Cold Link Africa July/August 2018 | Page 37

FEATURE INCORPORATING COLD CHAIN Outsourcing refrigeration could improve bottom line By Dawie Kriel, head of Energy Partners Refrigeration We take a look at why South African companies are moving away from owning their own cooling systems. R efrigeration represents a substantial refrigeration systems tend to keep initial cost to companies operating in expenditure as low as possible. The South Africa’s food and beverage problem with this is that the initial cost industry. Additionally, the operation and of a system generally only constitutes a maintenance of modern refrigeration quarter of the system’s entire life cycle systems often diverts precious resources cost while the energy cost is likely to be and time away from a company’s core 50–70% of the cost over the life of the activities. Businesses are also losing a lot plant. Therefore, if you cut costs during of money through wasted electricity costs the initial installation, operation and by using inefficient refrigeration systems. maintenance costs are likely to be more This is why some of the country’s major expensive later on. outsourcing their refrigeration. The simple truth is that many businesses in the food and beverage industry are operating poor performing and expensive- to-maintain refrigeration systems. Ideally, more efficient and reliable systems should be installed, but the capital outlay Outsourcing your refrigeration can be a more viable option for companies that want to focus on their core business. required for a state-of-the-art refrigeration Outsourcing your refrigeration can be a system is often high. more viable option for companies that industry players have started to consider Refrigeration represents a substantial cost to companies operating in South Africa’s food and beverage industry. want to focus on their core business. since they are paying for the use of those systems, which require the appointment of the funds or diverting cash for a new Most businesses already rent or outsource assets, while not having to worry about high-level skills to maintain their efficiency. refrigeration system is often a challenge, a number of their functions, including maintenance. In line with global trends, Energy Partners Refrigeration has and businesses that do install their own logistics and equipment. This makes sense the same can be done with refrigeration created a unique business model that For many companies, sourcing Continued on page 39 COLD LINK AFRICA • July/August 2018 www.coldlinkafrica.co.za 37