Cold storage

Food and pharma are booming. Therefore, cold (or temperature controlled) storage is as well. In industries where quality control is key and capacity is limited, it is important to have a specialized logistics partner that knows all the ins and outs when it comes to the rules and regulations for cold supply chains. HIDC’s Jelle de Rooij, Eelco Schnabel from Lineage and Eric Willems from Movianto give their take on the must haves and latest developments in this logistics niche.

During the pandemic the market for both food and pharma changed rapidly. Resulting in an increasing demand for temperature-controlled logistics. Not in the least because manufactures started to reserve space to make sure they have the storage capacity needed when the market changes. Jelle de Rooij, Sr. Manager Supply Chain Solutions HIDC: ‘There is a serious international shortage when it comes to cold storage. The Netherlands, however, has a gateway function to Europe, and therefore has a high density of cold storage specialists providing the much-needed capacity. This, and our favorable business climate makes the Netherlands an interesting location for cold storage facilitators and investors.’ The recent developments of The Food Hub at the Port of Rotterdam, Amsterdam Schiphol’s Pharma Gateway and the Greenport in Venlo are perfect examples of cold storage developments in the Netherlands.

Lineage is the of the world’s largest temperature-controlled logistics solutions providers for the food industry. It’s Director Business Development Lineage Europe, Eelco Schnabel, emphasizes the importance of the right location when entering the European market: ‘When you come from outside the EU location is everything when it comes to cold storage. You need to be able to not only provide everything needed to pass customs but also pass all quality controls and be able to continue the cold supply chain without interruption. We have an extensive network of partners to make this possible.’

External audits

The strict legislation in Europe when it comes to Food and Pharma can be a challenge for international companies. ‘In the USA for instance, local guidelines for temperature-controlled transport deviate from EU GDP. In Europe, medication has to be transported under strict temperature monitoring’, says Eric Willems, Commercial Manager Netherlands for Movianto, a logistics service provider for medical devices and pharma. ‘Quality is key in our industry. That’s why we take care of the entire cold supply chain for a lot of our customers. From collecting to storage to repackaging, including order to cash management.’

‘To indicate how important quality control is in this field: we have external audits on a weekly basis. Everything must be meticulously logged: when something is validated, why something is stored in that corner, why stored so high, who will be warned and why if something is off etc. In the Netherlands we have a dedicated team whose only job is quality control.’

Trends in cold storage

The trend Eric sees in his industry is that diagnostics is a fast-growing segment in the industry where the manufacturer wants to deliver directly to the end user. ‘This has not only a serious impact on middlemen but also logistics service providers (LSP’s) who must have an intricate infrastructure at their disposal. They must have the ability to ship 100 pallets to 3 retailers but also ship 100 small orders directly to end users. Throughout Europe.’

‘In our industry food safety and sustainability are high on the agenda’, adds Eelco. ‘People – from consumers to producers and legislators – are more attentive to food safety. The same goes for sustainability. ‘We invest in energy efficient buildings for instance, solar panels, but also accommodate our clients to help them meet their sustainability ambition. Both require a lot of investments.’

The location, the high density of cold storage specialists and the favorable business and investment climate make the Netherlands the ideal location to enter the European market. Looking for a logistics partner? to know what to take into account and contact us today!