Panalpina, the freight forwarding and logistics company that pioneered Logistics Manufacturing Services (LMS), has stepped into the telecoms installation market after signing an agreement in Mexico with a large global telecoms network infrastructure company. With this, Panalpina has extended its LMS offering to include the installation of hardware and software for mobile network antennas.
“The move into installations is a natural extension of our existing Logistics Manufacturing Services offering where we already manufacture and configure network equipment. Adding installation services was the next logical step to becoming a full-service provider in the telecoms industry,“ explains Mike Wilson, global head of Logistics and Manufacturing at Panalpina and Professor at Cardiff Business School, where the company maintains The Panalpina Centre for Manufacturing and Logistics Research.
As the telecoms infrastructure market grows exponentially across the world, particularly with the advent of 5G technology, Panalpina became aware that telecoms companies faced difficulties installing and upgrading new network components.
“Conversations with a number of customers showed us that they had to deal with multiple suppliers and multiple installers for mobile network antennas,” continues Wilson. “It was a real headache for them and virtually every time they wanted to replace or upgrade a site, the installation had to be postponed because of missing parts, equipment, team members or even due to the site not being prepared. Our research showed that on average 2.8 visits had to be made to a site before the installation could be successfully completed.”
“Because we are very customer-focused, we immediately tried to help by building a solution. As a logistics company, we were already delivering most of the components to the sites, and we suggested a way to make sure all the various components were corralled in one place and then delivered together. But that still didn’t get over the fact that there were multiple installers, which meant a very fragmented service,“ explains Wilson.
To overcome this situation, Panalpina created a team of fully qualified telecoms equipment installers in Mexico. Krasimir Banchev, global head of installations services management at Panalpina explains: “It was an intense few months. Our team had to go through various trainings, pass exams and get the right certification. We also had to develop the right commercial and legal frameworks that are very different to traditional 3PL arrangements.”
Panalpina is determined to continue to develop its LMS offering and sees the transition to 5G placing even more importance on the need to transform supply chains in the telecoms industry. “The network infrastructure companies have to adapt to the new market demands. Their customers, the providers of telecoms services for end-consumers, demand faster time to market, flexibility, inventory availability and quality service. This is what we are focused on delivering,” adds Banchev.
Panalpina’s technicians in Mexico have already carried out several hundred certified antenna installations across the country.
With the new teams now in place and fully functioning, Panalpina is looking to expand its role in the market. “We started this in Mexico for two core reasons,” says Wilson. “Firstly, because we have such good customer relationships there. Secondly, because we have an amazing talent pool in Mexico.”
Having demonstrated significant improvement in a service that was traditionally poor for the telecoms industry, Panalpina is already working on expanding its new installation services into other territories.
Guaranteed lead-times, 100% money back guarantee
Extended cargo liability
Instant quotes for full container shipments
Carbon footprint offset
With the newly launched full container shipment solution KN Pledge, Kuehne + Nagel is the first logistics service provider to offer an online solution for Full Container Load (FCL) shipments with guaranteed lead time, 100% money back guarantee, extended cargo liability, instant pricing, and carbon footprint offset all integrated in one service offering.
Even in today’s modern sea freight transportation, delays may occur for many reasons. Terminal, rail and road congestion, adverse weather conditions and delayed transit connections, for example, remain a regular cause of disruptions in the supply chain. With KN Pledge, Kuehne + Nagel provides peace of mind for the customer’s supply chain with a guaranteed lead time for full container transportation that covers all delivery combinations from port-to-port to door-to-door. In the event that a delay becomes unavoidable, customers who have booked KN Pledge will not pay the freight charges.
The service promise also contains an extended cargo liability covering a wide range of causes or damage with up to USD 100,000 per container. Causes covered include amongst others fire, explosion, act of God and act of war.
Furthermore, with KN Pledge customers take an active role in offsetting the environmental impacts of their full container shipping, because Kuehne + Nagel offsets the carbon footprint of the transport on behalf of the customers via contributions to the development of four nature-based projects in Indonesia, Kenya and Peru.
