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Adapting to Climate Change Challenges in the Cold Chain

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3pls, Global Logistics, Global Trade Daily

Adapting to Climate Change Challenges in the Cold Chain

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Climate change is a multifaceted challenge, forcing businesses to adapt to a new reality governed by rising global temperatures and unpredictable weather patterns. Cold chains are particularly vulnerable to these disruptions, underscoring the importance of adopting resilient strategies capable of withstanding the impact shocks. 

Managing Supply Chains is More Challenging Than Ever

It’s no secret that maintaining sustainable supply chains is becoming increasingly difficult. Increasing freight prices, labor shortages and port congestions are just some of the mainstay challenges suppliers have to deal with in 2024. For instance, freight rates from China to the West Coast jumped by over $2,300 between January and February.

The escalating impacts of climate change — rising sea levels, soaring temperatures and depleted waterways — increasingly threaten the production and delivery of goods. Extreme weather events cause significant damage to critical infrastructure like ports, warehouses and roads, leading to increased downtime.

Because of the interconnected nature of global supply chains, disruptions in one region can have a ripple effect on the entire logistics network of another area. The drought affecting the Panama Canal is a stark reminder of the disruptive power of climate change.

Maintaining Cold Chain Integrity

The effects of climate change are decidedly more pronounced across the cold chain. For instance, heat waves can affect the efficiency of warehousing and transportation. Floods and wildfires make roads inaccessible, leading to delivery delays and heightening the risk of item degradation while in transit. Shipping temperature-sensitive items like food and vaccines securely is crucial to tackling food scarcity, preventing waste, and supporting agricultural livelihoods worldwide.

However, each step of the chain — refrigerators, industrial chillers and transportation — considerably contributes to climate change. For example, cold storage facilities must maintain temperatures as cold as -122˚ Fahrenheit to preserve the integrity of certain pharmaceuticals. It takes significant energy to achieve and sustain such conditions, which eventually take a toll on the environment. 

Climate Risk Management for Resilient Cold Chains 

Supply chains are responsible for around 60% of all carbon emissions globally, further prompting the need for decisive action toward mitigation and adaptation. Managing climate risk begins with identifying exposure.

Companies and stakeholders at each touch point across cold chains must account for inherent risk factors in daily operations. For instance, refrigerated warehouses in flood-prone areas could prompt businesses to change existing processes or relocate certain operations entirely.

Exploring options such as shortening the value chain or adopting newer technologies could also help minimize climate-driven impacts. Recent research shows cooling systems account for 44.1% of energy consumption in cold storage facilities, but simple measures like multiple compressor systems and capacity grading can lead to over 30% savings.

Larger suppliers and shipping firms can facilitate sustainable cold chain practices by maintaining climate-friendly criteria and requiring partners to do the same. This approach can create a trickle-down effect, gradually reforming the supply chain. Obviously, additional costs will be associated with such changes, but once the bigger players start to do it, their competitors will have no choice but to follow suit.

Adopting innovations like AI and IoT sensors can also help brands and transporters manage climate risks. For example, AI can help with route optimization by aggregating weather pattern data and suggesting the best journey times for deliveries to minimize disruptions. Additionally, real-time tracking and monitoring provide increased visibility into supply chains, enabling shipping enterprises to respond promptly to climate-related interruptions. 

Nature-Focused Planning 

Resilient cold chains require coordination on a local and global scale. Businesses must be mindful of the importance of nature in supporting supply chains and safeguarding environmental wellbeing.

Renewable energy sources, electric vehicles and eco-friendly packaging are critical to reducing the sector’s carbon footprint, facilitating more sustainable logistics operations in the long run. These considerations will likely be among the biggest drivers of capital allocation decisions in the coming years. 

Public Sector Reforms 

Regulations surrounding sustainability efforts will be critical in supporting a climate-resilient cold chain. Everything has to work in sync, with policymakers providing the right incentives to motivate change and companies doubling down on their eco-conscious practices.

There also needs to be improved levels of scrutiny around compliance with climate regulations to foster increased corporate accountability, especially concerning environmental impact reporting. Only 36% of companies disclosed their Scope 3 emissions — indirect emissions occurring in their respective value chains. With stringent disclosure requirements, governments can proactively address climate risks in supply chains and curb the menace of greenwashing.

