When it comes to storing sensitive inventory items, climate controlled-warehousing is a game changer. But exactly how does it differ from other types of warehousing?

It’s not the heat, it’s the humidity. This is the most defining factor in the relationship between climate and temperature controlled warehousing. Let’s take a closer look and make sure a climate controlled facility really is the right fit for you.

What is a Climate Controlled Warehouse?

By definition, a climate-controlled warehouse is a storage facility equipped with environmental control systems that maintain a consistent and precise range of interior factors. These include temperature, humidity, and air quality designed to preserve the quality and integrity of stored goods.

Depending on the nature of the supply chain sector, the environmental control systems of a climate-controlled warehouse may include heating, ventilation, air conditioning, dehumidification, and air filtration equipment to regulate and monitor storage conditions.

For products that must avoid hot and cold extremes, “Climate Controlled” is another way of describing “room temperature”, or normal storage conditions that must maintain a range between 56°F (13.3°C) and 75°F (23.9°C) in a consistent atmosphere.

What’s the Difference Between a Climate Controlled Warehouse and a Temperature Controlled Warehouse?

It’s not the heat, it’s the humidity. This is the most defining factor in the relationship between climate and temperature controlled warehousing.

In other words, a temperature controlled facility focuses on temperature conditions whereas a climate controlled warehouse manages both temperature and humidity.

Climate and Temperature Controlled Warehousing Compared

Climate Controlled Warehouse:
Advantages: Dehumidifiers and air quality monitoring help you keep mold, dust mites, mildew, etc. from growing on your goods.
Disadvantages: Operationally top-heavy and not easily accessible.
Building Type: A climate-controlled facility is generally a much larger area comprised of multiple floors.
Operational Cost: Compared to temperature-controlled facilities, climate controlled units tend to cost approximately 15 to 20 % more.
Environmental Management: Climate controlled warehouses incorporate modern equipment such as HVAC along with thermostats to control and maintain optimal interior environmental conditions – the use of dehumidifiers instead of air conditions constituting the primary difference.

Temperature Controlled Warehouse:
Advantage: Ability to protect inventory from drastic temperature extremes associated with external conditions.
Disadvantage: Does not control relative humidity levels.
Building Design: Temperature controlled warehouses are typically part of larger warehouse facilities and relatively small compared to climate controlled units.
Operational Cost: Relative to climate controlled facilities requirements and size, temperature controlled warehouse are not that expensive. Being more agreeable to budgetary constraints, they can be easier managed based on customer requirements.
Environmental Management: Similar to climate controlled units, temperature-controlled warehouses need to be constantly monitored to maintain temperatures. As AI technology and equipment have advanced, the same monitoring work can be done more efficiently and send alerts for extraordinary temperature fluctuations.

Importance of Climate Controlled Warehousing

While a temperature-controlled warehouse maintains a consistent temperature range, a climate-controlled warehouse maintains a stable temperature, humidity, and air quality. Climate-controlled warehousing is critical for the storage of sensitive goods which can be damaged by fluctuations in humidity and air quality in addition to temperature.

Types of Products That Require Climate Controlled Storage

The range of products that flow through the climate-controlled supply chain are fairly diverse and part of our daily lives. Some of the items that may require climate-controlled storage include:

• Pharmaceuticals
• Nutraceuticals
• Electronics
• Artwork
• Wine
• Food items with a short shelf life
• Sensitive documents
• Cosmetics
• And natural fibers such as wool and silk.

These products and many others can be sensitive to fluctuations in temperature, humidity, and air quality, and require precise environmental control to ensure their quality and longevity.

What Certifications are Required?

In Canada, the regulatory certification required to operate a climate-controlled warehouse depends on the type of products stored. For example, along with SQF and HACCP certification, food products may require compliance with the Safe Food for Canadians Regulations (SFCR), while pharmaceuticals may require adherence to the Good Manufacturing Practices (GMP) guidelines.

Safe Food for Canadians Regulations formed January 15, 2019

In the United States, the regulatory certification required to operate a climate-controlled warehouse depends on the location, type of products stored, and whether the warehouse engages in interstate commerce. For example, food products stored in a climate-controlled warehouse may require compliance with the Food Safety Modernization Act (FSMA), while pharmaceuticals may require adherence to the Current Good Manufacturing Practices (cGMP) guidelines.

