Ep. 12 - Automating the Freezer: The Future of Cold Storage Ops

Cold chain is one of those supply chain functions everyone relies on, yet few people really understand until something melts, spoils, or gets rejected at the dock. We sit down with Cindy Parker, Director of Operations at Americold, to unpack what modern cold chain logistics actually looks like and why it has shifted from “storage at temperature” into a true operations partner for food, grocery, export, and emerging pharmaceutical cold chain needs.

We get specific about what large retailers now care about most: on-time shipping, product quality, and cost discipline. Sandy explains where suppliers commonly stumble, from weak packaging that collapses over longer dwell times to late communication that forces expensive last-minute labor and space decisions. We also dig into why forecasting matters even before EDI kicks in, and why the best cold chain relationships feel like a third leg of a production facility rather than a disconnected warehouse.

From there we move into the realities of running temperature-controlled warehousing: labor and power costs, sustainability pressure to keep food out of landfill, and extreme seasonality like the holiday turkey rush that sites plan for all year. We also explore the tech wave hitting cold storage, including automated freezer facilities that keep people out of the cold, AI-supported labor planning, safety tools that flag risky lifting, and real-time inventory and temperature monitoring that customers increasingly expect. Finally, we talk traceability and FSMA 204, plus the unsexy spot where many temperature excursions happen: the trailer-to-dock transition.

If you work in supply chain, operations, retail, food safety, or logistics planning, you’ll walk away with practical ways to cut cold chain cost and reduce risk. Subscribe, share this with a teammate, and leave a review with your biggest cold chain challenge.

Transcript

Meet Americold Operations Leader

Cold Chain Becomes A Service Partner

SPEAKER_01 0:08

I want to clarify that this podcast is distinct from my responsibilities as a professor in the CMM Walton College of Business. Nonetheless, it aligns with my aspiration to provide practical insights to professionals and business by showcasing companies and people that can enhance your ability to manage, lead, and strategize and market effectively and the retail value chain. And now without further ado, let's get into the exciting episode. I have with me today Sandy Parker, who is Director of Operations for Americold. So thank you so much, uh, Sandy, for joining us today. Yeah. I think this is the first time I've covered cold chain uh directly uh on this podcast. And it's so important. It's surprising I haven't done it yet. So um and it's great to talk to Analama with Walton College about this. Uh but for people who aren't familiar with cold chain logistics, would you mind explaining a little bit about modern cold chain and also how it has changed over the past 10 to 15 years?

SPEAKER_00 1:18

Aaron Powell So, you know, in in years past, it was more about just a cold box. It was more about just holding temperatures and you know, shipping and receiving product. Um recent in recent years, it's more become more about value-added services. What else can we provide a customer while their product is in our care? And, you know, that could be blast freezing or exporting or, you know, a lot of uh copacking or things like that. So it's it's about being a partner, not just storing your product, but being a partner and being a a third leg maybe of your production facility.

SPEAKER_01 1:52

I would think copacking would be a cold job. Isn't that co-packing kind of a labor-intensive?

SPEAKER_00 1:59

Yes, we and we normally do it on our docks, which is at 35 to 38 degrees. We don't do it in the in the minus five freezers. We bring it out to the dock in a in a kind of a production, more of a production area. Because if you go into a a poultry production facility, it's going to be 35 to 38 degrees. So we we can bring it out in that area. We just have to make sure that we don't leave it in in that area for very long. Once we get it co-packed, it has to go back in the freezer.

SPEAKER_01 2:22

What companies do you primarily support? I mean, food, grocery, pharmaceuticals, frozen, fresh.

Retailer Demands Forecasting And EDI

SPEAKER_00 2:29

Um we we support all nodes of the supply chain. Um we do a lot of grocery, primarily food and grocery. Um we do either uh we support on the ingredient side. We can supply a facility with ingredients for their production, or we can have um we can store the finished goods on the other side. At one of our uh facilities here in Arkansas, we have a customer that our we have two places there close to the their production facility, and one of our facilities has their ingredients. Our the ingredients go to their production, and then once the finished product is done, it goes to another one of our facilities and we store the finished product for distribution. Um we also do export-import. I mean, every node of the supply chain we cover. Um we are getting more into the pharmaceuticals, trying to get in that area and the in the not traditional cold chain areas. But yeah, we're we're trying to branch out into those as well.