Building More Sustainable and Resilient Supply Chains 

The data is undeniable — extreme weather, depleted waterways and rising temperatures are disrupting global cold chains to their very foundations. The frequency and severity of these events make resilience and adaptability paramount considerations for the industry’s future. By investing in climate-friendly infrastructure, adopting energy-saving technologies and fostering nature-driven collaborations, the logistics sector can build a robust foundation for sustainability and resilience across the value chain.

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Global Logistics, Global Trade Daily, Technology

Enhancing Supply Chain Resilience Through Proactive Fleet Safety Management

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Prior to the COVID-19 pandemic, supply chains largely targeted efficiency above all else. After a series of widespread and lasting disruptions, that’s no longer the case. Supply chains must be resilient enough to withstand dramatic changes, but achieving that can be challenging.

It’s not always clear what changes to enact or which technologies are most worth it to invest in. Realistically, resiliency is not the product of a single best practice but the combination of many. Fleet safety management is an important one but an easy one to miss.

How Fleet Safety Impacts Supply Chain Resilience

While broader supply chain shifts like reshoring and supplier diversification are important, logistics processes deserve attention, too. In addition to being fast, transportation must be reliable, which is where fleet safety comes in.

Police-reported traffic accidents involved an estimated 523,796 large trucks in 2021 alone. That equals roughly 1,435 trucks getting into crashes every day, each with potential supply chain consequences. These incidents delay shipments by a few hours in a best-case scenario. In worse cases, they may result in injuries, high repair costs or damaged goods.

Fleet safety can impact supply chain operations outside of impacts, too. Safe drivers may pull over when they notice something unusual with their vehicles’ performance. Stopping and reporting these events is less disruptive than a crash but can still cause delays or require re-routing. By contrast, a safer fleet will make more on-time shipments and encounter fewer unexpected bumps in the road. That consistency in performance, timelines and costs echoes through supply chains.

How to Optimize Fleet Safety Management

In light of these considerations, logistics providers must be proactive about fleet safety management. That means capitalizing on the following best practices.

Implement Connected Technologies

The most important step in proactive fleet safety management is to track safety metrics through connected technologies. Vehicle operations are often able to get ahead of schedule by addressing maintenance needs before they become larger problems. The best way to do that is to track them through the Internet of Things (IoT).

IoT sensors and telematics systems can monitor vehicle health factors in real time and alert workers when issues arise. While these technologies incur higher upfront investments, those notifications let fleets respond to potential problems as quickly as possible.

Quick, technology-driven responses have two primary benefits for supply chain resilience. First, they prevent accidents that may cause injuries or larger disruptions. Secondly, they minimize repair expenses and related downtime by addressing these issues while they’re still small and removing the need to check things manually.

Predict Future Maintenance Needs

IoT-based safety tracking opens the door to another, more powerful strategy — predictive maintenance. With enough vehicle operations data, machine learning algorithms can predict when signs point toward needing repair soon. Then, fleets can get alerts to schedule repairs before declining conditions may even be noticeable to humans.

Predictive maintenance enables even earlier and more effective fixes than thorough preventive maintenance. As a result, it can extend asset life spans by up to 40% and reduce downtime by up to 50%. On top of keeping employees and other drivers safe, those savings mean fewer supply chain disruptions and lower costs.

Conventional preventive maintenance is preferable to reactive methods, but it wastes more time than many organizations realize. Roughly 30% of all preventive repair activities don’t add any value. Vehicles don’t degrade along a consistent schedule, so schedule-based repairs are insufficient. Opting for data-driven, predictive alternatives eliminates these unnecessary steps.

Secure Fleet IoT Systems

As supply chains implement these technologies, they must consider the unique risks they may produce. Most notably, greater IoT adoption corresponds to broader attack surfaces. More connected devices mean more potential entry points for hackers, so cybersecurity is essential.

