it is also important to understand that every product must take a defined route via the supply chain management system. Whether you use a single logistics and warehousing solutions partner or several supply chain management firms for distinct procedures, they must all ensure that the product is kept at an appropriate ambient temperature throughout the supply chain trip.
The US food and beverage business, as well as the country's capacity to maintain a surplus of perishable goods even placed in buffers, are ultimately dependent on logistics and cold chain management. Any perishable product will undoubtedly require cold chain management at some point throughout its existence. Frozen foods, dairy products, fresh vegetables, poultry, fish, meat, and other perishable commodities are all included.
KEY TAKEAWAYS
- Importance of f&b logistics and warehousing in the F&B industry.
- How does technology help the F&B industry?
- What are controlled-temperature warehouses and transportation?
- Importance of quality control and fast delivery of perishable items.
- How top logistics and warehousing companies maintain the quality standard.
- Market growth of the F&B industry by 2026.
- The conclusion
Logistics and Food & Beverages Industry
Consumption of food and beverage commodities is continually increasing due to different eating patterns and a growing global population. As a result, there has been a huge increase in the expansion of the global food and beverage trade. Logistics specialists are obligated to give the best ways for routing their clients' products to new markets, to continually create f&b supply chain solutions, and to keep up with constantly changing legislation for the export of perishable commodities.
Rigorous food safety regulations apply to fragile and perishable items all over the world, necessitating flawless logistical planning and visibility at every stage of the fleet's movement, which includes contemporary freezers and temperature-controlled facilities in the cargo shipment. If you own a logistics firm or a business that deals with perishable items, you should be aware of the following recommendations for effective perishable logistics distribution.
Adapt the Technology
Both the food logistics and transportation industries have extreme complications involved. Moreover, technology is extremely essential for enhancing the efficacy of food and beverage supply chain management, but it is also required to preserve its core principles. Many experts in the supply chain and food and beverage industries argue that growth and digital innovation go hand in hand. Faster supply chain logistics for beverages processing, especially when considering the lifespan of various perishable items, is made feasible by the employment of superior technologies during consignment transfer
The development of IoT-powered tracking f&b supply chain solutions and cloud-based data management has substantially improved the warehouse distribution logistics of the F&B business in India. The F&B supply chain has been extensively digitalized and automated as a result of its huge value in utilising technology to reduce risks, save costs, and boost visibility. Suppliers may better understand their potential consumers' expectations and aspirations by embracing trends in an agile manner and utilising industry data. As a consequence, they may develop new products and improve supply chain logistics for beverages in order to satisfy client expectations.
Integrated supply chain technology, which simplifies the network of freight forwarders, trucking and transportation firms, and warehousing services, is another benefit for trade enterprises. AWL is one of the best 3pl distribution companies in India and is also an example of a food and beverage logistics technology solution that combines unified apps supported by an AI-powered virtual assistant to build a larger and more technologically sophisticated ecosystem for logistics, warehousing, and freight forwarding enterprises.
Controlled-temperature Warehouses & Logistics
Other critical issues in the F&B business include the storage and transportation of perishable commodities in a temperature-controlled environment. Cold chain logistics is a critical component in the delivery of food and drinks. This means that keeping perishable items in a cold chain warehouse and transporting them in a controlled-temperature fleet are critical processes in the trade of perishable commodities. Proper cold storage must be managed to suit the diverse food and beverage goods in order to retain product quality. By 2026, the global food cold chain industry is estimated to exceed USD 400 billion. This is due to the growing need for improved food and beverage warehousing and logistics services.
As a result, having cold chain and storage facilities is critical for a flexible F&B supply chain. Proper cold storage must be managed to suit the diverse food and beverage goods in order to retain product quality. Warehouse storage facilities, such as WAAS (Warehousing As A Service) at AWL India, should ideally include several staging sections and a range of temperature zones, as various perishable items should be stored at different temperatures. If you use 3PL services, such as AWL, you will have a cold transport fleet to complement this plan and work in concert with the storage facility. Furthermore, this assists the sector in addressing its issues relating to present capacity limitations.
DO YOU KNOW?
Worldwide revenue of the F&B Industry is rising from $506.3 billion this year to $856.9 billion by 2025.
The massive shift to eCommerce @ 51.6% every year increases for food and 39.3% for beverages.
Global Food and Beverage Cold Chain Logistics companies market size are growing at 10.37% CAGR, every year.
Quality Preservation and Swift Delivery
The most crucial consideration during F&B delivery and storage is quality preservation. Especially the dairy industry, which cannot afford to cut corners on quality. Many processing steps of a business-like company's reputation, expenditures, and customer happiness might suffer greatly without competent and fast-moving logistics. The more a firm spends in services and quality distribution, the more advantages it will have and the less costs it will suffer, especially in the medium-long term. The agri-food chain is likewise a complex and articulated environment, and cold chain logistics and cold chain warehouses must organise it efficiently and effectively.
Simultaneously, the final stage in supplying ever-fresh food and drinks over the world is speed in delivery to maintain perishable goods in the best of their state. Fruits and vegetables, for example, do not keep well for lengthy periods of time even when maintained in climate-controlled environments since many raw materials quickly decompose. As a result, they must be dispatched as soon as possible. The same is true for manufactured commodities. Most processed foods have a shelf life after which they should not be consumed. Foods that degrade fast, such as pizza, bread, and milk products, are more susceptible to rotting and putrefaction. Every edible should be in its finest shape when it reaches the customers' plates, according to food safety and standards.
Maintain the Quality Standards
Due to its high level of complexity and stringent safety regulations, the supply chain in the food and beverage sectors has a small margin for mistakes. Systems and facilities must be provided by logistics companies that adhere to the most recent quality requirements for handling, food storage, and food safety. Additionally, it should be properly certified and accredited by regulatory bodies like HACCP (Hazard Analysis Critical Control Point), USDA (US Department of Agriculture), IFS (Indian Foreign Service in the US), and FDA (Food and Drug Administration). Compliance with quality standards is essential due to the numerous parties involved, the perishable nature of the commodities, safety laws, and financial constraints.
It will be difficult for logistics and warehousing companies based outside of the US to comply with local laws, but it should all be worthwhile. For instance, research indicates that supply chain businesses that adhere to GFSI (Global Food Safety Initiative) guidelines gain right away from the practice. The global food cold chain market is expected to cross USD 400 billion market share by 2026. This is brought on by the increasing demand for better food and beverage warehousing. As a result, having cold chain facilities and storage is essential for a flexible F&B supply chain.
Conclusion
F&B companies can satisfy customer demands owing to cold chain storage and scalability possibilities. Every successful food and beverage logistics and inventory warehouse management firm will have large-scale operations. Scalability and supply chain efficiency provide you with a better and wider market reach regardless of whether you are in a region with an excess of local food supply or the opposite, such as in the Middle East, where more than 90% of food supplies are imported from foreign countries. The food and beverage industry is well positioned to capitalise on these opportunities. All food and beverage manufacturing required an effective distribution f&b logistics service, and with the entry of companies such as AWL, a major supply chain management business in India, the food and beverage sector expects to thrive in the next few years, as do global statistics.
Furthermore, we have entered a digital supply chain management era, one in which highly distinct logistics strategies and performance, as well as Gen-Z technology, artificial intelligence, robotics, and sophisticated software for warehouse and logistics insights, are saving billions of dollars in costs and opening up new growth opportunities for businesses.
Rahul Mehra
CEO at AWL India