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world
LOREM IPSUM
1
M A G A Z I N E NO . 1 / 1 0
Integrated service solutions for
demanding customer industries
Hotel Logistics
Fairs & Exhibitions Logistics
Emergency & Relief Logistics
Kühne + Nagel World Nr. 2/2007
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CONTENTS
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Contents
Focus
Industry Solutions
4
Hotel Logistics
8
Fairs & Exhibitions Logistics
12
Emergency & Relief Logistics
16
Inside
New logistics hub for
the Hamburg region
18
Man of figures with a good heart
21
Markets & Products
Liquid logistics for the UK
and the Norwegian market
Imprint
Published by
Kuehne + Nagel International AG
P.O. Box 67, CH-8834 Schindellegi
Telephone +41 44 786 95 15
Fax
+41 44 786 96 90
E-mail: world@kuehne-nagel.com
24
Louis Vuitton: a distribution centre
with a showcase character
Editor
Robert Cathomas
30
Round the World
Strategic partnership with Hilti
Design and layout
Kaufmann Kommunikationsdesign
32
A high-voltage lead logistics solution
34
People & News
Kühne Logistics University Hamburg
35
Top-ranking trainees
Print
Wilhelm Zertani
Druckerei und Verlag
D-28001 Bremen
Frequency
Twice a year
Languages
English and German
Print run
33,000
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EDITORIAL
Dear Readers,
The contrasts between the “logistics scenes” which we present to you in this new issue
of our customer magazine could hardly be greater. What do luxury hotels and emergency accommodation, industrial fairs and concert halls have in common? All of them
would quite simply be unable to function without professional and efficient transport
and supply services. All kinds of major events are tied to tight time schedules, openings
of hotels or casinos demand a range of additional services that extends far beyond the
strict limits of logistics, and in the transport of relief goods high operational readiness,
experience and flexibility often help to save human lives.
Service packages tailored to the specific needs of different customer groups, such as
Kuehne + Nagel has successfully offered for many years, have the crucial advantage
that the logistician is not only a master of his own craft but also has a detailed knowledge of the relevant industry and its peculiarities. This makes it easy for us to understand the needs of the customers from whom we receive inquiries and offer them
tailor-made integrated solutions on the basis of our wide range of services and our
global network. The fields of hotel logistics, emergency & relief logistics and fairs &
exhibitions logistics, upon which we focus in the following pages, are examples of such
successful industry solutions.
We have a double cause to be proud of our offering in hotel logistics. On the one hand
because the decision to develop this attractive business segment is the result of an
innovative study project by our own young managerial talents. And on the other hand
because we have risen to the place of world market leader in this field. But it is a matter of no less concern for us to place our broad logistics experience and global capabilities at the service of those who undoubtedly need it most – the still far too numerous
victims of hunger, war and natural disasters throughout the world.
I wish you an interesting read.
Your Reinhard Lange
CEO Kuehne + Nagel International AG
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KUEHNE + NAGEL HOTEL LOGISTICS
• Logistics management in hotel and casino
new construction and renovation projects
• Transport, logistics and installation
solutions for furniture, fittings and equipment (FF&E)
• Supply Chain Management, warehousing
and distribution of consumables for guest
rooms (OS&E)
• Roughly 250 specialists deployed worldwide
• Regional competence centres in Las Vegas
(for North and South America and the
Caribbean), Macao (Asia-Pacific), Koblenz
(West, Central and Eastern Europe) and
London (Northern Europe and Africa)
....................................
Five-star logistics
offers a special kind
of “room service”
For the international luxury hotel and gaming industry, Kuehne
+ Nagel plans and implements turnkey transport, logistics and
installation solutions for large-scale construction projects and
efficient, comprehensive maintenance and supply concepts
It is now eight years since Kuehne +
Nagel began offering tailor-made service packages for international hotel and
casino operators, and the company is
now considered a market leader in this
special sector. The opening-up of this
attractive business segment is also a
major success story for the systematic
staff development scheme which the
Group operates for its talented young
managers.
In 2002 the graduating class of Kuehne
+ Nagel’s High Potential Training Programme was given the assignment of
making a detailed market study of the
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supply chain activities of large hotel
chains, in particular with regard to new
construction projects. After three months
of intensive research around the globe
with simultaneous training in international project management, the young
managers presented a product idea that
conformed to the specific needs of this
sector and was based on a concrete business plan. They presented a concept that
convinced the critical “jury” of the
Kuehne + Nagel Management Board –
and the Hotel Logistics department was
born. Only six months later, in the United
Arab Emirates, the first new contract was
obtained and successfully executed.
Kuehne + Nagel’s hotel logistics services are now well established in the market and the company enjoys first-class
customer relations with the world’s
leading operators of five-star hotels and
casinos and with hotel suppliers and
makers of luxury consumables. Coordinated by the four competence centres in
Koblenz, Las Vegas, London and Macao,
roughly 250 specialists from 16 countries are now working on many challenging projects for customers all over the
world. Since it entered the market,
Kuehne + Nagel has already successfully executed more than a hundred contracts and delivered and installed several thousand guest rooms in 19 countries.
Kuehne + Nagel is the clear market
leader in the special field of complete
solutions for the installation of furniture, fixtures and equipment (abbreviated as FF&E). This can mean everything
from laying carpets and assembling furniture to the installation and commissioning of telephone and multimedia
systems in the individual hotel rooms.
The logistics provider is also experiencing a growing demand for operating
supply and equipment (OS&E) concepts.
This includes the warehousing and the
delivery, as and when required, of con-
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sumables for guest rooms, wellness
facilities and other public areas of
large hotels and casinos.
In the expansion of its activities
Kuehne + Nagel’s policy is primarily
one of organic growth. However if
attractive opportunities arise it also
makes selective acquisitions that complement its existing activities. In
2009, for instance, Kuehne + Nagel
took over the Las Vegas-based special
service provider Quality Transportation Services Inc. This company, established as a freight agency in 1987, provides special services for the hospitality and gaming industry in North America. Its service portfolio embraces overland transport, warehousing and onsite installation; deliveries are made
from two logistics centres in the immediate vicinity of the Las Vegas Strip.
The acquisition has already allowed
the exploitation of attractive synergies
in the companies’ product and customer portfolios, and for Kuehne +
Nagel it has closed a last-mile delivery
gap in the North American and overseas markets.
www.kuehne-nagel.com/hotels
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By express freight charter
to the Kempinski in Doha
The German provider of top-class hospitality recently opened its first hotel
in the Emirate of Qatar, the 62-storey
Kempinski Residences and Suites
Doha. Kuehne + Nagel Hotel Logistics
specialists were called upon at very
short notice to organise the urgent
transport and customs clearance of
every conceivable OS&E article (such
as pillows, towels, glasses, kitchen
equipment etc.).
To accomplish this “mission impossible” despite the customer’s ambitious
time schedule, Kuehne + Nagel consolidated all goods delivered by the European suppliers at its logistics centre in
Koblenz. There the articles were
checked for the correct quantity and
quality, relabelled, pre-sorted in accordance with their intended use in the
hotel, and repacked. Kuehne + Nagel
saved further time by chartering a
freight aircraft at short notice and
speedily making out the customs documents so that the goods could be
imported with a minimum of complications. For safety’s sake a project manager accompanied them in the plane
to Qatar. Thanks to the excellent
preparations by the colleagues in
Doha, the MD-11 was unloaded in
what was probably a record time of
only six hours after its landing at 2
a.m., and the two hundred pallets
cleared by customs in the space of
only a day.
To save further time and the costs of
interim storage, the freight was delivered directly into the underground car
park of the new Kempinski. There, the
pallets were handed over to Kuehne +
Nagel staff who had been specially
flown in from the competence centre
in London. The customer was particu-
larly impressed by the subsequent HotBox Service, in which Kuehne + Nagel
manually groups together and portions
out the products for each guest room.
This involved the filling and labelling of
more than 1,000 boxes from which it
was an easy matter for the hotel staff to
quickly stock the 370 luxury suites,
restaurants and other public rooms.
Ms. Emel Atikkan, manager of the
Kempinski Resort, was extremely impressed by the efficiency of the service:
“Kuehne + Nagel have done an outstanding job, clearing our consignments
through customs, delivering the items
to the Residences, preparing the HotBoxes for the suites and leaving the
store in the basement in an orderly manner! They have bent over backwards to
assist us in every way possible.”
www.kempinski.com
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2,500 guest rooms
delivered and installed
in 21 weeks
At the beginning of the year Kuehne + Nagel tackled
a particularly challenging hotel logistics project. Under
an exclusive contract, the warehousing, delivery and
installation of furniture and fixtures for what is currently
one of the world’s largest hotel projects was completed
in record time
The Marina Bay Sands® Integrated Resort
is an architecturally spectacular complex
of buildings on a peninsula adjoining
Singapore. This “most expensive standalone integrated resort property ever
built” is being developed by the Las
Vegas Sands Corporation, the global
leader in the operation of casinos and
hotel installations. The building complex
consists of three 55-storey hotel towers
with more than 2,500 guest rooms. The
three towers are bridged by a unique
340 metre-long continuous roof terrace,
the SandsSkyPark ®. The facility also
includes a museum, shops and restaurants, and a 120,000 sqm congress centre with capacity for 45,000 delegates,
as well as two theatres and a casino.