SPEAKER_01 3:26

So, Cindy, what are some misconceptions about cold chain?

SPEAKER_00 3:31

Um, it would be that that um sometimes our customers think that if they it's just everything's push of a button, that if they give us something that we should be able to just push a button and it's just gonna magically happen. But there's a lot of scheduling and planning and things like that that go into us being able to support what they're asking for.

SPEAKER_01 3:49

That's great. Um so how have the expectations of large retailers like Walmart, for example, changed in recent years when it comes to cold chain performance?

SPEAKER_00 4:01

They used to, as long as we shipped it, it was okay. But now it's more about did we ship it on time and how much did it cost? It we really got to focus on the things that are matter to them. They've got they want to make sure that it's a good quality, is it's it's arriving on time, and um, how much is it gonna cost me? They don't they don't want to that's our part of the the the supply chain is very cost um centric. You know, they they're not getting anything out of it except for the delivery of it.

SPEAKER_01 4:32

Got it. And where do suppliers most often fall short when trying to meet retailer cold chain requirements?

SPEAKER_00 4:42

Um a lot of times we have a problem with packaging. Like if it's in the warehouse and it's gonna sit for a long time, maybe they what the the boxes or whatever they're using are is not exactly the best quality. So we can have leaning pallets or compressed boxes, and um, that causes a problem for us, obviously.

SPEAKER_01 5:02

Which suppliers are from your perspective, uh what separates suppliers that are easy to do business with from a cold chain perspective uh versus ones that are difficult to do business with?

SPEAKER_00 5:17

Um communication. It if it's all about communication. The more they communicate with us, the better we are, what better we can handle their product. Um we like to call it the good partners that they if they see us as their partner and they're willing to communicate with us, give us a heads up on things that are coming down the road, you know, good forecasts and things like that, that's really where we And is EDI a key part of that as well? Oh yes, for sure. Yeah. Um we we most of our customers now, our larger ones, do all operate via EDI, you know, on the inbound side and the outbound side. But way before EDI gets in the picture, we need if you can give us a forecast of what you're expecting your production to be two or three weeks down the road, that gives us a chance to plan our labor, plan our warehouse, and make sure we can handle your product rightly. Correctly.

SPEAKER_01 6:04

Aaron Powell How early should um suppliers be engaged in with the cold chain planning uh when they're introducing, say, a new product?

SPEAKER_00 6:14

Aaron Powell From that from the concept conception. You know, if they are planning to launch a new product, let's say for a holiday, and they wouldn't need us to store that product um if they're just thinking about it, go ahead and let us know. You know, this is what we think we're gonna have. And if it does even if it doesn't come to fruition, we can still plan for it. And then if it gets down the road and they don't use it, don't do it, we still have planned for it. And that that just is being proactive.

SPEAKER_01 6:42

What are some of the biggest challenges associated with operating a cold chain facility these days?

SPEAKER_00 6:50

Um it's always going to be people in power. I mean, that's our two biggest problems or expenses even. Um having the right labor to do the jobs that we need to get done, and then uh making sure we keep our power and utility costs low. And um and you know, we are we're always trying to partner with our customers on their sustainability goals. A lot of companies now have they don't want um things going to landfill. So we try to partner with them and make sure that we can keep food out of landfill.

unknown 7:20

Trevor Burrus, Jr.

SPEAKER_01 7:21

Capacity is always a concern in the supply chain. Um where do you see the biggest bottlenecks forming? Space, labor, transportation, energy?

SPEAKER_00 7:32

It's secular. Um things go up and down. Right now there is a an overcapacity of a capacity, an overabundance of capacity. And that a lot of that stems from COVID. Um, because a lot of people got into the industry after COVID because there was a spike in inventories. And so we uh right now there is a lot of capacity on the market as far as cultureing. Um, but American has been in the business for 125 years, and we um always want we we have a lot of associates that have a lot of tenure. I mean, I've been with the company 32 years. We have a lot of people that have been around 40 and 50 years that we have the expertise to make sure that we are the best in the business and that we can give our customers the best service.

SPEAKER_01 8:16

How does seasonality and promotional activity from retailers affect cold chain planning?

