BAX GlobalMeeting the Needs of a Changing MarketA major software firm requires global distribution of a new product in 90 days. An international producer of hospital products needs temperature-controlled inventory management throughout Southeast Asia. A global retailer of clothing and accessories is looking for inbound supply chain management from emerging third-world manufacturing facilities. Just a few years ago, these sophisticated requests were the exception; now they are the norm. As manufacturers and retailers expand into global markets and seek new international sourcing opportunities, BAX Global has expanded its portfolio of services, offering the full spectrum of supply chain management (SCM) and logistics services. BAX Global’s broader focus is in response to several major global trends driving and changing the transportation industry:
From Transportation to Supply Chain ManagementIn 2000, BAX Global saw that international transportation demand would grow much faster than the North American market, domestic shippers would continue to de-emphasize expedited transportation for deferred options, and the demand for SCM services would grow exceptionally quickly. The migration in North America from expedited transportation services to less costly deferred options has been driven by improved information resources, the availability of sophisticated decision support programs, and the global recession. Similar demands are shaping international markets. Outsourced manufacturing initiatives lead to increased demand for global import and export services. The international market has always used ocean as its primary transportation mode. Expedited carriers now have moved into the deferred end of the transportation spectrum offering time-definite surface and ocean options. Understanding these trends, BAX Global made changes to its business model. Over the last five years, BAX has transitioned from an expedited air cargo firm to a fully mode-neutral SCM company. Within North America, we established BAXSaver®, a time-definite, mode-neutral product that heavily utilizes a surface transportation network to move a majority of the freight. This product offers customers a lower-priced option, while allowing BAX Global to achieve an attractive margin. Today, BAX Global is recognized as a SCM and third-party logistics (3PL) provider offering a full complement of global transportation options. BAX Global was awarded the “2003 Quest for Quality” award in the 3PL category by Logistics Management magazine and was named in the “Top 100 3PLs” by Inbound Logistics magazine. These awards confirm BAX Global’s strengths, including local market expertise through 500 offices worldwide, cutting-edge technology services, and an experienced team. A Leader in Asia PacificBAX Global is especially strong in the Asia-Pacific market, thanks to a reputation for service quality and supply chain relationships with global customers. BAX Global is one of the top five 3PLs and cargo agents in Asia, and has 75 offices in 24 countries with over 2.7 million square feet of space in 25 regional logistics centers throughout Asia-Pacific. BAX Global has a strong footprint in the growth regions of China, where many global companies are opening production facilities, and a customer list focused in high-tech, consumer goods/fashion, healthcare and aerospace. Among its long-time accounts is a major fashion retailer, for which BAX Global established a regional supply chain control network, providing production tracking management and control, purchase order management, inventory status – even pick and pack for order consolidation. The customer benefits have included lower costs, better production control, and greater visibility of products at the point of consumption. Positioned for a Recovery in North AmericaIn the Americas region, market conditions were difficult throughout most of 2003. However, shipping activity picked up late in the year as the economy improved and BAX Global had several significant new business wins in the high-tech, computer and machinery industries. The North American supply chain management group reached critical mass in 2003, with strong revenue growth reflecting the addition of customers in the high-tech and consumer electronics markets. In mid-year, the company launched the BAX Forwarder Network, which targets potential customers in the freight forwarding, freight brokerage and international airline segments. This wholesale service provides guaranteed and standard airport-to-airport freight delivery, plus time-definite ground services. It gives forwarders a menu of options to meet their customers’ needs and allows BAX Global to participate in a $1.25 billion marketplace. Initial response has been excellent, with more than 40 new forwarder customers using the service in 2003. Expanding in Europe and Latin AmericaDuring 2003, BAX Global expanded its geographic coverage in Europe, adding offices in the Czech Republic and Greece. Today, the company has 19 logistics facilities within Europe. BAX Global also enhanced its European distribution product, with an expedited delivery option called EuroBAXFast. This service supports our expertise in SCM programs for