Over recent years, the end-to-end management and optimization of supply chains has been a steadily growing business segment for Panalpina. The company has invested in advanced technology and experienced staff to enhance its core freight forwarding and logistics business with optimization services that analyze supply chains in detail to make practical changes that reduce cost and improve efficiency.
Panalpina’s latest development in the field of SCO is joining the Supply Chain Council (SCC) as a global member. This non-profit organization helps members make significant and rapid improvements across supply chains. More than 800 global corporations, universities, professional service and technology firms are currently SCC members. Members of the SCC have a reputation for constantly outperforming market benchmarks and are known for their commitment to operational excellence.
“Our comprehension is to understand the customer needs and challenges to build the best solutions for them based on best practice and benchmarks,” says Sven Hoemmken, Global Head of Marketing and Sales at Panalpina. “The SCO work we do generates real results, and savings of up to 20% are relatively common. As a member of the SCC, we will continue to develop and improve this work to build even more efficient and cost-effective supply chains.”
Since joining the SCC, Panalpina has started aligning its SCO services with the Supply Chain Operations Reference (SCOR®) model. Council members use the SCOR model (based on common parameters of ‘Plan’, ‘Source’, ‘Make’, ‘Deliver’ and ‘Return’) to rapidly map and analyze supply chain processes and initiate process improvement initiatives. The model has been used by practitioners for many years. It provides a unique framework to support communication among supply chain partners and to improve the effectiveness of supply chain management. “Aligning our optimization services with the SCOR model will make it easier for us to communicate with our customers and find solutions, as we are now using a common and universal language for supply chain processes going forward,” explains Peter Karel, Global Head of Supply Chain Solutions at Panalpina.
In 2012 Panalpina established the Supply Chain Solutions Center at Frankfurt Airport in Germany to centralize its global SCO expertise. Here, highly qualified professionals use diagnostic tools and benchmarking applications to analyze supply chains and compare customer specific performance metrics to a wider set of industry peers. They then make recommendations to improve supply chain configurations from end-to-end based on practical experience.
Once improvements are approved, Panalpina not only provides customers with strategic guidance in regards to supply chain design and execution but also puts the identified optimization possibilities into practice.