SHIPPERS SPOTLIGHT Asia
when you consider that across its manufacturing facilities within the Indian subcontinent alone LG Electronics imports about 35-40 percent of the required components, which account for about 60 percent of product outlay in value terms.
Outsource decision Nowadays, LG controls its supply chain through Korea- headquartered Pantos Logistics, a responsibility that the manufacturing giant began to partially outsource in 2001 after taking the view that off-loading non-value added activities to a third-party provider can help create the space for a company like LG to focus on adding strategic value to its own core operations. Established in 1977, Pantos Logistics –
now bolstered by the work from LG – has grown steadily from its origins as an air freight agent to become the number one logistics business in Korea and one of Asia’s largest third-party logistics (3pl) providers, offering a full range of services related to export/import, air, ocean, railroad and overland road transportation, Customs clearance, warehousing, bulk and project cargo, international express and the provision of integrated logistics solutions. Pantos first secured contracts with LG
by working alongside the company to identify the opportunities to reduce cost and lead times in its supply chains, through increased used of multimodal transportation options as well as the advantages that could be gained by the increased use of automated logistics processes and the provision of improved visibility in the supply chain. Here it utilises its Pantos Visibility System to integrate global visibility and systems connectivity across the supply chain. Air logistics plays an important role in
the business strategy at LG that is well supported by Korea’s two major cargo- carrying airlines – Korean Air Cargo and Asiana Cargo – as well as its access to more that 50 of the world’s large freighter airlines and integrators UPS, FedEx and TNT, which all serve Incheon
International airport on a regular basis. As Korea’s number one air freight
provider, Pantos Logistics opened its 16,000m2
Incheon Airport Logistics 45,000ft2
Center inJuly 2006. Ranked as the world’s fourth-largest cargo airport by volume in 2010, Incheon experienced a blip in 2011, in common with most airports, as its freight throughput fell by 6.2 percent year-on-year. Early this year, Pantos added a second air freight logistics centre
located adjacent to the existing facility, enabling the company to offer an increased amount of space to its customers, making it the largest operator in Incheon airport’s free trade zone. Pantos Logistics is regarded by some
as a ‘hidden champion’ – a term that describes firms that shine in the international arena but are little known outside their own field. But now equipped with a powerful network and service prowess, Pantos is looking to step out of the shadows. “Korea’s expeditious economic ascent
gave birth to new global powerhouses in the electronics, steel and shipbuilding industries but has yet to produce one in logistics,” Pantos Logistics president and CEO Bae Jae-hoon told national newspaper The Korea Herald recently.
ALM
Air logistics plays an important role in the business strategy at LG
AIR LOGISTICS MANAGEMENT 11
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