How to Improve Operational Efficiency In Cold chain Industry

For a cold chain logistics company, the world has completely changed, especially in last decade. Whether it is complex fleet management, difficult cost structures, or pressures of keeping the overhead low, daily operations are becoming tougher by the day. So, Cold Chain transportation has evolved significantly from dry-ice packaging to refrigerated trucks. And let’s not forget, these problems are not relevant only to ‘bigger’ businesses. With strict temperature requirements, a relative increase in quality standards and ever-increasing regulations, the daily operations are difficult even for smaller businesses. Therefore, the primary task at hand is to responsibly oversee a quality management system that ensures timely and correct delivery of products. With rising everyday costs, addressing the capacity, resource and quality constraints is tough. You need all the help you can get.

Industry Classification

Let’s face it, clients require the raw materials and the finished goods to be transported under strict temperature-controlled conditions. They’re looking for a minimum loss of quality, texture while maintaining the overall utility of the products. For a cold chain logistics company, you can classify their customers into 3 broad categories:

• 1. Food industry – Suppliers, exporters, and restaurants want only the safest foods to reach to the ultimate consumers. Example – Meat & Poultry, Fresh Fruits, FMCG & Dairy.
• 2. General industrial products – From electronic equipment to chemical products, there are millions of temperature sensitive materials that need to be carried from one location to another. Example – Paints, synthetic temperature sensitive products.
• 3. Life sciences – It’s important to monitor the time and temperature of biological and pharmaceutical products to ensure the health-based services are not affected because of transportation. Example – Medicines and other temperature-controlled devices.

In addition, based on active requirement and product nature the products are further classified based on temperature zones (Chill, Mid-Chill, Frozen, Normal).

External Challenges faced by the industry

As you can see there is a palpable need to find realistic ways to manage the products, vehicles, employees and clients. In fact, as a cold chain logistics business owner, you should expect major changes in near future. Let’s take a closer look at few of them:

Increased focus on quality and product sensitivity – 
If you’re looking to gain repeat business from your clients, ensure an optimal experience for them. With the entry of more premium products with a shorter shelf life, there is an intensified focus on quality and the consumer experience.

Be ready for increased environmental regulation pressures –
NGOs and other regulatory bodies are prompting governments to tighten regulations on production and supply. Be ready for even stricter quality controls on temperature-sensitive food items.

Substantial increase in competition –
There is a definite market pressure to manage cold chain logistics processes at a reduced cost. The business is cut-throat and you can’t afford to relax even for a single second.

Operational Challenges faced by the industry
For a regular business owner, day-to-day management is getting tougher. You need to manage the vehicles, the on-field employees, and thousands of customer orders. Tracking the vehicle manually is both outdated and impractical in an ever-changing business scenario. Even if you’re monitoring cold chain logistics, everything goes through the hand of humans in every step. This is wrong on so many levels. Activating and attaching manual temperature loggers is not efficient, easily prone to risk, and not accurate as well. With increasing cost of human labor, and the escalating pressure of competitiveness even from developing countries, the cold chain managers are facing a war of their own.

How fleetroot addressing the pain point ?
Feetroot logistic suite is a complete web-based fleet management solution with a cold chain equipment and support for real-time monitoring of temperature and humidity in reefer vehicles as well as the refrigerated warehouse which helps in temperature controlled shipping. A GPS unit with RFID receiver can be installed in the driver’s cabin of the truck. Multiple wireless temperature and humidity sensors ( Monnit IOT sensors) can be installed inside the goods chamber. The wireless IOT sensors work with Monnit IOT gateway. Entire temperature and humidity data is stored in the cloud which can be accessed from anywhere/anytime using a standard web browser and smartphones. The user-friendly Mobile and Web apps will inform you about the temperature of your cargo from anywhere in the world, allowing you to track their location in real time. This means you will get quick insights to take any necessary action to optimize your transportation.

Once you’ve installed the system, what’s the immediate benefit for a cold chain logistics business owner?

• Complete control and tracking capabilities with individual tracking for each shipment from the point of pick-up through to final delivery.
• Wholesome monitoring with detailed temperature/humidity graphs for the trips which they can be easily shared across to your customers.
• Real time GPS tracking with optimized route planning so you can keep a track of potential delays.
• A market leading cloud platform that helps you manage transportation costs and monitor your fleet live information on the status of each shipment.
• Using fleetroot platform, you can check entire trip history along with stoppages, idling, over speeding information.

