kuehne + nagel contract logistics...

Kuehne + Nagel Contract Logistics

Finland

Kuehne + NagelContract Logistics

• Around 7.5 Mio m 2 warehouse space operated by Kuehne + Nagel worldwide

• + 500 warehouse locations

• More than 35,000 warehousing and distribution employees manage your inventory

14/02/2014Kuehne + Nagel – Contract Logistics

manage your inventory

• Standard worldwide IT platform and visibility

• Kuehne + Nagel Quality Management System KNPS

• We cover every aspect of contract logistics including strategic network design and material flow optimization, supply logistics, postponement / localization, warehousing, value added services, distribution as well as reverse logistics, refurbishment and repair.

Contract LogisticsGlobal Infrastructure and Know-How

500 Locations

60 Countries


500 Locations

7.5 Million m 2 Warehouse Space

35,000 Employees

Kuehne + Nagel Contract LogisticsGlobal Footprint

Western EuropeLocations: ~300Space: 5,000,000 m2

North AmericaLocations: ~70Space: 1,300,000 m2

Middle East & Africa Latin America


Middle East & AfricaLocations: ~10Space: 100,000 m2

Asia PacificLocations: ~60Space: 400,000 m2

Latin AmericaLocations: ~10Space: 100,000 m2

Eastern EuropeLocations: ~50Space: 600,000 m2

Contract Logistics Primary Focus and Objectives

To be recognized by our customers as the quality leader in

global logistics and supply chain management

“Best -In-Class” People


Information-driven

supply chainmanagement

Complete Services And Capabilities

The Global Network

IndustrySpecialization

ConsistentGlobal

Operations

GlobalIT

Standards

“Best -In-Class” People

Contract Logistics Complete Services & Capabilities - Selection

OutboundLogistics

In-houseLogistics

InboundLogistics

� Warehousing� Vendor managed inventory� Kitting� Packaging� Light assembly

� Supplier management� Order management� Vendor managed inventory� Transportation� Customs clearance

� Shared and dedicated warehousing� X-docking� Kitting, re-packing / labeling� Postponement� Value added services


After Sales Logistics

� Production logistics� Other value added services� Customer service management� Transportation management� Visibility services

� Visibility services� Shared and dedicated warehousing� X-docking� Re-packing / labeling� Customer service management� Visibility services

� Transport management / Pooling� Freight audit and payment� Customer service management� Transportation� JIT / JIS delivery� POD services� Visibility services

� Order management� Call Center� Warehouse / depot management� Delivery / pickup management

� Repair / refurbishment� Disposal� Collection and sorting� Repair vendor management

� Warranty management� Visibility services� Event management� Customer service management

Technical control

CCTV Systems• Record moving material• Follow up / Spot checks

Access control• Flexim System

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• Flexim System• Possibility to customize access for each staff member

Alarm System• Alarm System linked to Security Company 24/7/365• Regular checks by Security Company • Alarm Systems secured with separate power supply

Kuehne + Nagel – Contract Logistics

• Security training• Security working instructions (QSHE Manual)• Corrective and preventive actions (TIP System + CAPA)

Security processes

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• Corrective and preventive actions (TIP System + CAPA)• Rescue Plan • BCP• Security agreement with Subcontractors (Carrier Manual)• Access control (QSHE Manual)


KN Group has following certificate (on top of ISO 9001 and 14001):

Security Management ( TAPA Certificate )-Technology Asset Protection Association

Security Management (C-TPAT Certificate )- Customs Trade Partnership Against Terrorism

QSHE Management (SQAS Attestation )- Safety and Quality Assessment System; chemicals

QSHE Management (GXP - Food )-Kansainvälisten ruokastandardien vaatimusten varmistaminen

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-Kansainvälisten ruokastandardien vaatimusten varmistaminen

QSHE Management (GXP - Pharma / Health-care)-Management system of WHO standard and other requirements

QSHE Management (EN 9100:2003 Certificate)-Inbound, Stock management, kitting, order preparation, internal and external distribution for aviation industry

