Gianfranco Sgro, member of the Managing Board of Kuehne + Nagel International AG, responsible for Contract Logistics: “Contract logistics for the automotive industry is a strategic focus area for Kuehne + Nagel globally and especially in China, the biggest automotive market. The joint venture confirms Kuehne + Nagel’s position as a leading international provider of automotive logistics in China. Following the recent launch of our digital platform for e-fulfilment centres in China this investment further strengthens our presence in Asia.“

In recent years, Kuehne + Nagel has been developing a strong automotive footprint in the country by organically expanding the partnership with premium European brands. The company will now enlarge this footprint by almost seventy per cent serving major Chinese brands and Tier 1 suppliers.

Jiang Jun, Sincero’s Chairman of the Board: “Establishing the joint venture with Kuehne + Nagel is a strategic move to comply with the irreversible globalisation trend of economics and competitive landscape of the automobile logistics industry, thereby to complement each other's strength in global network and local expertise.”

Both parties agreed not to disclose the purchase price. The joint venture is subject to customary closing conditions and to clearance by the competent merger control authorities.

The long lasting partnership between the BMW Group and Kuehne + Nagel can now count on 14 major locations around the globe with a consolidated presence in China.

Gianfranco Sgro, member of the Managing Board of Kuehne + Nagel International AG, responsible for Contract Logistics: “Focusing on dynamic industries such as automotive is part of our 2022 roadmap. It is our clear goal to further increase our automotive footprint globally. Therefore, we continuously develop innovative solutions for the aftersales market. The extension of our global services for BMW Group is an important milestone. Partnering with BMW always means to push innovation to the next level in operations, data management, visibility and transparency and end customer centricity. We are delighted to provide our competence to our longstanding customer BMW Group at two more sites in Europe and to expand our services for BMW Brilliance Automotive in China.”

With a size of 70.000 sqm, the RDC in Kleinaitingen is one of the largest distribution centers Kuehne + Nagel manages for the BMW Group. It serves more than 300 dealers all over Southern Germany and Western Austria. Kuehne + Nagel is responsible for physically receiving and handling of incoming goods, storage, picking dealer’s orders, packaging, and shipping. An assortment of around 82.000 articles is stored, with around 23.000 daily outbound deliveries handled.

With initially 30.900 sqm and an expansion option of 10.700 sqm, the new warehouse in Slubice substitutes the existing RDC in Poland with a size of 15.000 sqm. Required due to the strong growth especially of the Polish market, it serves about 125 dealers in North-Eastern Germany and about 35 in Poland.

The RDC dealer distribution by road and air from Beijing and Shanghai will provide daily spare parts deliveries to 340 dealers in North,Central and Eastern China. Shipment data is guaranteed through Kuehne + Nagel’s Oracle transportation management system.

Bosch gehört zu den führenden Zulieferern der Automobilindustrie. Das Technologie- und Dienstleistungsunternehmen führt Standorte des Unternehmensbereichs Mobility Solutions in einem gemeinsamen Zentrallager in Tamm (Baden-Württemberg) zusammen. Zusätzlich entsteht in direkter Nachbarschaft eine weitere Halle als Logistik- und Vertriebsstandort mit Schulungsräumlichkeiten und Showroom für Bosch Thermotechnik. Mit dem Betrieb beider Einheiten hat Bosch Kühne + Nagel beauftragt.

„Wir freuen uns, die weltweite Zusammenarbeit mit Bosch weiter ausbauen zu können, insbesondere weil dieser Auftrag innerhalb unserer Zusammenarbeit der vom Umfang her bisher größte ist. Wir betrachten dies als besondere Bestätigung der Strategie, unseren Kunden auf ihre Bedürfnisse zugeschnittene industriespezifische Lösungen anzubieten. Insbesondere die Kontraktlogistik für die Automobilindustrie ist global ein wichtiges strategisches Geschäftsfeld von Kühne + Nagel“, beschreibt Dr. Hansjörg Rodi, Vorsitzender der Geschäftsleitung von Kühne + Nagel Deutschland.

