LATAM Cargo begins direct service between Bogotá and Panalpina's Huntsville gateway

For the first time in its history, LATAM Cargo flew a direct route between the cities of Bogotá (BOG), Colombia, and Huntsville (HSV), Alabama, United States. The new cargo-only route was opened last Sunday, December 2 and will be operated once weekly.

The new BOG-HSV route comes in response to Panalpina’s interest to cut down cargo travel time from South America to North America and LATAM Cargo’s commitment to meet the needs of its customers. Accordingly, the LATAM Group’s team assessed the feasibility of implementing this new destination to bypass transit through Miami.

“The sustainability of LATAM Cargo’s relationship with its customers is founded on trust and collaborative work. We are continuously supporting them with their projects by offering the best alternatives possible. This allows us to fulfill our desire to be perceived as strategic partners and to expand their business together,” said Andrés Bianchi, CEO of LATAM Cargo Group.

Panalpina’s gateway in Huntsville, part of the Charter Network, was recently expanded to accommodate perishables. Of the new 1,626 m2 (17,500 sq ft), 1,022 m2 (11,000 sq ft) is cold storage dedicated to perishables with variable temperature ranges. The coolers are located directly adjacent to Panalpina’s main building, less than 100 meters from the apron where aircraft park.

With the new service, Panalpina will reach Huntsville in approximately four and a half hours, cutting down distribution time and simplifying the logistics process. The freighter aircraft will have the capacity to transport some 50 tons of cargo per flight.

"The new route marks an important milestone as we continuously expand our Charter Network and the Perishables Network," says Roberto Schiavone, Panalpina's regional head of Air Freight Americas.



DHL study reveals winning logistics strategies for the last mile

Rise in urban consumers in developed and emerging markets is challenging retailers and logistics partners to deliver even more speed and convenience
Companies that can improve performance in the areas of flexible transport networks, automation and data will be better positioned to compete

Increasing urbanization is making the last mile of delivery more complex and critical for the success of e-commerce companies, according to new research by DHL and market research company Euromonitor. With over 600 million more people forecast to live in urban environments by 2030 and new technologies creating opportunities for both service enhancement and disruption, online retailers and their logistics partners are being challenged to embrace bold new approaches in order to survive and compete. In the white paper, Shortening the Last Mile: Winning Logistics Strategies in the Race to the Urban Consumer, DHL and Euromonitor have identified the four main trends that are shaping urban last mile transportation - localized delivery, flexi-delivery networks, seasonal logistics and evolving technologies - and ways in which companies can adapt their supply chains to the changing market environment and achieve competitive advantage.

"The last mile is increasingly becoming the key battleground in the e-commerce supply chain, and companies will have to develop targeted strategies in this area to compete effectively," said Katja Busch, Chief Commercial Officer, DHL. "It's not just about transportation, but about companies' overall approach to managing inventory - getting the right items to the right place at the right time. DHL is developing focused solutions to help e-commerce companies reach their end customers quickly and efficiently, from using machine learning to better route shipments within cities to adding more automation to our delivery networks."

The white paper found that the major urban trends all create various challenges in terms of cost, service impact and organizational strain. For example, the growth of seasonal logistics as a result of increasingly popular holidays and promotional days such as Asia's Singles' Day or national Cyber Days, places significant pressure on logistics companies to build up additional capacity and hire resources to cope with short-term volume surges, which can in turn be difficult to predict. Urban customers' demands for speed and convenience are forcing retailers to overhaul their warehousing networks, replacing centralized networks with local fulfilment and distribution infrastructure, which can require more accurate balancing of inventory. Evolving technologies are creating opportunities for new disruptive challengers to enter the market, while also requiring incumbents to invest prudently and incorporate new skills into their workforce. To overcome these challenges, DHL and Euromonitor have jointly identified the F.A.D. (Flexible transport networks, Automation and Data) model as a framework that will help retailers and logistics operators to ensure their competitiveness over the last mile. By improving their performance in increasing automation, managing data and building flexibility into their networks, e-commerce companies in all markets will be able to better manage inventory and increase the efficiency of their last-mile delivery networks.

"The future evolution of this fast-moving, highly competitive e-commerce market is still incredibly difficult to predict, so companies need to remain nimble and efficient while ensuring they are meeting customer demands," said Lee Spratt, CEO, DHL eCommerce Americas. "The last mile requires considerable attention because, however the market evolves, it will continue to be one of the main touchpoints in the customer experience. Those companies that can build effective partnerships to make their urban delivery networks more elastic, invest in the most effective technologies to boost productivity, take advantage of data to build better customer experiences and, most importantly, manage their inventory as efficiently as possible will emerge as winners in the dynamic e-commerce marketplace of tomorrow."



