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world LOREM IPSUM

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Integrated service solutions for demanding customer industries

Hotel Logistics Fairs & Exhibitions Logistics Emergency & Relief Logistics

Kühne + Nagel World Nr. 2/2007

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CONTENTS

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Contents

Focus Industry Solutions 4

Hotel Logistics

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Fairs & Exhibitions Logistics

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Emergency & Relief Logistics

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Inside New logistics hub for the Hamburg region

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Man of figures with a good heart

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Markets & Products Liquid logistics for the UK and the Norwegian market

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]

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Louis Vuitton: a distribution centre with a showcase character

Editor Robert Cathomas

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Round the World Strategic partnership with Hilti

Design and layout Kaufmann Kommunikationsdesign

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A high-voltage lead logistics solution

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People & News Kühne Logistics University Hamburg

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Top-ranking trainees

Print Wilhelm Zertani Druckerei und Verlag D-28001 Bremen Frequency Twice a year Languages English and German Print run 33,000

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EDITORIAL

Dear Readers,

The contrasts between the “logistics scenes” which we present to you in this new issue of our customer magazine could hardly be greater. What do luxury hotels and emergency accommodation, industrial fairs and concert halls have in common? All of them would quite simply be unable to function without professional and efficient transport and supply services. All kinds of major events are tied to tight time schedules, openings of hotels or casinos demand a range of additional services that extends far beyond the strict limits of logistics, and in the transport of relief goods high operational readiness, experience and flexibility often help to save human lives. Service packages tailored to the specific needs of different customer groups, such as Kuehne + Nagel has successfully offered for many years, have the crucial advantage that the logistician is not only a master of his own craft but also has a detailed knowledge of the relevant industry and its peculiarities. This makes it easy for us to understand the needs of the customers from whom we receive inquiries and offer them tailor-made integrated solutions on the basis of our wide range of services and our global network. The fields of hotel logistics, emergency & relief logistics and fairs & exhibitions logistics, upon which we focus in the following pages, are examples of such successful industry solutions. We have a double cause to be proud of our offering in hotel logistics. On the one hand because the decision to develop this attractive business segment is the result of an innovative study project by our own young managerial talents. And on the other hand because we have risen to the place of world market leader in this field. But it is a matter of no less concern for us to place our broad logistics experience and global capabilities at the service of those who undoubtedly need it most – the still far too numerous victims of hunger, war and natural disasters throughout the world. I wish you an interesting read.

Your Reinhard Lange CEO Kuehne + Nagel International AG

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.................................... KUEHNE + NAGEL HOTEL LOGISTICS • Logistics management in hotel and casino new construction and renovation projects • Transport, logistics and installation solutions for furniture, fittings and equipment (FF&E) • Supply Chain Management, warehousing and distribution of consumables for guest rooms (OS&E) • Roughly 250 specialists deployed worldwide • Regional competence centres in Las Vegas (for North and South America and the Caribbean), Macao (Asia-Pacific), Koblenz (West, Central and Eastern Europe) and London (Northern Europe and Africa)

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Five-star logistics offers a special kind of “room service” For the international luxury hotel and gaming industry, Kuehne + Nagel plans and implements turnkey transport, logistics and installation solutions for large-scale construction projects and efficient, comprehensive maintenance and supply concepts

It is now eight years since Kuehne + Nagel began offering tailor-made service packages for international hotel and casino operators, and the company is now considered a market leader in this special sector. The opening-up of this attractive business segment is also a major success story for the systematic staff development scheme which the Group operates for its talented young managers. In 2002 the graduating class of Kuehne + Nagel’s High Potential Training Programme was given the assignment of making a detailed market study of the

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supply chain activities of large hotel chains, in particular with regard to new construction projects. After three months of intensive research around the globe with simultaneous training in international project management, the young managers presented a product idea that conformed to the specific needs of this sector and was based on a concrete business plan. They presented a concept that convinced the critical “jury” of the Kuehne + Nagel Management Board – and the Hotel Logistics department was born. Only six months later, in the United Arab Emirates, the first new contract was obtained and successfully executed.

Kuehne + Nagel’s hotel logistics services are now well established in the market and the company enjoys first-class customer relations with the world’s leading operators of five-star hotels and casinos and with hotel suppliers and makers of luxury consumables. Coordinated by the four competence centres in Koblenz, Las Vegas, London and Macao, roughly 250 specialists from 16 countries are now working on many challenging projects for customers all over the world. Since it entered the market, Kuehne + Nagel has already successfully executed more than a hundred contracts and delivered and installed several thousand guest rooms in 19 countries. Kuehne + Nagel is the clear market leader in the special field of complete solutions for the installation of furniture, fixtures and equipment (abbreviated as FF&E). This can mean everything from laying carpets and assembling furniture to the installation and commissioning of telephone and multimedia systems in the individual hotel rooms. The logistics provider is also experiencing a growing demand for operating supply and equipment (OS&E) concepts. This includes the warehousing and the delivery, as and when required, of con-

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sumables for guest rooms, wellness facilities and other public areas of large hotels and casinos. In the expansion of its activities Kuehne + Nagel’s policy is primarily one of organic growth. However if attractive opportunities arise it also makes selective acquisitions that complement its existing activities. In 2009, for instance, Kuehne + Nagel took over the Las Vegas-based special service provider Quality Transportation Services Inc. This company, established as a freight agency in 1987, provides special services for the hospitality and gaming industry in North America. Its service portfolio embraces overland transport, warehousing and onsite installation; deliveries are made from two logistics centres in the immediate vicinity of the Las Vegas Strip. The acquisition has already allowed the exploitation of attractive synergies in the companies’ product and customer portfolios, and for Kuehne + Nagel it has closed a last-mile delivery gap in the North American and overseas markets. www.kuehne-nagel.com/hotels

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By express freight charter to the Kempinski in Doha The German provider of top-class hospitality recently opened its first hotel in the Emirate of Qatar, the 62-storey Kempinski Residences and Suites Doha. Kuehne + Nagel Hotel Logistics specialists were called upon at very short notice to organise the urgent transport and customs clearance of every conceivable OS&E article (such as pillows, towels, glasses, kitchen equipment etc.). To accomplish this “mission impossible” despite the customer’s ambitious time schedule, Kuehne + Nagel consolidated all goods delivered by the European suppliers at its logistics centre in Koblenz. There the articles were checked for the correct quantity and quality, relabelled, pre-sorted in accordance with their intended use in the hotel, and repacked. Kuehne + Nagel saved further time by chartering a freight aircraft at short notice and speedily making out the customs documents so that the goods could be imported with a minimum of complications. For safety’s sake a project manager accompanied them in the plane to Qatar. Thanks to the excellent preparations by the colleagues in Doha, the MD-11 was unloaded in what was probably a record time of only six hours after its landing at 2 a.m., and the two hundred pallets cleared by customs in the space of only a day. To save further time and the costs of interim storage, the freight was delivered directly into the underground car park of the new Kempinski. There, the pallets were handed over to Kuehne + Nagel staff who had been specially flown in from the competence centre in London. The customer was particu-

larly impressed by the subsequent HotBox Service, in which Kuehne + Nagel manually groups together and portions out the products for each guest room. This involved the filling and labelling of more than 1,000 boxes from which it was an easy matter for the hotel staff to quickly stock the 370 luxury suites, restaurants and other public rooms. Ms. Emel Atikkan, manager of the Kempinski Resort, was extremely impressed by the efficiency of the service: “Kuehne + Nagel have done an outstanding job, clearing our consignments through customs, delivering the items to the Residences, preparing the HotBoxes for the suites and leaving the store in the basement in an orderly manner! They have bent over backwards to assist us in every way possible.” www.kempinski.com

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2,500 guest rooms delivered and installed in 21 weeks At the beginning of the year Kuehne + Nagel tackled a particularly challenging hotel logistics project. Under an exclusive contract, the warehousing, delivery and installation of furniture and fixtures for what is currently one of the world’s largest hotel projects was completed in record time

The Marina Bay Sands® Integrated Resort is an architecturally spectacular complex of buildings on a peninsula adjoining Singapore. This “most expensive standalone integrated resort property ever built” is being developed by the Las Vegas Sands Corporation, the global leader in the operation of casinos and hotel installations. The building complex consists of three 55-storey hotel towers with more than 2,500 guest rooms. The three towers are bridged by a unique 340 metre-long continuous roof terrace, the SandsSkyPark ®. The facility also includes a museum, shops and restaurants, and a 120,000 sqm congress centre with capacity for 45,000 delegates, as well as two theatres and a casino.

