kuehne & nagel luxembourg 2008
DESCRIPTION
Kuehne & Nagel Luxembourg 2008TRANSCRIPT
Kuehne+Nagel LuxembourgPress Conference <Eurohub Centre> Luxembourg
14th of October 2008
08/09/2008 p. 2• Kuehne+Nagel Luxembourg • Press Conference <Eurohub Centre> • p. 2
Agenda
I. Kuehne+Nagel Global Logistics Network
II. Kuehne+Nagel S.à r.l. Luxembourg
Global Logistics Network
08/09/2008 p. 3• Kuehne+Nagel Luxembourg • Press Conference <Eurohub Centre> •
Worldwide network - 850 locations in more than 100 countries
Integrated service portfolio – more than 53,000 employees
Over 7 million m2 warehousing space
The Global Logistics Network
Global Logistics Network
08/09/2008 p. 4• Kuehne+Nagel Luxembourg • Press Conference <Eurohub Centre> •
The global logistics network is our strongest asset. Dedication, integration and innovation are at the heart of our business philosophy. Focused on our customers’ needs we provide integrated logistics solutions of outstanding quality and operational excellence – we are the extension of your business.
Mission Statement
Global Logistics Network
08/09/2008 p. 5• Kuehne+Nagel Luxembourg • Press Conference <Eurohub Centre> •
Switzerland HeadquartersKuehne + Nagel
Today
Global LLS solutions Proven results Independent from 3PL
business Leveraged systems
infrastructure
Lead Logistics Solutions
No. 1 provider of global ocean freight services
Among top 5 global air freight providers
Over 2.6 Mio. TEU sea /1 Mio tons air in 2007
Sea and Air Logistics
Founded inBremen 1890
2007 turnover 21billion CHF(+15%)
2007 EBITDA 686 mio. CHF (+14%)
ContractLogistics
Among top 3 contract logistics providers
7 million m2 warehouse space across 58 countries
Industry specific solutions
Rail and Road Logistics
Among top 7 European providers
European Network of 38 countries
Over 1.5m shipments using 100 branches
General Introduction
Global Logistics Network
08/09/2008 p. 6• Kuehne+Nagel Luxembourg • Press Conference <Eurohub Centre> •
Special ServicesLead Logistics SolutionsDrinks LogisticsProject TransportsOil & GasEmergency & ReliefHotel LogisticsForest ProductsFairs & Exhibitions
Insurance Brokerage
Sea & Air LogisticsSeafreight Airfreight
Road & Rail LogisticsRoadRail
Contract LogisticsWarehousingDistributionValue added services
Comprehensive Global Logistics Solutions
Global Logistics Network
08/09/2008 p. 7• Kuehne+Nagel Luxembourg • Press Conference <Eurohub Centre> •
Global No. 1 in Seafreight
• Double-digit growth rates• Leading the industry with IT-based solutions• Strong partnerships with preferred carriers
Global Top 5 in Airfreight• Well positioned in the top league • Cargo 2000 Phase II certified (first mover!) • Strong partnerships with preferred airlines
Global Top 3 in Contract Logistics• Global infrastructure for global contract logistics coverage• Dedicated and shared warehousing & distribution management• Transportation management solutions
Top 7 in European Road & Rail Logistics • Focus on network services, LTL & FTL business• Pan-European coverage of 38 countries• Innovative intermodal solutions
Market Position
Global Logistics Network
08/09/2008 p. 8• Kuehne+Nagel Luxembourg • Press Conference <Eurohub Centre> •
Customer References
FM
CG
= F
ast
Mov
ing
Con
sum
er G
oods
Industrial/Chemicals
Automotive/Aviation
High-Tech Retail FMCGPharma/
Healthcare
Global Logistics Network
08/09/2008 p. 9• Kuehne+Nagel Luxembourg • Press Conference <Eurohub Centre> •
Benefits of a Partnership with Kuehne+Nagel
• Global network • Solutions for single and multi sites
• Shared or dedicated operations
• Performance guarantees based on proven standards
• Tailor-made solutions and added value services
• Optimized processes, latest technology and best practices
• Comprehensive supply chain analysis capabilities
• Financial stability - willingness and commitment to invest on behalf of customers
08/09/2008 p. 10• Kuehne+Nagel Luxembourg • Press Conference <Eurohub Centre> • p. 10
Agenda
I. Kuehne+Nagel Global Logistics Network
II. Kuehne+Nagel S.à r.l. Luxembourg
S.à r.l. Luxembourg
08/09/2008 p. 11• Kuehne+Nagel Luxembourg • Press Conference <Eurohub Centre> •
Background
• Present in Luxembourg since 1970