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Apart from the substantial cargo volume,
a special challenge was presented by the
narrow time window prescribed by the
planners of this ambitious project for the
on-time delivery and installation of the
complete furnishings. Kuehne + Nagel
brought together some of its best hotel
logistics experts from its teams in America, Europe and Asia to take over the
warehousing and critical last-mile delivery for this historic hotel opening project.
Between January and May the project
team worked round the clock on a threeshift basis on six days per week. Working
their way up from the ground floor, they
were able to complete 17 rooms and
suites per day on average and hand them
over to the operators. An important role
was played by Kuehne + Nagel’s tailormade IT solution, which resulted in
better planning accuracy and reduced
administrative effort.
The winning of the contract for this large
project is a special testimony to the confidence placed in Kuehne + Nagel by a
world market leader in the hotel and casino industry; its punctual and successful
execution demonstrates the capabilities
of the logistics provider in material flow
management for the opening of hotels
and in the provision of turnkey customerspecific solutions.
www.marinabaysands.com
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MARINA BAY SANDS ® IN FIGURES
• Investment volume of more than 5 billion
dollars
• Construction team of 10,000 workers,
the largest ever deployed in Singapore
• Average completion rate: 1 hotel storey
every 4 days
• 12,400 sqm roof terrace 200 metres
above the ground
• World’s longest terrace swimming pool
with capacity of 1.4 million litres
• 8,000 sqm ballroom, the largest in
Southeast Asia
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Extreme logistics at 3,300
metres above sea level
No construction project is quite like
another, a fact that was recently
demonstrated in Peru, another country where Kuehne + Nagel is experiencing a growing demand for hotel
logistics services. There, Starwood
Hotels & Resorts, one of the world’s
largest hospitality groups with a global workforce of 145,000 and the operator of some 940 hotels (including
such well-known names as Westin,
Sheraton or St. Regis) recently opened
two new facilities as part of its Starwood Luxury Collection. On behalf
of the hotel owners, and in close cooperation with a supplier company,
Kuehne + Nagel’s competence centre
in Las Vegas implemented two individual plans for the transport and
turnkey installation of the hotel furnishings.
After the global consolidation of the
deliveries from all suppliers, the
goods and furniture components from
various origins were transported to
Peru by air and sea. There, Kuehne +
Nagel completed the customs formalities and stored the freight in halls
that had been specially rented to
house the goods prior to their delivery
by road to the two new hotel facilities.
The luxury resort in Paracas is a villa
and bungalow development on a
20-hectare site on the Pacific coast, a
two-hour drive from Lima. As the area
was affected by the most recent earthquake, transport posed a special challenge. The second destination, the
Tambo del Inca Hotel, is close to the
ruined city of Machu Picchu in
Urubamba at the heart of the Sacred
Valley of the Incas, and could be
reached by truck from the warehouse
in Lima only by a three-day drive on
roads which are always dangerous but
particularly so in the rainy season.
To ensure the smooth completion of
the two projects, Kuehne + Nagel sent
two hotel logistics specialists from Las
Vegas to Peru for a period of 18
weeks. They coordinated the delivery
of the goods to the construction sites,
where they supervised the work of
installing the furnishings and fittings
which was carried out by locally re cruited teams of joiners and furniture
packers. The unpredictable weather
and the extreme altitude were only
two of the many challenges.
The customer was highly impressed by
the punctual handover of all fully furnished and equipped rooms in both
hotels. Chief Financial Officer Francisco
Perez-Egaña said: “We are extremely
happy with our choice in nominating
Kuehne + Nagel as our logistics
provider. Their ability to manage the
entire supply chain and offer a true
turnkey solution allowed us to open
our properties efficiently and within
budget.” The customer has now
entrusted Kuehne + Nagel with another project: In connection with the construction of the new Westin Hotel in
Lima, the logistics provider will supply
and install the furnishings and fittings for 300 rooms and suites in
Peru’s tallest building in time for its
opening in October 2010.
www.starwoodhotels.com/luxury
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Making the fair an event
and the event a success
Kuehne + Nagel has been active in the international trade
fair and events logistics business for more than forty years.
Today, the Group has a strong presence at the booming
exhibition centres of China as well as at the leading trade
fairs of Central Europe or the USA
Although the special department Fairs &
Exhibitions Logistics is administratively
a part of the business unit Road & Rail
Logistics, it naturally also handles many
sea- and airfreight shipments. With its
specialised know-how in the trade fair
and event business, together with
Kuehne + Nagel’s broad range of services, it is able to offer the customer an
attractive overall package. The comprehensive service offering rests on three
pillars.
First, Kuehne + Nagel operates as an
accredited forwarder at a number of
international trade fair locations – in
Germany, for instance, at Cologne,
Munich, Hanover, Nuremberg and Düsseldorf. A second service package is tailored for the all-round support of
exhibitors over the whole transport
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chain from the customer to the exhibition site and back, including customs
clearance in the case of fairs held in
another country. The German Federal
Ministry of Economic Affairs and Technology, for instance, has for many years
trusted in the services of Kuehne +
Nagel for German official participations
at some 40 fairs and exhibitions annually all over the world. The third pillar is
events logistics for orchestra tours, guest
performances of opera companies, musical tours and product presentations in
the form of roadshows or stationary
events such as presentations of new car
models for the press and dealers.
Kuehne + Nagel offers the trade fair
companies and organisers, with their
exhibitions which are progressively growing into independent brands, high-quali-
ty transport logistics whose smooth
operation is a crucial factor for success.
This includes the early involvement of
the logistics provider in the planning
process to clarify the detailed requirements relating to transport and customs
clearance, the rapid handling of goods
on the trade fair site using modern
organising technologies and adequate
personnel, the rapid removal of packing
material and its delivery back to the
booth after the exhibition, and the punctual clearing of the halls to make way for
the next exhibition.
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The exhibitors themselves are already contacted by the Kuehne + Nagel specialists
in their home countries and informed in
detail about the specific transport requirements and customs regulations. Through
its own insurance broker Nacora, Kuehne
+ Nagel offers the customer comprehensive exhibition insurance which covers
intermediate storage during the transport
operation and the period when the goods
are present at the exhibition site itself. In
the case of complex trade fair appearances such as national participations or
large individual stands, the project managers of Kuehne + Nagel travel to the
exhibition sites and are at the customers’
disposal round the clock to assist in coordination and provide other support. The
same contact person, who knows the
needs of the customer in every detail, is
thus available throughout the duration of
the exhibition.
In events logistics, finally, it is particularly important to closely study the customer’s list of requirements, to check
time schedules and their feasibility, to
inspect event venues in advance, and to
respond flexibly to changes in the transport plan. Musical instruments of orchestras, for instance, which may be extremely valuable, must be transported at controlled temperatures, maintaining a con-
tinuous chain of between 18 and 20
degrees Celsius. Stage properties and
costumes of opera houses often have to
be packed and shipped immediately
after the performance, and in some cases flown to the place of the next guest
performance with special permits and in
fully chartered aircraft.
However different the detailed requirements of an industrial fair or trade exhibition, a large project presentation or a
musical tour, the logistics challenges are
generally highly complex and precise
compliance with the planned time
schedules is vital. The late arrival of a
stand element, a damaged product model or missing musical instruments could
quickly endanger the success of a major
event and seriously damage the image
of the customer – and, of course, the
logistics provider. In this field of business it is therefore particularly important for the staff to be at the service of
the customer at all times, and a plan B
must always be prepared and ready at
hand in case of emergencies. Kuehne +
Nagel’s specialists for trade fair and
events logistics have already demonstrated their extensive experience in
countless projects and thus contributed
to the excellent reputation the company
also enjoys in this special field.
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FAIRS & EXHIBITIONS LOGISTICS
• Roughly 120 specialists deployed worldwide
• Local teams of exhibition specialists in Bahrain, China, Czech Republic, Germany, Israel, Italy,
Japan, Mexico, Spain, Sweden, Switzerland, Taiwan, Turkey, UK, United Arab Emirates, USA
• Between 20,000 and 30,000 individual orders per year depending on the trade
fair calendar
• Highlights 2009: Bavarian State Opera (guest performance in Beijing), Bolshoi Theatre
(tour of USA), Lucerne Festival Orchestra (tour of China), Deutsche Oper Berlin (tour of
Japan), Prague Symphony Orchestra (tour of Japan), “Body Worlds” exhibition (North
America, Haifa, Singapore), Marlboro Events (Germany), BMW-World (official forwarder),
John Deere dealers presentation (Teneriffe) etc.
• Highlights 2010: Bauma Munich (official forwarder), World Expo 2010 Shanghai
(recommended logistics provider), Packexpo Chicago (official forwarder and customs
agent), BMW stand at the Geneva Automobile Salon etc.
