Thursday, January 30, 2014

Weekly Update and Musings on UPS and TNT Express

Well. I had not planned to stay in Alabama this long. The plan was to get back home for a couple of meetings, take care of Major Tom, file my taxes, clean the house, do a bit of Ti work etc. etc. etc. However. Yes, it snowed in Atlanta as the world knows by now. Gridlock on the roads and children spending the night at schools. It was so sad watching the news. However, there were quite a number of reports of neighbors and strangers helping each other - that's the way it should be - we as a society need to be doing more of that.

This week I've spent time on a couple of customer requests, some consultancy projects, work on two of our upcoming reports and 3 briefs for this week's e-newsletters.

Next week is an extra special week - Monday marks my third year with being with Ti. It's had its ups and downs but that's just the way life is. I must admit, though, this is the closest I've come to my "perfect job" - researching, writing and talking to folks around the world on neat topics.  So, thank you Ti for giving me this great opportunity!

So, besides next week being extra special, I will also be jumping into the Global Healthcare Logistics report even further. This is a topic I really enjoy so I'm particularly excited about this report.

Finally, musings for the week. Last week's Amazon musings was surprisingly very popular. Thank you! I figured I would try to incorporate more of this type of thing in the weekly update.

This week - TNT Express and UPS. No, they are not planning a new merger but rather, TNT Express announced today plans to keep its Brazilian operations instead of selling it. An interesting move. Why? Is it redefining its strategy it laid at last year? Or is it because it can't find a suitable buyer? According to its press release, talks with a potential buyer failed because an agreement over price could not be reached but the unit appears to have also made a turnaround and is generating revenue. I don't know. It seems that TNT Express is grasping for straws. I hope I'm wrong. However, there is interest in Brazil but it's such a tough market to break into, particularly for a "foreign" company. If you remember, FedEx acquired Rapidao Cometa Logistica e Transportes SA in 2012.  I'm not sure how that is doing, anyone care to share thoughts on that?

Also today, UPS announced their much anticipated quarterly earnings. A separate blog post was written on the earnings. Overall, it wasn't too terribly bad. The International Package division seems to be doing well and surprisingly it's still Europe, not Asia, that's leading the increase. It makes me wonder though what is going on in its Asian operations? As for the Supply Chain & Freight division, I'll leave that be for now. I have thoughts but prefer to hold off and instead, observe and fingers crossed for improvements.  For the Domestic Package division, management noted areas it was going to focus on in order to be prepared for the 2014 Peak Season. It's a good start and one in which the company appears receptive to creative change.

So, with that, I'll end and wish you all a happy weekend and a wonderful week ahead!

Thanks for taking time to read the blog.

Take care,