Monday, May 29, 2017

Timely to invest in cold chain logistics automation

Most consumers do not realise what processes and handling the food on their plate has gone through before they actually consume it. As food product quality deterioration and decay starts from the moment of harvest (fruits & vegetables); slaughter (meat & poultry) and catch (marine products) onwards, within 6 hours fresh food products need to enter the so-called “cold chain”, in order to preserve the food in accordance with health regulations to maintain the important properties of nutrients, texture, flavour, appearance, and moisture. A cold chain is a temperature-controlled supply chain, in accordance with an uninterrupted series of storage and distribution activities, which maintain a producer given temperature range specification.

Depending on the required preservation time, we distinguish two methods of cold chain preservation: fresh (concerned with maximum shelf life) and frozen (concerned with maximum expiration date). The respective preservation time depends on the type of product. Fresh food products have relatively short shelf life.  Fruits, vegetables and meat cold chains are executed through close control of temperature, humidity, carbon dioxide, oxygen, and ethylene. Not all food products can be frozen for preservation, however, through high performance IQF (Individual Quick Frozen) cryogenic freezers, that uses nitrogen  (-195.8°C) and carbon dioxide (-150°C) as coolants, a wide range of products is eligible.

Malaysia imports many of its agriculture and food products. Transportation from farm to retail is executed by refrigerated sea containers; air cargo containers or Styrofoam boxes; as well as reefer trucks. As food producers put their priority investments in product development and production, they outsource their logistics needs to logistics service providers, as those companies can build the required economies of scale, enabling them to execute cold chain services more cost-effective.

According to Raymond de Graaf, cold chain consultant, Malaysia has two cold chain challenges. First, Malaysia has great variations in temperature range in the cold chain, leading to sustained and cumulative damages to perishable foods. This results in high wastage of more than 30% of shipments. Second, the country is very much dependent on foreign labour for its cold chain logistics. Therefore, in order to ensure safe and sustainable food handling from farm to consumer, the establishment of automated temperature and atmosphere-controlled facilities is of vital importance according to him. This enables cold chain service providers in Malaysia to render comprehensive and customised product services of handling, multi temperature and compatible controlled storage, value added processing, customised order picking and reefer distribution of food products in accordance with an uninterrupted cold chain provision. The result is fully automation of all processes with minimum labour involvement. Conveyor belts are used for vehicle unloading and loading of distribution trucks, as well as for internal temperature controlled product transfer; automated configured palletizing; ASRS (Automated Storage & Retrieval System) rapid crane based multi temperature storage compartments, 12 to 17-pallet stacking positions high; and automated order picking processes.


Unfortunately, Malaysia does not have such automated facilities yet and for that reason is not able to provide cold chain food logistics in accordance with the highest global quality, efficiency, and cost-effective standards. With double-digit domestic annual growth in the cold chain sector, it is timely to invest in automation by cold chain logistics players in Malaysia!

For more information on how to develop professional cold chain infrastructure, please contact marco@lbbinternational.com.

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