Financial Daily from THE HINDU group of publications
Wednesday, Oct 08, 2003
Financial Daily from THE HINDU group of publications Wednesday, Oct 08, 2003 |
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Logistics
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Supply Chain Management `UPS exchange collect' to lessen shippers' woes G. Gurumurthy
Coimbatore , Oct. 7 THE all-too-familiar cry of shippers citing the `minimum 5-6 weeks" time to get their payments paid by the consignee may become a thing of the past, thanks to a `synchronisation of commerce' being attempted by United Parcel Service (UPS) which will reduce the time for payment remittance to a week or 10 days. The global logistics/express courier major is seeking to fuse the funding of export receipts with the goods shipment services and information through its value-added logistics services package called `UPS exchange collect'. The company, which has already introduced the `exchange collect' that helps accelerate payments and reduce risks associated with international trade in European and Asian countries (including China and Indonesia) since April this year, is planning to introduce the logistics-based financial services in India by next year. Besides, UPS will also be coming out with an `import freight collect' variant that will enable Indian companies seeking imports for re-exports of goods. "Both these new value-added logistics services would be introduced in India by next year as UPS is keen to take advantage of India's emerging market in supply chain management in the wake of the WTO seamless global trade by 2005," Mr Jeff Fairbairn, Director of UPS's Indian joint venture company, UPS Jetair Express Pvt Ltd, said. The company's financial services arm, UPS Capital Corporation, will assume the role of a banker to facilitate integrating the supply chain management with supply chain financing that would shorten the payment time. Mr Fairbairn told newsperson that his company is keen on tapping the potential of Tirupur for the `exchange collect' package which will help small business enterprises access speedy fund transfers and greater cash flow through supply chain. More than $1 billion worth of goods is exported from Tirupur, and more than 60 per cent of these exports are headed for European destinations, which he termed as positive factors for the company to explore the market. Information-based logistics and funding would be the business solution for an apparel production centre like Tirupur which faces greater risk in stocking inventories as fashions keep changing. "Sychronisation of commerce will also eliminate warehousing."
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