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On the road for Media Markt in Austria
Media Markt has been present in the
Austrian market for two decades. To
mark this jubilee, between May and
October Europe’s biggest electronics
market chain is sending a completely
furnished “Mediahouse”, equipped with
every conceivable electrical appliance,
on a tour of the whole country. The prefabricated house is being erected each
week at one of the 23 Media Markt
locations, and will be raffled to a lucky
Media Markt customer after the end of
the tour. The tour is organised and man-
aged by the agency WWP WeiratherWenzel & Partner. Kuehne + Nagel is
transporting the building, which consists of eight modules, on four flatbed
semi-trailers. These are accompanied by
a semi-trailer for the accessory parts, a
truck loading crane and a 50-tonne
truck-mounted crane. The building
must be erected and dismantled within
a very narrow time window to ensure
that the Mediahouse is ready on time
for its four-day opening to the public at
the next Media Markt.
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Criss-crossing Europe with the
Bosch-Rexroth Sales Truck
Bosch-Rexroth is an international
leader in the development and production of drive and control systems
for a broad range of industrial applications, and employs more than
35,000 people all over the world.
Between February and November
2010 the company is sending its new
Sales Truck on a promotion tour of
Germany, the UK, Ireland, Italy, Swe-
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den, Switzerland and Austria. The purpose of the Control City on Tour is to
give a live presentation of the latest
control technology for industrial
automation. Kuehne + Nagel is providing the tractor unit in a publicityeffective get-up, as well as the drivers
for the tour plan. The drivers must get
the truck ready for the show at each
new location, a task which includes
not only the connection of the power
supply, extending the canopy and
access steps and checking the hy draulic and air conditioning systems,
but also the start-up of the presented
product models and tools. The drivers,
who are on standby for the duration
of the presentation, are also responsible for keeping the trucks impeccably
clean.
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“On tour” with Philip
Morris International
Philip Morris International has been
a customer of Kuehne + Nagel for
many years, and since 2008 it has
also used the company’s services in
the field of event logistics. In support
of the Marlboro Vibes concert tour,
various logistics services are provided
at roughly a hundred events every
year. The customer has also entrusted
Kuehne + Nagel with transport operations for roughly 15 open-air shows
per year, including such well-known
events as the pyrotechnic spectacle
Rhine in Flames or the large-scale
concerts MeltFestival and Ruhr in Love.
The whole of the Philip Morris stand
material, including electronic equipment and printing and engraving
machines, is stored and maintained
by Kuehne + Nagel.
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Logistics tour de force for the world’s biggest trade fair
Among other trade fairs Kuehne + Nagel
is the official forwarder for Bauma,
which was first held more than 50 years
ago and opened its doors for the 29th
time in Munich in April. This triennial
international trade fair for construction
machinery, building material machines,
construction vehicles and equipment is
the world’s biggest in terms of area. This
year, on a gigantic surface of 550,000
sqm, 3,150 exhibitors presented themselves to more than 415,000 trade visitors and interested members of the general public from almost all countries in
the world. In 2002 Bauma established
an offshoot fair in China, which has now
established itself as the leading trade
fair for construction machinery in Asia
and will next take place in Shanghai in
November 2010.
At the Munich fair Kuehne + Nagel is
responsible, among other things, for
the physical handling and customs processing of the exhibits and provides the
equipment needed for unloading and
loading. In the critical periods immediately before and after the fair, 65 forklifts and 30 truck-mounted cranes with
a lifting capacity of up to 400 tonnes
were in operation, as well as countless
telelifters and platform hoists. A particularly challenging task is to collect the
empty packing material from the
exhibitors, to store it during the fair
and to return it as quickly as possible
after the close of the event – at this
year’s fair the volume of empty packaging amounted to no less than 10,000
cubic metres.
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Expecting the unforeseeable every day
When relief goods are urgently needed in disaster areas,
fast, professional logistics can save human lives. This field
of transport, where things rarely go according to the book,
demands a great deal of experience and flexibility. Kuehne +
Nagel has organised the supply of relief goods to people
in need all over the world for twenty years
The Group works on the basis of longterm contracts for several United Nation
agencies. In addition, it is engaged in
business with selected major humanitarian organisations including the International Red Cross and the Red Crescent,
as well as a number of non-governmental organisations and suppliers for the
humanitarian sector. Each year Kuehne
+ Nagel handles several thousand individual orders, which are coordinated by
its own competence centre for relief
logistics in Copenhagen and executed
through its global network. As in other
sectors, in the relief logistics field
Kuehne + Nagel offers a wide range of
solutions extending from international
transport by land, water and air to intermediate storage and country-specific
distribution concepts. The Internetbased information system KN Login
enables the shipments to be tracked
and monitored by all staff members and
partners, in addition to which tailormade reporting solutions are at the disposal of certain large customers.
It is mistaken to believe that relief logistics consists only of urgent disaster missions in which emergency teams are
flown to remote parts of the world to
coordinate and supervise the distribution of emergency supplies loaded on
chartered freight aircraft (see article on
page 14). More than nine tenths of the
transports effected by Kuehne + Nagel
in this business segment are regular
services, mainly for the replenishment
of strategic stocks for the long-term aid
programmes of the United Nations. The
remaining, mainly unforeseeable operations demand the utmost speed of
response and are a true test of the logistics experts’ talent for improvisation
built upon many years of experience.
For these emergency cases the
appropriate organisation and personnel
resources must be ready and the necessary transport capacity immediately
available round the clock on 365 days
per year.
To maintain this infrastructure and keep
it in a permanent state of readiness is a
cost-intensive task. Additional costs
result from the employment of subcontractors such as airlines, local forwarders or – depending on the area of
operation – escorts for the transports.
Although relief logistics is not a big
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KUEHNE + NAGEL EMERGENCY &
RELIEF LOGISTICS
• A staff of 120 specialists, coordinated
by the competence centre in Copenhagen
• Roughly 15,000 orders per year
• Operations in 2009 in countries including
Afghanistan, Angola, Burundi, Cameroon,
the Central African Republic, Chad, China,
the Democratic Republic of Congo, Eritrea,
Ethiopia, Iraq, Kenya, Malawi, Mozambique,
Myanmar, Nigeria, Rwanda, Somalia,
Sudan, Tanzania, Zimbabwe
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money earner, Kuehne + Nagel feels an
obligation to place its extensive knowhow and efficient network at the service
of humanitarian organisations. They are
dependent on smoothly operating supply chains and the experience of the
logistics professionals. The roles are
clearly defined and assigned: The
humanitarian organisations as customers provide the relief goods and
Kuehne + Nagel organises their efficient, reliable transport to any part of
the world – to drought regions of Africa
just as to flooded areas in Asia or to
war-ravaged countries such as Iraq and
Afghanistan.
Humanitarian aid and business do not
conflict, but in an ideal case complement each other in such as to bring aid
with a maximum of speed and efficiency to those who need it. The longer aid
organisations and logistics providers
work successfully together, the more
know-how they acquire from each other
for the benefit of future operations.
Kuehne + Nagel employs approximately
120 people in its Emergency & Relief
Logistics business segment. These are
experienced logistics specialists who
have completed a full training in forwarding as well as being very flexible
and highly mobile. Most of them have
worked for ten years in this special field
and organise efficient disaster management based on their sound knowledge
of logistics and their good international
connections. On this basis, Kuehne +
Nagel has earned a very good reputation and built up a strong position in
the market for relief logistics.
www.kuehne-nagel.com/emergency
and above all durable means of protection against malaria – particularly if they
release an active substance which is
deadly for mosquitoes but harmless to
humans. Such a product has been developed by the chemical company BASF,
which supplies impregnated mosquito
nets to many international aid organisations and the health ministries of more
than 50 countries. The special feature of
this innovative product is that the BASF
researchers have incorporated the
insecticide into a polymer used to treat
the nets in such a way that it migrates
to the surface at a steady rate over a
number of years and remains effective
even after many washes.
.....................................................................................................
...................................................................................................................
Mosquito nets are an effective, low-priced
In the battle against malaria
In mid-2009, on behalf of Unicef,
Kuehne + Nagel organised the transport of 5.5 million mosquito nets to the
Democratic Republic of Congo. The
task was a complex one, not only
because of the large volume of freight
but also because the nets had to be
transported from four staging areas by
different routes and modes of transport
to more than a hundred distribution
centres in this vast country. 2 million
nets were transported in eight barges
via the Congo river, and Kuehne +
Nagel sent a further 900,000 in 34
truckloads across the whole of Tanzania
to the port of Kigoma, where they were
likewise transhipped onto river barges.
The remaining 2.6 million nets were
transported by road from Mombasa in
Kenya to three different areas in Eastern Congo. However, the most difficult
route was the one through Uganda to
Kisangani, where a transport infrastructure is virtually non-existent. In operations of this size, efficiently functioning
communications between all parties
are crucial. In cooperation with the
competence centre in Copenhagen, the
Kuehne + Nagel national companies in
Tanzania, Kenya and Uganda efficient-
ly handled the project within the predefined timeline to the complete satisfaction of Unicef.
KUEHNE + NAGEL . . . . . . .
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FOCUS
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Humanitarian logistics –
more than emergency aid
The past 30 years have seen a sixfold increase in the annual
number of natural disasters such as earthquakes, droughts,
floods, landslides, volcanic eruptions and storms. Experts forecast that, driven by climate change, this trend will continue in
future. However, major challenges to humanitarian logistics
are presented not only by emergency aid to disaster areas
but also by the supply of goods to people in areas of chronic
famine
By Prof. Dr.-Ing. Dr. h.c. Helmut Baumgarten*
figures, roughly three million children
die each year as a result of malnutrition.