Current Good Manufacturing Practices originally finalized in April of 1969

Both countries have additional certifications that can be pursued, such as the ISO 9001:2015 for quality management systems and the ISO 22000 for food safety management systems.

How Climate Controlled Warehousing Works

A climate-controlled warehouse system works by using environmental control systems to regulate nature of the storage space within the facility. The specific mechanisms of a climate-controlled warehouse system may vary, but generally involve the following components:

1. Temperature control: Temperature control systems are used to maintain a consistent temperature range within the warehouse. This may involve heating, cooling, or both, depending on the climate and the products being stored.
2. Humidity control: Humidity control systems are used to maintain a consistent level of moisture in the air. This can help prevent the growth of mold, mildew, and bacteria, which can damage products and compromise their quality.
3. Air quality control: Air quality control systems are used to filter and circulate the air within the warehouse, removing contaminants and ensuring a clean, healthy environment.
4. Monitoring and automation: Climate-controlled warehouse systems often include monitoring and automation tools that allow operators to track environmental conditions in real-time and make adjustments as needed to maintain optimal storage conditions.

Together, these components work to create a controlled environment that preserves the quality and integrity of the products being stored in the warehouse.

Benefits of a Climate Controlled Facility

Compared to facilities that are only temperature controlled, using a climate-controlled warehouse to handle your products offers several key benefits:

1. Preservation of product quality: Because a climate-controlled warehouse maintains precise levels of temperature, humidity, and air quality, these warehouses can help preserve the quality and integrity of products that are highly sensitive to atmospheric conditions.
2. Extended shelf life: By maintaining optimal storage conditions, a climate-controlled warehouse can extend the shelf life of products, reducing waste and increasing profitability.
3. Protection against damage: Fluctuations in temperature and humidity can cause products to warp, crack, or otherwise become damaged due to a lack of environmental control. A climate-controlled warehouse protects against these risks, reducing the likelihood of product loss or damage.
4. Regulatory compliance: Some products, such as pharmaceuticals and food items, require specific storage conditions to comply with regulatory guidelines. A climate-controlled warehouse can ensure compliance with these regulations, reducing the risk of regulatory penalties or product recalls.

Overall, a climate-controlled warehouse provides a higher level of control over an interior environment and offers better protection for sensitive products over a facility that is only temperature controlled.

Trust Brimich for Your Environment-Controlled Warehousing Needs

With over 500,000 square feet of food-grade ambient warehousing and more than 275,000 square feet of food-grade cold storage space, Brimich is fully capable of handling your temperature controlled storage needs.

Contact us today to learn more about our HACCP compliant and SQF certified food-grade facilities.

Want to better control warehouse, freight, and delivery costs? Having a robust supplier compliance process in place helps to eliminate contention, remove bias and maintain objectivity.

What is Supplier Compliance?

Supplier compliance is a program designed to ensure suppliers conform to a company’s set of standards, specific requirements and at the same time, adhere to local regulations.

Due to the growing number of suppliers and diversification modern businesses have access to, supplier compliance also allows you to level the playing field in terms of what you expect according to your own set of standards and expectations.

Compliance best practices can include anything from making sure your materials are legally and ethically sourced, to ensuring the associated workforce is treated well according to BSCI (Business Social Compliance Initiative) social compliance standards, and compensated properly for their efforts.

What’s the Difference Between Supplier and Vendor Compliance?

Suppliers are typically one of the first links in the supply chain, doing business primarily through B2B relationships. Because they are removed from the retail end of the supply chain, suppliers do business according to compliance regulations and requirements more related to manufacturing.

Vendor compliance on the other hand, is the set of rules that cover a retailer’s requirements when they purchase from a vendor. The retailer then sells to the general public as a function of B2C (Business to Consumer) commerce.

Why is Supplier Compliance Important?

Maintaining a predictable level of performance and deliverables from your suppliers by means of compliance is an asset in your own business’ ability to prosper.

