Zepto enhances cold supply chain for perishable profitability

Zepto, a grocery delivery platform, is working to improve its cold supply chain. The goal is to better control quality and increase profits in its perishable goods category. The company has reached out to experts for help in this area. Recently, Zepto partnered with the Transport Corporation of India to enhance its storage and distribution capabilities. Industry experts say strengthening the cold supply chain is crucial for quick commerce platforms like Zepto. Fruits and vegetables make up a significant portion of sales in this sector. They are also fast-moving items, making supply chain efficiency essential to maintain profitability. Zepto is already processing over 2 million fresh produce units every day. Despite these efforts, building a robust cold chain infrastructure poses challenges. India's existing cold chain system is underdeveloped, with issues like equipment shortages and power outages. This has led to substantial losses in produce due to lack of proper cooling. However, there is great potential in the market, which could grow to a valuation of $53 billion by 2032. Zepto's private-label meat brand, Relish, offers an advantage as it has established a cold chain network. Launched just months ago, Relish is projected to reach significant revenue growth. Nevertheless, creating an effective cold supply chain will require significant investment and strong execution capabilities, according to Zepto's leadership.