Nearly a third of the world population
has only inadequate access, or none at
all, to vital medicines.
The chronic shortage of food, drinking
water and medical aid in many parts of
the world is accompanied by a trend
that is leading to hardship for a growing
number of people in developing and
emerging countries: Whereas major disasters attract the attention of the media
and stimulate a high readiness to
donate, it is increasingly difficult to
raise funds for regions that are in permanent need. Furthermore, readiness to
donate has fallen by roughly a third
since the beginning of the global economic crisis. Another problem is that
medical and food supplies too often
pass their expiry dates or disappear on
their way to those in need – either as a
result of inappropriate treatment during
transport and storage, corruption, a
lack of proper information or quite simply an inadequate infrastructure.
Percentage of malnourished persons in the national population (2007) and some of
the 850 natural disasters recorded in 2009. Sources: UNO World Food Programme, Munich
Reinsurance, Geo Risk Research, NatCatService
The starting points of efficient disaster
logistics are the stocks of supplies
which aid organisations position in
strategic locations all over the world
in order to allow a more rapid response
to emergencies. UN organisations and
non-governmental organisations are
supported by emergency teams or specialised departments of logistics providers with expert knowledge for the
transport of medical supplies, water
treatment plants, food, clothing and
temporary housing.
Despite the progress that this cooperation has made over the past years, the
problem of duplicated or incorrect deliveries and delayed intervention in disaster areas still exists. Scientific analyses
indicate that fast and efficient disaster
KUEHNE + NAGEL . . . . . . .
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aid can be achieved only by improved
coordination and a concentration of
activities and capacities.
However, the shortage of food, medical
supplies and water is for the most part
not a result of sudden catastrophic
events but a consequence of permanent
structural problems in the famine regions
of the world. Since 1995 the number of
people affected by hunger has risen to
more than a billion or 15 percent of the
world population. This alarming fact is
documented by the World Hunger Index
2009, which lists 20 African countries
among the 30 with the highest levels of
hunger. The figures also show that emergency and development aid needs to be
specially focused on countries to the
south of the Sahara. According to Unicef
Logistic elements such as transport
planning, refrigerating chains, the security of goods and supply chains or information management are key factors for
successful development cooperation.
Humanitarian logistics can and must
therefore utilise the experience of the
commercial sector, but at the same time
follow unconventional paths in order to
adapt to special conditions and provide
the best possible supply level with the
available capacity. In this connection,
human resources are a key factor in the
successful development of transport
and logistics systems.
* The author is the founder of the Department
of Logistics at the Technical University of Berlin,
and is responsible for the research project
“Humanitarian Logistics”, which is sponsored
by the Kuehne Foundation.
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FOCUS
Particularly in developing countries,
however, logistics specialists with the
necessary know-how are in short supply.
This means that it in those places it is
rarely possible to maintain a smooth
local flow of goods and information.
The training of logistics specialists in
developing countries is therefore one of
the main challenges that face humanitarian logistics, and can make a decisive
contribution to the reduction of transport and distribution problems.
............................................................................
A FOCUS OF RESEARCH SUPPORTED BY THE KUEHNE FOUNDATION
As part of its committed support for training, further education and research and development
in the field of logistics and transport, the Kuehne Foundation also addresses the theme of
Humanitarian Logistics. The Foundation is sponsoring a research project of the same name at
the Technical University of Berlin, and, as co-publisher with the Haupt-Verlag of the scientific
series “Logistik”, has already financed a number of publications on this subject such as Logistik
im Kontext internationaler Katastrophenhilfe by Philippe Tufinkgi or Humanitarian Logistics by
Alexander Blecken. The Kuehne Foundation also sponsored and organised the plenary session
“Humanitarian Logistics – Future Needs and Potential Solutions” at this year’s International
Disaster and Risk Conference IDRC, which took place for the third time at the end of May in
Davos. The Foundation plans to selectively expand its support for research and practical studies
in this important field.
In addition to problems of disaster
logistics, a research team sponsored by
the Kuehne Foundation at the Technical
University of Berlin is now examining
suitable logistics concepts for the countries of the East African rift valley. In
this project, the researchers are not only
............................................................................
seeking new ways to use the great lakes
and existing but poorly maintained railways and roads, but are also involving
African training and further education
institutions in the joint development of
suitable logistics concepts. KN World
Magazine will report in one of its coming issues on the experience and results
of these field studies in Tanzania and
Malawi.
...................................................................................................................
Rapid response
after the Haiti
earthquake
Kuehne + Nagel was at the forefront of
the international relief operations that
got under way immediately after the
earthquake disaster which hit Haiti in
January. Under a long-term agreement
with the European Commission the company guarantees, among other things,
that in emergencies a freight aircraft
can take off for the disaster area within
not more than 24 hours after being
requested. On the basis of this standby
service Kuehne + Nagel made a lightning response to the Haiti earthquake.
Immediately after the first shock, a
chartered Boeing 747 with 100 tonnes
of freight from the Swedish aid organisation MSB and the Norwegian Church
left Stockholm-Arlanda airport for the
Dominican Republic.
From there, the goods – four-wheel drive
vehicles including 200 litres of diesel
fuel, water purification plants, tents,
clothes and many other items – continued their journey by road to Port-auPrince. To coordinate the loading of the
air freighter and to make out all the necessary papers, Kuehne + Nagel sent specialists at short notice from the competence centre in Copenhagen to Stockholm while two of their colleagues flew
directly to Santo Domingo to prepare
for the receipt of the relief goods and
their prompt on-carriage by land. Since
this first mission Kuehne + Nagel has
transported substantial quantities of
relief goods to Haiti by sea and air. In
view of the fact that Haiti will remain
dependent on international aid for a
long time to come, the company will
maintain its local representation at
least for the rest of the year.
In addition, in May Kuehne + Nagel supported one of the many aid missions for
the devastated country by providing
transport services free of charge in
cooperation with the American logistics
company UPS. With the aim of supplying roughly 10,000 Haitian farmers
with urgently needed seed (for cereals,
cabbage, carrots, aubergines, melons,
onions, tomatoes and spinach) before
the end of the planting season, the
agrochemical and biotechnology corporation Monsanto donated seed with a
value of more than 1 million US dollars.
To ensure that this extremely welcome
reconstruction aid reached its needy
recipients as quickly and efficiently as
possible, the two logistics providers
joined forces, with UPS handling airfreight deliveries and Kuehne + Nagel
taking responsibility for sea and road
transport. The seed was then sold at
greatly reduced prices through farmers’
shops all over the country; the proceeds
of the sales will be at the disposal of the
farmers’ associations for the purchase
of further essentials.
15
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INSIDE
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State-of-the-art new logistics hub
for the Hamburg region
The big new logistics terminal in Obergeorgswerder to the
southeast of Hamburg, which Kuehne + Nagel opened in
November, underlines the importance the company attaches to
this location as an element in its growth strategy for European
land transport. The multifunctional facility is equipped with
the latest technology and has a storage and handling area
totalling 44,000 sqm and nearly 9,000 sqm of office space.
The results after the first few months of operation are highly
satisfactory
The building complex, comprising five
warehouses and two office buildings on
a twelve-hectare site directly by the
Hamburg-Süd motorway intersection,
took roughly one year to complete. With
166 light signal-controlled loading
gates and generously dimensioned vehicle docking areas together with state-ofthe-art video surveillance of the whole
site, the terminal is designed in every
respect for the fast and secure handling
of goods. The total investment volume
for this path-breaking facility amounted
to roughly 80 million Swiss francs.
Special importance was attached to
the sustainable, environment-friendly
design and utilisation of the terminal.
The “green logistics” concept is reflected in the planting of the 24,000 sqm
green area with roughly 12,000 trees
and shrubs, the lighting and heating
systems and the use of regenerative
energies. Kuehne + Nagel has also
demonstrated its environmental awareness by the construction of a photovoltaic installation which is one of the
largest in Hamburg with an area of
nearly two thousand sqm.
With the expansion of its infrastructure in
the Hamburg region, Kuehne + Nagel is
responding to the demand for cost-effective, integrated logistics solutions. In
Obergeorgswerder the company has consolidated its contract logistics and road
transport activities, the handling of
seafreight imports and exports and sales
administration under a single roof, as
well as adding a further 25,000 sqm of
space to its contract logistics facilities in
Hamburg. 475 Kuehne +Nagel employees are now working in Obergeorgswerder, 20 of them in newly created jobs.
The design of the handling and logistics
halls is in line with the latest safety and
productivity standards. A special feature is the underfloor chain conveyor
forklifting trucks in the cross-docking
hall, which substantially increases the
efficiency of logistics and productive
activities in road transport. Major synergies between the overland transport
and contract logistics businesses result
from the enlarged storage areas and the
joint management of human resources
and the hall and equipment capacities.
KUEHNE + NAGEL . . . . . . .
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The first few months of operation show
that the consolidation of airfreight, road
transport and contract logistics activities under a single roof has already
brought a substantial improvement in
internal cooperation and the quality of
service. The new logistics centre enables
Kuehne + Nagel to provide the whole
range of services with even greater efficiency on a one-stop basis.