With the world shrinking, or as some would say becoming more flat, suppliers are increasingly becoming more scattered around the world. While suppliers and vendors enjoy enhanced levels of accessibility, communication and collaboration, the situation also carries inherited risks.

A Lack of Compliance Equals More Risk

Due to the increase in exposure to potential problems, the need for supplier compliance and conformance to your company’s needs becomes that much more important.

For instance, materials that show up on your dock with missing data or unfulfilled prerequisite actions can have a serious effect on operations resulting in major problems downstream. Or inconsistent materials can lead to quality control problems and even regulatory issues.

Furthermore, the type of business may have more stringent adherence policies due to the nature of the products being produced. For example, in the pharmaceuticals industry, proper compliance may need to include GMP (Good Manufacturing Practice) certification which: “describes the minimum standard that a medicines manufacturer must meet in their production processes”. Source.

Supplier Compliance and Relationships

Traditionally, supplier relationships have been in the form of intimate alliances and partnerships that can, under certain circumstances, undermine a compliance policy.

Having a robust compliance process in place helps to eliminate contention, remove bias and maintain objectivity. This improves supplier performance and can be qualified through analysis of key metrics and data points.

A well-planned supplier compliance program will lay out consistent goals and parameters. With the help of monitoring KPIs, this helps you standardize internal procedures and improve the cost effectiveness of operations. Perhaps more importantly, it gives you an edge over your competition and increases profits.

What to Include in a Supplier Compliance Policy

The purpose of a supplier compliance policy is to essentially standardize incoming production form outsourced businesses while at the same time minimize risk and liability.

To help control supply chain blind spots, compliance management must develop policies that keep up with supply chain evolution. The ability to retrieve information for audit evidence must be integrated into the company management systems in order to generate timely reports.

Therefor, categorizing supplier information, operations and procedures into discrete elements allows a company to stay on top of supplier performance.

A robust management process involves monitoring and updating supplier metrics set out in a typical policy. For example:

1. Capability Assessment
   • The gathering of information that is specific to the supplier.
   • Verification of supplier information. This data should be instantly retrievable and kept current at all times.
   • Authorized supplier usage. Without sticking to a list of authorized suppliers, companies expose themselves to additional risks. Non-approved suppliers may offer more attractive buy-in price points, but may also not conform to quality control standards required for your business.
2. Supply Contract Management
   • Make sure clear policies and rules are in place so suppliers are fully informed as to what is expected.
   • Formalize your requirements through contracts and agreements. Leave nothing to chance.
   • Include controls and restraints. Make sure suppliers understand your company’s boundaries and processes that need to be followed.
3. Performance Monitoring
   • Accountability. Just because you continually monitor for effectiveness does not remove a supplier from their responsibilities of compliance and performance. Suppliers must not be lulled into complacency.
   • Auditing. While traditional physical audits serve their own purpose, technology can also be used to maximize efficiency and minimize down-time.
   • Measure KPIs. Key performance indicators allow you to measure the pulse of performance. Gather and analyze statistics that show whether desired targets are being achieved or not. These could be percentages that quantify successful delivery times, material quality and consistency or return rates.

Compliance and Automation

As companies evolve, corporate systems become more complex to the point where the cost associated with managing an effective compliance program can become less attractive.

No company likes the idea of manually reading every certificate of analysis (COA) and comparing it to the required specification. It can an impossible task often coming in different formats and sometimes arrive even after the shipment’s been received.

If a company is lagging in development, problem detection and early warning just don’t happen. In worst cases some item problems are detected only after the container has been opened on the plant floor

The solution is to implement software that monitors a supplier compliance according to corporate standards, regulatory and legal responsibilities.

Effective Strategy Through Policy

Of all of the strategies used by companies, supplier compliance is often a critical program used to control costs. A formal, well-defined compliance policy used with every supplier can provide accountability and lower warehouse, freight, and delivery costs. With additional benefits such as increased speed and accuracy, vendors receive better service and higher customer satisfaction.

In general, a good supplier compliance policy will allow vendors to implement advanced supply chain systems. In linear markets, this could be just-in-time inventory, source ticketing and tracking, and advanced shipping notices (ASNs), all of which provide greater efficiency.