Straight Market

September 27, 2017 at 5:27 pm

Australia’s Logistics Industry Needs Cold-Chain Investments

perishable products delivered fresh on a food stall Australia’s logistics industry will have to invest in cold-chain technology to keep the country’s competitiveness in food exports, amid a growing demand from around the world, according to FEMC Australia.

A representative of the logistics technology manufacturer said that developing cold-chain solutions has become important, particularly in keeping the freshness of commodities during transportation.

Sealing Freshness

Exports of are arguably the toughest endeavour for the supply chain industry. Aside from accurate delivery timelines and rigid customs regulations, it also requires various technologies to prevent spoilage and maintain freshness with little to no error.

Cold-chain technology can complement existing tools to secure cargo, including polyester strap products. The FEMC Australia representative noted that cold-chain investments will be more relevant when exporting food to countries with underdeveloped cold chains.

Australian logistics companies should take advantage of the country’s robust cold chain network to venture into other markets. Exporters, however, should carefully review their options when planning to do so, especially in markets without developed cold-chain systems, since safe delivery will be a challenge.

E-Commerce Chain

Aside from a need to invest in cold-chain technology, the rise of e-commerce activity has led the logistics sector to provide ‘slick and smart supply chains’, according to industry expert Ingilby Dickson. Since online channels have allowed businesses to place bulk orders, the industry has placed greater focus on planning to improve clients’ experience.

Dickson cited cost-to-serve understanding and technology as an example, which allows businesses to estimate the cost of serving a client.

Investments in technology are no longer just a means to innovate services within the supply chain. The logistics industry has recognised them as a necessity to keep up with rising demand and changing trends. In Australia, the pace of investment in new systems will determine whether or not it maintains its global competitiveness.