As a targeted marketing measure, customer events are held in Obergeorgswerder at regular intervals to enable
shippers to see the potentials and capabilities of the facility’s installation for
themselves. On these occasions Kuehne
+ Nagel has been able to further
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17
.......
strengthen its good relations with existing customers as well as establishing
many new business connections in virtually every field. Furthermore, in accordance with the strategic objectives
increased cross-selling has opened up
further business potentials, particularly
between road transport and contract
logistics.
The new facility also enables Kuehne +
Nagel itself to provide forwarding services that it formerly had to subcontract
to other companies for reasons of space
or costs. This particularly applies to the
unloading of consolidated containers
carrying imports destined for the hinterland. These shipments can now be distributed more quickly and at lower cost
via the company’s own land transport
network. Kuehne + Nagel’s land transport and contract logistics business
units are better able to participate in
their export customers’ many special
sales promotion and distribution operations. A further service offered at this
location is the stuffing of export containers, for which an attractive new contract has been concluded with a major
customer from the automotive supply
sector.
In February, Kuehne + Nagel began the
start-up of a newly created distribution
solution for Central and Eastern Europe
for another large customer in the contract logistics sector. As a result of further new customers wins and the expansion of existing business, the utilisation
of the storage and handling capacity in
Obergeorgswerder has reached a very
satisfactory level. In overland transport
too, the number of shipments has
shown a clear increase since the startup of the facility and a good level of
capacity utilisation has been attained.
If one also takes into account the gratifying level of business in the seafreight
import and export departments, it is
clear that the facility in Obergeorgswerder has on the whole developed very
well in the first six months of operation
and that it will provide valuable support
for Kuehne + Nagel’s moves towards
growth.
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Man of figures with a good heart
As Chief Financial Officer, Gerard van Kesteren has been
responsible for the finances of the Kuehne + Nagel Group
for more than ten years. This year he received a number of
honours for his outstanding achievements. In his private life
he is deeply committed to improving the future chances of
children in developing countries and he has established his
own foundation to this end
This year, the 60-year-old Dutchman
with a lively sense of humour, who has
been a member of the Management
Board of Kuehne + Nagel since 1999,
has received three awards for his work.
In January the CFO Forum Switzerland
voted van Kesteren the best Chief
Financial Officer in the category of
companies listed in the SPI share index.
This association of some 300 financial
heads and persons closely linked with
the Swiss financial sector named him
“CFO of the Year”. Among the reasons
for choosing van Kesteren, it cited his
profound professional knowledge and
the contribution he had made to the
success of his company in a difficult
environment. The laudation also praised
van Kesteren for his open communication which has gained him high esteem
among financial journalists.
This was also attested in April by the
professional journal Institutional In vestor, which awarded Kuehne + Nagel
the top place in its international ranking within the transport industry in the
categories of both “Best CFO” and “Best
Investor Relations”. This choice was the
result of a ballot among more than
thousand analysts from 146 financial
institutions.
Sustainable development on a sound
fi nancial basis, however, is the guiding
principle to which Gerard van Kesteren
is committed not only in his professional work. In his private social engage-
Gerard van Kesteren visiting Africa, where his foundation supports a children care project in Malawi
Gerard van Kesteren visiting Malawi
KUEHNE + NAGEL . . . . . . .
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ment, to which he devotes a large
part of his limited free time, his aim
is also to achieve a long-term effect.
In accordance with his conviction
that “In order to make the world a
better place, one must begin with
the children – for they are the
future”, in 2007 he established the
van Kesteren Foundation with the
aim of supporting projects in aid of
children in poor countries.
The foundation is currently involved
in three projects. In the African state
of Malawi it supports the work of
Jacqueline Kouwenhoven, a Dutch
citizen who operates a hospital
based on western, traditional and
homeopathic medicine in the north
of the country together with a school
in addition to providing microloans
for local small businesses. In Central
America support is given to the initiative of Patricia Scarpatetti, a Swiss
who runs a home for 35 street
children in Honduras and attends to
their education. Finally, in China Gerard van Kesteren – together with his
professional colleagues Peter Gähwiler and Peter Messerli, the regional
financial heads of Kuehne + Nagel in
Asia-Pacific and Southwest Europe
respectively – finan ces a primary
school as part of the Hope Project.
Before his retirement, the donor
plans to have identified six projects
which will receive annual support
totalling around 250,000 Swiss
francs. In October 2010 van Kes teren will visit a Dutch aid project in
the Brazilian city of Rio de Janeiro in
order to evaluate its potential as his
possible fourth commitment. “For
me it is a heartfelt concern to offer
these children real prospects for the
future,” says the congenial finance
head. “And I consider it a great privilege to be able to support such
important initiatives.”
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INSIDE
“The Kuehne + Nagel Group
has coped well in 2009…
… and was early to take appropriate
measures to strengthen its global market position and competitiveness,” said
the Chairman of the Board of Directors
Klaus-Michael Kuehne in his appraisal
of the past business year at the company’s Annual General Meeting, which
was held in May in Schindellegi and
was well attended as always. The Group
in creased its market share in all business units and achieved a solid overall
result.
There were clear majorities for all proposals of the Board of Directors. In
addition to the re-election of the existing members, Dr. Joerg Wolle, was elected as a new member of the Board of
Directors of Kuehne + Nagel International AG. Dr. Wolle is CEO and Delegate of the Board of Directors of DKSH,
the leading market expansion services
group with a focus on Asia. “With his
Dr. Joerg Wolle: new member of
the Board of Directors
profound know-ledge of the Asian
growth markets, which are also of great
importance for our Group, Dr. Wolle will
provide us with valuable suggestions
and impulses for our own business
model,” said Klaus-Michael Kuehne.
Front row (f.t.l.): Bernd Wrede (Vice Chairman), Klaus-Michael Kuehne (Chairman),
Karl Gernandt (Executive Vice Chairman). Back row: Hans Lerch, Dr. Wolfgang Peiner,
Dr. Georg Obermeier, Dr. Thomas Staehelin, Dr. Joachim Hausser, Juergen Fitschen
KUEHNE + NAGEL . . . . . . .
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Global supply logistics
for drilling rigs
Parker Drilling, a leader in high-performance contract
drilling for oil and gas and a provider of project management solutions for the global energy industry, has
entered into an agreement with Kuehne + Nagel to
manage comprehensive logistics requirements for its
international rig fleet
Kuehne + Nagel’s oil and gas expertise
helps energy organisations to manage
their logistics strategies and operations
across functional areas including order
management, transport, physical distribution and supply chain security. Specific capabilities include key account management with a dedicated customer
service department, comprehensive services relating to the installation and
KUEHNE + NAGEL . . . . . . .
W O R L D N O . 1 / 2 010
operation of maritime offshore installations, a specialised task force for the
transport of complete drilling and production rigs, and training and controlling programmes to ensure the highest
compliance standards.
Parker Drilling, an American company,
is a provider of premium drilling services for the international energy industry
and at present has 28 drilling rigs
deployed on land and a further 15 offshore. Founded in 1934, Parker has set
numerous “world records” for deep and
extended-reach drilling and is an industry leader in safety performance.
Under the agreement, Kuehne + Nagel’s
services cover freight forwarding, export
packing and most international transport-related processes. Kuehne + Nagel
offers multi-modal (sea, air, road and
rail) transport services as well as an
express courier service for emergency
logistics needs. Additionally, Kuehne +
Nagel supports Parker Drilling’s project
engineering and construction business.
The signing of the contract was preceded by a twelve-month implementation
phase during which Kuehne + Nagel
worked closely with Parker Drilling to
ensure that implementation at each of
its locations was managed to the complete satisfaction of the customer and
with no interruption of the supply
chain.
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MARKETS & PRODUCTS
Liquid logistics
for the UK…
Founded in 1883, Concha Y Toro SA is Latin America’s leading producer of premium
branded wine and one of the ten largest
firms in the industry. It owns nearly 9,000
hectares of prime vineyards located all
over Chile and Argentina and exports its
wines, which include such well-known
names as Don Melchor, Almaviva and
Casillero del Diablo, to more than 130
countries. Concha Y Toro attaches great
importance to sustainable, environmentfriendly processes in both production and
distribution.
Kuehne + Nagel has managed imports of
wine to the UK from Chile and Argentina
by seafreight on behalf of Concha Y Toro
for ten years. In February the two compa-
nies signed a three-year contract logistics
agreement under the terms of which Concha Y Toro will now transfer all its UK
domestic warehousing and distribution to
KN Drinks Logistics, Kuehne + Nagel’s
wholly-owned subsidiary in the UK. KN
Drinks Logistics’ Hams Hall facility will
offer storage for approximately one million cases of wine which will be delivered
annually to both on- and off-trade customers via the KN Drinks Logistics distribution network.
...................................................................................................................
… and the Norwegian market
In March Kuehne + Nagel signed a
three-year service agreement with the
Norwegian Vectura AS. This is the leading logistics company for wine, spirits
and other alcoholic beverages in Norway with a market share of nearly 50
per cent. Under this agreement, Kuehne
+ Nagel will manage Vectura’s warehousing and distribution activities at
its Trondheim site. In this facility, with
an area of 8,000 square metres and
capacity for 3,700 active stock-keeping
units, currently eleven million units are
handled per annum. Kuehne + Nagel
also selects and manages the transport
carriers used to undertake all deliveries
from the Trondheim warehouse.
