Under Pressure

By April Terreri
Under Pressure
Cold Chain Report

From: Food Logistics Magazine July/August 2010 Issue

View full article here: http://www.foodlogistics.com/print/Food-Logistics/Under-Pressure/1$3906

The uncertain economy is putting more pressure than ever on the cold chain industry. Food manufacturers and distributors are looking to their warehousing and transportation providers for guidance to control costs while still expecting high-level services. Providers, meanwhile, are faced with tight capacity, decreasing inventory volumes, dramatic changes in customers’ supply chains and slow payment problems. Despite these harsh deterrents, providers are figuring out ways not only to stay in business, but to offer customers innovative and cost-effective solutions to manage their cold supply chains more efficiently. We will discuss some top trends affecting the industry today, followed by a roundtable discussion among industry participants.
The pressures to providers have been ramped up even more after the dismal year that was 2009, reports Jack Ampuja, president and CEO of Buffalo, NY-based Supply Chain Optimizers. “The top concern last year was simply to maintain revenues,” he says. “Just about everyone’s revenues and profit margins decreased and companies in the industry were simply trying to hold onto their market share.”