TNT bets on e-commerce

Business Asia, March 3, 2000

TNT, a leader in global express distribution, logistics and international mail, expects its global e-commerce strategy to boost its business growth significantly.

"The e-commerce-related business will be a billion dollar trade," said TNT Post Group executive president Carel Paauwe. "We offer a TNT supply chain management which is a customised e-fulfilment service for real-time single orders," he said.

He added that TNT was currently running customer pilot programs in key markets and industries and would make it available to its staff, logistics people and management in the second half of this year.

In Asia, TNT said it was capitalising on the high level of business usage for its own online services.

Internet penetration in Asia was being driven by businesses, whereas in the US it was driven by individuals, TNT noted.

It also said International Data Corporation had forecast that in 1999, only 20 per cent of total Internet usage in Asia would be individuals, compared to 28 per cent by the public sector and 52 per cent by business.

TNT had predicted a dramatic increase in the use of its on-line services and e-fulfilment business in Asia over the next three years.

It forecast that by 2002, 70 per cent of all consignments in Asia would be handled electronically, while the e-fulfilment business -- a supply chain management for e-commerce companies -- was set to account for 30 per cent of the company's business in the region.

It said a 30 per cent revenue growth in the region had been recorded for the company's year-on-year performance.

Driving the growth was China, which recorded a 54 per cent revenue increase.

TNT planned to increase the number of depots in China from 23 to 30 next year.

TNT had also determined that total Asia business could be worth US$26 billion by 2007 and US$8 billion would come from China alone.