Panalpina sees LMS as future of contract logistics

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Panalpina recently inaugurated its third Logistics Manufacturing Services (LMS) hub, located in Dubai, which followed openings in Sao Paulo, Brazil, in 2014 and Panama in 2015, confirming a concept that marks a radical departure from classic contract logistics focused on a simple warehousing and distribution model, senior executives told Lloyd’s Loading List.

“In adding LMS to our offering, we have set a benchmark for fully integrated, value-added logistics, and raised expectations of what a logistics service provider can do. It is the future of our industry,” said Panalpina’s global head of logistics, Mike Wilson, who has been largely responsible for its implementation at the Swiss global forwarding and logistics company.

“LMS is Panalpina’s response to a rapidly changing global manufacturing and supply chain landscape, which sees production moving closer to the end-user again and product life cycles becoming shorter. Customers are increasingly demanding customised and personalised products, with e-commerce the preferred purchasing channel, and where speed to market is the overriding imperative.

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