Sunland has so much to be thankful for this year – our team, our customers, and our promising future! Sunland was recently named, as a “Top 3PL to Watch” in Global Trade Magazine’s list of America’s Leading 3PLs. This was certainly exciting news, not only because it is positive press, but because it indicates people outside of our local area are starting to learn about Sunland - even in the early stages of our company’s growth strategy. This recognition should serve as a motivator to our entire team to keep the positive momentum going

because, “we’re being watched.” So how do we keep up the positive momentum? That’s a great question because growing a company can be tricky business. Continuously adapting to change and expanding our resources in a smart, sustainable way requires focused leadership, great people, and the right tools. So, at the core of sustaining the momentum is taking care of customers, taking care of people, and embracing change in a dynamic environment.

In October we held our Annual Kick-Off Meeting with Sunland’s management team to review past performance, discuss plans for achieving the upcoming year’s goals, and to communicate our Destination 2018 strategic initiative that spells out the following key milestones we’re positioning ourselves to reach:

1. Retain 100% of our strategic customers2. Grow strategic customer base by 50%3. Develop 10 case studies illustrating new value creation4. Build a scalable e-commerce platform5. Expand geographic footprint6. Hire, retain, & promote the best talent

We have a focused idea of where we’re going, and with our lean initiative, we believe we will have the right tools to help get us there. Recently, Twenty-two Sunland leaders spent two days offsite with LeanCor, training on the fundamentals of lean principles and execu-WLRQ��%HJLQQLQJ�WR�XQGHUVWDQG�KRZ�WR�VWDUW�WKLQNLQJ�OHDQ�DV�D�WHDP�ZDV�WKH�¿UVW�VWHS�RI�an ongoing journey that I’m truly excited about on both a personal and professional level. /HDQ�LV�RIWHQ�GH¿QHG�DV�“Providing the most value to the customer at the least, possible

cost.” Now, who wouldn’t be excited about this? We expect this to be a game changer for RXU�FRPSDQ\�DQG�FXVWRPHUV�DV�ZH¶YH�DOUHDG\�VHHQ�VLJQL¿FDQW�YDOXH�FRPH�IURP�WKH�¿UVW�couple of kaizen events held at our Black Hawk and Trinity Facilities. The CEO of LeanCor, Robert Martichenko, calls himself a student of lean (and this is after 25 years of practical experience). Sunland and our management team are in “learning by doing mode,” and we are starting to see some real results. Spearheading this initiative for Sunland is Rick Graham, VP of Quality & Implementations, whose automotive LQGXVWU\�H[SHULHQFH�DQG�OHDQ�H[SHUWLVH�JLYHV�PH�FRQ¿GHQFH�LQ�RXU�DELOLW\�WR�WUXO\�PDNH�continuous improvement a part of our culture – and for this, I am also thankful.Happy Holidays,

Sincerely,

Arch ThomasonCEO, Sunland Logistics Solutions

IN THISISSUE

CEO LETTER

INDUSTRY HIGHLIGHT

RECOGNITION & REWARD

QUALITYMOMENT

OPERATIONSHIGHLIGHT

LEAN LESSON

SAFETY MOMENT

CELEBRATION

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CEO LETTER

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INDUSTRY HIGHLIGHT

A team from Sunland recently attended the global annual conference for logistics and supply chain put on by the Council of Supply Chain Management Professionals to network and learn about the latest industry trends. The three day conference was chocked full of inter-esting presentations and engaging panel discussions from industry leaders. Here are a few highlights from the conference.