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Apart from the substantial cargo volume, a special challenge was presented by the narrow time window prescribed by the planners of this ambitious project for the on-time delivery and installation of the complete furnishings. Kuehne + Nagel brought together some of its best hotel logistics experts from its teams in America, Europe and Asia to take over the warehousing and critical last-mile delivery for this historic hotel opening project. Between January and May the project team worked round the clock on a threeshift basis on six days per week. Working their way up from the ground floor, they were able to complete 17 rooms and suites per day on average and hand them over to the operators. An important role was played by Kuehne + Nagel’s tailormade IT solution, which resulted in better planning accuracy and reduced administrative effort. The winning of the contract for this large project is a special testimony to the confidence placed in Kuehne + Nagel by a world market leader in the hotel and casino industry; its punctual and successful execution demonstrates the capabilities of the logistics provider in material flow management for the opening of hotels and in the provision of turnkey customerspecific solutions. www.marinabaysands.com

..................................... MARINA BAY SANDS ® IN FIGURES • Investment volume of more than 5 billion dollars • Construction team of 10,000 workers, the largest ever deployed in Singapore • Average completion rate: 1 hotel storey every 4 days • 12,400 sqm roof terrace 200 metres above the ground • World’s longest terrace swimming pool with capacity of 1.4 million litres • 8,000 sqm ballroom, the largest in Southeast Asia

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Extreme logistics at 3,300 metres above sea level No construction project is quite like another, a fact that was recently demonstrated in Peru, another country where Kuehne + Nagel is experiencing a growing demand for hotel logistics services. There, Starwood Hotels & Resorts, one of the world’s largest hospitality groups with a global workforce of 145,000 and the operator of some 940 hotels (including such well-known names as Westin, Sheraton or St. Regis) recently opened two new facilities as part of its Starwood Luxury Collection. On behalf of the hotel owners, and in close cooperation with a supplier company, Kuehne + Nagel’s competence centre in Las Vegas implemented two individual plans for the transport and turnkey installation of the hotel furnishings. After the global consolidation of the deliveries from all suppliers, the goods and furniture components from various origins were transported to Peru by air and sea. There, Kuehne + Nagel completed the customs formalities and stored the freight in halls that had been specially rented to house the goods prior to their delivery by road to the two new hotel facilities. The luxury resort in Paracas is a villa and bungalow development on a 20-hectare site on the Pacific coast, a two-hour drive from Lima. As the area was affected by the most recent earthquake, transport posed a special challenge. The second destination, the Tambo del Inca Hotel, is close to the ruined city of Machu Picchu in Urubamba at the heart of the Sacred

Valley of the Incas, and could be reached by truck from the warehouse in Lima only by a three-day drive on roads which are always dangerous but particularly so in the rainy season. To ensure the smooth completion of the two projects, Kuehne + Nagel sent two hotel logistics specialists from Las Vegas to Peru for a period of 18 weeks. They coordinated the delivery of the goods to the construction sites, where they supervised the work of installing the furnishings and fittings which was carried out by locally re cruited teams of joiners and furniture packers. The unpredictable weather and the extreme altitude were only two of the many challenges. The customer was highly impressed by the punctual handover of all fully furnished and equipped rooms in both hotels. Chief Financial Officer Francisco Perez-Egaña said: “We are extremely happy with our choice in nominating Kuehne + Nagel as our logistics provider. Their ability to manage the entire supply chain and offer a true turnkey solution allowed us to open our properties efficiently and within budget.” The customer has now entrusted Kuehne + Nagel with another project: In connection with the construction of the new Westin Hotel in Lima, the logistics provider will supply and install the furnishings and fittings for 300 rooms and suites in Peru’s tallest building in time for its opening in October 2010. www.starwoodhotels.com/luxury

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Making the fair an event and the event a success Kuehne + Nagel has been active in the international trade fair and events logistics business for more than forty years. Today, the Group has a strong presence at the booming exhibition centres of China as well as at the leading trade fairs of Central Europe or the USA

Although the special department Fairs & Exhibitions Logistics is administratively a part of the business unit Road & Rail Logistics, it naturally also handles many sea- and airfreight shipments. With its specialised know-how in the trade fair and event business, together with Kuehne + Nagel’s broad range of services, it is able to offer the customer an attractive overall package. The comprehensive service offering rests on three pillars. First, Kuehne + Nagel operates as an accredited forwarder at a number of international trade fair locations – in Germany, for instance, at Cologne, Munich, Hanover, Nuremberg and Düsseldorf. A second service package is tailored for the all-round support of exhibitors over the whole transport

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chain from the customer to the exhibition site and back, including customs clearance in the case of fairs held in another country. The German Federal Ministry of Economic Affairs and Technology, for instance, has for many years trusted in the services of Kuehne + Nagel for German official participations at some 40 fairs and exhibitions annually all over the world. The third pillar is events logistics for orchestra tours, guest performances of opera companies, musical tours and product presentations in the form of roadshows or stationary events such as presentations of new car models for the press and dealers. Kuehne + Nagel offers the trade fair companies and organisers, with their exhibitions which are progressively growing into independent brands, high-quali-

ty transport logistics whose smooth operation is a crucial factor for success. This includes the early involvement of the logistics provider in the planning process to clarify the detailed requirements relating to transport and customs clearance, the rapid handling of goods on the trade fair site using modern organising technologies and adequate personnel, the rapid removal of packing material and its delivery back to the booth after the exhibition, and the punctual clearing of the halls to make way for the next exhibition.

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The exhibitors themselves are already contacted by the Kuehne + Nagel specialists in their home countries and informed in detail about the specific transport requirements and customs regulations. Through its own insurance broker Nacora, Kuehne + Nagel offers the customer comprehensive exhibition insurance which covers intermediate storage during the transport operation and the period when the goods are present at the exhibition site itself. In the case of complex trade fair appearances such as national participations or large individual stands, the project managers of Kuehne + Nagel travel to the exhibition sites and are at the customers’ disposal round the clock to assist in coordination and provide other support. The same contact person, who knows the needs of the customer in every detail, is thus available throughout the duration of the exhibition. In events logistics, finally, it is particularly important to closely study the customer’s list of requirements, to check time schedules and their feasibility, to inspect event venues in advance, and to respond flexibly to changes in the transport plan. Musical instruments of orchestras, for instance, which may be extremely valuable, must be transported at controlled temperatures, maintaining a con-

tinuous chain of between 18 and 20 degrees Celsius. Stage properties and costumes of opera houses often have to be packed and shipped immediately after the performance, and in some cases flown to the place of the next guest performance with special permits and in fully chartered aircraft. However different the detailed requirements of an industrial fair or trade exhibition, a large project presentation or a musical tour, the logistics challenges are generally highly complex and precise compliance with the planned time schedules is vital. The late arrival of a stand element, a damaged product model or missing musical instruments could quickly endanger the success of a major event and seriously damage the image of the customer – and, of course, the logistics provider. In this field of business it is therefore particularly important for the staff to be at the service of the customer at all times, and a plan B must always be prepared and ready at hand in case of emergencies. Kuehne + Nagel’s specialists for trade fair and events logistics have already demonstrated their extensive experience in countless projects and thus contributed to the excellent reputation the company also enjoys in this special field.

............................................................................ FAIRS & EXHIBITIONS LOGISTICS • Roughly 120 specialists deployed worldwide • Local teams of exhibition specialists in Bahrain, China, Czech Republic, Germany, Israel, Italy, Japan, Mexico, Spain, Sweden, Switzerland, Taiwan, Turkey, UK, United Arab Emirates, USA • Between 20,000 and 30,000 individual orders per year depending on the trade fair calendar • Highlights 2009: Bavarian State Opera (guest performance in Beijing), Bolshoi Theatre (tour of USA), Lucerne Festival Orchestra (tour of China), Deutsche Oper Berlin (tour of Japan), Prague Symphony Orchestra (tour of Japan), “Body Worlds” exhibition (North America, Haifa, Singapore), Marlboro Events (Germany), BMW-World (official forwarder), John Deere dealers presentation (Teneriffe) etc. • Highlights 2010: Bauma Munich (official forwarder), World Expo 2010 Shanghai (recommended logistics provider), Packexpo Chicago (official forwarder and customs agent), BMW stand at the Geneva Automobile Salon etc.

