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a report showing the average age
of a cold-storage warehouse in the U.S. is 42 years. Conrad agrees. Availability
of frozen and refrigerated pallet positions is “severely limited,” he says. “Worse, much of the total number of cold space available is
Issue 5 2021 - FBJNA
at older facilities in out-of-the-way locations.” So,
he says, “New Cold’s
approach is to build large, state-of- the-art locations at the corner of Main Street and Main Street.” In other words, food fast,
delivered at e-commerce speed and convenience.
DB Schenker Expands Indianapolis Hub
DB Schenker Americas has expanded its existing Indianapolis logistics facility to include an additional 5,000sf cold room and 50,000sf of controlled room temperature space. The expanded facility will support the pharmaceutical industry’s growing need for temperature-controlled logistics space. By building the additions in Indianapolis, DB Schenker can leverage a less-congested U.S. airport to fly direct to-and- from Luxembourg via its own- controlled flights. With both Indianapolis
and Luxembourg serving as major centers of vaccine/ pharmaceutical manufacturing activity, DB Schenker is facilitating the fast and safe delivery of vaccines, medicines, supplies, and COVID-19 test kits to the recipients who need them. Open since 2006, the
Indianapolis facility now incorporates 9,000sf of +2C to +8C space; 100,000 of +15C to +25C space, and dedicated capacity on DB Schenker’s own- controlled flights to and from Luxembourg. Those flights feature dedicated, temperature- controlled capacity. The facility is Good
Distribution Practice-compliant, with all freight assembled within the temperature- controlled rooms before being loaded onto the aircraſt for shipping. Once onsite, the storage of the controlled products can be mapped and validated according to industry guidelines, and value-added services can be performed right within the temperature- controlled environment. Also at the Indianapolis
location, DB Schenker has added state-of-the-art refrigerated trucks for the transport of key pharmaceutical and health care products. Equipped with electric standby capabilities, these vehicles can be plugged
into an outlet and turned off when they aren’t moving. “We’ve covered all of the
bases from a compliance perspective,” said Benno Forster, Senior Vice President, Head of Operations and Procurement, Americas at DB Schenker, “while also giving health care
and pharmaceutical companies an end-to-end solution that’s fully temperature controlled from door-to-door.” The cold rooms were
designed to incorporate airplane pallets within the designated temperature zones. That means freight can be loaded on a just-in- time basis without ever having to be exposed to room or warm temperatures. Benjamin Zervas, Head
of Airfreight Management Healthcare, Americas at DB Schenker, said the company’s decision to expand the Indianapolis facility was strategic and based on its geographic location. “As the major airports
in the U.S. become more congested, smaller airports like Indianapolis and Luxembourg have become more suitable for moving temperature-controlled healthcare shipments.,” said Zervas. “We can move directly from the tarmac to our facility, thus
reducing any risks of
temperature deviation during tarmac operation.” Current investments made
at the Indianapolis facility are part of DB Schenker’s ongoing engagement in the Healthcare Logistics space. Its vertical market focused solution DB SCHENKERlife+ includes a full suite of transportation and logistics services, extensive global network, strict adherence to local and international compliance, and superior end- to-end visibility. These services enable clients’ supply chains with agility, control, and speed to market.
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“Demand for temperature-sensitive goods has soared, especially protein destined for China.” -- Sarah Schlueter, Hapag-Lloyd
To illustrate, Michael Carlisle
talks cheese. The Director of Logistics
Operations at United States Cold Storage, Carlisle mentions a large customer that needed to improve its delivery time to Walmart. The nation’s third-largest provider of public refrigerated
warehousing, with 280 million cubic feet of temperature- controlled and distribution space in 38 U.S. locations, the company was already in the process of consolidating customers into one vendor pool, he says. ”Aſter several weeks of working with Walmart and the customer,
19
the cheese wheels rolling.” So, aſter a long, cold year,
C-suiters and experts sound pretty chili about the current reefer madness, while keeping an eye on warming trends. “The container shortage and
US Cold implemented the vendor pool and improved on-time scores by 20%,” he says. “We’re keeping
other COVID-related challenges are causing a lot of rethinking around supply chain,” as Conrad puts it. “We look for the strategy of ‘just-in-time inventory’ to wane a bit and for there to be some return to building inventories.”
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