port-centric logistics – our experience

Port-Centric Logistics – Our ExperiencePort-Centric Logistics – Our Experience

Life before TeesportLife before TeesportOur principal deep sea ports were Southampton and Felixstowe

In 2004, 90% of ASDA imports came through these two ports.

But experienced significant operational issues:o Southampton was severely congestedo Felixstowe was expensive and suffers from weather disruption

The result for ASDA was:o Extended lead times and high failure rates leading to poor

availabilityo Wasted DC capacity and high costs

The Site -PD Ports TeesportThe Site -PD Ports Teesport

Depot

o Build commenced 1st October 2005

o Over 2,500 job applications for positions at Teesport

o Opened 1st March 2006

The Site -A Brief HistoryThe Site -A Brief History

o 360,000 sq ft warehouse

o Parking for over 160 cars

o 2,600 sq ft Admin Office

o 48 Narrow aisles

o 55,468 storage locations

o 30,000 sq ft of flexible space

o Situated on Teesport 200 metres from Container Terminal

o Access to major road networks

The Site - InfrastructureThe Site - Infrastructure

8 ADCs/Spokes (Ambient)

1 Hub (IDC)

3 Clothing Centres

8 CDCs (Chill & Frozen)

+7 ASCs (Recycling & Tray Washing)

+2 Dot.com Fulfilment Centres

1 RDCs (Multi-Temp)

1 General Merchandise

2 Import/Decon. Centre

Current Distribution and Port Network

UK Ports of discharge Southampton

Felixstowe

Teesport

33 Depots & 5 Main ports

Tilbury & Thames port

Via Feeder

Where We GoWhere We Go

General MerchandiseTo Teesport via Deep Sea Ports34% Via Antwerp30% Via Felixstowe30% Via Zeebrugge6% Via Rotterdam

Modal ActivityShipping Lines feeder from their nominated ports.

FrequencyTypically once per week based on preferred operators or nominated 3rd Parties

Import FlowsImport Flows

GM VolumeGM Volume

Number of Containers - 350 weekly

Number of Pick Units - 810,000 weekly

Outbound Pallets - 17,000 weekly

Clothing64% of Total Clothing product is delivered into North East18% Stoke on Trent18% Northampton

Modal ActivityEast Coast Feeder, FXS to Teesport – 32%Rail from Sou to Cleveland – 32%Rail from Sou to Man/Bgh – 5%Rail from Fxs to Man/Bgh – 5%

FrequencyTwice weekly by feederRail depends on service varies between 3 and 7 days

Import FlowsImport Flows

George VolumeGeorge Volume

o 5 Day operation

o Combination of stock pick & X-Dock

o Peak volume - 350,000 cases weekly

Handling MethodsHandling Methods

Operations – Goods InOperations – Goods Ino Goods scanned onto

the system using RF technology

o Putaways done by VNA truck

o All movement is on GDS

o Coming soon GLS

Achievements so farAchievements so faro Continued YoY Growth

o ROSPA Bronze Award For Safety

o British Safety Council International Award

o 5* Health & Safety Audit

o RIDDOR Free Days 325

o Depot of the Year 2008

o 1.3m volume peak week (week)

Benefits of PD Ports Teesport

- Weather – Teesport is winded off only 1% per annum.- Relationship – Close and dedicated team at PD- Proximity – Teesport Port has a Fast Gate for Import

Containers- Value Added Services – Rework locality

Opportunities

- UK Exports would improve regional reloads- Frequency of feeder service aligned to Mainline vessels- Late Mother Vessels have to be supported by Road/Rail

connections

Summary & OpportunitiesSummary & Opportunities