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Dr.

Andre Kreie

September 2017
Kuehne Foundation

 Support for training, further


education, scholarships and
research in the fields of transport
and logistics
 Support for medical sciences,
humanitarian, charitable and
cultural projects

September 2017
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The Kuehne Foundation has five key areas

Kuehne Logistics
Improvement of Logistics Education and Research
University (KLU)

LEARN International Program for Advanced Education in


Logistics

Humanitarian
Improvement of humanitarian logistics processes
Logistics

Medical Projects Reduce and cure of allergies

Cultural Projects Support of music and culture festivals

September 2017
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Kühne Logistics University (KLU)

 Is a private, independent,
state-recognized university
 Is dedicated to teaching and
research in logistics as a
core element of globally
organized management
 Portfolio will cover the whole
spectrum of university and
executive education
 Research Center on
Humanitarian Logistics

September 2017
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Professorships and Centres

Professorship of Logistics Management at the Federal Institute


of Technology (ETH)

Prof. Dr. Stephan M. Wagner

Professorship and Kühne Centre for Logistics Management at


WHU – Otto Beisheim School of Management

Prof. Dr. Stefan Spinler, Prof. Dr. Carl Marcus Wallenburg

Professorship for International Logistics Networks at CDHK


at Tongji University

Prof. Sidong Zhang

Centre of Excellence “International Logistics Networks” at


Berlin Institute of Technology (TU)
Prof. Dr. Frank Straube

German Academy for Foreign Trade and Transport (DAV)


Dr. Andre Kreie
At BVL-Campus in Bremen, Germany/German Logistics Association
(BVL)

September 2017
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Three regions for LEARN

Europe

Horn of
Africa
Asia

September 2017
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Regional Platforms and Partners
Europe (Schindellegi)
HELP Logistics AG, registered 2014

Middle East (Amman)


HELP Logistics LLC
registered August 2016

Eastern and Southern Africa


(Nairobi)
HELP Logistics Ltd
registered October 2016

Asia (Singapore)
Kuehne Education Center Ltd, registered June
2015

September 2017
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- Center for Allergy Research and Education

5 Research Areas
 Allergies and the environment
 Prevalence and prevention of allergies in children
 Innovative diagnostics and therapies
 Mechanisms of severe allergies
 Therapies and rehabilitation

3 Target Groups for Education


 General practitioners
 Specialized allergologists
 Students

September 2017
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Cultural Projects

Examples of previously funded events...


Elbphilamony
Church Day – Kulturkirche St. Katharinen
Music Summer Zürichsee
Baden-Baden Gala
Nibelungen Festival Worms
Salzburg Festival – Young Singers Project
Lucerne Festival
Harbour Front Festival
Foundation Hamburg State Opera
and many more....

September 2017
Dr Andre Kreie -9- © Dr. André Kreie
Prof. Dr.-Ing. Josef Decker - CV

Current Positions
 Professer and Dean International University of Applied Sciences (IUBH),
Bremen, Germany (> 5 years)

Work experience
 Professionally trained business manager
 Professional work experience as consultant in the automotive industry, in
public administration and in supply chain management
 Development of supply chain management programs and university degrees
for different universities and the German Logistics Association (BVL)

Academic Background
 Academic education in the area of „Physics“ (Diploma), and „Supply Chain
Management“ (Ph.D.)
 International trainer for numerous logistics and management trainings

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Dr Andre Kreie - CV

Current Positions
 Project Manager with Kuehne Foundation (> 2,5 years)
 Vice-Dean at German Foreign Trade & Logistics Academy, DAV (> 4 years)

Work experience
 Professionally trained logistician with the global logistics company DSV
 Professionaly work experience as a freight forwarder with DSV and as a
logistician with the DIY-Chain OBI, in Germany
 Total work experience including international deployment >5 years

Academic Background
 Academic education in the area of „Business Management and Economics“
(B.A. eq), and „Logistics and Supply Chain Management“ (M.Sc. and Ph.D.)
 Training (>3,800 hours) in Europe, Central Asia, Asia, and Africa

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Logistics Globalization – Opportunities and challenges
September, 27th, 2017
Bandung

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Overview

Globalisation

Trends,
opportunities,
and challenges

Logistics
strategies

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A soccer ball – a global product

