Whether you’re a pharmaceutical or biotech company with highly regulated cold storage requirements for medications and vaccines, or you’re managing fresh harvests, processed foods or perishable goods which need refrigeration during distribution, you need a cold storage partner who understands the unique needs of your business.
After all, your main goal is to ensure the safety, efficiency and traceability of your goods. When partnering with a third-party cold storage provider, making certain all your T’s are crossed and I’s are dotted is imperative.
That's why we've compiled a list of five best practices you can implement to streamline operations and avoid potential issues.
Read on.
Choosing a third-party cold storage provider begins with evaluating the facility's location and design. Consider these factors:
Making the right choice ensures your goods are stored in an optimal environment and reach their destination efficiently.
Accurate data is key in cold storage coordination. A third-party cold storage partnership works best when the provider understands the services your business requires and its potential challenges. Inaccurate data creates unforeseen rate adjustments, so be sure to provide your cold storage partner with a detailed program profile.
In other words, good data translates into smoother operations and transparent costs.
Before setting up an account with a cold storage provider, it is important to establish clear release and recall procedures to prevent issues like unnecessary lot recalls, which can drive up costs and delay timelines. Third-party cold storage only notes the information of received goods that are required based on your program profile. If the data isn’t recorded upfront, then your cold storage partner will be unaware of the data you are releasing or using to put on hold. Make sure to articulate how a product is released (i.e., pallet ID, lot number, or item number) and develop a robust process to address recalls efficiently.
Clear communication prevents confusion and additional expenses during operations.
RF scannable pallet labels are a powerful tool when working with third-party cold storage companies. RF scannable labels ideally include item numbers, quantity on the pallet and production date in the scannable data. This eliminates most human errors in copying and transposing that data into the warehouse WMS. It also saves time on the receiving dock, which reflects a more efficient handling charge rate.
When RF labels are unavailable, pallet placards are the next best option and can provide essential data in a format that's easy to locate, saving time and improving accuracy.
Stay proactive with inbound and outbound shipments to maintain inventory accuracy:
EDI is a powerful, industry-wide tool designed for electronic data transfer between manufacturers and their customers with a cold storage provider acting as an intermediary to receive and transmit data for inbound shipments, inventory adjustments and outbound orders. If a manufacturer is not EDI-ready, (several companies can help evaluate these capabilities) the next best option is to implement a Standard Operating Procedure (SOP) for daily reconciliation of inbound and outbound loads to identify any discrepancies.
Managing cold storage for multiple clients presents unique challenges for third-party facilities. Unlike manufacturers who store only their own products, third-party providers must handle a wide range of labels, data formats and inventory from various manufacturers. To address this complexity, pallet placards and RF-scannable labels have become essential. Moreover, third-party cold storage providers often assign unique pallet IDs to each load, ensuring accurate tracking and preventing data mix-ups. By implementing these practices, third-party facilities can streamline operations, reduce errors and ensure the needs of each client are met.
Trust family-owned Interstate Cold Storage to take great pride in providing third-party cold storage solutions for your business. Contact us today to get started!
The first step is finding the right fit: a provider whose location serves your shipping lanes and whose building design aligns with how you move product (bulk vs. distribution).Then confirm the basics (like temperature capability, inventory visibility, and clear receiving/shipping processes) so you don’t pay for avoidable delays or surprises.
Bulk cold storage is built for high-density, longer-dwell pallet storage with fewer touches, while distribution cold storage is built for faster turns, more dock activity, and frequent in/out orders. Hybrid cold storage blends both—useful if you need steady reserve storage but also ship regularly to customers.
A strong program profile tells your cold storage provider exactly what you’ll store and how you’ll operate: item/SKU details, pallet configuration, temperature needs, average/peak volumes, and inbound/outbound cadence. Include any special handling (e.g., case pick, tempering), required data fields, and how you want inventory identified so rates reflect the real work.
Establish clear protocols upfront for how product is released (by pallet ID, lot number, or item number), who can place and clear holds, and what information must be captured at receiving. For recalls, agree on the step-by-step workflow (who notifies whom, what to quarantine, and what reporting you need) so you can move fast without pulling extra lots.
Use RF scannable pallet labels whenever possible, with key fields like item number, quantity, and production date encoded so the warehouse can scan—not retype—data into the WMS. If RF labels aren’t available, use clear pallet placards placed consistently; these practices reduce data entry errors and speed up receiving.
In third party cold storage, review inbound and outbound shipment reports within 24 hours so inventory or paperwork errors get fixed while the details are still easy to verify. Delays compound mismatches into larger reconciliation problems, missed shipments, and added handling or detention costs.