Kuehne + Nagel covers more than 63,000 port pairs, offers over 750 weekly services and a multitude of connections. More than 7,500 dedicated and experienced specialists take extraordinary care to provide customers with superior reliability. In order to do so, Kuehne + Nagel draws on digital technologies, big data and live vessel information provided by its intelligent online platform Sea Explorer. KN Pledge is an additional extension of Kuehne + Nagel’s outstanding online quote, book and track capabilities. Customers easily receive instant, automated quotations, book their FCL shipments and track their cargo in one place.
Otto Schacht, Member of the Managing Board of Kuehne + Nagel International AG, responsible for Seafreight: “We are proud to be the first in seafreight logistics to provide this innovative and comprehensive pledge to our customers. What is special about this Kuehne + Nagel online service solution is that it enables our customers to receive offers for FCL in addition to LCL shipments within seconds ? from virtually any point in the world to any other point with an additional guaranteed lead time. Furthermore, we offset the CO2 footprint for this full container shipment.”
Developed together with Achilles, the new platform will allow DHL Industrial Projects to meet its Zero Harm and Zero Tolerance targets, which are focused on keeping people and places, wherever the company does business, safe.
Digital platform simplifies identification of best-performing suppliers according to risk exposure and compliance
DHL Industrial Projects, a unit of DHL Global Forwarding that manages complex project logistics, deep sea chartering activity and heavy-lift cargo, is launching a new digital Subcontractor Management Program to mitigate risks and ensure highest standards according to environmental and safety compliance. With increased supply chain transparency, DHL Industrial Projects will be able to identify the best suppliers for customers' needs and share data on the risk levels and performance of more than 1,000 key subcontractors across its operations.
"Safety and compliance are at the heart of everything we do," asserts Nikola Hagleitner, CEO DHL Industrial Projects. "We are thrilled to have now a digital solution in place that will make the data we rely on accessible across all our operations. Our quality standards apply not just to our internal processes, but also to our wider business partners. The new platform will ensure that we meet and exceed the expectations of our customers."
Developed together with Achilles, one of the leading providers for supply chain risk and performance management, the new platform will allow DHL Industrial Projects to meet its Zero Harm and Zero Tolerance targets, which are focused on keeping people and places, wherever the company does business, safe. Thanks to rigorous prequalification processes, the new solution will also provide DHL's customers assurance that their supply chains meet requirements for compliance, social responsibility, and risk management.
"I am delighted that DHL Industrial Projects has chosen to work with Achilles," states Jay Katzen, CEO of Achilles Information. "Ensuring suppliers maintain the highest standards is a complex but extremely important undertaking. Achilles will provide DHL the tools to get a more extensive overview of subcontractors' operations and to help suppliers' meet critical humanitarian and environmental standards."
For DHL Industrial Projects' subcontractors, registering on the new platform will give them access to a third-party evaluation of their performance against industry standards. Achilles actively helps suppliers identify opportunities to improve their operations and allows them to concentrate on winning contracts without having to prove their credentials.
In the first three months of 2019, international freight forwarding and logistics company Panalpina improved profitability compared to the same period of last year. Panalpina reported an EBIT of CHF 28.1 million (YTD 2018: CHF 24.4 million) and a consolidated profit of CHF 19.2 million (YTD 2018: CHF 16.6 million).
“In the first quarter of this year, Panalpina generated 15% more EBIT and profit than in the same period of last year,” says Panalpina CEO Stefan Karlen. “We improved profitability despite a challenging market environment and during a time when considerable management resources were absorbed by the M&A topic. This demonstrates the underlying quality and strength of our organization.”
Panalpina Group: Results for the first quarter of 2019
(CHF million) YTD 2019 YTD 2018
Net forwarding revenue 1,485.2 1,414.3
Gross profit 358.1 370.7
EBITDA 68.1 64.4
EBIT 28.1 24.4
Consolidated profit 19.2 16.6
Higher EBIT and consolidated profit
In the first quarter of 2019, Panalpina’s gross profit decreased 3% to CHF 358.1 million (YTD 2018: CHF 370.7 million), while total operating expenses decreased to CHF 290.0 million (YTD 2018: CHF 306.3 million). EBIT and consolidated profit increased year-on-year by 15% and 16% respectively. EBIT reached CHF 28.1 million compared to CHF 24.4 million a year before and the EBIT-to-gross-profit margin stood at 7.9%, up from 6.6% in 2018. The consolidated profit increased from CHF 16.6 million to CHF 19.2 million.
