An installation of component-based business software is set to yield TNT Post Group up to £10m in cost savings by the end of 2001.
TNT Post Group (TPG), the express delivery and logistics service which operates in more than 200 countries worldwide, has developed 100 component-based products for its customers to use over the Internet or from their local PCs.
Unlike traditional software products, component-based development (CBD) software is broken down into smaller standalone elements, which can be re-used in other business models.
The CBD software - currently used by over 100,000 customers worldwide - includes a track and trace facility and a pricing module. It has slashed the cost of deploying and upgrading software to customers and reduced the number of software queries to TPG call centres, according to Warwickshire-based TPG Information Systems.
TPG estimates that the component-based software will reduce its software deployment costs by 5% across its call centres worldwide, by the end of the year.
And this cost saving will rise to 30% as more customers take advantage of the CBD-based products and services. Most of the services are free for customers using TPG.
The cost of rolling out and upgrading the CBD software in its I.Solutions product range will also fall by 90% by the end of nextyear, TPG have predicted. The overall cost savings are expected to be around £10m by the end of next year.
The CBD software - based on three main product ranges - is stored on a central library, which sits on a TPG server and repository. The components are sent to the customers through an IP-based network.
The initial £100,000 CBD investment was developed over eight weeks in 1998 by an in-house department within TPG Information Systems. The TPG team used software tools by Princeton Softech.