DHL Global Trade Barometer: World trade momentum weaker but growing

Indices for all seven countries indicate further growth
Pace slows down in all index countries - particularly in Asia
India continues to grow most dynamically; weakest trade growth in the UK
Tim Scharwath, CEO DHL Global Forwarding, Freight: "The DHL Global Trade Barometer shows that global trade continues growth, but at a slower pace"
Bonn, New York - Global trade will continue to grow over the next three months. This is the conclusion of the latest DHL Global Trade Barometer (GTB). With an overall index of 61 points, the GTB's analysis of international air and containerized ocean trade flows indicates that the development of the previous quarters will continue: Indices for all seven countries that constitute the GTB index are above 50 points, which corresponds to a positive growth forecast according to the underlying methodology. The pace of growth, however, is further slowing in all index countries. This deceleration will be particularly strong in Asia (except for China): Index values for India, Japan and South Korea have dropped by eight, six and five points respectively compared to the previous release of the GTB in September. With an overall index of 75 points, India, however, continues to be the country with the strongest trade growth forecast.
"The DHL Global Trade Barometer clearly shows that the state of global trade remains solid. Both, air and ocean trade, continue to grow around the world. However, given the smoldering trade conflicts, especially between the US and China, and economists' expectations that the global economy could cool down, it is not entirely surprising that trade momentum has weakened slightly", said Tim Scharwath, CEO of DHL Global Forwarding, Freight.

Trade growth in the US (61 points) and China (58 points) remains solid. Both countries' momentum of growth is slowing only moderately by two and one points, respectively - even though both countries would have much to lose if their trade conflict escalated.
With a two-point decline and an index value of 56 points, Germany's loss of trade growth momentum turns out to be moderate, too, compared to September. While the UK was able to keep its GTB index unchanged in the previous release, its growth forecast has now deteriorated noticeably by four points. This makes it the index country with the weakest growth forecast: With 53 points, the UK is only slightly above the 50-point mark, which indicates stagnation in trade growth.

The worldwide deceleration of trade growth is attributable to declines in both containerized ocean freight and international air trade - with last year being a peak year with exceptionally high volumes. South Korea is the only country whose growth forecast for ocean trade remains unchanged. In all the other countries, the outlook for ocean trade is declining. Furthermore, the air trade outlook is going down in every index country. With an eye to individual sector developments, Industrial Raw Materials contributed most to international trade growth, followed by Machine Parts and Basic Raw Materials. The weakest growing categories were Consumer & Household Goods, Capital Equipment and Machinery Parts.

Launched in January 2018, the DHL Global Trade Barometer is an innovative and unique early indicator for the current state and future development of global trade. It is based on large amounts of logistics data that are evaluated with the help of artificial intelligence. The indicator has been developed in cooperation between DHL, the world's leading logistics company, and IT service provider Accenture. It is published four times a year. The next release date is scheduled for March 27, 2019.



Panalpina and Honeywell partner on new technology solutions

Panalpina has entered into a strategic alliance with technology company Honeywell to enhance worker productivity, accuracy, and efficiency across its global distribution centers.

Panalpina today announced a strategic alliance with US technology company Honeywell. Honeywell is to become a technology partner supporting Panalpina’s global innovation initiatives around connected distribution centers, connected supply chains, and connected workers. The partnership is focused on productivity, accuracy, and efficiency improvements.

Panalpina will deploy Honeywell’s industry-leading technology solutions globally at its warehouses, including voice directed solutions, mobile hand-held devices, and warehouse automation solutions. The two companies agreed to a strategic alliance to jointly collaborate and deploy solutions that deliver value to Panalpina’s global customer base.

“The partnership with Honeywell will be instrumental for our LogEx continuous improvement initiatives and support us in providing best-in-class operations to our customers worldwide,” says Mike Wilson, Panalpina’s global head of Logistics and Manufacturing.

“Our goal is to support Panalpina in realizing its global digital transformation strategy,” says Thomas Park, chief commercial officer of Honeywell Safety and Productivity Solutions. “We will partner on new technology solutions designed to help distribution center workers and shippers streamline supply chain operations, gain detailed information about the condition of their shipments and comply with industry regulations.”

Recent implementations of Honeywell’s Mobility Edge devices and Vocollect Voice technology in two of Panalpina’s warehouses have been very successful and shown a 15 percent improvement in productivity. “Combined with our global standardized warehouse management system and integrated solutions, Honeywell adds enabling hardware and innovative technologies to work smarter and more efficiently,” says Brian Caputo, Panalpina’s corporate head of Logistics, HR and Legal IT products.

