PAXAFE | Blog

How Technology is Changing Cold Chain Logistics for Better Efficiency

Written by Bobby Criss | Oct 22, 2024 4:25:33 PM

 

Cold chain logistics is all about keeping products like food and medicine at the right temperature during transport. Today, many supply chains face challenges in modernizing their processes to be more efficient. Some companies still rely on outdated methods, like passive loggers and traditional carrier codes, which makes it hard to adapt to changes quickly. Also, long-term business planning often gets in the way of making fast, data-driven decisions.

Another big problem is that data is often kept in separate "silos" across different regions, making it hard to get a clear view of operations. Even with modern systems like ERP (Enterprise Resource Planning), WMS (Warehouse Management Systems), and TMS (Transportation Management Systems), it can be difficult for companies to create a single source of truth. As a result, the journey toward digital transformation is slow, and issues with managing data keep coming up.

Temperature-controlled shipping adds another layer of complexity. Quality teams manage this process, but their standards can vary from one region to another. New teams, called Decision Support teams, are trying to improve access to data and help with decision-making, but they haven't fully integrated their systems yet. Some companies provide expensive monitoring services, highlighting the need for more affordable and effective supply chain oversight.

This blog will explore the challenges facing cold chain logistics and the steps we can take to create a more efficient, data-driven future.

How Technology Can Help Transform Cold Chain Logistics

As we look to the future, the convergence of new technologies promises to revolutionize the cold chain industry. In the book The Future is Faster Than You Think, the authors explain that new technologies are accelerating quickly and coming together to change industries, including the cold chain. Innovations like the Internet of Things (IoT), robotics, machine learning (ML), artificial intelligence (AI), and better transportation methods are bringing a new level of accuracy and efficiency.

Imagine what happens when these technologies work together. Drones, IoT devices, and AI could help monitor and deliver sensitive products like medicine with incredible accuracy. Electric trucks equipped with IoT sensors and AI could reduce pollution while also finding the best routes and keeping temperatures stable. Robots could help in warehouses by sorting and packaging products, while IoT sensors ensure everything stays at the right temperature.

Each of these technologies is improving rapidly. Robots are becoming smarter, and mobile networks are getting better, making it easier to monitor products in real time. Bringing these technologies together has the potential to make cold chain logistics more responsive, reliable, and efficient than ever before.

Predict, Understand, and Act: The Future of Monitoring

As the cold chain industry evolves, the way we monitor and keep track of products is also changing. By combining IoT (for monitoring), machine learning (for predicting issues), and AI (for making proactive decisions), we can create a system that almost runs itself. Paxafe's Live Risk platform is one example of this. It simplifies monitoring during transportation by spotting risks before they become problems. Features like Predictive Time of Arrival (PTA) and Predictive Time to Excursion (PTE) help shippers take action hours before issues arise, reducing product loss and improving resource use.

Traditional visibility solutions often require teams to watch screens and handle many alerts, which can be overwhelming. Live Risk takes a smarter approach by offering clear, actionable insights. This helps companies avoid problems with temperature-sensitive goods, saving money and reducing monitoring costs by focusing only on the most important events.

Tracking with IoT and Serialization

IoT devices, combined with serialization (unique identification of products), can track items down to the smallest detail, like the SKU level. This allows for more advanced monitoring and control over things like temperature, making sure that products stay effective. AI tools, like PAXAFE's analytics system called Athena, can also help by analyzing data from the cold chain to give useful insights and find the root causes of problems. Instead of waiting for lengthy analytics projects, supply chains can now use AI tools to react in real time, making operations faster and more flexible.

Custom Solutions for Real-Time Visibility

The future of real-time visibility in transportation is almost here. Traditional "one-size-fits-all" solutions often don't meet the specific needs of industries like pharmaceuticals or food. Now, customized solutions are emerging that focus on unique requirements, such as extra security or precise temperature tracking. These custom visibility tools, powered by online learning models and open APIs, will play a key role in building visibility across the entire supply chain.

In a world where every second counts, real-time transportation solutions need to be adaptable, data-driven, and tailored to specific industries. By focusing on these unique needs, the cold chain industry can improve efficiency, reduce risks, and move beyond the limitations of older visibility methods.

Conclusion

The cold chain industry is facing challenges, but technology is providing the tools we need to make real progress. By using IoT, AI, robotics, and other new technologies, we can make the supply chain more efficient, reliable, and ready for the future. These innovations help companies take proactive action, reduce waste, and save valuable products, which is crucial for industries that depend on temperature-sensitive goods.

If you're interested in learning more about how technology can help your cold chain logistics become more efficient, contact PAXAFE today. We can help you navigate the future with better insights and smarter solutions.