Worldwide, the life sciences sector spends around $14 billion/year on the transport and storage of products that need to be kept refrigerated or frozen. However, inefficiencies in existing cold chain logistics (temperature monitoring and tracking) have been leading to significant losses globally —
- According to IATA, poor cold chain management costs the pharmaceutical industry between $2.5 and $12.5 billion annually.
- Additionally, the UN estimates that nearly 1.6 billion tons of food are wasted yearly, with up to 30% preventable through better cold chain systems.
In other words, reliable temperature and humidity monitoring is indispensable — especially when 40 percent of various food products being transported require proper refrigeration facilities during transportation.
Internet of Things: IoT-Based Cold Chain Monitoring
We can make cold chain supply management more efficient and reliable through one of the gems of Industry 4.0 — the Internet of Things or IoT. The IoT-based cold chain monitoring has emerged as a game-changer, offering real-time tracking, communication, and visibility into cold chain temperature, humidity, and location data throughout the distribution cycle.
Before we discuss the technology, let’s first understand the challenges across Indian cold chain logistics that can be solved through IoT integration.
Visibility and Communication Challenges Across Indian Cold Chain Logistics
The National Center for Cold Chain Development (NCCD) claims to have approximately 31 mill MT of cold storage infrastructure, but a meager reefer transport support of approximately 7000 vehicles.
In other words, India has transport availability (reefer vans/trucks) for only 12-15 percent of storage capacity for an estimated turn-around of one week.
A double whammy — not having adequate visibility on the reefers while struggling to meet the increasing demand for transportation. In India, the cold chain logistics industry works through these tracking and visibility-related challenges —
Low Adoption of Basic Tracking and Monitoring Systems
Many cold chain fleets in India lack fundamental tracking solutions, making real-time temperature, humidity, and location tracking of reefers difficult.
Although IoT adoption in cold chain logistics is growing at 14.8 percent CAGR globally, India lags way behind due to cost barriers. (MarketsandMarkets, Cold Chain IoT Report, 2023)
Interoperability Issues B/w Tracking Devices and Fleet Management Solutions
Cold chain fleets often use fragmented systems where hardware sensors do not integrate seamlessly with software platforms like fleet management solutions. This reduces operational efficiency.
A McKinsey report highlights that standardized systems could improve cold chain logistics by up to 30 percent. (McKinsey & Company, The Future of Cold Chain, 2022)
Without interoperability, reefers carrying dairy or pharmaceuticals risk compromised product quality due to data silos and delayed responses.
Network Connectivity Gaps in Remote Areas
India’s cold chain fleets frequently traverse rural areas with poor cellular coverage, interrupting communication with IoT devices.
According to IBEF, 68 percent of India’s logistics infrastructure is still developing. (IBEF, Indian Logistics Market Overview, 2023)
Without reliable satellite or hybrid networks or real-time cold chain monitoring, perishables like fresh fruits may experience temperature excursions due to delays in alerts for corrective actions.
Inadequate Real-Time Data on Temperature and Location During Transit
The lack of continuous data feeds in transit hinders proactive decision-making. IATA estimates that 20 percent of temperature-sensitive pharma products experience spoilage due to inadequate monitoring. (IATA, Pharma Logistics Report, 2023)
Unmonitored temperature breaches in refrigerated trucks can spoil entire consignments of frozen seafood, leading to major revenue losses and safety concerns.
Limited Integration with Last-Mile Delivery Solutions for Temperature Control
Cold chain breakdowns often occur during last-mile delivery. In India, integrating temperature sensors into delivery vans or reefers for e-commerce groceries or meal kits is critical to prevent spoilage and meet growing consumer demand.
Need for IoT-Based Cold Chain Monitoring and Logistics Solutions
India’s cold chain logistics sector plays a critical role in ensuring the safety and efficacy of temperature-sensitive products, particularly pharmaceuticals, perishables, and vaccines.
- Berg Insight reports that the number of IoT-enabled refrigerated cargo shipments utilizing cellular or satellite communications reached 725,000 units globally in 2022. This figure is projected to grow to 1.2 million units by 2027.
However, challenges like infrastructure gaps, high costs, and regulatory compliance often hinder its efficiency. The adoption of IoT in cold chain management offers transformative monitoring solutions to address these issues.
Preventing Drug Spoilage
In a country like India, where extreme weather conditions and infrastructure limitations pose significant risks, IoT-enabled temperature monitoring allows for real-time decision-making.
Sensors installed in refrigerated trucks and storage units ensure that products like vaccines and drugs remain within their prescribed temperature ranges.
Immediate alerts for deviations allow corrective actions, thereby minimizing losses due to spoilage—a critical factor for ensuring public health.
Enhancing Transparency
IoT provides end-to-end visibility of a product’s journey through the cold chain. This transparency is vital in India, where supply chains often span vast geographies, from rural production hubs to urban distribution centers.
Companies can track every stage—storage, transport, and delivery—via IoT-enabled dashboards, ensuring accountability and improving customer confidence in product integrity.
