Overcoming Cold Chain Challenges

The grocery market will be dominated by retailers who deal with the last mile challenge, establish cold chains without interruption, and improve operational efficiency.

FREMONT, CA: The shift in retail purchasing behavior is one of the worldwide pandemic's disruptive consequences. Due to worries about safety, many consumers increasingly choose to purchase online rather than in actual stores. Because of this, a sudden change in customer behavior has increased online sales while decreasing in-store purchases. Young and elderly alike already accept internet shopping, and food is now among the direct-to-consumer purchases available. Having products delivered right to customers' doorsteps has also played a significant role in this transformation. It is now possible for consumers to order right from their homes and have them delivered to their doorsteps.

It is understandable why individuals increasingly shop online because it offers such a flawless shopping experience. Door deliveries are here to stay since older populations increasingly embrace internet purchasing behaviors. However, the last-mile cold chain for food is an intricate and expensive business concept. Retailers will need to adjust some of their tactics to deliver outstanding customer experiences while maintaining as efficient a logistical operation as feasible to meet these demands at scale. Here are some of the main issues retailers face due to the shift, along with some intriguing advancements to address these issues with cold chain logistics.

Keeping products fresh: The typical grocery order consists of temperature-controlled items that must be consumed within a few days and those with a very extended "use before" date. These are often between 14 degrees Celsius and frozen. The last journey back to the customer's home would only take a few hours because each is kept in distinct areas of the business at various temperatures. The online business model delivers the same assortment of goods to the customer's door from a fulfillment center. Given that each product has a different temperature need and might take anywhere from 6 to 12 hours, there are increased expectations for how the shop will deliver the order.

Efficiencies: Many merchants have started utilizing temperature-controlled delivery boxes to keep items chilled or frozen for up to 24 hours using cooling elements or ice packs. The handling and stacking goods onto the delivery vehicle or van has become easier thanks to these cartons. Conversely, packing things with unusual shapes can be challenging. Additionally, if the order is small, the retailer is left to pay the unavoidable expense of air shipping. The typical supermarket is no longer where some businesses handle the order fulfillment. This often cuts down on last-mile travel durations, easing concerns about temperature restrictions. However, this methodology permits a different depth of selection than internet orders often qualify. Converting a supermarket into a fulfillment center is difficult and expensive.

Few merchants have looked into chilled last-mile delivery. This is yet another variant that delivers orders in shopping crates using vehicles or vans that are completely or partially climate-controlled. Although the initial and ongoing expenditures would increase, this strategy has succeeded. Although only some stores are looking into this possible solution, it is frequently utilized for fresh fruit deliveries to restaurants and could be worth looking into for other businesses.