Regional logistics hub for Southeast Asia
TNT launches in Rangsit
By Jon Fernquest |
TNT Express launched new logistics operations in Southeast Asia last week, as reported in in the Bangkok Post.
With improved transportation new kinds of businesses become possible.
Pharmaceuticals for special healthcare needs require constant refrigeration.
Being expensive with rigid expiration dates, inventories of specialised pharmaceuticals are hard to find and have to be specially ordered.
Fast and reliable express delivery means these critical goods can be ordered on the spur of the moment.
Improved logistics also makes just-in-time inventory practices easier for manufacturers to adopt.
Thaivisa.com, one of the leading discussion forums for foreigners in Thailand, launched an import food service last week that uses the new TNT express delivery service (See website).
The new service allows foreigners living in Thailand to shop for groceries over the internet and have hard to find foreign food sent anywhere in Thailand.
Photo on right is of a new TNT Boeing 747-400 ER Freighter awaiting loading at Singapore Changi Airport.
Here is the article in full:
TNT aims for regional logistics hub
New Thai depot to strengthen positionYUTHANA PRAIWAN
Saturday April 19, 2008
SINGAPORE : The Thai unit of Dutch-based TNT Express Worldwide N.V. is aiming to be the logistics gateway for the Greater Mekong region now that it has completed its huge depot in Rangsit, Pathum Thani.
The 3,465-square-metre depot will officially open next month, said Alan Miu, TNT's Thailand country manager.
The depot will serve as its distribution centre and link with 26 outlets nationwide to tap into double-digit demand growth.
The network's coverage area includes southern China, Laos, Cambodia and Vietnam, the countries through which the Mekong River travels.
"New facilities will help strengthen our competitiveness among rivals in the logistics industry," he said.
The logistics network in the Greater Mekong is a part of sub-regional pact to connect transport routes running through China, Burma, Thailand, Cambodia, Vietnam and Laos.
The company said its logistics facilities across Asia would help its network link more than 120 cities with a full range of logistics services in Singapore, Malaysia, Thailand, Vietnam and China.
Thailand has strong potential as it serves as a production base for various industries such as automobiles, electronics and medical care.
Mr Miu said the new depot was one of the group's major investment projects in Asia; it has a total budget of 100 million euros to spend from 2008 to 2012.
The budget will be used for expansion of its air express fleet, trucks and depots. Logistics networks in Thailand also cover the group's time-critical express delivery service, which offers services for goods that require rush delivery.
Last week the leading European logistics group launched its first express delivery service in Asia at Singapore's Changi International Airport, where TNT's inaugural Boeing 747-400 ER freight flight landed.
Onno Boots, managing director of TNT Express Asia, said its express delivery service targeted customers buying high-technology products, equipment, machinery and health-care goods.
"The large volume of high-value goods in these sectors requires delivery services around Southeast Asia, China and Europe," he added.
He said Greater China, one of Southeast Asia's biggest trade partners, represented 24 % of total express volume via air transport in Southeast Asia, followed by 20% in Europe. Volume between Asean countries accounts for 11%.
(Source: Bangkok Post, business section, page B10, 19-04-08, YUTHANA PRAIWAN, temp-link)
Vocabulary:
TNT Express - a global express and mail delivery services company with headquarters in Hoofddorp, the Netherlands (See Wikipedia)
rigid - rules that cannot be changed, not flexible
expiration dates - date when product can no longer be used
critical - extremely important
on the spur of the moment - done suddenly without planning
just-in-time inventory practices - factory's that run so efficiently that they do not need to keep a large inventory of materials on hand (See Wikipedia)
Boeing 747-400 ER freight flight - a flight using a new version of the 747 with extra room for cargo (See Wikipedia)
freight - means either: 1. goods moved by ship, train, plane, or truck, or 2. the the movement of goods by ship, train, plane, or truck
freighter - a ship or plane that carries freight
cargo - the goods or freight that a ship or plane is carrying
distribution - moving goods from factory to consumer (See Wikipedia on distribution and the Four P's of marketing or marketing mix: Product, Price, Promotion, Placement-distribution)
a distribution centre - the central point in a region that goods are sent from to other points in the region
logistics - the management of the flow of goods from factory to consumer, including middlemen, wholesalers, and retailers along the way, includes transportation, inventory, warehousing, material-handling, packaging, tracking, and sharing of information between suppliers and purchasers (See Wikipedia)
logistics network - the routes (roads, rivers, railroads, air routes) wlong which goods are distributed in a region
a logistics gateway - the entry point for goods entering a region, destined for place within the region
regional logistics hub - a central point in the region for distributing goods throughout the region
a depot - a place where large amounts of supplies are kept until they are needed
strengthen position - make your business stronger than competitors
Greater Mekong region, Greater Mekong Subregion (GMS) - a grouping of countries located along the Mekong river, including Vietnam, Cambodia, Laos, Thailand, Burma and Yunnan Province of China (See Wikipedia on Greater Mekong Subregion)
tap into - use a resource to get something that you need (See glossary)
double-digit - 10 or greater (number with two digits)
double-digit demand growth - 10% annual growth in demand or more
coverage area - the area where the service is available
facilities - buildings, equipment, or services provided (See glossary)
a pact - a formal agreement for cooperation
a base for activity Y - the activity Y is carried out at this place
a production base - production is carried out at this place
time-critical - being on time without delays is important
time-critical express delivery service - a fast delivery service that is on time without delays
inaugural - the first time it has happened
X accounts for Y% of Z - X is Y% of Z
