The increasing demand for frozen cooked and the semi-cooked food is expected to fuel the growth of cold chain logistics market in the coming years.
The cold chain logistics space is witnessing considerable growth, driven mostly by the rising demand for temperature-sensitive health products. The industry, at large, involves the transportation of temperature-sensitive products under controlled conditions. The products with limited shelf life such as dairy products, frozen food, pharmaceutical products, and meat products are transported and distributed using cold chain logistics. The relentless growth of the industry can be attributed to factors such as growth in the organized retail and rising export demand for processed and frozen foods. Apart from such factors, the rising adoption of multi-temperature refrigerator vehicles and growing preference for third-party logistics services may further influence the growth of the industry.
Here are some of the factors that may curtail the growth of cold chain logistics space:
- Rising infrastructure costs: To establish an efficient supply chain process, extensive investments in specialist warehouses with temperature-controlled zones becomes a primary Moreover, to cater to the rising demands of the customers, it becomes essential for businesses to streamline their supply chain operations right from the source to the final delivery of products.
- Traceability: In the cold chain logistics space, it becomes critical for the businesses to keep track of their product offerings and ultimately reduce the time-to-market for the products offered. The products involved in transportation can also include drugs that have to be properly administered. Consequently, businesses have to ensure consistency in their product offerings to meet the growing needs of the target audience.
To address such challenges and profile the most suitable suppliers, organizations are utilizing supplier selection solutions. Implementing an effective supplier selection process helps business identify and evaluate the most suitable suppliers and streamline their financial resources to meet the business requirements. Moreover, with the help of supplier selection solutions, businesses can drive customer demand and build a strong brand reputation for quality products.
The Business Challenge
- The client- A renowned cold chain logistics provider
The client, a renowned cold chain logistics provider, wanted to select the right suppliers and meet the regulatory standards to build a strong reputation for quality products. With the help of our supplier selection solution, the client wanted to ensure quality and safety in their product offerings and consequently meet the shelf-life expectations of the products. Moreover, the cold chain logistics provider wanted to seek ways to identify performance gaps and improve their overall business performance.
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To monitor the supplier performance, the supplier selection experts at Infiniti carried out extensive research comprising interviews and discussions with prominent stakeholders in the cold chain logistics space. In addition, to identify the performance gaps, the experts also compiled information from a wide array of reliable sources such as trade shows, industry forums, and company presentations in the logistics industry.
The Solution Benefits and the Business Impact
The supplier selection solution offered by Infiniti helped the cold chain logistics provider to select the right suppliers from a pool of suppliers. The engagement also assisted the cold chain logistics provider in assessing capabilities and comparing pricing points. Moreover, the solution offered also allowed the client to establish KPIs to analyze suppliers’ strengths and weaknesses.