Tag: Kuehne & Nagel

Kuehne + Nagel growth-oriented logistics development in the Asia Pacific region

Kuehne + Nagel is rapidly developing its contract logistics business in the Asia Pacific region. Accelerated expansion in regional warehousing, distribution and lead logistics capacities, particularly in China and India, together with a strategic focus on innovative product development and process optimization, represent the cornerstones of the company’s plan to enhance its market position in the Asia Pacific region, as well as globally.

Kuehne + Nagel rolled out its expansion plan for contract logistics in the Asia Pacific region in 2005. Since then, the business unit’s activities have considerably strengthened, with a series of significant business wins and the opening of new facilities. At present, the company’s contract logistics network in Asia Pacific comprises 43 locations in 13 countries, with a managed warehouse space of 200,000 sqm.

Dirk Reich, EVP Contract Logistics and member of the Management Board of Kuehne + Nagel International AG, said at a press conference in Hong Kong today, “To achieve our objective of offering customers in Asia Pacific high-value logistics services, we plan to significantly expand our infrastructure facilities across the entire region. By the end of 2007, our total warehouse space will rise to 300,000 sqm at more than 60 locations. We envisage organic growth well above the market average and selected local acquisitions, and thereby to achieve a leading market position in this dynamic region.”

Key to the development plan is an enhanced service portfolio to cover a wide spectrum of needs and applications along the global supply chain. This extends from the implementation of Kuehne + Nagel’s globally standardized warehouse management systems across the region, and the implementation of ever more sophisticated industry-specific supply chain management solutions, for example for the automotive, high-tech, industrial goods, pharmaceutical and healthcare, as well as retail and Fast Moving Consumer Goods (FMCG) sectors, through to specific services for selected niche markets, such as aviation and hotel logistics. This enhanced portfolio will allow Kuehne + Nagel to optimally support customers in meeting their individual supply chain requirements.

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Swiss Kuehne & Nagel To Carry Out UK House of Fraser Home Delivery Services

Swiss logistics company Kuehne & Nagel International AG started to carry out the home delivery services for made-to-order furniture of UK department stores operator House of Fraser as of the beginning of February 2007, Kuehne & Nagel reported on February 8, 2007.

The financial terms of the deal were not disclosed.

Under the terms of the contract, Kuehne & Nagel will be responsible for the warehousing and for some 30,000 deliveries annually to customers across UK and Ireland. House of Fraser will make cost savings through reduced inventory by a closer alignment of order to delivery time and through the support of Kuehne & Nagel’s information technology (IT) and booking processes. The logistics company will integrate House of Fraser business into its furniture distribution

network which is used by other unnamed UK furniture retailers for more than 175,000 deliveries annually.

Kuehne & Nagel (www.kuehne-nagel.com) employs 45,000 at 830 locations in more than 100 countries worldwide. The company provides seafreight, airfreight, contract logistics and overland businesses and IT-based supply chain

management services. Its UK and Ireland organisation operates at 80 locations and employs more than 10,000.

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UK road haulage market update

The road haulage industry is a vital part of the UK’s freight-transportation system, although it is a mature market and one that has little real growth potential. This is demonstrated by the fact that, in 2005, the volume of goods lifted by road by GB-registered goods vehicles weighing over 3.5 tonnes in Great Britain increased by 0.1% to 1.75 billion tonnes, while the volume of goods moved by road increased by 0.3%, to 152.7 billion tonne kilometres.

Advances in vehicle technology, such as improvements to fuel efficiency and the better reliability of new trucks, have contributed significantly to the developments made in the operational efficiency of the haulage companies. Also important has been the trend by the operators to develop strategies to improve the efficiency of their assets by, for example, improving vehicle utilisation through better planning of journeys.

Leading companies within the road haulage industry are under pressure from their customers to establish and develop global logistics networks. This demand has led to a spate of acquisitions and mergers among the leading companies, such as the acquisition of Exel PLC, the UK’s leading freight-distribution company, by Germany-based Deutsche Post, and the merger between haulier ACR Logistics and Kuehne + Nagel, another Germany-based logistics operator.

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