Contract Logistics Expansion in Malaysia

April 23, 2008 marked an important milestone

in the development of the Kuehne + Nagel

Malaysian organisation. On this special date,

the company’s new logistics centre in Kuala

Lumpur was officially inaugurated by

Dr. Urs Stemmler, Swiss Ambassador to

Malaysia, and Klaus Herms, Chief Executive

Officer of Kuehne + Nagel International AG,

in the presence of numerous customers

and business partners.

The state-of-the-art facility represents one of

the latest examples of Kuehne + Nagel’s

logistics terminal design in the Asia Pacific

region, as well as worldwide. The investment

is evidence of the dynamic development of

the national company in Malaysia over

the past 35 years. It supports the

continued logistics expansion of

Kuehne + Nagel in Asia Pacific,

boos t ing the reg iona l to ta l

warehousing c apac i t y unde r

management to 320,000 sqm.

Located at Bukit Jelutong, Shah

Alam in close proximity to the

city’s major infrastructure, the

new complex provides 22,000

sqm of warehouse space and is

equipped with the latest warehouse

management systems, including RFID

capability. The bonded premises feature a

dedicated chemical storage area for around

4,000 pallet positions and a 2,000 sqm

temperature-controlled area. Smooth access

to the facility is provided by 40 hydraulic

loading docks.

The facility also houses the

national head office and the

Kua l a Lumpur b r anch

office, covering all functions

except for airfreight, thus

facilitating the creation of

synergies and the provision of

integrated logistics under the

same roof.

Officiating guests at the opening ceremony: Dr. Urs Stemmler, Swiss

Ambassador to Malaysia, and Klaus Herms (left), Chief Executive Officer

of Kuehne + Nagel International AG

Malaysia is ideally situated in the centre of

the Asia Pacific region. Due to this geographical

advantage, it has emerged as the gateway

between the East and the West. From this

strategic location, local and multinational

enterprises can benefit from cost and

process optimisation along their supply

chains. The bundling of goods here, for

instance, allows for the shortest transit

time to and from Europe. It also holds true

for intra-Asian trades.

Since 1973, Kuehne + Nagel has been

strongly involved in Malaysia’s logistics

development. Today, its national network

consists of 5 offices, in Kuala Lumpur,

Penang and Johor Bahru, and is operated by

over 200 employees.

The latest example of Kuehne + Nagel’s logistics facility design; the new terminal features 22,000 sqm of

warehouse space and a dedicated chemical storage area for around 4,000 pallet positions

Celebrating an important milestone in the development of Kuehne + Nagel Malaysian

organisation

ASIA PACIFIC ISSUE 1/2008

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EmployeeSafetyComes FirstIn Vietnam, motorcycles are the most

common form of transport; 95% of

commuting and transportation is done by

motorcycle. As of December 15, 2007, it has

been required by law for all motorcycle

drivers and passengers in Vietnam to wear a

crash helmet.

Kuehne + Nagel in Vietnam takes a sincere

step in the promotion of health and safety

of its employees. As a responsible employer,

the company has provided crash helmets for

all of its staff members. In addition, a

voluntary health and accident insurance

scheme has been offered as a supplement

to the government healthcare plan.

Award for Best PracticeKuehne + Nagel Korea was recently

presented an award for “Best Practice” by

Robert Bosch Korea, after the logistics

provider received excellent feedback from

an audit conducted by the customer’s audit

team based in its headquarters in Germany.

The audit assessed the following criteria:

elimination of waste throughout the supply

chain, a mindset of continuous improvement/

best practice and the involvement of all

associates in the relevant processes.

Kuehne + Nagel Korea has been supporting

Robert Bosch Korea since 1996. The scope

of the services offered for Robert Bosch

includes warehouse operations and

management, milk run production lineThe ‘Best Practice’ award came after excellent feedback from

Robert Bosch’s audit team

feeding and inventory control of finished

goods. Recently, Kuehne + Nagel Korea has

also secured inbound air- and seafreight

services for Robert Bosch Korea.

Lufthansa’s Top PartnerAlejandro Arias, General Manager of

Lufthansa Cargo Korea, presents a “top

partner” award and a miniature plane to

KW Park (left), General Manager Airfreight

of Kuehne + Nagel Korea, in appreciation

of the logistics provider’s outstanding

performance in airfreight and impressive

volumes generated throughout 2007.

The Vietnamese staff crew in company crash helmet

82137_E 03/05/2008, 11:12 AM2

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The project enables fast deliveries and streamlined hand-over

process for Best Buy

Kuehne + Nagel Wins Reliability Awardend-2007. This was the first time that logistics

service providers were included in

proceedings.

The award was judged according to reliability

of performance. Of all of Adidas’ suppliers,

Kuehne + Nagel achieved the most stable key

performance indicators throughout 2007, and

consistently scored above the standard levels.

