Cold-chain storage and distribution entail many more complexities than ambient warehousing. Ray DeMelfi, senior vice president strategic services with Hy-Tek Intralogistics, explains what sets successful cold-chain operations apart.
It starts with cost: Cold-chain warehousing is simply more expensive than ambient operations. It costs more to configure, build and achieve a “steady-state form,” DeMelfi says. And, because the initiative is generally pricier, “every square inch of the facility needs to be extremely well-utilized.”
Often a cold-chain facility will have to sacrifice certain “luxuries,” such as the ability to stage and queue product in designated areas, in order to make the best use of limited space. Also of concern is the design stage, where a freezer operation needs to allow for the segmentation of temperature zones, while simultaneously enabling a harmonized flow of product. Finally, there’s the need to deploy technology that’s “hardened” against cold environments.
Automation is a must in many cold-chain operations today, but managers must avoid the temptation to embrace technology too hastily. “The key is to step back and analyze it to get it right,” DeMelfi says. “Don’t rush it — every dollar and square foot counts. Develop a business plan, then find a solution that best fits it. That will set you up for success long-term.”
Designers need to address the constraints and problems of the moment. But they also need to be anticipating situations they might encounter five years down the road, “and build a solution set that’s going to solve all of it.”
Look for “hidden capacity” in existing cold-chain operations, DeMelfi advises. It might be a matter of rebalancing order profiles between one facility that’s running at capacity, and another that has room for additional product. By focusing on opportunities for increasing density in the warehouse, operators in some cases can double utilization, he says.
