Author: Archive

UPS has moved way beyond boxes

Posted by | Aug 22, 2007 | |

UPS ranks among the top freight haulers at Miami International Airport, the busiest international cargo airport in the country.

The company’s sprawling warehouse in Miami also stores goods from China to be shipped out as needed to Central America and beyond.

Over the past decade, UPS has been on a buying binge to expand “end-to-end” services to clients in Latin America.

It bought Miami-based carrier Challenge Air Cargo, acquiring key flight routes to the region. It bought a customs brokerage to help ease the flow of goods across borders. Plus, it bought an information technology parts and service business that sends technicians to fix computers and critical equipment at banks and other businesses in Latin America, drawing on parts that UPS ships and stores.

UPS now employs more than 5,000 people in its Latin American regional operations, including hundreds in Miami.

One fast-growing business segment is running warehouses and distribution for clients, using its high-tech systems.

Services now run the gamut from dispatching some 400 field engineers to fixing computers to financing its customers.

Through UPS Capital, the company helps clients with billing and collections. It even offers loans for companies to expand and trade more through UPS.

Analysts say UPS distinguishes itself from fellow delivery giants FedEx and DHL by its attention to detail and well-engineered processes: Driver manuals provide routes with fewer left-hand turns to save time at intersections. It is the only one to offer financing. And it is by far the most profitable, said analyst Jindel.

For the future, opportunities still abound. UPS aims to expand business within countries overseas, such as trucking between Chinese cities.

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Logistics providers increase focus on Mexico

Posted by | Aug 22, 2007 | |

Logistics providers are expanding their services in Mexico, possibly anticipating a renewed interest in sourcing products from Mexico. Or it might just be that the existing process for getting products across the border from Mexico to the U.S. is so difficult, shippers need more 3PL-type services in the regions.

At the same time, some supply chain experts are hinting that in the wake of the China sourcing scares and increasing logistics costs, Mexican suppliers may be seeing more business in the near future.

In either case, logistics providers are making clear efforts to step up their offerings around the U.S.-Mexico border. In July DHL introduced a new cross-border service based out of Harlingen, Texas, capable of handling triple the volume of its previous offering as well as heavier palletized freight and non-conveyable material to meet the growing logistics needs in the Rio Grande Valley and Northern Mexico regions.

Con-way Freight in mid-July acquired truckload carrier CFI, saying “combining CFI’s network, experience and expertise with Con-way Freight’s Mexico network and Menlo’s in-country and border-based logistics operations significantly improves the combined company’s presence and capabilities in Mexico.”

On Monday, Averitt Express opened a new supply chain solutions facility in Pharr/McAllen, Texas only four miles from the U.S./Mexico border. Because the new facility is so close to the border, Averitt can begin processing their customers’ freight and transloading goods for nationwide distribution faster than ever before.

Most recently, FedEx has expanded its FedEx Transborder Distribution service for cross-border trade between Mexico and the U.S. by opening new facilities in Ciudad Juarez, Mexico and El Paso, Texas to help facilitate the flow of goods.

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FedEx Ground Continues Its Contractor Battle

Posted by | Aug 22, 2007 | |

FedEx has lost another round in court in the latest chapter of a long-running dispute that is being closely watched for its potential influence on how companies outsource jobs to independent contractors.

FedEx Ground, a division of FedEx Corp., lost an appeal in California in August over whether a group of former route drivers whom the company considered independent contractors should actually have been treated as employees. FedEx Ground saves millions of dollars in costs, including payroll taxes and employee expenses, by categorizing some 15,000 drivers around the country as independent contractors.

But a three-judge California Court of Appeal panel held last month that the drivers who sued, despite owning their own trucks, were controlled by the company in much the same way as employees would be, and as a result they should have been compensated like employees.

Although the decision applies to just 200 drivers who worked for FedEx Ground in California, attorney Lynn Faris, who represented the drivers, said the decision sends a strong message to corporate America. FedEx can still appeal to the California Supreme Court, but Faris said the fact that a lower court and an appeals court have now ruled against FedEx should be a warning to other companies using or contemplating similar independent contractor arrangements.

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TNT share interest

Posted by | Aug 22, 2007 | |

Shares in Dutch mail company TNT rose 3.7 percent to 31.11 euros on Wednesday on renewed talk that the group may be a bid target, traders said.

