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Integrated logistics is a term used to describe the coordination and management of all aspects of the supply chain, from the procurement of raw materials to the delivery of finished products. It is a holistic approach that takes into account all elements of the supply chain in order to optimize efficiency and minimize costs.

The concept of integrated logistics has its origins in military planning, where the need to coordinate the movement of large numbers of people and supplies across long distances led to the development of sophisticated logistical systems. In recent years, integrated logistics has been adopted by many businesses as a way to streamline their operations and gain a competitive advantage.

Integrated logistics can be applied to any type of business, but it is particularly well-suited to companies that have a complex supply chain or that operate in multiple locations. By taking a holistic view of the supply chain, businesses can identify opportunities for efficiencies and cost savings.

There are many different elements that need to be considered when implementing an integrated logistics system. These include transportation, warehousing, inventory management, order fulfillment, information and control, packaging and unitisation, and customer service. In order to be successful, businesses need to have a clear understanding of their supply chain and how all of the different elements fit together.

Integrated logistics is a powerful tool that can help businesses to improve their operations and compete more effectively in today’s global marketplace. However, it is important to remember that no two supply chains are exactly alike, and what works for one company may not be the best solution for another. As such, it is important to work with a logistics partner that has the experience and expertise to tailor a solution that meets your specific needs.

Benefits of Partnering With Emdad Foods, An Expert Integrated Logistics Company

Integrated logistics is a complex and ever-changing field, which is why partnering with an expert integrated logistics service, like Emdad Foods, can offer significant advantages. 

Streamlined Operations

Emdad Foods has systems and processes in place to streamline your operation and make it as efficient as possible. This can save you time and money, while also reducing stress levels.

Improved Visibility

Emdad Foods provides you with real-time tracking and visibility of your shipments, so you always know where your goods are and when they will arrive.

Flexibility

Emdad Foods adapts to your changing needs and requirements, providing a flexible service that can grow and change as your business does.

Cost Savings

Working with Emdad Foods can help you to achieve significant cost savings, due to its economies of scale and buying power.

Peace of Mind

When you partner with a specialized, experienced, reliable, and reputable integrated logistics service, like Emdad Foods, you can be confident that your shipments will be handled expertly and efficiently, giving you peace of mind.

There are a number of integrated logistics services out there, but all of them are not created equal. If you are looking to improve your supply chain and achieve greater efficiency, partnering with Emdad Foods, a leading integrated logistics company is the way to go. You will enjoy all of the above benefits and more, making it an investment well worth considering.

Food safety is a major concern as there are legal authorities that monitor food and beverage standards, but there are safeguards in place for agricultural products before they leave farms or cross borders to reach end consumers. During transportation, there is a risk of contamination and diseases spread by pests and other carriers, which is why agricultural products need to undergo quarantine and inspection through carefully designed techniques and processes to ensure quality control to maintain agricultural product standards regardless of whether they are locally or internationally sourced. 

What Is Agricultural Quarantine and Inspection?

Agricultural quarantine or plant quarantine are legally enforced standards aimed at preventing pests and infections from multiplying and spreading to local products that can significantly impact and damage their yields. Typically, agricultural products and food items are inspected before they enter the country or local area to avoid the process of quarantine; however, as a security measure, products can be withheld in restricted areas even after they have gained entry into the region. 

There can be significant implications if agricultural quarantine and inspection regulations are not implemented properly as they came into existence when the aphid – grape phylloxera was brought into France from American grape vines over 150 years ago and caused the Great French Wine Blight that led to the decimation of the French wine industry. 

What Processes Are Involved In Agricultural Quarantine and Inspection?

Countries have their own unique set of policies and regulations related to agricultural quarantine and inspection as they might be more stringent when it comes to countries where agricultural products heavily contribute to the GDP. 

