Kuehne + Nagel - More than 125 years in the logistics sector

Since the group’s founding in 1890 by August Kuehne and Friedrich Nagel in Bremen, Germany, Kuehne + Nagel has grown into one of the world’s leading logistics providers.

Over more than 125 years, Kuehne + Nagel has evolved from a traditional international freight forwarder to a leading global provider of innovative and integrated end-to-end supply chain solutions.
Today, the Kuehne + Nagel Group has more than 1,200 offices in over 100 countries, with approximately 68,000 employees. The Kuehne + Nagel Group is one of the world’s leading logistics companies. Its strong market position lies in the seafreight, airfreight, contract logistics and overland businesses, with a clear focus on providing IT-based lead logistics and supply chain management services. Interview with managing director Kuehne + Nagel BeLux, Kevin Nash.

What projects are you currently working on?
“Currently we are constructing a new warehouse location in Contern and also working on the extension of our Overland and Control Tower operations.
The new facility in Contern will be a 46,000m2 state-of-the art warehouse, which is planned to go into operation by December this year. The state-of-the art facility with bonded and non-bonded areas will be ideally located within close proximity to major highways and ports which enable fast access to European destinations. It will have 40 loading bays and be suitable to store up to 56,000 pallets. The logistics centre will be equipped with advanced technology and automation solutions to help improve workflow processes, reduce time required to pick, pack and ship items and enable orders to be fulfilled faster.
20,000m² of the warehouse space will serve the Fanuc Europe Corporation as a European Distribution Centre and a Product Customisation Centre for Robots and Robomachines. In addition to the warehouse operation, Kuehne + Nagel will manage the distribution of all robots and robomachines to the European market.
The remaining space is designed to support customers in their growing demands for integrated end-to-end solutions in Luxembourg, with a main focus on industrial goods and eCommerce fulfilment activities. The total warehouse capacity is 46,000m² built on a land plot of 80,000m². The new centre is expected to be completed by the end of 2016.
In addition, we are expanding our Overland Cross-Dock operations in our existing building to double the size of both general cargo and pharmaceuticals, including the temperature-controlled areas, as well as developing more than double the capacity for our Control Tower operations; all of which is driven by our positive business growth.

What successes are you particularly proud of?
“I am proud of a great number of achievements in all areas, but I want to particularly highlight our leading position in pharmaceutical logistics.
Our industry knowledge and customer-focused approach, enables us to provide best-in-class, GDP certified, pharma logistics services across all transport modesand our business units. As part of our strategy, we continue to focus on further developing industry specific solutions.

What are the biggest challenges your sector is facing?
“Remaining competitive in this VUCA (Volatile, Uncertain, Complex, Ambiguous) business environment that prevails at this time. Whilst we are not unique in facing this challenge, our differentiator is that we place extraordinary importance on engaging with our customers to understand their challenges and then providing solutions that add value and, in turn, build lasting relationships through mutual benefit. Of course there are also a multitude of influencing factors to be considered in ensuring competitiveness.
A key criterion for success is being able to train/attract, and, of course, retain competent and experienced employees at every level. I am convinced that a company that takes care of its employees will benefit from their motivation and customer service.

If you could change one thing about your sector, what would it be? How could the Chamber of Commerce support you?
“I would relate this to the previous point, where I would like to see the sector being considered as a more viable career option by a broader and larger talent pool in Luxembourg.
Overall, the sector has excellent opportunities for successful students at all levels and Kuehne + Nagel as a global company (68,000 staff worldwide, over 1,200 offices across more than 100 countries) offers significant possibilities both on a national and an international level. The Chamber can definitely help to make the sector more visible and promote the career opportunities in schools and universities.
Furthermore, encouraging the development of programs along with the incumbent companies in Luxembourg like Kuehne + Nagel, which lead to the creation of logistics knowledge, skills, and national capacity within the sector would be a very positive and valuable initiative.”

Quick overview

• The Kuehne + Nagel Group was able to increase gross profit by 8 per cent to CHF 3,257 million in the first six months of 2016 while net turnover slightly decreased. The operating result (Ebitda) grew by 10 per cent to CHF 547 million. Earnings for the period improved by 9 per cent to CHF 356 million compared to the previous year’s period.
• Today, Kuehne + Nagel operates in Western Europe, Eastern Europe, North America, South America, South Asia Pacific, Middle East, and Africa.
• Number of employees (2015) (worldwide): 67,236.

Photos : Pierre Guersing