What is GPS Vehicle Tracking System?

Global Positioning System (GPS) :

Introduced by US initially for servicing the interest of Defense, GPS is a satellite-based navigation system made up of a network of 24 satellites , transmitting on two frequencies to enable coarse and accurate position to be determined on objects which are equipped to receive and process satellite signal from a minimum of three satellites, using triangulation method. Apart from the real-time position, the receiver also outputs time, velocity and a host of other object related parameters. GPS works in any weather conditions, anywhere in the world, 24 hours a day. There are no subscription fees or setup charges to use GPS.

GPRS (General Packet Radio Service) :

GPRS is the main method of communication between the GPS Tracking unit and the server. GPRS, being a 2.5G mobile technology, is ubiquitously available in most of the countries. It is also ideally suitable for data transfer between a central location and mobile devices.

Use of GPRS has following additional advantages:

• Packet switching: GPRS involves overlaying a packet based air interface on the existing circuit switched GSM network. The GPRS information is split into packets before being transmitted and reassembled at the destination.
• Immediacy Provides instant connections to send or receive the message subject to availability of radio coverage.
• Higher speed of data transfer (currently available data transfer rates are 14.4 kbps to 26 kbps) are possible with a theoretical maximum of 171.2 kbps.
• Spectrum Efficiency: GPRS radio resources are used only when transmitting and / or receiving data.
• Concurrency: The available radio resources can be concurrently shared between several users.
• Efficient use of radio resources: Potentially large number of users can share the same bandwidth.
• Maximize usage of network resources in a dynamic and flexible way.
• Reduce SMS traffic data load, Interfacing the in-vehicle GPS unit with a GPRS modem facilitates real-time transmission of the positional information to a Control Station, without limitation on data size, thereby overcoming the 160 character limitation of SMS used in GSM. Also, by storing GPS data in the Flash memory of the in-vehicle unit at regular intervals (typically one data string every few seconds), bulk data can be transmitted to a Control Station at pre defined intervals.

However, the disadvantages are:

• Higher Network Service costs.
• Dark areas in coverage may prevent communication.
• Transit delays.

GSM/ CDMA Communication Network :
Considering the expansion of mobile communication services in India for the past few years, interfacing the in-vehicle unit with GSM/GPRS/CDMA communication networks offers an effective solution.

The advantages, therefore, are:

• Larger network coverage.
• Facilitates providing two-way voice and data communication between the in-vehicle unit and the Control Station.
• Sends vehicle location and other information as an SMS or GPRS message.
• SMS advantage: Storage and forward facility for messages as a facility offered by the Network Service Providers.

Web based tracking:

Web Based GPS Tracking system allows users to securely log in and track their assets in real – time over the Internet. The system allows users to locate their vehicles anytime and anywhere. Also, it can replay a past trace of the vehicle’s route history. It can also remotely control the car such as run alarms and locking devices. A lot of shipment companies globally use GPS Tracking Systems in their transport vehicles. It is very important for the large fleets, especially when they have big number of trucks and staffs, to manage these huge numbers of vehicles and people.

What does Vehicle Tracking System comprise of?

The GPS based Vehicle Tracking System comprise of an in-vehicle tracking system which consists of GPS receiver unit, CDMA/GSM Modem, on-device Data Storage unit, other peripherals and a web-based application. Through this system, the users will have the facility to monitor the movement and gather entire information of any vehicle.

Variants of Vehicle Tracking System:

1. Passive :

• Manual
• Automatic

In the Passive System configuration, the in-vehicle unit captures positional updates every few minutes, and stores the data in its Flash Memory. The data can be reviewed at a later time with manual or automatic data download facility. In the manual data download, the in-vehicle unit needs to be physically connected to a Computer, where as in the automatic download mode use of Bluetooth/Radio/GSM/ Modem device is used to transfer the data to the server or computer.

The advantages and disadvantages in Passive system are :

• Low cost and one time investment.
• High resolution, providing detailed information.
• No coverage area limitation.
• No need to rely on network functionality.
• No real-time location information available.
• Cannot be used to locate vehicles for dispatch and customer services.
• Too late in many instances to capture exceptions.

