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LOGISTICS AND INTERNATIONAL TRADE

Consider the Role That Logistics and International Trade Have Played At TNT Express

Introduction

Businesses today are operating in a global environment which has forced many companies regardless of their market base or location to consider the rest of the world when formulating their strategies. Global business has experienced a tremendous change for the last two decades. This is because of change in trends toward integrated logistics, globalization of different industries and increased development of communication and transport systems. Businesses today cannot isolate themselves and ignore factors like competitive situations, economic trends or innovation in other countries when their competitors come from other countries. Supply chain management is the way by which many companies truly go global where accompany can produce a product in the US, manufacture in India and finally sell it in Europe or Africa. Many companies are changing the way they manage theory logistics as well as operations due to changes in international trade, spread of modernization of transport infrastructures as well as the intensification of competition (Jonsson, 2008). All this have elevated the significance of the flow off management to higher levels. The paper analyses the roles that logistics and international trade have played or will play in future in transportation companies like TNT.

TNT Express

TNT Express headquartered in Hoofddorp, Netherlands is an international courier delivery services company. The company operates fully in 61 countries and delivers parcels, documents as well as pieces of freight to more than 200 countries worldwide. It major competitors include DHL and United Parcel Services. FedEx reached an agreement in 2015 with TNT to operate as one thus reducing some competition. The company was started by Ken Thomas as Thomas Nationwide Transport after the World War II with a single truck. By 1980s the company had established operations in 180 countries thus referred to as the largest transport empire globally as it operated in rail, road, sea and air.

Today the company is among the leading providers of business-to-business express delivery services in the world. TNT has been able to offer its customers both an extensive and international network which is integrated with the current technology. This has allowed the company to provide a unique combination of on-demand, door-to-door services, time-sensitive services within Australia and the entire globe.

The Express Delivery Industry

The main business in this industry is providing value-added, door-door transport as well as deliveries of time-definite shipments world-wide. The industry has provided the customers with services which are comprehensive in nature; organizing collection, allowing the sender to access the information with regard to the shipments progress(from pick-up to deliver) and provision of a proof of delivery (David, 2013). When the shipments are crossing the international borders, the express delivery has handled the clearance of customs as well as duty and tax payments when required. In transporting of freights to the US from Asia or Europe, the most important factor to consider is the transportation cost involved. Different transportation system charge different prices depending on the handling of goods. In transportations costs such as freight charges, insurance charges, terminal costs among other costs must be considered while transporting goods. Transportation of commodities can be done through air or sea but depending on the urgency on the goods in question. It is the work of transport managers to decide the best method to be used in transporting goods (Jonsson, 2008).

In some cases, it is better to transport goods through the sea if they are bulky and are not urgently needed. This is because the prices charged on air transport may be costly depending on the type of good to be transported. However, urgent goods should be transported through air transport because it must be done in time in order to meet customers’ expectations and to satisfy customer needs (Rushton & Walker, 2007). However, when selection the way to transport freight it is important to evaluate the risk involved while transporting those goods.

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