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Cool Cargoes October 2015

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CC: What types of software and technol- ogy tools are most impacting the cold chain storage sector today? LOBO: Big data analytics can quickly, easily and accurately collect more data than ever before and then convert that information into actionable knowledge. Data collection technology such as sen - sors and the whole Internet of Things revolution will help give our managers a more complete view of the operation. And energy-efficiency technology continues to advance and help us lower our impact on the environment. CC: What new customer demands are driving changes at Lineage Logistics? For example, value-added ser vices related to food processing and/or prepar- ing foods for export? LOBO: Lineage Logistics offers customs brokerage services to shippers seeking a single-point provider to transport and store imported and exported food prod- ucts through U.S. ports across the country. Our expert customs brokerage team spe- cializes in each stage of the import-export process, managing customer product through customs clearance, ISF filings and USDA inspection. CC: Lineage Logistics has begun offer- ing more transportation services for its customers. What are some of these services, and how do they impact cus- tomers' cold chains? LOBO: Lineage Freight Management pro- vides third-party transportation solutions designed around customers' require- ments, parameters and objectives. These solutions take advantage of opportunities to optimize freight while reducing costs, increasing efficiency and speeding up time-to-market. Our team provides local transportation expertise with nationwide reach and a consistent shipping schedule to all major markets in the United States. We are also seeing dramatic growth in our redistribution business, which simplifies the manufacturer's outbound shipments and the distributor's ordering scenario, reducing lead times, transit times and improving overall performance within the supply chain. Lineage shortens transit times by serving as a central distribution point for multiple customers, as well as consolidating multiple items going to the same consignee, reducing or eliminating the need for LTL. CC: Where does Lineage Logistics see the market going in 2016? What are some of the biggest challenges and opportunities? LOBO: We see a continuing globalization of our customer base as well as more 3PL consolidation. Changing consumer shop- ping patterns, such as increased demand for convenience foods and perishable items, will also impact the industry. The biggest opportunities come from the increasingly complicated require- ments set out for us by our customers. They want product delivered in smaller time windows, but also want to reduce out-of-stocks and limit excess stock at retail. They also have more diverse sources for products and need to have visi- bility to product movements. This fits right into our wheelhouse because Lineage has the capability to support complex and changing supply chains. As an industry, one of the biggest chal- lenges we face is increased regulation covering food safety, transportation and more. We spend millions of dollars and considerable people resources to obey federal, state and local laws. CC Contact Lara L. Sowinski at COOL CARGOES THE JOURNAL OF COMMERCE 19 "THE BIGGEST OPPORTUNITIES COME FROM THE INCREASINGLY COMPLICATED REQUIREMENTS SET OUT FOR US BY OUR CUSTOMERS." Q&A

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