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More space for more opportunities in Prague [Forwarder]


Panalpina has grown fast in Czechia the last few years. To keep pace with demand, the company decided to consolidate its three warehouses into one facility of almost 7000 m2 within the modern logistics center in Pavlov (Panattoni Park Prague Airport II), close to Vaclav Havel Airport Prague. Moving to this strategic location allows Panalpina to distribute shipments to customers across Europe and the globe more efficiently, thus facilitating Czech exports.

“Having everything in one place increases our efficiency and brings unprecedented flexibility and operational synergies. Now we have more dedicated space for value-added logistics services so that we can offer tailored solutions to our customers,” says Robert Sgariboldi, Panalpina’s country manager for Czechia and Slovakia.

Panalpina and the site’s developer, Panattoni Europe, invited customers and business partners to the opening ceremony in September 2017. Almost 200 people visited the new logistics center which offers value-added logistics services for multiple customers, including customs clearance for both imports and exports.

Panalpina’s air cargo volumes flown out of Prague airport regularly exceed 200 tons per month, putting the company among the top three Czech air freight forwarders according to IATA (International Air Transport Association) statistics. By far the highest volumes come from the automotive industry, with telecoms being second, and high-tech in third place.

Services such as pick and pack, labeling, quality inspection, stock level management with full inventory visibility have become standard, and Panalpina offers even more. When dispatching telecommunications infrastructure equipment for one of its customers, for example, Panalpina not only organizes on-site deliveries but also uploads the latest software. “We are growing rapidly, even more than expected, so we are already negotiating to extend the space we rent in order to cover all the future needs of our customers,” says Sgariboldi.

Posted at 21:03   パーマリンク


Kuehne + Nagel establishes global supply chain quality control solution for JD.com [Forwarder]

Drawing on its e-commerce fulfilment expertise, Kuehne + Nagel has partnered with JD.com, China’s largest retailer, to design a supply chain solution including quality control checks at origin. The technology-driven solution provides JD.com stock keeping unit (SKU) visibility over their in-bound supply chain before products are imported to China. The solution has been implemented within twelve months in an origin warehouse in Japan.

JD.com procures goods from global brands to support the growing demand from Chinese consumers for overseas products. Previously, goods were shipped directly from the brand manufacturers and inspected at destination warehouses in mainland China, but often products arrive damaged, expired or in incorrect quantities. To address these challenges, Kuehne + Nagel collaborated with JD.com to design a ‘Transfer Centre’ approach – a global supply chain solution which incorporates quality control checks at the consolidation warehouse at origin, prior to shipment to China.

The Transfer Centre covers various activities, including rigorous cargo inspection, inventory count and pallet packaging check, all supported by state-of-the-art information systems integrated with JD.com’s warehouse management system. SKU level capture of inventory at origin gives JD.com greater end-to-end control over supply chain inventory. The Transfer Centre at origin setup also allowed JD.com to maintain closer relationships with brands, benefiting JD.com’s consumers with improved product availability and guaranteed quality.

Han Liu, General Manager of International Supply Chain, JD Logistics said: “We are pleased with the new Transfer Centre Kuehne + Nagel has designed for JD.com and the successful implementation of the project in Japan. We are confident that the improved supply chain will provide our brand partners with an even more reliable e-commerce channel to market while further assuring that our users always receive goods of the highest quality when shopping on JD.com”.

Wong Siew Loong, President North Asia Pacific, Kuehne + Nagel said: “Kuehne + Nagel partnered with JD.com to set up a solution improving the integrity of their end-to-end supply chain. Within a challenging environment we were able to develop a blueprint for JD.com’s Transfer Centre approach and implement this project in Japan. This collaboration is in line with Kuehne + Nagel’s focus on supporting the supply chain needs of China’s e-commerce leaders. We look forward to working on the establishment of other Transfer Centres across the globe in the near future”.

Posted at 12:26   パーマリンク


Panalpina Group profitability continues to increase in 2017 [Forwarder]

In the first nine months of 2017, international freight forwarding and logistics company Panalpina grew volumes in both Air and Ocean Freight compared to the same period of last year. As the year progressed, group gross profit as well as EBIT increased with every quarter. Year-on-year, Panalpina’s reported EBIT increased from CHF 67.5 million (adjusted YTD 2016: CHF 93.6 million) to CHF 72.1 million and the reported consolidated profit increased from CHF 46.5 million (adjusted YTD 2016: CHF 72.6 million) to CHF 48.4 million.

