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INSTITUTE OF PROFESSIONAL EDUCATION AND RESEARCH

Report on Study of Supply Chain Management of Kuehne and Nagel

Kuehne + Nagel Over our 120 year history, has evolved from a traditional international freight forwarder to a leading global provider of innovative and fully integrated supply chain solutions.

Since 1890, when the business was founded in Bremen, Germany, by August Kuehne and Friedrich Nagel, Kuehne + Nagel has grown into one of the world's leading logistics providers. Today, the Kuehne + Nagel Group has more than 1000 offices in over 100 countries, with over 63,000 employees. Our key business activities and market position are built on the company's truly world class capabilities: Sea freight:

Number 1 global seafreight forwarder Sustained year-on-year double digit growth in managed freight Solid partnerships with an extensive range of preferred ocean carriers

Airfreight:

Top 3 global air cargo forwarder Leader in innovative cargo management concepts Global Cargo 2000 Phase 2 certification

Contract Logistics & Lead Logistics:


Top 3 global contract logistics provider Worldwide network of warehouse and distribution facilities Number 1 global lead logistics provider

Road & Rail Logistics:


European Top 6 provider Pan-European overland transportation capabilities, including dedicated and individual delivery services Close partnerships with best-in-class carriers

They provide logistics services to virtually all key industry sectors including: Aerospace. Automotive. FMCG. High tech Industrials. Oil & gas logistics.

Pharma & Healthcare. Retail.

Kuehne + Nagel is financially strong, stable and independent. Our global logistics network, cutting-edge IT systems, in-house expertise and excellent customer service is proof of our dedication to be the market leader. These attributes have placed us at the forefront of our industry, and positioned us to continue increasing the scope of our customer solutions and services. Kuehne + Nagel are a freight forwarding and logistics group headquartered in Switzerland with operations located throughout the world. Its main business is in the sea freight, air freight and contract logistics sectors, with a focus on providing IT-based Supply Chain Management Services. It also offers rail and overland transportation, as well as warehousing and distribution. Although it is strongest in its home European markets it has grown organically in the Asia Pacific Rim and through acquisitions in North America. Company supply chain management: Their core strength is the proven ability to build long-term, value-adding business relationships with energy customers whose supply chain requirements are especially demanding and complex. For example, by working closely with customers to determine their needs, Kuehne + Nagel can manage the complete supply chain -- from planning to operational phase. They design transportation models, assist with the freight budget, and develop cost-effective supply chain models that leverage complex consolidation opportunities. They acquires global provider of supply chain management: After a successful period of cooperation, global logistics group Kuehne & Nagel has acquired 60% of the Canadian company Virtual Integration Associates (VIA), provider of global supply chain management (SCM) and Vendor Management Inventory (VMI) programs for the electronics industry. VIA's parent company, the Canadian Rusgen holding, owns 40% of the newly formed companies KN VIA. For the Kuehne & Nagel group, KN VIA's services complement its existing range of Supply Chain Management products and will generate additional revenue for its global International forwarding and contract logistics businesses. KN VIA operates nine vendor hubs in the US, Canada, Mexico, Thailand and China with an annual material value throughput in excess of US$4bn. From these hubs, KN VIA services major electronic contract manufacturers (ECMs) and original equipment manufacturers (OEMs) with around 100 components suppliers. Within the next 18 months, KN VIA plans to launch another 10-15 hubs worldwide. Access to Kuehne & Nagel's global logistics network enables KN VIA to provide standardized SCM / VMI-services across the globe.

Key success factors for ECMs and OEMs in the highly dynamic and competitive electronics market are improved asset utilization, freight consolidation and global visibility across the supply chain. VMI-programs deliver value to achieve these goals. KN VIA-hubs are located minutes away from the EMC's or OEM's manufacturing facilities and offer suppliers the opportunity to provide their customers with maximum flexibility for production efficiency and scheduling. Implementing a VMI-program allows EMCs, OEMs and suppliers to eliminate warehouse space and buffer stock at their manufacturing facilities, reducing the frequency of supplier deliveries with a consolidated Just-in-Time delivery program from the hub. With its 24 hours/ 7 days visibility of accurate inventory information, the program enables suppliers to manage their outbound material supply chain pro-actively. They understand the specific demands of the sector and have the knowledge and experience to deliver industry leading solutions. All their lead logistics solutions are customer specific, individually designed and implemented to meet precise requirements. That said, their global IT and process standards, located in shared environments, enable leveraging on cost and best practices across a across a range of sectors that includes: Consumer electronic. Computer equipment. Telecoms network. Contract manufactures. Semi- conductors.

