Blog Post
The importance of transparency in the food industry for businesses to maintain business growth
Website Editor • May 11, 2020
If the food industry is to maintain their consistent annual revenues and grow their market share, transparency in their supply chain operations will have to become the norm.
It is apparent from consumers purchasing habits that they are becoming more health-conscious. Due to the rise in technology and an ever-globalising society, efficiency is certainly a major factor in consumers purchasing decisions. However, consumers are not willing to put aside quality in return for efficiency, as healthy lifestyle decisions are becoming more important. The food industry is one of the biggest industries in the current market and includes all businesses that deal with the delivery of food to clients and consumers. This encompasses raw food companies to meal kit companies. One major claim underlies the overall food industry, and that is the promise that food consumers receive fresh and high-quality food products. But really, how can these claims be made certain? If the food industry is to maintain their consistent annual revenues and grow their market share, transparency in their supply chain operations will have to become the norm.
The food industry is a large and growing market, and revenue is expected to reach US$2.5 billion by 2024 in Australia, as reported by Statista. The nature of foods and the food industry is very volatile, as the viability of the consumables is altered by a variety of factors. Therefore, claims made by the food industry of their produce being ‘fresh’ needs to be accurate to decrease chances of food poisoning. Transparency in the food industry will empower the control clients and customers have on the choices they make when purchasing from stores.
Temperature excursions during transport is an increasingly complex challenge experienced by the food industry. Although the food industry is highly profitable, the losses incurred due to temperature excursions is significant. Temperature excursions during transport is a major issue for companies which leads to a high amount of wastage and associated costs. Not only does this hold significant economic impact, environmental consequences of food waste are also large. Global food loss and waste significantly contributes to greenhouse gas emissions amounting to 4.4 gigatons of equivalent carbon dioxide as highlighted by FAO. A study highlighted in the article ‘Food spoilage, storage, and transport: Implications for a sustainable future’ by Hammond et al,
found that nearly all issues relating to food perishing originate from temperature deviations. Over excessive heat creates bacteria such as E.Coli and Salmonella, and also decreases the longevity of the food. Issues such as contaminated foods due to temperature excursions during transport can be resolved through increased end-to-end visibility in the supply chain
Adapt Ideations smart asset tracker KELVIN
revolutionises the supply chain by providing end-to-end visibility. By utilising the asset tracker, companies will be able to monitor valuables while in transit. Adapt Ideations smart asset track KELVIN is specifically designed for the food and beverage industry.
It’s sensors critically monitor in near real-time location, temperature, shock and light exposure. Any deviations from the set variables will result in a near real-time automated alert enabling immediate action to be taken. Adapt Ideations smart asset tracker KELVIN is enhanced with IoT technology to increase the transparency in an otherwise blind sector of food industry supply chains. To maintain and grow their consumer base, the food industry must increase transparency in its supply chain.
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Temperature-controlled logistics is a crucial aspect of global supply chains, particularly in the pharmaceutical industry. Maintaining the correct temperature during transportation is not just a logistical issue but also a critical factor in ensuring the safety and efficacy of life-saving vaccines and other temperature-sensitive products. As the demand for temperature-sensitive products like vaccines and biologics continues to surge, ensuring their safe transportation is paramount. Any deviation in temperature during transit can compromise the efficacy of these products, leading to significant financial losses and potential health risks. This blog delves into the evolution of temperature-controlled logistics, critical challenges faced in this sector, and groundbreaking innovations that address these challenges. With a focus on real-time monitoring through IoT solutions, we aim to showcase the advancements that contribute to the efficiency and compliance of global pharmaceutical supply chains. Evolution of Temperature-Controlled Logistics Temperature control has undergone a remarkable transformation in the last two decades. Stringent global regulations, customer demand for new temperature ranges, emerging markets with extreme temperatures, and the growing value of drugs like biologics have been essential driving forces. These factors have spurred the evolution of temperature-controlled logistics to meet the demands of a rapidly changing world. The landscape of temperature-controlled logistics is evolving, thanks to technological advancements. Trends include the growing availability of prequalified shippers simplifying the validation process, sophisticated supply chain services, a rising interest in reusable packaging, and advances in temperature-monitoring technology. These innovations contribute to the industry's ability to adapt and thrive in a dynamic environment. Temperature-controlled logistics involves managing the flow of products through a cold chain. Divided into food and pharmaceutical sectors, the global market size of cold chain logistics is projected to grow significantly. From USD 242.39 billion in 2021 to USD 647.47 billion by 2028, exhibiting a CAGR of 15.1%, the industry is expanding rapidly, reflecting its critical role in modern commerce. 3 Key Challenges in Temperature-Controlled Logistics Compliance Issues Stringent Regulatory Standards: Global temperature-controlled logistics operates within a framework of strict regulations set by health and safety authorities. Meeting diverse regulatory requirements across international borders poses a significant challenge for companies in this sector. Documentation & Reporting: Compliance involves meticulous documentation and reporting of temperature-sensitive shipments. Keeping up with the evolving documentation standards requires streamlined processes and robust systems. Validation & Qualification: Ensuring the validation and qualification of equipment and processes according to regulatory standards is an ongoing challenge. The need for continuous validation adds complexity and time constraints to logistics operations. Risks of Temperature Deviations Product Integrity: Temperature-sensitive products, especially pharmaceuticals and biologics, are highly susceptible to temperature deviations. Even brief exposure to temperature breaches during transit can compromise the integrity and efficacy of these products. Financial Implications: Temperature deviations can lead to significant financial losses for companies. Replacing or disposing of compromised products and potential legal repercussions contribute to financial challenges. Supply Chain Disruptions: Temperature deviations can disrupt the entire supply chain, leading to delays in product availability. This not only affects businesses but can have critical implications for healthcare providers and patients relying on timely access to medications. Security & Theft Concerns Value of Cargo: Temperature-sensitive cargo, such as pharmaceuticals, vaccines, and high-value perishable goods, can become a target for theft. The significant value of these products heightens security concerns throughout the supply chain. Vulnerability During Transit: The vulnerability of cargo during transit, particularly in unsecured areas, poses a constant risk. The potential for theft during transportation adds complexity to securing temperature-controlled shipments. Need for Tracking & Monitoring: Ensuring the security of temperature-sensitive cargo requires robust tracking and monitoring systems. Integrating security features, such as real-time location tracking and tamper-evident technologies, is essential to mitigate theft risks. In navigating the intricate landscape of temperature-controlled logistics, companies must address these multifaceted challenges to uphold compliance, safeguard product integrity, and ensure the security of valuable shipments. Innovative solutions, such as advanced monitoring technologies and comprehensive security measures, are crucial in overcoming these challenges and fostering a resilient and efficient supply chain.
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