Bridging the gap between IT and operational technology like vehicles has many benefits. Unfortunately, it also means trucks and other equipment become vulnerable to data breaches. As a result, supply chains have become popular targets, with supply chain cyberattacks affecting millions of people annually.

Thorough cybersecurity measures are necessary to ensure proactive fleet safety tools don’t jeopardize safety in other areas. Segmenting networks to keep IoT devices separate from other endpoints and data is a crucial first step. Enterprises must also encrypt all IoT traffic, use strong access methods and monitor network traffic in real time with AI.

Fleet Maintenance Is Key to Supply Chain Resilience

Optimizing fleet maintenance can be a tricky undertaking, but it’s essential for modern supply chains. When fleets become more proactive about their repairs, they reduce traffic accidents and related safety issues. These improvements, in turn, make logistics processes more reliable, enabling larger-scale supply chain resilience efforts.

Businesses must capitalize on new technologies to enable more resilience through fleet safety measures. That means implementing devices like IoT and telematics systems, and learning how to secure them. Industry 4.0 initiatives require careful attention, but if companies can do that, they can transform their fleet operations for the better.

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Global Logistics, Global Trade Daily, Warehousing

The Future of Warehouse Safety: Harnessing Technology to Protect Workers in Automated Facilities 

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Warehouses can be hazardous, but they’re getting safer. Much of that improvement stems from new technologies, with automation leading the charge. 

Automated facilities are far safer than conventional operations in many ways. At the same time, robots introduce unique hazards that warehouses must contend with. In both cases, technological innovation is the answer to better safety.

Automation as a Safety Measure

Warehouse automation has historically trailed behind other heavy industries like manufacturing, but that’s starting to change. Over 70% of logistics businesses use some form of mobile robot today. This shift improves safety along two major lines — automating dangerous tasks and minimizing errors.

Automating Dangerous Tasks

Automation’s most significant safety advantage is that it removes workers from the most hazardous parts of the job. When human employees don’t need to carry the heaviest loads or reach the highest shelves, it has the same impact as if these hazards didn’t exist.

Automation can’t perform every job a human can, but the most dangerous work is often easily automated. Carrying heavy loads or picking items from high shelves are straightforward, predictable tasks — just the kind automation excels at.

Automated tasks don’t have to be dangerous to improve workplace safety. Overexertion accounts for 23% of all workplace injuries and often stems from repetitive motion. Warehouses that automate material-handling workflows minimize this motion, preventing one of the most common causes of injury.

Error Reduction

Automated warehouses are also safer because they minimize human error-related risks. Mistakes play a role in almost all workplace safety incidents, so companies that reduce errors will also reduce injuries.

Autonomous alternatives to manually operated machines make some of the biggest impacts in this area. For example, conventional forklifts pose severe threats because driver errors are likely, as humans are easily distracted. Robot forklifts, by contrast, don’t get preoccupied or bored, so they’re less likely to make errors that endanger nearby workers.

It’s also worth noting that automation reduces the workload in labor-strained warehouses. Workers can feel less stressed when there’s less to do, letting them focus on what they’re doing, further preventing dangerous errors.

Keeping Workers Safe From Robots

Of course, automation itself can introduce new workplace hazards. The answer to these risks is not to avoid automation but to implement new technologies that make it safer.

Reliable Navigation

One of the most important steps in improving robot-related safety is ensuring they can navigate reliably. Moving equipment like forklifts is responsible for many injuries and OSHA violations, and mobile robots pose several of the same risks. An automated guided vehicle (AGV) that can’t identify obstacles and pedestrians quickly and accurately could cause harmful collisions.

Cameras and machine vision software are improving, which makes mobile robots safer by default. Besides these improvements, warehouses can capitalize on the Internet of Things (IoT) to enable better navigation. Robots that communicate with real-time sensors throughout the facility can move through it more effectively.

Edge computing takes these benefits further, as it spreads complex compute tasks between nearby devices, enabling faster responses. 5G networks can also provide more bandwidth and higher speeds to support these processes.

Adaptable Cobots

Collaborative robots (cobots) are another important technology that makes automated warehouses safer. These robots are designed to work alongside humans instead of replacing them. As such, they’re less likely to run into workers or cause disruptions that may lead to injury.

