kn_world_1_2012_en.pdf - kuehne · lorem ipsum 1 kühne+nagel world nr. 2/2007 interview with karl...

1LOREM I P SUM

Kühne + Nagel World Nr. 2/2007

Interview with Karl Gernandt

Growth through customer focus

Strengthening of overland transport activities

Strategically well positioned

worldM A G A Z I N E NO . 1 / 12

AU12-0570_Journal_KN_World 1_2012_EN_Layout 1 13.02.12 10:54 Seite 1

Contents

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: [email protected]

Editor

Martin Spohn

Design and layout

Kaufmann Kommunikationsdesign

Print

Zertani GmbH & Co.

Die Druckerei KG

D-28001 Bremen

Frequency

Twice a year

Languages

English and German

Print run

30,000

Focus4 Growth through customer focus –

Interview with Karl Gernandt

8 Kuehne + Nagel and Duisburg: a success story!

12 Strengthening of overland transport activities in South America and Europe

Markets & Products14 KN Packaging Solutions:

A big demand for individual solutions!

Around the World16 Kuehne + Nagel manages

plant supplies for MAN

17 New Automotive Solution Centre in India

20 Kuehne + Nagel expands its logistics facility in the Dubai Logistics City

People & News22 CK-CARE: International think tank

on the theme of allergy

2 CONTENTS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

KUEHNE + NAGEL . . . . . . . WORLD NO . 1/2012


Dear Readers,

3ED I TOR IAL. . . . . . .

Almost a year ago Karl Gernandt took over the chairmanship of the Board of Directorsof Kuehne + Nagel International AG from Klaus-Michael Kuehne. In a detailed inter-view, Karl Gernandt told KN World what priorities he sets, what kind of managementphilosophy he follows and how he judges the economic situation.

The packaging of goods for transport is not normally a key topic in panel discussionsor in the media. And yet professional packing is a key element for both sea and airfreight. More and more customers are making use of the services of Kuehne + Nagel'sPackaging Solution Centre, which specialises in safe, economical and environment-friendly packaging solutions. You can learn more about this interesting niche producton pages 14 and 15.

Last year we consistently pursued our growth strategy in the field of road and rail trans-port. This was reflected in a strengthening of our network, partly by means of acquisi-tions, which took place primarily in Europe and South America (pages 12 and 13). Weare also very well positioned in the niche segment of perishables logistics, where, withthe acquisition of the Dutch family owned company J. van de Put Fresh Cargo Handling,a specialist in the handling of perishable air cargo became a member of the Kuehne +Nagel Group (page 11).

Major investments for the future development of our company were made in Duisburgand Cartagena. In Duisburg, with the expansion of the Logistics Campus, we wroteanother chapter in a decades-long success story (pages 8 and 9). And in Cartagena inColombia we brought a logistics facility into service which serves as a regional hub andenables us to offer a comprehensive contract logistics portfolio (page 10).

I wish you an interesting read.

Your Reinhard LangeCEO Kuehne + Nagel International AG



4. . . . . . .

Mr. Gernandt, you have been at thehead of the Kuehne + Nagel Group as Chairman of the Board ofDirectors since May 2011. Preciselyin the second half of last year theglobal economy slowed down andthe forecasts for 2012 do not look optimistic.

How is a globally operating companymanaged in times such as these?Karl Gernandt: The Board of Directorsand the Management Board have anexcellent level of expertise and manageour company in a highly successfulmanner with what I call “proactive riskmanagement”. Supported by soundlybased market analyses, Kuehne +Nagel is well prepared to deal with dif-ferent economic scenarios. Last year inparticular, we experienced large diffe-rences between the various economiczones. On the one hand we saw dyna-mic market growth in Asia and SouthAmerica and the “exceptional boom” inGermany, while on the other hand theUS economy was afflicted by structuralproblems, growth in the Middle Eastslowed down because of political tur-moil, and there was a difficult businessenvironment in Europe, notably inSouth European countries.

In 2011 our Group concentrated onfurther enhancing the attractiveness ofour industry-specific logistics offering.We also invested in the expansion of

4. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

“We are committed to growththrough a customer-focused approach”KN WORLD IN CONVERSATION WITH…

KARL GERNANDT

CHAIRMAN OF THE BOARD OF DIRECTORS

OF KUEHNE + NAGEL INTERNATIONAL AG

FOCUS



5FOCUS. . . . . . .

our activities in regions with a highmarket potential such as Asia andSouth America. Proceeding in a judicio-us manner, we have consistently maxi-mised growth opportunities all over theworld.

How would you describe your style of management? Karl Gernandt: I adopt a strategic,generalised approach which is basedon delegation, consistency and team-work. In my experience, a companydevelops best if one has the courageand confidence to delegate tasks andto empower a team. For me it is impor-tant that the agreed targets are consis-tently pursued, monitored and attai-ned, and that the focus of our work willalways be within a defined area.

Kuehne + Nagel is known for itsstrong corporate culture. How important is this for the success ofthe company?Karl Gernandt: The corporate culture ofKuehne + Nagel is an important distin-guishing feature. Our values are sharedwith commitment and conviction by ourstaff all over the world. Besides motiva-ting our employees, such a identificati-on with the company also leads to ahigh level of efficiency and productivi-ty. Our strong corporate culture is alsowell known for its outward effect in theform of sustained customer loyalty,cooperation with business partners,

and, last but not least, our success instaff recruitment. However, it is alsoimportant that we are able to adaptour corporate culture to the changingdemands of the market and society.This means that we constantly growand improve to meet altering require-ments and changes in our operatingenvironment, without losing the charac-ter of our company. Kuehne + Nagelbears the imprint of a very strong entre-preneurial personality, Mr. Klaus-MichaelKuehne.

