Panalpina invests in state-of-the-art SAP systems

May 13, 2008

As part of the ongoing modernization of its IT environment, Panalpina has taken a huge leap forward and replaced its freight forwarding applications for its ocean and air freight businesses. Following an in-depth assessment, the global forwarding and logistics company decided in favour of a solution offered by its long-standing partner SAP.

The forwarding applications ensure the smooth electronic processing of all forwarding and logistics procedures and are responsible for direct communication with customers, partners and suppliers via IT channels. All freight movements are tracked electronically, ensuring not only consistent monitoring but also real-time status reports, prompt notification, invoicing and many other features of direct benefit to forwarding operations.

In recent years, Panalpina has integrated state-of-the-art technologies in its SOA (Service-Oriented Architecture) programme. In doing so, the company has successfully created the preconditions needed to supersede the so-called legacy systems (existing operational applications), as new applications can now be easily incorporated into the current system environment.

Best solution from SAP

“In order to find the right replacements for the forwarding systems, we carried out an assessment", explains Günter Denk, Head of IT at Panalpina. “Our decision to go with the SAP solution was based on its multiple benefits. First of all, SAP’s Transport Managing System (TM) is a standardized industry solution. TM also supports all modes of transport, covering not only ocean and air freight but also other segments such as overland haulage. Moreover, we have every faith in SAP’s Road Map solution and have enjoyed close working relations with the company for many years", remarks Denk. TM handles all documentation for individual shipments and offers consolidation processes, as well as billing and integrated pricing and quotation modules. It also incorporates standardized security applications. It can be integrated as a standard feature in other SAP modules – such as Customer Relationship Management (CRM) – and has a whole range of upgrade options. “What’s more, once the development stage is complete, the system can be implemented very quickly. It supports the ongoing standardization of internal processes and will provide a stable, technical environment for at least the next 5-10 years", beams Günter Denk.

Customer benefits

“Over the next three years, we will be investing around CHF 25-30 million in the new system. This is why it is absolutely paramount that the new solution offers real benefits for our customers", says Panalpina CEO Monika Ribar. A marked improvement in efficiency has been achieved through SAP’s TMS solution, “and in addition, TM’s standardized communication interfaces mean that we can connect up to systems belonging to our customers and partner companies", adds Monika Ribar.

About Panalpina

The Panalpina Group is one of the world's leading providers of supply chain solutions. The company combines its core products of Air Freight, Ocean Freight, and Logistics to deliver globally integrated, tailor-made end-to-end solutions. Drawing on in-depth industry know-how and customized IT systems, Panalpina manages the needs of its customers' supply chains, no matter how demanding they might be. Energy Solutions is a specialized service for the energy and capital projects sector. The Panalpina Group operates a global network with some 500 offices in more than 75 countries, and it works with partner companies in a further 90 countries. Panalpina employs 15,000 people worldwide who deliver a comprehensive service to the highest quality standards – wherever and whenever.