Das Gebäude für Bosch Thermotechnik wird auf einer Nutzfläche von 13.000 m² als lokales Distributionszentrum für die Marke Buderus dienen. Dieser Bereich soll bereits im zweiten Quartal 2018 den Betrieb aufnehmen. Der Neubau für den Unternehmensbereich Mobility Solutions verfügt nach Fertigstellung über eine Nutzfläche ca. 22.000 m². Die bisherigen sechs Standorte, die Bosch in Tamm konsolidiert, werden nacheinander verlagert, sodass der Hochlauf stufenweise bis Ende 2019 erfolgen wird. Von Tamm aus werden die weltweite Belieferung von Automotive-Kunden, die Versorgung von Bosch-Werken in Deutschland und die Packstoffversorgung für eines der Werke erfolgen. Zusätzlich übernimmt das Lager Crossdock-Funktionen für die Distribution in Deutschland und europaweit. In den beiden Hallen in Tamm entstehen ca. 180 neue Arbeitsplätze.

Federal-Mogul Motorparts, a division of Federal-Mogul LLC, has agreed to a multi-year contract with Kuehne + Nagel to operate its new automotive replacement parts distribution center near Budapest, Hungary. The opening ceremony took place in the presence of Hungarian Prime Minister Viktor Orbán.

Located in Páty, 22 kilometers west of Budapest, the state-of-the art warehouse has a 23,000 sqm storage area and offers a full range of inventories for its target markets with well-known brands like as Ferodo^®, Jurid^®, Champion^®, MOOG^®, Payen^®, Goetze^® and BERU^®*. The facility will employ more than 160 people and has the potential to be expanded by at least 33 percent to support volume growth or changing trading profiles.

This new built-to-suit logistics hub is about to be fully operational, following a successful test run. The logistics complex will serve customers in Southern, Eastern and Central Europe in conjunction with the company’s new distribution center in Willebroek, Belgium; the Páty facility will also serve customers in Africa and other markets adjacent to the EU. This investment reflects Federal-Mogul Motorparts’ ongoing strategy to optimize the performance of its supply chain and provide the world-class delivery performance its customers expect.

“The opening of our new distribution center in Hungary is the next logical step in our effort to better serve customers, including our long-term goal of being best-in-class in order-to-delivery time,” explained Andrew Sexton, President, EMEA Aftermarket and Regional President, EMEA, Federal-Mogul Motorparts. “Together with our new distribution center in Willebroek, our regional warehouses and improved supply chain capabilities, we believe this new facility positions Federal-Mogul Motorparts to be the first choice for customers in our product categories.”

Under the terms of the contract, Kuehne + Nagel will operate the facility, providing contract logistics services, such as warehouse services, receipt of goods and pick and pack operations, plus value-added services including labelling and kitting in customer-specific product configurations.

“We are very pleased to enter into a partnership with Federal-Mogul Motorparts in Hungary,” said Gianfranco Sgro, member of the Managing Board of Kuehne + Nagel International AG, responsible for Contract Logistics. “It proves our capabilities to specifically address the logistics needs of globally operating companies and underlines our expertise to deliver solutions that create day-to-day efficiency benefits and quality. This new contract is a key strategic win for Kuehne + Nagel in Hungary and reflects our business strategy to continuously strengthen our presence in automotive replacement parts logistics.”

Government regulations to meet CO₂ emission targets and changing consumer behaviour encouraged by increased battery performance are driving up the worldwide production of BEV (battery electric vehicles). It is assumed that in the next five years the electric car stock will triple. This in turn will boost the demand for transportation and storage of the key component lithium-ion battery.

Large-format lithium batteries as used for electric vehicles require a high level of handling detail and expertise to comply with international dangerous goods regulations and restrictions. Kuehne + Nagel addresses this complexity with its certified end-to-end solution KN BatteryChain, specifically designed to offer safe, reliable and efficient mass transportation as well as storage of lithium cells and batteries.

