Enterprises are doing business in the field of logistics and want to apply cold chain? Do you want to learn more about the structure of the cold chain as well as the challenges and potentials of applying cold chain? Read the following article from Viindoo for more information.
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What is cold chain?
Cold chain is capable of controlling and maintaining the temperature state at an appropriate level, ensuring the cold storage requirements of different types of goods. The main purpose of cold supply chain is to extend the life of goods that are sensitive to high temperatures such as seafood, fresh cut flowers, processed frozen goods, etc. The application of cold chain is very important and quite common in agriculturally developed countries.
Cold chain
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Cold chain supply chain structure
In terms of structural elements
The basic structure of a cold chain supply chain physically consists of two elements:
- Cold storage system: The cold storage system will have the role of storing as well as preserving goods at important logistics points. Here, goods will be stored before reaching users or other distribution points.
- Refrigerated trucks: Refrigerated trucks will have the role of distributing and ensuring that the conditions of goods such as humidity, temperature, etc. are always in the best condition during the delivery process.
For each different kinds of commodity, the cold chain will provide the right temperature. For example:
- Seafood: These types of goods often require deep freezing, ranging from -28 to -30 degrees Celsius.
- Meat: These types of goods usually require a normal level of freezing, ranging from -16 to -20 degrees Celsius.
- Fruits and vegetables: These goods are usually frozen at a low level, ranging from 2 to 4 degrees Celsius.
Cold chain structure
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In terms of organization
The structure of the Cold Chain in terms of organization consists of 3 main elements:
- Storage equipment and goods are safe in stable climate conditions.
- Managers are trained to use specialized equipment.
- Procedures are developed to effectively manage and control the shipping process.
Organizational structure of cold supply chain
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The role of cold chain for businesses
Cold chain helps businesses reduce risks and increase sales. Specifically, the roles of supply chain in the business are as follows:
- Ensure goods quality and limit damage by prolonging storage time: With cold chain, the life cycle of the goods will be extended 2-3 times longer than in normal conditions. At the same time, the rate of damaged goods is also reduced to 60-70%. From there, businesses will be able to provide customers with the best quality products.
- Increase customer experience, build customer loyalty: Consumers will feel satisfied when receiving quality products. Thereby, the relationship between businesses and customers will be more cohesive, thereby increasing sales revenue and creating stability for the business.
- Create opportunities for international cooperation and sustainable development: By applying cold chain, businesses can get the opportunities to export their goods internationally, hence improving business efficiency, and maintaining sustainable relationships with foreign businesses.
The role of cold supply chain
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Potential and difficulties when applying cold chain
Potential
Cold chain is developing strongly and receiving much attention from developing countries, including Vietnam. This is considered the perfect solution for controlling and maintaining the appropriate temperature in goods management, especially for medical products such as pharmaceuticals, biological samples, medical equipment, etc.
The potential of cold chain
Besides, according to Business Monitor, Vietnam's population will grow strongly, leading to an increase in medicines consumption from 3.3 billion to 10 billion USD in 2020. Understanding that situation, our government has also issued many policies to encourage the development of the pharmaceutical industry.
Difficulties
Some difficulties when applying cold chain are:
- Lack of cold storage system: Currently, the nationwide cold storage system can only meet part of the demand. In addition, the structure of cold storage has not met the requirements of deep preservation for seafood products. At the same time, the problem of unreasonable supply chain distribution and lack of uniformity in technology level also brings many difficulties to businesses.
- Lack of means of transport and technology for cold loading and unloading: Currently, businesses transporting refrigerated goods mainly use vehicles such as container trucks, cargo ships designed with refrigerated compartments, cargo lines, etc. However, these facilities still do not meet the required quantity and quality.
- The development of information and communication technology infrastructure: The problem of applying information technology to support logistics communication in our country is still weak. Currently, most websites of logistics enterprises only introduce their services and brands, but lack necessary utilities such as order tracking, order visibility and control.
The application and development of cold supply chains in Vietnam still face some obstacles
The above article contains the information about cold chain that Viindoo would like to introduce to businesses. Hopefully with the above knowledge, businesses can understand how to apply cold chain to their business. If you need more information about cold chain and effective warehouse management solutions, please contact us via the following information:
- Address: 6th Floor, Taiyo Building, No. 97 Bach Dang, Ha Ly Ward, Hong Bang District, Hai Phong, Vietnam
- Email:
- Hotline: 0225 730 9838
