[5] FNS Case Study

Pantos Busan Logistics Centre

Pantos / FNS

Contents Pantos Logistics (H.Q)

Pantos Busan Logistics Centre

1. History

2. Performance

3. Business Process

4. Global Network

5. Global Customer

1. Profile

2. Center Lay-out

3. The inside of Warehouse

4. Facility & Equipment

5. Security

6. BJFEZ Merit

7. Best Practice

8. Insurance & Certification

9. Pantos Proposal

FNS (US)

1. USA Network

2. FNS Service Overview

3. Warehousing

4. US Transportation

5. Custom Broker

6. Re-Forwarding to S. America

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Your Precision Planning Partner

Pantos Logistics

History Pantos continues its Global Expansion outside of its expertise in the AP Region, and has created infrastructure in Emerging Markets like South America, Mexico, Africa, India, etc. with the goal of becoming a Top 10 Global Logistics Company by the year 2020.

70’

90’ small to BIG

00’ local to GLOBAL

Vision 2020

10’ good to GREAT

Global 10 Global TOP TOP 10 물류기업 Logistics Company

Achievements Milestone  1977. Establishment of Bumhan Heungsan Corp.

 2002. Contract Logistics Provider for LG electronics

 1977. ㈜범한 흥산 설립

 2002. LG전자 해외물류 O/S

 1992. 범한종합물류㈜상호 변경

 2006. (주)범한판토스 상호 변경

 1992. Changed company name to PanKorea Express

 1994. Created Overseas Infrastructure

 1994. 해외 주요 거점 설립 시작

 2001. Contract Logistics Provider for LG Chemical

 2001. LG화학 해외물류 O/S

 2006. Changed company name to Pantos  2007. Created Non-LG Customer expansion strategy

  2010.

2007.Opened 다수의Busan Global Customer 물류 O/S logistics center   2011.

2011.156 37개국 105지역 네트워크 Global Offices, 148개 Logistics Centers, and Transportation Hubs in 40 countries serving 2800 Customers Worldwide.

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Global Forwarder Rankings Currently Pantos ranks 4th in ocean volume and 16th in air volume with annual revenues over $3 Billion as Korea’s largest Logistics company.

Global Ranking of Pantos  Volume of Sea Freight : 1,513,000 TEU  Volume of Air Freight : 330,500 TON

Transition of Revenue Unit: $B

 Air Volume: Worldwide 16th  Air Volume: Asia 5th

 Sea Volume: Worldwide 4th  Sea Volume: Asia 2nd

$ 3.0

$ 2.1

$ 1.5

 Revenue: Worldwide 26th  Revenue: Asia 5th 2006

2008

2010

Reference : Armstrong & Associate (2010)

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Business Process Customer Supply Chain Optimization. Pantos delivers an End to End Supply Chain Solution creating Visibility, Cost Reduction, and Cloud Based Systems Integration.

One Stop Total Service

Plan

Consignor (Factory, W/H)

Source

Trucking

Logistics Center

CY Terminal

Sea, Air, Rail Transport

Logistics Center

CY Terminal

Deliver

Inland Transport

Consignee (Factory, W/H)

Domestic ↔ Overseas International Export/Import Multimodal Logistics Service Container Transportation & Management ⊙ Warehouse Operation Export/Import Customs Service

Service

Pantos Business Sectors

Make

Int. Multimodal SVC • • • • •

Sea Air Sea & Air Project TSR/TCR/Charter

Express Service • International Express SVC • Exhibition Goods

Warehouse

Inland Transportation • Trucking • Railroad • Customs

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• • • •

Storage HUB CY CFS

Logistics Consultation • 3PL Consultation • IT System

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Global Network Pantos Logistics employs 3,500 Logistics Professionals Worldwide

Europe

Mid-East / Africa

CIS

Asia

America

UK Austria France Germany Italy Netherland Poland Spain Turkey

UAE Oman Saudi Arabia

Russia Kazakhstan Kyrgyzstan Ukraine Uzbekistan

Korea (Global HQ) Australia China Cambodia India Indonesia Japan Malaysia Singapore Taiwan Thailand Vietnam

USA Canada

Egypt Kenya South Africa

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Brazil Mexico Panama

2011. 3Q

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Customer Profile Pantos serves 2800 Global Customers in a variety of Industry Verticals Hi-Tech Hi-Tech Electronics Electronics

