Contract logistics

End-to-end.
Scalable.
Integrated.

 

 

The market for contract logistics services is substantially transforming due to the increase of e-commerce and ongoing digitalisation. Customers from industries including automotive, e-commerce, high-tech and aerospace, as well as pharma and healthcare with their demanding logistics process requirements, expect customised and scalable logistics solutions. With its specialised end-to-end solutions, data-driven processes and real-time information across entire supply chains, Kuehne + Nagel is meeting these expectations and establishing itself as a long-term, reliable contract logistics partner. These initiatives are enabling its customers to achieve efficiency gains and the company to improve its own productivity. Contract logistics continued to see dynamic growth in 2017. New record highs were reached on net turnover, gross profit and EBIT. Both contract extensions and business wins contributed to this successful development. China and South-East Asia operations achieved double-digit growth. Many customers in these regions are looking for experienced and professional logistics partners able to support their market entry strategies and increasingly outsource their logistics functions


Kuehne + Nagel has over 10.6 million square metres of warehousing and logistics space under management worldwide, an increase of around 600,000 square metres compared with the previous year. A huge number of new contract logistics projects were implemented in 2017. New technologies such as collaborative robots and pick-by-vision in many locations contribute to further efficiency increases generating competitive advantages for customers

 

“In a rapidly changing market, we are using new technologies and digitalisation as key tools to create long-term competitive edges for our customers as well as to continuously improve productivity.”

Gianfranco Sgro, Contract Logistics

For certain industries, technology-driven and scalable solutions are of particular importance. Kuehne + Nagel has managed to win new customers worldwide by deploying solutions of this kind, particularly in the pharma and healthcare industry. The company will continue to invest in this growth market. Two leading pharma logistics companies were taken over in Italy and Turkey in 2017. This will allow Kuehne + Nagel to generate additional growth in these important pharma markets. Customised and specific solutions in e-commerce fulfilment for global retailers and high-profile brand internet shops led to new business and double-digit growth


Having access to accurate real-time information about shipments is of particular importance for global customers. With innovative end-to-end solutions managed from logistics control towers and implemented in cooperation with other Kuehne + Nagel business units, the company is strengthening its leading position in integrated logistics. Two control towers have recently been put in service in Shanghai, China, and the Polish city of Wroclaw, expanding the global network. This one-stop approach increases transparency and efficiency in the supply chain and optimises information flows between the parties.


Performance

in CHF million 2017 2016 2015
Turnover 5,300 4,939 4,705
Gross profit 3,619 3,275 3,132
EBITDA 288 260 220
EBIT 161 147 119
EBIT in % of gross profit 4.4 4.5 3.8
Warehouse space in million sqm 10.6 10.0 9.6
Number of operating staff 39,957 35,866 33,925