Kuehne + Nagel has maintained agood performance for many yearsand has been distinguished by itsgood results even in times of crisis.What are the main reasons for this success?Karl Gernandt: Kuehne + Nagel is com-mitted to growth, a customer-focusedapproach and integrated services. Ourprofound knowledge of individual spe-cific industries enables us to give ourcustomers excellent advice on allaspects of logistics and provide themwith tailor-made solutions. This sup-ports our customers to achieve greatercost-effectiveness and provides us withexcellent opportunities for closer part-nerships and collaborations. In additi-on, our company also concentrates onthe development of other attractive tra-de lanes such as the transpacific routes,and on niche segments such as hotel orperishables logistics.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

IN MY EXPERIENCE,

A COMPANY DEVELOPS BEST

IF ONE HAS THE COURAGE

AND CONFIDENCE TO

DELEGATE TASKS AND TO

EMPOWER A TEAM.



6 FOCUS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

In your view, what were the mostnotable developments and events inthe 2011 business year? Karl Gernandt: Overall, I am contentthat in a turbulent year, Kuehne +Nagel was able to stay firmly on coursein line with our strategic objectives. Asplanned, our perishables logistics andoverland transport operations werestrengthened by the acquisitions wemade during this period. In Cartagenain Colombia we opened a state-of-the-art logistics centre with 10,000 sqm. ofwarehouse space, and in Germany webrought into operation the expandedLogistics Campus in Duisburg whichhas now a warehousing space of160,000 sqm. I would also like to singleout the further development of ourindustry-specific solutions and in parti-cular those that we now offer the phar-maceutical industry.

Our company has been stabilised andfurther strengthened by the appoint-ment of Horst-Joachim Schacht (sea-freight) and Tim Scharwath (airfreight)as new members of the Kuehne + NagelInternational AG Management Board,and the prolongation of the contractsof Reinhard Lange, Gerard van Kesterenand Dirk Reich.

And, of course, the personal decision byMr. Kuehne to hand over the position ofChairman of the Board of Directors to

me was a highlight of last year, aresponsibility which I regard with thehighest sense of duty.

How do you judge the economicenvironment for Kuehne + Nagel in 2012?Karl Gernandt: At the moment, in viewof the development and persistence ofthe Euro debt crisis and the volatility ofthe world markets, it is very difficult tomake a reliable forecast. However, I donot expect a worldwide economic crashand consider a global growth dynamicto be more likely. As I already mentio-ned, Kuehne + Nagel is prepared tohandle a variety of scenarios, and Iexpect our company to show a furthergrowth in earnings in 2012.

What are your targets for 2012?Karl Gernandt: The foremost aim is tomaintain our successful course and tohandle difficult situations in a sure andconsidered manner. The objective ofgrowing twice as fast as the market inall business fields stands unchanged.In this way we will remain an attractivebusiness partner for our customers andan attractive employer for our staff.

Despite consolidation the inter-national logistics market is still veryfragmented. How does a companylike Kuehne + Nagel stand out fromits competitors?

Karl Gernandt: We distinguish oursel-ves by our customer focus, our highlyqualified and motivated staff and ourclose-knit, global logistics infrastructu-re. With our comprehensive range ofindustry-specific solutions and sophisti-cated IT systems, we also have majorkey differentiators. However, the crucialfactor is our corporate culture whichhas developed for almost a 125 yearsand determines our mode of operation.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

OVERALL, I AM CONTENT

THAT IN A TURBULENT

YEAR, KUEHNE + NAGEL WAS

ABLE TO STAY FIRMLY ON

COURSE IN LINE WITH OUR

STRATEGIC OBJECTIVES.

AS PLANNED, OUR

PERISHABLES LOGISTICS

AND OVERLAND TRANSPORT

OPERATIONS WERE

STRENGTHENED BY THE

ACQUISITIONS WE MADE

DURING THIS PERIOD.



You have now been active in thelogistics industry for three years.What, for you, is the attraction of the industry?Karl Gernandt: All of us at Kuehne +Nagel work in a very exciting environ-ment. No other industry is as closely lin-ked with the development of the worldeconomy as logistics, and no otherindustry benefits so much from the glo-balisation of markets. Furthermore,

logistics has developed into one of themain competitive factors for tradingand industrial companies. I am excitedby the potential of our industry, which,in my view, lies primarily in close, stra-tegic cooperation with customers andthe optimisation of our processes. I amsure there are many more areas whereKuehne + Nagel will set the standard infuture.

Management training in logistics is a constantly recurring theme. What are the essential skills andqualifications for a position of leadership?Karl Gernandt: In addition to a highlevel of professional expertise and socialskills, business administration knowled-ge is very important. The best foundati-on for a managerial career in logisticscan be obtained in master courses witha practical orientation (Master Logistics/ Master Management) such as are offe-red, for instance, at the Kuehne LogisticsUniversity in Hamburg.

In principle I support every kind of trai-ning and further education in ourGroup and consider the further deve-lopment of our staff to be very impor-tant both for them and for the organi-sation. Only those who constantly broa-den and deepen their knowledge havecreative power – for our customers justas for our company and for themselves.

MR. GERNANDT, WHAT DO

THE FOLLOWING KEYWORDS

IMMEDIATELY BRING TO

MIND TO YOU:

Globalisation… is the foundation of our business, our “carotid artery”, and will continue to influence our everyday life in future.

Debt limit… all states and companies must keep a very careful watchon their spending.

Sustainability / Compliance… will become increasingly important in future. Particularlyin the past year we have paved the way for this at Kuehne + Nagel.

Development of young talent… is absolutely crucial for acompany. I practice it myself inmy team, where we train anddevelop very young colleagues for a certain length of time and closely accompany them in their subsequent career. This has given excellent results,and both sides benefit greatlyfrom this model.

