Satisfying the Needs of the Port s Clients

Transcription

1 Satisfying the Needs of the Port s Clients Marine Terminal Management Training Program Long Beach- January 27, 2005 By John Isbell, Director Cororate Delivery Logistics

2 Nike Stats FY 2004 Annual Numbers Global Revenue Net Earnings Global TEU Volume USA TEU Volume $12.3 B $946 M 86,000 TEUs 22,000 TEUs

3 Nike Production Sourcing* Footwear Factories Indonesia 23% Thailand 9% Italy 5% Vietnam 19% Taiw an 5% China 30% Korea 9% Aarel Factories USA 25% N. Asia 33% Equiment Factories Americas 4% Euroe 4% USA 19% Americas 12% Euroe 6% India Sub-Continent 8% S. Asia 16% India Sub-Continent 2% S. Asia 18% * Aroximate numbers N. Asia 53% All Contract Factories

4 Nike s Logistics Service Providers

5 Nike s Delivery Profile to USA Footwear distribution facilities in Wilsonville, OR and Memhis, TN Aarel distribution facility in Memhis, TN Over 30 direct delivery locations to major retailers distribution facilities Major IPI (railroad) shier

6 Nike s USA Port Usage (November 2004) SHN W OR CA NV ID UT AZ NM CO WY MT ND SD NE TX OK KS MN WI MI NY ME NH VT MA CT NJ PA OH VA VW IL IN IA MO KY TN AL MS AR FL GA SC NC LA MD DC DE SHO RUS Nike DCs LER FFW VAR MOD TSA MGS OSH DUN TSA AFT FTA/FSF/JFF KOH SHP SHP KOH KOH KOH BOB SHP KOH FTL EAS HIB DCS FHL/FNS MEL MRV GDY GAR GAR GAR FTA BFV FSF SRC Nike DC FFW Savannah Charleston LA / Long Beach Seattle / Tacoma Oakland/ San Francisco AFT JCP Houston New York/NJ Jacksonville Norfolk New Orleans FM KOH MOD GOD OLY JCP BEA ACD FTL 9% 5% 47% 39%

7 Nike s Vision for Suly Chain Excellence From Line Plan To Sell Through Demand Resonsive React to market timelines, not Nike timelines Multile Paths to Profitability Planned roduct launches to auto relenishment Close to Market Reduce order cycle time The Perfect Order 100% on-time shiment 100% on-time delivery 100% order fill rate by volume and order 100% order accuracy And Back Again Customer Focus Objective customer satisfaction erformance that shows you are easy to do business with

8 Keys to a Successful Inbound Delivery Process Achieving agreed to delivery times Visibility to service failures or delays Efficient and secure cargo handoffs Partners who deliver what they romise and holding them accountable Business verses government solutions

9 Role of Terminals in Suly Chain Process Until 2002, terminals were mostly invisible to the shier, esecially intermodal shiers 10-day labor lockout In 2004, terminals were the eicenter of the congestion issue Manower shortage Technology and labor relations Environmental issues On-dock train ower and rail car shortages In 2005, terminals may continue to be the eicenter Labor issues Pier Pass In 2008, successful contract with ILWU

10 Nike s Resonse to 2004 Congestion Issues Diverted more cargo to Pacific Northwest Increased use of team drivers to move containers to interior destinations Increased use of airfreight for key launch roducts Increased communication with our carriers to monitor deliveries Working with Waterfront Coalition in 2005 to develo a national infrastructure assessment Develoing delivery strategy for 2005 because congestion roblems are not resolved

11 How Terminals Can Hel Shiers Talk with your stakeholders be reared for the volume in both magnitude and flow Talk to shiers Make them art of the solution Publish your throughut volumes tell the story Change business ractices to imrove roduct flow off the shi, across the dock, and out the gates Communicate rovide an accurate assessment of the situation In LB / LA successful imlementation and execution of Pier Pass

12 Shiers Concerns about Pier Pass Poor communication to shier community Timeline seems too short On-boarding new system Establishing EDI links with shiers Testing No ilot rogram Contingency lanning do you have one?

13 Even Lance needs a team to be successful