LG전자, 삼성전자, Dyson, AUO, Dyson, PHILIPS, TOSHIBA LG Electronics, Samsung Electronics, AUO,SONY, PHILIPS, SONY, TOSHIBA

Chemical Chemical

LG화학, BASF, GS칼텍스, SK화학, SK에너지 LG Chemical, BASF, GS Caltex,Dow Dow Chemical, Chemical, SK Chemical, SK Energy

Industrial Industrial Machinery Machinery

OTIS, LS산전, Thyssenkrupp , 한국전력 OTIS, LS IS, Thyssenkrupp, KEPCO

Engineering Engineering & & Construction Construction

GS건설, 포스코, 삼성엔지니어링, 현대건설 GS E&C, Posco, Samsung Engineering,두산중공업, Doosan Heavy, Hundai E&C

Automotive Automotive

한국타이어, 현대모비스, 넥센타이어, 금호타이어 Korea Tire, Hyundai Mobis, Nexen Tire , Kumho Tire

Consumer Consumer & & Retail Retail

LG하우시스, Beiersdorf, 롯데쇼핑 LG Hausys, GSGS홈쇼핑, Homeshopping , Beiersdorf, Lotte Shopping

Healthcare Healthcare & & Pharmaceutical Pharmaceutical Textile Textile

AbbottWoongjin , 웅진코웨이, ParashopKorean , 고려인삼, 정관장 Abbott, Coway,FEELUX, FEELUX, Parashop, Ginseng, KGC LG패션, 대우인터내셔널, 이랜드, Huvis LG Fashion, Daewoo International,E-Land,Huvis

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Your Precision Planning Partner

Pantos Busan Logistics Centre

Profile Pantos Pusan New Port Logistics Centre  Registered name : Pantos Pusan Newport Logistics Centre Co., Ltd.  Date of establishment : 2008. 7. 18 W/H service open : 2010. 9. 3  Address : Yongwon dong 1321 Jinhae Ku, Changwon, Kyungsang nam do  Capital : 5500,000,000 Korean Won - Overseas share 49% (Foreign investment)  CEO : Mr. Jae Hoon, Bae

Size  Total site area : 26,962 ㎡  Total floor area of building : 13,987 ㎡ → Warehouse area: 10,574 ㎡

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Features This state of the art FTZ facility handles multiple temperature and humidity zone cargos, Dangerous Goods, Rack and Non-Palletized Cargo, and a large CY to provide Bulk and Special Project Cargo Storage and Distribution Services.

canopy Main W/H

Pallet Rack

T E M P / H U m

Rack Storage Flat Storage

653 ㎡

9,471 ㎡

Constant temp/ Humidity chamber

581 ㎡

DG goods

CY

Dangerous Goods W/H

5,973 ㎡

508 ㎡

OUT

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IN

Container Yard

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The inside of Warehouse Pantos Provides Customized Warehousing and Distribution Services including short-term Special Projects, to long-term Contract Logistics Outsourcing.

[FLAT STORAGE]

[IMPORT/EXPORT LCL]

[RACK]

[YARD]

[CONSTANT TEMP/HUMIDITY CHAMBER]

[DANGEROUS GOODS]

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Facility & Equipment All Weather Capabilities Maintain Maximum Workflow and Velocity Facility & Equipment

Quantity

Truck Dock Leveler

7

Canopy (Truck Unload / Load)

1,314 sqm

Reach stacker

1

Weighing Scale

1 (5Ton)

Folk lift

8

Main Fuction

Picture

• Variable Height Capabilities for container stuffing

• All Weather Mobile Canopy System

• Container loading and relocation

• Weighing

• Stuffing / De-vanning / Picking facilities • 4.5T 5 units • 5.0T, 2.5T, 2.0T 1 unit each

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Security CCTV  Installed 47 CCTV

Monitoring tower  Real time monitoring

Finger print System  Control visitor access

Security guard office  Security Checkpoint 24/7

Security System  Installed sensor on the fence & Gate

 Install CCTV inside and outside of warehouse for monitoring 24/7 Night Security with infrared sensor  Security Guard Controlled Checkpoint with 24/7 coverage