Sportsmanship… I used to be an athlete, a sprinter, so I regard an explosive but precise start, aconcentrated, fair race and awinning finish as a kind of lifephilosophy. I count sports-manship, fairness and teamperformance among the mainpillars of my character.

7. . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

AT THE MOMENT, IN VIEW

OF THE DEVELOPMENT AND

PERSISTENCE OF THE EURO

DEBT CRISIS AND THE

VOLATILITY OF THE WORLD

MARKETS, IT IS VERY

DIFFICULT TO MAKE A

RELIABLE FORECAST.

HOWEVER, I DO NOT EXPECT

A WORLDWIDE ECONOMIC

CRASH AND CONSIDER A

GLOBAL GROWTH DYNAMIC

TO BE MORE LIKELY.

FOCUS



Kuehne + Nagel and Duisburg: a success story!In response to strong demand for integrated, industry-specific logistics services and warehousing space, Kuehne +Nagel has further expanded its logistics campus on the logport site which has been in operation since 2003. After the completion of the third and fourth constructionphases, the company has warehousing and logistics spacetotalling around 160,000 square metres in the Duisburg port area. Reason enough to celebrate the opening of theenlarged logistics campus.

On 9 September 2011 Karl Gernandt,Chairman of the Board of Directors ofKuehne + Nagel International AG, wel-comed a large number of customers andbusiness partners to the ceremonialopening of the enlarged logistics cam-pus in Duisburg. In his address helooked optimistically into the future andunderlined the importance of this logis-tics location. “The opening of what arealready the third and fourth expansion

8 FOCUS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .



stages is a clear demonstration ofdynamic growth,” he said. “The capabil-ities which the Kuehne + Nagel Grouphas demonstrated for decades, com-bined with the infrastructural advan-tages of Duisburg, allow an ideal logis-tics offering. As a result of its ideal geo-graphic position, North Rhine-West-phalia was already an attractive loca-tion for Kuehne + Nagel 57 years ago,”Karl Gernandt continued. The companyhas progressively established a region-wide branch network which now encom-passes a staff of 900 in nine locations.Logistics received a strong boost fromthe globalisation of the economy and

the associated increase in demand forsupply chain management solutionsfrom a single source.

Since the 1990s Kuehne + Nagel hasoperated a 60,000 square metre logis-tics centre in the Kasslerfeld area, andKlaus-Michael Kuehne, now HonoraryChairman of Kuehne + Nagel Interna-tional AG, paved the ground for theDuisburg logport well in advance inclose collaboration with port directorErich Staake. The facilities have beensteadily expanded in line with the gooddevelopment of business, so thatKuehne + Nagel is now one of thebiggest investors in the logport. Afterthe completion of construction phases 3and 4, the company has a warehousingand logistics surface of around 100,000square metres at its disposal in Duisburglogport. “In Germany Kuehne + Nagelhas created warehousing space of morethan 225,000 square metres in the lastthree years,” Hans-Georg Brinkmann,Managing Director of the German organ-isation, added. “And Duisburg is the coreof our operations in North Rhine-West-phalia and one of our biggest logisticshubs worldwide,” he stressed.

Systematic implementation of the campus conceptDuisburg is the first place where Kuehne +Nagel has systematically realised thecampus concept. By the concentration ofdifferent facilities and highly qualified

specialists in a strategic location, it ispossible to handle demand peaks in aflexible manner. In other words, cus-tomers of different industries and withbusiness peaks in different seasons canbe provided with an ideal service. Fur-thermore, this concept optimises opera-tional efficiency, creates synergies andallows the best combination of differenttransport modes and logistics services.The utilisation of the Europe-wideKuehne + Nagel intermodal transportnetwork at the Duisburg location alsoensures highly efficient, resource-savingtransport operations.

An ongoing success storyKuehne + Nagel will continuouslystrengthen and expand its service port-folio, network and infrastructure in linewith the needs of its customers, Karl Ger-nandt emphasised in Duisburg: “In part-nership with the participants in a logis-tics chain – be they suppliers, producersor end customers – the complex, multi-stage system constituted by flows ofgoods, information or financial re sour -ces across national boundaries is man-aged to optimise the overall perform-ance of the supply chain.” The aim is forcustomers to benefit from Kuehne +Nagel’s integrated logistics expertisethroughout the supply chain, from thefirst to the last mile. An important ele-ment in this connection is the develop-ment of European overland and inter-modal transport.

Strong commitment for the logistics location

Duisburg: (f.l.t.r.) Matthias Weiner, Head

of the Region West Kuehne + Nagel

(AG & Co.) KG, Hans-Georg Brinkmann,

Managing Director Kuehne + Nagel

(AG & Co.) KG, Erich Staake, Chief Executive

Officer of Duisburger Hafen AG.

9FOCUS. . . . . . .



New logistics facility in Cartagena

In October 2011, Kuehne + Nagel hastaken another state-of-the-art logisticscentre into operation. Chairman of theBoard of Directors Karl Gernandt per-formed the official opening ceremony ofthe complex in Cartagena in the pres-ence of the Colombian Transport Minis-ter German Cardona and numerous customers and business partners. Thefacility, which was completed in only 12months, is located inside the Contecarport area and provides 10,000 square

metres of warehouse space and 11,000pallet positions. The logistics and distri-bution centre serves as a regional hubfor the Kuehne + Nagel Group in SouthAmerica and enables it to offer its cus-tomers a comprehensive contract logis-tics portfolio.

The Contecar location is of strategicimportance. The privately owned portfacility close to the industrial zone iscurrently being upgraded to accommo-

Kuehne + Nagel has brought a modern distribution centerinto service on the Caribbean coast of Colombia in the northof the country.

