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Ports of Indiana – 21 st Century Logistics Symposium Thomson, Inc David Blackburn 16 September, 2003 . Thomson – Consumer Products Logistics. Responsible for managing transportation and warehousing in a cost effective manner, while meeting retail partners supply chain requirements
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Ports of Indiana – 21st Century Logistics SymposiumThomson, IncDavid Blackburn16 September, 2003
Thomson – Consumer Products Logistics • Responsible for managing transportation and warehousing in a cost effective manner, while meeting retail partners supply chain requirements • Broad Product portfolio: Television, Video, Audio, Telephones, Digital Set-Top Boxes, Accessories • Three regional Distribution Centers • Los Angeles – West Coast • Indianapolis – Midwest – East Coast • El Paso – Manufactured Product
Thomson – Consumer Products Logistics • High level of activity • 250K outbound shipments per year, approximately 600 Million pounds • 12K FCL Ocean shipments • Distribution Centers comprise 2.8M square feet of warehousing • Manage logistics with key 3PL partners
Thomson – Indianapolis DC • House multiple warehousing functions in 1.4 million square feet: Consumer Products Bulk, Accessories Pick-Pack, Display Storage, After Sales Spare Parts storage and fulfillment • Consumer Products • 35K outbound shipments, approximately 150 Million pounds • LTL – 75% of orders, 20% of the weight • OTR – 15% of orders, 60% of the weight • IMD – 10% of orders, 20% of the weight • Primarily to customer DC’s
Thomson – Indianapolis DC • Accessories Pick-Pack • 85K shipments small parcel • Ramping to 50M unit capacity • Inbound shipments primarily IMD, or Ocean IPI
Thomson - Challenges • Retail partner requirements more demanding • Various compliance programs • Shorter order to delivery cycle times • Lower inventory, no margin for error • Productivity, and Cost variability • Consolidated loads • Cube utilization • Mode Mix • Carrier performance • 3PL execution
Thomson - Challenges • Integrate Logistics into suite of services to build for the future
Thomson – Indiana • IMD service to Indianapolis • Lack of major Hub creates issues for cost and execution • Dray cost from Chicago is significant • Coordination of Dray, and equipment has negative impact on service • All water East Coast imports is a threat • Cost is competitive with West Coast/Trans Con IMD import • Transit time improvements • East Coast DC has shorter lead times
Ports of Indiana – 21st Century Logistics SymposiumThomson, IncDavid Blackburn16 September, 2003