Cold Storage Warehouses: Learn How They Work & Their Types!

For business owners, product storage plays a role just as important as the production process. Improper storage risks compromising product quality, especially for products that must remain fresh. This is where cold storage warehouses come into play.

Cold storage warehouses are essential before products are distributed to customers through various logistics services. To learn the ins and outs of cold storage warehouses, from their definition, how they work, types, to their benefits, check out the following explanation!

What Is a Cold Storage Warehouse?

A cold storage warehouse is a specialized refrigerated facility designed to store perishable products at controlled temperatures and humidity levels. Temperature control inside a cold storage warehouse aims to extend product shelf life and maintain quality.

Products commonly stored in cold storage warehouses include fresh agricultural produce (fruits and vegetables), milk and dairy products (cheese, yogurt, butter), meat, seafood, frozen foods, pharmaceutical products, and vaccines.

How Cold Storage Warehouses Work

The following is an overview of how cold storage warehouses operate, from the moment products enter the facility until they are shipped to customers:

1. Product Receiving

Before entering the cold storage warehouse, products must undergo a series of handling processes in a temperature-controlled loading and unloading area. Here, the products are scanned, assigned a batch number (lot number), and their temperature is checked. The product’s temperature upon arrival at the warehouse must be recorded in the incoming product batch data.

The temperature check during this receiving stage aims to ensure the product’s temperature remains safe before storage. Many warehouses aim to keep products at room temperature for no more than 20 minutes before transferring them to the cold storage area.

2. Storage Zone Assignment

After passing inspection, products are placed in storage zones determined by the slotting logic within the Warehouse Management System (WMS).

WMS is a warehouse management software that helps companies manage all storage activities, from product receipt to shipment.

Through slotting logic, the WMS determines storage locations based on product type, picking priority, and expiration dates. For example, frequently picked products are placed near the shipping area, while infrequently picked products are stored on the back shelves.

3. Inventory Rotation

At this stage, the FIFO (First In, First Out) and FEFO (First Expiry, First Out) methods are applied. In the FIFO method, products that enter the warehouse first must be picked first.

Meanwhile, under the FEFO method, products with the nearest expiration date must be shipped first, even if they were not the first to enter the warehouse.

The FEFO method is easier to implement when warehouse management uses a WMS. This is because a WMS can help track the expiration dates of each batch and then determine which products should be picked first.

4. Temperature Monitoring

Temperature monitoring in cold storage warehouses is performed automatically by sensors and occurs continuously. Temperature sensors are installed in each storage zone and measure the temperature at specific intervals, such as every 5 to 15 minutes.

If the temperature in a specific zone falls outside the specified tolerance limits, the system will notify the supervisor or the responsible team.

All temperature data must be archived as it serves as a compliance record, providing evidence that the company has stored products in accordance with industry standards and regulations.

5. Shipping

After being retrieved from the storage racks, products included in a single order are consolidated and then loaded into a refrigerated vehicle.

A cold chain handover document must accompany every product leaving the cold storage warehouse. This document contains several important pieces of information, including product identification, batch number, and temperature history during storage.

Types of Cold Storage Warehouses

Based on temperature, cold storage warehouses are divided into two main categories: refrigerated and frozen. These two categories are further subdivided into several types with different functions. Here are the details:

1. Refrigerated Cold Storage

Refrigerated cold storage maintains a storage temperature of approximately 2–8 °C. This temperature range does not freeze the products but slows the growth of microorganisms that can cause products to spoil quickly.

Practically, several warehouses fall under the refrigerated cold storage category, including:

Chill room: Maintains a temperature of approximately 0–4 °C. It is generally used to store fresh agricultural produce, dairy products and processed dairy goods, as well as chilled beverages.
Controlled atmosphere storage (CA storage): Set at the same temperature as a chill room but equipped with gas control systems, such as the ability to lower oxygen levels or increase carbon dioxide levels. This facility is commonly used to store fruit.
Pharmaceutical cold room: Specifically designed for the pharmaceutical industry to store vaccines, biological products, and various other therapeutic products. This facility operates at a temperature of 2–8 °C.

2. Frozen Cold Storage

The second type of cold storage warehouse is frozen cold storage, which maintains a temperature of approximately -18 °C to -30 °C. Frozen cold storage is further divided into the following facilities:

Freezer store: Maintains a temperature between -18 °C and -25 °C and is typically used to store frozen products, such as ice cream or frozen foods.
Blast freezer: The temperature is very low, ranging from about -30 °C to -40 °C. Its function is to quickly freeze products, such as fresh beef, seafood, and high-value agricultural commodities (premium fruits or vegetables).

Benefits of Cold Storage Warehouses

By utilizing cold storage warehouses, companies will gain the following benefits:

Ensuring food safety: Controlled temperatures in cold storage warehouses help slow the growth of microorganisms that cause spoilage. As a result, food safety is better maintained.
Improving energy efficiency: With insulation systems, companies can optimize energy efficiency and reduce the risk of losses due to product damage.
Optimizing storage capacity: With warehouses featuring multi-tier shelving systems and optimized vertical space, storage capacity becomes more efficient, allowing companies to store more products without having to expand the building.
Ensuring product traceability: Cold storage warehouses are generally equipped with systems that enable product history tracking. This is particularly helpful when customer complaints arise or product recalls are planned.
Reducing workers’ exposure to cold temperatures: With cold storage warehouses that use WMS and automation systems, workers do not need to spend too much time in cold rooms. Thus, the risk of health issues caused by exposure to low temperatures can be minimized.

Modern Cold Storage Solution from CDI

After understanding the types and benefits of cold storage warehouses, it is time to choose the facility that best suits your business needs. Selecting the right cold storage warehouse is the first step toward maintaining product quality until it reaches the customer, while also building long-term customer trust and loyalty.

However, cold storage warehouses also need to be supported by a reliable logistics system. If you are looking for a logistics partner that also provides modern cold storage solutions, PT Chandra Daya Investasi Tbk (CDI) is a trusted choice.

Through its subsidiary, PT Chandra Cold Chain (CCC), CDI offers integrated cold storage services. CCC provides modern cold storage warehouses with a capacity of up to 700+.

All of CDI’s services are supported by advanced technology and a trained workforce. Make CDI your #YourGrowthPartner to support more efficient logistics operations and boost your business’s competitiveness!