Nationwide Express eyes FY16 turnaround

SHAH ALAM: Logistics solutions provider Nationwide Express Courier Services Bhd aims to return to the black for the financial year ending March 31, 2016 (FY16), driven by improved delivery and service standards, as well as its pharmaceutical dedicated delivery (PDD) and e-commerce solutions.
“We are striving towards turning around the company, where since the last two years we have improved dramatically. Hopefully this coming financial year ending 2016, we will start making a profit so that we can share it with our employees and shareholders,” its managing director Rozilawati Basir told reporters after its AGM here on Friday.
Nationwide Express’ net loss shrank to RM35,000 for the first quarter ended June 30, 2015, from RM209,000 in the same quarter last year, while revenue was slightly down by 2% to RM23.23 million, compared with RM23.66 million previously, mainly due to lower revenue contributed by the courier segment.
On the strategy to turn the company around, Rozilawati said the company will focus on improving its employees’ productivity and efficiency in order to have a better delivery and services standards.
The company currently handles more than 50,000 packages every day and is capable of handling a maximum of 70,000 packages daily.
With improvements to its handling facilities, Rozilawati said, Nationwide Express is targeting to handle more than 70,000 packages every day.
“It is getting there, but it is increasing slowly. We don’t want to have a sudden surge when our people are not ready (to handle it). We want to prepare our people so that they know how to handle the items,” she added, noting that the company has about 1,500 employees currently.
In addition, Rozilawati said, the company will focus on its delivery solutions for pharmaceuticals, known as PDD, as well as its e-commerce solutions, which are contributing significantly to the company’s profit.
The company has 30 air-conditioned trucks.
Rozilawati said Nationwide Express is servicing clients from pharmaceuticals, banking and financial sectors, which form the bulk of its customer base.
The company provides express courier services, trucking services, freight forwarding services, customised logistics services, mailroom management services and warehousing. Its courier business contributes about 80% to revenue, while the logistics, freight forwarding and mailroom management businesses contribute the rest.