There’s a moment in every critical Service Level Agreement (SLA) parts network where something small reveals something structural. A part misses a four-hour SLA not because it wasn’t in the country, but because no one was quite sure who owned the handoff. A shipment sits at customs while teams debate who the Importer of Record should have been. Two regions quietly increase safety stock on the same SKU ‘just to be safe’. An escalation call includes five organisations and no single line of accountability.

Nothing catastrophic. Just friction. Individually, these moments look operational. Together, they are architectural.

How Fragmentation Creeps In

Global service parts networks rarely begin fragmented. They evolve that way. A regional specialist is added to close a performance gap. A repair partner shortens turnaround time. A trade advisor manages compliance complexity. A 4PL layer is introduced to connect it all.

Each decision is rational. Often necessary. But over time, orchestration becomes layered rather than unified. In high-availability environments such as cybersecurity infrastructure, optical networks, data centres and medical systems, that layering begins to create hidden costs.

Where the Costs Appear

Fragmentation first shows up in inventory. When regions operate with partial visibility of each other’s positioning, they hedge. The US carries stock to protect its SLA exposure. Europe does the same. APAC does the same again. Individually, the decisions make sense. At the network level, they inflate safety stock, tying up working capital in duplicated buffers that exist purely to compensate for uncertainty.

It also distorts performance reporting. One provider starts the SLA clock at dispatch, another at delivery attempt. Reverse logistics is measured separately from forward fulfilment. Dashboards appear aligned until volatility hits, and suddenly, no one can reconcile where the delay actually occurred.

Trade governance becomes another pressure point. In global service networks, customs clearance is not a back-office activity; it is part of the uptime system. When Importer of Record responsibilities shift between providers or vary by region, ambiguity creeps in. A customs hold under a four-hour SLA is no longer just a compliance issue. It becomes a service outage.

Reverse flows create their own consequences. Repairable assets moving across borders without unified visibility become what operators quietly call ‘dark inventory’. The asset exists somewhere in the network but cannot be deployed when it is needed. The forward network compensates the only way it can, by carrying more stock.

When problems escalate, fragmentation becomes most visible. In multi-provider models, root cause rarely sits neatly in one organisation. Escalations move sideways before they move forward. Accountability becomes sequential rather than simultaneous. Under stable conditions, the system absorbs that latency. Under disruption, including tariffs, geopolitical shifts and capacity shocks, the latency becomes exposure.

The Fragmentation Tax

Multi-provider strategies are often adopted to reduce concentration risk. That logic makes sense.
But in high-SLA service environments, fragmentation introduces a different risk: coordination failure.
When orchestration is disjointed, the network begins paying what might be called a fragmentation tax, in duplicated inventory, premium freight, delayed recovery times and the growing overhead required simply to keep the system aligned.

The tax rarely appears on a single P&L line. It accumulates quietly across buffers, expediting, working capital and management attention.

A Different Question

As global service networks expand and trade regimes tighten, leaders are starting to ask different questions. Not ‘Are our providers performing?’ but ‘Is our orchestration structurally unified?’, because in high-availability service networks, architecture is no longer just an operational choice. It is a resilience strategy. Every network pays for its design. The only question is whether the cost is visible.

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“I am glad that we now have signed an agreement with Witron for automation in the logistics centre that we will establish. This solution will give us a more flexible, efficient and sustainable logistics chain for product supply to our stores in the southern parts of Sweden, thereby strengthening the entire Axfood family’s competitiveness,” comments Simone Margulies, President and CEO of Axfood.

Logical next step

“It feels very good to have the agreement in place for this strategically important automation solution. With the experience we have built together with Witron in Bålsta, we know that this technology will give us the right conditions going forward, and as a natural step, we feel confident in continuing this journey also in southern Sweden. This investment is fundamental in strengthening Dagab’s and Axfood’s future logistics structure, and for continuing to deliver on our ambition of market-leading efficiency,” says Hans Bax, Managing Director of Dagab.