The standard process typically involves government officials in the agricultural quarantine and inspection program intercepting and examining agricultural products at points of entry into the country, including ports and cargo holds. These officials are well versed and trained in identifying healthy crops and food items from damaged ones, and upon identifying products that are infected, they work together with agricultural specialists to enforce a quarantine on the product until they are guaranteed not to possess a threat to any agricultural products grown on local farms and in the wild. 

The swift process of inspecting and isolating is effective as foreign agricultural products that have the potential to increase the vulnerability of local crops which are food items to foreign pests and diseases are prevented from coming into contact with local plants. 

Why Is Agricultural Quarantine and Inspection Important?

The agricultural quarantine and inspection process is the first and most effective defense against foreign parasites that can affect the local agricultural and subsequently the food and beverages industry, and it prevents governments from having to invest in pest eradication programs. Additionally, it also prevents local food crops from diminishing in value and diminishes the need for emergency payments for farmers whose crops are damaged by the new pests and diseases. 

Is the Demand for cold storage warehouses expected to remain continuous or become stagnant?

The growth of e-commerce and most recently, the COVID-19 Pandemic, have contributed to an increase in demand for industrial properties-especially warehouses.

Among the many subsectors in the industrial sector, an asset class which has been slowly growing attention however, is that of cold storage warehouses.

What are cold storage warehouses and why are they gaining popularity?

According to YY Lau, Country head of JLL Property Services (Malaysia) Sdn Bhd, it is a type of warehouse that comes with temperature control, hence allowing the storage of items requiring a specific temperature and environment. It is therefore used by sectors including Food & Beverage (F&B), medical and pharmaceutical, in addition to some items in the electrical and electronic (E& E) sector such as semiconductors, for which this type of environment is also needed.

Siva Shanker, CEO of Rahim & Co. International Sdn.Bhd, Real Estate Agency, says that cold storage warehouses are popular because there will always be food and other items that need to be kept in a temperature- controlled environment throughout their transportation from one point to another. 

According to Executive Chairman of REIT Managers Sdn Bhd D.S LaBrooy, the primary drivers of cold storage warehouses include closeness to population growth, changing consumer preferences and spending, as well as the growing demand for perishable goods. 

With consumers having becoming increasingly aware of health and wellness and the effect of food nutrients (especially protein) on their physical growth, this has led to a change in the consumption pattern of perishable foods including dairy products, fruits, vegetables and animal-based products which are rich in protein, states LaBrooy.

Under what temperature ranges should different types of foods be stored?

According to LaBrooy, different temperature levels are required for different sectors. As examples, chilled meats, dairy products and vegetables should be stored between 0 to -5”C, while frozen foods need to be kept at a range of -18 to 28” C.  

What will the overall Demand for cold storage warehouses look like?

Siva states there will be continuous demand for such facilities because the cost of infrastructure is very high, with it being necessary to build a cold room and not just a simple warehouse.

In order to avoid the costs associated with operating these facilities according to LaBrooy, most companies in need of refrigeration storage services would resort to outsourcing to industry operators.

Although the cost tends to vary based on the specifications of the warehouse, it may reach about 3 times the cost of a typical warehouse. In order to justify the comparatively high cost, a market study could be conducted by investors in order to analyze the Demand and recommend a suitable product or service in order to gain the best return on investment (ROI), says Lau.

In addition, LaBrooy mentions that the annual operating cost for cold chain businesses is higher per cubic foot, with the energy expense on its own accounting for 30% of total expenses. Hence with this industry being one that is energy intensive, the capital investment cost for cold chain providers tends to rise as a result of investments in back-up energy systems.

Another barrier to entry is high real-estate cost, since buying land and constructing a fully integrated cold storage facility with a storage capacity of 1 million cubic feet, requires a high capital investment, says LaBrooy. The location of the project is also a significant factor especially with cooling units being immobile. Acquiring enough land for building a cold storage facility, is surely a difficult task for small players.