Further factors which contributed to

Kuehne + Nagel’s win include the successful

re-engineering of Adidas’ logistics process in

Latin America and the company’s swift

response times in general. Kuehne + Nagel

is the only logistics company to have received

this accolade.

Andreas Auch (right), Global Key Account Manager for Adidas, with

Neill Ferguson, Head of Transport & Logistics, Adidas Service Limited

Kuehne + Nagel was presented with the

Supplier Award — Reliability by Adidas at an

annual supplier meeting, which took place in

Kuehne + Nagel have been working with

Adidas for more than eight years. The

comprehensive scope of services includes

international sea- and airfreight as well as

contract logistics.

Kuehne + Nagel is the only logistics company to have won the

Adidas’ Supplier Award for reliability

Kuehne + Nagel assumed a steering role in the overall design

of Best Buy’s distribution centre in Shanghai’s Minhang district

Best Buy Co. Inc. has awarded Kuehne + Nagel

China a contract for the provision of

warehouse management and domestic

distribution services. The new agreement

marks an extension of the business

partnership between the two companies in

place in Canada since 2005.

In line with its market entry strategy and first

store opening in Shanghai, Best Buy, a leading

retailer of consumer electronics, home-office

products and related services, has leased a

6,000-sqm facility in Minhang district in the

southwest part of Shanghai. To enable

maximum flexibility, efficiency and scalability

of operations, Kuehne + Nagel assumed a

steering role in the overall design of the

dis t r ibut ion centre by taking into

consideration the expected product mix,

material flow and storage areas, as well as the

installation of modern security measures and

Kuehne + Nagel’s globally standardised

warehouse management system.

The project enables fast deliveries and

streamlined hand-over process for efficient

and reliable shelf replenishment at Best Buy’s

new store in Shanghai.

Extended Partnership with Best Buy in China

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National Company Opened inthe Republic of MaldivesKuehne + Nagel is the first international

logistics provider to operate a wholly-

owned subsidiary in the Republic of

Maldives. In mid-February 2008, the

company opened two offices on Malé

and Gan. This expansion strengthens

Kuehne + Nagel’s network in the Asia

Pacific region, which now spans 141

locations in 21 countries.

Consisting of a group of atolls located in

the Indian Ocean about seven hundred

kilometres south-west of Sri Lanka, the

island nation is home to more than 100

hotels and resorts, and is one of the key

exporters of fresh and aquarium fish.

Kuehne + Nagel’s new national company

specifically caters to the requirements of

the hospital i ty industry, providing

comprehensive hotel and beverage logistics

solutions across the Maldives, as well as

general imports of consumer goods,

international sea- and airfreight services,

warehousing, project management, and

emergency and relief logistics.

“The establ i shment marks another

important step forward for Kuehne + Nagel’s

Asia Pacific organisation. With the extension

of our network in almost every part of

the region we are well positioned to

respond to market and customer needs,

continuously improving the scope of our

services,” said Andy Weber, Managing

Director of Kuehne & Nagel (Asia Pacific)

Management Ltd.

Kuehne + Nagel’s head office on Malé, the Republic of Maldives

Students Gain Insightinto Integrated LogisticsWissenschaf t l i che Hochschule fü r

Unternehmensführung (WHU) – Otto

Beisheim School of Management, one of

Germany’s top-ranked business schools,

arranged for a group of 20 MBA students to

visit Kuehne + Nagel in Shanghai in March,

as an integral part of its well-formulated MBA

programme. The main objective is to provide

students with a practical environment to gain

an insight into the latest developments in

logistics.

The Kuehne Foundation sponsored

the chair of logistics management at

the WHU’s Kuehne Centre for

Logistics Management since 2005.

In addition, the company supports

the institution in conducting its

management programmes.

The brief but informative visit

included company presentations and

guided tours to Kuehne + Nagel’s

container freight station as well as

the Yangshan Port, Shanghai’s newest

shipping hub. The students expressed

a keen interest in logistics. “Many

thanks for sharing your time and expertise with

me and my group of MBA students. As you

could probably tell by all the questions raised,

the visit was a complete success. When I asked

the students what they thought of the visit,

the consensus was impressive,” comments

Professor Dr. Lutz Kaufmann, WHU Otto

Beisheim School of Management, Chair for

International Business & Supply Chain

Management.

As one of the key players in integrated logistics,

Kuehne + Nagel always welcomes the talent

of the future to explore every opportunity

presented in this dynamic sector.

The students were grateful for the insight they received on the conceptual and

practical details of contemporary logistics development

Kuehne + Nagel (Asia Pacific) Management Ltd.

25th Floor, MassMutual Tower

38 Gloucester Road

Wanchai, Hong Kong

Tel.: (852) 2823 7688

Fax: (852) 2527 8396

E-mail: corinna.lam@kuehne-nagel.com

Internet: www.kuehne-nagel.com

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