INTERMODAL THE PRESSURE IS ON
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1 INTERMODAL THE PRESSURE IS ON RETAIL SUPPLY CHAIN CONFERENCE 2015
2 Arthur Adams Director Sales CSX Transportation RETAIL SUPPLY CHAIN CONFERENCE 2015
3 CSX: a leading transportation supplier CSX Corporation CSX Transportation Provides an important link to the transportation supply chain CSX Intermodal Terminals, Inc. (CSXIT) provides intermodal terminal services for CSX Transportation s intermodal business CSXIT Trucking Operations Nationwide rail network on CSXU fleet Includes the drayage solution CSX Technology, CSX Real Property Inc., Transflo, and Total Distribution Services, Inc. Company Overview America s first railroad Founded in 1827, headquartered in Jacksonville, FL Largest rail network in east 21,000 route miles in 23 states, serving 70 ports Significant resources Over 4,000 locomotives, 70,000 freight cars, 30,000 employees Serving more than 45 intermodal terminals, lifting over 15M TEU Ranked 231 on Fortune 500 $12.03 billion of revenue in 2013
4 Market trends support intermodal usage Supply Chain Optimization Fuel Costs Near Sourcing Decreasing Driver Supply Regulatory Restrictions Tight Capacity Increasing Freight Projections Changing Distribution Models Intermodal has an important place in this dynamic landscape
5 Broad network reach extends capacity CSXT s Intermodal Network Corridor approach in dense lanes connects major markets Northwest Ohio Core power lanes Intermodal terminals Hub-and-spoke supplements corridor approach, providing connectivity between mid-tier markets CSXT s network provides reach to more than 40 Eastern markets Broad reach provides greater opportunity for modal optimization More intermodal lanes create opportunity to reduce risks Control costs Increased access to capacity
6 CSX prepared to handle future growth U.S. freight volumes projected to increase 20% by 2024 Trucking has largest share, intermodal growing fastest CSX investment strategy enhances rail network Better responsiveness to changing portfolio and market conditions Collaborative partnership with customers Focus on service
7 Rich Higgins Divisional Vice President Beall s Inc. RETAIL SUPPLY CHAIN CONFERENCE 2015
8 Beall s Inc. Beall s Inc. is the parent company of: Beall s Department Stores Beall s Outlet Stores Burke s Outlet Stores There are 530 stores in 17 states across the U.S. Sunbelt. C-TPAT Tier III Certified and Validated Importer OSHA Sharp Award Recipient Certified EPA Smart-Way Partner
9 Beall s Inc. How supply chain and logistics impacts your core business: The success of our core business is closely tied to the operational execution in our supply chain. We have an important responsibility in logistics to have alternative plans in place in case of natural or other unanticipated disasters. We cannot disrupt the flow of merchandise to our 530 stores for any significant length of time. Our internal Logistics team and all external providers need to be in sync at all times and ready to change on short notice. Both parties need to have viable disaster recovery processes in place to keep the business running efficiently.
10 Beall s Inc. Importance of intermodal in our supply chain/logistics strategy: With our D.C.s situated in Southwest FL, we are highly dependent on intermodal in the Beall s Inc. supply chain. Over 60% of domestic receipts arrive via intermodal transportation. This trend will continue as long as the truck vs. rail cost differential and transit times do not further deteriorate. Intermodal transits are built into PO s which are written to ensure vendor ship windows will result in consistent delivery flow. Primary domestic intermodal origins are CA and NY/NJ. Work collaboratively with CSX at destination ramps to ensure quick turns and the administrative process is seamless.
11 Beall s Inc. Key areas of focus for intermodal in 2015: Identify all truck to rail conversions opportunities. Closely monitor rail transit times out of CA and northeast primarily. Closely monitor CSX terminal productivity, efficiency and turn times. Closely watch and monitor free time on rail containers and ensure DC prioritization and FIFO receiving. Improve drayage carrier performance on pick up and return process. Increase level of BCO communication and interaction with railroads. Develop and enhance partnerships with all railroads. Flexibility in having off hours and weekend gate options at rail.
12 Wendy Herrick VP Supply Chain North America Unilever RETAIL SUPPLY CHAIN CONFERENCE 2015
13 Unilever
14 Unilever
15 Slide Title Business Strategy Supply Chain Transformation Portfolio Reshape Win in the Marketplace New Technologies Transforming our Factories & DCs Network Effectiveness Invest Behind the Core $ One Team Leading Edge Capabilities Talent and Organization
16 USLP & Intermodal Deliver Goals through Focused Agenda Building Brands with Purpose Transformational Partnerships Champion Sustainable Agriculture in the US
17 The Next Chapter. Logistics Program Focus Project Silverbolt Ambition: Increase IMDL from 20% to 25% INTERMODAL Intermodal expansion is an important part of our 3 year Logistics Program Ambition: double the intermodal utilization (from 20% to 35% in 3 years) 16% 20% 24% 32% Approach 1 Approach 2 Approach 3 1) Increase utilization to 90% of the existing lanes: 2) Convert New Primary and Inbound lanes: 3) Convert More Customer Lanes: Increase Capacity Reefer for PFF Better control and planning Implement Q1 24 Inbound Lanes 22 Primary Lanes Implement Q2 79 Customer Lanes Service level reliability critical Partnership with Customers
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