• 495 staff at 8 locations
• Head Office in L – Contern since 1996
• Biggest national / regional logistics provider
• Multi-lingual workforce > 18 nationalities
• Our activities: Seafreight, Airfreight, Contract Logistics, Road Logistics, European Competency Center for Lead Logistics
S.à r.l. Luxembourg
08/09/2008 p. 12• Kuehne+Nagel Luxembourg • Press Conference <Eurohub Centre> •
Geographical Location and Accessibility
LUX
• Strategically situated at the
Heart of Western Europe
• Close to major motorways
• Less than 7 km from
Cargo Airport “Lux-Findel”
Gateway to EU market:
App. 450 million consumers
300 km 70 mill. consumers
600 km 200 mill. consumers
900 km 400 mill. consumers
S.à r.l. Luxembourg
08/09/2008 p. 13• Kuehne+Nagel Luxembourg • Press Conference <Eurohub Centre> •
Last Five Year ResultsTurnover in Mio €
90.100 93.918
116.700
150.200
173.206162.000
0
20.000
40.000
60.000
80.000
100.000
120.000
140.000
160.000
180.000
200.000
20032004
20052006
2007
YTD 2008
S.à r.l. Luxembourg
08/09/2008 p. 14• Kuehne+Nagel Luxembourg • Press Conference <Eurohub Centre> •
Facts and FiguresTotal Manpower Development 2003 - 2008
290320
350380
420
495
0
100
200
300
400
500
600
20032004
20052006
20072008
S.à r.l. Luxembourg
08/09/2008 p. 15• Kuehne+Nagel Luxembourg • Press Conference <Eurohub Centre> •
Quality• ISO 9001 and 18001 certificates
Enviroment• ISO 14001 certificates
Safety & Health• OHSAS 18001 certificate
Airfreight• Cargo 2000 certificate
Customs• C-TPAT certificate
Pharmaceutical• GDP (GxP) certificate (LLS)
Quality Certificates
S.à r.l. Luxembourg
08/09/2008 p. 16• Kuehne+Nagel Luxembourg • Press Conference <Eurohub Centre> •
Globalization International procurement, production
and/or distribution networks, entry into new markets
Rationalized and changing procurement-, production, increased speed to marketReduced Product Lifecycles
New Technologies Global system requirements, end-to-end
supply chain visibility
Increased Customer Demand Requires flexibility, shorter lead times, more product variation, perfect order, new markets
Shareholder Value Orientation Pressure to reduce costs, competitive
advantage, focus on core competencies
Customers are striving for an integrated, optimized logistics operating model to drive significant improvements to supply chain performance
Trends Examples
Clear Business Trends
Lead Logistics Solutions
Kuehne+Nagel S.à r.l. Luxembourg
S.à r.l. Luxembourg
08/09/2008 p. 18• Kuehne+Nagel Luxembourg • Press Conference <Eurohub Centre> •
“The future success of Kuehne + Nagel’s Supply Chain and Lead Logistics Solutions will be based on IT and Process Excellence, a strong position in the Contract Logistics Market and the
global Kuehne + Nagel Forwarding Network”
Contract Logistics
„Forwarding-Packages“
Traditional Services„Point-to-Point-Forwarding & Simple Storage“
SCM/LLPSolutions
Va
lue
ad
ded
Ma
na
gem
en
t C
om
ple
xity
Lead Logistics Solutions
Strategy Corresponding to the Trend
S.à r.l. Luxembourg
08/09/2008 p. 19• Kuehne+Nagel Luxembourg • Press Conference <Eurohub Centre> •
Lead Logistics SolutionsWhat we provide as an LLP - How it Works
Customer Operations
CustomerSupply Chain
Management
Internal/ExternalProduction Operations
RegionalSales & Marketing
Warehousing Air TransportOcean Transport Trucking/Land TransportCompliance &
Documentation
• Orders• Demand Plans• Demand Forecasts• Status
• Demand Plans• Demand Forecasts• Status
• Orders• Forecast• Status
LLPManagement
Lead Logistics ProviderManagement of All Execution Activity
Single Point of Contact for SCM
• Shipments • Products
Order Status Events Compliance LocationInformation Coordination Mgmt
• Products• Delivery Status
S.à r.l. Luxembourg
September 2008 Kuehne + Nagel Lead
Logistics Solutions -
CONFIDENTIAL
Inbound“Supplier & Inventory
Management”
• Inbound Logistics Supply Management
• Upstream Transportation Mgt
• Solution Outsource
• Virtual Supply Logistics
• Inventory Planning & Demand Replenishment
Outbound“4PL Solutions”
• Supply Chain Design • Design / Simulation
• Supply Chain Execution• Planning and Execution
• Settlement• Business Support
• Supply Chain Monitoring• Continuous Improvement