High level of automation across all temperature zones

In Kungsbacka, products will be stored and picked across three temperature zones: ambient goods (+18 °C), fresh goods (+2 °C), and frozen items (-26 °C). As in Bålsta, the solution relies on standardized Witron logistics modules, including Order Picking Machinery (OPM with a total of 37 COMs), All-in-One (AIO), the Car Picking System (CPS), and a fully automated shipping buffer. Within this shipping buffer, store-friendly picked and consolidated order pallets are buffered and provided just-in-time on heavy-duty lanes, sequenced by delivery route for efficient truck loading. In addition, the Goods-to-Person (GTP) solution enables ergonomic semi-automated picking operations in the frozen food area.

High-performance warehouse management system

The overall material flow includes more than 500,000 storage locations for wooden and plastic pallets, roll containers, totes, and refrigerated containers, 111 stacker cranes, as well as 16+ kilometers of conveyor technology. All processes are controlled by a multifunctional warehouse management system with open interfaces from the WMS to the customer’s supplier systems, route scheduling systems, and sales systems. This enables a high level of end-to-end optimization across Axfood’s entire internal and external supply chain. A Witron OnSite service team of more than 60 employees ensures consistently high system availability in multi-shift operation around the clock – 365 days a year.

Successful omnichannel project

Both companies can reflect positively on a jointly and successfully implemented project. Since early 2025, following a phased ramp-up, one of the most innovative logistics centres in the retail industry has been operating at full capacity in Bålsta, around 40 kilometers northwest of Stockholm. Axfood and Witron designed and realized a cutting-edge omnichannel distribution centre that supplies stores as well as end customers via click + collect and home delivery. The highly automated system handles a product range of 22,000+ dry, fresh, and frozen items.

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All vessels will share the same specifications and form a new series, with deliveries scheduled from March 2026 through to 2028. The names draw inspiration from the company’s original and highly regarded Snow-class vessels.

The vessels will feature modern hull and propulsion designs, including energy-efficient engines engineered to meet stringent IMO and EU environmental regulations through to 2030 and beyond.

This order forms part of Cool Carriers’ ongoing fleet renewal strategy, ensuring continued competitiveness in the specialized reefer segment. Following this order, the company will have a total of 7 vessels on order, with 2 scheduled for delivery in the remainder of 2026.

Cool Carriers is both an owner and a time-chartered fleet operator, which includes leasing vessels from Japanese owners. The company’s expanding fleet represents a significant increase in reefer capacity, with vessels capable of carrying up to 14,000 pallets under deck and in containers combined.

Cool Carriers serves key global trade routes, including New Zealand to Europe (Kiwi fruit), Chile to the United States, Ecuador’s banana exports, and growing volumes from South Africa and Argentina to Europe.

As global demand for year-round fresh produce continues to rise the company plays a vital – if often unseen – role in maintaining resilient food supply chains. The introduction of the Snow-class vessels will further improve both delivery reliability and environmental performance.

Glenn Selling, Chief Operating Officer at Cool Carriers, said, “Cool Carriers is proud to introduce the Snow class. With a 2.5-metre deck height, these vessels represent a major step forward for the specialized reefer industry. Exporters will no longer need to choose between standard and high-cube pallets – the new vessels are designed entirely for high-cube cargo, matching the internal height of modern reefer containers.”

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The report tracks globalisation on a scale from 0% (no cross-border flows) to 100% (borders and distance have no impact). The world’s level of globalisation was 25% in 2025, in line with the record high set in 2022.

Globalisation is holding its ground – and that alone speaks volumes about its value… From poverty to climate change, the world’s biggest challenges can only be solved through global thinking. The DHL Global Connectedness Report shows that countries and companies are not retreating behind national borders. That is good news. We strengthen global ties by connecting markets, businesses, and people so they can adapt, diversify, and unlock new opportunities – even in uncertain times.

said John Pearson, CEO of DHL Express.

