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Oct/10

25

RFID in courier business

RFID is Radio-frequency identification. For the courier business it is highly recommendable.

RFID is a technology that uses communication via electromagnetic waves to exchange data between a terminal and a package or good. Identification and tracking are the main cause of using RFID. The identification and tracking system uses labels or tags.

There are three types of RFID tags:

- passive RFID tags, which have no power source and require an external electromagnetic field to initiate a signal transmission
- active RFID tags, which contain a battery and can transmit signals once an external source has been successfully identified
- battery assisted passive (BAP) RFID tags, which require an external source to wake up but have significant higher forward link capability providing greater range

Courier business, logistics and transportation are major areas of implementation for RFID technology. Courier companies around the world value RFID technology due to its impact on the business value and efficiency.
RFID gives you a lot of benefits and can help you to raise your business!

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China’s largest e-commerce firm Alibaba Group plans to invest heavily in logistics with the aim of building 32 distribution centres in China within the next 2 years.

The plan, in its initial stage, has no detailed investment amount but does not exclude the possibility of setting up a separate company.

The firm want to expand its reach to 52 cities in two years from 20 cities. It runs its current network through external partners and distribution centres.

Jack Ma, the founder of the company in which Yahoo Inc (YHOO.O) owns a 40 percent stake, believes that China’s logistics market is fragmented and does not offer optimal customer service.

Alibaba Group is the parent company of China’s top B2C firm Alibaba.com (1688.HK), China’s top e-commerce firm with a consumer focus, Taobao and the country’s leading e-payment, service Alipay.

Source: Reuters

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Oct/10

19

5 tips to find a good courier

Choosing a courier out of the high number of offers is always a difficult task. We’ve got five tips for you that might help.

1) Don’t just rely on the biggest name you come across. We’ve all heard of a DHL and FedEx. But this doesn’t mean they are necessarily the best choice for you. Check out alternate offers, too, not just from the “biggies”. Smaller companies don’t have to be bad. Perhaps they are just new in business.

2) Check out the feedbacks of the courier. Are there positive ones? If yes it’s a good hint that you are talking to someone trustful.

3) Is the International Courier service the actual service of the courier company you are enquiring with, or is it being outsourced? Some smaller couriers just don’t have the capacity to take on larger jobs but will happily make a small profit by passing the job onto someone else. It’s ok, but you should be informed about that.

4) How long have they been in service? If they have been around for a while they are probably a safe bet. But it’s no shame to try out newbies. Probably they are trying to bring a good service to win customers and might be cheaper than bigger courier companies. Just check out and make your choice.

5) Does the courier offer any insurance or perhaps an online tracking of your package? With this offers you are always safe.

No matter what courier you are going to choose. Just remember: bigger companies can offer you safety and experience. Smaller ones can probably be cheaper and more personal. It’s your choice.

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Oct/10

14

CAT: New China Logistic Center

Caterpillar Inc. (CAT – Analyst Report) announced that its wholly-owned subsidiary, Caterpillar Logistics Services Inc. is opening a new 9,000 square-meter Logistics Center in Suzhou, China. The initiative is aimed at strengthening Caterpillar’s growing manufacturing presence in China and enhancing supply chain and operational efficiency in its manufacturing operations in that country and the Asia-Pacific region.

The Logistics Center will provide inbound logistics support to Caterpillar’s manufacturing operations in China and in the Asia-Pacific region. The logistics center will also help in the movement of goods in and out of China, supporting the company’s global production as well.

The new facility will employ approximately 50 full-time employees. The center will apply the company’s Caterpillar Production System (CPS) to drive efficiencies throughout the new facility. By utilizing the CPS Guiding Principles, the company plans to ensure high speed delivery, increase inventory turns and make material available to its manufacturing facilities in Asia.

This is another development in a series of investments carried out by Caterpillar in line with its long-term strategies to tap the growing Chinese market. In the second quarter, Caterpillar had announced its intention to expand its excavator facility in Xuzhou, China.

This will almost quadruple its excavator capacity once the expansion plans are completed in 2014. In late September, Caterpillar announced another expansion plan of a new facility in Wujiang, China, to produce mini-hydraulic excavator models in the under 8-ton range.

In 2008, China had announced a RMB4 trillion ($586 billion) economic stimulus package to prevent the global financial crisis from ravaging its economy. Under the package, the lion’s share of RMB1.5 trillion was earmarked for public infrastructure development. Projects that were lined up included railway, road, irrigation and airport construction.

The second largest allocation of RMB1 trillion was for reconstruction in the earthquake hit regions of Sichuan. This has spurred construction in China, triggering demand for construction equipment, which bodes well for companies like Caterpillar.