They help them identify the best warehouse network and transportation solution based on their service levels, flexibility requirements and cost optimization requirements. Our analyses are based on our knowledge of the local transport, labor, and real-estate markets as well as vast experience in optimizing supply networks. We offer various supply chain analysis and optimization packages that vary in complexity, detail, data requirements, and scenarios as well as project duration.

Company provides packaging solution: They offer professional packaging solutions in 9 different product categories through its Packaging Solution Center. The backbone of our packaging solution is our in-house packaging expert company Cargo pack in Germany that solely focuses on the development, design and execution of packaging concepts. This professional knowledge combined with Kuehne + Nagels global footprint enables us to deliver high quality packaging solutions on a global scale. The benefits of professional packaging solutions are: Product Professional packaging protects goods and materials from damage, loss,

corrosion and theft. Professional packaging solutions are a key element for cost reductions - e.g. Cost Reduction lower packaging material consumption, better transport utilization and reduced damages. Professional packaging solutions help to brand products throughout the supply Branding chain: from production to the final point of sale. Professional packaging solutions help to preserve our environment by Sustainability responsible use of raw materials and introduction of innovative and environmentally sound concepts. Protection Their packaging solution centre offers 9 different products enabling us to design solutions tailored to your requirements. For each of the products we have in-house experts who bring in their vast experience in order to ensure the success of your project - from the design of the packaging to the final delivery of your freight.

Wood packaging Paperboard packaging (Sea) Container packaging Corrosion packaging Plastic packaging CKD packaging Dangerous Goods packaging (Air) Temperature controlled packaging Returnable packaging

They make arrangement of insurance: NACORA is a member of the Kuehne + Nagel Group but operates as an independent broking firm. It specializes in the provision of risk management and insurance services for the transport and logistics industry. Since 1972 it has looked after Kuehne + Nagel customers in all industry sectors throughout all the major economies. Its network of offices spans 30 countries from where NACORA deploys insurance, claims and risk management specialists covering transport and logistics all over the world. In partnership with Kuehne + Nagel it has developed market leading cargo insurance solutions tailored to the individual needs of specific industry segments. This specialization allows clients to extend the scope of coverage beyond standard terms.

Supply Chain solutions: For all areas of logistics management we have developed solutions
that deliver value quickly and in line with the specific requirements of our customers. Proven

methodologies, systems and process as well as first class references are available for particular segments of the supply chain and for integrated endto end solutions: Upstream: Lead logistics solutions seek to give mainly industrial customers more control of their upstream partners. It looks at ways to make the coordination of processes and flows with supply side partners more efficient and more cost effective Downstream: Lead logistics solutions offers seamless control of distribution logistics in a sustainable and efficient manner on a global scale. From source to destination, end to end and across all transportation and service modes we offer coordinated planning and implementation. Kuehne + Nagel offer two business solutions to fulfill customer needs: Network Design and Optimization - strategic and operational logistics planning and assistance with implementation End to End Execution Management a complete management service covering all involved transportation and warehousing services Aftermarket: Lead logistics solutions support a wide range of aftermarket logistics capabilities globally. Our solutions utilize standardized processes but are configurable to service country specific customer needs and respect specific compliance and legal obligations. Software-as-a-service: Independent from ongoing management services, we offer innovative services based on a Software-as-a-Service (SaaS) model, dedicated to enable customers to optimize their logistics management internally Logistar is a brand of the DSIA Company, subsidiary of the Kuehne + Nagel Group. DSIA helps companies to find renewed competitiveness and sustainable development.

Improvement Solution: They support our customers optimize their supply chain actions,
advance service and visibility as well as accelerate their shipments. Reliability. Responsiveness. Flexibility. Costs. Inventory.

All these above points are used to make their best result as per their commitment. Company use their solutions program to give the best quality services to their customer.