Panalpina’s Air Freight volumes increased 8% in the first quarter of 2019. Compared to the same period of last year, gross profit per ton decreased 10% to CHF 666 (YTD 2018: CHF 739 ), while overall gross profit decreased to CHF 173.1 million (YTD 2018: CHF 177.8 million). EBIT in Air Freight decreased from CHF 26.9 million to CHF 24.9 million. The EBIT-to-gross-profit margin came in at 14.4% compared to 15.1% a year before.
Panalpina’s Ocean Freight volumes decreased 3% year-on-year and gross profit per TEU decreased 2% to CHF 296 (YTD 2018: CHF 303), bringing gross profit to CHF 102.9 million (YTD 2018: CHF 108.9 million). For the first quarter of 2019, Ocean Freight recorded an EBIT of CHF 0.3 million, compared to a loss of CHF 5.8 million a year before.
In Logistics, gross profit decreased 2% to CHF 82.1 million year-on-year (YTD 2018: CHF 84.0 million). EBIT reached CHF 2.9 million for the first three months of 2019, compared to CHF 3.4 million for the same period of last year.
“Since the news of DSV taking over Panalpina broke, circumstances have changed. To give any sort of outlook is not only more challenging than ever before, but also constrained by legal restrictions,” says Karlen. “However, Panalpina continues to conduct business as usual. We have continued to win new business after the transaction was announced and we are determined to keep doing so in the weeks and months ahead. We are competing in the market with our strong brand, great capabilities and solid service offering, supporting our customers by providing them with tailored solutions that create value for them. This is our commitment and obligation for the rest of the year.”
DPDHL Group becomes the first German company to launch chatbot high volume recruitment in Germany on WhatsApp
The new recruitment channel sets itself apart as it is so easy to use
Thomas Ogilvie, Board Member for HR: "The recruitment process must be dynamic, in constant development and tailored to the needs of the applicants."
Deutsche Post DHL Group's national campaign entitled "Become one of us" was launched last year and is still running, but the logistics company is now bringing its recruitment methods in Germany even more up to date. Applicants no longer need to fill in online forms, which are often seen as cumbersome and time-consuming, but can now simply apply directly via WhatsApp. The applicant will receive the telephone number for his WhatsApp registration via the website www.werde-einer-von-uns.de: A chatbot then asks for the necessary recruitment data step by step, and sends it automatically to the applicant management system. It is a virtual conversation in an everyday environment, which can be paused at any time and resumed later. All the data is continuously saved, and only DPDHL Group is able to access it. Introducing the WhatsApp chatbot makes DPDHL Group a German pioneer in high volume recruiting based on simplified applications.
Introducing the WhatsApp chatbot makes DPDHL Group a German pioneer in high volume recruiting based on simplified applications. In recent years, Germany has changed from an employer's market to an employee's market. To survive and to thrive, explains Thomas Ogilvie, Deutsche Post DHL Group Board Member for HR, it is essential to develop modern methods aimed at specific target groups: "The recruitment process must be dynamic, in constant development and tailored to the needs of the applicants. To reach potential applicants, we need to go to places where they are spending their time anyway." WhatsApp is ideal because it is one of the most popular communication platforms and the most widely used across Germany.
The new WhatsApp chatbot is not only guaranteed to reach the right target group, it also reduces the time between application and appointment ? an important factor affecting decisions whether to continue or cancel the application process. There is evidence all around us of the need to keep that time as short as possible. "Our fast-moving environment throws up new challenges, and the recruitment process has to keep pace. We need to respond very quickly and in a user-centered way, and that's something the new WhatsApp chatbot allows us to do," explains Thomas Ogilvie.
On January 28, 2019, CMA CGM S.A. ("CMA CGM"), published a public tender offer (the "Offer") for all publicly held registered shares of CEVA Logistics AG ("CEVA"), at a price of CHF 30 net per share. Following the end of the additional acceptance period CMA CGM has reported that 26,127,510 shares have been tendered into the Offer, indicating that CMA CGM will own an aggregate of 97.89% of CEVA's shares upon closing of the Offer. Settlement of the tendered shares is expected to occur on 16 April 2019.