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A soccer ball – a global product
8
2
1
6

Leverkusen, Grmany
Scheinfeld, Germany Uffenheim, Germamy
9
3 Osaka, Japan
4

Herzogenaurach, Germwny
Suwaon, South Korea
1. Scheinfeld, Germany
Neu Delhi, Indiea
2. Leverkusen, Germany 5
3. Suwaon, South Korea

4. Neu-Delhi, India
7
5. Haiphong, Vietnam Haiphong, Vietnam

6. Osaka, Japan

7. Sriracha, Thailand
Sriracha, Thailand
8. Uffenheim, Germany

9. Herzogenaurach, Germany

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World economy development
Many parties are involved in global supply chains

18 180

16 160

14 140

12 120

10 100

8 80

6 60

4 World Gross Domestic 40


Product
2 20
[1.000 bn US$]
0 0
2000 2005 2010 2015 2020 2025 2030

Sources: IHS Global Insights (trade), OECD statistics (GDP), UN Department for Economic and Social
Affairs (Population), ICS International Chamber of Commerce, 2013 Status September 28th, 2017
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Quelle: HHM – M. Lindner
Development
Development of world trade
of world trade
World merchandise trade
in bn US $

WTO, 2016

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Global economy

Visions and Clichés of regions of the world concerning emerging countries


China – Factory of the World

United Arabi Emirates – Russia und Brasil –


Hub of the World Resources of the World

India –
Eastern Europe – IT-/Services Factory of the World
Factory of Europe

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Reasons for globalisation – cost reduction

Transport and communication costs


Index 1930 = 100,

Seafreight
Seafreight
Airtransport

Telecommunication

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Globalisation will lead to further increase of
transport

Source: World Business Council for Sustainable Development - Mobility 2030 report

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Overview

Globalisation

Trends,
opportunities,
and challenges

Logistics
strategies

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Development of logistics

1970ies 1 Separated Classical understanding of logistics: transport, handling,


functions warehousing

2 Linking of separated Classical logistics + Cus-


1980ies functions cross sectional functions tomer

3 Cus- Logistics integrates functions Cus-


Process chains
1990ies tomer into process chanins tomer

4 Value chains Cus- Logistics integrates companies Cus-


tomer into value chains tomer

5 Cus- Loistics integrates value chains Cus-


2000nd Global networks
tomer into global networks tomer

6 Reconfiguration of Cus- Integration of dynamically changing Cus-


2010 ff. global networks tomer network configurations on a global level tomer

7 Digitalisation and Cus- Logistics 4.0 integrates people and Cus-


Internet of things tomer machinery in worldwide networks tomer

extended on basis of : Baumgarten / Walter, 2003

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Networking, complexity and technologies are most
important trends
Key Logistics Trends
91%
90%
85% 85%
80%
80% 78% 78%
76%

70%

59%
60%

50%

39%
40%

30% 28%

20%

BVL, 2013

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Many parties are involved in global supply chains

4th Party Logistics Provider (4PL)

Logistics 3rd Party Log. Contract Express,


Forwarder Service Prov. Provider (3PL) Logistics Prov. Parcel,
Production Courier

n tier 2nd tier 1st tier Original Retailer Custome


Supplier Supplier Supplier Equipment r,
Manufacturer End User
(OEM)

Supply Chain Management / Logistics (Source:Wimmer, 2015)

Logisctics is integrating and coordinating the parties in supply networks!


Wimmer, 2015

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According to different products and different markets
SC‘s can be categorized into different groups…
Low Demand High Demand
Uncertainty Uncertainty
Low Supply
Uncertainty

Efficiency/Lean Responsive
Reliability and cost orientation to fulfill Responsive and speed to fulfill
High Supply
Uncertainty

Risk Hedging Agile


Reliable, flexible and on-time to fulfill Responsive and flexible to customer needs

Source: KPMG,2016

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Worldwide car production – shifting to the markets
e.g. BMW

BMW, Rudloff, 2015

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Worldwide car production – shifting to the markets
e.g. BMW

85% German production


Units

55% German
Units

production

BMW, Rudloff, 2015

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Worldwide car production – shifting to the markets
e.g. Daimler
Units
Units

BMW, Rudloff, 2015

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Global Freight Routes

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Globalisation will lead to further increase of
transport
RWI/ISL Container Handling Index
2010=100

http://mylogistics.net/2016/06/24/rwiisl-containerumschlag-index-welthandel-erneut-
ruecklaeufig/#prettyPhoto, 27.6.2016

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Seafreight
Technological developments – ship size

www.largestships.com/wp-content/uploads/2013/12/biggest-container-ship-evolution.jpeg;
www.allaboutshipping.co.uk: DNV GL highlights trends in the container and bulk shipping.
November 2014.

