TNT pointed to recent studies conducted with hi-tech and electronic companies indicating that the current economic downturn has increased the volatility of demand and as such, many businesses are most concerned about keeping their inventory as low as possible to prevent product obsolescence. In response, many businesses are leaning towards a ‘build-to-supply’ model rather than a ‘build-to-inventory’ model which takes into account lower levels of inventory, but also shorter delivery times and reduced costs.
“The pressure on hi-tech businesses to keep inventory levels low has led to a demand for a short end-to-end supply chain solution that is responsive and also economical,†said TNT Asia regional managing director, Onno Boots. “As a result, businesses are slowly turning away from sea transportation that is cheap, but slow, to faster transportation modes such as road or air transportation that are capable of delivering goods in smaller volumes. Our air and in particular, road networks which we have developed over the years, enable us to provide exactly that.â€Â