Cold Chain Management

The cold chain can be grouped into three main categories: temperature-controlled storage, logistics and transport, and refrigerated packaging methods. We are going to be focusing on the logistics software component specifically within transportation management systems (TMS), warehouse management systems (WMS), and temperature monitoring and control systems that make up cold chain management. The pandemic has shown recent weaknesses in the cold chain and the laggard category in providing a more streamlined and efficient supply chain for perishable goods. Given the evolving needs and complexities around real-time monitoring of location, temperature and condition, and predictive analytics and data visibility, this is an exciting time to further explore the investment opportunities related to cold chain management.

What is Cold Chain Management?

Cold chain management involves the technology and transportation of “temperature-controlled” or “temperature-sensitive” perishable goods that require controlled and monitored temperatures to maintain their quality and safety. Some examples of these goods include fresh produce, seafood, meats, flowers, pharmaceuticals, raw materials, and chemicals. This involves the use of specialized equipment, facilities, and technology to maintain the appropriate temperature for these goods throughout the supply chain to consumers.

How Cold Chain Logistics Differs from Traditional Supply Chain

The difference between transporting dry goods or other non-perishables versus perishable goods is that outside of being time-sensitive, it is also temperature-sensitive (and other conditions), which requires continuous monitoring. Whereas a traditional product supply chain only needs to rely on primarily transportation management systems (TMS) and warehouse management systems (WMS), cold chain requires the added complexities of temperature monitoring and control systems.

Tracking

Making sure that perishable goods being delivered are properly tracked is one of the essential parts of cold chain management. A variety of technology can be used in order to track freight across the ground, ocean, and air.

If the product is being delivered by ground or air freight using reefers (a refrigerated container), typically location data powered by GSM/GPS is sent to the carrier’s transportation management system (TMS). Many carriers in turn are able to provide their customers with access to tracking information. For maritime shipping, ocean carriers can use a variety of tracking methods such as satellite location, radar, and automated identification systems (AIS). For example, MarineTraffic, a global sea data provider uses AIS in order to show real-time positioning. Carriers are also able to use a variety of other methods such as radio-frequency identification (RFID) and Bluetooth low energy (BLE) tags. These can be scanned at various checkpoints in the shipping process to track their location and movement.

Monitoring

On top of the tracking that is needed, cold chain management also requires monitoring devices, also known as data loggers or multi-sensor temperature data loggers. These are wireless sensors that monitor temperature, humidity, air pressure, airflow, air quality, light, and even shock/movement. Data loggers are commonly placed inside reefers, refrigeration units, or cold rooms for continuous monitoring. The sensors leverage Internet of Things (IoT) technology to provide real-time data by transmitting records to a portable gateway that is stored in the cloud to be able to process and retrieve the data when needed for management systems. All of this provides a temperature monitoring and control system that is alongside warehouse management systems and transportation management systems.

Problem

The Failure Rate in Pharmaceutical Delivery

The Failure Rate in the Perishable Food Industry

Market

Why Now?

The three main reasons to consider investing in cold chain management solutions include:

Changes in the Pharmaceutical Sector

Changes in Clinical Trials

Growth in Perishable Foods

Players in the Space

Grip — Perishable Shipping Reimagined

Founded: 2022

Funding: Pre-seed round of $2M in Nov. 2022

Key Investors: Soma Capital, Western Technology Investment

Tive — Develops a hardware and software platform designed to track the conditions of shipments.

Founded: 2015

Funding: $54M Series B in April 2022; $81.9M total raised

Key Investors: AXA Venture Partners, Two Sigma Ventures, RRE Ventures, Accomplice, Hyperplane Venture Capital, NextView Ventures

Transship — Automated freight forwarding for international shipments of perishable goods. Using API, document sharing and real time tracking tech.

Founded: 2020

Funding: Pre-seed $620k, Techstars Farm to Fork class of 2022

Key Investors: Techstars

Bluicity —Digitalizing food and pharmaceutical logistics chains

Founded: 2020

Funding: N/A

Key Investors: N/A

Conclusion

Improved cold chain management in providing tracking and monitoring solutions will prove to be a significant value add for shippers and logistics service providers by providing continuous real-time data on perishable goods. The pandemic accelerated what we thought was possible with shipping in the world of pharmaceuticals and has paved the way for the future of biopharma and clinical trials. The food and beverage industry is one that will continue to grow as new products are introduced and globalized trade continues to grow in search of new and exciting foods. These are two major areas where cold chain management directly impacts if a good is useable or consumable, but this extends beyond to other goods that can benefit from more accurate and controlled management. The data on the problems with the failure rate of delivery shows the fragmented and fragile market of current supply chain management software with room for opportunity in having more precise technology within cold chain management.

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