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SCM
Full transparency
Panalpina maintains three further VMI (Vendor Managed Inventory) hubs on behalf of
Celestica. Two of them are located in the Czech Republic (Prague and Brno). In accordance
with Panalpina’s “asset-free” strategy, they are, just as in Oradea, run by an external
logistics and warehouse manager. A rule book drafted by logistics specialists from
Panalpina lays down the precisely defined tasks, responsibilities and competencies of the
management firm.
The third VMI hub is situated onsite at the Celestica plant in Vimercate near Milan.
Panalpina staff ensure its smooth functioning with the support of Panalpina’s own Warehouse
Inventory System (WIS), an innovative IT system that was launched at the beginning
of 2005.
Thanks to the specially developed SCV (Supply Chain Visibility) module, Celestica has
all the information it needs at its fingertips. Regardless of whether Panalpina outsources
its warehouse activities to subcontractors or operates the site itself with its own WIS
application, the customer can call up information on stocks and inventories at any time.
Suppliers are also connected to the system, naturally with access to information related
to their own goods only.
With its three innovative tools, SCV (for transparency), the rule book (defining procedures
at warehouse partner companies) and WIS (for own warehouse activities), Panalpina
has genuine added value to offer to its customers.
Lower-cost labour is not the only decisive
factor, and Celestica even provides development
assistance to Romania’s national economy.
What exactly is Celestica producing
in Oradea?
“I cannot disclose the specifics, but I can tell
you that we manufacture goods whose final
destination is Western Europe. Their distribution
is mainly via the road network”.
But we have never seen the Celestica
name on any electronic device ...
“This is part of our policy”, Williamson said.
“It is important that we keep the work we do
for our customers confidential.”
Where do you get the raw material
and perhaps the semi-finished
products Celestica is processing in
Romania?
“Most of it is procured in Asia, in part also
in the Americas and in Europe. We use
several methods of transportation, one of
which is airfreight.”
24 connect 2_2005
And how do you find the right
logistics provider, which fits into the
whole picture?
“When choosing a logistics provider we are
primarily looking at tangible factors like
what the company can do, what its abilities
are. In Romania, we are working with Panalpina.
We have concluded a "master transport
agreement" with a number of addenda
regarding imports and exports. This is in
accordance with our primary partner model
which proved its worth in western countries.”
Will Celestica – like other big international
companies – reduce the
number of its logistics providers?
“By means of a global request for quotation
(RFQ) process, we have reduced the number
of our logistics providers from about 20
to just three global partners. Panalpina is
one of them. Panalpina is a depended supplier
in airfreight. Besides that, we are cooperating
in contract logistics and have
out-sourced some activities to Panalpina.”
“We have other suppliers that move
small parcels. Besides that, we have suppliers
in ocean transportation and, by
region, in ground transportation. So we are
working with several forwarding partners.
Of course we keep trying to optimise
wherever this is possible.”
What do you most like about Panalpina?
“I particularly appreciate our good and
lasting relationship, and our cooperation.
We communicate with the senior management
in a direct and straightforward way.
We also have the same business values.”
And what is your biggest worry
today?
“Right now it is the flood and its aftermath
in New Orleans, even if it has not directly
hit our company. Then it is the price of fuel.
This has a huge impact on us, especially on
our logistics. It is comparatively easy to
pass on the additional cost as it hits everyone.
But I do wonder about the Global nature
of our business and the implications on
logistics?”
Interview Rolf D. Sulser