Based on Siva’s opinion, demand for this service is stable with the quantities of both food and medicine being predictable. Hence according to, LaBrooy, this warehouse type is rarely built on assumptions, with the frozen foods industry benefiting from being inelastic since the demand for foods and pharmaceuticals tends to remain constant regardless of the economic condition of the country in question. As a result of the steady demand for frozen foods witnessed through various economic cycles, the potential risks of owning and operating cold storage facilities are reduced. 

Siva stresses however, that the demand for cold storage warehouses could potentially sky rocket from the COVID-19 vaccine, with there being no such rooms in Malaysia for storing these devices used to combat the virus.

Investing in this segment

In addition to LaBrooy’s view highlighted earlier that most companies requiring refrigeration storage services will resort to outsourcing from industry operators to avoid the huge costs related to their operation, Lau stresses that cold storage warehouses are leased since they are usually a part of the entire supply chain of cold chain logistics and that other support services will be required by these industries, such as the specialized transport of cold storage products. 

She also says that large scale food producers in Nestle and KFC and large-scale hypermarket chains such as Tesco and Aeon, are among the industries which find it more sustainable having their own cold chain warehouses, which will not only build to their own specifications but set up their own cold chain logistics arm as well. 

Hence, the industry is being evenly split between those with their own cold chain warehouses and those who resort to their outsourcing, stresses LaBrooy.

According to Siva, developers and investors will most of the time opt towards building a normal warehouse before putting in the infrastructure for developing a cold room to be rented out to third party (3PL) Logistics players – the key benefit for investing in this sector being that the rent per square foot is higher due to the high upfront capital (the rental of a cold storage warehouse being double or even more of that for a conventional warehouse, depending on infrastructure). 

He states that there are basically 2 scenarios: The 1^st is that of a conventional warehouse being built by a developer who then rents it out to cold room operators who add the infrastructure themselves, Since the infrastructure cost will be borne by the operator, the rental cost will remain at the normal price. As for the 2^nd scenario which involves the developer building to suit the specifications of a specific industry requiring a cold room, the rent would be higher depending on the infrastructure cost which was incurred by the developer. 

This view is also supported by LaBrooy who says there is no disadvantage to invest in this sector, with this type of asset providing a higher (ROI) than the traditional warehouse. 

What possible scenarios can be anticipated for the cold chain industry and cold chain warehousing?

LaBrooy says that the pandemic has had a positive impact on the cold chain industry, resulting in demand for cold chain warehousing, the harsh effects that trade restrictions have inflicted on the supply chain of every industry, has led to food manufacturers placing heavy emphasis on the storage of food products in order to increase their shelf-life – something which is expected to boost the cold storage market.

Lau expects the increasing demand for cold storage warehouses to remain on a long- term basis since the sectors boosting it can be deemed sustainable, especially the F&B, medical and pharmaceutical sectors among others. She states that due to the current market uncertainties being witnessed, the level of increase may vary in the future.

According to Siva, demand is expected to remain the same and will grow at a slower rate, at the same level with the growth of the population. The only game-changer he says, would be the COVID-19 vaccines.

In addition to being a game changer for warehouses, these vaccines will have an impact on the entire logistics chain since they also need to be transported in -80”C vehicles, states Siva

Despite cold storage warehouses being in demand, they are not expected to become an asset class in their own right by property experts. 

Industries which require cold chain logistics are considering setting up their own arm as opposed to either buying or leasing old storage warehouses from developers.

The Global Smart Foods Logistics Market which was valued at USD 7.3 Billion during 2019, is expected to reach USD 14.8 Billion by 2025. This market has emerged from the benefits of enabling the ease of procuring to the tracking of packages in transit. 

As a result of the ability to receive fresh items with real access to the movement of food, this market pioneered by Internet of Things (IOT), is making a huge difference.  

What are the key drivers behind the growth of the Smart Foods Logistics Market?

This market has grown rapidly owing to the converging of logistics and technology as well as cloud- based software thus enabling each of warehouse, transport and consumer information to be connected tightly through the supply chain.

