It can be a nightmare to find out that a consignee has received a heat-spoiled shipment. However, such a scenario is a real possibility in a tropical country like the Philippines. If your business deals with food products, pharmaceuticals, and other perishables which are sensitive to temperature, a cold storage warehouse can prove invaluable. Here’s an overview of cold chain warehousing, including its basics and its current state in the Philippines.
Reasons Behind the Need for Cold Chain Warehousing in the Philippines
Over the last few years, cold storage facilities in the Philippines have been on the rise for a number of reasons. Consumer habits are shifting from wet markets to supermarkets, e-commerce sites, and online grocery shopping. More concerns over product quality and safety have also surfaced. In addition, burger patties and other kinds of frozen food are also in demand due to increasingly busy Filipino lifestyles. Workers in the country’s booming BPO industry, in particular, prefer easy-to-prepare meals.
How Cold Chain Warehousing Works
Cold chain warehousing revolves around the refrigerated storage of perishables. This prevents products from degrading early and discourages insects from infesting goods. By keeping spoilage and wastage to a minimum, cold storage warehouses ultimately help stabilize market prices. Here are a few of its common applications:
- Stable Distribution. Manufacturers may place their products in a cold storage warehouse before shipping them out. They can then distribute products evenly, whether on the basis of either time or demand.
- Reliable Third-Party Storage. Companies may outsource their cold chain needs to 3PLs to the same effect.
- Lean Inventory. End users can store products in a cold storage warehouse if they’ve received goods that aren’t needed at the moment. They can plan out purchases, account for what they have left, and avoid overstocking.
To get products safely between facilities, companies may use various temperature-controlled vehicles and equipment. One key example is the reefer, a truck or shipping container with an onboard refrigeration unit. The presence of a cooling apparatus sets the reefer truck apart from ventilated or insulated vehicles. There are also reefer ships for temperature-sensitive ocean freight.
The State of Cold Chain Warehousing in the Philippines
At present, the Philippine supply chain has a lot of room for improvement when it comes to cold chain warehousing. Inadequate storage facilities and a problematic power grid are just two of the country’s infrastructure issues. Trucks often lack equipment to protect fresh and frozen products during local last-mile deliveries. Several local food production centers sit in remote locations as well. Furthermore, increased demands during holiday months place more stress on the industry.
On the other hand, the government has been working on updating local infrastructure, such as western, eastern, and central nautical highways for smoother transport. These highways include major roads and ferry routes. Demands for pharmaceutical products and frozen food also continue to rise, so you can expect more companies to bank on cold chain logistics in the years to come. You may want to invest in a cold storage warehouse yourself. Why not begin by consulting industry experts in the Philippines?
Worklink Services, Inc. (WSI) has been providing custom-tailored freight forwarding and logistics solutions to its clients since 1999. Not only has this track record earned WSI a spot among reliable B2B courier companies in the country, but it makes us a trustworthy resource on warehousing in the Philippines. Contact us today to learn how we can help address your company’s warehousing needs.
Visit our blog regularly for more updates and insights on the Philippine supply chain.