Panalpina and LGI launch joint platform for Hewlett-Packard in Czech Republic

Dec 16, 2010

Hewlett-Packard commissioned Panalpina, as its Lead Logistics Provider, to develop an integrated inventory and forwarding concept based at Jirny. In this project, Panalpina is working together with LGI, a major contract logistics provider.

Hewlett-Packard commissioned Panalpina, as its Lead Logistics Provider, to develop and operate an integrated inventory and forwarding concept based at Jirny in the Czech Republic. In tackling this complex task, Panalpina was able to recruit contract logistics provider LGI as its platform partner. As part of a VMI (vendor managed inventory) concept, Panalpina is also responsible for integrating over 50 suppliers into the plan. Both Panalpina and LGI have been working for Hewlett-Packard for many years. Their jointly developed end-to-end solution, which covers the whole supply chain from the various suppliers through to production, will help to improve the client's competitive advantage.

Since 1997, LGI has been handling all logistical tasks relating to the manufacture of premium-segment servers at Herrenberg near Stuttgart. These extend from supplier inventories and channelling of kits to distribution logistics and handling of returns.

In the space of five months, the new site was fitted out with the necessary infrastructure and IT connections, and staff were recruited and trained. "We received the first goods deliveries in March 2010", remembers Warehouse Manager Martin Rozkovec.

In the initial phase, more than 25 employees working in two shifts per day are operating the 10,000 square metre supplier warehouse for hard-disks, storage devices and other electronic products.

"Orders are sent from the production site in Kutna Hora with a lead time of four to eight hours. Order-picking is then performed for the relevant goods, which are marked out of the suppliers' books and sent to the production site on a freight shuttle“, explains Markus Ziegler, Business Unit Manager Electronics at LGI. In addition to traditional logistics activities, Panalpina and LGI also take care of customs clearance for the 60 or so HP suppliers.

A regular-interval regional haulage concept has been devised for transportation between the inbound hub and the production site. This makes it possible to reduce inventory levels at the factory while responding flexibly and quickly to individual customers' requirements.

"Thanks to the long-term partnership between Panalpina and LGI and the great faith our companies have in each other, we have succeeded in creating a highly stable logistics solution within a very short time. says Robert Brugger, Managing Director Eastern Europe at Panalpina. "And that's particularly pleasing for me, given that Greater Prague is increasingly becoming a boom region for the hi-tech industry."

At the new facility, Panalpina and LGI meet the stringent TAPA requirements and thus offer an ideal environment for handling electronic goods.

About LGI

LGI Logistics Group International is a logistics provider with 1,800 employees at 35 sites around Europe. Formed in 1995 from HP Deutschland, LGI is now a wholly owned subsidiary of the Willi Betz group. It is a European leader in contract logistics. LGI organizes and performs warehouse logistics, production processes and freight management for companies in the automotive, electronics, industrial goods and healthcare sectors. Based on long-term customer relationships, LGI provides high-quality solutions for complex assignments.

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.