At the same time, today’s globalisation level of 25% underlines how far the world is from being fully globalised. In many areas, international flows could expand further in the absence of policy constraints.

AI boom and race to beat tariff hikes fueled trade in 2025

Global trade grew faster in 2025 than in any year since 2017, excluding the volatile Covid-19 period. U.S. importers accelerated shipments early in the year ahead of tariff increases. U.S. imports later dropped below prior-year levels, but rising Chinese exports to non-U.S. markets helped sustain global trade volumes. Trade in AI-related goods surged as countries and companies raced to build AI infrastructure. AI-related products drove 42% of goods trade growth in the first three quarters of 2025, according to WTO figures.

Trade outlook: growth continues, even with higher tariffs

Looking ahead, recent U.S. tariff increases are expected to modestly slow trade growth in 2026 – but not stop it. Global goods trade is projected to expand by an average of 2.6% per year through 2029, in line with the past decade. One reason trade can keep growing despite U.S. tariff hikes is that most trade does not involve the U.S. In 2025, 13% of imports went to the U.S., and 9% of exports came from the U.S. In addition, many countries are pursuing new trade agreements to secure access to alternative markets.

Information flows face barriers, people flows reach new highs

Beyond trade, the report finds diverging trends across other international flows:

• Capital: There is no broad shift of investment from foreign to domestic markets. Multinational firms still earn near-record shares of sales abroad. While announced greenfield foreign direct investment (FDI) fell in 2025, overall FDI flows rose, and cross-border M&A activity remained resilient.
• Information: Over the past two decades, information flows delivered the largest globalisation gains. Since 2021, growth has slowed and become more volatile. Geopolitical tensions and restrictions on data flows may now be materially limiting the globalisation of information.
• People: After collapsing during the Covid-19 pandemic, people flows have fully recovered. The latest data show international travel, student mobility, and migration all at record highs.

Singapore leads country ranking, Europe tops regions

In the report’s country ranking, Singapore again ranks as the world’s most globalised nation, followed by Luxembourg and the Netherlands.

Europe is the most globalised region, followed by North America and the Middle East & North Africa. The United Kingdom has the most broadly distributed flows worldwide. The United Arab Emirates recorded the largest increase in globalisation since 2001.

U.S.–China tensions affect only small share of global flows

The report also finds that ties between the world’s two largest economies – the U.S. and China – continue to weaken. However, these ties are surprisingly small in a global perspective. For example, trade between the U.S. and China accounted for 3.6% of world trade at its peak in 2015, before falling to 2.7% in 2024 and to only 2.0% during the first three quarters of 2025. The U.S.–China share of international business investment is even smaller – less than 1% in 2025.

No global split into rival blocs

Even as the U.S. and China decouple, most countries continue to engage with their longstanding partners. Over the past decade, only 4–6% of global goods trade, greenfield FDI, and cross-border M&A have shifted away from geopolitical rivals. Of these flows, most have not moved to close allies but to countries with flexible geopolitical positions, such as India and Vietnam. Overall, the world economy remains far from a broad split into rival blocs.

The politics and policy surrounding globalisation are much more volatile than the actual flows between countries… “Global trade patterns changed more in 2025 than they do in a typical year, but less than they did during other recent disruptions such as the early stages of the war in Ukraine. Sound decision-making requires a calibrated view of how much global business ties are really changing. The risks to globalisation are real, but so is the resilience of global flows.

said Prof. Steven A. Altman, Director of the DHL Initiative on Globalisation at NYU Stern’s Centre for the Future of Management.

Traded goods and greenfield FDI reach record distances

Geopolitical tensions and supply chain concerns have led many observers to expect a shift from globalisation to regionalization. In 2025, however, traded goods travelled the longest average distance on record (5,010 kilometres). The average distance for greenfield FDI projects also rose to a new high (6,250 kilometres). Most other international flows are stretching over longer distances as well, and longer distances indicate less regionalization. Predictions of a broad move from global to regional business have not materialized – at least not yet.

