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TNT: Delivering `as promised'

Priya Rajsekar

IT IS all fine that business happens at the speed of thought in the virtual world. But sooner or later, it falls on the very real brick-and-mortar world to deliver those promises, literally. With the Internet facilitating increased cross-border tr ansactions and reducing the number of intermediaries in the distribution chain, the significance of an effective logistics system increases exponentially.

Worldwide, logistics solutions providers are riding the wave of e-commerce growth, specifically in the B2B segment, which is much larger in terms of volumes and growth. The e-commerce revolution, according to Mr. Jinendra Sancheti, Managing Director, TNT India Ltd, will boost the demand for efficient models of distribution that are offered by companies such as TNT. Presenting an outline of the operational and infrastructural capabilities of the group, worldwide, and its preparedness for the future, Mr. Sancheti says that he expects the group to post additional growth of its e-fulfillment business.

Founded in Australia by Ken Thomas in 1946, TNT (Thomas Nationwide Transport) has grown from an asset strength of one delivery truck to become one of the largest integrated distribution companies with 969 hubs and depots, more than 17,000 trucks and 38 a ircraft. Backed by a 1,00,000-strong team, the Netherlands-based TNT Post Group, which operates from over 200 countries, reportedly carries 134 million pieces a week. TNT, which operates a transatlantic air network, also has an extensive road and air net work in Europe and a Super Air Hub at Liege in Belgium.

According to Mr. Sancheti, as an established logistics provider, demand-chain management leverages TNT's proven logistics and distribution capabilities and its strong global infrastructure, to provide a single point of control for the entire e-transactio n: Order management, payment processing, warehousing, transportation and delivery and post-transaction management (returns, repairs, customer service).``By integrating these five activities and managing information flows among them, TNT will be able to p rovide highly customised, cost-effective, fast and reliable solutions for complex e-fulfillment requirements,'' Mr. Sancheti adds.

IT has always been a major thrust area in terms of infrastructure development, and according to Mr. Sancheti, TNT has one of the largest private-owned networks connecting all depots and countries worldwide on an online, real-time basis. This service is a lso offered to customers, a feature which is reportedly unique to the company.

Keeping track of thousands of consignments calls for a highly cost- and time-effective technology, says Mr. Sancheti. At TNT, the consignments are bar-coded and details of each and every shipment is scanned into the IT network. Each shipment is then scan ned at every stage in its physical movement cycle and data updated to enable a customer to get track-and-trace information at any given time. The consignments are typically auto sorted in TNT's Liege hub using automatic scanners, from where it finds its way to its destination flight. On reaching the destination, the consignment is again scanned and then on delivery, a proof of delivery is entered into the system.

The company also uses an ERP system which it claims, is ``a very important constituent'' of its operations. Mr. Sancheti says that as a service company TNT finds ERP very relevant in designing and deputing its networks and adapting to emerging trends.

``The company needs to be very flexible as well as agile in revenue allocation as our customers needs cannot be deferred. It is critical for us to be able to anticipate and deploy resources almost on a daily basis and provide a seamless service to the cu stomer. This is possible only with a first class global integrated IT network. As an international network business, the ERP has to be global as trends in our country impact the rest of the network,'' says Mr. Sancheti.

In the coming years, TNT also plans to consolidate its stronghold in niche segments through customised value-added solutions. E-tailing, for instance, is a key segment. ``A typical e-tailer in future may receive orders from any part of the world over the Net. At that stage he will need the services of a global player such as TNT who can assist him in order fulfillment,'' says Mr. Sancheti.

Recently, TNT launched a new service called Economy Express in Europe wherein shipments over 50 kg are door delivered. ``Unlike other commonly available freight services, shipments sent through Economy Express can be tracked and are time definite,'' clai ms Mr. Sancheti. Efforts are on to expand the product globally.

TNT also offers what it calls `special services' on request. ``Typical examples are blood samples with limited shelf-life that have to reach their destination within a certain time or that urgent tender document that has to reach Dusseldorf within 24 hou rs,'' says Mr. Sancheti. TNT has set up special service cells equipped with the necessary infrastructure to handle such out-of-the-ordinary requirements.

TNT's expansion plans encompass both geographical and technological aspects. The company recently opened a service centre in Mumbai where customers could walk in and book consignments for any part of the world. Other Net-based services are also on the ca rds. ``We are looking at a stage where a customer sitting at his home or office can access all the facilities related to express distribution: Right from checking price and delivery schedules, preparing shipping documents, ordering collection of items to checking the status of the consignments,'' says Mr. Sancheti.

TNT's strategy in the new millennium, he says, is based on the trends emerging at the micro and macro levels. ``At the macro level, the opening of the Indian economy, increased outsourcing of distribution requirements and advent of e- commerce are import ant trends. At the micro level, increasing customer expectations and need for higher customisation levels are trends one cannot ignore. We also see the distinction between traditional airfreight movements and express distribution fading over a period of time.''