About Honeywell

Honeywell (www.honeywell.com) is a Fortune 100 software-industrial company that delivers industry specific solutions that include aerospace; control technologies for buildings, and industry; and performance materials globally. Our technologies help everything from aircraft, buildings, manufacturing plants, supply chains, and workers become more connected to make our world smarter, safer, and more sustainable.

About Honeywell Safety and Productivity Solutions

Honeywell Safety and Productivity Solutions (SPS) provides products, software and connected solutions that improve productivity, workplace safety and asset performance for our customers across the globe. We deliver on this promise through industry-leading mobile devices, software, cloud technology and automation solutions, the broadest range of personal protective equipment and gas detection technology, and custom-engineered sensors, switches and controls.




Panalpina Mission Possible: Getting aid to South Sudan’s children affected by war

This coming week, Panalpina will assist UNICEF (the United Nations International Children’s Fund) for the sixth time by flying relief aid to Africa. The Panalpina Charter Network is in final preparations for the flight in support of the respected UN organization.

Same as last year, the flight ? chartered and donated by Panalpina ? will go to Uganda, from where the relief goods will be trucked across the border to South Sudan. Some of the relief goods will then likely be flown by giant UN helicopters to remote regions in the country to help mostly children, women and families in a country affected by one of the world’s worst humanitarian crises.

The following report was written by journalist Peter Martell earlier this year and shows how getting aid to the people who need it most requires extreme efforts. The report also impressively illustrates how every ton of relief goods makes a very big difference to thousands of people who often have not had aid for years.

On the ground, aid workers and residents of the remote South Sudanese town of Udier use the cargo the helicopter has dropped as a temporary shelter from the storm.

The Russian-made Mi-26 helicopter is the world’s largest, originally designed to carry heavy military kit. Here it is delivering four tons of aid.

“Hold on!” shouts nurse Gatluak Lual, as people cling to the boxes, including special high protein food for malnourished children, packs of pregnancy delivery kits to help mothers give birth safely, spare parts to fix water pumps and bales of mosquito nets.

“This will make a very big difference to the people,” said Lual, sweeping off a layer of dirt to read the labels on the tumbled box, after the wind calms with the helicopter gone. “We have not had aid like this here for years.”

South Sudan is one of the world’s worst humanitarian crises. Civil war erupted in 2013, ripping the young nation apart. Millions of people have been forced from their homes, and millions more are in need. Children are especially suffering. Many areas have been effectively cut off from the outside world almost entirely.


Unique airborne aid missions

Getting aid out to the people who need it most also requires extreme efforts. So the UN Children’s Fund, UNICEF, alongside partners from the World Food Programme, WFP, have developed what they call the Integrated Rapid Response Mechanism, or IRRM.

It is a complicated technical term for a mission with a simple focus; an airborne aid operation to drop in teams and tonnes of supplies into some of the most inaccessible and dangerous areas anywhere in the world.

Since the war began, hundreds of helicopter missions have provided aid for millions of the most vulnerable people.

“We target several areas at the same time,” said Selina Ayangi, a UNICEF team leader for the mission to Udier. “That includes tackling severe malnutrition with mass screenings of children, and providing treatment with supplementary feeding. For health, we give vaccinations, and for hygiene, clean water and sanitation kits.”

In the baking heat, the South Sudanese specialist in nutrition is organising a long line of volunteers, tackling the heavy work of hauling the cargo through thick scrubland from the helicopter drop zone.

“Logistics are a big challenge,” she said, as men carry chests of measles, tetanus and polio vaccines in giant cool boxes out of the burning sun. With no power to refrigerate the several thousand precious vaccines, they must be given out as soon as possible.

“It is a three-hour helicopter flight here,” Ayagi added. “We’re operating without electricity or phone signal. If you forget something, or need something else, you just have to work with what you’ve got.”

The five-person UNICEF team includes nutritionists, a child protection officer and a community health expert.

The first helicopter drops the team and their kit, including tents, food and even drinking water. They set up a base ready to support tens of thousands of people, training local volunteers to not only help manage vast crowds but also to assess for malnutrition and give injections of vaccines. They all must be ready to act as soon as aid is delivered days later via cargo helicopter.

After that, the team is on its own ? until a recovery flight is sent to pull them out after around 10 days.