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On the road for Media Markt in Austria Media Markt has been present in the Austrian market for two decades. To mark this jubilee, between May and October Europe’s biggest electronics market chain is sending a completely furnished “Mediahouse”, equipped with every conceivable electrical appliance, on a tour of the whole country. The prefabricated house is being erected each week at one of the 23 Media Markt locations, and will be raffled to a lucky Media Markt customer after the end of the tour. The tour is organised and man-

aged by the agency WWP WeiratherWenzel & Partner. Kuehne + Nagel is transporting the building, which consists of eight modules, on four flatbed semi-trailers. These are accompanied by a semi-trailer for the accessory parts, a truck loading crane and a 50-tonne truck-mounted crane. The building must be erected and dismantled within a very narrow time window to ensure that the Mediahouse is ready on time for its four-day opening to the public at the next Media Markt.

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Criss-crossing Europe with the Bosch-Rexroth Sales Truck Bosch-Rexroth is an international leader in the development and production of drive and control systems for a broad range of industrial applications, and employs more than 35,000 people all over the world. Between February and November 2010 the company is sending its new Sales Truck on a promotion tour of Germany, the UK, Ireland, Italy, Swe-

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den, Switzerland and Austria. The purpose of the Control City on Tour is to give a live presentation of the latest control technology for industrial automation. Kuehne + Nagel is providing the tractor unit in a publicityeffective get-up, as well as the drivers for the tour plan. The drivers must get the truck ready for the show at each new location, a task which includes not only the connection of the power supply, extending the canopy and access steps and checking the hy draulic and air conditioning systems, but also the start-up of the presented product models and tools. The drivers, who are on standby for the duration of the presentation, are also responsible for keeping the trucks impeccably clean.

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“On tour” with Philip Morris International Philip Morris International has been a customer of Kuehne + Nagel for many years, and since 2008 it has also used the company’s services in the field of event logistics. In support of the Marlboro Vibes concert tour, various logistics services are provided at roughly a hundred events every year. The customer has also entrusted Kuehne + Nagel with transport operations for roughly 15 open-air shows per year, including such well-known events as the pyrotechnic spectacle Rhine in Flames or the large-scale concerts MeltFestival and Ruhr in Love. The whole of the Philip Morris stand material, including electronic equipment and printing and engraving machines, is stored and maintained by Kuehne + Nagel.

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Logistics tour de force for the world’s biggest trade fair Among other trade fairs Kuehne + Nagel is the official forwarder for Bauma, which was first held more than 50 years ago and opened its doors for the 29th time in Munich in April. This triennial international trade fair for construction machinery, building material machines, construction vehicles and equipment is the world’s biggest in terms of area. This year, on a gigantic surface of 550,000 sqm, 3,150 exhibitors presented themselves to more than 415,000 trade visitors and interested members of the general public from almost all countries in the world. In 2002 Bauma established an offshoot fair in China, which has now established itself as the leading trade fair for construction machinery in Asia and will next take place in Shanghai in November 2010.

At the Munich fair Kuehne + Nagel is responsible, among other things, for the physical handling and customs processing of the exhibits and provides the equipment needed for unloading and loading. In the critical periods immediately before and after the fair, 65 forklifts and 30 truck-mounted cranes with a lifting capacity of up to 400 tonnes were in operation, as well as countless telelifters and platform hoists. A particularly challenging task is to collect the empty packing material from the exhibitors, to store it during the fair and to return it as quickly as possible after the close of the event – at this year’s fair the volume of empty packaging amounted to no less than 10,000 cubic metres.

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Expecting the unforeseeable every day When relief goods are urgently needed in disaster areas, fast, professional logistics can save human lives. This field of transport, where things rarely go according to the book, demands a great deal of experience and flexibility. Kuehne + Nagel has organised the supply of relief goods to people in need all over the world for twenty years

The Group works on the basis of longterm contracts for several United Nation agencies. In addition, it is engaged in business with selected major humanitarian organisations including the International Red Cross and the Red Crescent, as well as a number of non-governmental organisations and suppliers for the humanitarian sector. Each year Kuehne + Nagel handles several thousand individual orders, which are coordinated by its own competence centre for relief logistics in Copenhagen and executed

through its global network. As in other sectors, in the relief logistics field Kuehne + Nagel offers a wide range of solutions extending from international transport by land, water and air to intermediate storage and country-specific distribution concepts. The Internetbased information system KN Login enables the shipments to be tracked and monitored by all staff members and partners, in addition to which tailormade reporting solutions are at the disposal of certain large customers.

It is mistaken to believe that relief logistics consists only of urgent disaster missions in which emergency teams are flown to remote parts of the world to coordinate and supervise the distribution of emergency supplies loaded on chartered freight aircraft (see article on page 14). More than nine tenths of the transports effected by Kuehne + Nagel in this business segment are regular services, mainly for the replenishment of strategic stocks for the long-term aid programmes of the United Nations. The remaining, mainly unforeseeable operations demand the utmost speed of response and are a true test of the logistics experts’ talent for improvisation built upon many years of experience. For these emergency cases the appropriate organisation and personnel resources must be ready and the necessary transport capacity immediately available round the clock on 365 days per year. To maintain this infrastructure and keep it in a permanent state of readiness is a cost-intensive task. Additional costs result from the employment of subcontractors such as airlines, local forwarders or – depending on the area of operation – escorts for the transports. Although relief logistics is not a big

..................................... KUEHNE + NAGEL EMERGENCY & RELIEF LOGISTICS • A staff of 120 specialists, coordinated by the competence centre in Copenhagen • Roughly 15,000 orders per year • Operations in 2009 in countries including Afghanistan, Angola, Burundi, Cameroon, the Central African Republic, Chad, China, the Democratic Republic of Congo, Eritrea, Ethiopia, Iraq, Kenya, Malawi, Mozambique, Myanmar, Nigeria, Rwanda, Somalia, Sudan, Tanzania, Zimbabwe

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money earner, Kuehne + Nagel feels an obligation to place its extensive knowhow and efficient network at the service of humanitarian organisations. They are dependent on smoothly operating supply chains and the experience of the logistics professionals. The roles are clearly defined and assigned: The humanitarian organisations as customers provide the relief goods and Kuehne + Nagel organises their efficient, reliable transport to any part of the world – to drought regions of Africa just as to flooded areas in Asia or to

war-ravaged countries such as Iraq and Afghanistan. Humanitarian aid and business do not conflict, but in an ideal case complement each other in such as to bring aid with a maximum of speed and efficiency to those who need it. The longer aid organisations and logistics providers work successfully together, the more know-how they acquire from each other for the benefit of future operations. Kuehne + Nagel employs approximately 120 people in its Emergency & Relief

Logistics business segment. These are experienced logistics specialists who have completed a full training in forwarding as well as being very flexible and highly mobile. Most of them have worked for ten years in this special field and organise efficient disaster management based on their sound knowledge of logistics and their good international connections. On this basis, Kuehne + Nagel has earned a very good reputation and built up a strong position in the market for relief logistics. www.kuehne-nagel.com/emergency

and above all durable means of protection against malaria – particularly if they release an active substance which is deadly for mosquitoes but harmless to humans. Such a product has been developed by the chemical company BASF, which supplies impregnated mosquito nets to many international aid organisations and the health ministries of more than 50 countries. The special feature of this innovative product is that the BASF researchers have incorporated the insecticide into a polymer used to treat the nets in such a way that it migrates to the surface at a steady rate over a number of years and remains effective even after many washes.

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................................................................................................................... Mosquito nets are an effective, low-priced

In the battle against malaria In mid-2009, on behalf of Unicef, Kuehne + Nagel organised the transport of 5.5 million mosquito nets to the Democratic Republic of Congo. The task was a complex one, not only because of the large volume of freight but also because the nets had to be transported from four staging areas by different routes and modes of transport to more than a hundred distribution centres in this vast country. 2 million nets were transported in eight barges via the Congo river, and Kuehne + Nagel sent a further 900,000 in 34 truckloads across the whole of Tanzania to the port of Kigoma, where they were likewise transhipped onto river barges. The remaining 2.6 million nets were transported by road from Mombasa in Kenya to three different areas in Eastern Congo. However, the most difficult route was the one through Uganda to Kisangani, where a transport infrastructure is virtually non-existent. In operations of this size, efficiently functioning communications between all parties are crucial. In cooperation with the competence centre in Copenhagen, the Kuehne + Nagel national companies in Tanzania, Kenya and Uganda efficient-

ly handled the project within the predefined timeline to the complete satisfaction of Unicef.

