Kuala Lumpur – TNT, one of the world’s leading express integrators, today announced that its hi-tech sector business achieved a double digit growth in Asia (year to date). In Malaysia alone, revenue grew by more than 20 per cent. Despite the economic downturn, this growth was attributed to TNT’s lean supply chain solutions that address the top most concern of hi-tech and electronic businesses – excess inventory.

Recent studies conducted with several hi-tech and electronic companies indicate that the current economic downturn has increased the volatility of demand and as such, many businesses are most concerned about keeping their inventory low to prevent product obsolescence. In response, many businesses are leaning towards a ‘build-to-supply’ model rather than a ‘build-to-inventory’ model which takes into account lower levels of inventory, but also shorter delivery times and reduced costs.

Onno Boots, regional managing director of TNT Asia said, “The pressure on hi-tech businesses to keep inventory levels low has led to a demand for a short end-to-end supply chain solution that is responsive and also economical. As a result, businesses are slowly turning away from sea transportation that is cheap but slow to faster transportation modes such as road or air transportation that are capable of delivering goods in smaller volumes. Our air and in particular, road networks which we have developed over the years, enable us to provide exactly that.”

Some time back, TNT developed a calculation model to determine the optimal mode of transport for a business, taking more than just the price of transportation into account. Called the IDEA tool, it gained greater prominence lately due to the increased pressure on cost control that companies have been facing. The calculation model computes financial savings derived from four components:
- Reduction in cycle stock and in-transit inventory
- Reduction or elimination of Safety Stock
- Reduction or elimination of Dead Stock
- Avoidance of Service Enhancement Stock
TNT has relied on this tool to identify the most cost-efficient mode of transportation for its customers.

TNT’s air and road network are seamlessly linked enabling customers to choose a variety of transport combinations that offer a mixture of economy and speed.  TNT’s Boeing 747 freighter flies three times a week between Singapore, Shanghai and Liege (Europe), and an additional TNT freighter launched in September flies three times a week between Hong Kong and Liege (Europe) which then connects to TNT’s extensive Europe Road Network. TNT’s unique Asia Road Network (ARN) which provides a 7,500 kilometre long road network wholly managed by TNT and stretches across 125 cities in six countries. The ARN is 30 per cent cheaper than air transportation and three times faster than sea transportation.

TNT recognises the paramount importance of security to the hi-tech and electronic industry and has been implementing and maintaining a sophisticated security management system which identifies, analyses and mitigates risks up and down the supply chain. TNT’s high level of security management has earned the company the ISO 28000 certification for its Asia Pacific operations, the first for any express integrator.