Under the terms of the agreement,
Kuehne + Nagel is able to benefit from
additional warehouse and office capacity at Trondheim not currently utilised
by the Vectura operation. This idle space will be used to expand Kuehne +
Nagel’s network in Norway, offering
warehousing, sea-, air- and road transport as well as contract logistics services to new and existing customers.
After the closure of Vectura’s operations in Trondheim, which is scheduled
for 2013, Kuehne + Nagel plans to take
over the whole facility.
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MARKETS & PRODUCTS
..............................
Emergency logistics prevents production stops
extends from the smallest screws to
complete sub-assemblies must be shipped
to the production plants by various
routes in order to ensure an unbroken
flow of supplies to the car manufacturers at all times.
Hella KGaA Hueck & Co., headquartered in Lippstadt, Westphalia, Germany,
employs over 23,000 people at more
than 70 production plants all over the
world. As a globally operating supplier
to the automobile industry, the company needs a highly developed, comprehensive logistics plan. Frequent just-intime deliveries of a range of parts which
For that reason Hella has relied for
many years on the dependable air- and
seafreight transport services of Kuehne
+ Nagel. The logistics provider offers
Hella a range of tailor-made models
with different transit times and service
levels on its various transport routes,
the most important of which are from
Germany to China, the USA and Mexico
and between China and the USA. If time
is short, Kuehne + Nagel organises onboard courier shipments for urgently
needed components, which are checkedin with an airline as passenger baggage
and securely brought to their destination with the shortest possible transit
times.
The global economic crisis, which has
resulted in sometimes sudden shortages
of goods and allocation difficulties,
calls for even faster reaction times in
the logistics chain. Hella relies on
Kuehne + Nagel’s team of experts,
which can be reached day and night,
and its globally standardised IT systems. As a result of the high personal
commitment and motivation of all concerned – both at Kuehne + Nagel and
Hella – all emergency transports since
the start of the crisis have without
exception been carried out to the complete satisfaction of the customer and
the automobile makers it serves.
www.hella.com
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Iveco’s preferred logistics partner
Iveco, the world’s largest manufacturer
of commercial, industrial and specialapplication vehicles and buses, has
renewed its service contract with
Kuehne + Nagel for a further three
years. After nine years of successful
cooperation, Kuehne + Nagel is now Iveco’s preferred logistics partner with
responsibility for delivering the whole
Europen aftermarket. The sophisticated
logistics solution offered by Kuehne +
Nagel includes the management of the
five regional distribution centres in
Turin, Madrid, Trappes (France), Langenau (Germany) and Winsford (UK). The
individual depots have space for up to
160,000 stock-keeping units, and the
total storage area under Kuehne +
Nagel’s management is 300,000 sqm.
Another important element of this integrated logistics offering is the entire distribution of stock via overnight shipments by Kuehne + Nagel’s Europe-wide
automotive distribution network, covering regions such as Ireland, Scandi-
navia, Benelux and Portugal. Under the
contract, Kuehne + Nagel will introduce
a number of innovations such as RFID
and pick-by-voice technologies. Restructuring measures will also be implemented in order to create an even more efficient and responsive supply chain for
Iveco’s spare parts division on the basis
of the continuous improvement culture
of both companies. The annual flow of
nine million order lines, ranging from
small components to entire engine
blocks, generates a total of well over
60,000 tonnes of outgoing cargo.
www.iveco.com
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Expansion of automotive logistics
in Japan, Germany and South Africa
As a result of the continuous expansion of its logistics
services for BMW, Kuehne + Nagel is now acting for the
German car maker in a dozen locations in China, Germany,
Japan, Korea and South Africa
The last issue of KN World Magazine
reported on the spare parts distribution
centre operated by Kuehne + Nagel for
the BMW dealer network in the Stuttgart
region. Since the beginning of 2010 the
logistics company has also been the
partner for this customer at its production site in Leipzig – in one of the world’s
most modern automobile factories –
where it has assumed responsibility for
the entire supply chain for the final
assembly of BMW automotive products.
At the site, which comprises 44,000 sqm
of warehousing and handling space,
Kuehne + Nagel manages a range of
logistics operations that includes receiving, storage, sequencing, set-building
and production line delivery. In addition,
Kuehne + Nagel is responsible for the
supply and return of empty containers
and for the execution of pre-assembly
operations, and cooperates with the
automobile manufacturer in various supply concepts, such as Kanban and supermarket models. After a three-month
implementation phase during which a
dedicated team of automotive logistics
experts from Kuehne + Nagel supported
BMW in process planning, value creation
flow analyses and improvement initiatives in close collaboration with the customer, operations got off to a smooth
start on January 1, 2010.
Kuehne + Nagel has worked for BMW at
its distribution centre in Midrand in
South Africa since the end of 2008. Following a rigorous tender process,
Kuehne + Nagel was awarded a threeyear contract to manage the entire
national parts distribution centre, from
which spare parts and accessories are
distributed to the whole of South Africa
as well as five neighbouring countries.
The 16,500 sqm facility is owned by
BMW and holds around 50,000 stockkeeping units.
As in its other locations, in Midrand
Kuehne + Nagel provides a wide range
of contract logistics services which are
tailored to the specific needs of this
automotive customer, with whom it
cooperates closely in order to jointly
bring about a continuous improvement
in the complex supply chain processes
and enhance cost efficiency.
Also at the end of last year, Kuehne +
Nagel was entrusted by BMW with the
management of the car maker’s distribution centre for the whole of the
Japanese market. The facility in Tokyo
has a storage area of more than 18,000
sqm on three levels, and capacity for
more than 50,000 stock-keeping units.
The logistics services provided for the
customer at this location include receiving, inventory control, picking & packing and the handling of dangerous
goods, together with value-added services such as key coding and key cutting.
The facility is also equipped with the
latest technologies such as pick-by-voice
systems or the Kuehne + Nagel production system.
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MARKETS & PRODUCTS
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A distribution centre with
a showcase character
Louis Vuitton is one of the main brands of the LVMH
Group, the world market leader in the luxury goods
industry. In March the company awarded Kuehne + Nagel
a contract for the management of its regional distribution
centre in Osaka, Japan. Based on the systems and
processes customised in this facility, Kuehne + Nagel will
later be responsible for setting up warehouse operations
for all of Louis Vuitton’s outsourced distribution centres
worldwide
To implement this challenging plan,
Kuehne + Nagel has leased a dedicated
logistics facility conveniently located between the seaports of Kobe and Osaka. To
permit maximum flexibility and efficiency, Kuehne + Nagel provides a comprehensive warehouse solution, covering layout design and material flow planning as
well as the installation of ultramodern
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security measures and advanced information systems fully integrated with Louis
Vuitton’s worldwide operations.
Particular emphasis has been placed on
the fulfilment of the latest environmental standards; the facility is among the
first in Asia-Pacific that are accredited
with an ISO 14001 certification.
At the premises with a handling and
storage capacity of 6,000 sqm, Kuehne
+ Nagel’s services cover the inbound
receipt of goods by sea and air, label
scanning, quality and quantity checks,
pick & pack operations, sales-ready
preparation as well as reverse logistics
for the entire range of Louis Vuitton
leather goods and accessories. In addition, Kuehne + Nagel will provide valueadded services, such as pre-wrapping
and care label tagging.
The sophisticated nature of Louis Vuitton’s supply chain requires a logistics
provider to be capable of maintaining a
reliable balance between efficiency, flexibility and quality. Kuehne + Nagel’s tailor-made solution meets these requirements in every respect. To ensure conformity with the customer’s stringent
security and operational standards, the
company has a competence team of
around 20 experts in Amagasaki to provide Louis Vuitton with round-the-clock
support.
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MARKETS & PRODUCTS
Chile: exclusive distribution
solution for Roche…
Under a comprehensive contract, at the
beginning of this year the Swiss company appointed Kuehne + Nagel as its
exclusive logistics partner to manage its
national distribution centre in Macul
near the Chilean capital Santiago and
distribute its products throughout this
South American country.
Roche is a leading research-based company in the fields of health care, pharmaceuticals and diagnostics, and employs roughly 80,000 people all over
the world. As the world’s biggest biotech undertaking, it helps to improve
human health and quality of life with
innovative products and services for the
early recognition, diagnosis and treatment of diseases.
Under the agreement, Kuehne + Nagel’s
responsibility embraces warehousing and
distribution services for medicinal end
products and raw materials, as well as
for the customer’s promotional samples.
The services also cover the handling of
sensitive cargo such as temperature-controlled biotechnological products and
psychotropic medicines. Kuehne + Nagel
supports Roche in the optimisation of
the distribution processes in Chile and is
responsible for deliveries to hospitals,
clinics and pharmacies throughout the
country.
...................................................................................................................
… and inbound supply chain management for Ripley
web-based visibility and reporting,
including IT interfaces to a number of
third-party service providers. The company utilises its own award-winning KN
Login application, which enhances efficiencies by the use of a single platform
and enables standardisation of the
retailer’s logistics operations worldwide.
