TKS Turns to Exel for Supply Chain Boost

Printing press manufacturer contracts for customs brokerage services, warehouse management and U.S. distribution

Printing press manufacturer contracts for customs brokerage services, warehouse management and U.S. distribution

Irving, TX — January 12, 2005 — Printing press manufacturer TKS (U.S.A.) Inc. has tapped supply chain services provider Exel for customs brokerage services, warehouse management and distribution throughout the United States.

Based in Irving, Texas, TKS is a global manufacturer and supplier of printing presses to newspapers and publishers. The company is an affiliate of Japan's Tokyo Kikai Seisakusho, Ltd.

In December TKS moved its central parts distribution center from Richardson, Texas, to an Exel-managed, 38,000 square-foot facility in Irving. The new distribution center is located next to the Dallas-Fort Worth Airport in a foreign trade zone (FTZ) where products receive merchandising processing fee (MPF) and duty reductions in addition to an ad-valorem tax exemption. As part of the new facility, TKS worked with Exel to open a 10,795 square-foot office.

Exel also will coordinate customs brokerage for air and ocean shipments originating from Tokyo. Upon arrival in the United States, Exel will manage transportation for airfreight parts shipments from Dallas to the central parts distribution center and seafreight finished goods shipments from the port-of-arrival to the end customer.

"In anticipation of increased demand forecast for the next three years in the U.S. market, we understand the critical impact of the supply chain in providing superior customer service," said Gregory K. Harabin, president and CEO of TKS (U.S.A.) Inc. "Relocation of our distribution center closer to the airport into an FTZ will produce savings from decreased MPFs, duties and inventory property taxes, reduce transportation costs and increase cycle times."

Additionally, Exel will manage transportation of TKS finished goods in March for the industry's annual trade show, NEXPO, which will take place in Dallas.

Todd Starbuck, vice president of technology development and freight management for the United States at Exel, said: "Technology companies are faced with the complex task of moving sensitive electronics and parts throughout the world. Exel's experience in this sector allows for development and implementation of a customized solution — for companies of all sizes — based on successful global practices already deployed."

For more information on the latest trends in the logistics space, see the article "The Analyst Corner: Fulfillment & Logistics" in the October/November 2004 issue of Supply & Demand Chain Executive.
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