Press release
TNT committed to China and delivers its leadership vision and plans Opening of TNT China headquarters in Shanghai
Shanghai, 10 September: TNT – the world leading provider of express, logistics and mail services – reinforced its commitment to China during a ceremony to mark the opening of the new TNT China's headquarters in Shanghai today. The full Board of Management of the global TNT group attended the opening, after having visited many relevant locations in China in the past week. Peter Bakker, CEO of TNT, outlined the company's leadership vision, strategy and plans for China.
Peter Bakker: "China is identified as one of TNT's key growth areas. We foresee that the market will be a key driver for TNT's future global growth. We are committed to achieve a leadership position in the rapidly developing mail, express and logistics market. Now we have in place the right strategy, organisation and people to deliver products and services that help to enhance our customers'competitive advantage."
TNT further outlined its strategy to build its market leadership position in China, leveraged on five key pillars of strength – TNT-1 approach; its people; infrastructure; technology; and its commitment to the community.
TNT-1 approach
TNT China offers its clients mail, express and logistics products and services as one company. This is based on the TNT-1 initiative that was recently introduced. TNT-1 is a strategic initiative aimed at maximizing the group's revenue and cost synergies by mobilizing cross-divisional teams in business support areas such as HR, finance and marketing.
People
Ken McCall, CEO TNT China: "Training and retaining the right people will ultimately determine our success in China. The success of our people development programmes, the recent launch of the TNT China University Undergraduate Internship Programme, combined with our internal sharing of best practices from Europe and North America, will help TNT to raise the quality of service offered. This will be setting a benchmark that will help shape the future of mail, logistics and distribution market in China."
Infrastructure and Network
TNT's three core business areas are all expected to experience significant growth as WTO ascension opens the domestic and international markets. To capitalise on this opportunity and realise its leadership vision, TNT expects that its China network needs to expand to more than 100 branches by 2010, in order to provide its complete product mix of Logistics, Express and Direct mail services to 1,000 cities in China. Also TNT needs to increase the number of vehicles to 2,400 to handle this growth, staffing levels are expected to increase ten-fold and the warehouse capacity expand by up to 10 times.
Technology Infrastructure
TNT will ensure that the IT infrastructure in China is up to the highest standards. TNT has recently introduced Matrix™ in China. This is TNT Logistics'transportation management suite, which harnesses state-of-the-art technology to optimise, integrate and achieve visibility throughout our customers'supply chain. Matrix™ will cut cycle times, reduce inventory and reduce transportation costs by effectively managing asset utilisation.
Giving back to our Community
TNT is a strong advocate and contributor to Communities projects, as part of the overall Corporate Social Responsibility programme. TNT will thus take its responsibility towards communities and at the same time instill pride with its staff. TNT China has made a strong start with its community programmes in 2004 by raising RMB 600,000 to help feed and educate 4,000 Chinese children in Gansu, through its sponsored 'Walk-the-World'events in Beijing, Shanghai and Guangzhou on 20th June (part of a global event of TNT with 40,000 participants in all time zones) and its co-presentation of the Asian Business Leaders Awards in Shanghai on 25th & 26th May.
-Ends –
TNT is the leading the global provider of Express, Logistics and Mail services. The group employs around 161,000 people in 64 countries and serves over 200 countries. TNT provides customers with integrated business solutions that cover the entire range of services, from direct marketing solutions, to time-definite door-to-door delivery services, to complex supply chain management. The company focuses on a diverse range of market sectors including automotive, electronics, consumer goods, utilities and telecommunications, publishing and media. TNT is a division of TPG N.V, a Global Fortune 500 company. Headquartered in the Netherlands and publicly listed in the stock exchanges in Amsterdam, New York, London and Frankfurt, the company reported sales of €11.86 billion in Y2003.
TNT China generates annual revenues of €250 million across its integrate Mail, Logistics, Express and Automotive Logistics divisions. It currently employs 2,500 skilled professionals across its network of 25 branches (35 by 2005), and services more than 500 cities in China. TNT China currently operates seven gateways to China – Beijing, Shanghai, Guangzhou, Dalian, Hangzhou, Xiamen and Shenzhen.
TNT China is the largest automotive logistics provider in China through its JV with Anji.