Further, China has passed Japan in the second quarter to become the world’s second-largest economy behind the United States. This year, even though growth has begun to moderate slightly, China’s economy is projected to expand by about 10%, continuing a remarkable three-decade streak of double-digit growth.

China is thus a viable option for expansion, and we appreciate Caterpillar’s focus on expanding its presence in that country as well as in the Asia-Pacific region and Latin America. Further, Caterpillar is well positioned to expand margins through its CAT Production System initiatives, market leadership and ultimate pricing power.

We believe once President Obama’s $50 billion plan to rebuild the U.S infrastructure is approved, Caterpillar will benefit immensely. Consequently, we have recently upgraded our rating from Neutral to Outperform. We have a Zacks #1 Rank (short-term Strong Buy recommendation) on the stock.

Peoria, Illinois-based Caterpillar Inc. is the manufacturer of construction and mining equipment, diesel and natural gas engines, and industrial gas turbines. Caterpillar is one of the few leading U.S. companies in an industry that competes globally from a principally domestic manufacturing base. The company operates three divisions –– Machines, Engines and Financial Products.

Source: Zacks Research

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More than 190 leading logistics providers worldwide confirmed to exhibit in 418 exhibition booths, covering every angle of the logistics industry, including logistics products, machinery, equipment, logistics services, software and information technology, education institutes and Government State Enterprises, at the 7th International Logistics Fair 2010 (TILOG 2010), to be held on October 7-11, 2010 at Hall 101-102, BITEC Bangna, Bangkok.

Mrs. Nuntawan Sakuntanaga, Director-General of the Department of Export Promotion (DEP) Thailand, revealed that visiting TILOG 2010 will undoubtedly provide a beneficial opportunity for the entrepreneurs who want to save their logistics cost and time can seek for suitable services from professional service providers at this event, while exporters and manufacturers in logistics industry to see the innovative logistics management and technology exhibited at the show, establish trade ties and expand business cooperation.

Moreover, DEP has also invited members of the International Federation of Freight Forwarders Association (FIATA), who attend the FIATA World Congress in Bangkok, to visit and join the Business Matching activities in TILOG 2010. Currently, FIATA has more than 40,000 members of leading freight forwarding companies in 150 countries worldwide.

Mr. Suwit Ratanachinda, President of Thai International Freight Forwarders Association (TIFFA), said that TILOG 2010 is expected to be an important arena for networking among logistics service provider and users across the Southeast Asia region and beyond and business matching between Thai and International entrepreneurs.

As the host of FIATA World Congress in Bangkok this year, DEP and TIFFA have prepared the memorable event for the members of FIATA during staying in Bangkok, including: the Speech by Mr. Alongkorn Ponlaboot, Deputy Minister of Commerce together with the Top Officers from the Government Sectors; the Lecture about the export management and challenge of logistics business in Thailand by top executive of DHL; and FIATA Gala Dinner with around 500-700 attendants.

Assoc. Prof. Phietoon Trivijitkasem (Ph.D.), Vice President, Thai National Shippers’ Council (TNSC), talked about the highlight of TILOG 2010 that this trade event will showcase not only state-of-the-art technology in transportation and logistics, but also the Green innovation for logistics, i.e., Green Logistics, Green Packaging, and energy-saving technology.

Source: PR Newswire

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Oct/10

4

And the Logistic Award goes to…

The ELSC awards were given out during the Express, Logistics and Supply Chain Conclave held in Mumbai.

Drive India Enterprise Solutions Ltd, (DIESL), logistics arm of the TATA group, has won the award for the “Best 3rd Party Logistics (3PL) Company of the Year” at the 4th Express, Logistics and Supply Chain Awards held in Mumbai on 30th September 2010. The award was received by Ajay Chopra, CEO, DIESL.

The ELSC Awards were given out during the Express, Logistics and Supply Chain Conclave held in Mumbai at Taj Lands End on the 30th of September ’10. The ELSC conclave, now in its 4th year, recognizes and showcases logistic companies and supply chain led businesses that have set new benchmarks in the delivery of logistics solutions.

The winners of the awards are selected by a panel of industry leaders and the eminent members of the advisory council of ELSC. These Awards were decided on the basis of a research conducted by A.C. Nielsen.

Speaking on the occasion, Ajay Chopra, CEO, DIESL said, “We are pleased to receive the award for the ‘Best 3PL Company of the Year’ in the country. The recognition underlines our capabilities to deliver the highest standards of service with a customer-focused approach, through our extensive network and deep penetration across the country powered by a huge investment in technology. This award is dedicated to all the 3500 plus DIESLites who have made DIESL what it is today.”

DIESL (Drive India Enterprise Solutions Ltd.), a Tata group company, jointly owned by Tata Industries and Tata International, is a leading provider of integrated logistics solutions, with over 176 warehouses connecting 4000 towns across India.

