Total Logistic Control (TLC)–Moving Up the 3PL Food Chain
Zeeland, Michigan USA
July 27, 2006
By
Evan Armstrong

Key Personnel:
Bob Koerner, President
Peter Westermann, Chief Operating Officer
Patrick Floyd, Sr. Executive Vice President
Duane Sizemore, Executive Vice President
Matt Luckas, Sr. Vice President Customer Development
Richard Brouwer, Vice President Information Services
Paul Lomas, Vice President Supply Chain Solutions
Carl Melville, Vice President Marketing
John Peters, Vice President Real Estate and Corporate Assets
Chuck Husby, Sr. Director Operations
Trevor Jackson, Operations Manager Dedicated Fleets
Jeff Stonick, Fleet Safety Manager

Overview
Founded in 1986, Total Logistic Control (TLC) has become a leading North American 3PL with solid domestic transportation management and warehousing skills and is best-of-bread provider of services to customers with refrigerated and frozen commodity handling needs.

The 2005 acquisition of TLC by retailing giant SuperValu has provided it with significant cross-selling and expansion opportunities. SuperValu and TLC have been working together to streamline SuperValu’s internal supply chain operations and reengineer processes. TLC had an approximate workforce of 2,400 in 2005 and operated just over eleven million square feet of warehouse space in the U.S. With the addition of affiliated enterprise resources (SuperValu companies), TLC has the ability to offer 3PL customers a network of 62 warehouses and transportation assets of 2,877 tractors and over 8,600 trailers. TLC’s blue-chip customer list includes: ConAgra, Dean Foods, Diageo (Guinness Beer), Johnson Controls, Kraft Foods, Meijer Stores, Rich’s, and Sara Lee.

TLC’s operations are support by solid information technology resources. Core supply chain management systems include Oracle TM (previously G-Log) for daily transportation planning and management and SSA Global/Provia’s warehouse management system. Both systems are fully integrated and have been deployed for multiple customers. TLC’s IT staff has solid experience in integrating these systems with multiple enterprise resource planning systems (ERP) such as SAP and Oracle.

Case Studies
TLC began working with Diageo/Guinness seven years ago and it is now one of TLC’s key accounts. Guinness imports 40 stock keeping units (SKU’s) from five countries. TLC provided Diageo with expertise needed to redesign its U.S. supply chain and implement a new supply chain management strategy. TLC’s services started with a northeast pilot operation to validate estimated cost savings and anticipated service improvements. After a successful trial period, TLC was awarded all of the Guinness and Bass import business for the U.S. TLC now manages more than 60,000 warehousing and transportation transactions per year, providing port to distributor supply chain management services within the U.S. It also manages issues unique to alcohol beverage distribution such as: carrier licensing, individual product labels, container volume and state regulations.

Because of its relationship with Diageo, when sales of its Smirnoff Ice beverage took off, Diageo tapped TLC to develop a turnkey contract brewing and bottling operation. TLC identified an unused brewing facility in Lehigh Valley, Pennsylvania and converted it into a modern, functional brewery. This included a complete retrofit of the facility and hiring over 250 new associates. TLC began producing its first case of Smirnoff Ice in less than four months. In addition to high speed bottling lines, TLC implemented new production, ordering and supply chain management systems. In May of 2005, Diageo assumed control of the operation; the facility is now the flagship operation in Diageo’s North American beverage network.

TLC began managing transportation for Jarden Home Brands (previously Alltrista Consumer Products Company) in 1997. Jarden is best known for manufacturing Ball and Kerr canning jars, Diamond brand matches and toothpicks, and home crafts products. TLC developed a central transportation management center (TMC) in Zeeland Michigan to coordinate and optimize transportation management for multiple Jarden divisions. TMC load planners use Oracle TM to optimize carrier and mode selection and develop cost saving continuous truckload moves (end-to-end load matching). Domestic less than truckload, truckload, and intermodal shipments are optimized. Jarden realized transportation costs savings of 15% in the first year of working with TLC and has benefited from ongoing cost savings and service improvements since then.
CADMUS Communications is the world’s largest provider of content management and production services to scientific, technical and medical journal publishers in the world and is also one of the five largest publication printers in North America. When CADMUS needed a 3PL to run its Maryland Fulfillment Center, TLC was selected.

TLC manages fulfillment of over one million stock keeping units (SKUs) at the dedicated 200,000 square foot turnkey facility. TLC processes and fulfills domestic and international orders for CADMUS’s 100,000 different medical, scientific, and technical journals. Outbound orders range in size from small package to LTL shipments.

TLC re-engineered the facility layout, isle configuration and material flow. It also implemented new supply chain management systems and established standard operating practices. Though its efforts, TLC has been able to achieve near 100% accuracy in picking and on-time fulfillment. In 2005 the facility was recognized with the customer’s “Facility of the Year” Award for distinguished long term operational and financial performance.

Summary
In a very competitive marketplace TLC has grown into a leading domestic 3PL. With the support of SuperValu and a shared problem solving approach, we anticipate that TLC will continue its rapid growth and expand operations globally.

Sources: A&A Primary Research, http://www.ryder.com/