The Hindu Business Line : UPS plans to launch `Internet' shipping

CATERING to the market need for shipping smaller consignments more frequently, United Parcel Service (UPS) plans to launch the UPS Internet Shipping (UIS) in India in the third quarter of 2003, according to Mr Matthew B. McGee, Vice President - Marketing, Asia Pacific.

Mr McGee said that a recent trend is that shippers are sending out smaller consignments at more frequent intervals instead of consolidating. This helps the manufacturer to realise his monies faster, as the goods would reach the market faster, he said.

UIS is an Internet-based shipping solution that allows customers to produce all necessary documents and labels on-line, among other things. This solution is designed for customers who ship small volumes or companies with staff shipping from individual workstations.

In the past few years, UPS has been building its capacity and its capabilities in the Asia Pacific region. During this period, Asia has emerged as the fastest growing region with India and China being the drivers of growth. This has proved beneficial to logistics companies as shipments grew at a rate of 24 per cent out of Asia and intra Asia shipments grew around 20 per cent, hesaid

In April 2002, UPS ``took a big leap forward, and began direct flights into China from the US on the company's own aircraft'', he said.

In 2001, UPS opened its Asian hub at Clark Air Force Base in the Philippines. There are 10 aircraft feeding the hub. India is linked to the UPS around-the-world-flight out of Mumbai 13 times a week. Currently, the company uses a B767 but plans to upgrade to an MD 11 later this year, he said.

UPS' market strategy in Asia differs from the competition, according to Mr McGee. The company operates a combination of wholly owned subsidiaries, joint ventures , partnerships and strategic alliances. In India, UPS has a 60:40 joint venture with Jet Air.

Mr Jeff Fairbairn, Director and CEO, UPS Jetair Express Pvt Ltd, said that an investment of Rs 22 crore had been made in the joint venture. The company will soon be opening an office in Kochi.

Mr McGee said that besides building up the network, the aircraft capacity and the joint venture companies, the company has invested $17 billion (since the early 1990s) in information technology. One of these solutions was the DIAD II (delivery information acquisition device) developed by UPS.

In India, UPS has introduced DIAD II technology — there are 70 devices costing a lakh a piece being in the Indian market. This enables the UPS offices in India to hook up to the worldwide network to provide package tracking and tracking services to the customers.

The device uploads package level details to the customers as well as enables signature tracking. The information is available on the Internet instantaneously once the package has been delivered; there is also proof of delivery as well as the digital signature.

The business of logistics solutions has evolved today from merely picking up and dropping off packages into a more sophisticated business as enabling partners in global commerce. But the pick up and delivery business is estimated to be in the region off $62 billion while the supply chain business is $3 trillion market. Mr McGee said that UPS has evolved beyond the package delivery business into being partners in the supply chain management.

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