TNT posts high growth in hi-tech sector
TNT has defied the economic downturn in its hi-tech sector business that achieved a double digit growth in Asia in the year to date, reports Cargonews Asia. The article continues:
In Singapore alone, revenue grew by more than 50% while freight volume almost doubled, something the company attributed to its lean supply chain solutions that address the top most concern of hi-tech and electronic businesses – excess inventory.
“The pressure on hi-tech businesses to keep inventory levels low has led to a demand for a short end-to-end supply chain solution that is responsive and also economical,” said Onno Boots, regional managing director of TNT Asia.
“As a result, businesses are slowly turning away from sea transportation that is cheap but slow to faster transportation modes such as road or air transportation that are capable of delivering goods in smaller volumes.
“Our air and in particular, road networks which we have developed over the years, enable us to provide exactly that.”
Recent studies conducted with several hi-tech and electronic companies indicate that the current economic downturn has increased the volatility of demand and as such, many businesses are most concerned about keeping their inventory low to prevent product obsolescence.
In response, many businesses are leaning towards a ‘build-to-supply’ model rather than a ‘build-to-inventory’ model, which takes into account lower levels of inventory, but also shorter delivery times and reduced costs.