Industry Insight Gained at CSCMP’s Annual Conference

THE FUTURE OF OMNI-CHANNEL DELIVERY- Jeff Starecheski, VP of Logistics for Sears

5 YEAR PREDICTION:��6PDUW�SKRQHV�OLQNHG�WR�WKH�FORXG�ZLOO�EHFRPH the epicenter of people’s lives.��/LQHV�EHWZHHQ�VRFLDO��UHWDLO��DQG�VHUYLFLQJ�ZLOO continue to blur.��7KH�GH¿�QLWLRQ�RI�UHWDLO�ZLOO�FKDQJH�WR�EH� enablers of lifestyle choices.��6SHFL¿�F�GHOLYHU\�WLPHV�DQG�PXOWLSOH�%�WR�&���IXO¿�OOPHQW�ORFDWLRQV�ZLOO�H[LVW��RI¿�FH��NLRVNV�� lockers, and home.��&URZG�VRXUFLQJ�DQG�VDPH�GD\�GHOLYHU\�WUHQGV will accelerate.

�����7+,5'�3$57<�/2*,67,&6�678'<THE STATE OF LOGISTICS OUTSOURCING

- John Langley, PH.D.,and Capgemini

MAJOR INDUSTRY TRENDS��2PQL�FKDQQHO�UHWDLOLQJ�FKDOOHQJHV��7DOHQW�VKRUWDJH��&ORXG�EDVHG�&50�VROXWLRQV��0H[LFR�PDQXIDFWXULQJ���ORJLVWLFV�KXE��'HPDQGLQJ�FXVWRPHUV�OHDG�WR�QHZ solutions and creative partnerships��2WKHU�NH\�LVVXHV�� ��6XSSO\�FKDLQ�ULVN�PDQDJHPHQW� ��7UXFN�GULYHU�VKRUWDJH� ��&RUSRUDWH�VRFLDO�UHVSRQVLELOLW\�

���/HW�����À�RZHUV�EORVVRP��LI�\RXU�SURGXFW�����À�RXULVKHV�LQ�DQ�XQLQWHQGHG�PDUNHW��JR�ZLWK�LW��2. Polarize people (can’t please everyone)3. Churn baby, churn (ignore nay-sayers and focus on continuous improvement)4. Niche thyself (provide unique value)5. Perfect Your Pitch

6. Desire to make meaning, not money7. Make a mantra8. Jump to the next curve9. Roll the DICEE. Products should be… Deep, Intelligent, Complete, Empowering, and Elegantly designed10. Don’t worry be crappy (don’t wait for perfection during a revolution)

7+(�$57�2)�,1129$7,21�±����7,36�)25�,1129$7,21- Guy Kawasaki, Chief Evangelist, Canva and Former Special Advisor to the

Motorola Business Unit of Google and Apple executive.

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PEOPLE: RECOGNIZE & REWARDSunland believes that the quality of our processes and the strength of our company are dependent on our ability to develop the talent and leadership skills of our associate base. We aspire to provide all the members of our team with a positive work environ-ment. The ICare program is an associate incentive based program designed to reward performance excellence.

�WK�4XDUWHU�,&$5(�:,11(5&21*5$78/$7,216��'DYLG�3HDUVRQDavid has continued to display his willingness to go above and beyond for Sunland and our customers, providing additional after hours and weekend support to help every operation at our Trinity facility. David served a critical role in processing over-ÀRZ�PDWHULDO�IRU�D�QHZ�FXVWRPHU�DQG�ZDV�LQVWUXPHQWDO�LQ�WKH�RUJDQL]DWLRQ�RI�WKH�product and completion of a successful physical inventory. This would not have been possible without his attention to detail and extra effort. David has recently taken on GLUHFWLQJ�WKH�RQ�WKH�ÀRRU�RSHUDWLRQV�IRU�D�QHZ�FXVWRPHU�DQG�KDV�EHHQ�OHDGLQJ�WKH�

evening shift while loads are processed.

Perhaps David’s most notable contribution to Sunland continues to be his role in training new associates in the Trinity facility. In the past quarter alone, David has provided more than 30 associates with training LQ�DOO�DUHDV�RI�RSHUDWLRQV��VDIHW\��DQG�KRXVHNHHSLQJ�DQG�KDV�VHUYHG�DV�WKHLU�¿UVW�SRLQW�RI�FRQWDFW�GXULQJ�their transitional period. David has demonstrated a great sense of pride in this position and shows a true ownership of the success and challenges of his new fellow associates. Please join us in congratulating David on winning this award, and thanking him for his outstanding service to Sunland and our customers.

