RLS Logistics, a third-generation cold chain solutions provider, recently created a joint venture it says will offer customers the ability to work with regional family-run cold storage providers on a national basis.
The cornerstone of the plan is to partner with existing best-in-class operators in 10-12 “megaregions” of the US, as well as Eastern and Western Canada. These operators, referred to as Partnering Regional Operators (PROs), will maintain equity in their respective regions and continue to oversee operations, customer relationships and team member development, RLS said. As RLS builds out this network, food manufacturers will be able to expand into new markets with the benefit of trusted relationships, hands-on involvement and the commitment of a family-run company.
Small- and medium-sized manufacturers of frozen and refrigerated foods will now have an entrepreneur-led alternative to the larger and more bureaucratic providers, the company added. “Food producers who are used to dealing directly with the owner of the business will be able to continue that tradition,” said Tony Leo, CEO of the RLS warehousing group. “Customer relationships and customized solutions are at the foundation of our business model, and we believe keeping key business decisions local will speed our responsiveness and differentiate our offering.”
Today, more than 60% of public cold storage operations in the US are owned by a handful of companies. After seeing the impact of consolidation in the cold chain industry in recent years, RLS leaders decided it was time to innovate and create a better alternative for its customers, the company said. “For manufacturers that are too small to be a priority at a larger provider, the RLS network provides the ideal combination of responsive service and scalability,” said Tom Casey, RLS chief investment officer. “There are multiple opportunities to invest capital for new facilities, acquisitions and other growth initiatives with our regional partners and their customers.”
Through this new program, RLS is combining the regional expertise and commitment of successful family-owned companies with the capital resources of a larger provider. “There are a lot of small- and medium-sized companies who want to do business with a network of family-owned service providers,” said Russell Leo, CEO of transportation for RLS Logistics. “This especially allows mid-market food manufacturers carrying multiple inventories access to reliable family-owned cold storage where they will be able to get the service levels they require.”
