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Waste tolerance impedes technological advances in logistics

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Technological innovation does not address the major inefficiencies of cold chain logistics as shippers tolerate product corruption. And until this mindset changes, there is no real incentive for dramatic technological advances within cold chain logistics.

This is the view of logistics expert Kris Kosmala, a partner of Singapore-based consultancy Click & Collect, talking about artificial intelligence and cold chain logistics today at Cool Logistics Asia.

“To date, unfortunately, shippers have accepted that some of their produce is ruined in transit. One of the biggest problems we face is product loss. Instead of saying that we need to eliminate it altogether, we accept the loss of this product, “Cosmara told a delegation attending online.

“The carrier has resigned to accept a certain percentage of corruption in the system and that’s okay. Why? It’s very easy to apply this cost so that it’s the ultimate buyer to pay the loss. Because of this, the loss is essentially burned into the cost paid last. This is a shame.

“As a result, technology-based disruptors aren’t working on something important in cold chain logistics: corruption, they’re working on peripheral issues,” Cosmara said.

“Unless the idea of ​​completely eliminating waste from the supply chain has changed, how technology works, how it can be applied differently, what needs to be changed, or the core You probably won’t make a dramatic leap by thinking about what you need to do to address the problem. It’s not a fringe. “

On average, frozen containers are processed 15 to 20 times in transit, according to Cosmara. He added that the main reasons for spoilage during the journey were damage to the transport or storage system, condensation, heat exposure, microbial growth, and damaged goods.

The current best way to prevent corruption is to implement a standard operating procedure (SOP). This ensures that equipment, systems, and processes are checked and adhered to at all stages.

“Digital improvements aren’t transformative yet. Technological innovation doesn’t substantially change standard operating procedures. Maybe that’s the problem,” he said. “If we handle it that way and the cargo is still ruined, then perhaps our procedure is not appropriate for handling the process.

“AI can be used to handle things differently. But the way AI is currently used doesn’t do this. We’re incorporating old learning into new AI. We’re not asking AI to find new ways, “continues Kosmala.

“Maybe we need to confuse the destroyer. Maybe there’s the next step we’re still experiencing.”

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