In the world of logistics, the term "cold chain" often stands out. But what exactly is "cold chain logistics"?
At its core, cold chain logistics involves transporting, storing, and handling products that must be kept within specific temperature ranges to maintain their quality and safety. This method is pivotal for various industries, notably healthcare, pharmaceuticals, and food, ensuring that everything from perishable food to vital medications reaches its destination in optimal condition.
Indonesia's market for cold chain logistics is on a remarkable growth trajectory. According to data by Allied Market Research, it is projected to reach US$12.59 billion by 2031, with a Compound Annual Growth Rate (CAGR) of 10.2%. Such growth is fueled by the expansion of the healthcare sector, increased food exports, and the rising need for pharmaceuticals, all of which rely on cold chain logistics for quality and compliance.
DHL Express Indonesia is at the forefront of addressing this critical demand. Our comprehensive cold chain solutions ensure that every shipment within Indonesia or overseas is handled with the utmost care and efficiency.
Explore more about the demand for cold chains and how our end-to-end cold logistics services optimise operational efficiency for Indonesia's critical industries.
The growing need for cold chain logistics in Indonesia
Now, let’s quickly dive into Indonesia's growing e-commerce industry, which is projected to reach US$35.19 billion in 2024 and an estimated market volume of US$54.84 billion by 2029, according to data from Statista. This digital marketplace evolution, fueled by easy internet access, allows for the seamless purchase of various goods, from cosmetics and clothing to pharmaceuticals (from registered suppliers) and perishable or processed food.
Notably, the processed food sector is witnessing significant growth, driven by an uptick in food, beverage, and meat product consumption. Moreover, the demand for pharmaceuticals is also escalating due to increased health awareness in the country and even globally, mainly due to the COVID-19 pandemic.
This surge in online shopping and the expanding critical industry emphasises the need for cold chain logistics to cater to the increasing demand for these temperature-sensitive products.
However, aligning this demand with reliable logistics presents challenges due to the lack of standardised cold chain management solutions across Indonesia, such as inadequate temperature-controlled warehousing, equipment, security, and operations.
One significant example of these challenges was evident during the COVID-19 pandemic when Indonesia's cold chain infrastructure struggled with issues like insufficient refrigerated containers and a lack of temperature monitoring equipment. This shortfall hindered the ability to supply enough vaccines at the time and maintain their efficacy.
Further consequences businesses, in general, may face with inadequate cold chain management include:
- Spoilage: This leads to waste of perishable goods before they reach consumers.
- Revenue loss: Direct financial losses for businesses due to spoiled goods.
- Public health risks: Potential health hazards from improperly handled food and pharmaceuticals.
- Regulatory non-compliance: Risks of fines and sanctions for failing to meet health and safety standards.
- Increased operational costs: Inefficiencies and delays that inflate operational expenses.
Without a reliable cold chain, preserving the quality of temperature-sensitive products becomes a significant challenge, impacting consumer safety and business success.
DHL Express’ advanced cold chain solutions
In the face of Indonesia's dynamic e-commerce growth and the specialised logistic needs of industries like healthcare and pharmaceuticals, food, cosmetics, and more, DHL Express emerges as a pivotal force with our international cold chain management solutions. Read about them below:
- Insulated shipping containers: Ideal for short trips or transitional phases in transportation, these containers are designed with high-grade insulation and electronics to keep temperatures consistent without active cooling. They can also be used as an extra layer of protection alongside other cold chain transport solutions. They are recommended for products extremely sensitive to temperature fluctuations, such as medical vaccines.
- Active refrigerated containers: Designed for long-haul transportation, including international sea and air freight. They are powered by built-in batteries or the ship or plane’s power supply, maintaining consistent temperatures regardless of external conditions.
- Temperature-controlled air freight charter: We’ve introduced cold chain air charters, bridging Indonesia across Asia to Europe and the United States. We utilise advanced facilities and technology, providing compliant cold chain transport across continents.
- Dedicated cold chain warehouses: Our storage facilities use climate-controlled technology to maintain the optimal temperature for sensitive products awaiting further transport or pickup.
Beyond these solutions, we also provide additional state-of-the-art technologies and expertise to enhance our cold chain logistics services further:
- Smart sensor technology: We integrate innovative sensors within our cold chain and logistics management, offering real-time temperature insights for shipments in storage facilities, warehouses, and delivery vehicles.
- Comprehensive tracking capabilities: Our logistics system provides complete visibility from when a product is shipped to its arrival.
- Cold chain packaging: We customise our packaging with materials and designs specifically chosen to protect against temperature fluctuations. For instance, our Thermo Packaging offers ambient, chilled, and frozen options, ideal for pharmaceutical and healthcare sectors, ensuring products like vaccines are transported safely.
- Dedicated cold chain experts: DHL Express’s specialised cold chain logistics verifies that each shipment complies with local and global standards. They also inform and assist our customers throughout the process, addressing the complexities of cold chain procedures.
At DHL Express Indonesia, we're not just about moving goods; we're about preserving their integrity, ensuring regulatory compliance, and enhancing customer satisfaction.