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MSC Oscar (19224 TEU)

TUHH, 2015

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© Bild Hamburg Jahn, 2015
Seafreight
Market development

https://crucialperspective.com/global-container-shipping-outlook-2017/, 21.9.2017
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Seafreight
Market development – New alliances

New alliances since april 1st, 2017:

2M: Maersk line incl. Hamburg Süd, MSC, HMM (via Slot Charter in pacific region)

Ocean alliance: CMA CGM incl. APL, Cosco Container Lines, Evergreen, OOCL

The alliance: „K“-Line, NYK, MOL, HAPAG Lloyd incl UASC, Yang Ming, ZIM (via
cooperation in atlantic region)

Problems:
• Start of services, Loads had been carried to specific ports
• Ports are specified, but Terminals within the ports not
• Hinterland operators face problems because of that
• Founding of alliances and integration of other partners at the same time
• Special safety agreements from customer side requested

DVZ, No. 26, March 31, 2017


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Seafreight
Market development – New alliances
Atlantic Trans Pacific
Andere Andere
5% 2M 9% The Alliance
The Alliance
33% 20% 29%
2M
49%
Ocean Alliance Ocean
13% Alliance
42%
Far East

5%
The Alliance Ocean Alliance 2M Andere 23% The Alliance Ocean Alliance 2M A

38%

34%

The Alliance Ocean Alliance 2M Others

DVZ, No. 26, March, 31, 2017


Status September 28th, 2017
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Mega Ships: Handling Peaks in Container
Terminals

Quelle: Hamburger Hafen und Logistik AG (2014), S. 17.

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Seafreight – Challenges and strategies at the
terminals
Intelligent Logistics Space – e.g. Port of Hamburg

• Driver less transport of containers


• High level IT-Integration
• High efficiency due to standardized
processes
• Competitive market approach
acc. to terex, Planet-Wissen, 2015

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Railfreight from Asia to Europa

Basic information:

9288 km, Moskau to Wladiwostok 140


km/h max.
14 -18 days

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Railfreight from Asia to Europa
Example Kühne & Nagel, LCL

• Customers fromAutomotive, high-


tech, fashion
• Eastbound available, too
• Enhanced’ container seals,
• GPS tracking,
• real-time monitoring of temperature,
humidity, pressure and light
exposure,
• 45 ft reefer container are available
for temperature-sensitive goods
• Fully transparence of transport
status due to KN Login Portal
February 2017, New Service by KN Eurasia • More than 50 collection points in
Launch of LCL service from Wuhan (China) to China incl. Shenyang, Chongqing,
Posznan (Poland) and Hamburg/Duisburg Chengdu and Zhengzhou
(Germany) • Block train service to Turkey
14-18 days available, too
http://www.railwaygazette.com/news/single-view/view/china-to-europe-less-than-container-load-service-launched.html, 21.09.2017 Status September 28th, 2017
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Railfreight from Asia to Europa
Example UPS (March 2017)
Rail service UPS from/to China (LCL, FCL)

Advantages:
65 % cost savings compared to
airfreight
Connections from: Services: 40% time saving compared to
Changsha, Chongqing, Customs, temperature seafreight
Suzhou and Wuhan, control, GPS tracking, 25 times less CO2 than airfreight
recently added to FCL, LCL Less nitrogen oxide, sulphur
Zhengzhou and Chengdu. dioxide, non-methane hydrocarbon
than maritime transport
http://www.railwaygazette.com/news/news/europe/single-view/view/ups-adds-six-cities-to-china-europe-rail-freight-network.html, 21.09.2017 Status September 28th, 2017
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One Belt One Road (OBOR) – Silk road economic belt
(一帶一路 / 一带一路,)