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Humanitarian logistics – more than emergency aid The past 30 years have seen a sixfold increase in the annual number of natural disasters such as earthquakes, droughts, floods, landslides, volcanic eruptions and storms. Experts forecast that, driven by climate change, this trend will continue in future. However, major challenges to humanitarian logistics are presented not only by emergency aid to disaster areas but also by the supply of goods to people in areas of chronic famine By Prof. Dr.-Ing. Dr. h.c. Helmut Baumgarten*

figures, roughly three million children die each year as a result of malnutrition. Nearly a third of the world population has only inadequate access, or none at all, to vital medicines. The chronic shortage of food, drinking water and medical aid in many parts of the world is accompanied by a trend that is leading to hardship for a growing number of people in developing and emerging countries: Whereas major disasters attract the attention of the media and stimulate a high readiness to donate, it is increasingly difficult to raise funds for regions that are in permanent need. Furthermore, readiness to donate has fallen by roughly a third since the beginning of the global economic crisis. Another problem is that medical and food supplies too often pass their expiry dates or disappear on their way to those in need – either as a result of inappropriate treatment during transport and storage, corruption, a lack of proper information or quite simply an inadequate infrastructure.

Percentage of malnourished persons in the national population (2007) and some of the 850 natural disasters recorded in 2009. Sources: UNO World Food Programme, Munich Reinsurance, Geo Risk Research, NatCatService

The starting points of efficient disaster logistics are the stocks of supplies which aid organisations position in strategic locations all over the world in order to allow a more rapid response to emergencies. UN organisations and non-governmental organisations are supported by emergency teams or specialised departments of logistics providers with expert knowledge for the transport of medical supplies, water treatment plants, food, clothing and temporary housing. Despite the progress that this cooperation has made over the past years, the problem of duplicated or incorrect deliveries and delayed intervention in disaster areas still exists. Scientific analyses indicate that fast and efficient disaster

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aid can be achieved only by improved coordination and a concentration of activities and capacities. However, the shortage of food, medical supplies and water is for the most part not a result of sudden catastrophic events but a consequence of permanent structural problems in the famine regions of the world. Since 1995 the number of people affected by hunger has risen to more than a billion or 15 percent of the world population. This alarming fact is documented by the World Hunger Index 2009, which lists 20 African countries among the 30 with the highest levels of hunger. The figures also show that emergency and development aid needs to be specially focused on countries to the south of the Sahara. According to Unicef

Logistic elements such as transport planning, refrigerating chains, the security of goods and supply chains or information management are key factors for successful development cooperation. Humanitarian logistics can and must therefore utilise the experience of the commercial sector, but at the same time follow unconventional paths in order to adapt to special conditions and provide the best possible supply level with the available capacity. In this connection, human resources are a key factor in the successful development of transport and logistics systems.

* The author is the founder of the Department of Logistics at the Technical University of Berlin, and is responsible for the research project “Humanitarian Logistics”, which is sponsored by the Kuehne Foundation.

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Particularly in developing countries, however, logistics specialists with the necessary know-how are in short supply. This means that it in those places it is rarely possible to maintain a smooth local flow of goods and information. The training of logistics specialists in developing countries is therefore one of the main challenges that face humanitarian logistics, and can make a decisive contribution to the reduction of transport and distribution problems.

............................................................................ A FOCUS OF RESEARCH SUPPORTED BY THE KUEHNE FOUNDATION As part of its committed support for training, further education and research and development in the field of logistics and transport, the Kuehne Foundation also addresses the theme of Humanitarian Logistics. The Foundation is sponsoring a research project of the same name at the Technical University of Berlin, and, as co-publisher with the Haupt-Verlag of the scientific series “Logistik”, has already financed a number of publications on this subject such as Logistik im Kontext internationaler Katastrophenhilfe by Philippe Tufinkgi or Humanitarian Logistics by Alexander Blecken. The Kuehne Foundation also sponsored and organised the plenary session “Humanitarian Logistics – Future Needs and Potential Solutions” at this year’s International Disaster and Risk Conference IDRC, which took place for the third time at the end of May in Davos. The Foundation plans to selectively expand its support for research and practical studies in this important field.

In addition to problems of disaster logistics, a research team sponsored by the Kuehne Foundation at the Technical University of Berlin is now examining suitable logistics concepts for the countries of the East African rift valley. In this project, the researchers are not only

............................................................................ seeking new ways to use the great lakes and existing but poorly maintained railways and roads, but are also involving African training and further education institutions in the joint development of

suitable logistics concepts. KN World Magazine will report in one of its coming issues on the experience and results of these field studies in Tanzania and Malawi.

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Rapid response after the Haiti earthquake Kuehne + Nagel was at the forefront of the international relief operations that got under way immediately after the earthquake disaster which hit Haiti in January. Under a long-term agreement with the European Commission the company guarantees, among other things, that in emergencies a freight aircraft can take off for the disaster area within not more than 24 hours after being requested. On the basis of this standby service Kuehne + Nagel made a lightning response to the Haiti earthquake. Immediately after the first shock, a chartered Boeing 747 with 100 tonnes of freight from the Swedish aid organisation MSB and the Norwegian Church left Stockholm-Arlanda airport for the Dominican Republic. From there, the goods – four-wheel drive vehicles including 200 litres of diesel fuel, water purification plants, tents,

clothes and many other items – continued their journey by road to Port-auPrince. To coordinate the loading of the air freighter and to make out all the necessary papers, Kuehne + Nagel sent specialists at short notice from the competence centre in Copenhagen to Stockholm while two of their colleagues flew directly to Santo Domingo to prepare for the receipt of the relief goods and their prompt on-carriage by land. Since this first mission Kuehne + Nagel has transported substantial quantities of relief goods to Haiti by sea and air. In view of the fact that Haiti will remain dependent on international aid for a long time to come, the company will maintain its local representation at least for the rest of the year. In addition, in May Kuehne + Nagel supported one of the many aid missions for the devastated country by providing transport services free of charge in cooperation with the American logistics company UPS. With the aim of supplying roughly 10,000 Haitian farmers with urgently needed seed (for cereals, cabbage, carrots, aubergines, melons,

onions, tomatoes and spinach) before the end of the planting season, the agrochemical and biotechnology corporation Monsanto donated seed with a value of more than 1 million US dollars. To ensure that this extremely welcome reconstruction aid reached its needy recipients as quickly and efficiently as possible, the two logistics providers joined forces, with UPS handling airfreight deliveries and Kuehne + Nagel taking responsibility for sea and road transport. The seed was then sold at greatly reduced prices through farmers’ shops all over the country; the proceeds of the sales will be at the disposal of the farmers’ associations for the purchase of further essentials.

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State-of-the-art new logistics hub for the Hamburg region The big new logistics terminal in Obergeorgswerder to the southeast of Hamburg, which Kuehne + Nagel opened in November, underlines the importance the company attaches to this location as an element in its growth strategy for European land transport. The multifunctional facility is equipped with the latest technology and has a storage and handling area totalling 44,000 sqm and nearly 9,000 sqm of office space. The results after the first few months of operation are highly satisfactory

The building complex, comprising five warehouses and two office buildings on a twelve-hectare site directly by the Hamburg-Süd motorway intersection, took roughly one year to complete. With 166 light signal-controlled loading gates and generously dimensioned vehicle docking areas together with state-ofthe-art video surveillance of the whole site, the terminal is designed in every respect for the fast and secure handling of goods. The total investment volume for this path-breaking facility amounted to roughly 80 million Swiss francs.

Special importance was attached to the sustainable, environment-friendly design and utilisation of the terminal. The “green logistics” concept is reflected in the planting of the 24,000 sqm green area with roughly 12,000 trees and shrubs, the lighting and heating systems and the use of regenerative energies. Kuehne + Nagel has also demonstrated its environmental awareness by the construction of a photovoltaic installation which is one of the largest in Hamburg with an area of nearly two thousand sqm.

With the expansion of its infrastructure in the Hamburg region, Kuehne + Nagel is responding to the demand for cost-effective, integrated logistics solutions. In Obergeorgswerder the company has consolidated its contract logistics and road transport activities, the handling of seafreight imports and exports and sales administration under a single roof, as well as adding a further 25,000 sqm of space to its contract logistics facilities in Hamburg. 475 Kuehne +Nagel employees are now working in Obergeorgswerder, 20 of them in newly created jobs.

The design of the handling and logistics halls is in line with the latest safety and productivity standards. A special feature is the underfloor chain conveyor forklifting trucks in the cross-docking hall, which substantially increases the efficiency of logistics and productive activities in road transport. Major synergies between the overland transport and contract logistics businesses result from the enlarged storage areas and the joint management of human resources and the hall and equipment capacities.

