Logistics Issues

Even before the spread of the new coronavirus infection, japan's refrigeration logistics storage capacity was tight. There are three main causes:

• In 2020, certain freon will be discontinued and it is necessary to consider outsourcing to a warehouse because it cannot raise the cost of switching to an alternative freon.
• Although refrigeration logistics in the Tokyo metropolitan area and the Kansai region are aging, rebuilding is delayed due to soaring costs and difficulties in arranging alternative warehouses.
• Frozen food is difficult to handle, so it is essential to train specialized staff, but labor costs are high, and there are few new entrants because of the risk in the event of trouble occurs.

In the logistics of frozen foods, if the temperature changes, not only will it be damaged in no time and it will not be possible to become a product, but it can also cause troubles that greatly damage the trust of companies. The cost of getting things done is much higher than the cost of selling and managing, which can hinder future corporate management. Maintaining the quality of products in the process from the production stage to the delivery to consumers is very difficult and one of the challenges that plague companies.

In general,the cost of shipping frozen goods tends to be higher than the delivery of ordinary goods. In addition to the cost of managing goods at a constant temperature in the warehouse, it is necessary to use cool flights during delivery, and costs are incurred in various situations compared to products that can be stored at room temperature, such as labor costs for monitoring whether the temperature has changed during the delivery process. For products with low unit prices, adding shipping charges is unprofitable, so there are more cases where consumers are asked to bear the burden. However, there is a risk that setting a high shipping fee for cheap products often results in higher shipping costs than the purchase price, making it easier for consumers to make purchases.

The logistics business of frozen products requires more resources than normal logistics operations. Frozen products must have more expertise in the process of maintaining an appropriate temperature range during storage in the warehouse and monitoring whether the goods are kept in ideal condition in the frozen truck even after they are issued. In addition, since packing operations cannot be performed at room temperature warehouses, the space where work can be done is limited, and business efficiency inevitably decreases significantly compared to normal logistics. Be careful when loading your luggage into the truck. in the case of frozen products, if you accidentally place them on a truck with different temperature ranges, you will not be able to maintain the freshness of the product.

This is a major challenge because you need to manage temperatures and prepare your operations to keep your work running smoothly.