Adaptability is a key feature here. Cobots can respond to real-time data, often through IoT connectivity. As a result, they can adjust their workflow as necessary as conditions change to prevent mistakes that may endanger workers or keep out of people’s way even when they don’t follow predictable paths.

Amazon has implemented cobots extensively to impressive results. One of its solutions, Sequoia, combines multiple robotic systems to organize and move inventory throughout the warehouse. Combining separate systems lets it adapt as needed, and the design emphasizes making things easier for human workers. As a result, recordable incident rates dropped by 15% between 2021 and 2022.

Artificial Intelligence

It’s impossible to talk about disruptive technologies and not mention artificial intelligence (AI). AI can improve robot safety in warehouses in several ways, and its potential will likely grow as this technology advances.

AI-guided robots are more adaptable than classical alternatives, making them safer. Machine learning models can identify and respond to hazards in a fraction of a second, making them ideal for guided mobile robots to prevent collisions. Similarly, AI can help robots interpret situations to determine the best course of action to remain productive and keep human co-workers safe.

AI can also analyze data from across a warehouse to identify where the most accidents happen. Some models can go further and suggest possible improvements, making it easier to effectively reduce workplace injuries over time.

New Tech Is Transforming Warehouse Safety

Technology is one of warehouses’ greatest assets when addressing worker safety. The logistics and supply chain industries will become safer as more facilities embrace automation and complementary technologies.

Tech adoption isn’t a panacea to all workplace safety issues, but it offers substantial improvements. Warehouse managers must integrate these solutions into existing safety programs and combine them with other steps to become as safe as possible.

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Global Logistics, Global Trade Daily, Rail

What Can We Learn From the Recent Surge in Railway Accidents?

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The past few years have seen a worrying surge in railway accidents, particularly those involving hazardous materials. By analyzing the leading causes behind these accidents, transportation and logistics leaders can take action to improve rail safety. How serious is the increase in rail transportation accidents, and what are the main takeaways?

You can also Read 8 Reasons for Trucking Accidents & How to Avoid Them

Are Railway Accidents Really Increasing?

The past several years have seen headlines about several severe railway accidents, particularly train derailments. For instance, in 2023, 50 cars were derailed in East Palestine, Ohio, 20 of which contained hazardous materials. The derailment resulted in soil, water and air pollution, forcing over 1,000 people to evacuate the area. While train derailments are fairly common, incidents on this scale are not. However, they seem to be a growing risk.

Data from the U.S. Bureau of Transportation Statistics shows that train accidents have decreased significantly over the past 20 years. There were less than 2,000 total rail accidents in 2022, down from over 3,000 per year in 2004.

Injuries and fatalities due to rail accidents have decreased, as well. In 2017, there were 8,892 total reported injuries and 817 deaths. In 2022, there were 6,252 injuries and 954 deaths. However, it is worth noting that more injuries were reported in 2022 than in 2021 or 2020. 2022 had the highest rail accident injury rate since 2019.

There are a few important takeaways from this data. Overall, railway accidents are generally less common than 10 or 20 years ago. Recent data shows that accidents and injuries may be on the rise again, though. For instance, there were more rail accident deaths in 2022 than in 2017.

This trend applies to train derailments, as well. Derailments have fallen sharply over the past few decades. There were 2,639 derailments in 2004, while there were only 1,259 in 2022. However, there were more derailments in 2022 than in 2021 or 2020. Derailments make up 71% of all train accidents.

The Role of Infrastructure, Maintenance and Workers

The increase in railway accidents is certainly concerning, but analyzing the cause of this trend may help reverse it. Rail accidents are on the rise due to a combination of factors, mainly infrastructure, maintenance and worker-related issues.

Infrastructure

One of the leading underlying causes of rail accidents today is aging infrastructure. Derailments are often the result of malfunctions or mechanical failures with the tracks or roadbeds, the structures that form the base of the tracks. Like any infrastructure, railways can degrade over time and lose structural integrity, especially if they aren’t getting adequate maintenance.