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The first few months of operation show that the consolidation of airfreight, road transport and contract logistics activities under a single roof has already brought a substantial improvement in internal cooperation and the quality of service. The new logistics centre enables Kuehne + Nagel to provide the whole range of services with even greater efficiency on a one-stop basis. As a targeted marketing measure, customer events are held in Obergeorgswerder at regular intervals to enable shippers to see the potentials and capabilities of the facility’s installation for themselves. On these occasions Kuehne + Nagel has been able to further

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strengthen its good relations with existing customers as well as establishing many new business connections in virtually every field. Furthermore, in accordance with the strategic objectives increased cross-selling has opened up further business potentials, particularly between road transport and contract logistics. The new facility also enables Kuehne + Nagel itself to provide forwarding services that it formerly had to subcontract to other companies for reasons of space or costs. This particularly applies to the unloading of consolidated containers carrying imports destined for the hinterland. These shipments can now be distributed more quickly and at lower cost via the company’s own land transport network. Kuehne + Nagel’s land transport and contract logistics business units are better able to participate in their export customers’ many special

sales promotion and distribution operations. A further service offered at this location is the stuffing of export containers, for which an attractive new contract has been concluded with a major customer from the automotive supply sector. In February, Kuehne + Nagel began the start-up of a newly created distribution solution for Central and Eastern Europe for another large customer in the contract logistics sector. As a result of further new customers wins and the expansion of existing business, the utilisation of the storage and handling capacity in Obergeorgswerder has reached a very satisfactory level. In overland transport too, the number of shipments has shown a clear increase since the startup of the facility and a good level of capacity utilisation has been attained. If one also takes into account the gratifying level of business in the seafreight

import and export departments, it is clear that the facility in Obergeorgswerder has on the whole developed very well in the first six months of operation and that it will provide valuable support for Kuehne + Nagel’s moves towards growth.

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Man of figures with a good heart As Chief Financial Officer, Gerard van Kesteren has been responsible for the finances of the Kuehne + Nagel Group for more than ten years. This year he received a number of honours for his outstanding achievements. In his private life he is deeply committed to improving the future chances of children in developing countries and he has established his own foundation to this end

This year, the 60-year-old Dutchman with a lively sense of humour, who has been a member of the Management Board of Kuehne + Nagel since 1999, has received three awards for his work. In January the CFO Forum Switzerland voted van Kesteren the best Chief Financial Officer in the category of companies listed in the SPI share index. This association of some 300 financial heads and persons closely linked with the Swiss financial sector named him

“CFO of the Year”. Among the reasons for choosing van Kesteren, it cited his profound professional knowledge and the contribution he had made to the success of his company in a difficult environment. The laudation also praised van Kesteren for his open communication which has gained him high esteem among financial journalists. This was also attested in April by the professional journal Institutional In vestor, which awarded Kuehne + Nagel

the top place in its international ranking within the transport industry in the categories of both “Best CFO” and “Best Investor Relations”. This choice was the result of a ballot among more than thousand analysts from 146 financial institutions. Sustainable development on a sound fi nancial basis, however, is the guiding principle to which Gerard van Kesteren is committed not only in his professional work. In his private social engage-

Gerard van Kesteren visiting Africa, where his foundation supports a children care project in Malawi

Gerard van Kesteren visiting Malawi

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ment, to which he devotes a large part of his limited free time, his aim is also to achieve a long-term effect. In accordance with his conviction that “In order to make the world a better place, one must begin with the children – for they are the future”, in 2007 he established the van Kesteren Foundation with the aim of supporting projects in aid of children in poor countries. The foundation is currently involved in three projects. In the African state of Malawi it supports the work of Jacqueline Kouwenhoven, a Dutch citizen who operates a hospital based on western, traditional and homeopathic medicine in the north of the country together with a school in addition to providing microloans for local small businesses. In Central America support is given to the initiative of Patricia Scarpatetti, a Swiss who runs a home for 35 street children in Honduras and attends to their education. Finally, in China Gerard van Kesteren – together with his professional colleagues Peter Gähwiler and Peter Messerli, the regional financial heads of Kuehne + Nagel in Asia-Pacific and Southwest Europe respectively – finan ces a primary school as part of the Hope Project. Before his retirement, the donor plans to have identified six projects which will receive annual support totalling around 250,000 Swiss francs. In October 2010 van Kes teren will visit a Dutch aid project in the Brazilian city of Rio de Janeiro in order to evaluate its potential as his possible fourth commitment. “For me it is a heartfelt concern to offer these children real prospects for the future,” says the congenial finance head. “And I consider it a great privilege to be able to support such important initiatives.”

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“The Kuehne + Nagel Group has coped well in 2009… … and was early to take appropriate measures to strengthen its global market position and competitiveness,” said the Chairman of the Board of Directors Klaus-Michael Kuehne in his appraisal of the past business year at the company’s Annual General Meeting, which was held in May in Schindellegi and was well attended as always. The Group in creased its market share in all business units and achieved a solid overall result. There were clear majorities for all proposals of the Board of Directors. In addition to the re-election of the existing members, Dr. Joerg Wolle, was elected as a new member of the Board of Directors of Kuehne + Nagel International AG. Dr. Wolle is CEO and Delegate of the Board of Directors of DKSH, the leading market expansion services group with a focus on Asia. “With his

Dr. Joerg Wolle: new member of the Board of Directors

profound know-ledge of the Asian growth markets, which are also of great importance for our Group, Dr. Wolle will provide us with valuable suggestions and impulses for our own business model,” said Klaus-Michael Kuehne.

Front row (f.t.l.): Bernd Wrede (Vice Chairman), Klaus-Michael Kuehne (Chairman), Karl Gernandt (Executive Vice Chairman). Back row: Hans Lerch, Dr. Wolfgang Peiner, Dr. Georg Obermeier, Dr. Thomas Staehelin, Dr. Joachim Hausser, Juergen Fitschen

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Global supply logistics for drilling rigs Parker Drilling, a leader in high-performance contract drilling for oil and gas and a provider of project management solutions for the global energy industry, has entered into an agreement with Kuehne + Nagel to manage comprehensive logistics requirements for its international rig fleet

Kuehne + Nagel’s oil and gas expertise helps energy organisations to manage their logistics strategies and operations across functional areas including order management, transport, physical distribution and supply chain security. Specific capabilities include key account management with a dedicated customer service department, comprehensive services relating to the installation and

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operation of maritime offshore installations, a specialised task force for the transport of complete drilling and production rigs, and training and controlling programmes to ensure the highest compliance standards. Parker Drilling, an American company, is a provider of premium drilling services for the international energy industry

and at present has 28 drilling rigs deployed on land and a further 15 offshore. Founded in 1934, Parker has set numerous “world records” for deep and extended-reach drilling and is an industry leader in safety performance. Under the agreement, Kuehne + Nagel’s services cover freight forwarding, export packing and most international transport-related processes. Kuehne + Nagel offers multi-modal (sea, air, road and rail) transport services as well as an express courier service for emergency logistics needs. Additionally, Kuehne + Nagel supports Parker Drilling’s project engineering and construction business. The signing of the contract was preceded by a twelve-month implementation phase during which Kuehne + Nagel worked closely with Parker Drilling to ensure that implementation at each of its locations was managed to the complete satisfaction of the customer and with no interruption of the supply chain.

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Liquid logistics for the UK… Founded in 1883, Concha Y Toro SA is Latin America’s leading producer of premium branded wine and one of the ten largest firms in the industry. It owns nearly 9,000 hectares of prime vineyards located all over Chile and Argentina and exports its wines, which include such well-known names as Don Melchor, Almaviva and Casillero del Diablo, to more than 130 countries. Concha Y Toro attaches great importance to sustainable, environmentfriendly processes in both production and distribution. Kuehne + Nagel has managed imports of wine to the UK from Chile and Argentina by seafreight on behalf of Concha Y Toro for ten years. In February the two compa-

nies signed a three-year contract logistics agreement under the terms of which Concha Y Toro will now transfer all its UK domestic warehousing and distribution to KN Drinks Logistics, Kuehne + Nagel’s wholly-owned subsidiary in the UK. KN

Drinks Logistics’ Hams Hall facility will offer storage for approximately one million cases of wine which will be delivered annually to both on- and off-trade customers via the KN Drinks Logistics distribution network.

