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Panalpina centralizes and expands Global Supply Chain Solutions offering [Forwarder]


As part of its growth strategy, third-party logistics provider Panalpina has centralized its Supply Chain Solutions offering with plans to expand the existing team of experts and further invest in technology and infrastructure. Panalpina’s customers from across multiple industries will benefit from solutions that manage their supply chains from end-to-end and offer greater flexibility, customization, and visibility.

The end-to-end management and optimization of supply chains is a business segment where Panalpina sees important growth opportunities. To bolster its offering in this area, Panalpina has united the company’s supply chain experts under one centrally organized entity called Supply Chain Solutions and will expand the global and regional teams in the coming months. The new entity is led by Hans Elmegaard in his role as global head of Supply Chain Solutions, reporting to Karl Weyeneth, chief commercial officer, who is a member of the executive board.

“Our ambition is to become a top global player in supply chain management. The new organizational structure allows us to be even more customer-centric and better seize the many untapped opportunities that lie in the provision of end-to-end solutions across key industries,” says Weyeneth.

Elmegaard explains: “There are two fundamental ways companies look at their supply chains: Some companies regard them as a pure cost factor, other companies think of them as a strategic enabler for their business. Our end-to-end solutions are geared towards the second. Not only do we strive to build more efficient and cost-effective supply chains for our customers, but supply chains that actually support their business models. It’s about turning supply chains into a competitive advantage.”

Panalpina’s Supply Chain Solutions experts are represented on the global and regional level in their capacity as solution developers, supply chain analysts and as solution designers and engineers. The solutions they offer go beyond transportation services to additionally cover all supply chain services at origin and destination. They are customized, offer a high visibility (on SKU level) and often include one or more of the following services: cargo consolidation and de-consolidation, vendor and carrier management, inventory and purchase order management as well as the optimization of freight forwarding services and logistics set-ups. “We are dedicating significant additional resources to this offering and investing in people, IT and infrastructure,” says Weyeneth.

The overall goal of any supply chain solution for a customer is to have the right inventory at the right place at the right time and, most importantly, at the right levels. Too much inventory ties up working capital and raises the risk of obsolescence. Too little inventory leads to stock-outs, missed sales and disappointed end consumers.

“The mode of transport to get the job done is secondary; it should not be the first question to ask. The question is much more: What is our customer’s business objective?” says Elmegaard. “It is about understanding our customers in depth. We need to have value-oriented dialogues that go beyond rates, transit times and volumes and build mutually beneficial partnerships.”

Posted at 23:06   パーマリンク

Kuehne + Nagel opens regional Integrated Logistics Control Centre in Shanghai [Forwarder]

In the presence of key customers, Kuehne + Nagel recently inaugurated its first regional Logistics Control Centre for Integrated Logistics in North Asia Pacific. The new hub will drive synergies to meet the growing demand for end-to-end solutions from a single source.

The Logistics Control Centre (LCC) in Shanghai provides a wide range of managed services addressing the fulfilment of customers’ orders across international supply chains. In order to simplify complexity and to meet customers’ requirements for lean and demand-driven supply chains, dedicated teams handle contract and transportation management including logistics partner management in a shared environment. In addition, customer data analytics and continuous improvement methodologies are important activities.

Kuehne + Nagel’s Integrated Logistics’ ControlTower services in North Asia Pacific are of particular interest for customers of the automotive, consumer, high-tech, industrial and pharma & healthcare industries.

Siewloong Wong, President Kuehne + Nagel North Asia Pacific: “The new LCC in Shanghai is in line with the Group’s strategic approach to globally provide integrated logistics services and to expand Kuehne + Nagel’s end-to-end offering also in North Asia Pacific. With the enhanced set-up and know-how bundled in expert teams, we will be able to even better serve our customers by developing, implementing and operating scalable solutions for greater flexibility and speed, thus improving supply chain performance.”

Tobias Jerschke, Global Head of Integrated Logistics: “The Kuehne + Nagel Logistics Control Centre in Shanghai is the eighth of its kind in the world. The footprint extension of our LCC is a clear answer to the growing demand of our Asian customers to manage global supply chains flows.”

Posted at 23:05   パーマリンク


Panalpina 2017, the year when air freight took to new heights [Forwarder]


2017 has been an exceptional year for air freight. The market has developed a new dynamic characterized by tight transport capacity and sustained high freight rates. Summer was anything but the usual calm and Panalpina’s early prediction of a very busy peak season in the last quarter turned out to be correct. In October, Panalpina recorded its highest ever monthly Air Freight volumes, a record that was beaten only one month later in November, as the latest figures show.

Speaking to Lloyd’s Loading List last month, Panalpina’s global head of Air Freight, Lucas Kuehner, shared his insights into the current state of the air freight market, touching upon such diverse topics as capacity scarcity (vs. capacity shortage), Panalpina’s Charter Network, trade lane growth, European airports at their limit, and ‘heavy’ air freight being pushed aside by e-commerce.

Trade journalists Stuart Todd turned the conversation with Kuehner into three articles that were published on Lloyd’s Loading List in late November and early December:

E-commerce ‘a challenge and opportunity for air freight’ (December 4, 2017)

“E-commerce is certainly swelling peak season demand this year and accommodating it into airborne trade flows, week in week out, is one of the major challenges facing the industry today.”

Peak season air freight rates set to remain high (November 29, 2017)

“There’s no reason why the current challenges will go away. I think the air cargo community − shippers, airlines, forwarders − have to get used to a market environment where capacity is scarce and at its limit, at least for several more weeks, probably months.”

Air freight capacity ‘scarcity’ continuing(November 27, 2017)

“The available aircraft are there and being deployed and flying record hours to meet demand. But the entire system is reaching its ‘natural’ limits. Demand is overwhelming right now and freighter and belly capacity is being thrown in from all sides and aircraft, including our own, are clocking up extremely high flying hours.”

