Panalpina sees big savings from port centric distribution

The client previously managed its own supply chain once product arrived at the UK port of entry; however this was proving to be complex and costly. Now Panalpina has taken charge of the final stage of the journey using Import Services and TNT to provide two distinct services once Panalpina has moved product in sea containers, from origin to Southampton port.

Express carrier TNT collects store ready consignments from the containers at its Southampton port based depot, before putting them into its national distribution network in readiness for next day delivery to high street retailers throughout the UK.

Import Services takes the residual bulk stock into its adjacent distribution centre where storage, order processing, high volume pick/pack and distribution of replenishment orders are affected.

Robert Muir of Panalpina said: “This operation streamlines the supply chain for our clients who previously managed their own UK logistics by a fragmented process. By taking charge of the door to door process on behalf of our customers and using TNT and Import Services in Southampton, we provide an efficient solution, cutting up to one week out of the supply chain. This reduces both costs and cuts the road miles clocked up when shipping containers are moved inland and returned empty to the port.”

Distributing goods straight from the port of entry is becoming increasingly popular as it can offer cost and time savings. “We have developed port centric distribution successfully for our clients such as Flair and Carte Blanche in the toy and gift sector,” said Mike Thomas of Import Services. “Our clients demand swift movement of their products to market and retail trends also show smaller volume orders are required in store more frequently. The savings gained from port centric distribution simply outperforms traditional models of moving goods inland to distribution centers.

Mark Roscoe, depot general manager for TNT Express Services in Southampton, said the partnership produces optimum results because it harnesses the individual strengths of each player: “We use our strengths in next day express delivery and combine these with Import Services’ expertise in storage, order processing and fast response pick/pack. Our systems are integrated and information is managed seamlessly and on a global scale via Panalpina to its clients.”