Sunday, March 3, 2013

Pedigree Freight Forwarding and Logistics Group Rationalise in the name of Efficiency

Major Realignment of Divisions to Suit Modern Market Conditions
Shipping News Feature

WORLDWIDE – Swiss headquartered freight forwarding and logistics group Kuehne + Nagel, one of the oldest established names in the trade and which employs over 63,000 staff in over one hundred countries, is undergoing some drastic changes to its regional managerial structure which it says are merely a precursor to further measures designed to realign the business in the cause of efficiency.

K+N says it is to initiate a comprehensive programme of changes to optimise each geographical area’s potential savings and this first step sees the merging of its current operational units designated as ‘Central Europe’, ‘North West Europe’ and ‘Southwest Europe’ into one single region to be known henceforth as ‘West Europe with the regional management and headquarters for this division based in Hamburg, the heart of the region where the group was managed from over a century ago after its founding in Bremen in 1890.

The Eastern European region will remain as is with management from Vienna whilst the two units Middle East / Central Asia and Africa will consolidate into one larger ‘Middle East/Africa’ division managed from Dubai. The growth of the economies in Asia sees more importance being given there and there will be two distinct areas of operation. From the 1st July 2013 there will be a ‘North Asia’ section headquartered in Shanghai which will assume responsibility for group activities throughout China, Hong Kong, Taiwan and Macau. Meanwhile the ‘South Asia’ consolidation will be led from Singapore and responsible for South Korean and Japanese clients.

In the Americas, both North and South, nothing will change from the current management situation and CEO of Kuehne + Nagel International AG, Reinhard Lange, was quick to stress the perceived advantages which have driven the changes, saying:

"Our new regional structure shortens decision-making processes on the one hand and allows on the other to respond more quickly to new market conditions and opportunities.”

His view was supported by K+N Chairman Karl Gernandt who reiterated that the realignment was part of a comprehensive policy to generate efficiency increases whilst streamlining and optimising the group’s Human Resources and Finance divisions.