Kuehner also brought up the unsatisfactory situation at Europe’s airports, where ground handling infrastructure is “bursting at the seams”, especially in Frankfurt, London Heathrow and Luxembourg.

Peak season update

“At least there seem to be no new strikes looming in Frankfurt,” says Kuehner. As for the peak season, there is no sign of a slow-down as yet. Between Asia and Europe, and between Asia and the Americas, demand for air freight is still very high in both directions. Outbound Europe to Asia and the Americas in particular, demand is enormously high and there is hardly any capacity left. The situation is similar for flights to Latin America from Asia, where capacity is almost not available anymore. “On a first-come, first-served basis, we still offer express solutions, of course. The only route where things have slowed down a little is on the Transpacific, from Asia to the US, but it is too early to tell. In any case, we remain alert and agile, just as we have all year through,” says Kuehner.

Posted at 23:47   パーマリンク


Hapag-Lloyd and Kuehne + Nagel agree to 17 percent CO2 reduction by 2020 [Forwarder]

Hapag-Lloyd and Kuehne + Nagel have committed themselves to significantly reduce carbon dioxide emissions in their common container-transport activities. The Carbon and Sustainability Pact that both companies concluded in the last few days calls for a 17 percent reduction in CO2 emissions per container moved by Hapag-Lloyd by 2020 compared to 2017. The agreement between the largest seafreight logistics company and one of the largest liner shipping companies in the world also allows for potential for additional reductions on selected routes.

In the document, both companies clearly state that they “want to take advantage of this unique opportunity to influence the logistics sector.”

In doing so, the two companies particularly wish to give Kuehne + Nagel customers options based on transparent data. Hapag-Lloyd will thus make it possible for Kuehne + Nagel to use information about the CO2 emissions of the ships in Hapag-Lloyd’s fleet, which has previously been verified by the independent Clean Cargo Working Group (CCWG), in its communications with customers.

With their Carbon and Sustainability Pact, both companies have also committed themselves to a series of additional actions to better protect the environment. For example, there are plans to optimize the movement of empty containers as well as to identify alternatives to truck transports using ships or trains. In addition, there are also plans to use the most modern and eco-friendly reefer equipment whenever possible as well as to use containers with steel rather than wooden floors where appropriate.

Posted at 22:28   パーマリンク

Panalpina A taste for less waste [Forwarder]

In today’s world, the purchase of a product often marks the end of a supply chain. But the end point has to change, and change fast, as consumers question the traditional linear process of “take, make, dispose”. More and more consumers are demanding that manufacturers and retailers ensure that the products they buy do not end up as waste. “Waste can be defined as anything that has no ultimate liable owner and no economic value,” says Geneva-based professor Walter Stahel, one of the leading thinkers on the circular economy. In the circular economy, products and services are redesigned to eliminate waste and extend the life of physical assets through reuse, remanufacturing and recycling – and logistics companies have an important role to play in managing the life cycle of these assets.

New research into the circular economy to be presented in May

To this end, Panalpina and its research partner, Cardiff University, together with a number of other leading industry partners, have been awarded a substantial research grant from the EPSRC (Engineering and Physical Sciences Research Council) for additional fundamental research into the supply chain implications that arise from the circular economy. The research is being carried out at the Panalpina Centre for Manufacturing and Logistics Research.

“The take-make-dispose supply chains of the past are morphing into the distributed, circular and sustainable supply chains of the future,” explains Mike Wilson, Panalpina’s global head of Logistics and Manufacturing. “But the transition to the circular economy brings challenges to traditional manufacturing and retail supply chains and the grant has allowed us to intensify our research and help our customers address these challenges.”

Dr. Borja Ponte Blanco, who recently published a paper on the topic (more in a later post), is leading the new research and in May 2018, Cardiff University and Panalpina will present the early findings from it at the CIRP Conference on Manufacturing Systems in Stockholm, Sweden.

New member of the European Remanufacturing Council

In another move that underpins the company’s thought leadership in the area of circular supply chains, Panalpina has also become the first logistics company to join the European Remanufacturing Council. The Council represents companies from all sectors intent on extending product life cycles through remanufacturing. The aim of the Council is to grow remanufacturing sales in Europe from €30 billion to €100 billion by 2030.

“There is a new generation of consumers that questions why waste is regarded as normal and Panalpina provides the enabling services for a global circular economy that reduces such waste,” says David Fitzsimons, director of the European Remanufacturing Council. “We are delighted to welcome Panalpina as a new important Council member. The company’s contribution to the research agenda in remanufacturing is already significant and its foresight in this domain is impressive.”

As the circular economy grows more in importance, Panalpina is seeing increased demand for reverse logistics, which includes screening and repairs for its customers’ products. “We are well aware of the challenges that retailers and manufacturers are faced with as they shift towards circular supply chains, and with our global network and remanufacturing capabilities we are in a position to help them succeed in the transition,” says Wilson.

Extended Product Life Cycle Management

Panalpina provides an Extended Product Life Cycle Management service, which allows its customers to return, screen and repair products anywhere in the world. The company uses its global freight forwarding network, its logistics and manufacturing facilities and a selected network of suppliers to provide its customers with a range of circular supply chain services, including pickup and return, screening (in-house), remanufacturing (refurbishment and repair), reselling and recycling.

“The circular economy demands a new mindset and behavior from all stakeholders – consumers, politicians, manufacturers as well as third-party logistics providers. Our strategy is to enable the circular economy by providing in-house and subcontracted services through which our customers can manage their assets more efficiently. We look forward to playing our part and working with all our partners as we continue to shape the future of supply chains.”

Posted at 22:28   パーマリンク

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