Supply chain logistics differ depending on what types of goods you are trying to move.

Shelf-stable products, for example, can move through a supply chain at various temperatures. But perishable goods require strict cold or frozen conditions throughout their journey. From procurement and manufacturing to distribution and delivery, every stage must be temperature-controlled.

That means that yogurt brands have to ensure that their shipment won’t be spoiled before reaching retailers and that flower delivery companies don’t receive boxes of wilted roses. These could be costly outcomes of a cold supply chain gone awry.

Beyond the financial losses, products transported at incorrect temperatures can also become dangerous, allowing harmful bacteria or fungi to grow in foods or causing medications and chemicals to degrade. Understanding how the cold chain logistics process operates—and how to manage it effectively—is key to maintaining product quality, compliance, and customer trust.

Read on to learn about the complexities and best practices of running a business that relies on cold chain logistics, with expert tips from Chris Sherman, CEO of Island Creek Oysters.

What is the cold chain?

While the cold supply chain follows the same basic process as any other—procuring raw materials, manufacturing products, distributing them, and selling to end customers—it differs in that every stage of the process must be temperature-controlled. Depending on the product, this may require chilled, cold, frozen, or deep-freeze conditions.

Each of these categories aligns with specific temperature ranges that help preserve quality and prevent spoilage:

Beyond the food and beverage industry, the floral, agriculture, pharmaceutical, and health care sectors all rely on cold chain management to preserve product quality and extend shelf life. The health care industry, for example, uses cold chain logistics companies to transport stem cells, blood, and organs for medical procedures. Goods that require a cold supply chain are sometimes called “cool cargo.”

A successful cold supply chain relies on several key components that maintain consistent temperatures from production to delivery. These include cold manufacturing and storage systems, temperature-controlled transport units such as trucks and cargo containers, insulated boxes for smaller shipments, and specialized equipment for cold processing.

Cooling systems

Cold or cool manufacturing and storage facilities, like refrigerated warehouses and distribution centers, use temperature-controlled rooms, walk-in fridges, and freezers to maintain proper conditions. Some cargo containers are also temperature-controlled, equipped with vents, sensors, and smart technology that all help maintain a steady internal temperature despite external fluctuations.

Cold containers

Insulated containers of various sizes are used for short-term storage or for transporting temperature-sensitive products and raw materials. These are called passive containers and typically are insulated with frozen packs that help maintain stable temperatures. Small boxes shipped directly to customers might use dry ice or gel packs to preserve temperature during delivery.

Cold processing

Certain products, such as ice cream, frozen meals, and even some beauty and pharmaceutical items, must be manufactured or packaged in temperature-controlled environments. Processes like blast freezing, which rapidly lowers a product’s temperature to preserve texture and freshness, help maintain product integrity and extend shelf life.

Cold transport

Temperature-controlled trucks, vans, cars, trains, ships, and cargo airplanes move perishable goods through the supply chain. These vehicles use refrigeration, insulation, or both. Some companies manage their own fleets, while others contract with logistic providers specializing in cold chain operations.

Chris explains how the process works at Island Creek Oysters: Daily local delivery from its Brooklyn warehouse to 100-plus restaurants is handled via vans, while national shipments commonly move via FedEx air; the company serves high-volume restaurant groups in markets like Chicago, Denver, and Miami with overnight refrigerated trucking.

Cold chain compliance and regulation

Because temperature control directly affects product safety, the cold supply chain is closely regulated at the state, national, and international levels. These rules define safe handling, storage, and transportation practices for temperature-sensitive goods—and are critical for cold chain companies operating across multiple regions and industries.

Regulating bodies such as the US Food and Drug Administration (FDA) and Canadian Food Inspection Agency (CFIA) set and monitor standards for the food industry, including production and supply chains, while the US Department of Agriculture (USDA) oversees meat, poultry, and certain dairy products.

“The guidelines are really set by the FDA,” says Chris. “Each state then has its own set of regulations, and the states are responsible for enforcing and monitoring compliance.” He also notes that FDA and state inspectors make periodic, unannounced visits to Island Creek’s facilities.

In addition to food-specific regulations, several global and industry organizations maintain complementary standards:

• The World Health Organization (WHO) and FDA publish Good Distribution Practices (GDP) guidelines for pharmaceuticals and vaccines.
• The International Air Transport Association (IATA) issues Perishable Cargo Regulations.
• The Transportation Security Administration (TSA) monitors perishable cargo security.
• The International Safe Transit Association (ISTA) provides testing standards, such as ISTA 7E, to ensure that temperature-controlled packages can maintain required conditions during delivery.

Cold chain technologies

Refrigerators and freezers have been a cornerstone of commercial cold storage since the early 1900s, and modern systems continue to evolve to meet today’s logistics demands. New cold chain technologies have enhanced how businesses keep temperature-controlled products safe during transit.

• Dry ice. This is a solid form of carbon dioxide that eventually evaporates rather than melts, making it ideal for maintaining ultra-low temperatures. Dry ice has a temperature of around -109°F (-78.5°C) and is often packed into boxes shipping frozen products like steaks or ice cream directly to customers via mail or courier services.
• Eutectic plates. Similar to frozen packs inside a picnic cooler, these large, reusable plates are filled with a specialized eutectic gel that helps maintain consistent cold temperatures for extended periods. Depending on the formulation, they can sustain chilled, frozen, or deep-frozen conditions. The plates are used inside large insulated containers or trucks.
• Gel packs. These flexible packs can be refrozen and reused multiple times. They are typically used for products packed in smaller boxes shipped by mail or delivery services, such as ecommerce food deliveries.
• Liquid nitrogen. Sometimes called cryogenic nitrogen, liquid nitrogen has several applications in the cold supply chain. It can be used to flash-freeze food prior to packaging or as part of the packaging process itself. This is especially the case with modified atmosphere packaging (MAP), which manipulates the atmosphere inside packaging to extend shelf life.
• Quilts. These insulated covers—often called thermal cargo blankets or cargo covers—fit over pallets to protect products from temperature fluctuations. Some are single-use, while others are reusable depending on the shipping environment.
• Reefers. Temperature-controlled transport vehicles, including vans, trucks, and shipping containers, are called reefers within the industry. Reefers are insulated and refrigerated, maintaining consistent interior temperatures regardless of external conditions.