ICARE

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“Billy has shown a proactive approach to identifying areas for improvement throughout the facility and has continually displayed the initiative to turn these thoughts into actions.”

“Lucy goes above and beyond her responsibilities almost daily to help Sunland and has built relationships with most all our vendors and customers (which is critical to the success of her position), especially given the growth Sunland is experiencing.

“Stephanie never misses a deadline, she is proactive, and she is a strong leader.” While her role is Director of HR, she often wears many hats to ensure the success of team objectives.

2014 Above & Beyond Award Winners

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QUALITY MOMENT

Continuous Improvement as a CultureAfter almost 25 years of involvement in the “Body of Knowledge” of quality and working with world class companies that are leaders in creating customer loyalty, I have found certain attributes that are consistent or commonly deployed in each of these companies. The process of making things better and better over time usually translates in to “better, faster, cheaper,” products and services. Companies that achieve incremental changes in their organizations are usually highly intentional in their focus on creating a culture for making things better for themselves and other key stakehold-ers. Here are a few attributes that resonate.

At Sunland these attributes continue to evolve as our company grows. Our Destination 2018 strategy has continuous improvement and customer loyalty as key tenets. We encourage each of our customers, associates, and suppliers to EH�SDUW�RI�WKH�IHHGEDFN�ORRS�WR�KHOS�XV�NHHS�RXU�FRQWLQXRXV�LPSURYHPHQW�³À\�ZKHHO´�WXUQLQJ�

Elijah Ray

Executive VP Customer Solutions

��/HDGHUVKLS��Leaders in organizations that create a mindset for continuous improve-ment typically make quality and continuous improvement part of the core values of the company. In the companies where continuous improvement is evident, the value state-PHQWV�DUHQ¶W�MXVW�QLFH�ORRNLQJ�SODTXHV�DQG�¿[WXUHV�WKDW�FRPSOHPHQW�WKH�RI¿FH�IXUQLWXUH��those values are lived and breathed by the leadership and they set the example for those values by being involved and requiring systems processes that support progress.

��(GXFDWLRQ�DQG�/HDUQLQJ��In organizations where continuous improvement efforts are most successful, there are management objectives, goals and budgets set aside for education, and training. Additionally, a culture of learning is emphasized and embraced by leaders in order for it to ultimately make its way to the grass roots level. Next genera-tion leaders are born out of a desire to learn, grow, be developed, and become effective in the jobs or purpose for which they are called.

��&XVWRPHU�&HQWULFLW\� In companies where there are great results from continuous improvement efforts, there is relentless passion for “doing what is right” for the customer. Companies who are focused on doing what is right for the customer are good listeners and are good at data mining and understanding customers’ short term and long term needs. Doing what is right is usually based on facts and data rather than warm fuzzy feelings (although those may work sometimes). The Customer Relationship Manage-ment process is one that is known and understood by all leaders involved in touching the customer. Everyone knows their role with the customer and how their role can impact the customer.

��3HUIRUPDQFH�5HVXOWV� Companies that are good at achieving incremental changes that positively impact their organizations are good at holding people accountable in a positive way for getting results. Continuous Improvement is driven by efforts to constant-ly be better, fast, and cheaper. The companies who do this well have a way of communi-cating these results to their organizations that is persuasive and motivating to other team members, and thus the entire organization is inspired to be actively involved in moving their organization forward in this way.

