costco presentation 9-09-2013.ppt

Transportation OverviewSeptember 9, 2013

Costco Today

• 2nd Largest U.S. retailer*• 7th Largest retailer in the world• 24th Largest in Fortune 500• $44+ Billion market cap

*Based on worldwide sales

Costco Today

• Sales $100B (LTM) • 88M+ Sq. Ft. (143K / whse.)• 173K employees worldwide• >2M transactions / day

Warehouse Locations

• 632 Worldwide–9 Countries

• 448 in U.S.

• 29 in WA state

U.S. Annual Shipment Volumes• Inbound Truckloads 1,075,000– 20% shipped freight collect, 80%

shipped prepaid by vendors• Outbound Truckloads 450,000• Import Containers (FEU’s) 49,000• Export Containers (FEU’s) 24,000• LTL Shipments 487,000• Small Parcel 9,400,000

U.S. Distribution Network(Outbound)

• 11 cross-dock facilities• 450,000 outbound loads shipped annually• All loads received and shipped same day– 70% received at selling location same evening

• Utilize heavy haul equipment when possible–WA, OR, UT, ID, MT, CO, FL

• Private fleet utilized at 6 distribution centers

Washington State Shipments • Inbound Truckload– Over the Road 16,000• 30% shipped to/from California (I-5)

– Intermodal 6,000

– Import Containers 6,000

– Export Containers 2,000

Outbound from Sumner, WA• Truckload– 53,000 truckloads shipped

– 48,000 loads shipped OTR to WA, ID & OR• 22,000 loads shipped via Costco Fleet

– 5,000 ocean loads shipped to AK

Locations serviced by Sumner, WA

Federal Challenges• 80,000lb. GVW Limitation• Limited access to use LCV’s• Hours of Service• CSA

Washington State Challenges• Ports– Infrastructure– Road conditions– Port access (Seattle)– Construction (Seattle)– Lack of PM hours of operation– Labor

Washington State Challenges• Highway infrastructure– Traffic congestion– Emergency conditions• Flooding, Pass closures

– Tolls– Bridge conditions– SR-167

Questions?