World Mail & Express Conference Series
World Mail Review May 2008
Read MoreYear: 2008
ParcelXchange – meeting the need for flexibility
Paul Carvell, CEO, Business Direct
World Mail Review May 2008
DHL banks on new solutions to draw more SME clients in Malaysia
DHL Malaysia expects bigger contribution from the growing small and medium enterprise (SME) segment with its SME Logistic Solutions initiative.
The initiative, which combines the services of DHL Express, DHL Global Forwarding and DHL Exel Supply Chain, would drive DHL’s plan to support local SMEs venturing abroad, said DHL Express (M) Sdn Bhd country manager for Malaysia and Brunei, Sam Leong.
He said DHL SME Logistic Solutions, which positioned DHL as local SMEs’ trade facilitator of choice, had received good response since its launch in February.
DHL launched yesterday the second phase of the initiative whereby a Malaysian SME success story and the personalities who have ventured overseas are highlighted quarterly in workshops featuring a series called SME Success.
The workshops, including roadshows, would be held in SME “hotspots” like Seri Kembangan and Balakong in the Klang Valley, and Penang and Johor, Leong said after the launch yesterday.
Read MoreUPS Expedited introduced in seven countries across the Middle East
UPS announced the launch of UPS Expedited – a service specifically designed for customers with less urgent shipments to major international destinations, irrespective of size or volume.
UPS Expedited is the perfect balance between economy and reliability, and is a scheduled, day definite delivery service aimed at simplifying global trade for companies conducting business internationally.
Faster than traditional airfreight, UPS Expedited ensures door-to-door delivery in two to five days.
Exporting to more than 70 countries and territories worldwide, the service is available for one-time customers as well as account holders.
Other shipping services that UPS offers to the region are; UPS Express and UPS Express SaverSM, the ideal choice for urgent shipments.
UPS Express is a faster shipping service with guaranteed delivery by midday the next business day, throughout the world, while UPS Express Saver has guaranteed delivery by the end of your next business day.
With the addition of UPS Expedited, customers now have a range of tailored product offerings to choose from depending on their individual needs and service level requirements.
During 2007, the company delivered a record 3.97 billion packages; an average of 15.8 million per day.
UPS Expedited service is now available in the United Arab Emirates, Saudi Arabia, Bahrain, Egypt, Kuwait, Oman, and Qatar.
Read MoreFedEx and UPS eye U.S. slowdown
Package shipping giants FedEx Corp and United Parcel Service Inc are walking a narrow path between expanding their businesses overseas and scaling back in the United States, where the economy has slumped.
But industry analysts say the two rivals should be able to weather a short-term slowdown without hefty drops in profits, with only a prolonged U.S. downturn presenting a serious threat.
Recessions push companies and individuals to rein in expenses, which includes package shipping. But revenues are not the only wild card for UPS or FedEx profits. The record surge in fuel prices for trucks and airplanes is another.
Like many U.S. transport companies, UPS and FedEx have been routinely passing on higher fuel costs to customers. But in a recession, such surcharges are just one more reason for customers to cut shipments.
Rising fuel costs also present big challenges to the shippers just in managing cash flows and hedging.
While Graf says FedEx has leeway in allocating its capital expenditures, growing markets like China remain a priority.
FedEx’s total capex spending should be about USD 3 billion for the fiscal year beginning on June 1, he said.
As part of its expansion plans, FedEx will open a new air hub in Guangzhou, China, in 2009.
At UPS, overseas spending that includes the booming China market will also remain core to its strategy in 2008 and 2009.
UPS’s new airport hub in Shanghai will open this year.
In their latest quarters, net profit declined 12 percent at UPS and fell 7 percent at FedEx. Both cited the sluggish state of the U.S. economy and high fuel costs.
Both companies still derive about three-quarters of their business from the United States, said Morningstar analyst Keith Schoonmaker.
The good news, highlighted by both, was growth in international package shipments, including a boost from rising U.S. exports on the back of the weak U.S. dollar.
Read MoreTNT launches Australia’s first hybrid truck fleet
TNT Express Australia has become the first business in Australia to start operating a fleet of diesel-electric hybrid trucks as replacements for conventionally powered vehicles.
TNT has put 10 Hino Hybrid trucks into service as part of its commitment to achieving better environmental outcomes across all areas of its business – particularly the reduction of CO2 emissions.
Roger Corcoran, TNT Express Australia Managing, says the decision to adopt hybrid trucks is part of the company’s global commitment to reduce its total CO2 emissions.
Speaking at the official launch of the hybrid truck fleet in Sydney, Corcoran says the new vehicles will reduce TNT’s greenhouse gas emissions by an average of 1,600 kilograms of CO2 a year per vehicle.
He says the Hino Hybrid will emit 14 percent less carbon dioxide than a diesel-powered truck of equivalent size.
“In addition, the hybrid vehicle reduces emissions of nitrous oxides by almost half and harmful particulate matter by 98.9 per cent,” Corcoran says.
The introduction of hybrid vehicles is part of TNT’s commitment to reducing greenhouse emissions, according to Corcoran.
Under its code orange commitments, TNT has mandated across its business to buy operational vehicles with the highest environmental standards.
Read MoreA new alternative for postal counter solutions – Accenture retail counter solution for posts
William A. Morris, Postal Industry Asset Director, Accenture
World Mail Review May 2008
New RedPrairie Warehouse Management system increases staff productivity by 50 pct at Belgian postal service
De Post – La Poste, the Belgian postal service, has implemented a new Warehouse Management system from RedPrairie, a leading consumer driven optimisation company. The system has automated and optimised De Post’s central warehouse and increased the productivity of warehouse staff by 50 pct since its implementation in June 2007. There is complete visibility into inventory levels, paperwork has been virtually eliminated, and orders received before noon are dispatched the same day.
The central warehouse of De Post – La Poste stores all supplies for post offices across Belgium. It receives an average of 2,000 orders a day. Stocks include 900 different items of apparel, more than 1,000 types of products sold at postal windows (stamps, parcel packages, etc.), and over 2,000 consumables for internal use in post offices. Items are stored in three different buildings.
To address these issues, De Post – La Poste opted for RedPrairie’s Warehouse Management system. RedPrairie’s excellent track record and local presence in Belgium proved decisive factors in this choice. The system handles all inbound stocks, warehouse management, and picking order processes. With Warehouse Management, incoming goods are automatically allocated to their optimal position in the warehouse, based upon the frequency of their demand. High rotation items are placed so that they can be easily accessed by the picking staff. Even before goods arrive, their placement is known, so no time is wasted looking for an appropriate spot.
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