10 FOCUS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .



Perishables logistics is a major pillar ofKuehne + Nagel’s growth strategy. Withthe acquisition at the beginning of theyear of three South American compa-nies specialising in logistics service forperishables, namely Translago S.A.S.,Agencia de Aduanas Excelsia Ltda(both Colombia) and MastertransportSA (Ecuador), Kuehne + Nagel movedup to become the region’s leadingprovider of perishables logistic opera-tions (see KN World No. 1/2011).

In July 2011 the company announcedthe takeover of the Dutch J. van de PutFresh Cargo Handling, Amsterdam. Thisfamily owned business specialises inthe handling of perishable airfreightcargo such as flowers, fruit and vegeta-bles. It is domiciled at Amsterdam Schi -

Further expansion of “fresh-to-door” network Kuehne + Nagel expands its perishables network step by step.

phol airport, the biggest European airfreight hub for perishable goods. J. van de Put Fresh Cargo Handling wasfounded in 1976 and concentrates onlogistics, customs clearance, handlingand added value services for perish-ables. With a staff of 250, the companyhas gained a good reputation as aresult of its profound product specificknowledge and well established facili-ties.

The acquisition of J. van de Put fits per-fectly into Kuehne + Nagel’s globalgrowth strategy in the field of perish-ables logistics. At the same time it fillsa gap in the handling chain for thesegoods, thus enabling Kuehne + Nagelto offer door-to-door solutions for per-ishable goods on a one-stop basis.

....

....

....

....

....

....

....

....

....

....

....

....

....

....

....

....

....

....

....

....

....

....

....

....

....

....

....

....

....

....

....

....

....

....

....

....

....

....

....

date postpanamax ships with a capac-ity of up to 12,000 TEU from 2013.The investments are certain to pay offwhen the expansion of the PanamaCanal is completed. Work on theenlargement of the locks is currently inprogress, and is scheduled for comple-tion in time for the centenary of thecanal’s opening.

For Kuehne + Nagel the new facility isanother important step in the expan-sion of its activities in Colombia. Atthis strategically important location,Kuehne + Nagel can offer its cus-tomers integrated services of the high-est standard and support them in opti-mising costs and processes along theirsupply chains. Kuehne + Nagel’s ex -pertise in combination with the port’sefficiency will provide Cartagena withstrong support in realising its vision ofbecoming an important global logis-tics hub. Kuehne + Nagel has had itsown organisation in Colombia since1988 and now operates a total ofeight offices employing a staff of 475across the country.

11FOCUS. . . . . . .

J. van de Put Fresh Cargo Handling was founded in 1976 and specialises in the handling

of perishable airfreight cargo.

Soon, 12,000 TEU vessels will transit

through the Panama Canal.



Strengthening of overlandtransport activities inSouth America and EuropeKuehne + Nagel is consistently pursuing its growth strategyin the field of overland transport and expanding its networkwith selective investments. In 2011 the Brazilian GrupoEichenberg and the British company RH Freight joined theKuehne + Nagel Group, which is also establishing a Eurohubin Germany based on the acquisition of its long-standingpartner Carl Drude.

12

Grupo Eichenberg, a family ownedbusiness, can look back on a 75-year his-tory. Today headquartered in Porto Ale-gre, it employs 700 people at 14 loca-tions. A specialist in integrated logisticsservices and overland transport activi-ties, Grupo Eichenberg is one of the lead-ing road logistics operators both in theBrazilian domestic market and in Merco-sur traffic to and from Argentina, Chileand Uruguay. The company is also a suc-cessful provider of domestic airfreightservices, a very important segment of theBrazilian logistics market. With GrupoEichenberg, Kuehne + Nagel has gaineda partner that supports its growth strate-gy and ideally complements the serviceportfolio of its successful national com-pany. Gerson Eichenberg, the presidentof Grupo Eichenberg, stresses that “in adynamically growing market, firms fromtrade and industry are interested in inter-national logistics services that createadded value and help to strengthen theirown competitive position.”

Kuehne + Nagel acquires RH Freight In April 2011, Kuehne + Nagel an -nounced the acquisition of the shares ofthe British company Rennies InvestmentLimited (RH Freight), which is the marketleader for groupage freight betweencontinental Europe and the UK. Head-quartered in Nottingham, RH Freightwas founded 41 years ago and employsa staff of 630 at 17 locations. The com-pany operates daily to more than 30European destinations from its twofreight terminals in Nottingham andSoutheast London. The acquisition of RHFreight by Kuehne + Nagel is a classicwin-win situation. Besides extending itsEuropean network and its customerbase, Kuehne + Nagel has also strength-ened its position as an integrated logis-tics provider in the British market. Forits part, RH Freight can now offer its cus-tomers a worldwide network and a fullrange of services comprising airfreight,seafreight, contract logistics and over-land transport.

FOCUS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .



Kuehne + Nagel takes over DrudeLogistik and sets up Eurohub With the aim of establishing a Eurohub,Kuehne + Nagel has acquired its long-standing partner Carl Drude GmbH &Co. KG, which is based in Hauneck /Bad Hersfeld in the state of Hesse.Kuehne + Nagel will operate daily linesto 50 European economic centres rout-ed via this new central platform. Pre-senting the reasons for acquiring thecompany, Dirk Reich, member of theManagement Board of Kuehne + NagelInternational AG, said that with theacquisition of Drude Logistik, Kuehne +Nagel gets access to a functional hubfor its international groupage services

that fully meets its requirements. Con-sistent cargo consolidation and over -night transhipment operations willenable departure frequencies to beincreased, reduce transit times and bet-ter capacity utilisation. The new rout-ing via the Eurohub is expected to becompleted by the middle of 2012.

Tradition and innovationDrude Logistik can look back on a longhistory with a tradition of innovationand proximity to its customers. The com-pany, which was founded in 1894, spe-cialises in hub operations for interna-tional groupage services. In Hauneck itoperates a 7,200 sqm. transhipment ter-

13FOCUS. . . . . . .

minal with 105 loading bays. In addi-tion, the company has about 11,500sqm. of warehouse space under its man-agement.