DSV and Panalpina have reached an agreement on the terms and conditions of a combination by way of a Public Exchange Offer to all Panalpina shareholders. The board of directors of Panalpina recommends that Panalpina shareholders accept the Public Exchange Offer. The Public Exchange Offer already has the support of shareholders representing 69.9% of the registered shares of Panalpina, who have irrevocably agreed to tender their shares into the Public Exchange Offer. This includes Panalpina’s largest shareholder, Ernst Göhner Foundation and Cevian and Artisan*.
Pursuant to the Public Exchange Offer, DSV will offer 2.375 DSV shares (with a nominal value of DKK 1 per share) for one Panalpina share (the “Exchange Ratio”). Fractional DSV shares will be settled in cash. Based on the DSV closing price of DKK 550.4 and an exchange rate of DKK 1.00 = CHF 0.1498 as of 29 March 2019, the Exchange Offer equals an implied offer price of CHF 195.8 for each Panalpina share.
The transaction has an enterprise value of approximately CHF 4.6 billion corresponding to DKK 30.5 billion on the basis of the closing price of DSV prior to the date of this announcement and the DKK-CHF exchange rate published by Bloomberg at 4pm GMT on 29 March 2019, the last trading day on NASDAQ Copenhagen prior to the date of this announcement.
Using the closing price of DSV prior to the date of this announcement, the Exchange Ratio represents a premium of approximately 43% to the on-exchange closing price of Panalpina shares on SIX of CHF 137 on 15 January 2019, the day before DSV’s initial proposal was published.
If the Exchange Offer is successful, DSV and Panalpina will become one of the world’s largest transport and logistics companies with a combined pro forma revenue of approximately DKK 118 billion and a combined workforce of more than 60,000 employees.
An integration committee comprising an equal number of Panalpina and DSV representatives will be established to oversee the integration process and ensure a fair treatment of all employees. A thorough evaluation will be carried out with the aim to maintain relevant functions and competences in Switzerland.
Following completion, DSV will propose to its shareholders, at an extraordinary general meeting to be convened, to change its name to “DSV Panalpina A/S”, which reflects the long, rich history of both companies.
Subject to fiduciary duties, DSV has agreed with the board of directors of Panalpina to propose a dividend policy with a pay-out ratio to DSV’s shareholders of approximately 15% of net profit.
Global logistics provider expected to create approximately 450 new jobs
Constructing three buildings totaling 1.7 million square feet
DHL Supply Chain, the Americas leader in contract logistics and part of Deutsche Post DHL Group, today announced plans to construct a distribution and warehouse park in Dorchester County, S.C., that will open in phases. The company's $100 million investment is projected to create approximately 450 new jobs.
The company has purchased 125 acres, now called DHL Commerce Park, to construct three new buildings, totaling 1.7 million square feet. The first new facility is expected to be completed in Q1 2020.
"We have seen significant growth in this area of the country and customers are even asking us to evaluate opportunities in South Carolina specifically," said Steve Hess, Vice President, Real Estate Development, DHL Supply Chain. "With that in mind, we got ahead of the curve to offer premier facilities in one of the hottest emerging markets in the country."
DHL Real Estate Solutions (RES) is a standalone product of DHL and the logistics industry's largest developer of property solutions. The integrated approach provides customers a single point of contact ensuring that building design, racking and building systems are all coordinated at the onset of the design process, resulting in smoother transitions when operations commence. RES is a global developer, providing both customers and non-supply chain customers with their individually tailored real estate solutions.
"South Carolina Ports Authority is seeing significant distribution center and warehousing activity in our region, driven by port users who rely on our marine and inland facilities to handle growing import volumes bound for consumers across the Southeast," said Jim Newsome, SCPA president and CEO. "DHL Supply Chain will play an important role in supporting the logistics needs of multiple port-related business segments, and we look forward to the opening of their new facility."
"With a favorable geographic location and robust port and infrastructure assets, South Carolina offers unparalleled global connectivity," said Bobby Hitt, South Carolina Secretary of Commerce. "This $100 million investment by DHL Supply Chain is a testament to our unique ability to move products around the world, and I congratulate this great company on this tremendous announcement."