What are the Challenges of 3PL Cold Storage?

3PL cold storage deals with numerous challenges such as power consumption, product traceability, and cold storage solution.

FREMONT, CA: Third-party logistics (3PL) cold storage warehouses face a number of unique challenges. Cold storage operations are complex and often have higher operating costs than other industries. In order to maintain profitability, the company must plan and execute its overall business operations strategically. Utility costs, labor costs, and government regulations for handling perishable food products impact profit margins and introduce complexity into business operations.

3PL cold storage faces the following challenges:

Consumption of power: Cold storage warehouses consume enormous amounts of electricity since they operate 24 hours a day. The total power consumption of a warehouse increases as its square footage increases. Keeping power consumption costs as low as possible is the biggest challenge for cold storage warehouse providers due to the constantly increasing cost of energy.

By investing in energy efficiency improvement programs and the latest refrigeration temperature control technology, power consumption costs can be kept low in the long run.

In addition to powering the warehouse, 3PL cold storage facilities incur additional fuel costs during transportation. Fuel consumption can be reduced through efficient logistics and transportation planning.

Solutions for Cold Storage: Warehouse operations rely heavily on barcodes and labels. Warehouse workers use them to identify bins, pallets, and products correctly. 

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