SPEAKER_00 8:25

Uh specifically for the sites here in Arkansas, um we do a lot of of protein for uh the holidays for Thanksgiving and Christmas. And um we'd like to call the the six weeks leading up to Thanksgiving our Super Bowl. We plan the entire year to to execute that for those um holiday turkeys. We um staff for it and warehouse our warehouses and to so we can ship those turkeys out efficiently.

Cold Warehouse Complexity On The Floor

SPEAKER_01 8:55

I hadn't thought about that. I can see yeah, turkey would be a big issue around Thanksgiving. Yeah. Um so I'm really familiar with warehouse operations, distribution center operations, cross-docking operations, fulfillment operations, but not very familiar with cold chain warehouse operations. So in the cold chain uh operations, what looks simple on paper but is more difficult to execute in the temperature-controlled environment? Trevor Burrus, Jr.

Automation AI And Safety Tech

SPEAKER_00 9:32

Well, you've got to uh make sure you're keeping your associates warm. I mean, and that that means that um you've they've got bulky PPE on. You know, they've got a warehouse, I mean a freezer suit on. So they we've got to make sure that they're taken care of in that area. And maybe if they're in their case picking, they may not be able to move as fast. We have to make sure we have support them as far as ergonomics go and make sure they're doing the right lifting techniques with all this bulky equipment on. And then also um equipment life. You know, your batteries in a minus five environment, your batteries on your forklifts are not gonna last as long as they would if you were in 70 degree weather. So that's just an extra layer of um complexity when you're in a cold environment.

SPEAKER_01 10:18

Are there some technologies that have emerged that are really helping the cold chain environment?

SPEAKER_00 10:24

For sure. Um we here in Arkansas, we have uh just opened up an automated facility in Russaville. Um it's I think we opened it last year or the year before last, I actually that that takes the humans out of the cold. So that that that facility is 100% automated behind the wall.

SPEAKER_01 10:43

Wow.

SPEAKER_00 10:43

Yeah. So the only reason people have to go in there is if there's a an issue with a pallet or a breakdown on mechanics or a PM and the machinery or whatever. So that that takes a little bit of the um complexity out of it. Now, there's a different set of complexity because you've got to make sure that the automation is all running correctly. Sure. Um, but but it takes the human element out of that part of it. Um we are leaning on AI stuff. That's another initiative that we're going into is trying to do more with AI and predictabilities and labor planning and all that kind of thing. Um then we're also using some in the uh safety part of it. Um we have some companies that we're talking to that uh can look at video of our of our workers and identify if they're not lifting correctly or if they're not doing the right things that can be on the on the safety side of it. And then also with um on AI with um noticing heat, like if you if you have a camera and there's um a heat escape from the from a roof because of a bad roof from the yeah, from the roof because of a bad roof, then we can identify that and be proactive about getting that replaced.

SPEAKER_01 11:52

How important is real-time temperature monitoring as well as um information sharing um with retailers and suppliers?

SPEAKER_00 12:03

Aaron Powell It's very important. I mean, that our customers want real-time data all the time. Um a lot of our customers we we have a um right now, we have a actually our new version of it is launching on Monday. It's called American Compass. And it's a real time interactive with our customers. They can log in and see their real-time inventory right there on their on their screen. Um, and also we have customers that we put data loggers on their trailers so they can monitor the temperature of their loads as they're going down the road. They can see where their loads are at and what the temperature of that load is as it's being delivered.

SPEAKER_01 12:42

Neat. Where do you see suppliers underutilizing the data that cold chain providers could give them?

SPEAKER_00 12:51

So American has obviously we have a supply chain solutions department. So we can go in with our customers and look at where they are producing the product, where they wanted to deliver the product, and give them the optimum solution to where they want to store, where they should be stored and what real time where they should uh where it should be along the supply chain. Like we had just had a customer uh recently that we worked with in our supply supply chain solutions department looked at every one of their shipments from 2025, where it came from, where it was produced, where it came to us, and where it was eventually shipped to and said, okay, this is where you're underutilizing, this is where you could do better on utilizing our warehouses.

SPEAKER_01 13:38

That's great.

unknown 13:39

Yeah.

SPEAKER_01 13:39

How close are we to true end-to-end cold chain visibility?

