SOURCE: SAP

May 14, 2008 03:00 ET

Panalpina to Modernize Freight Handling With SAP

SAP® Transportation Management Helps Logistics Services Providers to Enhance Business Network Collaboration and Drive Effectiveness in Core Logistics Operations

WALLDORF, GERMANY and BASEL, SWITZERLAND--(Marketwire - May 14, 2008) - SAP AG (NYSE: SAP) today announced that Panalpina, one of the world's largest providers of logistics services, will deploy the SAP® Transportation Management application to help modernize the core transportation and logistics functions of its air and ocean freight businesses. With SAP Transportation Management, Panalpina will implement a logistics applications platform that connects its suppliers, partners and customers into a collaborative business network. Core transportation and logistics operations will be managed on the network, allowing unprecedented levels of inter-company collaboration, resulting in cost reductions, improved billing accuracy, enhanced shipment visibility and automated shipping operations. This initiative extends Panalpina's existing relationship with SAP in deploying standardized business processes.

Panalpina is one of the world's leading suppliers of forwarding and logistics services, specializing in intercontinental air and ocean freight shipments and associated supply chain management solutions. The company operates a network of over 500 branches in more than 90 countries. SAP Transportation Management supports all of Panalpina's modes of transport and includes core processes that improve collaboration and enable real-time shipment notification. In addition, Panalpina can now more readily position its service offerings to customers working with SAP systems and use the simplified integration to its SAP-based business network as a competitive differentiator.

"It is extremely important to us that the new IT solution provides clear business benefits to our customers," says Monika Ribar, CEO, Panalpina. "The majority of our own customers and partners are already on SAP, which greatly improves standardization and communication between our systems. New application extensions can be quickly added to the system when needed and non-SAP systems can also be tied in easily. With SAP Transportation Management, Panalpina now has a business network that can promote growth over the next five to ten years."

SAP Transportation Management Increases Competitiveness of Logistic Services Providers

SAP Transportation Management was released to the logistic services provider (LSP) market in November 2007 and is a core part of the SAP® Business Suite family of business applications. The application is built from the ground up to address the specific needs of LSPs and the shipper industry. Built on the SAP NetWeaver® technology platform and fully services-enabled, SAP Transportation Management allows deeply integrated business processes across various software applications and across organizational borders. This level of integration is becoming increasingly important as today's shipping and transportation processes progressively involve a diverse set of organizations that work together to orchestrate not only simple physical logistics movements, but also responsive supply chains.

By enabling them to effectively support the demands of their customers, LSPs can leverage SAP Transportation Management to help become more competitive in their target markets. Logistics services firms are expected to provide predictable, timely and cost-effective services in a complex and globalizing market. Therefore, technology plays a critical role in the growth and profitability of organizations in this highly competitive industry.

SAP Transportation Management offers comprehensive capabilities in freight management, transportation dispatching and execution, transportation charge management, and integrated financial oversight in customer billing and freight auditing. It supports all land, sea, multi-modal and air modes, including multi-leg, parcel, buy/sell-side rating, tendering, freight contract management, documentation, planning and execution. These functionalities are all interconnected to create a holistic solution for end-to-end business process execution within and across company boundaries.

"By co-innovating with our customers and partners, SAP was able to precisely define the 21st century solution for the shipping and transportation industry," says Till Dengel, vice president and head of Industry Business Unit, Travel & Logistics Services, SAP AG. "The industry has become increasingly complex. With ongoing global expansion and intricate multi-customer relationships, business networks have lagged because technology couldn't deliver. SAP Transportation Management fills that technology gap, empowering logistics service providers with a comprehensive toolset for navigating this new landscape."

About The Panalpina Group

The Panalpina Group is one of the world's leading suppliers of forwarding and logistics services, specializing in intercontinental air freight and ocean freight shipments and associated supply chain management solutions. Thanks to its in-depth industry know-how and state-of-the-art IT systems, Panalpina provides globally integrated door-to-door forwarding solutions tailored to its customers' individual needs. The Panalpina Group operates a close-knit network with some 500 branches in 90 countries. In a further 60 countries, it cooperates closely with selected partner companies. Panalpina employs more than 15,000 people worldwide.

SAPPHIRE® 2008 Orlando and SAPPHIRE® 2008 Berlin

More than 15,000 customers, partners and technical experts are convening at SAPPHIRE 2008 to discover how SAP and its thriving partner ecosystem are delivering IT solutions that create value beyond the four walls of the enterprise, to create "business beyond boundaries." SAP's premier educational and networking event, SAPPHIRE, is the one occasion where senior executives, business managers, and decision-makers can come together every year to explore how innovative business solutions foster long-term, profitable growth. SAPPHIRE® 2008 was held in Orlando, Florida, May 4-7, and is being held in Berlin, Germany, May 19-21, 2008. For more information, please visit www.sap.com/sapphire.

About SAP

SAP is the world's leading provider of business software(*), offering applications and services that enable companies of all sizes and in more than 25 industries to become best-run businesses. With more than 47,800 customers (excludes customers from the acquisition of Business Objects) in over 120 countries, the company is listed on several exchanges, including the Frankfurt stock exchange and NYSE, under the symbol "SAP." (For more information, visit www.sap.com)

(*) SAP defines business software as comprising enterprise resource planning and related applications.

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