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… and the Norwegian market In March Kuehne + Nagel signed a three-year service agreement with the Norwegian Vectura AS. This is the leading logistics company for wine, spirits and other alcoholic beverages in Norway with a market share of nearly 50 per cent. Under this agreement, Kuehne + Nagel will manage Vectura’s warehousing and distribution activities at its Trondheim site. In this facility, with an area of 8,000 square metres and capacity for 3,700 active stock-keeping

units, currently eleven million units are handled per annum. Kuehne + Nagel also selects and manages the transport carriers used to undertake all deliveries from the Trondheim warehouse. Under the terms of the agreement, Kuehne + Nagel is able to benefit from additional warehouse and office capacity at Trondheim not currently utilised by the Vectura operation. This idle space will be used to expand Kuehne +

Nagel’s network in Norway, offering warehousing, sea-, air- and road transport as well as contract logistics services to new and existing customers. After the closure of Vectura’s operations in Trondheim, which is scheduled for 2013, Kuehne + Nagel plans to take over the whole facility.

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Emergency logistics prevents production stops extends from the smallest screws to complete sub-assemblies must be shipped to the production plants by various routes in order to ensure an unbroken flow of supplies to the car manufacturers at all times.

Hella KGaA Hueck & Co., headquartered in Lippstadt, Westphalia, Germany, employs over 23,000 people at more than 70 production plants all over the world. As a globally operating supplier to the automobile industry, the company needs a highly developed, comprehensive logistics plan. Frequent just-intime deliveries of a range of parts which

For that reason Hella has relied for many years on the dependable air- and seafreight transport services of Kuehne + Nagel. The logistics provider offers Hella a range of tailor-made models with different transit times and service levels on its various transport routes, the most important of which are from Germany to China, the USA and Mexico and between China and the USA. If time is short, Kuehne + Nagel organises onboard courier shipments for urgently needed components, which are checkedin with an airline as passenger baggage

and securely brought to their destination with the shortest possible transit times. The global economic crisis, which has resulted in sometimes sudden shortages of goods and allocation difficulties, calls for even faster reaction times in the logistics chain. Hella relies on Kuehne + Nagel’s team of experts, which can be reached day and night, and its globally standardised IT systems. As a result of the high personal commitment and motivation of all concerned – both at Kuehne + Nagel and Hella – all emergency transports since the start of the crisis have without exception been carried out to the complete satisfaction of the customer and the automobile makers it serves. www.hella.com

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Iveco’s preferred logistics partner Iveco, the world’s largest manufacturer of commercial, industrial and specialapplication vehicles and buses, has renewed its service contract with Kuehne + Nagel for a further three years. After nine years of successful cooperation, Kuehne + Nagel is now Iveco’s preferred logistics partner with responsibility for delivering the whole Europen aftermarket. The sophisticated logistics solution offered by Kuehne + Nagel includes the management of the five regional distribution centres in

Turin, Madrid, Trappes (France), Langenau (Germany) and Winsford (UK). The individual depots have space for up to 160,000 stock-keeping units, and the total storage area under Kuehne + Nagel’s management is 300,000 sqm. Another important element of this integrated logistics offering is the entire distribution of stock via overnight shipments by Kuehne + Nagel’s Europe-wide automotive distribution network, covering regions such as Ireland, Scandi-

navia, Benelux and Portugal. Under the contract, Kuehne + Nagel will introduce a number of innovations such as RFID and pick-by-voice technologies. Restructuring measures will also be implemented in order to create an even more efficient and responsive supply chain for Iveco’s spare parts division on the basis of the continuous improvement culture of both companies. The annual flow of nine million order lines, ranging from small components to entire engine blocks, generates a total of well over 60,000 tonnes of outgoing cargo. www.iveco.com

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Expansion of automotive logistics in Japan, Germany and South Africa As a result of the continuous expansion of its logistics services for BMW, Kuehne + Nagel is now acting for the German car maker in a dozen locations in China, Germany, Japan, Korea and South Africa

The last issue of KN World Magazine reported on the spare parts distribution centre operated by Kuehne + Nagel for the BMW dealer network in the Stuttgart region. Since the beginning of 2010 the logistics company has also been the partner for this customer at its production site in Leipzig – in one of the world’s most modern automobile factories – where it has assumed responsibility for the entire supply chain for the final assembly of BMW automotive products. At the site, which comprises 44,000 sqm of warehousing and handling space, Kuehne + Nagel manages a range of logistics operations that includes receiving, storage, sequencing, set-building and production line delivery. In addition, Kuehne + Nagel is responsible for the supply and return of empty containers and for the execution of pre-assembly operations, and cooperates with the automobile manufacturer in various supply concepts, such as Kanban and supermarket models. After a three-month

implementation phase during which a dedicated team of automotive logistics experts from Kuehne + Nagel supported BMW in process planning, value creation flow analyses and improvement initiatives in close collaboration with the customer, operations got off to a smooth start on January 1, 2010. Kuehne + Nagel has worked for BMW at its distribution centre in Midrand in South Africa since the end of 2008. Following a rigorous tender process, Kuehne + Nagel was awarded a threeyear contract to manage the entire national parts distribution centre, from which spare parts and accessories are distributed to the whole of South Africa as well as five neighbouring countries. The 16,500 sqm facility is owned by BMW and holds around 50,000 stockkeeping units. As in its other locations, in Midrand Kuehne + Nagel provides a wide range of contract logistics services which are

tailored to the specific needs of this automotive customer, with whom it cooperates closely in order to jointly bring about a continuous improvement in the complex supply chain processes and enhance cost efficiency. Also at the end of last year, Kuehne + Nagel was entrusted by BMW with the management of the car maker’s distribution centre for the whole of the Japanese market. The facility in Tokyo has a storage area of more than 18,000 sqm on three levels, and capacity for more than 50,000 stock-keeping units. The logistics services provided for the customer at this location include receiving, inventory control, picking & packing and the handling of dangerous goods, together with value-added services such as key coding and key cutting. The facility is also equipped with the latest technologies such as pick-by-voice systems or the Kuehne + Nagel production system.

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A distribution centre with a showcase character Louis Vuitton is one of the main brands of the LVMH Group, the world market leader in the luxury goods industry. In March the company awarded Kuehne + Nagel a contract for the management of its regional distribution centre in Osaka, Japan. Based on the systems and processes customised in this facility, Kuehne + Nagel will later be responsible for setting up warehouse operations for all of Louis Vuitton’s outsourced distribution centres worldwide

To implement this challenging plan, Kuehne + Nagel has leased a dedicated logistics facility conveniently located between the seaports of Kobe and Osaka. To permit maximum flexibility and efficiency, Kuehne + Nagel provides a comprehensive warehouse solution, covering layout design and material flow planning as well as the installation of ultramodern

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security measures and advanced information systems fully integrated with Louis Vuitton’s worldwide operations. Particular emphasis has been placed on the fulfilment of the latest environmental standards; the facility is among the first in Asia-Pacific that are accredited with an ISO 14001 certification.

At the premises with a handling and storage capacity of 6,000 sqm, Kuehne + Nagel’s services cover the inbound receipt of goods by sea and air, label scanning, quality and quantity checks, pick & pack operations, sales-ready preparation as well as reverse logistics for the entire range of Louis Vuitton leather goods and accessories. In addition, Kuehne + Nagel will provide valueadded services, such as pre-wrapping and care label tagging. The sophisticated nature of Louis Vuitton’s supply chain requires a logistics provider to be capable of maintaining a reliable balance between efficiency, flexibility and quality. Kuehne + Nagel’s tailor-made solution meets these requirements in every respect. To ensure conformity with the customer’s stringent security and operational standards, the company has a competence team of around 20 experts in Amagasaki to provide Louis Vuitton with round-the-clock support.

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Chile: exclusive distribution solution for Roche… Under a comprehensive contract, at the beginning of this year the Swiss company appointed Kuehne + Nagel as its exclusive logistics partner to manage its national distribution centre in Macul near the Chilean capital Santiago and distribute its products throughout this South American country. Roche is a leading research-based company in the fields of health care, pharmaceuticals and diagnostics, and employs roughly 80,000 people all over the world. As the world’s biggest biotech undertaking, it helps to improve human health and quality of life with innovative products and services for the

early recognition, diagnosis and treatment of diseases. Under the agreement, Kuehne + Nagel’s responsibility embraces warehousing and distribution services for medicinal end products and raw materials, as well as for the customer’s promotional samples. The services also cover the handling of sensitive cargo such as temperature-controlled biotechnological products and psychotropic medicines. Kuehne + Nagel supports Roche in the optimisation of the distribution processes in Chile and is responsible for deliveries to hospitals, clinics and pharmacies throughout the country.

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… and inbound supply chain management for Ripley web-based visibility and reporting, including IT interfaces to a number of third-party service providers. The company utilises its own award-winning KN Login application, which enhances efficiencies by the use of a single platform and enables standardisation of the retailer’s logistics operations worldwide.

