Malaysia's Cold Chain Industry Guide


6 Key Impacts Cold Chain Logistic 4.0

Leading Edge of Cold Chain Storage March 7, 2022


Automation Cold Chain Digital and Technologies Cold Chain Logistic Cold Chain Management Cold Chain Racking Logistic 4.0 Warehouse Management System

Quick Read : 

The demand for highly customised products and services is increasing all the time. As a result, both inbound and outbound logistics must adapt to this changing environment. It cannot be handled with ordinary planning and controlled practices due to its increasing complexity. Logistics 4.0 and Supply Chain Management 4.0 are concerned with various aspects of end-to-end logistics in the context of Industry 4.0, the Internet of Things, emerging technologies, and AI-enabled advanced data.

  1. Internet of Things (IoT)

  2. Digitalize the Transparency in the Logistics Process

  3. Achieve Maximum Flexibility and Speed to Cope with Demand Changes

  4. Cold Chain Automation Challenges 

As consumer preferences continue to change, e-commerce expanding, distribution flows being disrupted, and an increase in demand for chilled and frozen foods tailored to individual preferences, providers are looking to Industry 4.0 revolution methods to help them meet these challenges. Companies that provide supply chain services, such as those in the cold chain industry, will evolve the way supply chains operate, making them more responsive to demand and assisting organisations in becoming more flexible, accurate, faster, and nimble.

As consumer demands and manufacturing shifts continue, the cold chain will also be able to embrace and benefit from the fourth revolution. 

Shifts in Supply Chains Affected By The Internet of Things (IoT)

The Internet of Things demonstrates its full potential in processes such as supply chain. Management, forecasting, and oversight applications assist business owners in improving distribution operational efficiency and adding transparency to decision-making. Connecting everyday devices to the internet is what IoT is all about. This allows for large amounts of data to be collected from multiple locations, increasing visibility across operations.

There are various benefits of IoT that the supply chain can gain from:

  • Real-time tracking and tracing

Companies have been able to track the location of assets and shipments in real time, thanks to this technology, allowing for better responsiveness and decision making in changing environments.

  • Monitoring the storage condition

One of the most common IoT supply chain solutions, for example, collects data on the temperature inside vehicles, pressure, humidity, and other factors that could jeopardise the product's integrity and triggers automatic condition adjustment.

  • Easily find good in storage

The advantages are numerous, ranging from improved warehouse process efficiency to improved inventory management and employee safety, especially in the cold chain industry. Employees on-site, for example, can easily locate goods and get to the exact aisle for a specific product thanks to real-time location trackers. 

With higher speed, accuracy and flexibility, IoT will improve cold chain logistics in a big way, increasing operations and its efficiency, allowing for better production and lesser cost in the long run.

Did You Know ►

Since 2012 , Amazon has implemented and excelled in the use of IoT to help improve thier workforce productivity, leading to efficient processess in packing , wrapping and inventory management. 



Digitalize the Transparency in the Logistics Process

According to a recent Reuters and Blue Yonder survey, 63% of retailers and manufacturers, as well as 60% of logistics service providers, believe that end-to-end visibility currently provides the highest ROI in their supply chain processes. Decision-making in the company will become more collaborative and efficient as a result of this increase in transparency as well. Not only will the supply chain processes be more transparent to the company, but so will the behaviour of corporate partners and customers.

These companies already rely on technologies that provide transparency to their customers and operations, automate processes, and encourage business agility. These include automated ordering and invoicing processes, digital workflow management applications, performance analysis support, and real-time supply chain tracking.

A quick glance at a cold chain industry:

Consumer interest in supply chain transparency has increased as a result of the global COVID-19 pandemic. Increased public concern about hygiene and food safety is expected to cause more consumers to scrutinise the brands they buy from. Smart labelling and digital tracing, which provide contact-free and secure product information at high speeds, can help to reassure consumers that products are safe to eat.


Achieve Maximum Flexibility and Speed to Cope with Demand Changes

Manufacturing flexibility improves a company's ability to respond to customer demands in a timely manner and to increase production system productivity without incurring excessive costs or expending excessive resources. Cloud operations and industrial Artificial Intelligence, for example, are emerging technologies in the Industry 4.0 era that enable new flexible production systems.

In the cold chain industry specifically, companies should keep an eye out for shifting demands in today’s world especially when it comes to volatile products, such as food & beverages. With proper assessment and prediction of when demand is high throughout the year, companies can then be flexible enough to produce sufficient supply without compromising quality and price.

The following step for companies will concentrate on using forecast data to provide warehouse operators with critical information about the future state of the facility, performance, and warehouse utilisation.


Cold Chain Automation Challenges

In the end, automation will be at the forefront of Industry 4.0 in the cold chain. This is made possible by the spread of automation in the cold chain. Automation does have its drawbacks. Aside from costs, lead times, a technical workforce, and a more modern enterprise resource planning platform all makes automation investments difficult to implement.

Aside from its drawbacks, Walmart has benefited through cold chain automation with:

  • Reduced operating costs through better resource planning, as well as lower customer chargebacks, fines, and carrier charges.

  • Enhancing order quality and customer service levels

  • Faster delivery and response times to changes

  • Reducing picking errors 

  • Improving precision, packaging, labelling, and packing

  • Improving customer order status notifications and center response times

  • Increasing productivity

As supply chain modelling and orchestration become more discrete and precise, cold chain leaders will be able to connect capabilities and automation for customers seeking to ride the Industry 4.0 wave.

From a cold chain logistic standpoint, the "Industry 4.0" technologies and concepts are expected to have the greatest impact, particularly on procurement, production, and distribution activities in the supply chain. From a technological standpoint, the implementation of technologies, AIDC- and RFID-technologies, and the miniaturization of electronics will primarily change logistics organization.

 Click Here to register with us TODAY!


Cold Room And Cold Truck Related Services

Cold Room/ Cold Warehouse : The Do’s and Don’ts

Cold Room And Cold Truck Related Services

4 Significance Cold Chain Services For Businesses

Cold Room And Cold Truck Related Services

9 Factors That Affect A Cold Room / Cold Storage Set Up Cost