With the continued growth of the digital economy, the Internet of Things 

(IOT) Technology has transformed from a futuristic idea to a tactical tool which can be utilized by logistics companies in their supply chains. Hence through sensors and IOT tools, traditional asset tracking is being transformed to intelligent supply chains which are capable of earning logistics companies a higher Return on Investment (ROI). 

A major benefit for the food industry, is that these IOT enabled sensors are offering real time knowledge of asset fleet location, fleet motion speed, temperature conditions and other crucial data sets. 

In addition, the sensors assist allied stakeholders in monitoring food safety data points, thus ensuring efficient cold chain management. 

This data enables compliance adherence with local and global regulations. Through using Automated Hazard Analysis Critical Control Points (HACCP) checklists during each of the production, manufacturing, and transporting processes, access to meaningful data can be obtained by companies, which is necessary for implementing food safety solutions. 
Further, food laws such as the Food and Drug Safety Act, has exerted significant pressure on supply chains to record additional information, thereby increasing transparency.

How has the COVID-19 Pandemic affected the Supply Chain Management of Businesses 

 With the pandemic having drastic effects on the global economy, all end-user industries were heavily disrupted. Due to either remote working conditions or complete lockdowns and the halting of operations, the supply chain management SCM) of businesses were also hard hit.

In order to prevent their operations from being disrupted, businesses intensified their use of technology and digitalization to maximum levels.

The Logistics industry was also severely affected in several ways, with the Logistics Managers Index (LMI), falling to its lowest figure during April,2020 – this index being based on 8 key components involving inventory, warehousing and transportation. 

What are the key market trends in light of the pandemic?

Cold Chain Monitoring to Hold a Significant Share

Factors in rapidly changing food habits, increased demand for packaged food and strict regulations regarding packing and storage, have resulted in a major shift from manufacturers to retailers. Hence, the key reasons driving automation and the adopting of technologies in the logistics processes for foods and beverages, have been the processes focusing   on zero contamination, precise and high -speed storage, in addition to retrieval operations.

 A Cold Chain Monitoring solution, assists food manufacturers in managing the storage, shipment and distribution of products requiring a temperature- controlled environment in an efficient manner. Hence adopting cold chain monitoring will guarantee stable temperatures for the storage and transportation of goods. 

Technologies like Bluetooth Low Energy (BLE) beacons with temperature sensors enable tracking the location of the goods at relevant checkpoints and the continuous tracing of temperature data during shipment, or throughout the supply chain.
Multiple food logistics companies are engaging in expansion activities. 

Major Share held by North America in the Smart Logistics Market

With the presence of many vendors and increasing concerns to optimize resources and eliminate waste, this region is expected to hold the largest share in adopting Smart Logistics. Due to the strong presence of the manufacturing, transportation and logistics industries, North America is considered one of the most prominent asset tracking markets. Further, government initiatives and regulations in several end-user industries are expected to be key factors in enhancing the region’s market growth.

In addition to having a robust presence of players offering IOT solutions, the region has witnessed partnerships between government agencies and leaders engaged with public, private and non- profit organizations in resolving food wastage issues due to concerns regarding this matter. 

Competitive Landscape
 With the smart food logistics market being moderately divided, major players with prominent market shares are focusing on expanding their customer base across foreign countries.  In order to increase their shares and profitability, these companies are leveraging on strategic collaboration initiatives

The consumption of meat throughout the world is rapidly increasing, as people are eating more meat than ever regardless of type, whether it is chicken, beef, or lamb- especially having become a part of life which cannot be resisted.

The traditional method in which meat is produced through the farming of animals however, is placing enormous strains on our resources such as land and water, making it unsustainable for the environment 

Specifically, biodiversity loss can be accounted for by the way in which we farm our food. With huge areas of forest being lost in order to be converted to agricultural land, much of it is used for livestock or to grow crops for their feeding. In addition, livestock are responsible for around 14.5% of greenhouse gas emissions from human activity.