Published regularly since 2011, the DHL Global Connectedness Report provides reliable insights on globalisation by analysing 14 types of international trade, capital, information, and people flows. The 2026 edition is based on more than 9 million data points. It ranks the connectedness of 180 countries, accounting for 99.6 percent of global gross domestic product and 99.0 percent of the world’s population. A set of 180 one-page country profiles summarizes each country’s pattern of globalisation.

Read the full report here.

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When Steve Jobs stepped onto the stage at the Macworld Expo in August 1997, he wasn’t introducing a groundbreaking new product (he would announce the iPhone at the same event a decade later).

At the time, software was rigid. Systems were siloed. Data arrived late. People worked within the confines of the technology, content to be limited by its many shortcomings. Jobs was casting a vision for his company and the customers who would refuse to settle for the status quo.

It was a rejection of the way people were being forced to work with technology, and a promise and an invitation to think different and change the world. The modern supply chain took shape at the same time, and its software solutions were built around batch planning, static forecasts, and point-in-time data.

These weren’t the ideal solutions. It was simply what the technology could support. For a long time, it worked. Disruptions existed, but they were exceptions, not norms.

Today, global supply chains are more expansive than ever before, operating with more velocity and precision but vulnerable to disruption. As one survey of 1,000 senior supply chain leaders concludes, ‘Supply chain disruptions are no longer rare — they’re the new normal.’

Why Two Decades of Technology Spending Left Supply Chains Brittle

Two decades and $200 billion in supply chain management technologies have left many supply chains reactive and convoluted. This staggering investment has not delivered the expected resilience; global disruptions now cost the average company 8% of its annual revenue. McKinsey & Company estimates that extended supply chain disruptions lasting more than a month now occur every 3.7 years and can cost a business up to 45% of a year’s profit over a decade.

Despite this significant spending, most organizations are still operating on their heels, trapped in a cycle of:

● Making decisions based on fixed time horizons that ignore the fluidity of global trade
● Relying on data that is outdated by the time it reaches the dashboard
● Operating in silos, where teams are neither connected nor informed
● Reacting to crises rather than adapting to trends.

First-wave supply chain management solutions were designed to record and report, not to decide. They rely on fixed time horizons and historical data to inform the future. When disruption, uncertainty, and change are the norm, it’s clear that we need to think differently about our supply chain software.

Transitioning from Reactive Networks to Adaptive Decision Engines

Decision-making itself has become a first-class enterprise capability. It’s why a decision-centric approach is the defining framework of successful, agile enterprises.

Yes, it involves a new technology schema. Yes, it puts data at the centre of everything. It’s also more than that. It’s a new operating model where decisions are explicit, intelligence is continuous and adaptive, execution is connected, and humans and technology collaborate at scale.

Decision-centric organizations are not just focused on data collection, but also on applying this information to drive specific business outcomes. For supply chain entities, this means using available intelligence and analytical tools to become more forward-looking and responsive to market shifts before they become crises. These initiatives are undoubtedly powered by artificial intelligence (AI).

Making Intelligence Operational

AI is ubiquitous in the supply chain sector. A quick Google search reveals countless think pieces on the subject, and executives are eager to talk about how they are deploying the latest to achieve the elusive promise of total visibility.

What it actually does for them is a different story. AI-powered, decision-centric supply chains are defined by three pillars that produce real results.

1: Centralizing Data
Best-in-class supply chain entities are centralizing their data into a single, unified platform. AI-powered supply chain optimization doesn’t work if data silos and disparate teams are running the show. Integrate and unify data so AI models can train on a complete, vertical, end-to-end picture of the operation, rather than on conflicting or incomplete datasets.

2: Intelligent Responses
Decision-centric companies turn insights into action. They rely on clean, centralized information to identify problem root causes and respond in real time. Even better, generative AI solutions make information searchable, allowing decision-makers to query data to derive actionable insights, and machine learning helps teams arrive at complex, data-driven decisions.

