DC Velocity - October 2017

well as direct-to-store shipments.

Technicolor was able to leverage its expertise in time-sensitive upstream capabilities in manufacturing and distribution so that studios could rapidly fulfill orders to retail. We’ve demonstrated our ability to help studios reduce infrastructure cost and cost of goods.

QDid Technicolor’s background as a distributor provide a tailwind?

ADefinitely. We have a track record as a supply chain conduit that ensures new releases or titles can be delivered to the right place at the right time to more than 9,000 retail locations simultaneously for a product launch. Precision in our business is critical. Getting product to a destination too soon creates logistical problems for store-level execution, and getting it there late is obviously a non-starter.

Our experience has allowed us to build solid relationships. This is important because there are many intricacies in understanding which stores require which capabilities, which distribution centers have windows for receiving, and how the product will arrive. Should it get there on a pallet or should it arrive in cartons in a floor-load environment to then be conveyed through the DC?

These intricacies and complexities need to be taken into consideration when providing logistics services to retail. Both studio shippers and retailers are customers. For Technicolor, it is important to have a clear understanding of vendor routing guides for inbound freight delivery. This insight laid the foundation for our 3PL strategy.

QMost companies that are not already logistics pecialists don’t establish 3PL operations. Were there factors, such as the shift to streaming and satellite transmissions from hard discs that might have impacted your core business, that influenced your decision to go all in on 3PL services?

AWith the home entertainment industry’s shift to digital distribution via on-demand and streaming,
our migration to new customers became an equally
important initiative. Over the last five years, we’ve
explored different ways to build our 3PL services
for other verticals and markets. We’ve grown the
non-studio business 20 to 30 percent year over year
over the past five years. Most of
the growth is coming from verti-
cals such as electronics, consum-
er products, and manufacturing
of industrial supplies such as raw
materials and dry goods, as well as
from direct-to-consumer services.
We now provide full-service supply
chain coordination for high-profile
time-sensitive new product launch-
es in retail that require very precise
distribution and store deliveries.
We are no longer just about trans-
porting media content.
Additionally, we are entering into
market verticals such as heating/
air conditioning, postal distribu-
tion, and automotive with diverse
customer segmentation. As our cus-
tomer base expands, so has our people, process, and
technology infrastructure.

QYour deep knowledge of the film and entertain- ment industry helped you design effective logistics solutions for companies in your field. Yet you decided to go beyond your core vertical. What prompted you to expand, and what challenges did you face in doing so? AOne of the biggest hurdles we faced revolved around preconceived notions attached to the Technicolor brand. When you say “Technicolor,” people have not traditionally thought of logistics.

We are well known for creating and delivering content by offering post production, visual effects, sound effects, etc., for movies, episodic TV, and games. The Technicolor brand resonated with our studio/games customers, resulting in an end-to-end supply chain solution, including final-mile delivery.