AN OPEN DOOR POLICY

AN OPEN DOOR POLICY

RALPH RIEHL, managing director of Southeast Asia area at Panalpina, believes in having open communications with both customers and staff . He shares his views with LEE KOK LEONG.

The Panalpina Group offers global endto- end supply chain solutions tailor-made to customer’s business needs. It operates a global network of 500 branches in over 80 countries. Panalpina employs 15,000 people worldwide. Ralph Riehl assumed his current appointment in April 2011. Prior to this, he has worked for Panalpina in the US for 13 years in various roles. His last position was senior vice president of marketing and sales for USA. He has been working for Panalpina for a total of 22 years.

Q: Tell us more about the recent launches of three new LCL direct services from Asia to Rotterdam.

A: Panalpina recently launched three new own operated direct LCL services through its in-house carrier Pantainer Express Line. The new guaranteed weekly services, Shanghai to Rotterdam, Hong Kong to Rotterdam and Singapore to Rotterdam, will help to further optimize supply chains between Asia and Europe.

Cutting down transit time by two to four days will potentially reduce inventory costs for clients and because the services are more direct, CO2 emissions are reduced.

We will also be launching another three new guaranteed weekly LCL services connected to Singapore from Haiphong (Vietnam), Phnom Penh (Cambodia) and Cebu (Philippines) shortly. This will serve as a reliable alternative to existing Full Container Load (FCL) and air freight services.

This is part of an ongoing process aligned to our global growth strategy with a very strong focus on the Asia trades. We have a group of LCL specialists who continuously look at new or optimized routes. If we cannot bring value to our clients, we will not maintain a sustainable and profi table growth model.

Q: How did Panalpina improve profi tability in the first half of 2011 despite a slowing environment?

A: It’s a combination of two factors. First of all, this is a very fragmented market. The top 10 freight forwarders in the world control only a small portion of the overall pie. Extending your portfolio or getting more customers is not, in my opinion, rocket science. There is so much market share out for grabs and we had a lot of organic growth in 2010. Secondly our strategy is to have a focused approach to customers based on long term relationships. We cannot be everything to everybody. Being close to clients and experts in their industries is fostering value in a win-win environment. We are looking to move from a tactical to a strategic partnership.

Aggressively pursuing industry verticals is one of the things we have done. And then you have to be clear in what you want. Depending on the state of the economy or demand and capacity, we can decide to invest in new customers at reduced margins. If those clients cannot be turned over time into a mutual value proposition we need to be prepared to sit down with them and have this conversation. Sometimes, the outcome turns into hard decisions and we have to get rid of unprofi table business.

Last year, Panalpina terminated certain high-volume, low-margin contracts. This has had an eff ect on volumes but clearly helped us to improve profi tability. We focus on those customers where we can add real value and that are willing to pay for it. Quality has its price.

Q: Any specifi c plans for Southeast Asia?

A: I have a strong sales background so I am here to push the sales development in this region. A lot of companies are moving their decision centers to this part of the world. The companies we want to do business with and those we are doing business with have decision makers here. We have to be where our customers need us.

There is plenty of room for growth in this market. You can look at any trade statistics or forecasts. Fact is Asia remains the growth engine of the world. This is where we have to focus. I think we can grow bigger than what we are today, despite tough competition and that is my mission.

Q: Please elaborate on the supply chain management solutions and the sectors served.

A: Here as well focus is the key word. We service 10 industry verticals: Hi- Tech, Telecom, Fashion, Consumer and Retail, Manufacturing, Automotive, Healthcare, Chemicals, Oil and Gas, Industrial Projects. Every single one of these industries has different needs, so our solutions will adapt to those specifi c needs. We range from a holistic approach with complex supply chain solutions to simple transport or storage and distribution. Our key objective remains to manage those solutions around our core activities of Air Freight, Ocean Freight and consequently complemented by Supply Chain Services and Value Added Services in Logistics. Our specialists take into account the optimization of all activities around information, material and fi nancial fl ows.

Q: How would you describe your leadership style?

A: My leadership style is creating a clear organization structure and utilizing the resources of all team members. Teamwork is central to my management style. For me, it is really providing a supportive, participative, responsive direction for my team. I have an open door policy, so my team can come to me anytime, any day. We will sit down and talk about things openly and hopefully come to an agreement. Being aligned and generating buy-in is the easier way to drive change management.

Coming from the USA where I spent 13 years, people have been telling me to prepare for a very different culture in Asia. This is certainly true, but I believe that when you create an environment of trust where you give people a chance to speak up and voice their ideas, whether in US, Europe or Asia, people are willing to share their experiences and ideas. And so far, I can say it has been a great journey. I am impressed by the willingness of our staff to question status quo. They live by our corporate values of Performance, Integrity and Professionalism, to making Panalpina an employer of choice! If I have to use one word, then I have to say my management style is responsive.

Q: What is your view on talent management? A: We are in the people’s business. The biggest investment decision I make is hiring talent. Mistakes are very costly, so I think I ought to spend a good chunk of my time on talent management but in reality we are not always doing enough because daily workload can get in the way. Panalpina invested a lot of time and resources in the last five years in developing our talent and bench strength. We realized that if we cannot develop talent and create a global work force, we won’t be able to remain an employer of choice. I encourage my management team to take a step back on a regular basis, really spend time analyzing their talent pool and succession plan by telling me what unique skills these individuals bring to the team and rank their abilities and competences.

I know this is very time consuming but this exercise is an eye opener when it comes to talent pipeline and the areas we can improve on. It is a question of survival. We will only provide the best customer service, create the best solutions, stand by our values, if we have people who can think like our customers, on behalf of the customers and with the customers.

Q: How do you see the future of Panalpina Singapore?

A: We can do much more in this region. For me this is the logistics center of the world. We are planning on investing in all three countries: Singapore, Malaysia and Indonesia and expanding our footprints. The legacy I want to leave behind is a legacy of team success. We can continue to grow double digit for the foreseeable future. Singapore offers the talent, infrastructure, education, and business environment we need. The major companies are here and decision makers are here. I plan on building up the second and third layers of management and develop local talents into the next generation of leaders, deployable anywhere in the world.