From Our Print Edition

The work of managing grocery cold chains is never done with more T’s to cross and I’s to dot than in any other area of food logistics. With a new year approaching, grocers have an extended list of priorities, all vital to safeguarding food supplies and moving them quickly from point to point within the cold chain before reaching their final destination on the tables of households across America.

An abridged list of challenges and industry answers to them that could impact cold chain operations includes geopolitical developments, labor, automation, real-time data analysis, artificial intelligence (AI) and machine learning, supply chain digitization, SKU rationalization, telematic tracking, capital expenditures, climate change, sustainability, governmental regulations, and changing consumer behavior.

CHALLENGE 2025

Industry experts say that grocers should not sleep on the labor negotiations taking place between the International Longshoremen’s Association (ILA) and port employers represented by the United States Maritime Alliance (USMX). The parties face an upcoming deadline to reach an agreement on outstanding issues related to a new master contract.

A negotiation breakdown and an ILA return to the picket lines could have direct and indirect consequences for frozen and refrigerated brands and their grocery partners. While most of the U.S. food supply is domestically sourced, about 15% is imported, along with elements needed for packaging.

John Gaudet

“January 15 is a key date to keep an eye on with the East Coast port labor negotiations. Yes, they agreed to the labor wage increase back in October; however, we are still keeping an eye on the negotiations about automation. I don’t feel like we are out of the woods yet,” says John Gaudet, vp of business development, RLS Logistics, Glassboro, N.J.

Gaudet says a breakdown in the talks could create a major disruption in light of the reality that many importers are currently “racing to get goods landed before the new administration is poised to increase tariffs on imports.” The current activity, he says, could have a short-term effect on available warehouse space. “Retailers and stakeholders should pay attention to warehousing capacity to ensure they have a home for their imports,” Gaudet adds.

Another potential consequence of tariffs, should they have the desired effect of stimulating domestic production, is that there will be greater demand for trucks and truckers. This scenario will lead to higher costs to procure both.

The key to success, no matter the outcome of the port negotiations or implementation of tariffs, is partnerships forged with cold chain stakeholders.

“It is important for retailers and manufacturers to forge strong partnerships with their providers. Many transportation companies are still sore from the sting of the poor freight market these past few years and will no doubt take advantage of a more bullish market. Providers and their customers should work together to forge strong partnerships to take these peaks and valleys out of the supply chain,” Gaudet advises.

Vikram Murthi

Vikram Murthi, global lead for digital knowledge academy and digital partner enablement at o9 Solutions in Dallas, says that cold chain leaders have a lot on their plates heading into the new year.

“This includes maintaining the integrity of perishable goods through every stage of the cold chain and grappling with growing pressure to reduce environmental impact and make their cold chains more sustainable,” says Murthi. “It also means handling the vulnerabilities caused by events like extreme weather, geopolitical tensions, and port strikes, as well as managing the evolving regulations around food safety, emissions, and sustainability that will require cold chain operators to stay agile and make significant investments to maintain compliance.”

DATA DELIVERS

Murthi advocates for cold chain stakeholders to make strategic, data-driven investments to improve performance in critical areas. He believes that making the right investments now will position companies to outperform the market in the years ahead.

Ben Wynkoop

“Some opportunities include investing in technologies like real-time temperature monitoring (enabled by IoT), predictive analytics, and autonomous vehicles. Improving the energy efficiency of refrigeration units, transitioning to renewable power sources, and optimizing transportation routes will be critical to lowering the carbon footprint of cold chain operations. Additionally, enhancing supply chain visibility, diversifying suppliers, and building redundancy will be necessary to mitigate future disruptions,” he says.

Ben Wynkoop, global industry strategist for grocery and convenience at Blue Yonder in Scottsdale, Ariz., says the best way to optimize the supply chain and reduce costs is for retailers and suppliers to collaborate on forecasting demand.

“There is immense value in both modern AI-driven forecasting and replenishment solutions, as well as supply chain network capabilities that connect suppliers/retailers/carriers to be able to all share data in real-time to optimize their supply chains across companies,” says Wynkoop. “We see a near future where grocers, suppliers, and carriers are all on a single supply chain network where they have real-time visibility up and down the supply chain from manufacturer to store.”

FLEET FIXES

Cyndi Brandt

Cyndi Brandt, vp of Fleet Solutions at Descartes, Waterloo, Canada, says the grocery industry is facing significant challenges heading into the new year, including fluctuating energy costs and data security.

Brandt says that rising electricity costs for storage “are mitigating any potential savings” despite diesel prices having dipped of late. “Geopolitical uncertainty,” she cautions, “could continue to cause prices to fluctuate, as well as changes in U.S. policies.”

Brandt sees opportunities for grocers to improve their cold chain performance by implementing execution technology, route planning, and optimization.

“Having the ability to monitor, in real-time, route exceptions that may impact temperature allows for companies to be proactive. This execution technology oftentimes also integrates with temperature monitoring so that you can monitor the route status and temperature of shipments on that route at the same time,” says Brandt.

‘Having the ability to monitor, in real-time, route exceptions that may impact temperature allows for companies to be proactive.’

“Optimizing routes creates density and reduces the distance traveled, thereby lowering the daily fuel requirements for both vehicles and refrigeration units,” she concludes.

Mike Medeiros

Mike Medeiros, senior vp operations, dedicated contract carriage enterprise lead, Penske Logistics, Reading, Pa., says that grocers often find themselves balancing the need to meet performance requirements while keeping costs contained.

“In a down freight market, there is no shortage of low-cost capacity, but there is a risk to service that needs to be weighed,” he explains. “The ability for retailers to effectively leverage available technologies to enhance efficiency, maintain product integrity, and optimize routing, while ultimately ensuring efficient, reliable delivery of temperature sensitive products, is a key to success in this competitive space.”

The key to striking the necessary balance is for grocers and their partners to “effectively leverage technology to maintain end-to-end temperature control, drive supply chain resilience in an uncertain environment and to optimize routing,” says Medeiros.