3: Predictive Sales and Operations Planning
AI-driven demand sensing turns real-time data from the external world into insights that anticipate and understand subtle shifts in customer behaviour, market trends, and potential disruptions before they impact the bottom line.

Rather than relying on last year’s information, supply chain entities can use this technology to adapt to real-time, even unprecedented, circumstances, responding with robust solutions that clarify uncertainty and create opportunities from disruption.

For instance, 76% of fashion executives believe tariffs and trade volatility will be the defining issues of 2026, requiring this heightened level of agility. Generative AI-powered digital twins can help retailers understand the financial or operational implications of any given decision or scenario.

This AI-first approach connects planning, execution, and analytics in real time to deliver speed, resilience, and measurable business impact. When implemented effectively, it changes how supply chains work, converting reactive networks into adaptive decision engines.

A New Era of Strategic Advantage

When Steve Jobs challenged Apple and its audience to ‘think different’ he was redefining the relationship between creators and their tools, businesses and their processes and potential. It was a response to a status quo that desperately needed updating.

The logistics and supply chain sector is ready for a similar revolution. Specifically, the modern supply chain must be built to be actively anti-fragile. The transition to a decision-centric enterprise marks the end of an era defined by reactive management.

For decades, we required supply chain professionals to serve the limitations of their software. We’ve left expert planners firefighting exceptions in spreadsheets, while reaching the company’s strategic goals have remained elusive.

Adopting a decision-centric model changes this dynamic. It empowers people and their teams to think differently. They can be different, operating with a level of specificity and agility that meets this disruptive moment.

The post Broken Supply Chain? appeared first on Logistics Business.

The capacity index, based on transactional data, reflects overall market sentiment regarding available road freight capacity. Comparing developments across both regions provides deeper insight into the underlying dynamics of supply and demand.

In 2022, both Europe and the US experienced expected capacity constraints, followed by a rebound a few months later. However, the US market experienced this cycle approximately four months earlier than Europe. In 2023, available capacity in both regions reached its highest level in years, after which the markets began to diverge in the first quarter of 2024.

In the US, available capacity remained high through the fourth quarter of 2025, creating a favourable market environment for shippers and brokers. In contrast, capacity in Europe steadily declined, a trend that, after a brief stabilisation in 2025, has continued into 2026.

According to Dolderer, this development can largely be explained by differences in market response on the supply side:

European carriers reacted relatively quickly to declining margins and sharply rising operational costs by reducing their fleets. The increasing number of bankruptcies in the sector accelerated this process. Combined with declining transport demand in 2024 and the first half of 2025, this explains the continued capacity contraction in Europe. As a result, the market climate for shippers and brokers is significantly less favourable than in the US.

In the US, a recent decline in capacity has also become visible. In addition to increased transport demand, Dolderer points to external factors: “Severe weather conditions have had temporary impacts, but we also see clear signals on the supply side. New heavy truck registrations fell sharply in 2025, making it clear that the decline is continuing. Reduced investment in fleet expansion and modernisation could indicate a structural shift toward consolidation after years of overcapacity.”

Despite the recent decline, trucking capacity in the US remains historically abundant. Dolderer therefore, describes the trend as more of a psychological correction than a fundamental shift: “After years in which demand exceeded supply, markets react strongly to signs of tightness, even when actual capacity remains relatively high.”

Over the coming weeks, Dolderer expects a slight easing of capacity in both regions due to seasonal factors. However, he anticipates different dynamics for 2026: “In the US, capacity is expected to decline further. This development is driven less by demand growth and more by carriers’ reactions and bankruptcies. In Europe on the other hand, I expect that a recovery in transport demand will put further pressure on capacity.”

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“Life sciences and healthcare companies expect cold chain solutions that are reliable, compliant, and transparent from end to end — and those expectations are rising fast,” said Oscar de Bok, CEO of DHL Global Forwarding, Freight. “At the same time, they’re looking for ways to simplify supply chains and reduce costs. Our expanded network brings together DHL Aviation’s global air connectivity, our GDP-compliant station network, and our major investments in modern, temperature-controlled facilities. The result is a more resilient, more efficient logistics backbone for customers who depend on flawless quality to deliver critical therapies to patients.”

