BAX Global. From Shanghai to Seattle and São Paolo to Sarajevo, BAX Global’s logistics and supply chain solutions for today’s international marketplace are essential for the giants in industry — and are just as important for smaller growing companies who need more than freight transportation.
The business model diversification that BAX Global began several years ago has broadened it from a traditional asset-based freight company to a leading global supply chain management and multi-modal transportation firm, offering logistics solutions for business-to-business shippers. Today BAX is a $2.4 billion global enterprise with an integrated network supported by nearly 500 offices in 133 countries.
Building on Strong Presence in Asia-Pacific
BAX Global has a leading presence as a provider of third-party logistics (3PL) services in the fast-growing Asia-Pacific market, an international hub for manufacturing.
A key to BAX Global’s success is developing tailored solutions that help companies run their businesses better. In 2004, BAX Global was selected as the sole 3PL provider to support the major business expansion of the semiconductor division of Samsung Electronics Co., Ltd., a core division of the Samsung Corporation. The appointment of BAX to provide logistics and transportation services is the result of a global streamlining program at Samsung dubbed the “1C1B” – One Contact One Bill program. Under this exclusive new contract handled by BAX’s network of Asia-Pacific offices, Samsung consolidated business previously handled by nine 3PLs in North Asia and two major 3PLs in Southeast Asia.
International revenues for BAX Global grew by 24% in 2004, due to even stronger growth in Asia-Pacific. All major markets in the region, particularly Hong Kong as the strategic gateway to China, contributed to the excellent growth and BAX Global continued to expand in line with increasing market demand. New subsidiaries were formed in Guangzhou and Shanghai, two important manufacturing centers. In addition, BAX became the first major logistics company to set up a warehousing business in a new category called a “type B bonded logistics center.”
Leveraging BAX Global’s Integrated North American Network
About 48% of BAX Global’s business is derived from the Americas, predominantly the U.S. In 2004, an improving U.S. economy led to increased shipping volumes, higher export activity and major new business wins, helping the region to profitability.
In the U.S., BAX Global’s wholesale airport-to-airport service started in mid-2003 – BAX Forwarder Network – filled a niche and grew rapidly. Within North America, BAXSaver®, a time-definite alternative for less than truckload service, generated its highest revenue to date. Building on its reputation for service, BAX enhanced its central customer support with dedicated experts to manage multinational customers. A new centralized sales organization was established, handling direct sales to smaller shippers, efficiently expanding BAX’s market reach.
Driving Solutions with Technology
Increasingly, customers look to BAX to handle not only the movement and management of goods, but also to facilitate the process with technology-enabled tools that make administration, from scheduling to tracking, easier and more efficient.
To facilitate imports and exports, BAX enhanced its integrated ocean capabilities by adding a web-based Cargo Management Service and expanding real-time tracking of ocean shipments Intra-Asia and from Asia to North America. This service enables BAX customers to manage the complexities and demands of sourcing from Asia-Pacific suppliers.
Customer usage of secure web-based applications increased, particularly in shipment tracking. BAXTRAXSM grew to 2.9 million web tracking transactions, which reduced costs for customer service calls. BAX continued to enhance and add tools in 2004 to its MyBAX extranet, expanding ocean tracking capabilities and offering online customs brokerage visibility for U.S. importers. Functionality was added for Forwarder Network customers too, including tools for booking, shipment tracking and reporting.
Managing for Growth in Europe
Already a major player in the European market, BAX added two logistics facilities in 2004 and has additional fulfillment centers planned for 2005 to support growth in supply chain management in the region.
BAX was awarded a multi-year worldwide transportation and logistics management services contract from Raytheon Aircraft Company for its manufacturing-related ocean inbound and outbound cargo. Specialized ocean containers are used for shipping Raytheon’s aircraft fuselage and wings from the United Kingdom to Kansas. Additionally, BAX is coordinating Raytheon’s inbound air transportation of parts and products to support manufacturing and parts replenishment for aircraft maintenance.
Growth Opportunities in an Expanding Market
In the next five years the logistics industry is projected to grow at a rate of 15-20% per year, according to a JP Morgan survey.* In a marketplace without dominant leaders, BAX Global plans to create an advantage by focusing on business enterprise logistics solutions in a repeatable model. It plans to provide mid-size companies the same tools as those developed for multinational customers, all backed by BAX Global’s outstanding service levels. In 2005 BAX Global is positioned to further grow in the rapidly expanding Asian marketplace and to seize opportunities in the improving U.S. and European economies.
Air Transport International L.L.C.
Air Transport International L.L.C. (ATI), a U.S. airline headquartered in Little Rock, Arkansas, is licensed by the U.S. Federal Aviation Administration and the U.S. Department of Transportation to conduct worldwide cargo and passenger operations.
ATI offers a full range of contract and charter services to air cargo forwarders and brokers, other airlines, major corporations, government and military agencies and other customers with special requirements. ATI’s fleet of re-engined DC8 - 70 freighters provides a significant portion of scheduled lift for BAX Global’s U.S. network. ATI also operates a fleet of DC8 “Combi” aircraft, which carry 32 passengers in addition to cargo.
ATI’s operations include diverse activities such as movement of thoroughbred racehorses and rare animals, transportation of music and stage shows and scheduled flights under contract to the U.S. Government. In early 2005, ATI flew relief supplies to Malaysia, Sri Lanka and Myanmar for victims of the tsunami.
ATI manages its worldwide activities 24 hours a day, 365 days a year with a team of 575 employees dedicated to safety, service, efficiency and value.
* JP Morgan Transportation Outsourcing Survey – December 27, 2004, page 9
Critical to BAX Global’s selection to manage Samsung Electronics’ complex logistics requirements was the ability to meet and exceed stringent requirements for security, warehousing, logistics infrastructure and IT capabilities.
BAX Global offers complete ocean freight logistics around the world. Through its Cargo Management Service that provides global ocean freight tracking and reporting capabilities, BAX makes transfers through complex ports such as Shanghai easier to trace.