Pan­tos Lo­gis­tics: An op­ti­mal point for busi­ness

To­tal lo­gis­tics so­lu­tion provider, Pan­tos Lo­gis­tics, has carved a niche of its own for the past 16 years and is ex­pand­ing in a big way. The com­pany has plans to in­vest $100 mil­lion this year and next year. Lee Joon, Re­gional CEO/Sr. Vice Pres­i­dent, Pan­tos

Cargo Talk - - Industry Interview -

Please elab­o­rate your busi­ness model.

Pan­tos came into In­dia in 2002. We started our busi­ness with freight for­ward­ing. We are a LG af­fil­i­ated com­pany. Later, we shifted our whole dis­tri­bu­tion busi­ness to Pan­tos and fo­cused on lo­gis­tics busi­ness. The func­tion­ing in­cluded pick­ing goods from LG fac­tory and de­liv­er­ing it to the end cus­tomer, that is, the dealer. The pri­mary trans­porta­tion is be­ing man­aged from our fac­tory to dif­fer­ent ware­houses in In­dia, and then to the cus­tomers. Gain­ing an edged on trans­porta­tion, Pan­tos ini­ti­ated end-to-end so­lu­tions. We re­cently re­ceived a cus­tom clear­ance li­cense.

What are your ex­pan­sion plans?

We are plan­ning to con­struct ware­houses in Gur­gaon, Bengaluru, Chen­nai, Pune, Mum­bai and Hyderabad. Our plan is to con­struct at least 200, 000 sqft ware­house at one lo­ca­tion. This is the first phase. The sec­ond phase will fo­cus on ma­jor cities like Ahmed­abad and Kolkata, where the busi­ness scope is huge. Th­ese ar­eas will be a hub for dis­tri­bu­tion af­ter GST im­ple­men­ta­tion. Presently, we are in FMCG, con­sumer durables, chem­i­cal and au­to­mo­bile in­dus­try. Due to an in­crease in ex­ports, we have started op­er­a­tions in gar­ments and are also plan­ning to come up in the pharma seg­ment, due to a grow­ing de­mand. In­dia is one of the big­gest hubs for generic ex­port. We are tak­ing it as a ver­ti­cal rather than a cus­tomer­centric mar­ket. We are eye­ing neigh­bour­ing coun­tries like, Sri Lanka, Bangladesh for im­port and ex­port. We will fo­cus on trans­porta­tion and cus­tom clear­ance in In­dia and are reg­is­ter­ing our­selves at all sea ports and dry ports of In­dia to offer best ser­vice.

Do you have your own fleet of ve­hi­cles?

At present, we have around 10 ve­hi­cles of our own, but we have leased some for trans­porta­tion. Around 150 trans­porters are work­ing with us, ded­i­cat­edly. Our plan is to own more than 1000 ve­hi­cles in next one year.

Lee Joon Re­gional CEO/Sr. Vice Pres­i­dent Pan­tos Lo­gis­tics Our plan is to con­struct at least 200, 000 sqft ware­house at one lo­ca­tion

We are aiming to cap­ture In­dian mar­ket in a big way. With our own trans­porta­tion net­work, we can lever­age more in terms of pric­ing, vis­i­bil­ity, fast de­liv­er­ies.

What is your USP?

We are a sin­gle point con­tact pro­vid­ing to­tal lo­gis­tics to cus­tomers. We have pres­ence across the world. This gives us bet­ter con­trol, bet­ter com­mu­ni­ca­tion and swift ser­vices to stay ahead of com­peti­tors. With the aim to fo­cus on high­tech­nol­ogy in­for­ma­tion sys­tem, we have also de­vel­oped satel­lite con­nected IT sys­tem to mon­i­tor the ves­sel and ship­ping lines, of­fer­ing cus­tomised so­lu­tions to our cus­tomers.

How have you taken the GST im­ple­men­ta­tion?

We have started di­rect de­liv­er­ies af­ter GST. Here at LG Group, al­most 25 per cent of the ma­te­rial is de­liv­ered di­rectly from the fac­tory to dealer’s ware­house. GST will boost the busi­ness, but it will take some time be­cause the coun­try’s in­fra­struc­ture is still at lax. The cus­tomer, let’s say a dealer or dis­trib­u­tor, is also not ready with the space and in­fra­struc­ture to get that ma­te­rial. Eighty per cent of the in­dus­try is un­or­gan­ised and the ware­house in­fra­struc­ture is also not read­ily avail­able for con­sol­i­da­tion. It may take around two years to es­tab­lish a suited ware­hous­ing and trans­port net­work. The boom is in the sense of con­sol­i­da­tion, but size will re­main the same. With GST, long dis­tance trans­porta­tion will in­crease, en­abling hubs to come up in ma­jor high­ways. The cost and in­ven­tory man­age­ment will be bet­ter and due to con­sol­i­da­tion in­ven­tory, will come down rather.

What is your take on ever-grow­ing e-com­merce lo­gis­tics? How is Pan­tos tak­ing ben­e­fit out of it?

There is a def­i­nite growth in this sec­tor. Be­fore GST, e-com­merce com­pa­nies used to have ware­houses ev­ery­where. Now, ma­jor­ity of the prod­ucts are be­ing sent via courier ser­vice and there is less re­quire­ment of a small ware­house at ev­ery lo­ca­tion. We have started sup­ply­ing to e-com­merce com­pa­nies and now we are in dis­cus­sion with them for ware­house man­age­ment. At present, we have 2.5 mil­lion sqft area in In­dia through 38 ware­houses. We are in dis­cus­sion with few com­pa­nies on us­age of pal­lets in our ware­house. There are two stages to ex­e­cute this; firstly, on man­ag­ing ware­house space and sec­ondly, to chart out a way to use our ware­house as theirs for di­rect sup­ply to cus­tomers. This re­duces trans­porta­tion and han­dling cost.

What is your trans­porta­tion model?

In In­dia, we offer trans­porta­tion ser­vice by road, rail, air as well as sea. We use coastal ship­ping mode of trans­porta­tion, ma­jorly for the South, that is, from Noida to Ker­ala; we are man­ag­ing by road and sea route in Gu­jarat. From Pune to East, we use road and rail route to Kolkata and Guwa­hati. The rest of the coun­try is man­aged by road. We are also han­dling goods by air in a few parts, de­pend­ing upon the re­quire­ment of the cus­tomer and in­ven­tory man­age­ment.

Newspapers in English

Newspapers from India

© PressReader. All rights reserved.