Electronic solutions abolish need for inventory

Competition is forcing express operators to find new ways to differentiate their services - from electronic capability to diversified product range. Leonard Neill finds out how some of the industry leaders are adapting to new market demands. WHILE THE business of express freight increasingly relies on electronic solutions, on the physical side there is little further to be done about transit times. "Operators are already offering later pick-ups and earlier deliveries," says Sameer Wadhwa, FedEx manager - marketing and e-commerce. "Constraints such as airport and authorities' working hours, some night flying restrictions and more time-consuming security measures all add up. So the ratio for average air transport of 10% of time in the air and 90% on the ground has remained largely unchanged over 25 years." The new wave of electronic solutions is designed to simplify and accelerate administrative procedures for shippers. Says Wadhwa: "Users arrange collection through a click of the mouse. Online address books eliminate time wasted on retyping consignee data and avoid recapturing errors. "Bar-coded shipping labels are generated automatically and printed on the desktop. This is crucial as every parcel undergoes between 12 and 20 scans after leaving the supplier to update its status at each stage of the journey." Thereafter, users track their consignments in transit on the internet and verify delivery to their customers on arrival. According to Wadhwa, the FedEx website counts more than 2 million original hits every month in 14 languages and processes a million package-tracking requests daily. "Federal Express provided the first functional application of a website with online tracking in 1994 and continues to invest over R140 billion per annum in information technology and IT people. "Given the speed and reliability of express freight, there is no longer the need for inventory. Business manufactures items according to sophisticated demand estimates and uses FedEx to deliver products without their ever having to be stored." South Africans are awaiting the technology rollout locally so they can enjoy the same benefits as their overseas counterparts. "We developed a system specifically for the needs of the region," says Wadhwa. "This is being seamlessly integrated with the FedEx global systems for pre-launch testing before the end of the year."