DELIVERING WITH PASSION

Logistics Insight Asia, 1/5/2009

A passion for providing solutions to customers is what makes us stand out, says MONIKA RIBAR, CEO, Panalpina, and that passion starts right from the top. She talks to Bob Gill.

Having held a number of senior positions at Panalpina since first joining the Swiss-headquartered company in 1991, Monika Ribar was promoted from the position of chief financial officer to become chief executive officer in October 2006. Ribar runs a global transportation and logistics service provider that operates in some 160 countries around the world and employs almost 15,000 people.

In addition to its (non-asset based) air and ocean freight services, Panalpina has developed a range of supply chain management solutions that target six key sectors: Healthcare, Retail & Fashion, Automotive, Hi-Tech, Telecoms, and Oil & Gas. For the last financial year (2008), the Panalpina Group reported revenues of 8,878 million Swiss francs (US$7.98 billion).

Q: I would assume that the Panalpina slogan, On 6 Continents, is meant to imply a globallyoriented organization?

A: Yes, most certainly. We are a company that emerged from Europe, is headquartered in Switzerland, and Europe is still a very strong market for us, but today, our customers are global and so it is important that we have a balanced, worldwide network to serve their global logistics needs. So now, we have a strong presence not only in Europe but in North America, Latin America, Africa, and in Asia Pacific. And it is absolutely crucial for us to be on the six continents and have a strong footprint everywhere.

Q: How is the current downturn affecting the business?

A: We have to be realistic – you only have to open the newspaper to see the effects on manufacturing output and trading volumes. But as a company, if volumes are shrinking then our approach is that we don’t want to shrink as much as the market.

We serve a number of diff erent industries and some of them are actually still doing quite well, and there is business out there that we can get and grow. Generally speaking, competition gets harder when the cake gets smaller, but we still intend to grow our cake as we have done in the past.

Q: In a crowded logistics provider market, how does Panalpina differentiate itself?

A: We compete with two distinct types of companies. First of all, the local players in individual countries, where we have a clear advantage given our size, purchasing power, and the fact that we can offer a global network.

As for the other global players, I believe our size and business model give us the fl exibility to respond to customers’ needs, especially the fact that we are not burdened with our own capacity that we must then sell, as is the case with some of our competitors.

Another slogan at Panalpina is “Passion for Solutions”, and this is what I also hear from our customers. In a service industry, the culture of a company has a huge impact on how you render those services, and it is our people at Panalpina that make it happen and that make a difference.

Q: What types of demands are customers placing on you these days?

A: They are looking to us to help them increase their productivity and to improve their processes. That’s what they need now – even more than in the past. Generally, we need to follow the market and what our clients are demanding, and that picture is constantly changing, such as in this recession.

For instance, two years ago, in Europe, the biggest problem was port congestion, but that is a non issue now. Although we are a large, global company, we are able to adapt quickly to circumstances, and that’s what we will do.

And as we continue to develop our global presence, we must also ensure we serve our global clients equally well throughout the network. Take Robert Bosch, for example, a major customer of ours. If we perform well in Germany but do not serve the company effectively in, say, Singapore, then this is going to have an impact on that company’s overall business, since supply chains are becoming so interconnected and interdependent. So while it’s always a good opportunity to work with such clients globally, it’s also a big responsibility and you must deliver.

Q: In your operations, is “concern for the environment” still a key issue, or perhaps taking a back seat given the economic situation?

A: It is certainly still very important for us, and it is also something that will play an increasing role in business.

Q: In your operations, is “concern for the environment” still a key issue, or perhaps taking a back seat given the economic situation?

A: It is certainly still very important for us, and it is also something that will play an increasing role in business.

Environmental performance is one of the issues we consider when we select subcontractors, and we are also providing relevant environmental training to our people on a global level. So yes, I believe green concerns will survive this current recession and we defi nitely intend to play our part.

Q: How would you describe the Panalpina culture?

A: The passion for solutions that I mentioned captures the Panalpina culture very well. Our people desire to deliver successful solutions for customers and to make them happy. That’s what drives people to come to the office every day and to render good services to our customer base.

Also as a global company, it helps if staff in different regions get to know each other so that they can collaborate effectively. We at head office really support this and have programs where we send people to units around the world to gain this type of useful experience.

Q: But passion does not come automatically. How do you instill this in the organization?

A: You’re right, passion does not come just like that. At Panalpina it starts at the top – with me. I am a passionate person myself; if I do something I make sure that I do it absolutely right. The management team is similarly engaged and we do a lot of training where this aspect plays a big part.

And for the organization, we recently went through a restructuring which involved flattening of hierarchies, and now 21 world areas report directly to head office. We at the top need to be close to what’s going on, not sitting far away in some ivory tower.

Q: And finally, some thoughts on the rest of 2009?

A: This year, just in Asia, we have already launched a major facility in Singapore and opened up our own office in Vietnam. These are clear commitments to the region through providing local services to the highest level of professionalism that we can and to expand our global network. While keeping an eye on and adapting to developments in the global economy, we will look to make further investments. So we are certainly not stopping yet.

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OPENINGS IN ASIA

In February, Monika Ribar flew in to Singapore to inaugurate Panalpina’s new Distribution and Logistics Center. The complex includes a 8,500 square meter warehouse assigned as Panalpina’s main regional cross-dock and merge-intransit hub in Southeast Asia, and a 4,500 square meter facility that has been developed as a Pharmaceuticals and Healthcare hub designed to meet specific industry and regulatory requirements for the storage and handling of medicinal products.

April 2009 saw Ribar returning to the region, this time to Ho Chi Minh City, to open its first wholly-owned office in Vietnam. Like the new Singapore facility, the new office is located close to the main international cargo terminal. She emphasized in her speech that Vietnam plays an important role in Panalpina’s strategy to gain additional market share in Asia and to become the partner of choice for seamless supply chain management solutions.

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