By reducing reliance on third-party carriers and commercial airlines, DHL improves product integrity and temperature control throughout the journey while increasing supply chain resilience amid geopolitical tensions, capacity shortages, and growing regulatory complexity. The expansion adds capacity for temperature-sensitive pharmaceutical and medical shipments and connects key markets through more than 30 GDP-compliant aviation hubs and gateways.

The network will first connect major DHL hubs, including Brussels (BRU) – Cincinnati (CVG), with additional routes in Europe, the Middle East, Asia, and Latin America to follow. The BRU-CVG corridor connects the U.S. Midwest, home to leading pharma companies, directly to one of Europe’s most advanced life sciences ecosystems. By avoiding coastal congestion, the lane provides a seamless, temperature-controlled pathway for high-value biologics and time-critical cell and gene therapies. At the Brussels end, the route is supported by 45,000 square metres of pharma-only zones at BRUcargo, delivering clinical-grade integrity end to end. Together, this infrastructure establishes a resilient connection between two of the world’s most important healthcare markets.

Countries prioritized for further expansion of the Airfreight Cold Chain Network include India, Singapore, Japan, South Korea, Brazil, the United States, Germany, and Ireland. These routes are designed to meet strict regulatory requirements and maintain product quality throughout the supply chain.

The expanded network supports DHL’s mission to strengthen global health logistics and meet rising demand for fast, reliable, temperature-controlled transport of pharmaceutical products and medical supplies. Patient safety remains central to the service. Combined with significant investments in temperature-controlled infrastructure, the network reduces reliance on heavy, costly packaging and refrigerated air freight containers, offering an economical service focused on quality and minimizing temperature excursions.

To support the expanded network, DHL has introduced a dedicated Boeing 777 freighter operating between Brussels and Cincinnati. The aircraft, which features the new ‘DHL Health Logistics’ livery, serves as a visible marker of the company’s strategic focus on healthcare logistics. More importantly, its dedicated routing provides consistent, controllable capacity on one of the most critical pharma lanes, reinforcing the reliability and temperature management standards required for sensitive shipments. While the branding highlights the sector’s importance, the aircraft’s operational role strengthens the backbone of DHL’s growing health logistics network.

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Today, companies are investing in new strategies to reduce costs, improve efficiency, and alleviate compliance risks. It’s done through integrated real-time IoT monitoring. From startups to large providers, cold chain logistics services can now do more than ever to speed delivery, reduce costs, and enhance asset safety. Here’s how. 

The Key Ingredients in Optimized Cold Chain Fulfillment 

True optimization comes from creating a cohesive system that works together. Cold chain logistics services that incorporate the following components offer the greatest advantage for businesses looking to improve operations across the board. 

Real-Time Environmental and Conditioning Monitoring 

At the heart of successful cold chain fulfillment is ensuring conditions remain within the target zone. Numerous strategies exist to do this, such as using smart sensors and Bluetooth Low-Energy (BLE) beacons. RFID tags are also used in this way in some supply chains. These technologies allow for continuous monitoring, avoiding the risk of what can go wrong between spot checks. 

Elements critical to success include: 

• An active monitoring parameter setup: It must track key factors important to the product, including temperature, humidity, light exposure, and shock. 

• Instant alerts or automated actions: Proper alignment of triggers to send off an SMS or email alert is essential. Some of the most advanced systems will initiate available correction actions. This could include rerouting trucks or adjusting internal temperature settings. 

• Predictive maintenance upkeep: Specifically for reefers, predictive maintenance has proven to be a key driver for the success of continuous monitoring. 

Real-time monitoring with automated inventory management provides a clear strategy to reduce spoilage of perishables. 