Dr. Detlef Trefzger, CEO Kuehne + Nagel International AG, commented: "KN BatteryChain demonstrates Kuehne + Nagel’s leading role in global automotive logistics and our capability to anticipate industry trends from which we derive industry-specific solutions in time. I am convinced that this innovative solution developed in close cooperation with our customers and partners will set industry standards for the supply chain along the entire battery life cycle and support our automotive customers and the aftermarket to grow their businesses.”

KN BatteryChain is fully compliant with the respective international dangerous goods regulations and certified against ISO9001 and the leading automotive standard ISO16949. The solution spans from transportation by sea, air, rail and road from the manufacturer to the assembly line to warehousing for production logistics and aftermarkets as well as returns of used and faulty batteries from dealers.

Value added services include KN ControlTower support providing end-to-end logistics management services in order to simplify supply chain complexity, real time monitoring of physical parameters and location, specialised packaging, labelling, testing and inspecting, battery recycling, customs brokerage and environmental performance measuring.

KN BatteryChain is available for automotive, high-tech and industrial customers, whenever lithium battery logistics is required.

The new contract leverages a sophisticated IT solution to address VWED’s requirements for improved efficiency of operations. The solution includes the use of dynamic planning to ensure cost optimisation while managing multi-leg journeys, line hauls and reverse movement. To provide more accurate real-time tracking of truck movements, Kuehne + Nagel leveraged China’s WeChat technology: Drivers use a mobile phone to scan a custom QR code to indicate a change in shipment status, automatically triggering an update in the order management system. Utilising the WeChat platform avoids the need to install additional apps or set-up additional hardware, allowing sub-contracted truckers to also utilise the same system. This, combined with an overarching operational control tower approach, ensures full transparency of the entire operation.

Zhiyu Wang, Logistic Manager, VWED said: “Kuehne + Nagel took a complex set of demands and transformed it into a seemingly simple logistics solution. Kuehne + Nagel’s solution has delivered cost savings, efficiency and achieved full supply chain visibility for VWED.“

Pierre Li, Senior Vice-President Contract Logistics, Kuehne + Nagel North Asia said: “VWED is one of the largest international players in the automotive market in China and we are pleased to extend this partnerhsip. This new contract showcases Kuehne + Nagel’s strength in the automotive parts industry in China bringing together the synergies of a tailored logistics solution supported by IT systems to provide full supply chain visibility.”

Kuehne + Nagel’s contract logistics team engineered a multi-year innovative production logistics operations plan utilizing a modern logistics center that will include vision picking smart glasses and automated guided vehicles (AGVs). Comprehensive services will include goods receiving, inventory management and just-in-time picking and sequencing for delivery to the car makers’ assembly line and production facility.

For the implementation, Kuehne + Nagel is utilizing its successful customer transition and integration model, which includes multiple disciplinary project management and dedicated resources from the logistics provider’s national, regional and corporate organizations. In order to ensure reduce inventory, increase quality, and reduce total costs for each unit built, Kuehne + Nagel will use its KN Production System (KNPS), an in-house developed structured methodology based on lean supply chain principles.

“We are delighted to expand our 15-year global relationship with Daimler AG and Mercedes-Benz,” said Bob Mihok, President and CEO, Kuehne + Nagel North America. “Our supply chain services in the new Charleston, South Carolina Sprinter van plant will improve assembly line productivity and enhance vehicle production. We look forward to adding value to our customer’s supply chain for many years to come.”

The European Aftermarket is of very high importance. Jaguar Land Rover has consolidated its supply chain into a robust logistics setup with innovative processes, including an upgraded Warehouse Management System (WMS). This supply chain will support over 400 Jaguar Land Rover retailers across Continental Europe.

Dominic Edmonds, Senior Vice President Contract Logistics Western Europe for Kuehne + Nagel says: “This new business is of very high importance to Kuehne + Nagel, both from a regional and global perspective as it enables us to partner with Jaguar Land Rover and to enlarge our footprint in one of our core focus services Spare Parts Logistics. We are truly looking forward to supporting Jaguar Land Rover in this supply chain transformation. We understand Jaguar Land Rover's selection of Kuehne + Nagel as a demonstration of confidence in delivery of a dependable, personalized and highly professional technical solution together with a comprehensive implementation and transition plan.”