Novi, Michigan, US: Lineage Logistics is expanding its services to target the fast growing home delivery sector with new acquisitions.
Lineage made two acquisitions made in 2021 in the home delivery market that boomed during the pandemic-related as consumers began ordering perishable foodstuffs online directly from manufacturers.
In May last year, Lineage acquired Crystal Creek Logistics, which provides final-mile home delivery for temperature-controlled products. Six months later, it acquired Perishable Shipping Solutions, a delivery service for similar types of companies.
The Crystal Creek transaction gave Lineage a relatively small entrance but the Perishable Shipping Solutions deal provided nationwide coverage with eight US warehouses.
Lineage plans to offer deliveries within two to three days of receipt of a consumer’s purchase order, according to Mark Nelson, founder of Perishable Shipping Solutions and the new head of Lineage’s home delivery business.
Manufacturers will manage inbound inventory flows into the warehouses. Once an order is placed either on a manufacturer’s website or on an e-commerce platform, the goods will be picked, packed in dry ice and shipped using parcel-delivery carriers.
The service will support orders of frozen and refrigerated products, as well as items like chocolate that can be kept at room temperature but are prone to melting at rest and in-transit. Lineage is exploring ways to integrate the eight Perishable Shipping Solutions warehouses with the 290 Lineage warehouses in the US and to become more involved in the inbound inventory moves currently handled by vendors,.
For now, Lineage is not handling fresh meal kit manufacturers like Hello Fresh and Blue Apron, though it supports orders of frozen meals, Nelson said.
“As the largest cold chain logistics provider, Lineage is uniquely positioned to be the partner of choice for the booming fresh and frozen direct-to-consumer market, which has experienced incredible growth in recent years,” Nelson said.
“Leveraging decades of experience in e-commerce fulfillment, in combination with Lineage’s comprehensive suite of transportation and temperature-controlled logistics solutions, our ability to support and scale with customers is unrivaled, whether they are primarily direct-to-consumer brands or brick-and-mortar brands considering an entrance to the market.”