Basic information:

Official start in 2013, Invest ca. 1,100 bn US$, finished in 2049, up to 65


countries directly involved, Investments by silk road fond and AIIB (Asian
Infrastructure Investment Bank)

Goals of the initiative:


• Stabilisation of the western part of China, especially the borders to the mid asian
countries
• Development of China‘s western parts, especially the region Xinjiang
• Diversification of focus, not only Pacific region

Concrete projects:
• International airport and goods handling area in Korgas, Xinjiang
• Central Asia – china gas pipeline
• Railway Angren - Pop

Status September 28th, 2017


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One Belt One Road (OBOR) – Silk road economic belt
(一帶一路 / 一带一路,)

A goods train starting in Zhengzhou to Europe

http://www.faz.net/aktuell/wirtschaft/wirtschaftspolitik/mammutprojekt-der-welthandel-soll-ueber-chinas-seidenstrasse-rollen-15012993.html, 21.9.2017

Status September 28th, 2017


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One Belt One Road (OBOR) – Silk road economic belt
(一帶一路 / 一带一路,)

https://de.wikipedia.org/wiki/One_Belt,_One_Road#/media/File:One_Belt_One_Road.png, 15.09.2017

Status September 28th, 2017


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One Belt One Road (OBOR) – Silk road economic belt
(一帶一路 / 一带一路,)

6 defined corridors

1.China – Mongolia – Russia


2.New Europe-Asia landbridge
3.China – Central Asia – West Asia
4.China – Pakistan
5.Bangladesch – China – India – Myanmar
6.China – Indochina – Pensinsula

https://de.wikipedia.org/wiki/One_Belt,_One_Road#/media/File:One_Belt_One_Road.png, 15.09.2017 Status September 28th, 2017


- 45 - © Josef Decker, André Kreie
Airfreight

„Global airfreight demand increases by 13%,


freight capacity grew by 5.2%“

IATA, May 2017

Airfreight trends are an indicator for global


economic trends

All regions, with the exception of Latin


America, reported year-on-year double-digit
increases in demand in May 2017.

Status September 28th, 2017


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Status September 28th, 2017
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The challenge - complexity

Complexity of product spectrum


1 Series

6 Series 5 Series X3
Overall complexity
Z4

7 Series
2001 2002 2003 2004 2005

Complexity of functions of 1 Series

products
6 Series 5 Series X3

[fx]
Z4

7 Series
2001 2002 2003 2004 2005

Variety of productsl

Source: Bereich Logistik, TU Berlin

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Today – the everywhere business
and the smart world

Purchasing as stores,
Until 1990

printed catalogues
Factory POS Home
Self delivery,
Supplier Retailer Parcel services Private Customer

Mobile

Outlet Mobile Parcel


station
Home
POS
Today

Factory Outlet Lock


box
Show- Mobile
Mobile
room
Outlet
Buying everywhere, delivering everywhere

Status September 28th, 2017


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Today – the everywhere business
and the smart world

Foto © BillionPhotos.com

Status September 28th, 2017


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Today – the everywhere business
and the smart world

Status September 28th, 2017


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Climate change and global logistics

Marine ice concentration

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Climate change and global logistics

North East Passage


- Reduction time: from 28 days
to 15 /17days

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Sustainable global transport – giving the choice to the
customer
Sustainability
Cost Time CO2

Airfreight
Truck Plane Truck
Shanghai-Airport Frankfurt-Airport

Seafreight
Truck Ship Truck
Shanghai-Port Antwerp-Port

Railway
Truck Rail Truck
Beijing Brest

Air/Vessel

Truck Ship Truck Plane Truck


Shanghai-Port Dubai-Port Dubai-Airport Frankfurt-Airport

acc. to DB Schenker, Wütz, 2010

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Sustainable global transport – Risk have to be
dealt with

Political
Financial Risk identification

Risk-
Risk response
Climate change control manage- Risk quantification Technological
ment

Risk response
Natural desaster development Terrorism

Status September 28th, 2017


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Overview

Globalisation

Trends,
opportunities,
and challenges

Logistics
strategies

Status September 28th, 2017


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Strategies of the companies show the importance of
integration

