Sector underestimates the effect of last-mile delivery, GDP and global warming

Uden – April 10, 2019 – The sector isn’t feeling the pressure yet of the big changes coming in the Cold Chain, if the benchmark research ‘Cold Chain Change,’ a survey by VebaBox Cool Solutions, is anything to go by. A lack of strategic planning and investment is creating a loss of efficiency in existing chains. This is a surprising result, given the growing demands on product safety, the ever-expanding desires of the consumer, and a global demand for climate-controlled transport that is expected to triple in the coming years. 

There is, however, a clear group of leaders that came out the research. These companies are aware of the importance of – and are capable of acting toward – optimizing their own effectiveness. They are able to significantly increase customer satisfaction, reduce Cold Chain breaks and focus on sustainability. In total, 50 of the sector’s decision-makers took part in the benchmark survey.

Strategic plans for optimization missing despite the big changes
The sector is aware that temperature-sensitive transport and storage is currently faced with challenging market developments. Stricter regulations are an important trend in the market for 53%. Rising costs are another big trend, according to the same percentage of respondents. Also, 43% expect to see a large increase in the desires and demands of consumers. One-third see a growing liability for manufacturers.

However, only 25% of companies have a strategic plan in place to help them face these changes. “It is concerning that the sense of urgency for a strategic approach is missing in the Cold Chain, especially since there are so many external factors that affect existing processes,” according to Roland van de Ven, Managing Director of VebaBox, the benchmark research initiator. “The sector really needs to get to work. And quickly!”

Current challenges don’t lead to investment
The changing market creates a lot of challenges. Approximately half of the respondents (49%) struggle to find a balance between costs and excellent customer service. Other challenges include customer satisfaction and complying with stricter regulations.

There seems to be enough interest in investment when it comes to improving customer satisfaction, as well as for quality and safety. Even investments in sustainability receive a significant amount of focus. But intention doesn’t always translate to action: only 21% of companies have actually freed up budget to invest in meeting the current challenges. The majority has no funds reserved for the essential task of updating and optimizing their existing processes.

Leaders profit from proactive approach
The benchmark research revealed a very interesting group of companies that are leading the way. These leaders report having more optimum and efficiently organized processes, along with a much higher rate of customer satisfaction, fewer Cold Chain breaks and a focus on sustainability.

Van de Ven: “These leaders aren’t magicians. This group of companies is highly driven by a need for efficiency and cost reduction. To reach those goals, they have a solid plan, they invest, and they look for the opportunities that new technologies can bring. The next step toward a more effective Cold Chain requires taking a fresh look at your current processes and being bold enough to leave the traditional solutions behind when they don’t take you far enough.”

About VebaBox
As a disruptor in the traditional Cold Chain, VebaBox strives for optimal efficiency, guaranteed quality and flexibility. The mission is to optimize the Cold Chain by utilizing smart innovations that fit into an existing environment. With both mobile solutions (VebaBox) and passive solutions (LogiBox), VebaBox can support manufacturers, wholesalers and distributors.
Following our motto ‘Finding and applying simple solutions together,’ VebaBox helps clients with essential changes and effectiveness in the area of logistics within the Cold Chain.

About the research
The Cold Chain is in a state of profound change. This research is a signal for the market, and it reveals which trends are game-changers and where the best opportunities for optimizing the Cold Chain can be found. It provides insights into where manufacturers, wholesalers and transport companies can achieve the greatest results. VebaBox hopes this research will help to intensify the collaboration between the various links in the chain.

A detailed report of the results of this research is available. It is free to for download here.

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