Panalpina targets end-to-end supply chains

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Panalpina has set out plans to focus on end-to-end supply chains in its corporate strategy outlook to 2014.

The aim is to complement its core services of air and ocean freight with supply chain services such as supply chain optimisation or order management as well as value added services in logistics such as inbound to manufacturing, postponement or after market services.

Chief executive Monika Ribar told a meeting of investors: “All of these services allow us to offer our customers global and tailored end-to-end supply chain solutions.”

Panalpina will increase its in-house logistics capabilities in the coming years, but is committed to an asset light business model . As a result, logistics will be positioned around value added services rather than running stand-alone warehouses.

The company has set itself the goal of outperforming the market. For 2011 to 2014, the company expects an average market volume growth of five per cent for air freight, seven per cent for ocean freight and five per cent for logistics.

It also wants to increase its EBITDA margin from 14 per cent in 2010 to 20 per cent by 2014.

A key element of the strategy is the development of “own-controlled” products and services which it believes is a strong USP.

And it plans to focus on consumer and retail, healthcare, hi-tech and oil and gas to support growth above market in air freight, ocean freight and logistics. The aim is to rank in the top five in all of its industry verticals by 2014. It also sees growth potential in a number of niche markets such as perishables, forestry and secondary recycling materials.

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