Cool chain, or cold chain, management is the temperature-controlled handling of products that are being processed, transported, stored or displayed. The ‘cool chain’ name derives from the fact that it involves the temperature-controlled (typically cooler) supply chain.
The products that require cool chain management are those that must remain at certain temperatures throughout the supply chain to ensure product effectiveness, product safety, and compliance with industry and/or government standards for the product.
Why is Cold Chain Management Important?
The primary reason cold chain management is crucial lies in the fact that, without it, products will no longer be suitable, or even safe to use, for their purpose.
The most common products that need cool chain management include food and pharmaceuticals. Perhaps the highest profile recent example of cool chain management in action was in the handling and transportation of COVID-19 vaccines. Most of the vaccines had to go through processing, transportation and storage at varying temperatures, down to -90 degrees Celsius in some cases.
But it’s the result of not maintaining cool chain management throughout the supply chain that really underscores its importance.
Product Spoilage & Loss
Without adhering to cool chain standards, products can become unusable. Of course, that means the loss of a finished product. But, the loss or spoilage of a product that requires cool chain management can be even more costly.
Many products that are spoiled may be at least partially reintroduced into the supply chain. They can become the raw materials or parts to supply for new finished products. This means of recouping some value from spoilage is generally not possible with cool chain products.
Logistical Costs
Of course, the logistical costs of transporting a product that becomes obsolete are also lost. But, adding to the overall expense are the logistical costs of disposing all the lost products.
Damage to Brand Reputation & Customer Satisfaction
This one may be the most difficult to assess, and the most costly. The inability of a company to properly manage their products through the supply chain can affect their supply chain partners and end-users in untold ways. Ways that can result in a change in the relationship.
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