1. Active (Real-time) :

• Exception Reporting
• Continuous Tracking

In the Active System configuration, the in-vehicle unit transmits the positional data strings to a centralized and /or distributed information system in real-time time using Radio/GSM/GPRS/CDMA network. In the Exception Reporting system, it sends alerts to the fleet operator when violations or vehicle related events like break downs, emergencies etc are detected. The continuous positional data can also be stored on the in-vehicle unit and downloaded onto the system computer as in the case of passive systems. Whereas in continuous GPS Vehicle Tracking System, the positional update is sent every few seconds to the centralized/ distributed information system enabling real time applications.

The advantages and disadvantages in the Active systems are seen:

• Near Real-time continuous track of the vehicles
• Quick response to customer needs and emergencies
• Alerts fleet operators for immediate corrective action
• Long term dependence on network carrier and service provider

The Potential Customers of a Vehicle Tracking System includes:

• BPO Companies or Call Centres
• Call Taxi operators
• Ambulance, Police and other Emergency Service Providers
• Public Transportation System
• Municipal Corporations
• Freight carriers of Industrial and Agricultural produce
• Transportation Industry

What is GPS Heavy Equipment Tracking Technology?

The same system that is used in our smart phones can also be installed in heavy equipment to enable a real-time view of it’s transitory life-cycle. GPS tracking is a means of making sure you are always aware of the exact coordinates for all equipment involved in a job site. If something is late—or worse—stolen, immediate measures can be taken to prevent further loss.

This type of technology is popular in a variety of industries including the following:

• Construction
• Manufacturing
• Utilities
• Infrastructure and roadways
• Landscaping
• Farming
• Shipping and Logistics
• Restaurants and food trucks
• Motorsports trailers

GPS tracking technology (also referred to as telematics) can help measure the health of your system to make sure it is always running at peak performance levels. Any job that involves heavy equipment can be a big investment, so it is critical that you have a system in place for all the checks and balances in the asset management of a project. The following are some of the ways in which telematics is benefiting companies right now:

Tracking
The best means to safeguard your assets is to track them through every step of the project. A GPS tracker allows a company to locate equipment and monitor how it is managed in real-time. The unit is usually discreetly attached to each piece of equipment and is ruggedized and weatherized resistant.

Loss Prevention
The true purpose for the tracking abilities of telematics is loss management. A large problem across all industries, theft of heavy equipment can stall a project and cost a company millions of dollars. Options like a “starter disable” on GPS tracking technology allows a company to remotely immobilize equipment and prevent further theft.

Time Management
Tracking abilities extend beyond equipment theft. It also allows a company to monitor the way their assets are being deployed and how employees are managing their time. This enables better overall scheduling and planning. Additionally, it helps prevent loss in terms of driver overtime, as the system knows exactly when the equipment is engaged 24-hours a day.

Instant Alerts
GPS monitoring software will also alert you with real-time equipment updates throughout the life cycle of your project. Automated SMS and e-mails can tell you things like:

• Received and completed deliveries
• Compliance breaches
• Unauthorized equipment use
• Geofence alerts

Although tracking is the obvious benefit to GPS technology, telematics can also help you maintain the life of your equipment.

Maintenance
Modern asset management involves programs that watch your equipment on levels a human eye is incapable of. GPS tracking technology not only enables personnel to locate and manage equipment efficiently, it can also report on performance. The software will look at metrics like:

• Engine hours and usage
• Inventory
• Equipment idling
• Fuel usage
• Job-site management
• Component management

Using these types of data points, a GPS tracking program can report and recommend a preventative maintenance program that will extend the lifecycle of your equipment.

Accurate reports on past service, mileage, and engine hours can help plan for future projects and necessary maintenance. When looking for top-notch GPS tracking equipment, a system that works with no power supply (and a 2-6 month battery backup) is your best option.

Reporting
The most underutilized, yet highly valuable aspect of GPS tracking is smart reporting. Detailed monthly reports can assist with keeping track of top performing equipment and where to focus repairs.

The technology can also help notify when regular maintenance is due on equipment to keep them running at peak performance. Vehicle maintenance notifications always ensure regulations and standards are being met.

Fleet management software like GPS tracking can also dig deeper and help determine if assets are being utilized to their fullest potential and where to make cuts. This type of data allows for smarter decisions that result in larger savings on cost and labor.

GPS tracking technology solves some age-old challenges to heavy equipment management. It gives business owners the ability to sit as a “fly on the wall” of every piece of equipment they own. This enables greater control of things like loss prevention, efficient usage, inventory control, and labor management.