The supply chain is one of the most critical pillars of the perishable foods sector.
For companies in this sector, such as animal protein exporters and food factories, efficient logistics are essential to maintaining the quality of the products, avoiding waste and controlling costs.
In this article, we’ll explain the principal costs of logistics, how they impact the supply chain and what strategies can be applied to optimize them.
Principal logistics costs and impacts on the supply chain
Logistic costs go far beyond shipping. They involve the whole structure needed for perishable foods to get to their destination, with safety and within the conditions required by the legislation and by the market. Below we list the principal ones:
Purchases
The purchasing stage is critical in controlling costs, as it involves negotiation with suppliers, forecasting demand and the management of contracts. Badly planned purchasing can generate either an excess or lack of stocks, with both having significant financial impacts.
Warehousing and stocks
Refrigerated or frozen warehousing requires specialized infrastructure, with efficient cold rooms, temperature control and stock management. Storing perishable products in unsuitable conditions can generate losses and compromise quality.
More than just a place to store goods, a modern logistics center organizes, connects and speeds up the flows, with full trackability and constant maintenance of the cold chain.
Warehouse Management Systems (WMS) and Transportation Management Systems (TMS) offer visibility and precision, enabling waste to be avoided and customer service to be improved.
Transport
Transport logistics at controlled temperatures demands specialized vehicles, efficient routes and tracking in real time. Emergent Cold LatAm offers transport solutions adapted to the needs of the sector.
With integrated systems that monitor vehicles, temperature and performance in real time, it is possible to avoid losses, reduce fuel consumption and maintain safety of the products throughout the whole journey.
Packaging
Packaging is an essential part of the logistics, which besides protecting the product, influences the conservation and affects the occupation of space in both transport and warehousing. Unsuitable packaging choices increase the losses and costs.
Taxes
Fiscal and regulatory costs also impact the logistics directly, and inefficient tax management can result in undue payments or in not taking advantage of credits and incentives.
Technologies
The use of technologies such as automation, tracking and management systems is an investment with return in the medium term. Automation in logistics enables greater control, fewer errors and better operational efficiency.
Resources such as AGVs (automatically guided vehicles), RFID, barcode readers, movable shelving and automated warehousing systems are examples of how innovation can improve precision, reduce failures and improve productivity.
Summarizing: how efficient management can help reduce logistics costs
Efficient logistics management reduces costs by guaranteeing predictability, integration and control at every stage of the operation. When organization and technology are combined, it is possible to foresee demand, eliminate waste and improve the performance of the supply chain.
On the other hand, those operating without a structured logistics center face challenges such as:
- Lack of temperature control;
- Stock management failure;
- Manual and non-integrated processes;
- Disorganized transport;
- Low operational visibility.
Trends in logistics management for reduction of costs
Among the principal trends that help reduce logistics costs are:
- Preventive equipment maintenance: avoiding non-scheduled halts and losses of load;
- Digitalization of processes: reducing bureaucracy and improving agility;
- Integration of systems: enabling a view of the chain in real time;
- Outsourcing logistics: operating with specialized companies such as Emergent Cold LatAm guarantees efficiency and modern infrastructure without companies having to make their own investment;
- Artificial Intelligence and automation: helps forecast demand, correct failures before they impact the operation and raise productivity.
Find out more about our logistics solutions for a more agile and efficient supply chain
Emergent Cold LatAm is the largest provider of temperature-controlled food logistics solutions in Latin America.
We offer solutions that include from the refrigerated warehousing through to the transport and distribution of perishable products, with safety, efficiency and trackability.
We have more than 80 warehouses strategically located in 11 countries, close to urban centers and ports, guaranteeing an agile connection with regional and global markets. Highlighted among our differentials are:
- Infrastructure for frozen, refrigerated and dry foods, with different temperature ranges;Customized solutions, such as picking, packaging, labeling and customs support;
- Leading edge technology with trackability in real time, thermal control and smart stock management;
- National and international transport with a modern fleet and temperature monitoring;
- Sustainability in the operations, with projects certified for energy efficiency and conscious use of resources.
Conclusion
Reducing logistics costs is a constant challenge, but this can be achieved with planning, technology and qualified partnerships. By understanding the principal factors that make up the logistics costs and applying good management practices, your company gains competitivity and ensures the quality of the products.
Emergent Cold LatAm is ready to be your partner in this process. Find out about our solutions and see how we can transform the logistics of your business!
