Third party cold chain logistics has become a shortcoming, and future development is imperative

During the booming development of cold chain logistics, the marketization level of food cold chain is very low, and there is little third-party intervention. In addition to the export of perishable food, the logistics and distribution business of domestic sales in China is mostly completed by manufacturers and distributors. The development of third-party logistics in the food cold chain is very lagging behind. At the same time, the service network and information system are not sound enough, with poor accuracy and timeliness, and the cost and product loss of the food cold chain are also high.

The cold chain logistics industry is rapidly heating up

In recent years, the scale of cold chain logistics in China has grown rapidly. Taking cold chain logistics of agricultural products as an example, the production of fresh agricultural products in China has rapidly increased, with approximately 400 million tons of fresh agricultural products entering the circulation field each year, and the proportion of cold chain logistics is gradually increasing. In the next few years, the cold chain circulation rate of fruits, vegetables, meat, and aquatic products in China will increase from 5%, 15%, and 23% to over 20%, 30%, and 36%, and the refrigerated transportation rate will increase from 15%, 30%, and 40% to 30%, 50%, and 65%, respectively, which will bring in a cold chain logistics market demand of tens or even hundreds of billions of yuan.
Taking Kunming as an example, the current cold chain logistics industry can be roughly divided into the following categories: first, traditional cold storage and transportation. These manufacturers are mainly concentrated in the second ring road of the urban area, represented by Kunming Refrigeration Factory, and also include Wangqiao Cold Storage, Liangting Cold Storage and other business formats. These refrigeration enterprises were founded in the 1970s and 1980s, with outdated equipment that is difficult to use, and often hindered in logistics and distribution, and lack information guidance in business channels, resulting in a single sales route. But it is this storage of less than 30000 tons that has maintained one-third of the wholesale market's demand for fresh and cold food in Kunming in the past.
The second is the self established business model of food enterprises, represented by Yunnan Shennong Meat Industry Food Co., Ltd., Jiahua Company, McDonald's and other fast food enterprises, as well as cold storage counters in agricultural markets and supermarkets. These operators and enterprises have a stable customer base and are involved in retail. The third is the characteristic agricultural supporting cold chain logistics business model, which is established based on the main agricultural production areas, connected with the planting base, origin, and characteristic greenhouse fields. Once harvested and collected, it is immediately deposited into the cold chain and transported to the market. Represented by the Chenggong fresh cut flower industry, the vegetable greenhouse cold storage in Yangqiao, Songming, and the cold chain logistics of the vegetable production base in Jinning.
Finally, the third-party cold chain logistics industry is represented by the upcoming Yunnan ASEAN International Cold Chain Logistics Center and the upcoming construction of the Kunming Airport Cold Chain Logistics Industrial Park.

The development of cold chain third-party logistics lags behind

Especially for the third-party cold chain logistics park, its development history in China is not long, but its momentum is strong. One of its distinctive features that distinguishes it from the above three business models is the integration of cold chain logistics market capabilities, which means providing diversified deep processing services and broad marketing channels through advanced information platforms for a large number of business owners and distributors who attract investment to settle in the park.
At present, the basic situation of the development of third-party cold chain logistics in China is the coexistence and coexistence of third-party logistics enterprises based on food production enterprises and independent third-party logistics companies. Professional third-party cold chain logistics accounts for about 20%, mainly consisting of small and medium-sized enterprises, lacking industry competitiveness. In addition, the logistics of most perishable foods are operated by manufacturers, processors, and retailers themselves, which greatly hinders the cost-effectiveness of the cold chain market and also hinders the development of third-party cold chain logistics enterprises.
About 40% of Chinese enterprises tend to operate their own refrigerated logistics business in order to effectively control product quality, but still 60% of enterprises hope to use third-party cold chain logistics to alleviate the pressure of product cold chain transportation. Therefore, outsourcing cold chain logistics is necessary for temperature control product production enterprises, and its necessity is specifically reflected in the advantages obtained by enterprises in the cold chain outsourcing process.

Outstanding advantages of cold chain logistics outsourcing

Through cold chain logistics outsourcing, enterprises can focus on developing their main business. Companies that have a demand for cold chain logistics are generally focused on producing low-temperature and perishable food products. These enterprises have high requirements for basic refrigeration technology, refrigeration transportation technology, and operation in cold chain logistics, requiring them to have a complete refrigeration logistics chain. They also need to establish excellent refrigeration transportation equipment and professional transportation management mechanisms, which are precisely the weak links of production enterprises. Therefore, outsourcing cold chain logistics to third parties and concentrating time and energy on developing the main business is the best choice for enterprises.
Outsourcing cold chain logistics can effectively reduce enterprise costs. Outsourcing the cold chain transportation process of products can effectively reduce the necessary investment of enterprises in various cold chain logistics facilities such as vehicle procurement, fleet establishment, and cold storage construction, thereby effectively reducing the financial costs of enterprises; In addition, transferring transportation responsibility to third parties, once problems arise due to improper transportation, third-party logistics companies are responsible, which can also reduce the relevant operating costs of the enterprise and reduce human and material expenses in this regard.
Cold chain logistics outsourcing can effectively enhance the competitiveness of enterprises. The improvement of enterprise competitiveness is mainly based on the first two points. With the continuous intensification of industry competition, for small and medium-sized enterprises that do not have the ability to self operate cold chain logistics, investing valuable resources in cold chain logistics is not worth the loss. However, a complete third-party cold chain logistics can provide all logistics services required by the enterprise, help production enterprises focus on developing their main business, and thus occupy an advantage in industry competition with high-quality and low-cost advantages.

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