Reliability & Safety

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Busan Jinhae FEZ* Value (Tax Free Zone) Bonded Area

Free Trade Zone

Domestic Freight Withdrawal Declaration

Immediate Declaration

No Need to Declare

Import Freight Limitation Period

Within 15 days of Declaration

No Set Period

Maintenance

Confirmation Needed

Confirmation Not Needed

6 Months

No Set Period

(Labeling, Dismember etc)

Bonded Freight Storage Period

* BJFEZ : Busan-Jinhae Free Economic Zone Your Precision Planning Partner

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Customer Logistics Hub Example 1 1

Export / Import Warehousing, Releasing, Inventory management Warehousing Procedure

Unloading/ Deveining/Checking

Location placement

Location Management Location Location Management Management

Inventory Management Inventory Inventory Management Management (D/W/M) (D/W/M) (D/W/M)

Releasing Procedure

Picking

Labeling

Stuffing/Checking

Shoring/Loading

Customer Service : Custom clearance, Operation trucking service, Warehouse in & Out managing, Settlement

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Customer Logistics Hub Example 2 2

Northeast Asia Global Hub (In Flow)

Current Dist. Model

China

New Dist. Model

To-Be

USA

Japan

Southeast Asia

China

USA

Japan

Southeast Asia

 US Company supply to Korea, Japan, China, South-East Asia countries directly by LCL (Sea or Air)

 Transported to Busan Logistics Center via FCL, sorted by destination then continue shipping by consolidation

 Reduced Logistics Cost (Air Freight Cost + Low Busan Logistics warehousing costs)  Quick transportation to North-East Asia Region increasing Logistics efficiency

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Customer Logistics Hub Example 3 3

Northeast Asia Global Hub (Out Flow)

New Dist. Model

Current Dist. Model USA

China

USA

China

Southeast Asia

Southeast Asia

 Individual transportation of manufactured goods from China and South-East Asia to US (Long Distance, Frequent)

 Goods from North-East Asia gather at Busan Center (Short-Distance) to be transported to US/Europe (Minimizes Long-Distance Flights)

 Utilize Busan Center's Location which is in the center of North-East Asia  Reduced Freight costs (Sea, Air)

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Customer Logistics Hub Example 4 4

Value Added Distribution Services

Europe

USA Tianjin

China Qingdao

Korea

Nanjing Shanghai

South-East Asia Electronics Goods, Bicycle, Elevator, CKD disassemble / assemble / manufacturing cargo

China, Asia

Parts/Finished Goods

Parts/Finished Goods

Overseas Factory

Domestic Factory

Destination

Pantos Busan

Domestic Manufacture

Assemble/ Disassemble

US, EU

Packaging

Enclose Manual, Accessories etc

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Customer Logistics Hub Example 5 5

Joint Venture Logistics Center

Local CHUNGJU SEOUL

China

USA

Korea Japan

Africa

Latin America

South East Asia

Coffee, Tea, Corn, Wheat, Sugar cane , 1st Agricultural Product – Applicable for industrial products

USA, Latin America

Agricultural Processed goods

Origin

Origin

The third party

Pantos Busan

Africa Collect

Classifica tion

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China, Japan South East Asia

Distribution Manufacture

Import

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Insurance / Certification  Comprehensive General Liability Insurance Total Limit of Liability : $10 Million USD

Cargo

 Fork-life Liability Insurance (Employee accidents included)  Building Fire Insurance

Facility & Equipment

 Commercial general liability insurance (Fork-lift)  Commercial General Liability Insurance (Reach Stake)

Transportation

ISO 9001-2000

 Marine, Aviation Transport Multimodal Insurance (MAT, MMIP)

ISO 14001

ISO 28000

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TAPA

AEO

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Pantos Value Proposition

Provide Optimized Logistics Solutions through Partnered Outsourcing Reduced Freight Cost

Reduced LEAD TIME

High Quality Logistics Service

Pantos Busan * Proven Logistics Expertise in the AP Region * Customized Customer Solutions * Committed Management & Resources

Customer

Win - Win

* Improve Logistics Process * Reduce Freight Cost and increase Supply Chain efficiency * Establish a trusted Partnership

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Pantos/FNS, Inc.

