PRESENTATION TO 2014 TRANSPORTATION CONFERENCE October 8, 2014 Doug Harrison President & CEO VersaCold Logistics Services VERSACOLD BUSINESS UNITS END TO END SUPPLY CHAIN SOLUTIONS FOR TEMPERATURE SENSITIVE PRODUCTS VersaCold Third Party Logistics • Dedicated Facilities • Dedicated Contract Carriage • Customized Engineered Solutions • Fully integrated logistics services VersaCold Transportation Solutions (asset based) • LTL & Dedicated Carriage • LTL-Road & Intermodal (Frozen, Refrigerated) • TL (Frozen, Refrigerated) • Dedicated Contract Carriage • Dedicated Store Delivery VersaCold Transportation Management Solutions & 4PL (non asset) • Intermodal TL (Frozen, Refrigerated, Ambient) • Domestic & Cross Border TL (Frozen, Refrigerated, Ambient) • Transportation Management • Fully Managed Supply Chain Solutions (4PL) VersaCold Distributor Services • Specialized Distributor of Frozen and Temperature • • • • Sensitive Food Products Inventory Planning & Replenishment Marketing Support & Merchandising DSD and other Transportation capabilities Warehousing & Cross Docking VersaCold Logistics Solutions (Warehousing) • Frozen • Refrigerated • Ambient • Value Added; Labeling & Packaging • Reverse Logistics & Recall Management • Cross Docking • Inventory Management Page 2 TRENDS Industry Segment • Greater focus on product quality and food safety - Far greater regulatory requirements in Canada as well as Globally • Recall management • Consolidation of both the retailer and producer segments • Focus on “control” of the supply chain but also greater interest in co-operation • Focus on cost but more so efficiency & bottom line Page 3 TRENDS Supply Chain • Globalization of supply chain • Greater integration of technology and use of technology - Increased outsourcing Advanced planning & execution management Self service & reporting Remote sensing • Increased speed, fill rates and velocity • Growth of fresh foods and premium products • Capital, profitability through markets • Greater complexity Page 4 TRENDS Provider • Continued growth in outsourcing • Provider industry is consolidating • Cost pressures higher than rate of inflation primarily driven by: - Energy costs Talent • Providers focusing on market segments & focused service offering • Tightening Capacity Page 5 HOW IS VERSACOLD RESPONDING ? • Our goal is to work closely with our clients to provide value to their organization by; - - A consultative approach In depth modeling - beyond an RFP Expertise • Supply Chain • Food Safety • Technology • And others…….. Ability to evolve as our clients needs evolve Capital - intellectual and financial Investments in people and assets Page 6 SUPPLY CHAIN SOLUTIONS • Engineering Work Standards • Process Productivity • Process Flow Mapping • Standard Operating Procedure • Warehouse Simulation • Equipment Management within warehouse • Warehouse Layout • Asset and Equipment Utilization • Project Management from RFI to onboarding • Route Engineering • Customer Pricing & Costing • Network Modeling, Optimization & Simulation • Data Analysis and Management • Facility Rationalization • Supply Chain Solutions & Optimal Flow Development • Growth and Strategic Planning • Mode, Rate, Consolidation & Service Optimization • Continuous Improvement • Transportation Process Design Process Engineering Network Engineering Page 7 • Information Systems integration • Vendor Conversions and Implementation • Qualification & Assessment for Business Development Customer Solutions OUR APPROACH • Upgraded and increased our levels of talent - Supply Chain Engineering Operations Technology Customer Teams – Solutions • Technology Investments - Efficiency & Execution Recall Capability and Tracking Data Modelling Page 8 OUR APPROACH • Operations - - Integration of services and supply chain to reduce cost and increase speed & reliability SOP’s focused on; • Service • Process • Food Safety Far greater complexity in requirements and customization Equipment • Mutli Temp Trailer Equipment • Advanced Sensing Page 9 OUR APPROACH • Sustainability - Lighting & Boilers Paperless-use of EDI and tablets for capture Transportation Equipment • Reefer and Temperature monitoring • Energy Usage • Equipment Page 10 Thank You Page 11