Key Logistics Strategies


94%
91% 89%
90% 85%

80% 78%

69% 70%
70%

60%
50%
50% 44%
43%
40%

30% 24%
20%

10%

BVL, 2013

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Integrated (logistics) services by
German Post - DHL
Plan Laying the foundation for an effective
and efficient supply chain.
• Supply chain analysis and design
• Lead logistics provider (LLP) services
• Environmental complicnce

Make Manufacturing the product


• Industrial projects transportation
• Inbound to manufacturing
• In-plant logistics
• Contract manufacturing

Deliver Getting it where it needs to be


• Transportation and distribution management
• Service parts logistics (3PL)
• Home delivery (Last mile)
• E-Fulfilment
• In-store logistics acc. to DHL, 2017

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Integrated (logistics) services by
German Post - DHL
Source Bringing it all together
• Procurenment services
• Raw materials warehousing
• Raw materials transporting
• International supply chain management
(SCM)

Store and
customize
Getting it ready to sell
• Finished goods warehousing
• Assembly and packing services

Return
Bringing it back when it’s not needed
• Reverse logistics
• Environmental compliance
acc. to DHL, 2017

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Integrated (logistics) services by
DB Schenker (a Deutsche Bahn Company)

World leading provider of Integrated Logistics Services

• 94,000 employees worldwide


• 2,000 offices
• Tailor-made products for Industry
• International teams
• Modules as basis for individual solutions
• Huge amount of value addes services (VAS)

“DB Schenker is one of the world's leading


providers of integrated logistics services,
offering land transport, air and ocean freight as
well as comprehensive logistics solutions and
global supply chain management from a single
source”

acc. to DB Schenker, 2017

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Kühne + Nagel Integrated Logistics

www.kuehne-nagel.com
SOLUTION
RESULTS
Kuehne + Nagel’s solution has been a success.
The client still uses multiple forwarders, brokers and warehouse providers but the true end-
to-end visibility now identifies the gaps between hand-offs and includes them in schedules
or removes them through devising opportunities for efficiencies. Most important, the marked
improvements have been appreciated by the client’s own customers who are now able to
share the enhanced visibility.
Facts & figures
Net Promoter Score improved more than 30 points since the change
SKU analysis shows almost 30% reduction in inventory
Reduced global transportation cycle by 19+ days with preferred carrier routing & virtual
cross-dock
79% decrease in annual demurrage fines
Multi-million dollar savings identified through freight consolidation, mode & carrier selection
and weight break analysis.

This engagement continues to be highly successful and beneficial for all stakeholders — the
client, Kuehne + Nagel, the subcontractors, and of course the client’s own customers. th
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Perhaps the best indication of its success is that the client has extended its range three
About Kühne + Nagel integrated logistics

• Kuehne + Nagel is the world’s foremost Lead Logistics provider, strategically operating
in 7 Logistics Control Centres, globally distributed.

• Focused on creating lean, agile and demand-driven supply chains.

• KN ControlTower: a Kuehne + Nagel Integrated Logistics product providing


managed logistics services tailored to meet the needs of our customers.

• The customers’ end-to-end supply chain needs managed through one single point of
contact for increased visibility, efficiency and the opportunity to focus time and resources
on their core business.

• Industry-specific expertise with global reach and local market knowledge.

• Logistics/supply chain management that uses the 3PL expertise and operational
excellence of the KN Group.

acc. To: https://www.kn-portal.com/integrated_logistics/integrated_logistics_overview/, 15.09.2017

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Integrated Logistics by Kühne and Nagel

acc. To: https://www.kn-portal.com/integrated_logistics/integrated_logistics_overview/, 15.09.2017

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About Kühne + Nagel Integrated Logistics

acc. To: https://www.kn-portal.com/integrated_logistics/integrated_logistics_overview/, 15.09.2017

Status September 28th, 2017


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To sum up

• Globalisation is going on. But the game is changing

• Global Integration is an important strategic success factor,


especially in logistics

• Dealing with complexity as well as technological competence


are challenges today and in the future!

• The digital transformation offers business opportunities but


challenges, too

Status September 28th, 2017


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Status September 28th, 2017
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