The issue of train length is also a factor here. Freight train length has steadily increased over recent years, with some trains reaching nearly 3 miles long. The longer a train gets, the harder it becomes to control. Poor control can have serious consequences for safety, operations and rail infrastructure since longer trains put more physical strain on the tracks.

The takeaway here is clear — railway infrastructure needs more attention. In some cases, this simply means better track maintenance. However, in other areas, it may require large-scale updates to aging, unsafe infrastructure.

Updates may be more critical in the states with the most rail traffic and the most rail accidents. As of 2022, Illinois and Texas are nearly tied for most derailments, both with over 13,000 on record since 1975. The two second-place states, Pennsylvania and California, have roughly half that many recorded derailments. These high accident rates can point analysts toward the states needing rail infrastructure updates most.

Maintenance

The way railways and trains are cared for has a major impact on safety. If rail operators cut corners or fail to provide enough time for maintenance, the likelihood of an accident increases.

Countless details go into ensuring rail safety. Something as simple as a malfunctioning bearing can trigger a serious accident. The high accident rates in the rail industry today indicate that rail companies need to allow more time for their employees to inspect and repair trains and railways adequately.

Maintenance is especially critical in hazardous materials transport. Sadly, many serious rail accidents in recent years have involved hazardous materials, including the derailment in East Palestine, Ohio, and an explosion at a rail yard in Omaha, Nebraska.

Hazardous materials already have strict regulations for storage and transportation safety. For instance, the U.S. Department of Transportation (DOT) requires containers for hazardous materials to meet safety and design regulations to minimize the risk of a spill. Considering the extreme damage from train derailments involving hazardous materials, rail companies may need to adopt even higher standards for their freight cars.

Technology may also help address maintenance problems. Automation can help cover employment gaps and reduce the likelihood of mechanical issues going unnoticed. Rail companies could use technologies like sensors connected to the Internet of Things (IoT) and predictive maintenance equipment to improve train car monitoring and prevent accidents. 

Rail Workers

Human error is one of the leading causes behind rail accidents, but that may not entirely be rail workers’ fault. The number of people working in rail transportation in the U.S. fell 73% between 1980 and 2020, from 539,700 workers to 144,500. Between November 2018 and December 2020, the industry lost over 40,000 jobs.

At the same time, rail traffic has remained relatively steady. Since significantly fewer people work in rail yards and on trains than there used to be, smaller teams have to support a workload designed for far more people.

This shift means it’s much more difficult for rail employees to keep up with the demands of their jobs. The increased stress is a major cause of high workplace accident and injury rates. Stress also means rail employees are more likely to make mistakes on the job, contributing to the increasing rates of rail accidents.

Understaffing is a particularly big issue in maintenance. Many rail accidents are entirely preventable but happen anyway because a mechanical failure goes unnoticed. This fact indicates that rail employees may need more time to conduct thorough inspections. Allowing more time and resources could prevent hundreds of accidents.

Improving Railway Safety

The past few years have seen a sharp increase in railway accidents, particularly those involving hazardous materials. A few main factors are driving the uptick in rail accidents, including poor infrastructure, inadequate maintenance and staffing cuts. By addressing the leading causes behind recent rail accidents, transportation and logistics leaders can take action to improve rail safety for everyone.

reverse logistics
Global Logistics, Global Trade Daily

Are You Maximizing the Value of Your Reverse Logistics Processes?

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Businesses should optimize their reverse logistics processes to increase the value of their goods. Returns often lead to significant financial losses, but they don’t have to. Understanding the challenges and solutions enables companies to build efficient strategies that lead to happier customers and save money. 

Common Challenges in Reverse Logistics

A few common challenges can inhibit profitability in reverse logistics processes. The National Retail Federation estimates that the average retailer spends $165 million on returns each year. What is causing these high costs? 

One challenge many retailers, suppliers and 3PLs face is inefficiency. Returns get more expensive the longer they take to go through the reverse logistics process. Plus, the longer a returned item is on the road, the more likely it is to get damaged and become ineligible for resale. 

Unfortunately, fraud is another reason retailers lose money in reverse logistics. Companies that lack secure, specific or robust return policies are more likely to fall victim to fraud. This includes situations like a customer lying about the quality of their returned item or sending a return package with nothing inside. 

