A Brief Guide to the Frozen Food Supply Chain
If you’re new to selling frozen foods and just getting into the industry, it’s important to know what to expect with the frozen food supply chain.
There are four central components that make up the frozen food supply chain, including:
Co-manufacturers
Third-party logistics centers (3PLs)
Intercity transport
Last-mile delivery
Here we’ll explore all four of these components and how they work in the frozen food industry.
Co-Manufacturers
Also known as co-men or co-packers, co-manufacturers are at the end of the production process. While they’re not always necessary, they may come into play if products require additional blending or specialized packaging. The co-man would be responsible for handling these final processes.
In many cases, the primary manufacturer would send the products to the co-manufacturer’s facility where the co-man blends the product or provides it with a final packaging solution.
Over time as companies begin shipping more of their products, they may want to hire multiple co-manufacturers to help them keep up, with the costs of additional co-men falling far below the costs of coast-to-coast shipping. In addition, businesses may work with an even larger number of third-party logistics companies.
3PLs
These companies provide clientele with storage and fulfillment warehouses, which can help reduce the cost of actually owning a warehouse. 3PLs can also handle a wide range of tasks, from packaging and picking to forwarding and delivery.
In addition to saving more money, 3PLs can help businesses streamline their operations and enable business owners to focus more on growing their brands and operations.
Intercity Transport
Frozen foods also require intercity transport in many cases. This entails the use of refrigerated trucks (i.e. reefers) that either chill or freeze food items.
With the help of co-manufacturers and 3PLs that use consistent chilling or freezing methods, intercity transport can maintain the quality of frozen food items regardless of how long the journey takes.
The costs associated with intercity transport will depend on numerous factors, including the length of delivery periods along with the distance traveled and the shipment’s weight and volume.
Depending on what you need, you can choose between truckload or less-than-truckload (LTL) trucking services.
Last-Mile Delivery
To deliver frozen foods and other products to consumers, the final length of the journey requires last-mile delivery. This refers to the delivery from 3PLs to consumers.
Last-mile delivery can require far more than a mile, depending on the distance between the 3PL and the buyer. In some cases, you may need last-mile delivery by air.
Some examples of companies providing last-mile delivery services include FedEx and UPS, and it’s important to keep in mind that the cost of last-mile delivery is often costly.
Get What You Need for a Complete Frozen Food Supply Chain
These are the four central components you’ll need for a frozen food supply chain, and they’re critical to organize to optimize product shipping and storage.
With so many options available, it can be difficult to settle on the right co-manufacturers, 3PLs, and other partners, but you must find the right ones to get the best results.
For more help locating the ideal partners that can help your business grow, speak with the experts at Gray Growth Consulting. We can inform you of everything you’ll need for a complete end-to-end supply chain. You’ll also learn how to keep that supply chain functioning optimally in the face of potential disruptions and other setbacks.