Lately, packaged food has become an increasing trend in the major developed as well as developing countries. With changing lifestyles, this trend is growing enormously.
However, there is a vast amount of target audience that prefers consumption of fresh food more than frozen food. Logistics related to fresh and frozen food is a lucrative option for several companies to enter this industry.
Also, new legislation in the retail sector is touching higher boundaries, which is why retail chains are now based in several rural areas too.
Such rural outlets provide access to the less fortunate people and aid in supporting their living. Amidst the industry chaos, maintaining a retail-friendly cold chain is a challenge that is faced by several established as well small and mid-sized companies.
The Working of the Traditional Cycle
The supply chain of fresh and frozen food varies according to the availability of machinery, capital investment, price wars, changing consumer preferences, and many other factors. Typically, the supply chain starts with the procurement and sourcing of raw materials.
These raw materials and agricultural produce travel from a farmer to a trader. This trader can then pass the goods to either directly the retailer or wholesaler.
In a few places, local authorities add an extra layer of distribution channels. Each step in the chain adds value and a specific cost to the overall distribution cycle.
A lot of times, fresh foods and vegetables need transportation without any boxes, limited packaging, and no cold chain facilities, which hinder the quality of the goods by the time it reaches the end-user. Quality suffers a lot in such cases and adds to the increased wastage ratio.
On average, only fifteen percent of products that need refrigeration get adequately handled, which accounts for a loss of about thirty to fifty percent waste in the developing countries.
How to Solve this Crisis?
Any company that is planning to enter the retails sector has to figure out the different hurdles accurately and jot down how they can overcome these difficulties. The complete know-how of the cold chain logistic system is essential for any retail firm.
Temperature control is an important measure to keep the fruits fresh. The companies must evaluate the dynamics of the routing process and invest in adequate refrigeration capabilities.
Several companies are investing in cold trucks, equipment, and cold chain warehousing and transportation technology to provide the best services to their customers.
For instance, Boris Wolfman has invested a lot in the procurement and logistics of fresh food and has strong cold chain capabilities. One of the solutions is to invest in unique packaging that can protect the products from temperature fluctuations and improve shelf life.
The cold chain logistic scenario is bound to change as per the requirements of the customers. The public, as well as private firms, are stressing upon the necessity of the cold chain facilities and warehousing to keep health standards high.
However, the mid-sized firms do not possess the adequate capital requirement, because of which the threat of new entrants seems to be moderate.
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