SUNLANDLOGISTICSSOLUTIONS.COM

OPERATIONS HIGHLIGHT

SAFETY MOMENT

LEAN LESSON

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6XQODQG¶V¶�'RQDOGVRQ�&HQWHU�IDFLOLW\�ZDV�UHFHQWO\�UHWUR¿�WWHG�LQ�SUHSDUDWLRQ�RI�supporting the needs of two new customers. Thanks to Janis McLees, VP of Facility & Asset Management, and her maintenance crew for all of their hard work. We were selected by NewPage to operate their 125,000 SF Regional Distribution Center at Donaldson Center Building B. The team started receiv-ing product for NewPage in July 2014 and began shipping on September 8, 2014. Our RDC stores paper product that supplies printing operations in SC, NC, GA, AL and FL. We have received very positive feedback from this new customer on our service. 1HZ3DJH¶V�'LVWULEXWLRQ�6HUYLFHV�0DQDJHU�VWDWHG�WKLV�KDV�EHHQ�D�VXFFHVVIXO�VWDUWXS�DQG�RQH�RI�WKH�EHVW�KH�KDV�EHHQ�LQYROYHG�LQ��7KLV�LV�XQGHQLDEO\�WKH�UHVXOW�RI�D�JUHDW�WHDP��Sunland was also selected as a provider to operate outside warehousing for a major textile manufacturer this past September at Donaldson Center Building A. The team started receiving product in late September and completed warehouse transi-tion from the customer’s facility over the weekend of October 25 and 26. Out-bound shipments began immediately on October 27. The facility stores rolls of automotive carpet and ships to customers in US, Canada and Mexico. Our new customer has expressed the appreciation for transition and startup. Let’s keep up the good work! As a result of wining these two accounts Sunland’s leadership team has gained two new valuable members. Welcome to the team Howard Lowe, Site Manage, and Graig Glenn, Operations Manager.

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$�IRRG�PDQXIDFWXUHU��MXVW�PLQXWHV�DZD\�IURP�6XQODQG¶V�FRUSRUDWH�RI¿�FH��recently had to evacuate 12 – 15 people and hospitalize one due to elevated levels of carbon monoxide. This occurred after forklifts had been running in a facility that had been shut up tighter than usual due to cold weather.

On average over 400 accidental deaths each year occur in the U.S. due to carbon monoxide poisoning. Please make sure you have detectors at your place of work and at home. They are inexpensive and easy to install. In fact, while you’re visiting with loved ones over the holidays, check to see if they have one as well.

SUNLAND LEADS WITH SAFETY

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Kevin Jones 1Lucy Ann Cieply 3Carla Graham 7Billy Hall 2Patricia Griffon 13

Joshua Savage Warehouse SupervisorGraig Glenn Operations Manager-RVKXD�6HU¿HOG�*UHHQH� )RUN�/LIW�2SHUDWRUClifton Varner Fork Lift OperatorEric Robinson Fork Lift OperatorDavid Walbridge Fork Lift OperatorAngel Rodriguez Material HandlerLarry Smith Fork Lift OperatorGlenn Miller Material HandlerGloria Diggs Receiving Lead

Johnny R. Abercrombie 3Clarence D Pearson 3Tyrone D. Young 3Willie C Phelps 2

2FWREHUKitty Forry 10-03 Wayne McCullough 10-05 Darrin Jones 10-11Kevin Jones 10-13Eric Robinson 10-19Duane Knabe 10-21 Zach Smith 10-21Johnathan Fourney 10-22 John Staton 10-23Rhonda Hipps 10-27Nancy Reeves 10-27Noah Whiteside 10-27 David Walbridge 10-29Nat Lobengilo 10-29

1RYHPEHUMichelle Ginieis 11-01 Shannon Davis 11-02 Dave Manners 11-04Shabaka Jenkins 11-07Graig Glenn 11-09 Reed Brogan 11-14 Howard Lowe 11-17Leland Cox 11-17 Mary Ann Watson 11-19 Eugene McCarroll 11-26 Molly Stech 11-28Nathan Maloney 11-29

$XJXVWChuck Webb 12-02Liza Twery McAngus 12-06Richard Smart 12-07 Kenneth White 12-08 Joenell Singleton 12-10 Clark Peden 12-12Michelle Green 12-15Charles McGrier 12-17 Erica McMillian 12-20Stacie Starks 12-22Bobby Williams 12-24Leigh Craigo 12-24Pat Griffon 12-26

ASSOCIATE ANNIVERSARIESA special heartfelt thank you for all the hard work and

dedication in your service to Sunland and our customers.

WELCOME TO SUNLAND!

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