SPEAKER_00 13:45

With the the new um VSMA 204 rule that's farm to table, farm, farm, yes, farm to table. Um, it's it's very close. Um with these new technologies and the new guidelines that are coming out, and it's the guidelines are already there. It's already in in practice. We have, I believe, until the middle of next year to actually implement it, but it's going to give us a lot more visibility where we've got a standardized uh lot and a standardized um expiration date on products to where we can have a lot more traceability on products.

SPEAKER_01 14:19

From your experience, where are the most common causes or what are the most common causes of temperature excursions?

SPEAKER_00 14:28

It's usually in the transition between transportation and warehouse. That's where you can have your temperature abuse with products sitting on the docks too long, or maybe there's an issue with the trailer in in that area. But normally, if it's in the warehouse, it's going to be maintained. Or if it's on the trailer, it's going to be maintained. Those things are being monitored. Um I mean, we have things that if there's a if there are we have rounds, and then if there's an area in the freezer that goes out of range, it gets reported immediately. The same with the trailer. I mean, those drivers are always checking their trailers and making sure that the product is the right temperature on the trailer. It's that that transition between the two. If something sits on a dock too long or um somebody's not paying attention, that's where you can really have exposure.

SPEAKER_01 15:15

How should suppliers think about risk sharing if something goes wrong in the supply chain?

SPEAKER_00 15:21

It's it's really about uh well, we know these things are gonna go wrong. Think things are gonna happen. But it's thinking about um how you handle the situation. Um suppliers want you to know what happened to the product, they want you to investigate it, they want you to develop a root cause and then tell them how you're gonna mitigate it going forward.

SPEAKER_01 15:43

What compliance or food safety requirements are getting stricter and how should suppliers prepare for these?

SPEAKER_00 15:52

Going back to the FSMA 204 rule, um that's we've already we're already engaging with customers about how we can make sure that we meet the requirements for that rule ahead of time. Like I said, it's not it's it's inacted, it's active, but we don't have to be compliant for another year and a half, but we're already ahead of the game on it and trying to make sure that we're ready for when it's we have to be compliant.

SPEAKER_01 16:14

How do recalls or quality incidents play out on the cold chain side?

SPEAKER_00 16:21

Um most of the time it's generated from our customers. They will tell us um when there's an issue with the product based on a specific lot or a specific specific day of production. And then our WMSs are very good at being able to track that information and give them the cut the information that they need.

Cutting Cost Through Packaging And Rail

SPEAKER_01 16:39

So cold chain is expensive. Um where does it make sense for suppliers to invest more or and where are they overspending?

SPEAKER_00 16:49

The communication part. You know, give us the giving us accurate forecasts so that we don't get caught in a pinch. You know, that if we have the the labor and the things we need to handle their product down the road, that save them money, you know. Um also on the packaging, going back to that, um, if they are using good good quality packaging, they could have will have less damage of their product from it sitting in a warehouse longer. Um, and usually utilizing the best forms of transportation. Um they there's a lot of things that we can do to help them mitigate their cost on the transportation side, whether it's looking at trucks versus rail or the other way around. Um we just implemented um a facility in Kansas City that um and we partnered with CPKC, the railroad company, and we will be able to export product directly to Mexico without it stopping at the border. So that we have uh America, I mean, that we have U.S. and Mexican inspectors right there in-house in Kansas City that will inspect the inspect the product before it goes on the rail car. And so that way when it gets to the border of Mexico, it doesn't have to stop. So that saves them time and money once they get to the border.

Final Takeaways And Thanks

SPEAKER_01 18:05

That's great. So, Cindy, you know, when we think about supply chains, you know, there's um the transportation costs, the inventory cost, and um stock-out costs. Um there's so many different costs, labor and material handling costs. And it's been really interesting to talk to you about cold chain, because cold chain makes everything a little bit more expensive from in the supply chain, both transportation, warehousing, which also makes the inventory holding costs higher. And so I can see you you emphasize the importance of communication quite a bit. I can see why communication, forecast, all of this is even more important in the cold chain than it is outside of the cold chain, especially when you're talking about really expensive items like pharmaceuticals. Uh so this was really informative. Thank you so much for taking time to visit with us. Really appreciate it.

SPEAKER_00 19:06

Thanks for having me. It's been fun.