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.