|
Web wars
Couriers ramp up Internet solutions
By Bob Robertson
The Internet is solidifying itself as the battleground of choice for couriers. To wrestle away more shipper business from their competitors, couriers continue to pump big bucks into Web-based offerings.
For example, FedEx Freight, a subsidiary of FedEx Corp. introduced a new online shipping service. UPS also announced the release of trade management tools, aimed at helping shippers better manage their customs clearance online. Other couriers are keeping pace with a heightened Internet presence.
“For years, we have heard that the exchange of information will become as valuable as the shipment itself. Well, that day has arrived,” says Gary Breininger, president of Pickering, Ont.-based Infobase Marketing. “Couriers realize that visibility and information is critical to their future success. Everything is migrating to the web. Shippers want faster, improved and ‘real-time’ access to their shipment data.”
Shippers are now offered increased functionality and greater opportunities for customization. They may also receive shipping information via wireless device with FedEx Wireless Solutions, an enhancement that simplifies the tracking of FedEx shipments. A customer simply enters tracking numbers and may send results to as many as three e-mail addresses.
On-time snapshot
To begin the process, shippers log onto the “My Account” password-protected site. Then, they automatically see a calendar view of their shipping activity by account number, including estimated delivery and shipment pick-up dates. This eliminates the need to enter individual shipment numbers or contact FedEx Freight to track shipments.
Customers can also view a snapshot of the on-time percentage for their delivered shipments for the current month.
“We’ve responded to...customer requests to streamline our online shipping processes by enhancing the efficiency and capabilities of our suite of tools,” says Sherry Aaholm, senior vice-president of information technology for Memphis-based FedEx Services. “These changes will help shippers save time and increase their productivity by making it easier to conduct transactions and receive documentation via the web.”
UPS introduced a new web service as well, called TradeAbility, and enhanced its Quantum View Manage offering. TradeAbility helps international shippers quickly and easily identify specific country tariff codes to calculate duties necessary for customs clearance; generate cost estimates for duties, taxes and transportation; and locate compliance information for 34 countries.
TradeAbility is available on ups.com or can be integrated into a customer’s business applications or web site using Web Services, a technology that allows developers to more easily link computers, software and networks through standard interfaces.
Accurately estimating landed costs helps exporters provide shipping rates with all duties and taxes included at the time of order. This speeds cash flow and reduces the number of refused shipments and returned products.
TradeAbility’s harmonizer feature quickly and accurately identifies harmonized tariff codes, which are used to describe goods for duty calculation, tariff assessments and documentation filings. Additional TradeAbility compliance services indicate restricted trading parties and identify licence needs. Transactions are available to view online for up to 90 days, and customers can download a single transaction or their entire history for their permanent records.
“With the rapidly changing regulatory environment, managing cross-border shipping is complicated,” says Kurt Kuehn, UPS senior vice-president, worldwide sales and marketing in Atlanta.
In Mississauga, Ont., Purolator Courier Ltd. continues to evolve its web site to make it easier for customers to order, track and trace a shipment. By visiting purolator.com, customers are able to establish the status of their shipments in a variety of ways. Online users can search and sort shipping history by receiver or date, establishing who they ship to the most and least, as well as their heaviest traffic days. Customers can then download shipping information and load them into a spreadsheet or database application. Purolator’s online shipping functionality also can be used in conjunction with other company shipping systems, including Purolink if customers are receiving invoices electronically.
“In terms of the courier industry, electronic commerce over the Internet has really evolved. Couriers have tried to turn the Internet into a virtual customer service centre,” says Bob Johnson, president and CEO of Purolator Courier Ltd.
“Shippers today have access to real-time information. The Internet has blown up demand for us. Four years ago, we would get more than two thousand calls a day for pick up. We’re now getting between 22,000 to 25,000 calls a day through the Internet.”
With on-line tracking making such strides, courier shipping is more transparent than ever. b2b
The scent of success at Lush Cosmetics
Since its bath bombs hit the tubs almost 10 years ago, UK-based Lush Cosmetics has grown rapidly. With Canadian operations in Vancouver, the hand-made cosmetics company now has more than 300 shops worldwide and a thriving catalogue and e-commerce business.
In fact, every week, hundreds of customers go online to lush.com and order bath and body luxuries.
“US customers make up the majority of our online business,” says Sam Azad, Lush’s web and mail order development manager in Vancouver.
Handling the volume surge from the US, however, meant Lush had to ensure its customers wouldn’t have to worry about border delays, unexpected duties, taxes and brokerage fees. Lush also needed to automate and integrate its order processing.
“The last thing we wanted was for our US customers to get the jitters about ordering from a Canadian company,” says Azad. “Tracking was a particular problem for us. Our people would often have to end the call, phone the shipping company for the tracking number, and then call the customer back again.”
Lush wanted to process orders, ship them to the border, deal with customs, and deliver to US customers quickly—all while reducing costs and improving service. UPS provided the answer with its trade direct cross border program.
In the past when an order came in, Lush staff would have to mostly prepare the shipping and customs documents manually. Each order was then delivered individually across the border to its US destination, incurring international shipping charges and customs brokerage fees for every order.
Today, multiple orders are consolidated into one UPS shipment to the border. The shipment is then customs-cleared by UPS as a single entry, reducing brokerage charges. Once in the US, the shipment is transported to a UPS facility where it’s broken down, and individual orders are delivered to Lush customers.
Lush’s tracking problem has been solved too. Instead of having to call customer service, a UPS tracking number is automatically generated when the Lush product order is placed. This allows customers to track their own orders online anytime, at lush.com or ups.com.
“By our estimates, we’ve reduced staff time spent tracking customer orders by 90 per cent," says Azad.
Bob Robertson is a Burlington, Ont.-based freelance writer specializing in logistics and supply chain management.
|