Kuehne + Nagel expects the successful
implementation of this project to stimulate further new business from the retail
sector and the company will continue to
invest in order to become the reference
logistics partner in Chile for this important industry.
Founded in 1956, Ripley Corp is one of
the biggest retail companies in Chile and
Peru in terms of sales revenue and has 51
stores in which it sells clothing, accessories and home products. Since May
Kuehne + Nagel has handled global
order management for this company. The
contract includes freight management
and value-added consolidation services
from the export regions Europe, Middle
East, the Americas and Asia-Pacific.
Kuehne + Nagel’s tailor-made solution
integrates Ripley’s suppliers across its
international supply chain and provides
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MARKETS & PRODUCTS
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Contract logistics
for Fujifilm in Poland
As the logistics partner of the Japanese
manufacturer of high-tech goods, Kuehne +
Nagel is consolidating the inventories of
Fujifilm’s three warehouses in Poland, the
Czech Republic and Slovakia in its logistics
centre in Chorzow
Fujifilm operates in the core areas of imaging (digital cameras,
print service, minilabs, photographic paper and films), information (graphic and medical systems and material for flat screens)
and document management (copiers, office communication
and digital printing), and employs more than 70,000 people in
nearly 300 subsidiaries and affiliates all over the world.
In February 2010, Fujifilm chose Kuehne + Nagel as its contract logistics partner in Poland. Among the reasons it named
for its decision were “their strong presence in Eastern Europe,
their cost-effective operations and their IT strength”. Under
the new agreement, the customer’s three warehouses in different locations are being consolidated in Kuehne + Nagel’s mod-
ern 10,000 sqm facility in Chorzow, which is fully equipped for
additional logistics services such as pick & pack and repackaging.
In addition to classic services like goods receipt, inventory management and customs brokerage, Kuehne + Nagel also performs
value-added services such as assembly and labelling on behalf
of Fujifilm. A special focus is placed on high-value goods and
hazardous substances, for which a dedicated cold room area has
been built. To ensure fast and dependable communication with
the customer’s IT systems, Kuehne + Nagel has created special
interfaces to its global warehouse management system.
www.fujifilm.com
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Temperature-controlled
logistics for Eastern Europe
age and distribution. In order to provide
complete tracing of constant temperature, Kuehne + Nagel offers a dedicated
control and reporting system.
Boehringer Ingelheim Pharma Ltd., one of the world’s leading
and most innovative pharmaceutical companies, has chosen
Kuehne + Nagel for the management of its temperaturecontrolled transport in five East European countries
This important new cooperation endorses Kuehne + Nagel’s strategy of expanding its investments in specialised products and its growth efforts in market segments such as pharma & healthcare and
high-tech/high-value.
www.boehringer-ingelheim.com
In recent years Kuehne + Nagel has
specifically invested in its systems, facilities and employees in order to guarantee high service and quality standards
for the transport of temperature-sensitive products. In the spring of this year,
as proof of the success of these efforts,
the logistics company was chosen by its
customer Boehringer Ingelheim as partner for its transport of goods to the
Czech Republic, Poland, Hungary, Greece
and Croatia.
With 138 affiliates, the Boehringer
Ingelheim Group employs more than
40,000 people all over the world. With
investments in research and development amounting to nearly a fifth of its
turnover, it is one of the most active
pharmaceutical companies in this field.
As one of the leaders in its sector, to support its continued efforts to expand in
Eastern Europe Boehringer Ingelheim
needed an experienced logistics provider
with know-how in the pharmaceutical
industry as well as in the local markets.
The services Kuehne + Nagel is providing
for Boehringer Ingelheim include temperature-controlled road transport of thermolabile medical products to the Czech
Republic, Poland, Hungary, Greece and
Croatia. Kuehne + Nagel’s cool-chain
transport solution, which is adapted to
the sensitive products’ specific nature,
meets all relevant industry-related regulations and the customer’s high quality
requirements regarding handling, stor-
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ROUND THE WORLD
A full-sized “model railway”
In 2008 the government of Gran
Canaria decided to build a modern
railway which will connect the capital,
Las Palmas, with the south of the
island when its first construction
phase is completed in 2015 and will
later provide a link with the north. In
connection with a number of promotion events for the local population,
last autumn Kuehne + Nagel transported to the Canary island a 30
metre-long model of the Siemens
S103 AVE train consisting of a locomotive and a carriage unit. The Span-
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ish project transport team of Kuehne
+ Nagel, which was responsible for
this by no means simple task, chose to
ship the train from Seville, Spain’s
largest inland port. The trickiest part
was its transport by road on special
low-loaders from the depot to the
port. Thanks to the professional
handling and efficient cooperation
between all concerned, the model
train was punctually installed in the
San Telmo Park in Las Palmas, where
it met with the keen interest of many
local people and tourists.
......................................................................................................................................................
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Paints and
varnishes for the
Iberian peninsula
In February the Spanish subsidiary
of AkzoNobel Decorative Coatings,
the world’s biggest maker of paints
and varnishes and an important
manufacturer of special chemicals,
signed a five-year contract with
Kuehne + Nagel. Under the terms of
the contract, the logistics provider is
responsible for the management and
warehousing activities of the AkzoNobel distribution centre in Zaragoza.
At this modern facility, which has
a storage area of 16,000 sqm and
complies with the latest hazardous
material regulations, a dedicated
team of 45 Kuehne + Nagel specialists is consolidating all logistics
activities that formerly were managed
at different locations in the peninsula.
Kuehne + Nagel owes the award of
this contract to the good track record
of the warehousing logistics activities
it has been managing for AkzoNobel
in Austria.
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Valeo Service selects Kuehne + Nagel
as preferred partner for European inbound
road transport
Since last autumn Kuehne + Nagel has been responsible for
the management and execution of a complex, tailor-made
road transport concept for the shipment of components from
the European suppliers to the national distribution platforms
of this leading automotive supplier
Valeo Service, a company specialised in
the automotive aftermarket, is a subsidiary of the Valeo Group, whose activities are concentrated on the design, production and sale of components, integrated systems and modules for cars and
trucks. Valeo ranks among the world’s top
automotive suppliers. The group has 121
production plants and 61 R&D centres,
and employs more than 50,000 people in
27 countries worldwide.
The sophisticated road transport concept
realised by Kuehne + Nagel for this customer substantially increases the efficiency of deliveries to Valeo’s national distribution platforms in France, the UK, Italy,
the Netherlands, Poland, Russia, Spain
and Turkey. It involves the implementation of 43 “milk runs” for the collection of
components from the suppliers and their
multi-stop consolidation before they are
punctually delivered to Valeo Service’s
distribution platforms as required.
as a whole. An e-booking web application
allows all suppliers to directly enter their
transport orders into the system.
Thanks to the tailor-made, robust and at
the same time highly flexible solution,
despite a high level of variance in daily
shipment flows, Valeo Service now benefits from a regular service with enhanced
consolidation capacity, increased collection frequency at each supplier site as
well as a guarantee of on-time delivery.
www.valeoservice.com
The dense transport network, which covers more than a hundred suppliers from
ten countries and 283 point-to-point relations, is managed from Kuehne + Nagel’s
control centre in Orléans, France. With the
Logistar Transport IT-System developed
by Kuehne + Nagel, the logistics provider
continuously improves the efficiency of
the individual milk runs and the network
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Strategic partnership with Hilti
The Liechtenstein-based Hilti Group, one of the world’s
leading manufacturers of tools and fastening systems, has
entered into a strategic partnership with Kuehne + Nagel
for the planning, implementation and management of its
future logistics locations in Europe
Hilti is a global market leader in the
development, production and distribution of high-quality products and
machines for such fields as drilling and
demolition, direct fastening, anchoring,
fire protection and installation and measuring systems. The company employs
20,000 people in 120 countries and
supplies its leading-edge products to
the construction industry all over the
world.
The cooperation between the Liechtenstein-based group and Kuehne + Nagel
started in December 2007 with the construction of the new Hilti logistics centre
in Nuremberg. This project, which was
planned and implemented and is managed by the logistics specialists of Stute
Verkehrs-GmbH, a wholly-owned subsidiary of the Kuehne + Nagel Group,
laid the foundations for the realignment
of Hilti’s logistics processes in Europe.
The state-of-the-art distribution centre in
Nuremberg serves as a yardstick for new
Hilti locations in Europe and has convinced the customer to choose Kuehne +
Nagel as its competent strategic partner
for further logistics projects. A dedicated
competence team will support Hilti in
upcoming and ongoing projects for the
further optimisation and standardisation of logistics processes.
This cooperation with a single partner
brings a number of advantages for the
customer: It enables Hilti to concentrate
on its core competences while benefiting
from Kuehne + Nagel’s extensive knowhow, as well as allowing the customer to
reduce its coordination and management efforts as Kuehne + Nagel offers
one-stop-shopping when it comes to
integrated logistics solutions. Hilti sees
further advantages in standardised controlling and reporting and a clear visualisation of the supply chains. This
enables it to continuously monitor all
locations and processes including the
respective key performance indicators.
