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Ports of Indiana 21st Century Logistics
SymposiumThomson, IncDavid Blackburn16
September, 2003
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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

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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

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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 DCs

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Thomson Indianapolis DC

• Accessories Pick-Pack
• 85K shipments small parcel
• Ramping to 50M unit capacity
• Inbound shipments primarily IMD, or Ocean IPI

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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

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Thomson - Challenges

• Integrate Logistics into suite of services to
  build for the future

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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

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Ports of Indiana 21st Century Logistics
SymposiumThomson, IncDavid Blackburn16
September, 2003