There are numerous crucial steps in a supply chain besides transportation. Product integrity is dependent on constant temperature maintenance. Historically, small farmers, retailers, and manufacturers have struggled to overcome barriers to widespread product distribution. Thanks to the rise of e-commerce in recent years, regional cold storage facilities have sprung up all over the country. Read on to learn why the emergence of these regional facilities has allowed smaller businesses to expand their distribution.
How Do Regional Cold Storage Facilities Benefit Small Businesses?
Regional cold storage facilities allow small businesses to cost-effectively expand their reach. The benefits of these regional centers include the following.
- More coverage means a more robust supply chain
- Greater staging ability
- Expanded market area
1. More Coverage Means a More Robust Supply Chain
One of the biggest challenges felt since the beginning of the COVID-19 pandemic has been a strained supply chain and the inability to keep up with cold storage demand. The demand for grocery deliveries is now higher than ever. Every step in the food supply chain is crucial and the fewer gaps in the chain, the better–especially when it comes to temperature-sensitive products. With a high demand for more cold storage facilities across the US, the rise of regional warehouses helps fill this need.
2. Greater Staging Ability
One of the reasons consumers love the e-commerce behemoth Amazon is because they’re able to purchase a wide range of products and have them delivered to their doorstep within just 1-2 days. Amazon is able to offer such rapid turnaround times because of its hefty investment in regional distribution facilities. These regional centers allow Amazon to decentralize its storage and distribution by staging a wide range of products across the US in anticipation of future purchases from its customers.
Smaller businesses can’t afford to invest in this type of network. However, working with third-party logistics providers (3PLs) that have regional refrigerated storage facilities gives them this ability without all of the upfront costs.
3. Expanded Market Area
Last but not least, regional refrigerated storage facilities via 3PLs empower small businesses to expand their reach far beyond their geographic location. Therefore, instead of serving a small local area of customers like a few cities or counties, small businesses with temperature-sensitive products can serve customers hundreds or thousands of miles away. Again, with a reasonable cost of entry and the ability to scale up or down based on demand and current market conditions.
Regional Cold Storage Facilities via a 3PL Solve Cold Chain Logistics Challenges
Regional cold storage facilities via 3PLs like CWI Logistics allow small businesses with temperature-sensitive products to expand their market reach with very little upfront investment. CWI has facilities spread all across Central Florida and works with a multitude of carriers and partners across the US. Since 1966, we’ve been serving manufacturers, retailers, farmers, grocers, and more.
Reach out to us today for all of your regional cold storage logistics needs!