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Logistics - Supply Chain Management


XPS Cargo to enhance fleet strength in Kerala

Vinson Kurian

Thiruvananthapuram , June 23

XPS Cargo Services, the door-to-door express parcel service division of integrated logistics solution provider Transport Corporation of India (TCI), proposes to boost its fleet strength in Kerala in tune with business needs and demand.

Speaking to Business Line, Mr K. Prabhakar, Chief Executive Officer, said the company was operating 30 vehicles in the State for distribution of all kinds of parcels. The fleet strength was being reviewed on a monthly basis.

The company had earlier hit the headlines by tying up with Emirates Post of the UAE for delivery of parcels in the State. It was estimated that 50 per cent of all incoming parcels from the UAE was distributed in the southern States, particularly Kerala. The tie-up hoped to account for a 20 per cent share of all in-bound international parcel service business in India by 2005.

The personal packages, on an average, weighed about 30 kg to 40 kg each. Under the offering, customers could send parcels of up to 35 kg for a fee of Rs 576. This was about half the cost of shipping that an express carrier normally levied.

Under the tie-up, XPS is responsible for the distribution of in-bound parcels forwarded by Emirates Post from the UAE. Called Bharat Parcel Guaranteed, the service assures a refund of parcel charges to the consignor in case of failure to deliver within two weeks of booking. The niche service is targeted at the large expatriate population based in the Emirates.

XPS had two hubs at Palakkad and Ernakulam. The Palakkad hub looks after the distribution business in the entire north, while the Ernakulam hub took care of business in the State. The company has had presence in all important centres in the State, right from the time of inception, Mr Prabhakar said.

Going forward, the company planned to take up outbound packages and documents in the next phase of expansion. These, along with the fashion sector, auto parts and IT, were seen as growth areas for express parcel service companies in India.

Apart from Global Positioning System, XPS laid much store on the track and trace facility employed on its Web site for the smooth conduct of fleet operations. Mobile phones have been provided to the crew of all distribution vehicles.

The company did not diversify into related sectors, and had chosen to specialise in the core business of distribution for the time being, Mr Prabhakar said.

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