• Critical Service Logistics • Spare Parts Distribution
• Last Mile Execution• Live Service Technician Updates
• Reverse Logistics• RMA Mgt
• Cartridge Collection Program• Waste Mgt (WEEE)
Inbound Supply
Production
OutboundDistribution
Storage
Supplier
Supplier
Supplier
Merge in TransitX-docking
CustomerPlant (s)
Spare Part Services
End-Consumer
(s)
Reverse Logistics
DistributionCentre (s)
ReceivingCustomer (s)
Supply Chain Technology Solutions• “Software As A Solution” - Warehouse/Order/Transportation Solution Design, Implementation and Support
Service Parts & Reverse“Aftermarket Management”
Kuehne + Nagel Lead Logistics Solutions Scope of Lead Logistics Solutions – Product Segments
Kuehne+Nagel S.à r.l. Luxembourg
Airfreight
S.à r.l. Luxembourg
08/09/2008 p. 22• Kuehne+Nagel Luxembourg • Press Conference <Eurohub Centre> •
Airfreight European HUB Centre
lux airport • 5th largest air cargo hub in
Europe
• Home base of Cargolux, European’s leading ALL Freighters Airline
• Offers direct flights from/to all continents
S.à r.l. Luxembourg
08/09/2008 p. 23• Kuehne+Nagel Luxembourg • Press Conference <Eurohub Centre> •
Inbound Flights into LUX - HUB Hand over of shipments into KN Local Network Dedicated Team at every Entry Point (Airfreight Office) Handling of volumes for destination country
Direct Shipments via LUX Dedicated operation Team located at LUX Airport / 7-24-365 Hand over of shipments in Lux into KN European Distribution Network
DestinationAirport
Origin(OEM or
CFS)
DestinationGateway
Airport-HUB
Consignee
HandoverUplift /
DispatchInbound LUX
RegionalCross Dock /
MITDelivery
CountryCross Dock /
MIT
DC
IDS E2E ShipmentHigh-Tech Network – Process Flow
S.à r.l. Luxembourg
Contract Logistics
Kuehne+Nagel S.à r.l. Luxembourg
Contract Logistics
S.à r.l. Luxembourg
08/09/2008 p. 25• Kuehne+Nagel Luxembourg • Press Conference <Eurohub Centre> •
Facilities:• 8 Warehouse Locations
• Multi-User Warehouse
• Bonded area
Key Figures:• WMS + Visibility
• 185 employees in 2008
Location Space in Sqm
Contern 30,000
Airport 4.900
Others 28,600
Total Warehouse Space
63,500
Extension 10/2009 40,000
Contract LogisticsKey Figures
S.à r.l. Luxembourg
08/09/2008 p. 26• Kuehne+Nagel Luxembourg • Press Conference <Eurohub Centre> •
Real Estate StrategyExpansion Strategy
Contern II40,000 sqm
Contern I 30,000 sqm
S.à r.l. Luxembourg
08/09/2008 p. 27• Kuehne+Nagel Luxembourg • Press Conference <Eurohub Centre> •
Real Estate StrategyNew Shared Warehouse Contern II
40,000 sqm building 72 loading doors (hydraulic
levelers) Sprinkler system Mezzanine floor
• Handling
• Office Available + Q4/2009
S.à r.l. Luxembourg
08/09/2008 p. 28• Kuehne+Nagel Luxembourg • Press Conference <Eurohub Centre> •
Lead Logistics + Contract Logistics Focus
Global economy pressure: Optimization of Customers Supply Chains Reduction of logistics costs spent
• Centralization / consolidation Distribution Centres• Reduction on inventories• Reduction of Lead Time E2E• Reduction of Ton/km > Co2
KN Lux Focus
S.à r.l. Luxembourg
08/09/2008 p. 29• Kuehne+Nagel Luxembourg • Press Conference <Eurohub Centre> •
Competitive Edge: Eurohub Luxembourg
• Central European geographical location
• Airport + servicing carriers (Cargolux, etc… )
• Multi – lingual population
• Cross – Border/ Regional Employees
• Modern infra structure incl. Intermodal Terminal
• Supporting Administration Institutions
• Tax + VAT incentive Fiscal Representation
• Logistic friendly Lux - Government
S.à r.l. Luxembourg
08/09/2008 p. 30• Kuehne+Nagel Luxembourg • Press Conference <Eurohub Centre> •
Conclusion
Lux-Government Focus: High Value Logistics as incremental industry segment
Benefiting parties:• Lux connecting Cargo Airlines• Airport + Handling Partners• Logistics Industry Luxembourg• Employment market• Tax-Income budget• Image of G. D. Luxembourg
All parties can benefit
Cooperate
08/09/2008 p. 31• Kuehne+Nagel Luxembourg • Press Conference <Eurohub Centre> •
The Anchor Principles
• Act as an extension of your customers' business.
• Improve, constantly.
• Collaborate.
• Keep your promises.
• Be accountable.
• Control costs.
• Respect others.
• Have fun.