Integrate Automated Inventory Management 

Also known as AIM (automated inventory management), it links IoT data from smart sensors to Warehouse Management Systems (WMS) and Enterprise Resource Planning (ERP) tools. This ensures that inventory’s static records become far more dynamic, data-filled, and actionable. 

Automating First Expired, First Out (FEFO), for example, using IoT sensors, ensures the longest possible shelf life on a product. This can be adjusted based on temperature exposure. Automation allows systems to prioritize shipping out products at higher risk of expiration. 

Dynamic inventory allocation allows the system to downgrade at-risk inventory or reassign its delivery to a market that is much closer. This can reduce waste. 

Localizing Micro-Fulfillment Centers 

Localizing micro-fulfillment centers accelerates the delivery process, but it also reduces the delivery time. This allows for better management of highly strict temperature controls. Localized locations, which have high-tech tools built into them, are typically located within 5 to 10 miles of the largest urban populations. The result means same-day and even under two-hour deliveries become possible, the critical risk zone for perishables. 

Advanced Thermal Packaging 

Another core component of success in cold logistics is the use of advanced thermal packaging. This includes insulated container liners or phase change materials (PCMs), for example. There are several core benefits to these products. The first is the creation of an unbroken chain of custody. Materials like vacuum insulation panels and PCMs allow for very accurate temperature management for up to 72 hours. Products such as insulated box liners and foam containers can minimize product risk when it comes to changes in external temperature. 

The Solution to Cold Chain Fulfillment: Data and Its Use 

Implementing a data-driven approach is a necessary step for all cold chain logistics providers. Doing so maintains the highest level of safety while also working to meet increasing consumer demand, even as delivery timeframes continue to shrink. 

It is the combination of all these factors working together that makes this possible. With IoT, real-time monitoring, smart inventory management, and advanced thermal packaging, along with localized fulfillment centers, enables businesses to maintain compliance, reduce waste, and meet rising consumer expectations for faster delivery. When these systems work together, companies significantly increase the likelihood of higher profit margins and improved customer satisfaction — while reducing the product losses associated with outdated logistics models. 

For many companies today, this transformation is essential. 

The post Cold Chain Fulfilment: Reduce Spoilage, Speed Up Delivery appeared first on Logistics Business.

Singapore’s heavy reliance on imported food – and the refrigerated storage it requires – combined with its role as a major transshipment hub, continues to drive robust, sustained demand for cold storage capacity. Structural constraints in industrial land allocation have reinforced a persistent shortage of modern facilities.

William Smales, Partner and Chief Investment Officer at Morrison, said: 

Morrison is committed to investing in the essential infrastructure that underpins resilient, modern economies. With demand for highly automated cold-chain capacity continuing to outpace supply across the Asia-Pacific region, our investment in SuperFreeze positions us to help close that gap and establish a scalable, best-in-class platform. It reflects our strong conviction in Singapore and our ambition to lead the evolution of the cold chain logistics sector across the region.

Rajiv Khakhar, Executive Director at Morrison, said: 

Cold storage logistics play a vital role in enabling regional APAC trade through the storage and transshipment of temperature-sensitive goods, while also ensuring stable food and pharmaceutical supply in high import-dependent economies. We look forward to working with the management team to unlock strategic opportunities across Asia and deliver significant long-term value by addressing a critical, enduring local societal need.

Troy Shortell, CEO of the platform, added: 

This acquisition represents a natural progression in our growth journey and further strengthens our mission to transform critical cold supply chain infrastructure across the region. Building on an already solid foundation, SuperFreeze is now even better positioned to expand our network of advanced cold logistics facilities that leverage high-efficiency refrigeration and distributed energy systems to further reduce our carbon impact. Morrison’s deep expertise in global infrastructure and financial strength reinforces our long-term commitment to leading the transition toward a more sustainable cold chain — increasing food and pharmaceutical availability while preventing waste and minimizing our environmental footprint.

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Farmer-owned dairy cooperative Arla Foods and XPO Logistics have extended their strategic partnership by creating a future-ready, resilient chilled foods operation – through a 285,000 sq.ft. new UK national or central distribution centre (CDC) that will handle all Arla’s British chilled palletised products.

