KOM International Celebrates 50 Years
KOM International was founded in 1963 by founder Sydney Kom, who aspired to help North American retail grocery firms achieve excellence in their warehouses. On July 18, 2012, they celebrated 50 years in business.
Today, KOM Systems offers custom-designed cross-platform system applications, monitors and controls critical variables like logistics surveys, evaluation of supply chain impacts on the bottom line, the evaluation of distribution operations to improve service and efficiency, distribution center design and layout, reset and optimization of existing distribution facilities, implementation services, inventory management, and more. They service customers making from $50 million to $200 billion in sales, some of which have been with the company for decades.
Additionally, owner Sydney Kom invented the drive-in rack, and later rack specs, which became and remain industry standard equipment to help improve employee ergonomics and reduce employee injury rates.
KOM has been involved in a variety of projects over its 50 years. Currently, the company is working with a grocery retailer with $2.5 billion in sales in the Northeastern U.S. to determine distribution needs and opportunities. The company has designed consumer goods and food items distribution centers in South Korea, Okina2a and Germany for a division of the U.S. government. KOM’s website boasts “cost reductions of 5-20 percent” for even “champions of industry.”
In June of 2012, KOM hosted its 29th-annual conference, which was attended by 25 distribution companies including Nestle, Kraft Foods, Price Chopper, and Coca Cola and more – companies totaling $155 billion in revenue.
Cainiao Network Launches Customer-Centric Logistics
As the logistics division of the Alibaba Group, Cainiao Smart Logistics Network has decided to provide its Southeast Asian customers with unsurpassed service during its annual shopping festival. Based on customer feedback surveys, the company will expand its real-time customer service support and speed up delivery times. ‘By expanding and deepening our services, we aim to provide a stronger logistics infrastructure that can bolster the booming eCommerce sector, support merchants’ expansion into new markets and diversify retail options for consumers’, said Chris Fan, Head of Cross-Border, Singapore, Cainiao Network.
Who Is Cainiao?
According to TIME Magazine, Cainiao ‘is far from a typical logistics firm’. The company controls an open platform that allows it to collaborate with 3,000 logistics partners and 3 million couriers. This means that merchants can choose the least expensive and most efficient shipping options, based on Cainiao’s real-time logistics analytics. The company’s goal is to ship packages anywhere in the world in under 72 hours—and for less than US$3.00.
For countless small business owners around the world, from coffee-growers to textile-weavers, this could change everything. Usually, it costs about US$100 to ship a DHL envelope from Shanghai to London in five days. Cainiao aims to change that. Said its CEO Wan Lin: ‘The biggest barrier to globalisation is logistics’.
What’s Part of the Upgrade?
Throughout the Tmall festival, Cainiao’s logistics upgrade will be divided into four critical segments:
- Real-time customer service support. Cainiao has launched a direct WhatsApp channel for customers to receive logistics updates and ask questions.
- Expansion of air freight parcel size and weight limits. Packages can now be up to 30 kilograms or 1-metre x 1.6 meters to help ship large items such as furniture.
- Daily air and sea freight connections. Shipping frequency will almost double to seven times weekly to maintain resilience and efficiency.
- Compensation for lost or damaged packages. Customers will be reimbursed up to RMB 2,000 (US$311).
Where is the Company Headed?
From June 1st to June 20th, the finale of Tmall, Cainiao will ensure that its customers feel confident in the company’s ability to deliver their packages. Despite global shipping delays due to COVID, the show will go on. Said Fan: ‘This series of customer-centric logistics upgrades reaffirms our goal of pursuing value-added services to enhance customers’ shopping experience while mitigating challenges posed by external factors’.
Furthermore, Cainiao has recently expanded its Southeast Asian operations, achieving revenue growth of 68% year-over-year. In Malaysia, the logistics operation has partnered with BEST Inc. and Yunda; in Singapore, the company has partnered with Roadbull, Park & Parcel, and the Singapore Post. And if its recent measures help retain and grow its customer base, the company will be well-poised to lead the industry in resilient and customer-centric global logistics. ‘COVID-19 made everyone realise how important the logistics infrastructure backbone is’, said Wan. ‘And it gave us a peek at what Cainiao should look like in three years’.