Overland

Focused.
Transparent.
Goal-oriented.

 

 

No logistics function can ignore the effects of digitalisation. And long since, overland customers require high-performance digital solutions. This is opening up a wide range of possibilities for Kuehne + Nagel. KN FreightNet, the company’s digital quotation, booking and tracking platform, which was implemented in the overland business unit in 2017, initially in Germany, has attracted many small and medium-sized enterprises which is demonstrated by the increase in online orders over the last year. In order to keep this momentum going, KN FreightNet will be available for all European overland customers in 2018. Modernisation of the Transport Management System (TMS) has contributed to a significant improvement in productivity, particularly with large customers.

 

In a heavily segmented and regionalised market, Kuehne + Nagel achieved an excellent result in overland in 2017. Net turnover increased by 7.6 per cent, gross profit by 6.4 per cent and EBIT even improved by 75 per cent compared to the previous year. Contributors to this success were the strong growth in the groupage, full truckload and intermodal shipments and the positive order situation for the industry-specific solutions. All this was achieved in a challenging operating environment. There were significant rate increases in both core markets, Europe and USA. This was largely due to capacity bottlenecks in the European market and in Germany in particular. Driver shortages also increased, a trend that is unlikely to be reversed. These changes in the market environment mean that a price adjustment will be unavoidable in order to continue to offer customers top quality in the future.
 

“Digital sales channels and automated solutions are important in achieving operational success in the overland business. We will continue to expand our digital offering, with a particular eye on small and medium-sized enterprises.”

Stefan Paul, Overland

Kuehne + Nagel also strengthened its presence outside Europe and North America. With the commencement of its overland activities in Central America, the company is seen as attractive due to its strict compliance with GDP standards, particularly by pharma and healthcare customers. Kuehne + Nagel was very successful in providing services for customers from these industries. In 2018, Kuehne + Nagel will therefore continue to invest in its fleet of bi-temp trailers which currently consists of more than 100 throughout Europe, in order to strengthen its leading position in pharma logistics.

 

Industry-specific services are strategically important in overland with particular focus on e-commerce fulfilment solutions. Kuehne + Nagel will continue to develop high-performance digital sales channels and high levels of transparency which are crucial for overland customers.
 


Performance

in CHF million 2017 2016 2015
Turnover 3,356 3,130 2,825
Gross profit 952 895 834
EBITDA 92 70 50
EBIT 49 28 7
EBIT in % of gross profit 5.1 3.1 0.8
Number of operating staff 8,040 7,894 8,186