kuehne+&+Nagel

= __KUEHNE & NAGEL __ =

 KN is one of the largest transport and logistic companies. It has expanded rapidly internationally since its formation in Germany by the late 80s. The growing demand for international logistic solutions has made this industry flourishing, and KN is enjoying the benefits of its expansion. However, there is place for improvement specially on the Asia-Pacific region :

LOCAL ALLIANCE
Partnering with a local forwarding and transportation company will help the company overcome its limited operations problems in the Asia-Pacific area.

EXPANSION OF GEOGRAPHICAL COVERAGE
A comprehensive solution must be developed to cover more ground in the region. If a strategic alliance with local FF and transportation companies is to be established then:
 * Proper technology implementation and collaborative information is to be developed in order to have up-to-date and real time data available for customers.
 *  The possibility of building or acquiring Logistic and SC facilities should be considered to quickly distribute cargo.
 * Implementation and development of an extension to the ERP systems,OMS, TMS, and WMS.

INCREASING REVENUE AND ENVISIONING OPPORTUNITIES FOR EXPANSION
Although, KN has a healthy economic panorama there is room for improvement and solving opportunities:


 * Germany concentration and success needs to be recreated in other regions such as: North, Middle, and South America. Europe (Excluding Germany), and Asia and Pacific Region. KN business from Germany accounts almost for the same percentage as the rest of Europe and the American continent.
 * Low penetration in the Asia-Pacific region.
 * Opportunities for development in the specialized services and other services (Chart)

INDEX


Regional Level operations to Gross Profit || 9.5 || 10.7 ||  || Logistics as a proportion of turnover || 1227 || 1481 ||  ||
 * |||| KN Asia-Pacific ||  ||
 * || 1996 || 1997 ||  ||
 * Turnover || 2.9 || 37.6 ||  ||
 * Contribution of
 * |||| Divisional Basis ||  ||
 * |||||| KN Asia-Pacific (In millions) ||
 * || 1996 || 1997 ||  ||
 * Overland, rail and
 * Overland, rail and
 * Current Issues ||  ||   ||   ||
 * **Continuous and rapid growth for SCM services** ||
 * Strategic alliance with DHL ||  ||   ||
 * **KN Asia-Pacific operations limited to sea and** ||
 * airfreight distribution only ||  ||   ||
 * Port to interior services are highly limited . ||
 * **KN Asia-Pacific operations limited to sea and** ||
 * airfreight distribution only ||  ||   ||
 * Port to interior services are highly limited . ||