DIESL operates more than 4.4 million sq. ft. of warehouse area, covering around 90% of country’s districts and managing over 1.25 million transactions per month. Recently, DIESL roped in TCS for 100-crore technology upgrade. DIESL also recently launched nationwide road-safety training for truck drivers which will cover minimum of 10,000 truck drivers in 2 years.

This award was won amidst stiff competition from leading logistics companies in India like TCI Supply Chain Solutions, AFL Pvt. Ltd., Safexpress Pvt. Ltd., GATI Ltd., DHL Supply Chain, Schenker (I) Ltd. and Agility. This achievement is recognition of DIESL’s efforts towards seamless integrated logistics solutions.

Source: India Infoline

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Sep/10

27

India develops Logistic Master Plan

The Associated chamber of Commerce & Industry of India (Assocham) has suggested introduction of an unified body to develop India’s Logistic Master Plan and integrated road-map for implementation with a view to avoid multiplicity of agencies, both at the Centre and States level, in exercising their powers to regulate the industry – according to a statement released by the chamber. In a note submitted to the government, the chamber has stated that currently the Ports, Shipping and Maritime Logistics (PSML) are highly fragmented and affecting the growth to the extent of 2% of the GDP on account of logistics and transportation bottlenecks.
Stressing the need for economic, speedy safe and seamless flow of goods, the chamber President, Dr. Swati Piramal said, “Logistics cost in India is over 13% of its GDP making India uncompetitive at the international markets due to under-developed trade and poor logistics of the country.”

The chamber stated that about 90% of export-import cargo of the country, including that of its strategic cargoes is carried by foreign flag vessels. This puts the country in a precarious situation as bulk of our essential supplies like oil is carried on foreign flag vessels. This is a vulnerable position as there exists scope for leaving India’s strategic supplies at the risk of an abrupt stoppage in case of any eventuality.
Containerization of cargo requires efficient dry ports and multimodal transport for higher level of service at reduced costs. In India, at present, the prevalence of complicated, lengthy and cumbersome customs procedures are resulting in higher transaction costs. Additionally, practices like detention of goods trains at terminals due to various reasons such as rake formation, availability of locomotives, crew availability and train examination has been detrimental to foreign trade in India. The country is required to focus on this issue.
It has been observed that a variety of industries ranging from warehousing to power plants, steel mills, ship yards, chemical are being developed in the port back areas. Therefore, land acquisition and development of the available land have become most critical components of development of ports and shipping.
Referring the issue of distinction between major and non-major ports, the chamber note says “while the ports designated as the major ports come under the purview of Tariff Authority for Major Ports (TAMP), non major ports are not covered by TAMP. In view of the increased integration of constituents of PSML, a comprehensive policy needs to be formulated. Major policies drafted for the development of the sector are not only partial in coverage but also have got inconsistent objectives.
Globally there has been a growing trend in the port sector towards separation of port authority from port operator. This aspect need to be considered for meeting the demands of shipping and international trade. Port authority is increasingly getting focused on policy and regulatory role while a range of private port operators and port service providers are taking over a range of port related services. In contrast to the major ports, management of many of the minor ports like the ones developed on the Gujarat coast in India has taken care of this issue.
Assocham has further advocated addressing the host of taxes impending the growth of the industry. It says the number of services covered by service tax has gone up from 76 to 107, taking the effective service tax rate for the shipping business from 8 to 12.36%. The shipping companies have to pay service tax at the rate of 12.36% on various services rendered to them such as cargo handling, clearing and forwarding, general insurance, clearing and forwarding agent service, port services, repair and maintenance, steamer agents, storage and warehousing, survey, manpower recruitment and professional services.

Source: Construction Week

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The Department of Post is in the process of drafting a new regulation for the postal sector.

This is a necessity since the present act regulating the sector – the Indian Post Office Act 1898 – is outdated.

In fact, the earlier attempt to make an amendment to the Act of 1898 received significant criticism from the courier companies, various ministries and industry associations.

Private companies opposed various provisions of the amendment including use of a weight and price multiple to define a reserved area for India Post in letter and express mail services segments, asking larger companies to contribute to USO funding, proposing a roll-back of the FDI from 100% to 49% and suggesting a regulator for this sector.

While many of these issues are likely to be better addressed in the new regulation the need and the role of the regulator is still a bone of contention.

Over the past few months, ICRIER has been conducting a survey on the express delivery services (EDS)/courier industry to understand the need of a regulator for the industry.

The core issues discussed in the survey include whether the highly competitive EDS/courier industry, with no entry or exit barriers and multiple operators (more than 2500 companies) actually need a regulator.

And, if at all there is a need for the regulator then who should be the regulator and what should be its role and responsibilities.

In India, there is no common view across different segments of the courier/express industry and their clients on regulatory issues. Large express/courier companies felt that EDS should be outside the scope of regulator.

