Tag: USA

Competition heats up in the Asian small-parcel market

Posted by | Jan 17, 2008 | |

Supply chain professionals being tasked with establishing or managing small parcel networks in Asia report being pleasantly surprised by the coverage and competition from the major parcel carriers. That said, there are some major differences between managing a small parcel logistics networks in Seattle and Shanghai.

Tom Stanton, international supply chain analyst at consulting group AFMS in Portland, Ore. says the three major parcel carriers—UPS, FedEx and DHL—are all investing heavily in the Asian markets, particularly China. He says the three are competing for reputation and market share in Asia just as fiercely as they do in the U.S., but from perhaps different positions.

Stanton says DHL has been in Asia the longest and the company claims to have as much as 38 pct of the market and combined the big three hold about two-thirds of the market. All are investing and growing dramatically in Asia. UPS is building a new hub at Shanghai’s international airport. UPS reported more than 20 pct overall business growth in China in the third quarter of 2007, with intra-Asia trade representing the fastest growth.

FedEx aims to begin operations at a USD 150 million hub in the southern city of Guangzhou in December 2008.

Most recently, DHL announced in November it was spending USD 175 million to build its North Asia Hub in Shanghai at the Shanghai Pudong International Airport, due to open in the second half of 2010. The hub will be DHL’s sixth in Asia, and will be able to handle as many as 20,000 parcels and 20,000 documents an hour, the company said.

In a Bloomberg interview, Jerry Hsu, DHL’s president of Greater China, said DHL may form a domestic air-cargo venture with a local carrier. The company has held talks with a number of airlines and drawn up a shortlist based on their hubs and gateways, he added.

Beyond the three major small package players, TNT Logistics and APL Logistics may be the only other names recognizable to U.S.-based supply chain managers. The rest of the market is filled in by local and regional Asian firms covering short shipments between factories or businesses.

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USPS announces two new shipping initiatives (U.S.)

Posted by | Jan 17, 2008 | |

The U.S. Postal Service announced today that its Board of Governors approved two new initiatives to grow its shipping business and revenue. A new, larger Priority Mail Flat-Rate Box enables customers to ship 50 percent more than with the current box. It will be offered at a discount to overseas military addresses, a postal first for the armed forces. The agency also announced a new Sunday and holiday delivery price for Express Mail. Customers can begin using the new boxes March 3, the same day the premium takes effect.
The current flat-rate box, which gives customers a single, predetermined rate regardless of the weight or delivery zone, was introduced in November 2004. The new, larger box extends the agency’s successful flat-rate offerings, providing more choices for small businesses and consumers.
The new Priority Mail Large Flat-Rate Box (12″ x 12″ x 5½”) can be used for both domestic and international shipments. This extends the flat-rate price and ease-of-use benefits to international shippers. There is also a 5 percent online discount.
All Postal Service Priority and Express Mail packages and envelopes are environmentally friendly, exceeding the highest standards for recyclability.
The Governors also approved a USD 12.50 premium for Sunday and holiday Express Mail delivery. The premium, equal to competitor surcharges for Saturday delivery, reflects the unique delivery option the Postal Service provides on Sundays. As an alternative to Sunday, customers can choose Monday delivery at the standard Express Mail price.

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AT&T announces USD 20 million for nationwide software for USPS

Posted by | Jan 17, 2008 | |

AT&T Inc. announced that the AT&T Government Solutions business unit was awarded a task order worth up to USD 20 million to provide Software Engineering services for software verification and validation of United States Postal Service (USPS) automated mail-processing and sorting systems.
AT&T software engineering expert teams will test USPS systems nationwide that help process billions of mail pieces every year. AT&T will assist the USPS to drive continued implementation of standardized software development life-cycle processes and procedures across the USPS Engineering organization.
Under the terms of the contract, AT&T will use its Software Engineering services and IT expertise to provide software and documentation Independent Verification and Validation (IV&V), software-configuration management (SCM) and other required services to the USPS Engineering Software Process Management (SPM) group.
The SPM group supports the USPS and Engineering by focusing on continuously providing the necessary high-quality and reliable software required by USPS automated mail-processing and sorting systems.
AT&T’s Software Engineering services that it will execute for the USPS automated mail-processing and sorting systems recently received the Capability Maturity Model Integration (CMMI) Maturity Level 3 rating in all 21 process areas. The CMMI rating covered AT&T’s systems and software development, integrated process and product development, and supplier sourcing.
The task order is up to two years, with three one-year options. The task order was awarded under the Integrated Business System Solutions Ordering Agreement (IBSS OA) contract.

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DHL to pay Contractors USD 25M (US)

Posted by | Jan 16, 2008 | |

DHL will pay USD 25 million to settle a national class-action suit by some 1,400 contractors stemming from payment disputes dating back to 1994, according to company officials and one of the lawyers representing one of the contractors.

The contractors alleged that glitches in the DHL computer system – a legacy from Airborne Express, which DHL bought in 2003 — prevented certain types of shipments from being processed correctly, said R. Anthony Rupp III, a lawyer with the Buffalo firm of Rupp Baase who represented contractors involved in the case.

While linking data from shipments from across the country with confirmation information, the DHL system also mistakenly prevented any payment for those jobs, the lawsuit alleged.

DHL denies any such glitches in its computer system. “There are none,” said Josh Frank, DHL vice president of legal.

The company agreed to the settlement, Frank said, because such class action lawsuits can be distracting an expensive.

In an internal memo to DHL managers obtained by Traffic World, the company said it had settled “to avoid prolonged and expensive litigation” with a one-time payout that it hopes “as many contractors as possible” will pursue.

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ABB Robotics selected as pre-qualified integrator for USPS

Posted by | Jan 16, 2008 | |

ABB Robotics has been selected by the United States Postal Service (USPS) as a pre-qualified integrator for general material handling systems, expanding the company’s scope of supply beyond robotic containerization systems (RCS), which ABB has been providing to the USPS since 1999.

ABB has provided 167 robotic containerization systems to USPS facilities throughout the U.S. Through the RCS program, ABB has delivered other robot automation and control systems utilizing ABB controls and drives products. The success of this program led ABB to an extensive bidding and qualifying process for general material handling systems.

As a pre-qualified integrator, ABB, along with a select number of other suppliers, has been awarded with an ordering agreement extending for three years, placing ABB on the pre-qualified bid list for general mail handling automation.

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