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1Table of Contents1.Executive Summary22.Introduction23. Five factor affect Panalpina's supplier relationships2-54. Solution or suggestion to improve Panalpina's supplier relationships5-75. Five modes of transportations and Five warehousing service7-106.Performance management systems and solution or suggestion on improve itssystem10-127. Conclusion138.Reference List14-20
2A.Executive SummaryPanalpina Group is a Swiss provider of forwarding and logistics services. ThePanalpina Group is one of the world's leading providers of supply chain solutions.The factor that affect Panalpina’s supplier relationships which aredevelopingrelationship capabilities,mutual benefits and needs,continuousimprovement,performance metrics and building trust. In additional, the solution or thesuggestion that improve on the Panalpina ‘s supplier relationships are personalrelationship to improve supplier relationship, improving supplier relationship bybuilding trust, information sharing and sines of communication and improvingsupplier relationship through continuous Improvement.Panalpina adopted 5 modes oftransportations and 5 types of warehousing service such as water, air, rail , motor andpipeline carries. Warehouse management system, order and freightmanagement,refrigerated warehouse, assembly and reverse logistics those are theservice that Panalpina adopted. Supply Chain Management is a system that uses theright channel to send the right quantity amount of goods in the right time to customers(Balakannan et. al., 2016). Panalpina employs a holistic performance managementsystem which encompasses sustainability, environmental performance, socialresponsibility, the health and safety of employees, and solid business managementand processes (Panalpina 2018 Sustainability Report, 2019). Panalpina employs anintegrated management system to ensure the steady advancement of the quality of allservices (Panalpina,2019). Another aspect of performance management that Panalpinaemphasised on is employee safety. In performance evaluation, Panalpina uses a
3Balanced Scorecard (BSC) that analyses performance on four aspects: financial,customer, business process, and R&D (Peters, 2011).B.Introduction of Panalpina GroupPanalpina Group is a Swiss company, is a provider of forwarding and logisticsservices (Wikipedia,2019). The Panalpina Group is one of the world's leadingproviders of supply chain solutions. The company combines its core products – AirFreight, Ocean Freight, and Logistics and Manufacturing – to deliver globallyintegrated, tailor-made end-to-end solutions for twelve core industries(Panalpina,2019). Panalpina uses industry-wide technology and custom IT systems tomanage the needs of its customer supply chain, no matter how demanding they maybe. Drawing on in-depth industry know-how and customized IT systems, Panalpinamanages the needs of its customers' supply chains, no matter how demanding theymight be. Project Solutions is a specialized service for the energy and capital projectssector. he project solution is a professional service for the energy and capital projectdepartment. The Panalpina Group has approximately 500 offices in around 70countries, and it works with partner companies in another 100 countries. Panalpinaemploys approximately 14,500 people worldwide who deliver a comprehensiveservice to the highest quality standards – wherever and whenever (Panalpina,2019).I.Five factor affect Panalpina’s supplier relationshipsThere are five factors that affected the Panalpina’s supplier relationship. The firstfactor is developing relationship capabilities. Panalpina has incorporate with Apollofor creating long-time relationships company in Perth (Panalpina 2018). The long-term relationship with Apollo Perth was created because of Panalpina offer the entiretransportation and logistics product portfolio under one roof, as a panalpina unit. Thisrefers specifically to local. The key qualities that Panalpina seeks in reachingagreements with Apollo Perth to have long-term supplier relationship are globalnetworking, financial in strong positon, IT integration and service reliability.Therefore, the correct capabilities can affect the relationship with suppliers as well ascustomers.
4Other than that, the factor that can affected Panalpina’s supplier relationship is mutualbenefits and needs. Due to their mutual geographic networks and analogous businessmodels, Panalpina and the NYK subsidiary Yusen Air & Sea Service (YAS) canpreferably bolster each other. The agreement will give both sides with new businessopportunities to increase efficiency while reducing costs. The agency agreement withYusen Air and Sea Services will enable Panalpina to integrate all its services,procurement and domestic activities in Japan. Simultaneously, YAS will accessPanalpina's broad system and market knowledge. Panalpina and YAS will have abroader customer base and operate efficiently. In addition, they will improve theircompetitive edge in Japanese and Asian trading markets. This cooperation has createdglobal advantages for both sides in their respective markets, including mutuallybeneficial co-loading opportunities. Therefore, both sides will strengthen theirrespective networks and procurement capabilities to achieve mutual benefit on aglobal basis (Panalpina 2018).Furthermore, the third factor that affecting Panalpina’s supplier relationship iscontinuous improvement. Validaide is Panalpina’s supplier, Validaide is an openplatform with a unique community approach (Air Chargo World 2019). All of itsremaining divisions are scheduled to go live on the Validaide platform by the end ofthe first quarter of 2018. Focus on air cargo vessels as a tool for qualified suppliersand assessing the risks of transport routes. The new Panprojects operator serviceenables Panalpina to oversee multi-mode heavy lift transport from one end to theother under a single contract that governs all modes of transport (The Stat Trade Time2019). In addition, the digital tool they developed is the Validaide system, whichallows Panalpina and its customers to increase the transparency of their carriers androutes. To further facilitate Panalpina's digital transformation, Validaide has created anew head of digital innovation position that reports directly to Panalpina.Moreover, the fourth factor that affects Panalpina’s supplier relationship isperformance metrics. Kosmos is a hacker team and also one of the Panalpina’ssupplier. Kosmos proposed a blockchain method for Panalpina within 42 hours for the