Increase Business Profits With Temperature Monitors
One of the biggest struggles for businesses with temperature regulated products is keeping them cold. When you have to transport your cold products, you’re part of the cold chain industry. In essence, this means that you have to keep your stock cold while it’s in transport to its final destination. Food products and many pharmaceuticals are some of the best examples of this.
Losing products due to issues in the cold chain can cost your business a lot of money, connections, and ultimately cut into your profit. Of course, the cold chain industry isn’t the only example of businesses that rely on consistent temperatures to succeed. Plenty of production based and service industries rely on optimal temperatures to keep their business going. When a temperature goes outside of the intended ranges, it’s called a temperature excursion.
Without the proper temperature, these businesses can’t survive, or make a profit. With that in mind, you should know that a temperature monitoring system can decrease business losses and ultimately increase your profits.
What Do Businesses Lose From Poor Temperature Control?
Perhaps one of the best examples of monetary and product loss from poor temperature control comes from the pharmaceutical industry. In fact, pharmaceuticals are one of the biggest contributors to the cold chain industry. As drugs go through transport, a number of things can cause them to reach temperatures that make them unusable.
As a result, the pharmaceutical industry as a whole loses about $35 billion annually as a result of spoiled medications from improper temperature control.
The food industry is another area that we can see significant product and monetary loss in, especially when it comes to the cold chain. Errors within the cold chain ultimately result in a loss of 20% of food transported globally. This isn’t just a huge monetary loss, it’s also a huge contributor to the world’s food waste.
No matter what industry you’re in, temperature errors within the cold chain can bring staggering losses. In fact, 20% of total revenue going through the cold chain is lost as a result of temperature excursions. Losing ⅕ of your business because of a change in temperature during transportation is no small matter for any company.
What Causes Temperature Excursions?
Temperature excursions can happen for a variety of reasons, and the longer products are in transport, the higher the risk of a temperature excursion. Improper packaging, shipping delays, and poor communication between manufacturers and shipping services are only a few examples.
Common causes of temperature excursions:
- Unstable shipping container environments
- Packaging that lacks proper insulation
- Delays in the transport process
- Local and regional restrictions/regulations regarding certain products
- Unspecified shipping conditions and instructions
- Issues with loading and unloading products
Unfortunately, no matter how efficient any shipping service is, there are always things that can prevent a timely, temperature controlled shipment. Changing climate conditions can impact shipments in any region worldwide. Ultimately preventing items from reaching their destination before a temperature excursion occurs. Likewise, trailers and shipping containers can have failures that alter the environment within the vessel itself.
How to Protect Your Products and Profit
When we look at the big picture, we can really see how much temperature excursions affect businesses, and their bottom lines. Insurance companies may cover part, or even all, of the lost product value. However, that compensation doesn’t make up for time and clients you may lose. Unusable products delay any profit, and can damage a business’s reputation and future, not to mention the safety of those products’ recipients.
What can you do to protect your products, and your business’s profit?
Thankfully, technology provides us with solutions that can reduce the time, cost, and manpower involved in cold chain products. Temperature sensors that are part of a larger temperature monitoring system can protect your products, even when they’re on a trip across the globe.
These temperature monitoring systems give you real time updates on your products, and the conditions they’re in. You can see every step of your product’s journey until they reach the intended destination. Not only that, the logs from the temperature monitoring system give your clients and partners peace of mind. They need to know that everything they receive is in the same good condition that you sent it in.
Your business can place these sensors in any critical location, whether it’s within the shipping vessel, or the packaging itself. You can monitor current conditions and a history of readings from the sensor, to ensure that your packages avoid temperature excursions throughout the entire transport. Many temperature monitoring systems also include an alert system. These alerts notify you (or the designated personnel) as soon as they detect an improper temperature. Ultimately, it empowers you to take the necessary action to correct the problem before it damages your product.