Tag: Panalpina

Port centric logistics delivers retail supply chain advantages

Panalpina has provided a port centric solution for its major home wares retail clients by outsourcing to TNT and Import Services

Panalpina’s clients previously managed their own supply chain once product arrived at the UK port of entry; however this was proving to be unnecessarily complex and costly. In consultation with its clients Panalpina has taken charge of the final stage of the journey and, with its partner’s expertise, is producing astonishing results.

Import Services and TNT provide two distinct services once Panalpina has moved product in sea containers, from origin to Southampton port.

TNT, the UK’s leading business to business express delivery service specialists, 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 effected.

Portcentric is the distribution to an end recipient straight from the port. A distribution model which is fast becoming the smart option as it offers impressive cost and time savings as well as attractive green credentials.

Portcentric distribution takes at least 10 percent of time out of the supply chain from the Far East and in Panalpina’s experience a significant percentage of cost. This saving plus a reduced carbon footprint, adds up to an exciting proposition which is starting to grab the attention of UK industry.

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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.

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.

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DHL rivals in the USA show no appetite for owning aircraft

DHL added another airline to its line-up this spring with the acquisition of a stake in Astar Air Cargo, but the other mega-forwarders have no interest in owning cargo aircraft, despite a penchant for dedicated freighter-cargo flights.

DHL’s appetite for cargo airlines suffered a setback in July when ABX Air, the erstwhile freighter division of Airborne Express spun off after the integrator’s acquisition by DHL, rebuffed a takeover offer from Astar Air Cargo, the former DHL Airways. A marriage between the two would have combined the two US cargo carriers that make most of their business moving traffic for DHL. The integrator had acquired a 49 percent stake in Astar in early June along with a 24.9 percent voting interest, the maximum position in US airlines allowed to non-US entities.

DHL’s express business in the US has suffered in the wake of the integration of its air network into a single hub and is not expected to produce black figures before 2009. Nevertheless, the buy into Astar did not surprise industry observers.

The Astar buy-in followed DHL’s acquisition of a 49 percent stake in Polar Air Cargo last year, which included a 20-year block space agreement giving the integrator guaranteed lift on Polar’s transpacific flights. For intra-Asia traffic, DHL has permanent lift through its stake in Air Hong Kong and the carrier’s A300F operations in the region.

These deals are fuelled by the logistics giant’s express business, but they also drop fixed capacity into the lap of DHL Global Forwarding.

The other global mega-forwarders like Schenker, Kuehne + Nagel or Panalpina, have ruled out the possibility of owning freighter aircraft, notwithstanding a need for dedicated cargo flights.

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Panalpina Financial Results

The world’s fourth largest air freight and sea freight forwarder, Swiss group Panalpina, continued its strong organic growth in the first six months of 2007, with revenues, earnings and market share all registering impressive growth.

While turnover and profits have increased, Praveen Ojha, Analyst with independent market analysts Datamonitor’s logistics and express research unit, says the bigger positive signs for the future lie in Panalpina’s non-freight forwarding results- the Supply Chain Management (SCM) division. With increasing margins in the SCM business, Panalpina continues to swell its cash-kitty for any potential acquisitions.

After posting strong first quarter results earlier this year, Panalpina extended the good performance throughout the second quarter and, over the first half as a whole, increased both its operating and net profits by over 50 pct.

Net forwarding revenue increased to CHF 4.0 billion, from CHF 3.7 billion a year earlier. The first half net earnings jumped to CHF 108.4 million, up from CHF 69.3 million in 2006, while EBIT increased to CHF 148.3 million, up from CHF 96.6 million a year earlier. Panalpina has also announced plans to launch a share buyback program later this month, and, according to the company, this will not impact plans for further capital expenditure or inorganic growth.

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Swiss Panalpina not interested in Dutch TNT Logistics Division

Swiss logistics company Panalpina Welttransport (Holding) AG is not interested in the takeover of the Logistics division of Dutch mail and logisticscompany TNT NV, Panalpina spokesman Martin Spohn said on December 14, 2005. We are not considering such large acquisition, which is not in line with our strategy to take over small specialised companies, Spohn added. TNT announced its intention to divest the Logistics division earlier in December 2005. The division generates an annual revenue of 3.4 bln euro (USD3.977 bln). Swiss logistics company Kuehne & Nagel International has recently said, a large acquisition was improbable in the near future because the company was engaged with the integration of a large acquisition in France.

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