Sample Business Studies Paper on TNT Logistics Company

TNT

Historical Background

TNT is an international logistics company that has specialized in the transport of parcels, goods and containers across the globe. Currently, TNT can reach more than two hundred countries in the world. In more than 60 countries, TNT has established permanent operations on the ground. Ken Thomas, an Australian, under the name Thomas Nationwide Transport, established TNT after World War II in Australia. A couple of years later, the merger of Thomas’ company with Hungarians Peter Abeles and George Rockey’s Alltrans in 1967 formed the TNT limited company. Alltrans and TNT carried out the same activities: shipping containers and goods in their home countries and both shared the single goal of being able to ship all over Europe and the world. New Zealand and Australia were the main bases of operation in the first years. After the merger, shrewd management by Peter Abeles saw the company expand to over 170 countries with logistics being carried out by various means of transport: sea, air road and rail.

In its European takeover, the company established its fleet of airplanes to facilitate the delivery of luggage. The establishment of the first European overnight fleet flight service established TNT as one of the market leaders of its time.  TNT has undergone growth since becoming one of the world’s established international courier service providers. The headquarters of the company is currently in the Dutch town of Hoofddorp. In addition to offering freight and express delivery, TNT now offers charter airlines specialized for air ferrying of cargo. There are a number of business affiliations that TNT has been able to forge since its existence. GD Express Worldwide formed in 1992 with TNT being the biggest shareholder in the company. TNT was bought by KPN in 1996, forming a sub-branch called TNT NV, which has been carrying out the logistics part of the business.

Branches

TNT Express has many branches all over the world. Kenya, Egypt, Japan, Netherlands, Philippines, in the United Kingdom in a number of towns, Australia, New Zealand, the United States among other countries. There is plenty of manual labor required to handle the cargo about to leave and on arrival. The number of workers at each port is relatively high, ranging from 100-300 depending on the size of the particular port. The operations at the base range from handling the warehouse equipment, loading and unloading of the containers and keeping stock. In addition to that, taking mechanical care of the machines involved in the process and dispatch of certain orders to their specified destinations.

Employment Contract

For the regional head of the company, the annual salary was $250,000.00. The contract ran for three years from February 1, 2012 to February 1, 2015 with a further clause for renewal of a new contract. The work description was handling the operations of the port: taking care of the traffic and monetary outflow in and out of the company. The benefits for the job include a medical coverage (vision and dental) of $4000.00 per year. A one-time sign-on bonus of $50000.00 is payable to the regional head on the thirtieth day of their first month in office. Other benefits are eligible along the way regarding the performance of the company during the tenure of the manager. The salary is reviewed every six months with the potential of increase by about 20% if the business has recorded pre-agreed profit margins.

Upon the completion of the contract, if there will not be a renewal of the contract, the regional manager is eligible to a lump sum of $50000.00. If the manager terminates the contract without good reason, he or she will be required to refund the whole sum of the sign-on fee. A number of objectives between the company and the manager will be written down at the establishment of the employment contract. These objectives will determine the assessment report governing the tenure of the manager in the company. The income quoted at any instant of this letter is what is eligible after taxes.

Price Quotation

For the purposes of obtaining the price quotation for a 20-foot container, the website required more details about the package. All figures that have been used to represent the dimensions of the package are mandatory to obtain the package’s price quotations. The dimensions are in centimeters, so the length is converted into centimeters.

For a 50 by 40 by 20 cm parcel weighing 10 kilograms and comprising 12 units being shipped from United Arab Emirates to Abu Dhabi there are three price options depending on the mode of delivery. TNT offers diverse services at different price levels in transporting the product. The cheapest option, the 1200 Express, for a booking on 12 May 2015 at 1700 hrs. due for delivery on 15 May at 1200 hours costs 7841 UAE Dirhams. The next best option is the Express service; the delivery time is on 15 May 2015 at 1800 hours. The cost is 7759 AED. The economy Express will deliver the package on 20th May at 1800 hours for a fee of 8117 AED.

The terms and conditions of the shipment are as follows. From the TNT express website

  • All prices refer to services whereby the sender pays.
  • All prices are free of any taxes, duties or any associated government agency charges.
  • All prices are subject to change without prior notice.
  • All shipments will be subject to the variable fuel surcharges, for more information see TNT website ‘www.tnt.com’.
  • The delivery date and time may vary due to unforeseen transportation circumstances.
  • TNT’s standard terms and conditions apply to the delivery of all goods.

The actual transit time for your shipment is likely to be longer if the shipment is deemed by the destination customs authorities’ location authorities as having a high value. After choosing the mode of transport of the commodity, the customer is required to fill out a form containing their personal details and also giving the payment for the business transaction. After this, the package is delivered and approved for transport to the destination.

Legal Battle

One legal battle that TNT tussled over was with the German government regarding the enactment of new laws about wages. TNT had to contend with a new law in Germany that set forth a higher minimum wage per hour for all German postal workers. The new rate, 8-9.8 Euros per hour advocated for by the government was much higher than TNT’s proposal of 7.5 Euros. TNT went to protest the new rates in court and failure to win the case leaving the country was the only remaining option. TNT saw the new rates as favorable to their competitor, Deutsche Post, which was open to revising their minimum wage rates in compliance with the government. Deutsche Post is the biggest provider of postal services in Europe and Germany.

An agreement between the government and TNT has seen the company still in operation in the country to this day. TNT Post Germany is the name of TNT’s postal services in Germany. In 2014, TNT Post Germany changed their name to PostCon. PostCon merged all TNT’s domestic services under one name. The focus of the new company is the provision of commercial business-to-business mail.