Tag: Asia

TNT expands facilities in Singapore for better customer service

TNT has launched its newly designed and expanded Singapore Country Depot and an enhanced Customer Contact Centre within its existing complex on Changi South Lane in Singapore to keep up with the growing demand for express and freight services in the region.

The EUR 7 million investment is part of TNT’s broader EUR 100 million investment in South East Asia to establish a leadership position in the region over the next five years. The investment is aimed at strengthening TNT’s network coverage, connectivity and infrastructure.

The expansion of the Singapore Country Depot and Customer Contact Centre follows the launch of TNT’s freight services for time-sensitive heavy shipments last month. Both facilities occupy an area four times the size of the previous premises.

The upgraded centres are located within TNT’s 16,723 sqm premises in Changi South Lane. The integrated facility was established in 2007 to meet increased business growth in Singapore, and houses TNT’s Life Sciences Express Hub.

TNT said it expects better synergy, communications and operational efficiencies between its facilities by situating both the depot and the contact centre within the same premises as its regional distribution centre operations. This will in turn translate into seamless supply chain management solutions and enhanced service levels for customers.

Additionally, the Customer Contact Centre handles the complete range of TNT’s services, from Express, time-sensitive air freight, to tailor-made solutions, offering customers a single point of contact. It also features dedicated customer service departments managing TNT’s customers in the healthcare, high-tech, and equipment and machinery sectors, respectively.

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Chinese courier companies struggle to deliver

With fuel costs continually on the rise, China’s private delivery companies are among the hardest-hit sectors reporting declining profit margins and witnessing increasing pressure from major international couriers as they increase efforts to make inroads into China’s domestic markets.

Pushed by the dismal outlook in the delivery industry – costs have been driven up by 16 percent since fuel prices were raised in late June – private couriers in China are struggling to swallow the losses before any price hike becomes possible.

FedEx Corp has readjusted its delivery rate scheme in China since June. The charge for overnight express delivery has been cut from 34 to 18 yuan per kg from Shanghai to Beijing, which is much lower than the 30 yuan offered by local players such as SF Express.

The price cut, which is unusual given foreign courier’s higher operational costs compared with domestic competitors, is indicative of FedEx’s determination to compete in China’s express delivery market, said An Jianghong, an analyst from Anbound Group, a consulting firm headquartered in Beijing.

Shanghai-based China Business News also reported last June that FedEx chief financial officer Alan B. Graf had said that FedEx’s launch of its mail express service in China would have a “negative impact” on the company’s 2008 fiscal revenue.

In another bid to try to tap into China’s delivery business, FedEx is to open its Asia-Pacific hub in Guangzhou in December this year. The company said in a public announcement earlier that the relocation of the hub from the Philippines to China is based on the estimates on the growing demands for air express in the region.

Other rivals are also keeping up. Following last year’s acquisition of Tiandi Hoau, a Heilongjiang-based private express company, TNT is now set to build an extensive road transportation network in China with the launch of its new Asia road network, which is a new service route that connects China and Southeast nations via road transportation.

This network is expected to be extended into China’s hinterland as the company continues its investment in Tiandi Hoau to upgrade its operational infrastructure and delivery capabilities, analysts say, which will help the foreign courier strengthen its networks within China and expand into second and third-tier cities within the country.

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Blue Dart expands in Eastern India

Blue Dart, the DHL Express Indian subsidiary, announced the opening of a new warehouse in Kolkata, the capital of the Indian State of West Bengal, and plans investments of EUR 30 million in infrastructure development, according to Indian newspaper Business Standard.

The new warehouse will increase storing and handling capacity of shipments coming to and from Kolkata and will serve as a hub for the shipments to and from Bangladesh, according to the Indian daily newspaper Business Standard. The new India-Bangladesh service route, launched in association with DHL, will ensure better service quality for customers in the Eastern region by providing the possibility to send or receive documents and packages of any size.

“Kolkata and the Eastern region are of strategic importance to us”, Amod Dasgupta, vice president East Region, Blue Dart Express, was cited. “Blue Dart has been witnessing over 100 pct growth in both inbound and outbound shipments handled. Kolkata and West Bengal is anticipated to remain strong growth areas for Blue Dart. The growing business sentiments will open up a plethora of business opportunities to explore.”

The eastern region overall has seen increased investments from the company. This year, Blue Dart plans to open 11 new facilities of the 120 planned across the country.

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Post Office travel services sees boom in pre-olympics yuan sales (UK)

During July 2008 the UK’s largest provider of foreign currency the Post Office has seen a 44 per cent increase in its sales of Chinese yuan compared to the same period last year.

Post Office head of travel services Helen Warburton said: “The huge demand for yuans at Post Office bureaux de change over the last few weeks shows that many people are planning to travel to China. We advise Olympic travellers to make sure they take a mix of travellers cheques, payment cards and currency.

“Although ATMs are widely available across Beijing and China, the acceptance of foreign debit and credit cards can be a bit hit and miss so travellers should make sure they take a sufficient supply of yuan to meet their initial day to day needs.”

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DHL wins Heidelberger Druckmaschinen contract

DHL has been awarded a three-year contract by Heidelberger Druckmaschinen to manage the warehousing and distribution of its newly established DHL-Heidelberg Hong Kong Logistic Centre (HLC).

Operating 24/7, the HLC serves as a spare parts centre for the Asia-Pacific region, and will reduce delivery time for Heidelberg customers by up to 50 pct.

Prior to the establishment of the multi-million dollar HLC, spare parts were sent to customers directly from Heidelberg’s spare parts centre in Germany.

DHL will manage the 15,000 sq.ft warehouse located in Tsuen Wan, which houses inventory in excess of USD 2 million.

With DHL’s extensive air express network in Asia-Pacific, it will enable the next-day delivery of spare parts to Heidelberg’s customers in major cities in the region, overcoming geographical spread, reducing lead times and optimising inventory levels.

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