TNT offers value-adding solutions

TNT offers value-adding solutions

JAKARTA (JP): TNT, the European market leader for express and
logistics is at the fore of the industry in Indonesia following
the prolonged economic crisis which hit the country.

It has accomplished this thanks to its business philosophy,
which is to provide customers with innovative cutting-edge and
easy to use services and systems which represent the best value
for the money.

TNT is confident the market in Indonesia is recovering. The
market does, however, fluctuate with the dramatic shifts in the
exchange rate of the rupiah, which creates some difficulty in
managing a business with high overseas costs.

TNT came to Indonesia 21 years ago, and now sees its business
at levels which are greater than the precrisis levels, which is
encouraging and demonstrates that the company's marketing
strategies are also working.

TNT operates two businesses in Indonesia. One is PT TNT
Logistik, a joint venture formed in 1995 between TNT of the
Netherlands and Tigaraksa Satria of Indonesia. The other is PT
Skypak International, the representative of the TNT International
Express brand, this company opened its doors in Indonesia in
1979.

"Indonesia currently represents over 12 percent of the total
Asian market, and is an important market because the long-term
potential is very good," said Skypak director Colin Moran.

"We are in our 21st year and while we continue to apply global
standards in our local market, we expect to be well positioned to
be the best service provider in our industry."

He said the growth of the logistics business over the past
five years was very encouraging.

TNT Indonesia now provided logistic services in 14
warehouse/distribution centers, employing 300 people. And the
express business has grown to 21 branches with over 400
employees, with its newest office in Cikande opening this week.

TNT Logistik provides dedicated warehouse management
throughout Indonesia.

"Our main customers in Indonesia are in the fast-moving
consumer goods industry, and the oil and industrial supplies
field. We focus on warehouse flow and redesign the supply chain
for customers in order to reduce stock and reduce total
distribution costs as a percentage of revenue," Moran said.

"We also apply procedures and systems which give customers
better transparency of stock levels and reduce pilferage and
damage. The express business focuses on time-definite delivery of
parcels and documents, both internationally and throughout
Indonesia.

"Expansion is our key focus and we are talking to a few
interested parties at the moment that will create good synergy
and create win-win situations. Our logistics business is also
analyzing the benefits of establishing a multiuser distribution
center," he said.

The competition in the express industry in Indonesia has
become extremely tight, with numerous small companies setting up
cheap courier services.

"The problem is that these companies have no real overseas
infrastructure or technology, and many customers have used them
with little success, which we think is causing some credibility
issues for the industry in general," Moran said.

In logistics, the competition is limited and as such so is the
expertise in the marketplace, he said.

"We are noticing that more companies are looking at their
supply chain and talking to TNT."

In Indonesia's express market, TNT focuses on a few key areas,
which are:

To be the "best service provider" -- to ensure that the
company is focused on achieving continual service improvements in
all areas. This also means increasing investment in the local
infrastructure to improve service.

One-stop shop -- providing import/export customs clearance and
overnight domestic services to customers, all on one account. The
more use of the company's services, obviously the better the
prices, so TNT is also providing value for money.

Time definite -- both International and Domestic Express
services offer 9 a.m., noon and next-day services with
unconditional money back guarantees. This means a lot to
customers who have urgent shipments, giving them peace of mind
through reliable service.

TNT International Express network consists of 969 hubs and
depots and 55 gateways, serviced by over 17,000 vehicles and 40
aircraft. Over the next four years, the company will add 14 new
aircraft to its fleet. Every weekday, its aircraft fly to 107
destinations. This extensive network is supplemented by strategic
alliances with major commercial airlines, covering 200 nations.

The company's business is built upon three pillars: People,
Innovation and Technology. These are supported by a range of
express distribution services which represent true value for
money.

In the last four years, TNT International has invested more
than US$240 million in systems, technology and manpower to build
a world-class infrastructure. The company will continue to invest
in this area to ensure better and faster response times and
information for customers.