USA Infrastructure 13 Offices in USA Seattle, WA

Chicago, IL San Francisco, CA

Bolingbrook, IL

New York, NY Englewood Cliffs, NJ

Fontana, CA Los Angeles, CA

Atlanta, GA Dallas, TX

Laredo, TX McAllen, TX

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Miami, FL

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FNS Service Overview

 Cargo Tracking Service  Document EDI  Project Cargo, Break Bulk, etc..

 Sea & Air Service  TSA Certified  Consolidation

 Integrated System  Cargo Visibility  EDI Billing

OCEAN AIR

I/T

CUSTOMER CHB

W&D  WMS  CFS  8 Location (US)

TKC

 Data EDI  Nationwide Coverage  ABI Certified  Web Based System

 Long Haul Service  Container Drayage  LTL, Bob-Tail

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FNS Service - Warehousing We maintain the highest level of security and quality assurance. We specialize in handling chemical products, high-valued shipments, and electronic goods. We have inventory control maintenance program via WMS. Hub Warehousing service is provided for customers’ needs.

- CCTV VIDEO MONITOR - SECURITY CAMERA - SECURITY GUARD ON SITE - BONDED WAREHOUSE(CFS)

Seattle, WA WESTERN

MID-AMERICA

EASTERN

San Francisco, CA Chicago, IL

Fontana, CA Los Angeles, CA Western

4 Warehouse

442,100 SQFT

Mid-America

3 Warehouse

30,300 SQFT

Eastern

3 Warehouse

45,000 SQFT

Total

9 Warehouse

517,400 SQFT

New York, NY

Atlanta, GA Dallas, TX Miami, FL McAllen TX

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FNS Service – US Transportation Domestic Transportation Capabilities include Dry/Temp Controlled Full Truckload, Flatbed, LTL, Intermodal, Dedicated, Drayage, and Local Cartage.

We offer expedited truckload services coast to coast, serving all 48 states in continental US, and additional service options to CANADA and MEXICO. Systems Integration and Visibility with Pantos PVS - High Value Cargo Handling and Transportation Expertise - Customized Transportation and Distribution Services - 24/7 Shipment Tracking and Visibility

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FNS Service – Customs Broker Strengths Competency

■ Customer Benefit

 Multiple Location  National Permit (RLF)  Automated Broker Interface (ABI) Certified

 Nationwide Coverage

System

 Web-based System : Smart Border

 Paperless  Record Keeping on the Web

Service

 Automated Clearing House  Data EDI

 24/7 access  Reliable Partnership

■ Process Web Base, Paperless

CUSTOMER FNS CHB SMART BORDER Your Precision Planning Partner

US CUSOMS

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FNS Service – Re-forwarding to S. America Function Hub, Re-Forwarding, Air & Air Main Carrier Mercury, ABSA, Polar, etc. Frequency 3-5 Times Weekly Delivery Point San Paulo, Manaus, etc.

Miami Los Angeles Mexico City

Panama City Bogota

Function Hub, Re-Forwarding, Sea & Air Main Carrier Lan-Chile, Varig, Cielos, etc.

Manaus

Lima Sao Paulo, BR

Frequency 3-5 Times Weekly

Buenos Aires

Delivery Point San Paulo, Manaus, etc.

Santiago

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From Overseas T/S Route FNS, Inc. Office Service Point

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Contact List Busan Logistics Center

Pantos Busan Logistics Center Address : 경상남도 창원시 진해구 용원동 1321번지 Contact Person : Mr. Hun Young Min * Tel : 055-540-1300 / M.P : 011-8481-0408 * E-Mail : youngmin.heo@pantos.com

FNS USA (Pantos)

Pantos/FNS USA(HQ) Address : 18301 S. Broadwick St. Rancho

Pantos Logistics(HQ)

Dominguez, CA 90220

Pantos Logistics (HQ)

Contact person : Terrence Bro

Address : 서울 영등포구 여의도동 23-3

* Tel : 651 728-2367 office/cell

Contact Person : Mr. Lee Jong Chul

* E-Mail : terrence.bro@pantos.com

* Tel : 02-2036-8683 / M.P : 010-4177-9704

Contact person: Marcelo Baek

* E-Mail : jongchul.lee@pantos.com

* Tel: 310 667-4893 *E-Mail : marcelo.baek@pantos.com

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