Around 59 per cent of clients did not disagree with the suggestion that government should impose some form of registration/licensing requirement to put a check on fly-by-night service providers.

Smaller courier companies also felt that some form of registration from an independent organisation will provide them security and credibility. However, they differed as to who should be the registering organisation – should it be a central courier association, regional associations, or should they register with an independent regulator?

Most of those who support the proposal for registration argued that it should be one-time registration based on the payment of a nominal fee and should be valid for life-long.

If it is life-long registration then it is difficult to monitor service quality. For ensuring service quality, there should be some basic standards which all companies have to follow and a periodic monitoring mechanism should be in place to ensure that companies compile with that standard.

Such periodic monitoring also entails costs since the number of courier companies is much large.

Moreover, since the courier industry/sector constitute of a large number of small, family-based unorganised companies spread across India, it is difficult to monitor them unlike companies in sectors like telecommunications where there are only a few large corporates.

Overall, the survey found that the cost of registration and monitoring is likely to be higher for smaller companies than larger companies since smaller companies are more localised, they do not have large administrative departments, and/or a mechanised system of regular collection of data/information.

These companies are already operating with tight margins and may have to wind up their operations. Since they are more labour-intensive it can adversely impact employment.

Other arguments from supporters of regulator includes anti-competitive practices, address of consumer grievance, access to network, etc.

The anticompetitive practices can be addressed by the Competition Act. Consumer forums can address consumer grievances and in a sector like courier, consumers have a wide range of choice of service providers. If the service provider does not provide quality services, then customer can easily change service provider and there is no cost associated with such a change.

Tie-ups and strategic alliances are crucial among courier/EDS service providers but, unlike telecommunications, there is no scarce resource which acts as an entry barrier and which can be monopolised.

Thus, the argument for a regulator is weak in case of EDS/courier services.

In this context, it is worth mentioning that the Planning Commission in its draft Regulatory Reforms Bill has proposed a regulator for Post (and not for courier) when the postal sector is liberalised. This is necessary since basic postal services are treated as a “public good” – which has to be made accessible to all and reasonable prices.

In fact, the regulators in most countries have come up with privatisation of the postal sector to regulate any malpractices from the dominant incumbent national postal organisation.

In most countries, EDS is outside the regime of postal regulator. The regulator has to be independent since Department of Posts also has similar express services (Speed Post) like private operators and hence has a vested interest in this sector.

Lastly, while in India some officials seem to want a regulator for each sector, the regulatory experiences have been mixed. The requirement for setting up of an additional infrastructure which entails costs will also have to be justified.

Allocations of all scarce resources do not need a regulator. If competition fails then regulator is justified. So far none of the private courier/EDS companies have raised such concerns.

So, the question is whether there is really is a need to bring a highly competitive EDS/courier sector under the regime of the regulator?

(The views expressed are those of the writers-Arpita Mukherjee (Professor, ICRIER), Ramneet Goswami (Researcher, ICRIER) and Parthapratim Pal (Associate Professor, IIM (Calcutta))

Source: India Blooms News Service

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Aug/10

24

About Malaysian postal service

A short story of Alan Tan from Malaysia:

Yet more stuff from the Internet. I’m not talking about virtual stuff here, but good physical things you can actually hold in your hand. Ever wanted something unique but can’t get ahold of it? Malaysia’s lelong.com.my and ebay.com.my have been around for ages. More so now, we also have Malaysia’s mudah.com.my as a portal to buy from. However, every time I get a parcel in the mail, the question from my colleagues is mostly the same. Is it safe to buy from the Internet? The simple answer is… get ready for it… NO!! Of course it’s not.

But, you can increase your online safety by knowing what you’re getting yourself into.

Malaysia’s postal service has much improved. But still, the Malaysian mentality of “it can get lost in the mail” is pretty much persistent. For good reason, too. Before I go further, let me say that I have lost items in the mail, and friends of mine who have taken a cue from me to buy from the Internet, have also lost items via the postal service.

This is just ONE man out of many, telling the same story. And here is the alternative to the postal service. Here is CHAKKR – The courier wheel!

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Aug/10

23

Beijing airport warns travelers

Beijing expatriates have been warned not to take risks by flying as on-board couriers to get free traveling opportunities and to collect frequent flyer miles.

Beijing airport customs have warned expats of the risks of taking parcels with unknown contents on board airplanes, and authorities warned Sunday that more than 50 grams of an illegal substance can qualify the carrier for a death sentence, regardless of the traveler’s knowledge of the package’s contents.

“If any illegal substance is found in a bag under your care, you will be charged”, a worker with the Beijing Capital Airport customs department told the “Global Times”.

Source: Global Times

Our lead: always care about what you are taking with you! Do never take unopend packages or goods that are not absolutely secure.

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