They named TNT’s U.S. rivals UPS or Fedex as possible bidders.

A TNT spokesman declined to comment, saying the company never commented on market speculation.

An Amsterdam-based trader said: “There is talk of UPS or Fedex interest in TNT. It is an old rumor but UPS and Fedex both seem to be looking at Europe, which would make TNT an obvious candidate, especially as the shares have come off recently.”

“I wouldn’t be surprised if one of them buys it eventually,” the trader said.

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Swedish Posten expanding in Norway

Posted by | Aug 22, 2007 | |

Through its subsidiary, Posten Logistik, Swedish Posten is expanding its operations in Norway. Approx. 700 distribution points where Norwegian consumers can collect packages which they have ordered are being established under the MyPack brand.

Through its new distribution network, Posten Logistik will provide companies with a powerful new alternative on the Norwegian market.

Posten’s target group is primarily larger distance sellers who require a strong partner for the entire Nordic market. The Norwegian consumers order goods from companies such as Ellos and Klingel. These goods are sent by Posten to Norway where the packages delivered to a distribution point near the customer.

In Sweden, Ellos sends approx. 3.5 million packages each year to its customers and is thus the country’s largest distance selling company. Ellos’ customer circle in Norway is large and constantly growing.

Posten has an agreement with ICA Norge which means that approx. 400 distribution points are being established in ICA’s and Rimi’s shops. Some 300 additional distribution points are also being established. Swedish Posten will thereby cover 92 pct of Norway. The total of some 700 distribution points being established by Posten will be visible under the MyPack brand.

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FedEx Expands Cross-Border Solutions to Facilitate Trade along Mexico-U.S. Border

Posted by | Aug 22, 2007 | |

FedEx Corporation announced today the expansion of the FedEx Transborder Distribution service for cross-border trade between Mexico and the U.S.

The enhanced solution provides importers and exporters with a portfolio of FedEx services designed to simplify cross-border trade and help their businesses flourish.

This expansion includes the recent opening of two border facilities ” one in Ciudad Juarez, Mexico, the other in El Paso, Texas ” to help facilitate the flow of goods.

With this expanded cross-border solution, FedEx looks to simplify the supply chain process by managing the transportation, brokerage and distribution of shipments that cross the Mexico-U.S. border on a regular basis, said Ed Clark, chief executive officer and president of FedEx Trade Networks. The vision is to create a single point of contact to facilitate the efficiency of the entire process.

This expanded solution will also help FedEx work hand-in-hand with maquilas and companies utilizing maquilas (or other duty-deferral programs) as part of their supply chain, so they can benefit from a simplified shipping and customs clearance process managed entirely by FedEx.

The FedEx companies have significant expertise with maquila operations and the procedures to remain in compliance with Customs regulations in the U.S. and Mexico.

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USPS, Mexican PS Work to Improve Cross-Border Services

Posted by | Aug 22, 2007 | |

The U.S. Postal Service has agreed to help the Servicio Postal Mexicano (SEPOMEX) improve its management structure and processes, and to re-engineer its operations. SEPOMEX, in return, has agreed to work with the USPS in improving cross-border services.

The two groups have also agreed to explore joint business opportunities, writes DM News.

SEPOMEX handles about 700 million letters a year, compared to the 200 billion handled by the USPS. About 90 percent of what SEPOMEX handles is bulk mail, an area upon which both the USPS and the Mexican postal system hope to improve.

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DHL Express extends DMS contract with HP

Posted by | Aug 22, 2007 | |

DHL Express Malaysia has signed a contract on Desktop Management Service (DMS) with Hewlett-Packard (M) Sdn Bhd (HP) for another three years, extending its previous five-year contract.

“The DMS provides for higher service levels that enable shorter and improved resolution times for all service tickets, which includes a higher key performance indicator (KPI) for first-call resolution,” said DHL Express national information services manager Patrick Khoo.

“One of the key successes we’ve seen over the years is that we’ve brought down the number of (service) tickets to about 40 pct of what it was in the previous year. That is a key improvement that shows that there is less downtime among the users,” said Khoo.
A continuous program, which included audits, reviews and technology implementation, would also be introduced to reduce service failures in the country, he added.

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