ADVERTORIAL

ADVERTORIAL DHL -- 31 May

DHL's Fast Forward simplifies export and import

Every day, literally tens of thousands of shipments arrive in and leave from Indonesia, bound for factories, warehouses and offices all over the world.

This daily stream of shipments, from little boxes to 40-foot containers, is an essential part of trade and commerce.

Over the years, Indonesia has evolved into an exporter of value-added products. With this evolution has come an increased need for importing raw materials and semi-finished components to be used in value-added manufacturing. This sector, however, is becoming more competitive everyday and success increasingly means getting to the market first and at the lowest possible cost.

This is where an integrated international express and logistics solutions provider such as DHL can prove its weight in gold, by seamlessly managing the supply chain while at the same time leveraging tremendous economies of scale and expertise in international import/export regimes.

Consider a typical scenario of an Indonesian footwear manufacturer in Bandung who has to deal with many different parties for importing raw materials and exporting the finished product.

Since he is importing leather from China, he will have to instruct his bank to pay in U.S. currency for the leather and transportation costs before his Chinese counterpart can have the goods picked up and delivered, probably by a freight forwarding company.

Upon arrival in Indonesia, import documents must be processed so that his leather can be released. This must be coordinated with local transportation companies to collect and transport the leather to the warehouse or factory.

In all likelihood, he also needs to import other semi-finished components such as laces and accessories, which may come from Europe and are paid for in euros. Although his European supplier may agree to send the goods in advance, something goes wrong and the shipment is delayed because the freight forwarder in Europe failed to get air cargo space.

The involvement of so many parties, including suppliers, banks, freight forwarders, customs and transportation companies in several different countries, as well as different currencies, makes import and export complicated and risky. A break in the supply chain can lead to serious consequences.

Here, the role of a reliable international express and integrated logistics company such as DHL Express can be critical to streamline the import and export process.

Having operated in Indonesia since 1973, DHL is familiar with the logistics needs of Indonesian companies as well as multinational companies operating in Indonesia. This extensive knowledge enables DHL Express to create innovative logistics solutions across a wide range of industries.

"We have noticed a trend in which Indonesia's imports are evolving from finished products to be sold in Indonesia, to raw materials and semi-finished goods. These are then used to produce finished products for re-export as value-added goods. This is adding considerably to Indonesia's overall export performance," says Alan Cassels, senior technical adviser, PT Birotika Semesta/DHL Express.

This evolving trend has prompted DHL to broaden its Import Express and Fast Forward services in Indonesia and the Asia- Pacific region.

DHL's Import Express is a fast and proven service that allows customers to import goods easily. Since its launch in 1995, demand for Import Express has grown steadily, driven largely by increased trade flows and customers' need for greater control over the cost, speed and reliability of their imports.

Indonesian companies have found Import Express to be very helpful as it removes unnecessary headaches and provides one fixed cost. Instead of paying different parties with different currencies in a non-integrated transport chain, customers enjoy the simplicity and control of one point of contact, one fixed price and one invoice in a single currency for all their import requirements.

"Import Express underscores our commitment to simplifying and improving supply chain efficiencies for our customers. As the leader in destination billed express delivery, we are confident that DHL's extensive international network aligned to the Import Express product offering will continue to offer strong competitive advantages for our customers", said Scott Price, chief executive officer, DHL Express Asia Pacific.

The one point of contact and one fixed price for transportation on one invoice has really simplified the import process for Indonesian companies. In addition, DHL customers can import goods from any country and have the charges billed in one currency to their DHL account in Indonesia.

"For instance, if they import goods from five different countries, customers can simply use their DHL account in Indonesia and will not be charged in five different currencies. Thus, even though they use the DHL Import Service in other countries, they can still be billed in a single currency through their DHL account in Indonesia," said Edi Prayitno, DHL's national marketing manager in Indonesia.

DHL has also made it simple to export and import heavier shipments with the same degree of simplicity, cost transparency, security and speed. This is done through DHL's innovative Fast Forward service, which can handle shipments from 20 kilograms up to 100 kilograms at prices that are often more competitive than those quoted by freight forwarders.

"While freight forwarders usually provide their services port- to-port, DHL's Fast Forward provides door-to-door service at a price that already includes documentation, customs clearance and local delivery," said Prayitno.

With DHL's integrated logistics solutions such as Import Express and Fast Forward, importers and exporters do not have to worry about processing import or export documents, the loading or unloading of their goods, and transporting their goods to and from their offices or warehouses. DHL takes care of the formalities and delivers each shipment door-to-door.

Nearly all of DHL's shipments, including Fast Forward and Import Express, are carried on DHL's own dedicated flight operating between Jakarta and Singapore. This dedicated flight uses a Boeing 727 freighter with a 23 ton cargo capacity and flies five days a week. This means exporters and importers do not have to worry about unnecessary delays caused by the unavailability of cargo space on commercial airlines.

All shipments handled by DHL are taken care of professionally by DHL's crew at the Singapore hub, supported by the standardized services of DHL's extensive international network covering more than 220 countries and territories. This standardization of services is a key strength of DHL and helps to ensure safe and reliable door-to-door delivery.

"Any importer or exporter can enjoy these superior standardized services that make importing and exporting simple. All they have to do is contact our office, open an account and establish contract rates. Their overseas business partners can then contact DHL in their respective countries to have the goods picked up," said Prayitno.

Apart from superior services supported by an integrated IT system, DHL also works closely with local customs offices in each country. In Indonesia, for example, this close cooperation has resulted in DHL having the highest ratio of "cleared-on-arrival" shipments in the region.

"Customs here have an enlightened attitude. Despite their reputation for being unhelpful, we cooperate closely with them and work with them to streamline customs processes. We are pleased with the results," Cassels said.

Such close cooperation with Indonesian customs has enabled DHL to provide a highly satisfactory level of service to customers. To boost this further, and to support Indonesian industry, DHL is offering a special rate for its Fast Forward service from May to the middle of August 2005.