The missions require aid workers take considerable risks. At least a hundred aid workers have been killed in South Sudan in five years of war. Dozens have been kidnapped. “The situation here now is calm,” Aynagi said. “But there have been times we have had to evacuate when things have not been good.”

Udier, in the far northeast of the country, is outside government control. That means the isolated town is physically cut off by battle lines from trade with the rest of the country. The UNICEF operating base is in the playground of the town’s school. The building itself is roofless after damage in storms, with walls covered in graffiti showing charcoal drawings of soldiers and war.

The people are not only exhausted by the war, weakened by years without healthcare, but are also struggling to support new arrivals seeking shelter and safety displaced by the violence. “Our population almost doubled with people fleeing from fighting,” said Chuol Kang Wuol, director of aid operations for the local administration. “That has stretched us even more.”

Each mission is a microcosm of the crisis that South Sudan as a whole faces; staggering health needs, uncertain security, a lack of even the most basic infrastructure, and hunger at such extreme levels experts have warned of the potential to return to famine conditions declared in 2017. The missions are carried out in collaboration with WFP.

Sometimes as many as 30,000 people will come from deep in the bush in the hope of supplies, which WFP delivers by literally pushing supplies out the back of airplanes. Tonnes of grain sacks thunder down, while crates of more breakable cooking oil are dropped with parachutes attached.

But it takes more than food alone to build a life. Bringing so many people together provides a good opportunity to provide a rapid delivery of healthcare. “People come for the food,” said Ayangi. “When they come to register for that, then UNICEF offers support to those in need.”

Last year, UNICEF deployed teams on over 50 joint missions to locations across South Sudan. While the UN uses such operations in other conflict zones across the world, the South Sudan missions are unique in being the only ones totally reliant on helicopters.

The queues begin soon after dawn. The long lines last for hours, snaking out across the dirt airstrip, the only large open area for people to gather. This mission, targeting around 9,000 people, is only a medium-sized.

At the head of the queues, UNICEF experts with support from local health workers and volunteers work without break to assess the needs and provide what aid they can.

Some children have extended bellies and swollen ankles, while others have light brown hair, all warning indicators of possible malnutrition.

Nyaduel Kuoch, aged 25, holds her six-month-old daughter Much Kor as volunteers read off measurements on a sliding malnutrition assessment arm bands. “We are struggling from a lack of food,” Kuoch said. “There is no healthcare for my children.”

Children are given doses of de-worming pills, vitamin supplements and, if they are judged to be severely malnourished, packets of special formula food to bring them back up to a healthy weight. Elsewhere, lines of mothers and children wait for vaccines, or health checks from medics.



DHL Supply Chain Invests $300M to Accelerate Integration of Emerging Technologies Into North American Facilities

DHL Supply Chain, the Americas leader in contract logistics and part of Deutsche Post DHL Group, today announced plans to deploy emerging technologies in 350 of its 430 facilities in North American facilities and transportation control towers as part of a $300 million investment. Selected technologies will vary by customer needs, based on the outcomes of research and pilot programs completed by DHL's internal innovation teams and collaboration with dozens of external innovators.

The availability - and practical utilization - of these technologies is expected to help the diverse customer base including those addressing e-commerce and omnichannel challenges to minimize complexity, remove capacity constraints, and maximize service to their customers. Accelerating the implementation of selected technologies such as robotics, augmented reality, robotics process automation, IoT and DHL's proprietary end-to-end visibility solution - MySupplyChain - is the objective of DHL Supply Chain's global digitalization strategy.

DHL Supply Chain North America CEO Scott Sureddin said, "This investment is about a holistic view of emerging technologies that enables our customers to achieve their growth and profitability goals. Our customers' needs are not homogenous as each business and segment has unique challenges and levels of maturity. Therefore, it is important that our customers can benefit from our experiences and expertise with a variety of emerging technologies."

According to a recent DHL report, the exponential growth of e-commerce and its implications on service was identified by 65 percent of responding companies as having a significant impact on their supply chain. Executives are turning to technology in support of faster delivery times to efficiently manage fluctuating demand. In alignment with this trend, DHL is already leveraging emerging technologies at approximately 85 of its 430 North American facilities.

"While many technologies are already in active deployment, collaborative piece-picking robots, artificial intelligence applications and self-driving vehicles stand to have the most promise today," added Sureddin. The potential impact on customers' businesses, which in some deployments have produced productivity gains upwards of 25% and throughput capacity gains of 30%, are two of the main drivers for accelerated investment in the coming years. DHL's experience with these technologies stands to minimize infrastructure costs and maximize service levels.