Kuehne + Nagel expects the successful implementation of this project to stimulate further new business from the retail sector and the company will continue to invest in order to become the reference logistics partner in Chile for this important industry.

Founded in 1956, Ripley Corp is one of the biggest retail companies in Chile and Peru in terms of sales revenue and has 51 stores in which it sells clothing, accessories and home products. Since May Kuehne + Nagel has handled global order management for this company. The contract includes freight management and value-added consolidation services from the export regions Europe, Middle East, the Americas and Asia-Pacific. Kuehne + Nagel’s tailor-made solution integrates Ripley’s suppliers across its international supply chain and provides

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Contract logistics for Fujifilm in Poland As the logistics partner of the Japanese manufacturer of high-tech goods, Kuehne + Nagel is consolidating the inventories of Fujifilm’s three warehouses in Poland, the Czech Republic and Slovakia in its logistics centre in Chorzow Fujifilm operates in the core areas of imaging (digital cameras, print service, minilabs, photographic paper and films), information (graphic and medical systems and material for flat screens) and document management (copiers, office communication and digital printing), and employs more than 70,000 people in nearly 300 subsidiaries and affiliates all over the world. In February 2010, Fujifilm chose Kuehne + Nagel as its contract logistics partner in Poland. Among the reasons it named for its decision were “their strong presence in Eastern Europe, their cost-effective operations and their IT strength”. Under the new agreement, the customer’s three warehouses in different locations are being consolidated in Kuehne + Nagel’s mod-

ern 10,000 sqm facility in Chorzow, which is fully equipped for additional logistics services such as pick & pack and repackaging. In addition to classic services like goods receipt, inventory management and customs brokerage, Kuehne + Nagel also performs value-added services such as assembly and labelling on behalf of Fujifilm. A special focus is placed on high-value goods and hazardous substances, for which a dedicated cold room area has been built. To ensure fast and dependable communication with the customer’s IT systems, Kuehne + Nagel has created special interfaces to its global warehouse management system. www.fujifilm.com

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Temperature-controlled logistics for Eastern Europe

age and distribution. In order to provide complete tracing of constant temperature, Kuehne + Nagel offers a dedicated control and reporting system.

Boehringer Ingelheim Pharma Ltd., one of the world’s leading and most innovative pharmaceutical companies, has chosen Kuehne + Nagel for the management of its temperaturecontrolled transport in five East European countries

This important new cooperation endorses Kuehne + Nagel’s strategy of expanding its investments in specialised products and its growth efforts in market segments such as pharma & healthcare and high-tech/high-value. www.boehringer-ingelheim.com

In recent years Kuehne + Nagel has specifically invested in its systems, facilities and employees in order to guarantee high service and quality standards for the transport of temperature-sensitive products. In the spring of this year, as proof of the success of these efforts, the logistics company was chosen by its customer Boehringer Ingelheim as partner for its transport of goods to the Czech Republic, Poland, Hungary, Greece and Croatia. With 138 affiliates, the Boehringer Ingelheim Group employs more than 40,000 people all over the world. With investments in research and development amounting to nearly a fifth of its turnover, it is one of the most active

pharmaceutical companies in this field. As one of the leaders in its sector, to support its continued efforts to expand in Eastern Europe Boehringer Ingelheim needed an experienced logistics provider with know-how in the pharmaceutical industry as well as in the local markets. The services Kuehne + Nagel is providing for Boehringer Ingelheim include temperature-controlled road transport of thermolabile medical products to the Czech Republic, Poland, Hungary, Greece and Croatia. Kuehne + Nagel’s cool-chain transport solution, which is adapted to the sensitive products’ specific nature, meets all relevant industry-related regulations and the customer’s high quality requirements regarding handling, stor-

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A full-sized “model railway” In 2008 the government of Gran Canaria decided to build a modern railway which will connect the capital, Las Palmas, with the south of the island when its first construction phase is completed in 2015 and will later provide a link with the north. In connection with a number of promotion events for the local population, last autumn Kuehne + Nagel transported to the Canary island a 30 metre-long model of the Siemens S103 AVE train consisting of a locomotive and a carriage unit. The Span-

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ish project transport team of Kuehne + Nagel, which was responsible for this by no means simple task, chose to ship the train from Seville, Spain’s largest inland port. The trickiest part was its transport by road on special low-loaders from the depot to the port. Thanks to the professional handling and efficient cooperation between all concerned, the model train was punctually installed in the San Telmo Park in Las Palmas, where it met with the keen interest of many local people and tourists.

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Paints and varnishes for the Iberian peninsula In February the Spanish subsidiary of AkzoNobel Decorative Coatings, the world’s biggest maker of paints and varnishes and an important manufacturer of special chemicals, signed a five-year contract with Kuehne + Nagel. Under the terms of the contract, the logistics provider is responsible for the management and warehousing activities of the AkzoNobel distribution centre in Zaragoza. At this modern facility, which has a storage area of 16,000 sqm and complies with the latest hazardous material regulations, a dedicated team of 45 Kuehne + Nagel specialists is consolidating all logistics activities that formerly were managed at different locations in the peninsula. Kuehne + Nagel owes the award of this contract to the good track record of the warehousing logistics activities it has been managing for AkzoNobel in Austria.

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Valeo Service selects Kuehne + Nagel as preferred partner for European inbound road transport Since last autumn Kuehne + Nagel has been responsible for the management and execution of a complex, tailor-made road transport concept for the shipment of components from the European suppliers to the national distribution platforms of this leading automotive supplier Valeo Service, a company specialised in the automotive aftermarket, is a subsidiary of the Valeo Group, whose activities are concentrated on the design, production and sale of components, integrated systems and modules for cars and trucks. Valeo ranks among the world’s top automotive suppliers. The group has 121 production plants and 61 R&D centres, and employs more than 50,000 people in 27 countries worldwide. The sophisticated road transport concept realised by Kuehne + Nagel for this customer substantially increases the efficiency of deliveries to Valeo’s national distribution platforms in France, the UK, Italy,

the Netherlands, Poland, Russia, Spain and Turkey. It involves the implementation of 43 “milk runs” for the collection of components from the suppliers and their multi-stop consolidation before they are punctually delivered to Valeo Service’s distribution platforms as required.

as a whole. An e-booking web application allows all suppliers to directly enter their transport orders into the system. Thanks to the tailor-made, robust and at the same time highly flexible solution, despite a high level of variance in daily shipment flows, Valeo Service now benefits from a regular service with enhanced consolidation capacity, increased collection frequency at each supplier site as well as a guarantee of on-time delivery. www.valeoservice.com

The dense transport network, which covers more than a hundred suppliers from ten countries and 283 point-to-point relations, is managed from Kuehne + Nagel’s control centre in Orléans, France. With the Logistar Transport IT-System developed by Kuehne + Nagel, the logistics provider continuously improves the efficiency of the individual milk runs and the network

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Strategic partnership with Hilti The Liechtenstein-based Hilti Group, one of the world’s leading manufacturers of tools and fastening systems, has entered into a strategic partnership with Kuehne + Nagel for the planning, implementation and management of its future logistics locations in Europe

Hilti is a global market leader in the development, production and distribution of high-quality products and machines for such fields as drilling and demolition, direct fastening, anchoring, fire protection and installation and measuring systems. The company employs 20,000 people in 120 countries and supplies its leading-edge products to the construction industry all over the world.

The cooperation between the Liechtenstein-based group and Kuehne + Nagel started in December 2007 with the construction of the new Hilti logistics centre in Nuremberg. This project, which was planned and implemented and is managed by the logistics specialists of Stute Verkehrs-GmbH, a wholly-owned subsidiary of the Kuehne + Nagel Group, laid the foundations for the realignment of Hilti’s logistics processes in Europe.

The state-of-the-art distribution centre in Nuremberg serves as a yardstick for new Hilti locations in Europe and has convinced the customer to choose Kuehne + Nagel as its competent strategic partner for further logistics projects. A dedicated competence team will support Hilti in upcoming and ongoing projects for the further optimisation and standardisation of logistics processes. This cooperation with a single partner brings a number of advantages for the customer: It enables Hilti to concentrate on its core competences while benefiting from Kuehne + Nagel’s extensive knowhow, as well as allowing the customer to reduce its coordination and management efforts as Kuehne + Nagel offers one-stop-shopping when it comes to integrated logistics solutions. Hilti sees further advantages in standardised controlling and reporting and a clear visualisation of the supply chains. This enables it to continuously monitor all locations and processes including the respective key performance indicators. The permanent benchmarking of all locations, be they own-controlled or externally managed, ensures full transparency in all external locations. www.hilti.com

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Automotive: inbound logistics for Magna in Russia… It is now more than sixteen years since Kuehne + Nagel began working in various countries for Magna International, the world’s biggest automotive supplier. Its subsidiary Magna Exteriors & Interiors, a leading supplier of exterior vehicle appearance systems, has now entrusted Kuehne + Nagel with the entire inbound logistics for its production site in Kaluga as well as parts of its outbound transports.