Broad press responseThe acquisition of Drude Logistik byKuehne + Nagel also met with a broadresponse from the media, with reportson the transaction by all major interna-tional business publications and logis-tics trade magazines from the Frank-furter Allgemeine Zeitung (FAZ) to theNeue Zürcher Zeitung (NZZ) and theDow Jones news agency.



Even the most rational consumers willsometimes buy a product on emotionalgrounds – if its packaging speciallyappeals to them. Or on the other handthey may be put off buying by a prod-uct presentation that is not in line withtheir taste. So packagings are muchmore than mere containers for the stor-age of a product and may be crucial forits success or failure in the market.“Packaging is the science, art, and tech-nology of enclosing or protecting prod-ucts for distribution, storage, sale, anduse,” to quote the somewhat flowerydefinition in Wikipedia.org. “Packagingcontains, protects, preserves, trans-ports, informs, and sells,” the onlineencyclopaedia continues. These defini-tions may sound somewhat over thetop, but they do document the impor-tance of correct and safe packaging –be it in the warehouse, during transportor on the supermarket shelf. It is notjust by chance that Kuehne + Nagelfocuses on this segment and offersworldwide packaging services for allindustrial groups.

The right offering for every customerEvery product, transport mode andevery destination calls for individualpackaging. This is a demanding taskeven for experts, and continually facesthem with big new challenges. Notinfrequently, packagings with a differ-ent configuration may be needed evenfor products that seem identical at firstsight, such as television sets or DVDplayers with different cable terminals.So there is much more to it than justhammering together “transport crates”.First of all the goods must be protectedagainst damage, loss, corrosion andtheft. Secondly there is an importanteconomic aspect because professionalsolutions reduce costs by savings onmaterial, loading, stowage and the pre-vention of damage. Thirdly, one shouldnot underestimate the importance ofvisual appearance and its impact onthe image of the products. It is also

14 MARKET S & PRODUCTS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

A big demand for individual solutions! Even in the age of modern transport containers, the properpackaging of products has lost none of its importance.Kuehne + Nagel’s Packaging Solution Centre specialises in the safe, economical and environment-friendly packing of goods. With these services Kuehne + Nagel offers its customers true added value, as shown by the example ofMAN Truck & Bus in Nuremberg.



15MARKET S & PRODUCTS. . . . . . .

engines to Kuehne + Nagel. Under thetwo-year contract, Kuehne + Nagel willprepare the completely knocked down(CKD) engines for shipment to Brazil,where they will be assembled. All in all,Kuehne + Nagel will pack and ware-house roughly 550,000 automotivecomponents over the two-year period.

The award of the contract was precededby extensive preparatory work, whichinvolved Kuehne + Nagel’s PackagingSolution Centre (PSC) developing andimplementing a special solution for itscustomer. A major challenge was pre-sented by the requirements that theengine parts should be protected fromcorrosion for at least three years, thatthe packaging should also protect themfrom damage, and that the capacity ofthe container must be optimally utilised.PSC decided on a combination of spe-cial paper, cardboard and VCI film (VCIstands for Volatile Corrosion Inhibitor,a substance that protects metallicmaterials from corrosion).

important to develop environment-friendly solutions and to use raw mate-rials in a responsible manner.

Concentration of know-how in the Packaging Solution Centre The Kuehne + Nagel subsidiary Cargo -pack Verpackungsgesellschaft für In du -s triegüter GmbH, located in Denken -dorf, Germany, specialises exclusively inpackaging solutions. The company hasmany years of experience and a greatdeal of expertise in this field, andoffers a complete range extending fromthe regular stowage of goods for railand road transport to shrink-on alu-minium or plastic films, the safe pack-ing of dangerous goods, the design ofultra-light containers for airfreight orthe management of complete packingand shipping departments within theframework of outsourcing projects.There is no field that Cargopack cannothandle.

To enable all customers of the globalKuehne + Nagel Group to benefit fromthe specialised know-how and experi-ence of Cargopack, the global compe-tence centre “Packaging Solution Cen-tre (PSC)” has been created. PSC con-sists of a team of experts from all partsof the world who have been groupedtogether to develop or optimise profes-sional packaging solutions on the basisof its concentrated expertise under thedirection of Jörg Neumeister, Cargo -pack Managing Director and Vice Presi-dent Global Packaging Solution Centre.Solutions are offered for goods from allindustries and for all transport modes,and embrace a range extending fromsea and air shipments to corrosion-pro-tective solutions and packagings forhazardous and temperature-sensitivegoods. The spectrum of packagingmaterials extends from wood and card-board through glass and plastic to recy-cled products. The conditions to whichproducts and pieces of cargo areexposed during warehousing and trans-

port, and against which they must beprotected, are just as many and varied.Physical forces acting upon the goodsduring transhipment, stacking or move-ments of the transport vehicle, areunavoidable. It is of no less importanceto protect the goods from climatic influ-ences such as large temperature varia-tions, atmospheric humidity, dust orbright light, as well as from pests andvermin.

For these reasons there is no “one sizefits all” solution, and Kuehne + Nageltherefore deals with every packingorder individually. Every product isassessed and tested in good time with-in regard to its sensitivity and othercharacteristics. It is exactly measuredand weighed, while individual require-ments and probable external influencesare defined and recorded in a detailedplan. On the basis of these findings,either an existing packing solution isselected or, if necessary, a new one isdeveloped and produced.

Rising demand The demand for professional packagingis large and is rising continuously.“Packaging solutions are elementarycomponents of modern supply chains,”Jörg Neumeister explains. “They offereffective damage prevention, whichreduces costs. They also make a contri-bution, which should not be underesti-mated since it amounts to a true com-petitive advantage, towards getting theproducts to the customer or the retailshelves more quickly.” Innovation alsooccupies a prominent position, for thepackaging industry is constantly on thelookout for new materials that bringeconomic, technical, aesthetic and eco-logical advantages.