Cold chain logistics best practices

• Monitor temperature continuously
• Integrate data across systems
• Verify compliance automatically
• Choose logistics partners carefully
• Build a scalable, sustainable system

Effective cold chain logistics depend on real-time visibility, data accuracy, and rapid response. The following practices help businesses maintain consistent product quality and regulatory compliance throughout transport.

Monitor temperature continuously

Continuous monitoring is the foundation of cold chain integrity. Devices such as Bluetooth Low Energy (BLE) sensors and data loggers track temperature, humidity levels, and motion throughout a shipment’s journey.

• BLEs are asset tags, known for their long battery life, that can be scanned with a reader or smartphone.
• Data loggers are electronic devices that provide a continuous record of environmental conditions inside containers or vehicles.

Island Creek Oysters uses data loggers to track temperature conditions between its warehouses in New England. “We have an actual time-temp recorder that creates a digital record of the shipment,” Chris says, noting that the data can be collected and analyzed in the cloud. For shipments to the end user, the company also applies disposable time-temp strips inside containers. “The chef receiving it on the other end can check the strip to make sure that the product hasn’t risen above 45 degrees for any portion of the transit. If it has, it’ll tell them for how long,” Chris explains.

Integrate data across systems

Collected data is most valuable when integrated into centralized management systems. Linking monitoring data to platforms such as enterprise resource planning (ERP) software or warehouse management systems (WMS) provides end-to-end visibility into every stage of the cold chain process. Integration allows logistics teams to identify issues early, improve efficiency, and document compliance more easily.

At Island Creek, ice time, lot numbers, growing area, and shipment temperatures are logged in a single system, enabling tracebacks at the lot level.

Verify compliance automatically

Automated documentation simplifies regulatory audits and inspections. By capturing time-stamped temperature data directly from sensors and storing it in the cloud, companies create a verifiable digital trail that meets FDA, CFIA, and WHO Good Distribution Practice (GDP) requirements. Automation reduces manual reporting errors and ensures that compliance evidence is available in real time if deviations occur or regulators request verification.

“The compliance lift is heavy and we’ve been able to automate a lot over the years,” says Chris. “A huge part of what we do is just to make sure everything’s cold.”

Choose logistics partners carefully

A cold chain is only as strong as its weakest link, making partner selection one of the most critical factors in maintaining temperature integrity. Businesses should evaluate logistics providers, distributors, and carriers based on their ability to meet strict temperature-control standards, demonstrate regulatory compliance, and provide transparent data reporting.

Establishing clear service-level agreements (SLAs) and verification protocols helps ensure accountability across a network. Reliable partners should offer documented training for their own employees, use validated monitoring technologies, and maintain detailed records for audits. Regular performance reviews and compliance audits help confirm that each partner continues to meet expectations as conditions, products, and regulations evolve.

Build a scalable, sustainable system

Maintaining a cold chain is an ongoing process. Companies must regularly evaluate equipment performance, update monitoring technology, and refine workflows as regulations, products, and environmental conditions evolve. A flexible, data-driven system enables businesses to adapt quickly while ensuring that every shipment meets safety and quality standards.

Sustainability is one reason this system agility is important, as cold chain operations can be energy-intensive and generate significant packaging waste. To be sustainable, businesses will need to incorporate environmental best practices without sacrificing product integrity. Island Creek Oysters, for example, replaced non-recyclable styrofoam boxes several years ago with cardboard cartons lined with recyclable organic material.

Cold chain logistics challenges

• Rising utility and energy costs
• Environmental impact
• Operational disruptions

Even with advanced technologies and strict compliance measures, cold chain logistics companies face ongoing challenges that can disrupt product quality, increase costs, and strain operations.

Rising utility and energy costs

Refrigeration requires constant power, making energy one of the largest expenses in cold chain operations. As commercial utility rates rise, the costs of cooling trucks, warehouses, and storage units can be prohibitive for smaller businesses. Some companies are exploring solar or hybrid systems to offset energy use and stabilize long-term operating costs.

Environmental impact

Cold chain operations often rely on energy-intensive systems and packaging materials that contribute to carbon emissions and waste. Sustainability-minded food producers, such as Island Creek Oysters, recognize this challenge.

“It is like this kind of Achilles’ heel,” Chris says, “where you can do all you want on the farm and implement best practices that way, but ultimately it’s going into a carbon-intensive food chain to get food all over the country.” He notes that Island Creek’s supply chain is relatively short compared with global trade seafood flown in from Indonesia or Japan. Oysters, he adds, are the only protein commercially cultivated that are a net environmental benefit to the environment where they are grown.

Operational disruptions

Unpredictable factors such as severe weather, equipment failure, or human error can quickly compromise a shipment. A brief temperature excursion during transit can force businesses to discard entire shipments, resulting in financial loss and liability. Building redundancy—through backup generators, alternate shipping routes, and automated alert systems—helps reduce exposure to these risks and maintain business continuity.