kuehne and nagel

18
 Kuehne And  Nagel In  Asia-Pacific By Amrit (05) Pratiksha (22) Sandeep (30) Sneha (33) T andrima (37)

Upload: pushpak-roy

Post on 17-Oct-2015

94 views

Category:

Documents


3 download

DESCRIPTION

Company data on asia pacific region

TRANSCRIPT

Slide 1

Kuehne And Nagel In Asia-Pacific

By Amrit (05)Pratiksha (22)Sandeep (30)Sneha (33)Tandrima (37)

Freight ForwardingAn intermediary between a consignor or consignee of goods & the transport carriers, wharfingers, custom authorities & other parties in customs brokerage, shipbrokeage& export car loading. Also offers logistics management advice & consulting

Global Environmental changes affecting freight forwarding industry in 1990s.

Global integration of world market

Rapid advancements in Information Technologies

Changing demand & supply for product & services

Emergence of new markets All demanded for global flow of goods & transportation network. Changes of expectations from FF due to global environmental changesGreater emphasis on managing supply chains & detailed product flow information to secure & sustain competitive advantage.

Seek transportation & distribution suppliers with worldwide capabilities

Must possess trained & educated professionals with superior IT & information system capabilities.

Logistics advice & consulting Difficulties faced by Freight forwarding Cos. Entrant of new players like integrators (DHL, UPS) 3rd party outsourcing agents, IT service providers, consultants etc played for market share.

Credibility Issue of not meeting the said promises (Delivered little or promised too much).

Distrust made switchover of customers to specialist logistic service providers or express courier firms in case of physical distribution. Trends in freight forwarding industry in the Asia-Pacific region in 1990sHong Kong: Largest and Busiest Container PortEfficient trade and transportation hubSophisticated transportation networksEfficient infrastructure, support systems and legal and finance systems

Physical Goods Distribution MarketHuge population size and geographical areaRelatively undeveloped marketViewed as major growth providersTrends in freight forwarding industry in the Asia-Pacific region in 1990s Contd..Four Categories of countries:Wealthy democracies: low duties, mature customs processes, advanced infrastructures, e,g Japan

Trading Tigers: free custom processes, low duty levels, mature infrastructure, e.g Singapore

Burgeoning Industrialists: complex customs processes, high duty levels, immature infrastructures, eg Korea

Future Powerhouses: informal customs processes, high duty levels, backward infrastructure, eg India

Difficulties faced by freight forwardersDifferences among the competing players and various countries of the region in terms of infrastructure, duties, processes making integration difficult

Declining profits necessitated development of such integrated facilities

SCM integrated logistics critical to development of door-to-door distribution network in Asia-Pacific

So firms generated high volume business that had moderate returns

Traditional FF business margins was less than 2% but this was easier to practice

Nature of competition in the Asia-Pacific regionCompetition across the region had increased due toLocal FF providers-concentrated on lower end of physical goods distribution market as they had very little or no IT and SCM capabilities

Integrators- embarks on door-to -door physical distribution of goods , effectively cutting into traditional FF market

Third-party outsourcing agents-in late 1980s and early 1990s, some industries(FMCG, chemical, automotive, etc.)had outsourced their SCM logistics function giving the opportunities to third party professional.

IT service providers-integrated downstream by purchasing forwarding or distribution business

Consultants-often with IT service providers acquired FF companies

Other FF competitors-enhance core FF deliverables through a one stop-shop concept

5. Over the years Kuehne and Nagel has adapted its supply chain to maintain a strong position in all regions and across all core business activities. Explain.Among the first to introduce modern EuroLogistics, recognised as one of the most important products in the transport market.Recognized the opportunity in United Europe and expanded rapidly into Europe and the Americas creating a worldwide network.Took the first step towards building up the airfreight sector by setting up its own Far East operation.It became the first German forwarder to acquire an Electronic Data Processing (EDP) system.Became a leading forwarder in project forwarding by Increasing shareholdings in the larger forwarding companies in Europe and setting up industrial plants worldwide.Electronic data interchange (EDI) services were continually upgraded and offered electronic links between KN and customer sites

Contd..Expanding core business activities across all spheres of SCM ranging from ocean-freight to project forwarding services.Airfreight, road, rail, and logistics, together with a range of specialist services.Project forwarding activities covering the delivery of shipments to port by rail, road or inland waterway, export packing, port handling, storage and FOB deliveries, in addition to a host of other services.Airfreight services included maintaining a worldwide network, providing high-frequency services to key destinations, combined sea-air services, and the provision of aircraft and ship spare parts and charter services.Logistic centres of competence were developed across four key sectors: consumer electronics and high-tech products; the automotive industry; chemical and industrial goods and consumer durables, and a range of logistics services.KN also supplied some IT solutions to customers in continental Europe and made extensive use of modern information and communications technology, which led to developing SCM capabilities for potential export to other regions serviced by KN. Kuehne and Nagels Asia-Pacific operation was not comprehensive enough to give complete geographical coverage within the region. Do you agree with the statement? Explain.Meager about 1% attributed towards overall business.

Operation was limited to sea and airfreight distribution only(port-to-port capability).

Services from port-to-interior were highly limited.

SCM capabilities were limited by the nature of the physical FF services offered.

Pan-Asia-Pacific provision of SCM logistics services was, on the whole, somewhat superficial.

Unable to provide one-stop-shop SCM logistics services to companies which require a pan-regional solution.

Q.7 The future strategic direction of Kuehne and Nagels Asia-Pacific operation presented several problems and opportunities to Dolder. What do you think were these problems and opportunities?

Problemslimited nature of KNs services beyond ports was inadequate to meet growing demand from MNCs for full FF servicesDemand for SCM services was likely to increase as many MNCs had identified Asia-Pacific as a lucrative future region post-Asian economic crisis reforms & the increasing number of successful indigenous Asia-Pacific MNCs which could have become a Missed Opportunity to KNVast differences between countries in the region made it inherently difficult for KN and other competitors to develop integrated SCM logistics capabilities: Wealthy Democracies of Japan, Australia and New Zealand, the Trading Tigers of Singapore and Hong Kong, the Burgeoning Industrialist nations of Taiwan, Korea, Malaysia, Thailand, Philippines & the Future Powerhouses of China, India and IndonesiaSCM capabilities were critical to the advancement of door-to-door distribution services throughout the Asia-Pacific, as profit margins across the FF industry were in declineCompetition across the region had increased to include local FF providers, integrators, third-party out-sourcing agents, IT service providers, consultants and other FF competitors

Opportunities in Asia-PacificEntry of more & more MNC s & creating demand for logistics services.

Huge size of the Asia-Pacific both in terms of population and geographical distance, long-term upward economic growth potential and the relatively underdeveloped nature of physical goods distribution industries - major growth opportunities for KN. In line with global trends, increased

Customer sophistication and greater emphasis on SCM and IT/IS-related business solutions in the physical goods distribution market

Possible Alternative strategies for KNStrategic Alliance with effective & efficient 3rd party integrators for providing complete SCM logistics services to the clients.

Development of one-stop-shop logistics services by using ocean freight, project forwarding, rail, road & airfreight.

Providing region specific Supply chain solutions.Our recommendation Combination of strategy 2 & strategy 3.

Reasons- For greater control- For maximum utilization of opportunities in Asia Pacific market.