Currently under development at Prologis’s vast intermodal DIRFT complex, which is adjacent to the M1 and M6 motorways plus the west coast railway mainline, the new facility will bring Arla’s chilled dairy products (cheese, butter, yoghurts), into a single, centralised location. “It’s the most established warehouse location in the UK,” Phil Oakley, SVP, Prologis UK, told me. DHL, Tesco, GXO, Bleckmann and Sainsbury’s have DCs here already. This new development aims to strengthen Arla’s supply chain resilience, reduce road freight miles and support more efficient distribution across Britain.

Fran Ball, SVP UK Supply Chain for Arla Foods UK, commented:

Consolidating our chilled pallet operations into a single, advanced facility in Northamptonshire is a strategic leap forward for Arla. By partnering with XPO Logistics and Prologis, we are improving the resilience of a critical part of our supply chain and making meaningful progress on reducing waste and road miles.

XPO Logistics is project managing the delivery of the CDC and will operate the site from late 2027, when it becomes operational, thus making this a fast construction and quick implementation. As part of a continued, long-term partnership, XPO is supporting Arla beyond day-to-day operations, bringing expertise in transformation, automation and scalable operating design. The new CDC will create around 400 new jobs.

Investment in automation, via systems integrator Dematic, will create skilled warehousing roles, including automation operations, maintenance, quality, inventory control, safety and management. Appropriate training and upskilling for advanced automation will be provided by XPO as part of the recruitment and onboarding process. The CDC will have 40000 pallet locations and 850 pick faces in the picking tunnels. It will make extensive use of Movu’s ‘Atlas’ 4D pallet shuttle. “Each shuttle is an individual unit, so it is scalable,” says Dan Myers, Senior Vice President, Dedicated Supply Chain – Europe, XPO Logistics. “We can add shuttles at peak periods.”

Human Leagues

One of the challenges with cold stores is maximising space utilisation. “Chill as little as possible,” Myers advises. “Arla stands for quality; their products are loved and trusted by households. This future-ready CDC is designed to handle projected growth and will play a key role in ensuring that Arla continues to deliver great products whilst improving the resilience, sustainability, and efficiency of its supply chain. Working together, we’re driving positive strategic change which will support Arla’s business to continue to prosper today and tomorrow.”

I asked Myers about the challenges of recruitment. “You can hire people, of course,” he replied. “Growing 10% a year means we’re people-based, so the challenge is recruiting enough staff. Our values are important.” As well as training and a vocational approach XPO offer a benefits package.

The new CDC is being constructed to meet BREEAM outstanding accreditation and an EPC A* rating. At 22.5m high and with 48 dock doors, the CDC will have a PV solar array to bolster its power supply. “This will generate a surplus of electricity, and the logistics park has ample energy as well,” Oakley told me. “Partnerships and developments like this play an important role in creating long term economic value, helping to attract investment and underpin jobs across the region,” he added. “At DIRFT, we’ve built a community with the capacity and skills to support high-performing logistics operations like this one.” It’s the company’s second largest logistics park in the world and features walking routes, sports facilities and green spaces.

Most DIRFT warehouse occupiers make use of the rail connectivity, which is a distinct advantage of this location. XPO will utilise the west coast mainline to move products to and from Scotland, where Arla has another major hub (for UHT and lactose-free milk). “Rail freight is optional here,” Oakley stated. “The capacity is there and will increase once HS2 (high-speed rail) is complete,” which is between three and seven years away. “More places to offload rail containers are needed, however.” For every rail service used 70-80 lorries are taken off the roads, so it should be a win-win.

I asked Oakley if Prologis have finally run out of space at DIRFT. “We have 1.8 million sq.ft. left to develop, making a total of 8 million sq.ft. on the park,” he informed me. “This is the third phase. Land is prepared and has planning consent.” Some new ‘on-spec’ warehousing will be ready this summer. Get it while you can.

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