Exacting contract from MAN Truck & BusThe commercial vehicle manufacturerMAN Truck & Bus in Nuremberg hasawarded the packing contract for its

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

ABOUT CKD

The term Completely Knocked Down (CKD)

originates from vehicle manufacturing.

Many manufacturers transport their vehicles

not in the assembled but in the disassembled

state. In its most advanced form, known

as Completely Knocked Down, they are

shipped as kits of separate components.

Although in some cases customs-related

factors are a reason for adopting this form

of shipment, its primary aim is to establish

production in another country and to

train staff locally. This is of particular

importance in countries with large home

markets and emerging economies.



16 AROUND THE WORLD. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Kuehne + Nagel and MAN Truck & Busare linked by a well-proven cooperation.The logistics company has organisedthe transport of supplies between theMAN facilities in Germany and Mexicoand those in Brazil and South Africa fora number of years. In 2011 it was fur-ther entrusted with managing suppliesto the MAN production plants in SouthAfrica and Saudi Arabia. This meansthat Kuehne + Nagel is responsible forthe seafreight shipment of completelyknocked down truck tractor units from

the MAN plants in Germany and Aus-tria. The units are assembled at thelocations in South Africa and SaudiArabia and delivered to the end cus-tomers.

Reliability and transparencyIn this business high priority is placedon reliability. Kuehne + Nagel guaran-tees the delivery of the containers to itscustomer’s plants precisely at the sched-uled time. This calls for the meticulousplanning of pre- and post-shipment trans-

port. The customer also attaches greatimportance to transparency and infor-mation, which is guaranteed by KNLogin, Kuehne + Nagel’s track&trace-software. This internet-based informa-tion platform enables the MAN special-ists to access the order documentationand track the progress of their ship-ments at any time and from any place.At the same time KN Login offers MANthe opportunity to effectively optimiseits business processes and its in-housedocument management.

MAN Truck & Bus AG, based in Munich,Germany, is the biggest company in theMAN Group and one of the leadinginternational suppliers of efficient com-mercial vehicles and transport solu-tions. In the 2010 business year, with aworkforce of approximately 31,000, thecompany sold more than 55,000 truckand 5,400 bus chassis of the MAN andNeoplan marques and achieved a turn -over of 7.4 billion euros.

Kuehne + Nagel managesplant supplies for MAN MAN Truck & Bus has extended its cooperation with Kuehne + Nagel. In addition to the existing shipment servicesto Mexico and from Brazil to South Africa, Kuehne + Nagel is now organising the transport of supplies from CentralEurope to the MAN plants in South Africa and Saudi Arabia.


17. . . . . . .

from vendor managed inventory (VMI),just-in-time (JIT) and just-in-sequence(JIS) deliveries to emergency logistics.

New branches added to the networkIn 2011, Kuehne + Nagel opened eightnew offices in India, and more are tofollow in the course of this year. It isplanned that by the end of 2012 thenetwork will comprise roughly 55 loca-tions. Kuehne + Nagel has establisheditself in fast-growing regions in thesouth, west and north of the country.The expansion of the network is in linewith Kuehne + Nagel’s policy of beingrepresented with its own organisationin close proximity to its customers, bethey multinational corporations andmanufacturers or small and medium-sized suppliers. Kuehne + Nagel hasbeen active in India with its own com-pany since 1987.

The hub in Pune is based on the modelof Kuehne + Nagel’s facilities in Bre-men and Shanghai, and represents afurther step in the company’s commit-ment to offering specialised solutionsfor manufacturers and suppliers. Puneis an ideal choice of location, for the

city is developing into the main centreof India’s automotive industry andmany manufacturers and componentsuppliers are based or have productionplants there. With a dedicated team,Kuehne + Nagel offers a highly cus-tomised portfolio of services, ranging

New Automotive SolutionCentre in IndiaThere is a steadily growing need for specialised logistics solutions for the automotive industry in India. To meet thisdemand, Kuehne + Nagel recently opened an AutomotiveSolution Centre in Pune and is expanding its network on thesubcontinent.



Baumgarten trained as a transport andlogistics manager with Kuehne + Nagelfrom August 2008 to July 2011. Thecompetition was open to forwarding andlogistics managers aged up to 30 whohad passed their final examination withthe mark “very good”.

The candidates were set the task of solv-ing a complex logistics problem inwhich, over the course of a year, prefab-ricated elements had to be delivered at

regular intervals to a construction site inSaudi Arabia. The young logistics man-ager, who now works with Kuehne +Nagel in the field of key accounts man-agement, showed an outstanding mas-tery of the problem and impressed thejury in particular with her “sophisticatedjob planning and superb presentation,”DVZ wrote.

As the national winner, Nadine Baum-garten will now represent Germany inthe young talent competition of theworld forwarding organisation FIATA inLos Angeles.

Young talent development a key priority for Kuehne + Nagel “The systematic development of youngtalents is one of the main pillars of ourhuman resources work and an importantfactor for the sustained success ofKuehne + Nagel,” said Lothar Harings,member of the Board of Management ofKuehne + Nagel International AG withresponsibility for global human re -sources. The broad-based developmentof young talent is a part of Kuehne +Nagel's tradition. In this connection aprominent place is assigned to the in-house training of young forwarding andlogistics specialists. So it is not by chancethat the Lower Austria Economic Cham-ber recently awarded the “Trainer Trophy2011“ to Kuehne + Nagel. This distinc-tion is conferred upon companies thathave rendered outstanding services toapprentice training and, by their com-mitted efforts, have opened the way to afuture career for their young trainees.

