From Design to Execution Capturing Value in Customer Supply Chains

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Content

Changing demands require new solutions........................................................................... 2

Panalpina Supply Chain Opt imization ................................................................................... 3

Why Panalpina? ............................................................................................................................... 5

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Figure 1: PWC Global Supply Chain Survey 2013

Changing demands require new solut ions

Global companies are striving to understand their supply chains better than ever and manage their supply chain networks with fewer but more strategic partners. Extreme market and demand volatility, tightening requirements in terms of perfect-order delivery or throughput time makes reliable end-to-end supply and demand planning increasingly challenging. Rapidly enlarging or diminishing product portfolios are adding additional complexity to global supply chain manage-ment.

Overall reduction in supply chain cost while maximizing supply chain flexibility and managing multiple supply chain configurations, stands on top of every supply chain executive’s agenda. The inherent need for supply chain transparency is complementing those challenges to achieve better supply chain control.

Companies that focus on improving their supply chain performance consistently outperform their industry peers financially. Those who don’t are lagging behind from an operational as well as financial perspective.

In order to prevent profit margins being further squeezed, manufacturers are forced to optimize their operations as much as possible to remain competitive. Many choose to leverage supply chain optimization, which eliminates unnecessary steps in processes and cuts costs.

Despite the increased importance of supply chain management, few companies have actually developed approaches which enable them to capture the highest value of their supply chain. Companies that ship materials and products are finding it increasingly difficult to allocate sufficient professional resources to identify opportunities to improve their supply chains. While direct costs have been successfully reduced in transporta-tion, warehousing and IT, companies are confronted with difficulties when analyzing and managing the indirect costs related to their inventory, lost sales and obsolescence.

Companies are increasingly turning to Panalpina for advice on their supply chain strategies. As a global player with the three core products air freight, ocean freight and logistics, Panalpina not only provides customers with strategic guidance regarding supply chain design and execution, but also puts the identified optimizations into practice.

Companies that focus on improving their supply chain performance consistently outperform their industry peers financially* * Based on findings of PWCs Global Supply Chain Survey 2013

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Figure 2: Directional savings in total cost (Panalpina SCS Team)

Panalpina Supply Chain Optimizat ion Supply Chain Optimization is a methodology to identify inefficiencies in customer supply chains and provide solutions designed to realize significant cost reductions, service enhancements or process improvements by responding to critical industry drivers and individual business objectives.

Improving supply chain configurations

Using our industry expertise, combined with simulation tools and benchmarking applications, we deliver solid results to support your decision making processes on strategic or tactical supply chain reconfigurations. The re-design of supply chain networks results in improved material flows, optimized positioning of logistics facilities and ultimately lower total cost such as reduced transport or inventory cost, minimized lost sales or reduced obsolescence cost.

Our experience shows that approximately 15% of total supply chain cost (direct and indirect) can be reduced by applying Panalpina’s Supply Chain Optimization approach.

Possible optimization parameters may include total cost-to-serve, reliability, responsiveness, lead-times or environ-mental sustainability.

The supply chain categorization ultimately reflects your product characteristics, ensuring an optimal setup in regards to strategic, operational or financial parameters. It is designed to support achieving your defined business objectives.

Realizing implementable end-to-end solutions for a ‘best-in-class’ supply chain

Our services are designed to identify the most suitable supply chain for your products by encompassing relevant industry drivers and business objectives. We build our solutions around our core service offerings Air Freight, Ocean Freight and Logistics to facilitate a seamless execution.

By deploying state-of-the-art tools and methodologies, Panalpina can achieve up to 15% cost reductions in overall transport and logistics cost on average*

* Based on experience of Panalpina SCS Team.

Figure 3: Supply Chain Categorization based on identified product characteristics (Source: Panalpina SCS Team)

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As a global member of the Supply Chain Council, our solutions are touching all aspects of a customer supply chain from plan, source, make, deliver and return, such as:

• Supply Chain Design (Plan)

• Order Management (Source)

• Inbound to Manufacturing (Make)

• Transport Management (Deliver)

• Reverse Logistics (Return)

Our Supply Chain Optimization (SCO) approach is divided into three consecutive phases (Value Identification, Scenario Assessment and Benefit Realization) and is designed to yield tangible results allowing to „track and trace“ progress in each phase.

Being an asset light company, Panalpina can focus on satisfying your defined supply chain needs and design supply chains to respond to your industry challenges and strategic targets by developing the most favorable configurations based on best-practice and solid expertise in various industries.

Figure 4: Supply Chain Design through state-of-the art modeling tools (Source: Panalpina SCS Team)

Figure 5: Three consecutive phases deliver tangible results (Source: Panalpina SCS Team)

Panalpina employs a well-proven approach to put savings quickly on the table.

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Why Panalpina? Worldwide presence – local knowledge

Across time zones and borders, Panalpina operates a world-spanning network embracing some 500 branches.

With detailed knowledge of local markets and characteristics Panalpina’s professionals deliver every time comprehensive door-to-door solutions.

Specializing in international air freight, ocean freight, logistics and a variety of supply chain solutions, the service portfolio includes among others warehousing, overland transportation, customs brokerage or complex project transports.

Working in partnerships, Panalpina has evolved from a traditional freight forwarder into a modern full-service logistics service supplier. Our expertise in implementing and operating global supply chains is a core component when it comes to developing and designing customer supply chains across the globe.

With the objective to create sustainable value across the entire supply chain and to build a competitive infrastructure for our customers and supply chain partners, Panalpina established the Supply Chain Solutions Team with dedicated highly qualified professionals.

Figure 6: Panalpina operates 500 branches in more than 70 countries

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Imprint Panalpina Management Ltd Viaduktstrasse 42 P. O. Box CH-4002 Basel Switzerland Phone +41 61 226 11 11 Fax +41 61 226 11 01 scs@panalpina.com www.panalpina.com

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