The following presentation was delivered at the 2024 Cold Chain Refrigeration , Logistics and Technology Summit in Cape Town , by Sean Petzer , founder of ESBD ( ES Business Development ), on the topic ‘ Leveraging AI and digitalisation in cold chain logistics ’.
INCORPORATING COLD CHAIN
ASSOCIATIONS
Harnessing IoT to revolutionise
Mesuli Mduli , mechanical engineering manager of County Fair Western Cape .
transform how resources are utilised . By repurposing waste and optimising resource use , companies can not only reduce their environmental footprint but also create new job opportunities and drive economic growth .
THE ROLE OF RENEWABLE ENERGY
The transition to renewable energy sources is crucial for the cold chain industry . However , the adoption of solar and other renewable technologies has been sluggish . Financial constraints and the lack of supportive infrastructure are significant barriers . To overcome these hurdles , industry leaders must advocate for and invest in renewable energy solutions that are both economically viable and environmentally sustainable .
FINANCIAL MODELS AND INVESTMENT STRATEGIES
The traditional financial models that guide investment decisions in the cold chain sector need a thorough overhaul . Current models often fail to capture the long-term benefits of sustainable practices , leading to a short-sighted approach to investment . Innovative financial vehicles and partnerships , such as cooling-as-a-service and solar power purchase agreements , can provide the necessary capital for sustainability projects while offering attractive returns .
BEHAVIOURAL AND OPERATIONAL CHANGES
Beyond technological and financial strategies , behavioural changes within organisations play a vital role in enhancing sustainability . Simple practices , such as turning off unused lights and optimising cooling systems , can collectively make a significant impact . Employee education and engagement in sustainability initiatives are essential for fostering a culture of environmental responsibility .
THE PATH FORWARD : AN INTEGRATIVE APPROACH
The cold chain logistics industry must adopt an integrative approach that balances economic , environmental , and social considerations . By leveraging technology , rethinking financial models , and promoting sustainable practices , the industry can navigate its current challenges and build a resilient , sustainable future .
Investing in data-driven technologies , renewable energy , and innovative financial models will not only reduce operational costs but also ensure compliance with evolving environmental regulations . These steps are critical for maintaining the industry ' s viability and contributing to global sustainability efforts .
In conclusion , the cold chain logistics sector stands at a crossroads . The decisions made today will determine the industry ' s ability to thrive in the face of mounting challenges . By embracing sustainability , leveraging technological advancements , and rethinking financial strategies , the industry can secure a prosperous and sustainable future for the generations to come . CLA
cold chain logistics By Eamonn Ryan
The following presentation was delivered at the 2024 Cold Chain Refrigeration , Logistics and Technology Summit in Cape Town , by Sean Petzer , founder of ESBD ( ES Business Development ), on the topic ‘ Leveraging AI and digitalisation in cold chain logistics ’.
‘ It ' s not about the price you pay , but how much you save ’.
Efficiency , cost-effectiveness , and reliability are paramount in the cold chain sectors . Companies worldwide , including global shipping liners , forwarding agencies , and consolidators , face the ongoing challenge of ensuring that products , especially pharmaceuticals , are transported and delivered under optimal conditions . ESBD specialises in independent thermal factory business solutions .
Unlike companies that offer shortterm fixes , ESBD enters into long-term contracts with its clients , ensuring that their solutions provide continuous support and savings . The company ' s approach is encapsulated in the phrase , ‘ It ' s not about the price you pay , but how much you save ’. This philosophy was vividly illustrated during one particular negotiation where ESBD ' s solution , though initially appearing more expensive , proved to be 24 % cheaper when accounting for the reduction in product write-offs due to temperature excursions .
“ One of the cornerstones of our innovation is the development of reusable thermal boxes . While these boxes may have a higher upfront cost , their ability to be reused multiple times significantly reduces overall expenses . We validate our boxes for a minimum of 120 hours , ensuring that products like vaccines remain at safe temperatures for up to five days . This rigorous validation includes both international and South African testing to meet the highest standards ,” says Petzer .
Its box portfolio ranges from small 4l containers to large 264l ones , all designed for optimal thermal performance . The use of phase change materials ( PCMs ) instead of traditional gel packs allows for precise temperature control . For instance , a 2 ° C to 8 ° C box uses PCM maintained at 5 ° C , ensuring maximum payload capacity and eliminating the need for additional packaging .
ESBD also offers customised solutions tailored to the specific needs of clients . For example , their work with one client has significantly reduced the number of boxes required per vehicle per day from 11-15 to just two , enhancing efficiency and reducing environmental impact .
Its solutions extend beyond reusable boxes to include full pallets and thermal blankets , which are 100 % paper-based and free from foil or plastic . These blankets offer the same performance as traditional thermal blankets , with the added benefit of being environmentally friendly . The protective sleeves enable double stacking , optimising limited bed space in transport vehicles .
“ This approach has led to a 70-100 % elimination of single-use plastics for many clients . Our vacuum insulated panels ( VIPs ) ensure that boxes last a minimum of five years , significantly reducing landfill waste ,” says Petzer .
By utilising validated loaders that can be placed in any vehicle , ESBD enables clients to transport products at various temperatures without the need for temperature-controlled vehicles . This flexibility allows for the efficient use of transport resources , reducing the number of vehicles on the road and
All images © Eamonn Ryan Cold Link Africa
Sean Petzer , founder of ESBD ( ES Business Development ).
associated costs . For instance , a vehicle can now carry products at multiple temperatures , maximising payload and minimising environmental impact .
“ These boxes maintain temperature integrity even when deliveries are delayed , allowing products to be stored safely until they can be moved to cold storage .”
Incorporating IoT technology , ESBD utilises Bluetooth data loggers to provide real-time monitoring of temperature and box status . These loggers record every opening and closing event , offering detailed reports that help ensure compliance and product safety . “ This transparency is crucial , especially when dealing with high-value pharmaceuticals where even a minor temperature deviation can result in significant losses .
“ One of our most compelling benefits is the substantial cost savings for clients . By reducing the reliance on single-use plastics and enhancing the efficiency of reusable packaging , clients have seen reductions in packaging costs , waste management expenses , and overall environmental impact . For instance , a client transporting R20 million stock annually realised a 51.3 % cost reduction by switching to ESBD ' s solutions ,” claims Petzer .
The implications of effective cold chain management extend beyond cost savings . Properly managed logistics can prevent the spoilage of vaccines and other critical pharmaceuticals , thereby avoiding public health crises . “ For instance , the Western Cape Department of Health , which transports R500 million worth of vaccines annually , improved packaging solutions helped mitigate risks associated with vaccine spoilage , ensuring that essential immunisation programmes are not compromised .” CLA
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