Perishable goods make up for well over 70% of all freight shipped across the United States.
However, it is also one of the most sensitive types of freight movement. Many perishable food items, much like pharmaceuticals, need to stay within a very specific temperature range. More often than not, this requires specialized equipment and a knowledgeable team.
The safe movement of perishable items is a constant challenge that most shippers deal with at some point. With the increasing consumer demand for enhanced transparency, traceability, and freshness of consumables, these issues become that much more complex and frustrating for carriers and retailers alike.
In fact, when it comes to supply chain challenges, the food and beverage industry has more than most dry goods shippers face.
In this blog post, we'll explore the top 5 challenges associated with perishable freight and discuss how many of them can be mitigated.
Inventory Management
A leading source of frustration for food and beverage companies is clearing inventory levels before they spoil or lose the freshness that consumers demand. More often than not, this is caused by poor supply chain management efforts.
In order to optimize food and beverage inventory, manufacturers, retailers, and distributors must work together to monitor inventory levels at the point of sale. More so, they must track it all concisely across fulfillment centers and warehouses. All while efficiently rotating inventory through the supply chain. Failure to do so results in reduced sales, customer satisfaction, and eventually decreased profits.
There are six links that make up the modern food and beverage supply chain:
- Raw material sourcing
- Manufacturing or production of food and beverage products
- Packaging and process
- Storage of finished products
- Distribution to wholesalers
- Distribution to the end consumer
A lapse in any of these links can cause a significant disruption of service. This is what we'll talk about today. In the information below, we will outline the top 5 food and beverage supply challenges that exist for shippers, carriers, and all partners in the food supply chain.
Increasing Regulatory Procedures
Across the globe, government agencies and consumer groups work together daily to explore new ways of improving the quality and safety of food and beverage products that provide sustenance and satisfy that sweet tooth or craving. In some cases, these ideas are morphed into regulations that help to monitor the manufacturing, storage, and movement of products.
The key to dealing with any regulatory-specific objective is ensuring the lines of communication are clear between supply chain partners. With today's technology, improvements on the software-side-of-things and blockchain technology can improve transparency and provide a platform that is secure and accessible for all parties.
Improved Forecasting
Along with inventory control, inaccurate forecasting continues to plague the industry.
But, when forecasting is consistently performed with a high level of accuracy, a few things happen:
- Manufacturing stays consistent and efficient
- Distribution is optimized
- Purchasing is streamlined
- Customers receive the freshest possible products.
Like the growing regulatory problems, technology plays a vital role in gaining accurate insights, which improves the ability to forecast more accurately.
Quality Control & Threat of Product Recalls
These two are one in the same. In most instances, a product recall is the direct result of a lapse in quality control standards or procedures. Whether it's neglecting proper temperature controlled shipping standards for perishable products throughout transit, or a failure in the cleaning procedures at a manufacturing facility, quality control is vital to the efficient and safe manufacturing of all food and beverage products.
Items Outside of Control of Individual Partners
While partners strive to work together, sometimes mistakes just happen.
This is usually in large part to things that occur outside of the control of other food supply chain partners.
Specifically, there are a few that tend to impact the food and beverage industry more than other commodities:
- Improper storage of food and beverage products at warehouses or retail facilities
- Delays in freight movement due to poor weather, traffic, or other acts of God.
- Unethical actions of individual employees
Final Thoughts
Issues like the ones described above can destroy a food and beverage brand. And while these problems are quite difficult to navigate, there are many ways supply chain partners can reduce the potential of them ever occurring.
However, one of the best ways to reduce these challenges is to work with a Modern 4PL partner like Redwood that can orchestrate your entire supply chain.
Whether you're a manufacturer, wholesaler, retailer, or carrier—how do you ensure your perishable freight arrives fresh and on time? Redwood can help you find the answer.
Our team of logistics professionals are able to locate and repair issues with your supply chain. More importantly, we give you a blueprint to follow and the tools to navigate even the roughest of future situations.
If you have questions about how Redwood can help you accommodate perishable freight better, contact our team today.