TNT launches Matrix™ in China
10 March 2005 - 11:31 CET
TNT, the world-leading provider of express, logistics and mail services, introduced its logistics flagship suite MatrixTM Transportation Management to China. Built on state-of-art technology, MatrixTM integrates all supply chain partners, giving each real-time visibility of inventory, order and shipment status, leading to fast, flexible, and empowered supply chain execution.The launch of MatrixTM in China is aimed at advancing the proficiency and efficiency of the logistics industry for TNT's clients and partners and advancing the industry standards and practices.
"We are especially delighted to launch MatrixTM in China because of the advantages it will offer our customers," said TNT China CIO Michiel Haarman. "The effective IT system will further strengthen TNT's competitive edge in China. TNT will continue to develop its technology infrastructure as a strong IT platform to meet the requirements in China as well as in the rest of Asia."
China's logistics market is estimated at around USD 215 billion with a 20 percent growth rate. Despite strong economic development, overall logistics costs in China remain high, as a percentage of nominal GDP, they are currently at 19 percent in China, compared to about 10 percent in Europe. Ineffective IT infrastructure is one of the main reasons for China's high logistics costs. Increased use of advanced IT tools like MatrixTM will drive down logistics costs.
MatrixTM overcomes one of the largest obstacles in China's supply chain integration today - synching different systems and solutions to communicate with each other. It integrates traditionally disparate processes such as transportation, strategic planning, optimization, warehousing, and back office functions, allowing sharing of data across these processes and enabling TNT to operate a complete solution. The outcome is increased performance and visibility for all trading partners, resulting in reduced supply chain costs.
Shanghai GM (SGM) will be the first client to benefit from TNT's IT solution. Strong demand in China's automotive spare parts market has led to rapid growth for SGM Aftersales Service in 2004. To continue this high rate of sales growth required improvement of the firm's supply chain operation, ANJI-TNT, the logistics provider for SGM Aftersales Service Supply Chain proposed the MatrixTM Transportation Management System to replace outmoded manual and paper-based operations that were hampering sustained business growth.
SGM Aftersales Service will need a highly responsive and visible transportation management operation, requiring strong support from IT solutions. MatrixTM provides a base for advanced transportation management operations and will offer SGM a solid foundation as a world-leading automotive aftersales Supply Chain.
"We believe that MatrixTM will greatly increase efficiency in our customer's supply chain, reducing delivery times and costs," said Karl Mackey, Operating Director of Automotive Logistics TNT China, "By using this advanced IT solution, TNT can better serve its clients and help us to be more competitive in the market."
MatrixTM Transportation Management is one of the components of MatrixTM, TNT Supply Chain Technologies. MatrixTM supports inbound, outbound and reverse logistics across multiple industry verticals. It integrates a complete suite of transportation, inventory management, order fulfillment, financial settlement and e-commerce applications. TNT's IT platform, encompassing hardware, people and backend solutions, is shared across all divisions and business units to create cost efficiencies.
As an industry technology leader, TNT spent close to US$750 million on global technology development in 2004. Supply Chain Technology News awarded MatrixTM its 2003 Innovation Award for supply chain technology.