More information: http://www.kn-portal.com/about_us/corporate_social_responsibility/


Contract Logistics ITStandard Application

KN CL IT Strategy is based on core execution product:

Ciel FW/FD

Product features:� Global reach� State-of-the-art functionality plus a range of support tools


� State-of-the-art functionality plus a range of support tools� Extensive team of Corporate, Regional & Local IT Specialists� Formal Change Management process - Worldwide� Formal Release Program plus sub-releases per project� Global 24/7 Technical Support� Regular Superuser Updates & Training� Full EDI Integration with Client & Supplier systems� Global, multi-site Reporting� Real-time inventory & shipment Visibility

Centrally hosted, dedicated servers

24/7 Service

High Availability (>99%)

~2700 Message Formats mappedAll Industry Message Standards supported:

� EDIFACT, iDOC, ANSI X12 …� Flat-File� Client own formats� KN XML Schemas

Corporate & Regional Development Teams

Processing

Transformation

Contract Logistics ITIntegration Via KN IBroker


867 Trading Partners

~16m Messages per month

Web Based eTrack

Dashboard View

Alert Messaging

Information

IntegrationConsultancy

Development

Project Management

CommunicationSupports all message transfer

protocols and methods

Mutiple Transfer methods: Industry Standard protocols:3rd Party VANs X25Point-to-Point AS/2Internet FTP/SFTPemail

KN Login InventoryBase functionality

�Complete inventory end-to-end visibility by � Site/Multi-Site� Lot Number� Article� …

�Detailed information on stock levels within WHS

multi sitelot

numbersstock level& details

transactionhistory

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�Support of Trading Groups�Transaction details of WHS operations

�Full transparency of multi-site / multi-client netw orks�Real-time information updates of inventory figures and

statuses�Proactive alerting & event monitoring

KN Login InventoryBenefits

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�Proactive alerting & event monitoring�Highly configurable

� Customized views � Flexible search criteria� Configurable user profiles

�Support of Trading Groups�Web Order Entry capabilities

The Kuehne + Nagel Production System KNPS


The Kuehne + Nagel Production SystemObjectives, Pillars and Principles

KNPS Operations Principles

• Continuous Improvement

• Early Information

• Process & Cost Control

Per

form

ance

Kuehne + NagelProduction System

Cost Efficiency

ConsistentGlobal Operations

BestService Quality


• Workload Planning &

Balancing

• Zero Failure

• Discipline & Continuity

• Go & See

• Multi-skilled People

KNPS Operations Principles

Pro

activ

eP

erfo

rman

ce

Per

fect

ion

Pas

sion

ate

Peo

ple

The Anchor Principles

14/02/2014Page 15

Customer Transition and Integration Cycle

%

CTI EngagementVolume


To ensure a smooth transition and integration of our customers’ business through a proven methodology, using experienced project specialists, standardized tools and systematic knowledge transfer to manage, control and report implementations globally.

CTI Mission

Tender

Phase

Implementation

Phase

Ramp-up

Phase

Operation

Phase

14/02/2014Page 16Kuehne + Nagel – Contract Logistics

Corporate

Regional

Tools• Risk Analysis

• Project Definition Document

• Change Management

• Decision Log (Registration)

• Issue Log

• Weekly Project Status ReportTraining

Feedback

Customer Transition And IntegrationWorldwide Best Practice


Regional

National

• Weekly Project Status Report

• Project Plan

• Data Validation

• Logistics Concept

• SOPs

• Operational Training

• Testing

• Hand-over Document

• Lessons Learned

• Etc.

Training

Feedback


Customer Transition and Integration - Experience

- + 200 larger implementation projects per year

- + 50 CTI project managers

- + National and Local CTI trained project resources

- Globally rolled-out in current form since 2007

- Regional and global central project reporting &


- Regional and global central project reporting &

controlling

"We are very happy to have chosen K&N as partners. They

were very professional and flexible, in particular during

the critical transition phase of the warehouse move."

- BMW, Vancouver warehouse move. -


Final Slide

Thank you for your attention

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