“Nine months into the year, Air Freight and Logistics are well under way and showing continued solid performance. In Ocean Freight, we are growing in line with the market but due to continued low margins and productivity levels, the profitability does not meet a satisfactory level,” says Panalpina CEO Stefan Karlen. “Seeing the challenges particularly in Ocean Freight, I am pleased to say that preparations for the next big roll-out of our new operating system SAP TM in the U.S. are progressing as planned.”

Panalpina Group: Results for the first nine months of 2017

(CHF million)
YTD 2017 YTD 2016
Net forwarding revenue
Gross profit 1,024.8 1,091.7
EBITDA reported 103.9
EBIT reported 72.1 67.5
Consolidated profit reported 48.4 46.5
Non-recurring items - (26.1)
EBITDA adjusted 103.9 130.7
EBIT adjusted 72.1 93.6
Consolidated profit adjusted 48.4 72.6
Higher EBIT and consolidated profit

Group gross profit decreased 6% to CHF 1,024.8 million in the first nine months of 2017 (YTD 2016: CHF 1,091.7 million), while total operating expenses decreased 4% to CHF 920.9 million (YTD 2016: CHF 961.0 million). Reported EBIT and consolidated profit increased year-on-year (decreased when compared to respective 2016 adjusted figures). Reported EBIT reached CHF 72.1 million compared to CHF 67.5 million a year before (adjusted YTD 2016: CHF 93.6 million) and the EBIT-to-gross- profit margin stood at 7.0% up from 6.2% (adjusted YTD 2016: 8.6%). The consolidated profit increased from CHF 46.5 million (adjusted YTD 2016: CHF 72.6 million) to CHF 48.4 million.

Air Freight

Panalpina’s Air Freight volumes increased 8% in the first nine months of 2017, broadly in line with market growth. From January to September, gross profit, unit profitability and EBIT in Air Freight increased with every quarter. Compared to the same period of last year, gross profit per ton decreased 7% to CHF 632 (YTD 2016: CHF 678), resulting in a gross profit of CHF 456.0 million (YTD 2016: CHF 453.4 million). Reported EBIT in Air Freight increased from CHF 60.0 million (adjusted YTD 2016: CHF 72.6 million) to CHF 69.4 million. The EBIT-to-gross-profit margin for the first nine months of 2017 came in at 15.2% compared to 13.2% (adjusted YTD 2016: 16.0%) a year before.

Ocean Freight

Panalpina’s Ocean Freight volumes from January to September 2017 increased 4% year-on-year, in line with estimated market growth of equally 4%. Gross profit per TEU decreased 10% to CHF 283 (YTD 2016: CHF 314), resulting in a gross profit of CHF 323.4 million (YTD 2016:
CHF 345.0 million). Higher volumes than last year were processed at lower margin and with increased costs which resulted in an EBIT loss in the third quarter. For the first nine months, Ocean Freight posted an EBIT loss of CHF 5.5 million, down from a profit of CHF 6.3 million in 2016 (adjusted YTD 2016: CHF 16.0 million).


In Logistics, gross profit decreased 16% to CHF 245.4 million year-on-year (YTD 2016:
CHF 293.3 million), but has stabilized throughout 2017. Logistics is now sustainably profitable, posting an EBIT of CHF 8.1 million for the first nine months of 2017, compared to CHF 1.2 million (adjusted YTD 2016: CHF 5.0 million) for the same period last year.


“We are well-prepared for another strong peak season in Air Freight, however it remains to be seen how dynamic the carrier market will be this year,” says Karlen. “Low gross profit margins and low productivity resulting from the inefficiency of our legacy system will continue to hamper us in Ocean Freight, where for the time being we can only grow moderately to avoid incremental costs. It is therefore encouraging that our new operating system SAP TM was successfully implemented in Germany and that the roll-out in the U.S. will commence this year. In Logistics, the focus clearly lies on top-line growth and we will achieve this in the mid to long term by expanding our offering of value-added services.”

Posted at 14:57   パーマリンク

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