Nadine Baumgarten, who overcame thecompetition of seven other shortlistedcandidates, was presented with the prizeat the Entrepreneurs' Conference of theGerman Forwarding and Logistics Asso-ciation (DSLV) in Dresden. The presenta-tion of the Young Talent Prize Forward-ing and Logistics is a firm part of everyEntrepreneurs’ Conference.

Kuehne + Nagel is justly proud of thesuccess of its young talent. Nadine

Nadine Baumgarten wins German Logistics Young Talent PrizeThe 23-year-old Kuehne + Nagel employee Nadine Baumgarten has won the "Young Talent Prize Forwarding and Logistics", which is awarded by theGerman Forwarding and Logistics Association (DSLV) and the German logistics journal DVZ.

Worldwide medical equipment manu-facturer, Hill-Rom Holdings, Inc., hasconferred its “Emerging Global Partner-ship Award” upon Kuehne + Nagel. Theaward was presented at the Hill Rom’sAmerican Supplier Day Conference

Major award from Hill-Rom in USA. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

recently held in Indianapolis. Hill-Rompresented the award in recognition ofKuehne + Nagel’s capabilities to sup-port all Hill-Rom facilities, resulting insignificant process optimisation, costsavings, improved controls and service

quality in 2011. In May 2011, Hill-Romchose Kuehne + Nagel to manage theirinternational sea and airfreight busi-ness in the United States, Mexico,France, Sweden, Singapore, Australiaand China.

18 AROUND THE WORLD. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .



19. . . . . . .

AROUND THE WORLD

At the German Logistics Congress in Berlin, Rolls-Royce conferred thetitle of “Supplier of the Year 2010” onits logistics partner Kuehne + Nagel.

The very close cooperation betweenKuehne + Nagel and Rolls-Royce datesfrom 2004. Dedicated Kuehne + Nagelglobal account teams operate in-housewithin Rolls-Royce in the UK, Scandi-

navia, Germany, the U.S. and Singa-pore, managing air, sea, road and con-tract logistics services.

Rolls-Royce acknowledged this valu-able partnership by naming Kuehne +Nagel its “Supplier of the Year 2010”.Presenting the award, Pernille Boisen,Chief Procurement Officer, Rolls-Royce,commented: “The Rolls-Royce-Supplierof the Year awards recognise the contri-bution and continuous commitment ofstrategic partners and suppliers in sup-

Kuehne + Nagel receives prestigiousaward from Rolls-Royce

port of the Rolls-Royce supply chainstrategy and, ultimately, the perform-ance of our product range.”

The 28th German Logistics Congress inBerlin was a fitting venue for the pres-entation ceremony. The award wasproudly received by Karl Gernandt,Chairman of the Board of Directors ofKuehne + Nagel International AG, andTim Scharwath, member of the Boardof Management with responsibility forairfreight logistics and sales.

The awards ceremony took place at the German Logistics Congress in Berlin. From left to right: Karl Gernandt with Mike Orris (Rolls-Royce),

Pernille Boisen (Rolls-Royce) and Tim Scharwath.



20 AROUND THE WORLD. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .


Kuehne + Nagel expands its logistics facility in the Dubai Logistics City Kuehne + Nagel has recently began work on the expansionphase 2 for an additional 14,000 square metres of warehousespace in its facility in the Dubai Logistics City (DLC). TheBrazilian aircraft manufacturer Embraer is setting up a spareparts centre for the Middle East and Africa there.

The ground-breaking ceremony forexpansion phase 2 took place on 14December 2011. “The Middle East con-tinues to open exciting opportunitiesfor Kuehne + Nagel to capitalise on thegrowing demand for integrated logisticsservices in the region,” said Werner Kley-

mann, Regional Manager for the MiddleEast, Central Asia and Turkey region.Rashed Bu Qara’a, Chief Operation Offi-cer of the Dubai Aviation City Corpora-tion, was also pleased to say that in hisview the continuing success and busi-ness expansion of Kuehne + Nagel

strongly manifested the strategic impor-tance of Dubai World Central as a cor-nerstone in the long-term growth of theregional logistics industry.

Werner Kleymann concurred with thisopinion and added that the Middle Eastoccupied an important place in Kuehne +Nagel’s global strategy. “We are presentthroughout the region – particularlyalso in Saudi Arabia, Iraq and Egypt. Inall these countries we offer integratedservices supported by our global IT sys-tems which guarantee full transparen-cy.” Werner Kleymann is convinced thatonly companies that can offer customer-specific, tailor-made solutions willachieve long-term success. “It is precise-


21. . . . . . .

Delighted about the expansion phase 2: (f.l.t.r.) Christopher Smith (Kuehne + Nagel Dubai),

Usama Saleh (Dubai Aviation City Corporation: Manager – Planning and Zoning Control),

Rashed Bu Qara’a (Dubai Aviation City Corporation: Chief Operation Officer), Werner Kley-

mann (Kuehne + Nagel Regional Manager Middle East, Central Asia, Turkey), Mohsen Al

Awadhi (Dubai Aviation City Corporation: Sr. Manager Stakeholder Relationship).

The new partnership was announced at the Dubai Air Show: (f.l.t.r.) Werner Kleymann

(Kuehne + Nagel), Mathieu Duquesnoy (Embraer), Erik Goedhart (Kuehne + Nagel).

ly in this area that there is the greatestdemand, and we, as logistics providers,are fully equipped to meet it.”

Spare parts logistics centre for EmbraerIn Kuehne + Nagel’s logistics facility, theBrazilian aircraft manufacturer Embraeris establishing a spare parts logisticscentre for the Middle East and Africa.The cooperation is, not least, based onKuehne + Nagel’s special expertise inthe aviation logistics segment. Withinthe scope of its “Supply the Sky” pro-gramme, Kuehne + Nagel offers an inte-grated range of logistics services for theaerospace industry. The company devel-ops and delivers customised aerospacesolutions for manufacturers, airlines andservice providers in the field of mainte-nance, repair, overhaul, ground handlingand in-flight services.

