How The Right Solutions Can Help Manage The Cold Chain

By Melissa Lind, contributing writer

Recent regulatory initiatives, such as the upcoming launch of the Food Safety Modernization Act, are demanding that food industry participants move from response to prevention.  In addition to obvious safety concerns, events requiring a recall pose significant costs to no just the food industry, but the economy as a whole.

The total impact of food-safety events to the U.S. economy is estimated at $7 billion per year.  Costs associated with consumer notification, recalls, and litigation adds up quickly and someone has to foot the bill; this burden will likely land on you, the producer. Aside from the economic impact associated with recalls, inefficient operation of cold chain management systems can result in:

• Losses in product quality
• Shorter product shelf life
• Total spoilage of products
• Shortages at the retail level

It is much more economical for a company to prevent food-safety events, rather than just respond to them.  Technological investments can be a strain on your company’s wallet, but the alternative is much more financially risky.  Until recently, company managers were on their own regarding monitoring, tracking, and management of the cold chain.  Improving cold chain management process can prevent the financial impact of:

• Loss of customer confidence
• Loss of business revenues
• Recall and disposal costs
• Legal costs associated with litigation
• Government action

Similar to information- and process-management systems that have developed in other industries, this type of technology is now available for food industry participants.  Dashboard-based software is available for virtually every process from small, personal use to large industry systems management.

Intuitively designed technology platforms can often be implemented with minimal to no equipment outlay and minimal training.  This new technology can help manage the cold chain from warehouse to consumer, including transportation vehicles, dock activity, warehousing, and delivery with visibility in real-time conditions. Knowing when and where an issue is occurring can help you prevent additional events within a particular shipment and improve future processes.

Ensuring the safety of your company’s product from docks to your customer will improve the bottom line by reducing waste and shrinkage from environmental events, prevent regulatory expenses and loss of revenue, but it can also give a leg up through increased sales and export opportunities.