Putting aside the above, there are also major ethical concerns as many people want animals to lead good lives.

In one of its recent reports, the UN has called on all of us to undergo a major cut in our meat consumption. What if there was a way however, in which we could continue to eat the same food we enjoy eating such as a hamburger sandwich, free of any guilt?

Because of the negative consequences described above, a solution must be found through a major shift in the approach taken. 

One of these solutions – clean meat cultivated in the lab, could provide just the right answer to such a call. 

The approach involves growing meat from meat animal cells in a process known as cell-based agriculture. 

Consider the example of growing a “Clean Burger” which is produced through taking a small tissue sample from an animal via biopsy. After the cells are isolated and cultured in the lab, they are grown and transformed in bioreactors at a large scale. The cell mass is then processed and formed into burger patties. 

Clean -cultured meat offers the solution since the need to breed, raise and slaughter animals is eliminated, whereby reducing the environmental impact of traditional meat production.

With this in mind, it is interesting to note that a rise by 70% is expected to take place in the global demand for meat and milk by 2050. Switching to cultured meet, will cause agricultural greenhouse gas emissions to be reduced by up to 96%. 

Continued population growth however, is not the only factor to account for the major rise anticipated in the demand for meat, with economic development and the expanding middle classes, also being crucial factors. People will simply eat more meat as their incomes rise. 

In addition to reducing greenhouse gas emission effects, producing clean meat will lead to the use of 99% less land and up to 96% less water.

From an ethical perspective, cultured meat generated from a limited number of animal cells at the start of the process, will avoid concerns related to animal welfare raised by intensive farming methods. 

Further, there is the potential to create clean meat with additional health related benefits such as extra nutrients or lower contaminants such as antibiotics, pathogens or microplastics, most likely increasing the possibility that we can enjoy the luxury of eating chicken with added vitamins or beef with omega-3 fats. 

Nowadays, the mass production of clean meat is being researched by a large number of start-ups throughout the world, with the objective of making affordable products available to consumers. It is still however, very early for such an emerging industry, with efficient production of cultured meat remaining a major challenge.

While eating clean cultivated meat today, may still be a far distant reality, momentum is being gained at a rapid pace in this industry. During 2013, a lab- grown burger was eaten by food critics on live TV- a burger which had a price tag of $300,000.00 back then. Since the period specified, the price has dramatically fallen to $ 50.00 when it will be launched within the coming years. We may therefore, not need to wait too long before having the advantage of eating clean cultivated meat. products. 

A major challenge which lies ahead will be to convince restaurants to switch to clean meat – a more humane alternative with a lower environmental cost. 

Clean cultivated meat will not only be a major boost for manufacturing, research and development (R&D) and science, but also for the governments putting an investment in it. 

Just as investing in mobile technology led to the availability of mobile phones without chords, so too will investing in the production of clean meat lead to the availability of meat without live animals for our consumption. 

Taking the COVID-19 Pandemic into consideration and the major effects it has inflicted on virtually the entire globe, tremendous efforts are being undergone by both food safety and quality assurance professionals to ensure the continuity of the global supply chain. With cases rising exponentially, major hardships are being endured by the world’s most important food producing and exporting countries. 

According to the current landscape and while there is a major demand by consumers for food products which are shelf stable such as macaroni rice, vegetables and fruits with high Vitamin C standards, the restrictions imposed as a result of the pandemic have limited production and caused a delay in transportation. 

With many factories working in a safe mode and fewer workers harvesting fruits and vegetables in the primary sector, food production has been highly affected. Further, several difficulties are being encountered in the transportation of food products including delays, lack of space on airplanes and increased prices. – issues which have created food safety challenges across the industry.

When taking the quality and safety of the different food products, buyers in food manufacturing and retail companies may have concerns regarding the quality of the products imported from these countries heavily hit by the pandemic. They may request suppliers in these countries therefore, to provide assurances regarding the safety and compliance of production processes, as well as additional documents – a task considered challenging for companies because of the restrictions applied on a national level for controlling the outbreak. Organizations already meeting food safety standards, tend to have revised guidelines to allow for remote audits to ensure that necessary controls are in place to avoid abuses which can compromise the integrity of the remote audit process. These can include live video checks of the manufacturing process and the general hygiene of the site, among others.