customers in the healthcare, aerospace, high-tech, and automotive sectors. In Latin America, BAX is building its footprint through strategic affiliations with agents and opening new offices in markets important to our customers, including those in Argentina and Peru. Building Ocean Freight CapabilitiesRecently, BAX enhanced the ocean forwarding segment of its business with renewed sales initiatives, along with increased investments in the best people, information systems and infrastructure, to accelerate growth in this important part of the international market. This investment reflects our response to customers’ demand to increase our ocean forwarding expertise. Differentiation through Leading-edge TechnologyBAX Global uses its technological capabilities as a market differentiator. Once considered an added feature, electronic data interfaces are now essential to winning business and growing existing accounts. Supply chain programs are heavily dependent on information and electronic interface. BAX Global supports customers with 30,000 daily electronic data interface transactions and 2.4 million web-based shipment tracking transactions annually. The MyBAX extranet creates an online shipping resource for over 7,000 regular users where customers can book, track, or create custom reports 24/7 from virtually any spot on the globe. Web-enabled technology reduces costs for BAX Global and our customers, and makes it easy to do business with BAX Global. Positioning BAX in the Marketplace: 2004 and BeyondBAX Global will continue to focus on strengthening its market position in aerospace, automotive/heavy manufacturing, healthcare, high-tech and retail/consumer goods. BAX Global understands the unique needs in each of these segments and brings special value to its business relationships. The company has greatly enhanced its SCM skill sets worldwide to meet the strong growth it is experiencing and will continue to build on this strong platform. BAX will also focus on the $65 billion ocean-forwarding market, especially with end-to-end cargo management programs between Asia and the U.S. aimed at the retail segment. As economic activity increases in the U.S., BAX Global will continue to focus on superior service while pursuing further economies in its North American network. The BAXSuite domestic service portfolio will be enhanced with more surface options that will enable BAX to leverage additional import and export volumes over the network. |
BAX Global offers companies a wide array of comprehensive supply chain management solutions ranging from warehousing, inventory management and order fulfillment to transportation optimization and customs compliance. Shown here is a state-of-the-art “pick and pack” system for a leading global supplier of digital copiers and other document solutions. This system automates order processing, parts retrieval and order packing for shipment. 
Air Transport International L.L.C.
ATI’s daily operations include such diverse activities as the movement of thoroughbred racehorses from Europe and Asia to the U.S., field support of on-location movie productions, city-to-city transportation of touring music and stage shows, relocation of rare animals for aquariums and zoos, and scheduled flights under contract to the U.S. Government. In early 2004, ATI moved a group of rare endangered bongo antelope that were born in the U.S. back to their native Kenya. ATI is licensed by the U.S. Federal Aviation Administration and the U.S. Department of Transportation to conduct worldwide cargo and passenger operations. ATI manages its worldwide activities 24 hours a day, 365 days a year, from its Little Rock headquarters with a team of 500 dedicated employees for whom safety, service, efficiency and value are interwoven with all aspects of managing the airline.  
When Microsoft’s OEM Hardware Group needed an outsourced logistics solution for distributing products from multiple vendors to their customers worldwide, they chose BAX Global. BAX fast-tracked the opening of distribution hubs in Dallas, Sydney, Hong Kong and Ridderkirk using a common, interconnected information platform and common operating procedures to ensure uniformity of service levels. BAX saw the opportunity to also provide value-added services such as order fulfillment, inventory management, scrap and returns management in a virtual inventory environment. As a result of BAX’s successful management of this program Microsoft has extended its agreement with BAX for an additional two years. With Microsoft, BAX Global proved that excellent customer support and service has evolved to be a crucial competitive advantage. |
Air Transport International L.L.C. (ATI) is a U.S. airline headquartered in Little Rock, Arkansas. ATI offers a full range of worldwide contract and charter services to air cargo forwarders and brokers, other airlines, major corporations, petroleum services companies, government and military agencies and other customers with special requirements. ATI’s fleet of re-engined DC8 70-series jet freighters is a major provider of scheduled lift for BAX Global’s U.S. air network. These long-range, fuel-efficient aircraft are capable of global as well as domestic flights.