Kuehne & Nagel ties up with FM Logistic
A joint venture has been announced by global forwarder Kuehne & Nagel and French logistics company, FM Logistic. The new company, to be called COLOGIC, will provide a range of logistics services including product planning, purchasing, product customisation and other value added services to the high tech sector.
The tie up between the two companies will provide K&N with stronger logistics capabilities, particularly in the French market. FM Logistic will gain from K&N’s global forwarding network, and the synergistic relationship should increase both companies’ value proposition to the high tech manufacturing industry. At the same time it was also announced that COLOGIC will act as a Lead Logistics Provider for Hewlett Packard Imaging and Printing range (IPG), taking over the management of the operations which were formerly undertaken by K&N and FM Logistic.
The past two years have seen significant expansion by Kuehne & Nagel across a number of geographies, capabilities and sectors. In Germany it has made acquisitions in the contract logistics and road freight sectors. It has also entered into a JV with Wincanton in the UK (focused on the retail sector) and with Asia Pacific forwarder Kintetsu. Its new relationship with FM Logistic will see it strengthen its position in the French market where it has previously lacked scale.
For FM Logistic, the joint venture offers slightly different benefits. By entering into an alliance with a global player, it has decreased the likelihood of being marginalized in its relationship with blue chip clients such as Hewlett Packard. In the past the company, and others like it, have found themselves usurped by global logistics companies which have taken on the role of Lead Logistics Provider. As a second tier supplier there is little room for innovation or risk/reward sharing deals which can enhance margins.