Another major food safety challenge which ought to be highlighted is supplier verification. With on-site audits being forbidden due to travel restrictions, the most important tool for verifying suppliers is not available. As a result, authorities such as the FDA are launching new guidelines for alternatives. With this policy being issued to avoid disruptions in the supply chain, companies need to consider other options with the absence of on-site audits such as Food Safety Plans, sampling, testing and reviewing food safety records on a regular basis. 

A third major challenge which will be discussed is delays in the supply chain for foods. 

With major ports around the world imposing a 14- day quarantine period for vessels either arriving from or transiting via China, these transportation delays may result in extended storage which will in turn, have negative effects on the quality and safety of the products. An example worth mentioning is the development of toxins in cereals and nuts.

Given this new landscape, the supply chain will be affected for at least several months, resulting in fluctuating environments which will surely affect the way food safety professionals must perform risk estimation. This new reality imposed as a result of the pandemic, calls for remote supplier verification, virtual audits and the availability of large quantities of data to support decision making. 

With the outbreak of the COVID-19 pandemic and the ongoing hardships it continues to inflict worldwide, food supplies have been disrupted throughout the entire globe. 

Major steps will need to be taken by governments in order to generate sustainable results in the long run, including assisting local farmers in increasing their productivity, reinforcement of supply chains, facilitating imports, and the creation of a public entity for handling food security. 

Overall and according to the Global Food Security Index based on which criteria such as availability, affordability and quality of food supplies are taken into consideration, GCC countries are considered among the more secure when compared with other nations. As a region however, it remains dependent on imports, due to the lack of control it has on its food sources. Specifically, about 85% of the food supplies of GCC Countries are imported (rice imports comprising all consumption, with vegetables and meat comprising approximately 56% and 62%, respectively). 

Since a pandemic has the negative effect of disrupting a supply chain, countries which are import reliant, become vulnerable to shortages.

In order to minimize such disruptions, immediate measures for intervention have been launched by GCC governments including providing financial exemptions, credits to farmers and agri-businesses, in addition to mobility exemptions for agricultural workers during lockdown periods, among others.  The specified steps taken have been successful in preserving food security in the short run. 

The specified intervention measures taken by GCC governments, need to be complemented with sustainable ones aimed at protecting food imports against future shocks, as well as restructuring food supply chains. 

First of all, the local food supply needs to be increased through implementing leading agricultural practices applied in other parts of the world, and which are designed to increase farmer productivity as much as possible. Examples of such practices include genetically modified crops, desert agriculture, seawater farming, growing crops in vertical stacks and precision agriculture whereby data and technology are used to increase yields. 

Also, reinforcing supply chains throughout the region can make food supplies become handy, thus preparing the region for future possible disruptions. In this regard, GCC governments can help both producers and consumers transition to e-markets.  Through gathering information, these digital tools make it available to all participants, thus helping manage supply chain risks, identifying weaknesses in the value- chain, in addition to minimizing food waste.

Despite requiring less labor, switching to online platforms will boost productivity and serve as a backup against future shocks. 

Further, governments can make significant progress in countries which do not have a mature private sector in the food industry, through creating a government run company tasked with providing stable supplies of key commodities until the private sector can take over.

Although the interventions taken by GCC governments for stabilizing food supplies were critical in overcoming the disruptions caused as a result of COVID-19, they are only a first step. Measures which need to be implemented in the long term by these governments include building up local food supplies, reinforcing supply chains and increasing import flow by using a transitional entity to guarantee stable supplies until the private sector can fully take over. 

Governments can ensure their preparation by taking the correct necessary steps today – especially with future disruptions in the supply of food being almost guaranteed.