Diversify Your Supply Chain Resources With a Rail System

By Carl Fowler, VP of Strategic Solutions, Lineage Logistics

Portfolio diversification is key to minimizing risk. Regardless of fluctuation in a market segment, diversification allows the investor to stay true to their business investment goals and maintain long-term growth projections.

It’s this same investment strategy that we should observe in the temperature-controlled transportation sector. As an industry, we’re dependent on over-the-road (OTR) transportation, and it’s time the food and beverage industry begins in earnest to explore different options. Understanding how the cold chain has arrived at this moment provides us with a road map to a more robust and durable transportation portfolio.

The team at Lineage Logistics looked over the horizon at what’s next in the world of cold chain transportation and acquired Cryo-Trans. We’ve analyzed predicted labor shortages, rising transportation costs for our customers, and the environmental impact of lowering emissions and determined that refrigerated and insulated railcars are necessary for temperature-sensitive transportation in our industry.

Today’s rail is a far cry from the inefficient, inflexible and outdated rail system of decades past. While decision-makers across the supply chain still hold on to these perceptions, at Lineage, we are improving cost savings, efficiencies, oversight and sustainability. With technological advances in recent years, rail can provide the timelines and efficiencies that are crucial to shippers in today’s marketplace. For customers concerned with rising shipping costs, time-sensitive deliveries of perishable items, or the environmental impact of their transportation needs, implementing rail into your transportation mix offers flexibility in an ever-changing marketplace.

Moving even a portion of your traditional business away from OTR or intermodal may represent a sizable change in corporate philosophy. While a change can present challenges in any industry, it can be performed seamlessly when working with the right partner.

Suppose the current status of the transportation industry has you considering the future of your company’s bottom line or how you can gain transportation efficiencies. In that case, we invite you to attend our upcoming webinar to hear more about how we have helped other frozen food companies overcome their supply chain challenges through diversification.

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