Reducing Human Error
Traditional cold chain operations in India often rely on manual processes prone to inaccuracies.
IoT automates data collection, reporting, and analysis, significantly reducing the scope for human error.
For example, automated systems can instantly log temperature changes and trigger alerts, enabling quicker and more precise responses.
Ensuring Compliance
India’s pharmaceutical and food sectors face stringent regulatory requirements, including adherence to Good Distribution Practices (GDP) and Food Safety and Standards Authority of India (FSSAI) guidelines.
IoT systems simplify compliance by automatically logging critical data like temperature, humidity, and transit times. These systems also generate comprehensive reports for audits, reducing administrative burden and improving adherence to regulatory standards.
Saving Costs and Optimizing Efficiency
In a cost-sensitive market like India, IoT is a game-changer that reduces financial losses. Preventing spoilage and optimizing transportation routes allows companies to achieve significant savings.
Advanced route optimization powered by IoT not only reduce your fuel expenses but also ensures timely deliveries, crucial for maintaining product quality in a diverse and often unpredictable logistical landscape.
Real-World Uses Cases for IoT-Based Cold Chain Monitoring
Healthcare, Pharma, and Specialty Goods
Take the example of a vaccine shipment that must be kept between 2°C and 8°C. If the temperature rises even slightly, it could render the vaccines ineffective. IoT solutions for cold chain logistics can continuously monitor temperature, humidity, and location in real time.
- At least 25% of vaccines in India become ineffective before reaching doctors and patients due to the lack of proper cold chain supply, leading to temperature excursions that compromise vaccine efficacy.
Companies like Pfizer used IoT-enabled tracking for their COVID-19 vaccine shipments, ensuring precise temperature control during global distribution. Cold chain logistics solutions for pharmaceuticals prevent temperature excursions by triggering immediate alerts for corrective action. (IATA, Pharma Logistics Report, 2023)
Food and Agriculture
In India, post-harvest losses amount to nearly 40 percent of produce. IoT technology offers a comprehensive monitoring solution. Imagine a mango distributor tracking temperature and humidity levels from farm to port. Smart sensors detect any deviation in real time, ensuring freshness on arrival.
Companies distributing perishables rely on IoT to enhance quality control and reduce wastage. Integrating IoT into existing cold chain logistics can help India significantly cut food losses and boost farmers’ incomes. (FAO, Global Food Losses and Waste Report, 2023)
Fresh Dairies
Milk is highly perishable, and maintaining the cold chain from collection centers to processing units is critical. Amul, India’s leading dairy brand, uses IoT-based refrigeration systems to monitor milk tankers’ temperature in transit.
- The dairy sector, producing over 190 million tons of milk annually, relies heavily on cold chain logistics to prevent spoilage and extend shelf life.
IoT alerts help prevent spoilage by maintaining optimal cooling. This technology not only protects freshness but also adheres to strict FSSAI regulations on dairy safety. (IBEF, Indian Dairy Sector Overview, 2023)
Chemicals
Transporting chemicals like ammonia or liquefied gases requires constant temperature and pressure monitoring. IoT sensors in chemical tankers detect dangerous pressure changes and send instant alerts to prevent accidents.
For example, companies transporting fertilizers and industrial chemicals have significantly reduced leakage incidents by adopting IoT systems. This ensures safety and compliance with hazardous material transport regulations. (McKinsey & Company, IoT in Chemical Logistics, 2022)
Traditional Cold Chain vs. IoT-Enhanced Cold Chain
| Feature | Traditional Cold Chain | IoT-Enhanced Cold Chain |
|---|---|---|
| Temperature Monitoring | Manual, periodic checks | Real-time, automated 24/7 monitoring |
| Alert System | No immediate alerts | Instant alerts via SMS, email, or apps |
| Data Logging | Manual data entry, prone to errors | Automatic logging, no human error |
| Location Tracking | Limited tracking | Real-time GPS tracking |
| Preventive Action | Reactive (after the damage is done) | Proactive (fixes problems before damage occurs) |
| Regulatory Compliance | Time-consuming manual reporting | Automated reports, easy compliance |
FleetRobo: Encouraging Increased IoT Adoption for Cold Chain
The sales of temperature-sensitive products are rising at more than 10% annually, twice the overall growth rate of the pharma sector. The size of the India Cold Chain Logistics Market, too, is expected to grow from USD 9.75 billion in 2023 to USD 12.85 billion by 2028, at a CAGR of 5.67% during the forecast period (2023–2028).
Given such enormous growth, the integration of IoT-based cold chain logistics solution is no longer optional but imperative. With the growing demand for temperature-sensitive products such as vaccines (especially during health emergencies like the COVID-19 pandemic) and fresh produce distribution, IoT solutions for cold chain logistics like FleetRobo will only help enhance operational efficiency, reduce waste, and strengthen supply chain resilience.
As adoption increases, supported by government initiatives and technological advancements, the future of cold chain logistics in India looks increasingly robust and reliable.
