Key partnership between London Thamesport, Hutchison Ports (UK) Limited, NYK Logistics and Samsung Electronics has created a positive long-term impact

The advantages of PortCentric solutions – Samsung’s white goods transformed from a loss to profit making division

Collaborative planning has created a more efficient supply-chain

As recently as January 2008, Samsung UK’s white goods business was a loss making division. Now, however, it is generating double-digit profits. Until mid 2008, Samsung’s UK white goods were imported through London Thamesportthen transported by NYK Logistics to a central warehouse at Marston Gate, Milton Keynes. Here, the goods were devanned and the stock was stored. Goods would then be reloaded for onward transport to retail distribution centres.

Today, this process has been simplified. When containers arrive at London Thamesport they remain there, goods are stored in the port-based warehousing until retailers’ requests are made. Goods are then dispatched directly to the distribution centre or customer warehousing. This process means that a whole transport movement, costly inland haulage, is eliminated.

In addition, deliveries are usually organised with two or three days notice, but orders can also be fulfilled overnight. The NYK Logistics team, who work in partnership with HPUK’s operational team, is always prepared to meet peaks in demand. Through this collaborative approach, and by eliminating the need for an inland warehouse, Samsung has halved the cost of moving goods to its UK customers.

The PortCentric solution also means that Samsung is able to defer VAT and excise duty payments until goods leave the Port.

Samsung’s volumes have increased more than four-fold compared to two years ago. NYK Logistics originally had 35,000 square feet of port warehousing for the Samsung business. Today, it occupies 150,000 square feet, and there are plans to further expand in the Port.

Collaborative planning by retailer, manufacturer and logistics partners, has delivered the reward of lower costs coupled with a more efficient supply-chain for white goods and the bonus of a lower environmental impact.

London Thamesport has major plans for a further PortCentric facility within the Port boundary and is working with Invest Thames Gateway to source likely clients.

Key Facts – London Thamesport:

• Is one of the UK’s busiest container ports and a member of the Hutchison Port Holdings Group, located only 10 miles from the M2 motorway and 35 miles from London.
• Has a total area of 87 hectares with two container berths served by eight high speed super-post-Panamax cranes.
• Has an automated container yard with 19 automated, rail mounted gantry cranes and a yard stacking capacity of 26,000 TEU with an annualised capacity of in excess of 800,000 TEU.

Thames Gateway – A central hub for ports and logistics:

• The region has some of the busiest ports in the UK, heading the UK chart for tonnage in 2008 with 68 million tonnes for cargo – 12.1% of all UK ports.
• The ports in the Thames Gateway can handle capacity and variety of over 70 specialist terminals designed to handle almost every type of cargo from aggregates to frozen products.
• London and the Greater South East are the biggest consumer markets in the UK, home to 21 million people and around 753,000 VAT registered businesses.