Another motivation is based on the workforce itself, which is widely regarded as one of the most significant challenges facing the logistics industry. Technology is one of the many levers DHL is utilizing to attract and retain its team.

Tim Sprosty, Senior Vice President of Human Resources at DHL Supply Chain, said, "These technologies enhance the value of our people; they don't replace them. Our team will be equipped with the most advanced technologies, trained on emerging ones and retained through a culture of innovation, collaboration and recognition. We believe this approach is a winning strategy not just for our business but for our customers' businesses as well."

Earlier this year, DHL broke ground on its Americas Innovation Center that will exhibit the technologies and innovations the business is already implementing across the region. The facility is intended to foster the development of future logistics and supply chain solutions while serving as a regional platform for collaborative innovation. The 24,000-square-foot innovation center, which is located just outside Chicago, is scheduled to open next year.



Panalpina “The elongated, take-make-dispose supply chain is under threat”

Digital manufacturing such as 3D printing and flexible models of distribution close to the point of consumption will shape tomorrow’s supply chains, according to Panalpina’s Mike Wilson.

In a recent interview, Mike Wilson, global head of Logistics and Manufacturing at Panalpina, and newly chaired honorary visiting professor at Cardiff Business School, talked to professor Aris Sytentos, from the School’s Panalpina Research Centre, about manufacturing and supply chain trends, Sino-US trade conflicts and who will be the ultimate winners in global logistics.

“The elongated, take-make-dispose supply chain that has been the mainstay model for the last number of decades is under threat. It won’t all change overnight, but we are certainly experiencing the change today. Supply chains are going local. […] The trade wars we are seeing only accelerate this migration,” says Wilson in the interview.

Wilson argues that the previous constraints to manufacturing and supply chains are being quickly removed and he cautions global manufacturers to think seriously about where best to position their production capabilities. According to Wilson, speed and proximity to market have become much more critical, giving companies more options and choices in where to manufacture products.

“Technological advances in the digital age help to mobilize manufacturing, and time to market becomes the key element in the product life cycle. Original equipment manufacturers have long since outsourced manufacturing and supply chains, and will therefore need help to redesign and implement new strategies for both,” says Wilson.

He predicts the rise of the multi-disciplined mixed use facility: “Micro-factories combined with distribution close to the points of consumption. When we consider the nature of e-commerce and the expectation that goes with it, then moving manufacturing and supply chains as close as possible to consumers makes so much sense.”

Wilson is convinced that the real winners in all this will be the organizations that can help provide the services that come with the movement of manufacturing and supply chains: “From advisory services that help with distributed manufacturing and supply chain redesign, to new digital services in manufacturing and flexible models of distribution close to the point of consumption; these are the core competencies required for adapting to the new world.”

You can read the full interview here and watch a video about Panalpina’s research partnership with Cardiff University here.



Deutsche Post DHL Group offers future perspectives for more than 2,000 young people

Offer in 2019 increases to 21 different apprenticeships and 18 integrated degree programs
Completely new apprenticeship offer E-Commerce as well as a Business Informatics - Data Science integrated degree program

With around 520,000 employees, 220,000 of whom in Germany, Deutsche Post DHL Group is one of the largest national and international employers. The company offers 21 different apprenticeships and 18 integrated degree programs in a variety of careers, including mechatronics technician, IT specialist, multiple administrative and business management professions, professional drivers and warehouse clerks. More than 2,000 apprenticeships will be offered for the 2019 training year. Deutsche Post DHL Group is the largest provider of vocational training in our sector: a completely new addition to DPDHL Group's range of apprenticeships this year is the integrated degree program in Business Informatics - Data Science and the e-commerce apprenticeship. The apprenticeship is part of a new occupational profile that includes both commercial basics as well as analytical and marketing focus points. The apprenticeship prepares people specifically for an activity in the growing e-commerce industry. For example, product analysis and selection for an online shop, storage of goods, market analyses, book-keeping and marketing strategies such as online advertising are taught. The training period is three years and concludes with a qualification from the Industrie- und Handelskammer (IHK - German chamber of commerce).

Deutsche Post DHL Group is an attractive training company for applicants. "Deutsche Post DHL Group offers a broad spectrum of training. It is very important for us to be able to offer as many young people as possible future prospects," says Thomas Ogilvie, Board Member for Human Resources and Labor Director at Deutsche Post DHL Group.

Around 36,000 young people applied for a training position with Deutsche Post DHL Group in the 2018 training year. The application process is already starting again for 2019. The offers are generally close to home, whether in cities such as Frankfurt, Hamburg and Munich or in rural regions.


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