Telematics Revolutionizes Cold Chain Logistics

The cold chain logistics sector, which was valued at estimated $248B when the pandemic began, is poised to double its size by the end of this decade, with industry analysts are projecting the value will exceed $410B by 2028.

Temperature-sensitive commodities including frozen food, farm-fresh produce, seafood and pharmaceutical products flow through this refrigerated network, which surged during the pandemic as people stuffed their freezers as they stayed home.

Telematics, a blend of telecommunications and informatics that involves the transmission of data over long distances, now has become essential to the expansion of cold chain logistics as the technology is deployed to monitor and manage the transportation of perishable goods, according to a report in Food Logistics.

Telematics, which uses sensors, GPS and communications systems to provide real-time data about the condition of goods in transit, is enabling a level visibility and control that allow stakeholders to make inventory control decisions on the fly, reshaping the industry, the report said.

Real-time monitoring is a game-changer because the transportation of perishable goods across long distances involves numerous handoffs. Telematics software ensures a continuous stream of data about crucial cold chain parameters including temperature and humidity.

In addition to reducing spoilage and permitting shippers to intervene quickly if vital parameters are fluctuating, telematics also enables more accurate estimations of shelf life. This enables suppliers to optimize inventory management and reduce excess production.

Telematics also has become a critical component of food safety, with the ability to pinpoint the source of a problem, enabling target recalls, Food Logistics said.

Machine learning and artificial intelligence soon are expected to integrate predictive analytics with telematics, enabling “preemptive” adjustments to temperature and humidity settings. Blockchain technology also may be used to enhance traceability, the report said.

Last month, UPS agreed to acquire MNX Global Logistics, a leader in the delivery of temperature-controlled and time-critical products. Long Beach, CA-based MNX has operations in 190 countries, with capabilities to deliver radio-pharmaceuticals and temperature-controlled logistics.

The acquisition of MNX greatly expands UPS’ growing healthcare services, including clinical trial logistics subsidiary Marken. Terms of the deal were not disclosed.

UPS also has been expanding its healthcare logistics network in Europe, last month announcing the acquisition of Transports Chabas Sante’s healthcare logistics unit, which strengthens the ability of UPS to deliver pharmaceutical and biologic treatments across Europe.