Not simply dispatching goods<\/p>\n
Burhanuddin Abe, Contributor, Jakarta<\/p>\n
The domestic courier and logistics industry has shown rapid
\ngrowth during the past several years, as evident in the
\nmushrooming of new express companies and the increase in the
\npresence of foreign players in the sector.<\/p>\n
In a world now marked by rapid technological progress and an
\nincreasingly more intense global competition, courier and
\nlogistics services have assumed an increasingly more important
\nrole in supporting, pushing and even driving the country's
\nbusiness activities.<\/p>\n
Compared with other businesses in the service sectors, courier
\nbusinesses have shown great expansion. According to the
\nAssociation of Indonesian Express Companies (Asperindo), there
\nare at least 634 courier companies at present, 89 of which are
\noperating in Jakarta.<\/p>\n
In addition, there are more than 20 foreign companies
\nproviding express and logistics services in partnership with
\nlocal firms.<\/p>\n
In fact, the number of express companies in Indonesia could be
\ngreater as many companies such as moving firms also provide
\nexpress and logistics services.<\/p>\n
The competition in the industry is certainly becoming keener
\nbecause each company is trying to improve its services in order
\nto meet customers' expectations and to catch up with the more
\nsophisticated distribution technology.<\/p>\n
PT CV Titipan Kilat (Tiki), a local express company that has
\nbeen in existence for over three decades, is no exception. With
\nservice centers in almost all of the country's major cities,
\nTiki's main business mission is always to give the best to its
\ncustomers.<\/p>\n
As part of the mission, Tiki recently launched several new
\nservices to ensure on-time delivery. Among the services are Over-
\nNight Service (dispatched today and arriving the next day),
\nExpress Service (consignments will arrive in one to two days),
\nMoney Remittance (with a network covering nearly all major cities
\nin Indonesia), International Service (dispatching goods
\noverseas), and a Cargo Service (dispatching cargo goods to
\ndomestic and overseas destinations overland or by sea).<\/p>\n
\"Although many international major express and logistics
\ncompanies provide similar services, we still have much room to
\ngrow. They are not our competitors because we have different
\nmarket segments,\" said one of the company's managers.<\/p>\n
Tiki, despite its recent penetration of the international
\nmarket, still concentrates on the growing domestic market.<\/p>\n
In the local market, the competition is also growing as major
\ninternational courier giants such DHL, UPS, TNT and FedEx have
\nbegun to tap the country's inter-island express delivery market,
\nin addition to their growing international express and logistics
\nservices.<\/p>\n
DHL Express, which operates in Indonesia in partnership with
\nPT Birotika Semesta, is among the biggest players in the country,
\ncontrolling nearly half of Indonesia's international air express
\nmarket.<\/p>\n
DHL's Indonesian business activities are supported by 88
\noutlets, more than 900 employees and 200 vehicles all supplied
\nwith radio communications gadgets. At the international level,
\nthe DHL network, fully owned by Germany's Deutsche Post World
\nNet, covers over 220 countries and regions, with about 170,000
\nemployees.<\/p>\n
Alan Cassels, senior technical advisor of PT Birotika Semesta,
\nsaid that DHL was always committed to fulfilling the needs of its
\ncustomers in the Asia-Pacific region.<\/p>\n
The company has been improving the quality of its services and
\nproducts, for example, increasing the frequency of flights of DHL
\ncargo planes between Jakarta and Singapore from four times to six
\ntimes a week, Monday through Saturday. This routes uses special
\nBoeing 727-200 freighter planes with a transport capacity of 23
\ntons.<\/p>\n
\"We are doing this because trade in Asia-Pacific countries has
\nbeen progressing rapidly,\" Cassels said.<\/p>\n
DHL has grown into an integrated logistics solution provider
\ncapable of handling everything from the sending of documents to
\nthe transportation of containers.<\/p>\n
The expansion of its business in Indonesia is part of its
\naggressive expansion plan in Asia and the Pacific. As part of the
\nplan, DHL plans to open a new facility at Central Japan
\nInternational Airport, in addition to the planned opening of 12
\nnew service centers in the Chubu area.<\/p>\n
\"The new facility with customs clearance and bonded
\nwarehousing will cover more than 5,000 square meters. The opening
\nof the facility and new service centers will further consolidate
\nDHL's position as Japan's top express delivery company,\" said
\nScott Price, chief executive of DHL Express Asia-Pacific.<\/p>\n
Amid the rapid growth in information technology, some people
\nbelieve the need for courier services has lessened because
\nletters and documents can be sent through the Internet.<\/p>\n
This belief, however, is not fully correct because there is
\nalways a need to send goods. It is in this context that companies
\nproviding international express courier services such as DHL,
\nFedEx, TNT and UPS still play an important role, particularly in
\nimport and export activities. No wonder then if logistics
\nservices have become their most important business.<\/p>\n
These companies' logistics centers usually offer a series of
\ncomprehensive logistics and warehousing services. By operating a
\nstrategic spare parts center in Jakarta, located at Soekarno-
\nHatta airport, for example, United Parcel Service (UPS) can
\nimmediately dispatch spare parts to its customers. These spare
\nparts may be delivered on the same day or at a particular time
\nalready agreed to by the customer.<\/p>\n
Like other similar companies, UPS does not just provide
\ncourier services. It also provides quite comprehensive
\nwarehousing and logistics solutions. In its effort to expand its
\nlogistics service to its intra-Asian customers and accommodate
\nthe increasing demand for cargo services, last April UPS built a
\ndistribution and logistics center at the Airport Logistics Park
\nof Singapore (ALPS).<\/p>\n
According to the company, the facility will start operation in
\nearly 2006 and will be one of the largest UPS operational centers
\nin Asia.<\/p>\n
Obviously, UPS has made various efforts to stay ahead of the
\ncompetition. Even its logo, which had already been used for four
\ndecades, was changed in 2003. In the first quarter of 2005, UPS
\nincreased its net profit by 6 percent, from US$759 million in
\n2004 to $759 million. Its consolidated earnings in the first
\nquarter of this year rose 10.8 percent to $9.89 billion.<\/p>\n
This increase in earnings is the result of its recent
\nacquisition of Menlo Worldwide Forwarding. In addition, the
\ncompany's income from international packages rose 13 percent
\nwhile revenue from is US packages went up 2.8 percent. The
\ncompany's operational profit was $1.39 billion, or a rise of 13.8
\npercent over the $1.22 in the same period last year.<\/p>",
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