Warehousing can also inflate reverse logistics costs. Returns require a large amount of warehouse space, which is at a premium today. If return locations are spread out, retailers can also experience high transportation costs. Excessive travel time also slows processing, leading to higher expenses and a poor customer experience. 

Strategies to Maximize the Value of Reverse Logistics

Reverse logistics might include significant challenges, but businesses can implement plenty of solutions to resolve those issues. These strategies focus on building smarter, more efficient processes that improve the customer experience, reduce waste and save money. 

Include Return Labels in All Orders

Including return labels by default is one of the easiest ways to increase the value of reverse logistics. Retailers and suppliers can use pay-on-use shipping labels to drastically reduce the time returns take. 

Customers who want to return an item don’t need to contact customer service or ask for a label to be mailed to them. They can reuse the original packaging, stick the return label on the box and send the item back. 

This process reduces customer service costs and return times. Return locations are vital for ensuring this strategy is successful. Use a widely available shipping partner to make it easy for people to find a place to drop off their package, such as the post office. 

Expand Monitoring and Visibility

Poor visibility in the reverse logistics process increases the likelihood of expensive inefficiencies going unnoticed. It’s crucial to track and utilize logistics data as much as possible, such as shipping times, return frequency and customer experience data. 

All this information is invaluable for improving reverse logistics. For example, shipping data can indicate areas where a retailer might need more return locations or warehouses. Continuously monitoring all available data is also vital for tracking the progress of any changes to ensure successful optimization and a good ROI. 

Evaluate Common Reasons for Returns

Return surveys are a game changer in reverse logistics. The motivations behind returns can tell retailers and suppliers a lot about their customers’ buying habits, preferences and experiences. 

For instance, customers returning a specific item significantly more than most other merchandise could indicate a root issue the retailer can resolve. Research shows that 75% of returns are clothing, shoes or accessories, all of which suffer from a common challenge: sizing. People are more likely to return items with consistently inaccurate size measurements. Tracking the reasons for returns helps retailers identify and resolve issues like this. 

Of course, returns are often due to buyer behaviors rather than an issue with the products themselves. Many shoppers purchase multiple sizes of the same item, intending to return all but one. Allowing customers to do this improves the customer experience, but it can get expensive for retailers. Therefore, it’s essential to streamline the return process as much as possible to ensure good items don’t go to waste. 

Create a Returned Goods Analysis System

Returned goods often end up in landfills, even if they are in new condition. This results in significant financial losses for retailers and suppliers. An efficient evaluation system can prevent items from going to waste and allow retailers to maximize the value of their products. 

For example, when a customer sends in a return, include a paper or digital survey asking them about the condition of their item. Anything marked as “good,” “new” or “unused” can get sorted out for efficient resale screening. Retailers can coordinate with logistics partners to organize physical evaluations at return centers or warehouses. 

Collaborate With Suppliers and 3PLs

Maximizing the value of reverse logistics requires excellent communication with supply chain partners. Coordinating with suppliers and 3PLs enables retailers to ensure they leverage every opportunity for optimization. 

For instance, a shipping partner might have easy access to valuable returns data. Good communication allows retailers to use this information and save both parties money. Collaborating with supply chain partners also simplifies implementing monitoring and optimization strategies. 

There are often situations where working with suppliers can resolve issues at the root of frequent returns. For example, customers might return a jacket because the sizing is inaccurate. The retailer can work with their supplier to design a more suitable sizing system that would improve satisfaction, reduce return rates, increase profitability and decrease reverse logistics traffic. 

Maximizing Value in Every Stage of Logistics

The reverse logistics process is often overlooked in favor of the retailer-to-customer journey. However, it’s full of opportunities for optimization and cost savings. Retailers, suppliers and 3PLs can use monitoring, data analytics and supply chain collaboration to build efficient processes for returns. As a result, they can improve the customer experience, reduce waste and increase profits.

Author Bio

Ellie is a freelance writer passionate about keeping up with the latest innovations and advancements in tech and science and covering how they’re impacting the world we live and work in. She’s also the associate editor of Revolutionized.com.