Embraer and Kuehne + Nagel an -nounced their business relationship atthe Dubai Air Show. Mathieu Duques-noy, Embraer Vice President CommercialAviation for the Middle East and Africa,said that in order to meet the growingdemand for customer service Embraerwas increasingly establishing local part-nerships – among others, with Egypt-air in Egypt. “Our cooperation withKuehne + Nagel brings an improvementin the services for customers in the Mid-dle East and Africa. By opening this newsupport base to customers, we will bringspare parts inventories close to them,improving our level of service.”

Kuehne + Nagel’s Middle East headquarters in Dubai since 2010Kuehne + Nagel already moved itsregional headquarters for the MiddleEast to Dubai in 2010, confirming itsambitious growth plans in this region.One of the main pillars of this strategyis the logistics centre in Dubai LogisticsCity (DLC), whose infrastructure is anideal basis for the continuous expan-sion of transport and contract logistics

activities. In 2009, Kuehne + Nagel wasthe first international service providerto become fully operational in DLC.

Continuous expansion since 1975Kuehne + Nagel began its activities inthe United Arab Emirates more than 35years ago, when the company wasentrusted with project transport for theconstruction of the DUBAL (Dubai Alu-minium) complex. Since the completionof the project in 1979, Kuehne + Nagelhas maintained a presence in the Emi-rates with its own organisation and incooperation with a local partner. Today

Kuehne + Nagel is one of the leadinglogistics organisations in the UAE,where it employs a staff of around 180and offers its services to customers in awide range of industries. In the MiddleEast as in other regions, Kuehne +Nagel pursues a strategy of continuous,targeted growth. Werner Kleymannremembers that in 2004 the companyleased 52,000 square metres of land inDubai Logistics City. “Phase 1 of thelogistics centre was followed by the relo-cation of the headquarters in 2010, andthe next expansion step is now gettingunder way,” he continued.


22. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

PEOPLE & NEWS

Under the theme “Allergy Barriers toCure” the experts, who included theNobel laureates Andrew Fire and Haraldzur Hausen, made an analysis of currentproblem areas. The participants in theforum were in agreement that in the high-ly complex field of allergy, a still betterinternational network needs to be creat-ed in order to link researchers from differ-ent disciplines. At the same time it was

found that existing knowledge in this seg-ment is insufficiently applied by medicalpractitioners in everyday patient care.Five working groups were formed to dis-cuss and define the most urgent problemsand to seek solutions and recommend anaction plan.

“The Club of Rome set new accents in ourthinking on the environment some

decades ago, and the Global AllergyForum Davos could have a similar impactin the field of allergies,” said JohannesRing, initiator of the conference and amember of the board of directors of CK-CARE. “I firmly believe that the forumsets a milestone because it opens upnew avenues in the treatment of aller-gies,” said Cezmi Akdis, Director of theSwiss Institute for Allergy and AsthmaRe search (SIAF) in Davos. Nobel laure-ate Andrew Fire praised the Global Aller-gy Forum as an “excellent platform forex perts from different disciplines to ex -change experience and learn from eachother.”

The donors Christine and Klaus-MichaelKuehne expressed their satisfaction atthe most recent development: “It is ourhope that by supporting this uniqueresearch and further training network weshall bring about a major advance in thetreatment of allergic diseases and at thesame time communicate a deeper knowl-edge of these widespread disorders to alarge number of general practitioners,paediatricians, parents and patients.”

CK-CARE: International think tank on the theme of allergyCK-CARE (Christine Kuehne-Center for Allergy Research and Education), an institution established by the KuehneFoundation, initiated the first Global Allergy Forum (GAF) in Davos in 2011. At this event, more than 40 experts with a worldwide reputation in the field of allergology and related research disciplines met to discuss urgent problematicaspects and to seek new solutions and possible plans ofaction. The international CK-CARE centre is devoted toresearch and instruction in the field of allergies.

The donors Christine and Klaus-Michael Kuehne with Nobel laureate Andrew Fire.


23. . . . . . .

PEOPLE & NEWS


studies, supply chain simulations and ananalysis of the IOM Iraq operation. Inpreparation, a supply chain assessment, aworkshop and logistics counselling tookplace. This was the fourth event since thebeginning of the project in December2010, and was held by the Kuehne Foun-dation on a joint basis with the humani-tarian organisation in the region.

The Kuehne Foundation and IOM alreadyachieved measurable results in the firstyear of their cooperation. These primarilyincluded significant cost savings with asimultaneous improvement in perform-ance. Furthermore, the core processeswere made considerably more transpar-ent, leading to an appreciable improve-ment in the expertise of the staff. As aresult, IOM was able to deliver aid pack-ages both more quickly and at lower costto those in need of them in Iraq.

The event was organised and conductedby two experts of the H.E.L.P. centre ofthe Kuehne Foundation, who were alsoresponsible for producing the learningmaterial. In line with the overall aim of

the project, the participants receivedinstruction on both the fundamental andmore advanced concepts of supply chainmanagement. The training receivedmethodical support in the form of case

Logistics and supply chain manage-ment training for the humanitarian organisation IOM in IraqSupported by the Kuehne Foundation, the humanitarian organisation International Organisation for Migration (IOM)has improved the logistics expertise of its personnel andstrengthened the position of logistics within the organisation.Within the scope of this project, in October 2011 a five-daytraining course for 35 cadre staff members of the IOM Iraqmission took place in the Jordanian capital, Amman.


www.kuehne-nagel.com


kn_world_1_2012_en.pdf - kuehne · lorem ipsum 1 kühne+nagel world nr. 2/2007 interview with karl...

Documents