Release Date:
Release ID: 718

Global Supply Chain Management - Kuehne + Nagel's IT is Top Quality

Global freight forwarders have decentralized operations with dozens or hundreds of offices. A major requirement for global supply chain management is that all of those locations have to be hooked together on a single worldwide computer network. The major integrators, UPS, FedEx and DHL, have robust solutions of this type for global, small package shipments. For freight forwarders, robust IT solutions like those of the integrators are rare. Kuehne + Nagel has an integrator-like capability for larger shipments of value moving globally. Its 830 offices share a globally standardized, robust IT solution that has been carefully developed over the last 15 years.

Press Release

Kuehne + Nagel's IT solutions give it the network necessary to be No. 1 in ocean container transportation (more than 2.5 million TEUs a year), No. 4 in airfreight (725,000 tonnes) and No. 3 in contract logistics (400 locations in 55 countries).

The information system runs on AS400 hardware based in data centers in Hamburg, Germany, Hong Kong and Naugatuck, Conn. The software, CIEL 4000, a single global operational platform, is used to create documentation, plan transportation and manage events. The internet overlay for users is a suite of information value products, underscored by the KN Login web-enabled visibility suite. Interfaced to it are the transportation management system (TMS), warehouse management system (WMS), electronic data interchange (EDI) and other capabilities.

In the United States, Kuehne + Nagel uses Oracle (G-Log) TM extensively in coordination with its contract logistics (VAWD) operations. In Europe, i2 is used for contract logistics and the Rail & Road Logistics division. Rail & Road has expanded significantly in the last two years in competition with Schenker/Railon, DFS and others.

5,200 Seafreight division personnel rely on the CIEL 4000 software to manage its ocean container shipments.1 There are extensive paperwork and filing requirements for non-document international shipments (invoice, bill of lading, advanced manifest, etc.) plus a series of cargo control events (handoffs) for any shipment. In todayís logistics environment, it is as important to move information as it is to move cargo, thereby creating a dual workload responsibility for all operational staff around the globe. ISO quality systems and protocols underscore all Kuehne + Nagel operations to provide uniformity and standardized productivity. The program is QSHE (Quality, Safety, Health, Environment and Security).

A useful feature of the CIEL system is that photo imaging of all documents works very well. For any shipment, an invoice, bill of lading or other paper document can be retrieved and reviewed. Kuehne + Nagel is ahead of its major competitors with this capability.

For every shipment, Kuehne + Nagelís information value products provide visibility from booking through delivery. Planned and actual events are time defined and exceptions are quickly and systematically identifiable. Reporting of events, for internal staff and clients alike, can be customized by each user with a customized dashboard. In addition, Kuehne + Nagel has deployed a robust global reporting platform, Business Objectsô, which pools all data generated from the globally standardized operating applications in order to provide flexible and scalable reporting solutions.

These systems afford Kuehne + Nagel the ability to act as an IATA certified, Cargo 2000 Phase II provider for all stations around the globe. Cargo 2000 Phase II entails the door-to-door monitoring of heavy weight shipments against predefined route maps which are systematically maintained, monitored and updated. The route maps serve as the baseline which all events of a shipment are measured against. Kuehne + Nagel is the only airfreight forwarder with this process for their entire network. Kuehne + Nagelís airfreight operation handles about 30,000 shipments per week.

Unique to Kuehne + Nagel, customs brokerage operations are also integrated into the globally standardized applications wherever possible. For example, in the U.S. brokerage operations are conducted through 41 offices by 250 personnel within the CIEL system and its customs brokerage subset. One-third of Kuehne + Nagel brokerage staff members hold individual licenses. Over 300,000 entries were filed with the bureau of U.S. Customs and Border Protection (CBP) in 2006. Real time Automated Broker Interface results are online in KN Login. Kuehne + Nagel can handle and clear shipments centrally through Chicago or the closest CBP office.

Kuehne + Nagel handles post entry work such as Customs Form 28/29. Periodic duty payments, foreign trade zone entries, insurance and carnets for trade shows are routinely handled. Remote location filing, electronic invoice processing, automated classification, and electronic 7501 data migration are standard processes of advanced entry services.

In conjunction with the organizationís ISO 9001 protocols, Kuehne + Nagel has developed a standard operating procedure for quality brokerage management. Kuehne + Nagel is C-TPAT certified and validated.

A useful feature for Kuehne + Nagel customers is its ability to "burn" a CD of entry documents indexed by entry number. Also, scanned documents can be sent as PDF files to customersí secured servers. This assists Kuehne + Nagelís partners in compliance and regulatory matters.


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