The State of Cold Logistics Supply Chain in a Developing Asian Country - A Preliminary Insights

Author(s):

  • Mohd Faizal Abu Hassan1 (Sultan Haji Ahmad Shah's Polytechnic, Pahang, Malaysia)
  • Abdul Hafaz Ngah1 (Universiti Malaysia Terengganu, Malaysia)
  • Mohamed Syazwan Ab Talib1 (Universiti Brunei Darussalam, Brunei Darussalam)

Abstract:
The increasing demand for cold chain logistics services in Malaysia has shown positive development. Food and beverages (F&B) industries dominate the demand and demand for pharmaceuticals and chemicals products are also on the rise. However, the under-supply of cold chain services could lead to a supply shortage in the future. Hence, this study aims to understand the reasons to adopt cold chain services among the providers from the perspectives in Malaysia. This exploratory study utilised a qualitative design and approach to gathering information on cold chain adoption. A purposive sampling method was applied, followed by interviews with the respondents who hold managerial positions. The results in this study showed that income diversification, higher profit margins, customer demand, company’s capabilities in terms of expertise, and resources were among the enablers that offered cold chain services. Furthermore, these enablers agreed that cost, lack of expertise and resources, customers location, and lack of government support were the barriers to these services. Later, the respondents agreed that the future of the cold supply chain in Malaysia had shown a positive trend driven by demand. Moreover, this study’s outcome can be a preliminary work to confirm the future findings and become a reference for non-providers for evaluation in their decision-making to become a cold chain provider.

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