The permanent benchmarking of all
locations, be they own-controlled or
externally managed, ensures full transparency in all external locations.
www.hilti.com
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Automotive: inbound logistics
for Magna in Russia…
It is now more than sixteen years since
Kuehne + Nagel began working in various countries for Magna International, the world’s biggest automotive supplier. Its subsidiary Magna Exteriors &
Interiors, a leading supplier of exterior
vehicle appearance systems, has now
entrusted Kuehne + Nagel with the
entire inbound logistics for its production site in Kaluga as well as parts of
its outbound transports.
Kuehne + Nagel coordinates and
transports shipments from all European suppliers to a consolidation centre in Chemnitz, Germany, from where
the goods are delivered to the Magna
production site in Kaluga. In addition
to warehouse management and parts
consolidation in line with the production process, Kuehne + Nagel’s services also include export handling as well
as daily overland transport from
Chemnitz to Kaluga.
www.magna.com
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ROUND THE WORLD
… and distribution
for Continental
Tyres in Thailand
This spring, Kuehne + Nagel also proved
the attractiveness of its integrated
logistics services specifically tailored for
the automotive industry in Southeast
Asia, where it concluded a new service
contract with Continental Tyres (Thailand) Co. Ltd. Under the agreement,
Kuehne + Nagel will support Continental Tyres (Thailand) Co. Ltd. with a
range of warehousing and distribution
logistics services for its original equipment and aftermarket dealer business
in Thailand.
Continental was particularly impressed
by Kuehne + Nagel’s flexibility and its
application of the latest IT systems in
its industry-specific service offering. The
comprehensive service package includes
receiving and unloading import containers, checking of manufacturing date,
storage, in- & out-handling, picking &
packing, inventory management and
nation-wide distribution to Continental
Tyres’ dealers and end users throughout the country. The operations are
being implemented at Theparak, where
Kuehne + Nagel has a modern logistics
centre.
www.conti-online.com
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A high-voltage
lead logistics solution
Since last December, in four locations in India Kuehne +
Nagel has provided comprehensive lead logistics services
for KEC International Limited, one of the world leaders
in the project business for the construction of power
transmission lines
KEC International is a part of the RPG
Group, one of India’s largest industrial conglomerates with about 60,000 employees in more than 20 companies spanning
a range of business sectors. An important
factor for the choice of Kuehne + Nagel as
the company’s Lead Logistics Provider
(LLP) was its good track record in offering
lead logistics solutions for Saregama India
Ltd., the entertainment unit of RPG Group.
In order to support KEC International
Limited in focusing on its core competence in the design, manufacture, supply and construction of turnkey projects
for power transmission lines and in
the execution of railway electrification
projects, under a three-year contract
Kuehne + Nagel is providing a comprehensive range of services. These include
order management, inbound and outbound transport planning and execution, lead logistics service provider procurement, freight bill audit services,
network analysis, freight management
and documentation.
The specialists in Kuehne + Nagel’s
lead logistics competence centre in Delhi ensure efficient implementation of
the comprehensive solution tailored to
the individual business requirements of
the customer. For the logistics provider,
whose award-winning web-based monitoring and reporting system KN Login
also forms a part of the package, its
cooperation with KEC International is
further proof of its capabilities in the
management of complex supply and
delivery chains in widely differing
industrial sectors.
www.kecrpg.com
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ROUND THE WORLD
John Deere centralises
spare parts distribution
in China
In May John Deere, one of the world’s leading manufacturers
of farm equipment, awarded Kuehne + Nagel a contract for
the management of its national service parts distribution
centre in China
In addition to agricultural equipment,
John Deere’s product range embraces
construction and forestry machinery,
communal technology and machines for
lawn, estate and golf course care. The
company employs some 50,000 people
in more than 100 production plants and
distribution organisations all over the
world, and sells its products in more
than 160 countries.
In the past, in China John Deere’s three
factories located in Tianjin, Jiamusi and
Ningbo, producing different types of
machines, offered after-sales services to
the dealers separately. With the objectives of better serving its dealers and
optimising service parts management in
China, John Deere has centralised all
after-sales services in a national distribution centre in Tianjin.
In the dedicated 5,500-sqm facility,
Kuehne + Nagel is responsible for the
management of around 10,000 stockkeeping units and 170,000 units of
John Deere’s products. Kuehne + Nagel’s
comprehensive services include inbound
transportation from the three factories
to the distribution centre, inventory
management, domestic distribution to
the manufacturer’s dealers in China as
well as a series of value-added services
such as inbound receiving, quality control, labelling, pick & pack operations
and order processing.
The customer was impressed by Kuehne
+ Nagel’s experience in the Chinese
logistics market and the company’s high
customer orientation and flexibility. In
view of the efficient organisation of the
distribution centre, John Deere plans to
use it in future as a distribution centre
for other countries in the Asia-Pacific
region.
www.deere.com
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PEOPLE & NEWS
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“Anchors aweigh!” for the Kühne
Logistics University in Hamburg
In the winter semester 2010/11 the Kühne Logistics
University (KLU) – Wissenschaftliche Hochschule für Logistik
und Unternehmensführung – will begin its teaching activities in the Hamburg HafenCity with the Master of Science
programme “Global Logistics”. As from 2014, roughly
450 students will receive top-level training and further
education at this private university which has excellent
links with international partner institutions
Seven years ago, the public-interest
Kuehne Foundation established the Hamburg School of Logistics, which was later
renamed “Kuehne School”, at the Technical University Hamburg-Harburg (TUHH).
In connection with the establishment of
the new institution in March 2010 the
Foundation has now decided to detach
the school from its association with
TUHH and to operate it as an independent private university.
Founding President of the KLU is Dr.
Wolfgang Peiner, a trained freight forwarder and accountant who for many
years was Finance Senator of the Free
and Hanseatic City of Hamburg and is a
member of the Board of Directors of
Donor Klaus-Michael Kuehne and KLU President Dr. Wolfgang Peiner
Kuehne + Nagel International AG. The
Kuehne Foundation is currently examining potential locations for a dedicated
building for the University in the HafenCity of Hamburg.
The next five years will see the KLU develop two international non-consecutive
Master’s programmes, a Bachelor’s programme and a continuing education programme. The profile of the KLU will be
completed with a PhD fellowship programme as well as international and interdisciplinary research. The central theme of
the KLU is Business Management with a
particular focus on “Logistics” in its economic, technological and international
aspects. It will thus serve as an exemplary
educational institution for qualified management and leadership in complex circumstances.
“In addition to excellent specialised
know-how, executives today need a firstrate knowledge of management,” said
the Foundation’s sole donor KlausMichael Kuehne. “By the establishment
of the KLU, the Kuehne Foundation wants
to increase the attractiveness of global
logistics as an academic subject and as
a field of research, and also to help
strengthen the standing of the academic
stronghold of Hamburg against international competition.”
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Picture: Fotofrizz; Source: HafenCity Hamburg GmbH
KLU President Dr. Wolfgang Peiner added:
“A broad knowledge of logistics provides
future managers with a virtually unrivalled all-round preparation for tackling
global challenges. In this connection
the Kühne Logistics University, with its
unswervingly international orientation,
places a special emphasis on issues of
qualified and sustainable corporate management.”
Teaching at KLU will begin on 27 September 2010 with the start of the Master’s programme “Global Logistics”. This
is designed for persons from all over the
world who have successfully completed
bachelor degree courses, wish to deepen
their knowledge of logistics and supply
chain management and see the complex
field of logistics as a preparation for
managerial tasks in all areas of commerce and industry. In addition to a
semester abroad at one of the partner
universities in China, India or the USA,
the programme also includes a threemonth period of work experience. This
summer will also see the start of the two
Summer Schools for managerial staff
from industry, trade and the service sector. In 2014, when all the programmes
will have been launched, roughly 450
students will be registered at the KLU in
the Hamburg HafenCity.
www.the-klu.org
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PEOPLE & NEWS
Top-ranking trainees
Once again Kuehne + Nagel has gained
the top position in the latest Best Azubi contest, the biggest test of knowledge for Germany’s logistics trainees
which is held each year by the industry
magazine Verkehrsrundschau. After Stefanie Kettenhold in 2009, this year the
first place among more than 1600 contestants was won by Mike Scheffler, a
trainee forwarding and logistics manager from the Kuehne + Nagel office in
Hanover. But not only his performance
is an impressive testimony to the con-
tinued success of the company’s staff
training programme. With Andreas
Kowalski (from Bremen, place 3), Ro land Sixt (Straubing, 4), Kerstin Irmer
(Bremen, 5), Max Munzert (Lichtenfels,
9), Michael Kahl (Bremen, 9), Fredericke Strauss (Hamburg, 9), Roland
Goedde (Arnsberg, 14), Martin Migge
(Dortmund, 16), Mireya Raasch (Bremen, 16) and Annika Warns (Bremen,
18), Kuehne + Nagel and its subsidiary
Stute Verkehrs-GmbH captured no less
than eleven of the first twenty places.
Proud management with its “Best Azubis” (f.t.l): Karl Gernandt (Executive Vice
Chairman), Andreas Kowalski (place 3), Hans-Georg Brinkmann (Managing Director
Germany), Mike Scheffler (place 1), Lothar Harings (Chief Human Resources Officer)
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