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Sony DADC UK Fire Losses Top $49 Million

Sony DADC announced that it is working with Cert Octavian and Cinram to temporarily accommodate its supply chain operations in the wake of the fire that destroyed its UK Distribution Centre.

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11 August 2011 Sony DADC Marshals Forces After UK Fire

9 August 2011 Fire Damages Sony DADC UK Distribution Centre

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Unedited press release follows:

Sony DADC announces interim supply chain solution after Enfield distribution centre fire

London, UK, August 24, 2011 – Following the fire at Sony DADC’s distribution centre in Enfield, UK which occurred on the night of August 8, 2011 during the riots and resulted in the loss of the building, Sony DADC today announces collaboration agreements with Cert Octavian and Cinram to accommodate Sony DADC’s supply chain operations at their warehousing locations in the Greater London area. All of Sony DADC’s permanent staff employed in Enfield will remain with the company and support from one of these two interim locations.

“Within an hour after the incident at Enfield, Sony DADC’s Disaster Recovery Plan was in place and enabled a crisis team to start action. As quickly as August 9, 2011 we started to re-manufacture destroyed product and expanded Direct-to-Retail shipments from our Southwater production facility, which was not affected by the riots” explains Darren Houghton, Managing Director UK Distribution at Sony DADC. “Our supply chain IT solution proved to be robust and a strong backbone. By utilizing a multi-site approach, it guaranteed that not a single order or EDI (= Electronic Data Interchange) was lost, and all IT systems and services were up and running and not affected by the fires. In the days following the incident, our crisis team investigated alternative warehousing solutions and we have, after careful consideration from a risk mitigation and employee commuting point of view, opted for two different locations,” he adds.

The two interim locations are operated by Cert Octavian and Cinram. 80% of the Enfield volume will now be managed out of Hoddesdon, Hertfordshire, where Cert Octavian has offered Sony DADC use of storage and distribution facilities at their main hub, just 10 miles from Sony DADC’s Enfield distribution centre. The Hoddesdon operation is manned by Sony DADC employees and was fully operational on Monday 22nd August.

The Cinram facility is located in Aylesbury, Buckinghamshire, approximately 40 miles from the Enfield location. While Cinram will temporarily operate Pick, Pack & Ship, Returns Management and Value-Added Services for Sony Pictures Home Entertainment, making up the other 20% of Enfield volume, the major studio’s points of contact will remain the same − Order Desk and Cash Collection services will continue to be managed by Sony DADC staff.

“The level of support we have received from our customers, Sony affiliate companies, local distribution centres and other companies from within the industry has been remarkable. Without it, such a fast reaction to market demands would not have been achieved” comments Darren Houghton. “Our staff members have been incredibly supportive, often working extended hours to make a fast contingency solution happen as quickly and smoothly as possible” he continues. All permanent staff employed at Enfield will remain with the company, and Sony DADC will also continue to work with the same temporary staff agencies to fulfil additional staff requirements as it did in Enfield.

The Enfield distribution centre located on 6 Solar Way, Enfield, EN3 7XY is one of the five logistics sites making up Sony DADC’s integrated pan-European supply chain network. The Enfield site consisted of three floors totaling 24,000m2 of storage area and distributed prerecorded CD, DVD and Blu-ray Disc products to both UK and international destinations. The site was destroyed by a fire which began on the night of August 8. Police investigations into the cause of the fire and the course of events are in progress. Initial estimates of the affected parties’ property destroyed by the fire are far in excess of £30m.

About Sony DADC
Sony DADC is a leading disc and digital service provider for the entertainment, education, and information industries, offering world-class digital and physical supply chain solutions, software services, and optical media replication services. The company’s network consists of service offices, optical media production, distribution and digital facilities in 19 countries worldwide.