Kuehne + Nagel coordinates and transports shipments from all European suppliers to a consolidation centre in Chemnitz, Germany, from where the goods are delivered to the Magna production site in Kaluga. In addition to warehouse management and parts consolidation in line with the production process, Kuehne + Nagel’s services also include export handling as well as daily overland transport from Chemnitz to Kaluga. www.magna.com

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… and distribution for Continental Tyres in Thailand This spring, Kuehne + Nagel also proved the attractiveness of its integrated logistics services specifically tailored for the automotive industry in Southeast Asia, where it concluded a new service contract with Continental Tyres (Thailand) Co. Ltd. Under the agreement, Kuehne + Nagel will support Continental Tyres (Thailand) Co. Ltd. with a range of warehousing and distribution logistics services for its original equipment and aftermarket dealer business in Thailand. Continental was particularly impressed by Kuehne + Nagel’s flexibility and its application of the latest IT systems in its industry-specific service offering. The comprehensive service package includes receiving and unloading import containers, checking of manufacturing date, storage, in- & out-handling, picking & packing, inventory management and nation-wide distribution to Continental Tyres’ dealers and end users throughout the country. The operations are being implemented at Theparak, where Kuehne + Nagel has a modern logistics centre. www.conti-online.com

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A high-voltage lead logistics solution Since last December, in four locations in India Kuehne + Nagel has provided comprehensive lead logistics services for KEC International Limited, one of the world leaders in the project business for the construction of power transmission lines

KEC International is a part of the RPG Group, one of India’s largest industrial conglomerates with about 60,000 employees in more than 20 companies spanning a range of business sectors. An important

factor for the choice of Kuehne + Nagel as the company’s Lead Logistics Provider (LLP) was its good track record in offering lead logistics solutions for Saregama India Ltd., the entertainment unit of RPG Group.

In order to support KEC International Limited in focusing on its core competence in the design, manufacture, supply and construction of turnkey projects for power transmission lines and in the execution of railway electrification projects, under a three-year contract Kuehne + Nagel is providing a comprehensive range of services. These include order management, inbound and outbound transport planning and execution, lead logistics service provider procurement, freight bill audit services, network analysis, freight management and documentation. The specialists in Kuehne + Nagel’s lead logistics competence centre in Delhi ensure efficient implementation of the comprehensive solution tailored to the individual business requirements of the customer. For the logistics provider, whose award-winning web-based monitoring and reporting system KN Login also forms a part of the package, its cooperation with KEC International is further proof of its capabilities in the management of complex supply and delivery chains in widely differing industrial sectors. www.kecrpg.com

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John Deere centralises spare parts distribution in China In May John Deere, one of the world’s leading manufacturers of farm equipment, awarded Kuehne + Nagel a contract for the management of its national service parts distribution centre in China

In addition to agricultural equipment, John Deere’s product range embraces construction and forestry machinery, communal technology and machines for lawn, estate and golf course care. The company employs some 50,000 people in more than 100 production plants and distribution organisations all over the world, and sells its products in more than 160 countries.

In the past, in China John Deere’s three factories located in Tianjin, Jiamusi and Ningbo, producing different types of machines, offered after-sales services to the dealers separately. With the objectives of better serving its dealers and optimising service parts management in China, John Deere has centralised all after-sales services in a national distribution centre in Tianjin.

In the dedicated 5,500-sqm facility, Kuehne + Nagel is responsible for the management of around 10,000 stockkeeping units and 170,000 units of John Deere’s products. Kuehne + Nagel’s comprehensive services include inbound transportation from the three factories to the distribution centre, inventory management, domestic distribution to the manufacturer’s dealers in China as well as a series of value-added services such as inbound receiving, quality control, labelling, pick & pack operations and order processing. The customer was impressed by Kuehne + Nagel’s experience in the Chinese logistics market and the company’s high customer orientation and flexibility. In view of the efficient organisation of the distribution centre, John Deere plans to use it in future as a distribution centre for other countries in the Asia-Pacific region. www.deere.com

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“Anchors aweigh!” for the Kühne Logistics University in Hamburg In the winter semester 2010/11 the Kühne Logistics University (KLU) – Wissenschaftliche Hochschule für Logistik und Unternehmensführung – will begin its teaching activities in the Hamburg HafenCity with the Master of Science programme “Global Logistics”. As from 2014, roughly 450 students will receive top-level training and further education at this private university which has excellent links with international partner institutions

Seven years ago, the public-interest Kuehne Foundation established the Hamburg School of Logistics, which was later renamed “Kuehne School”, at the Technical University Hamburg-Harburg (TUHH). In connection with the establishment of the new institution in March 2010 the Foundation has now decided to detach the school from its association with

TUHH and to operate it as an independent private university. Founding President of the KLU is Dr. Wolfgang Peiner, a trained freight forwarder and accountant who for many years was Finance Senator of the Free and Hanseatic City of Hamburg and is a member of the Board of Directors of

Donor Klaus-Michael Kuehne and KLU President Dr. Wolfgang Peiner

Kuehne + Nagel International AG. The Kuehne Foundation is currently examining potential locations for a dedicated building for the University in the HafenCity of Hamburg. The next five years will see the KLU develop two international non-consecutive Master’s programmes, a Bachelor’s programme and a continuing education programme. The profile of the KLU will be completed with a PhD fellowship programme as well as international and interdisciplinary research. The central theme of the KLU is Business Management with a particular focus on “Logistics” in its economic, technological and international aspects. It will thus serve as an exemplary educational institution for qualified management and leadership in complex circumstances. “In addition to excellent specialised know-how, executives today need a firstrate knowledge of management,” said the Foundation’s sole donor KlausMichael Kuehne. “By the establishment of the KLU, the Kuehne Foundation wants to increase the attractiveness of global logistics as an academic subject and as a field of research, and also to help strengthen the standing of the academic stronghold of Hamburg against international competition.”

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Picture: Fotofrizz; Source: HafenCity Hamburg GmbH

KLU President Dr. Wolfgang Peiner added: “A broad knowledge of logistics provides future managers with a virtually unrivalled all-round preparation for tackling global challenges. In this connection the Kühne Logistics University, with its unswervingly international orientation, places a special emphasis on issues of qualified and sustainable corporate management.” Teaching at KLU will begin on 27 September 2010 with the start of the Master’s programme “Global Logistics”. This is designed for persons from all over the world who have successfully completed bachelor degree courses, wish to deepen their knowledge of logistics and supply chain management and see the complex field of logistics as a preparation for managerial tasks in all areas of commerce and industry. In addition to a semester abroad at one of the partner universities in China, India or the USA, the programme also includes a threemonth period of work experience. This summer will also see the start of the two Summer Schools for managerial staff from industry, trade and the service sector. In 2014, when all the programmes will have been launched, roughly 450 students will be registered at the KLU in the Hamburg HafenCity. www.the-klu.org

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Top-ranking trainees Once again Kuehne + Nagel has gained the top position in the latest Best Azubi contest, the biggest test of knowledge for Germany’s logistics trainees which is held each year by the industry magazine Verkehrsrundschau. After Stefanie Kettenhold in 2009, this year the first place among more than 1600 contestants was won by Mike Scheffler, a trainee forwarding and logistics manager from the Kuehne + Nagel office in Hanover. But not only his performance is an impressive testimony to the con-

tinued success of the company’s staff training programme. With Andreas Kowalski (from Bremen, place 3), Ro land Sixt (Straubing, 4), Kerstin Irmer (Bremen, 5), Max Munzert (Lichtenfels, 9), Michael Kahl (Bremen, 9), Fredericke Strauss (Hamburg, 9), Roland Goedde (Arnsberg, 14), Martin Migge (Dortmund, 16), Mireya Raasch (Bremen, 16) and Annika Warns (Bremen, 18), Kuehne + Nagel and its subsidiary Stute Verkehrs-GmbH captured no less than eleven of the first twenty places.

Proud management with its “Best Azubis” (f.t.l): Karl Gernandt (Executive Vice Chairman), Andreas Kowalski (place 3), Hans-Georg Brinkmann (Managing Director Germany), Mike Scheffler (place 1), Lothar Harings (Chief Human Resources Officer)

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