Off the starting blocks: Kuehne + Nagel and On Running mark ground-breaking for new Luxembourg hub

Kuehne + Nagel's new Luxembourg contract logistics centre to become the European distribution hub for Swiss performance running shoes manufacturer On

The state-of-the-art facility will be equipped for e-commerce solutions across the value chain

Contern / LUX, September 4, 2019 ? Kuehne + Nagel held the ground-breaking ceremony of a new contract logistics centre in Luxembourg. The event also marked the ten year contract extension between Kuehne + Nagel and On AG, a cooperation that started in 2010.

The new contract logistics centre, due to open in the second half of 2020, will serve On as its advanced European distribution centre for both off- and online channels and will play an important role in the rapid international expansion of the Swiss company specialized in performance running shoes.

"In view of the increasing demand for pan-European e-fulfillment services for dynamically growing companies like On, Kuehne + Nagel is positioning itself as an integrated logistics provider in Europe. Kuehne + Nagel's innovative and digital solutions are key to meet this increasing demand," says Tobias Jerschke, Managing Director of Kuehne + Nagel BeLux.

Marc Maurer, COO of On AG, adds: "On is gaining more fans faster than ever before. On's supply chain capabilities are essential to the success of the company and we are happy to lay the foundation for future growth. Kuehne + Nagel's new logistics centre in Luxembourg will play an important role for our European demand, so that we can continue to deliver happiness to all our B2B partners and B2C customers."

The new state-of-the-art facility is ideally located in Luxembourg, within close proximity to highways and airports which enables fast access to all European destinations. With 20 loading bays, the total warehouse capacity built will be 20,000 m? and is extendable up to 30,000 m?. An advanced three-level storage and handling area will support the picking, packing and high-speed sorting of the shoes.

Once completed, Kuehne + Nagel will leverage the new hub to offer even more customers its proven end-to-end expertise, especially in the area of e-commerce. The main focus lies on consumer and industrial goods as well as spare parts.

Panalpina It pays to help before disaster strikes

With the help of DSV, Danish Red Cross is investing in and preparing aid for vulnerable communities before - and not after - they are hit by weather-related disasters. This saves both lives and money.

With the help of DSV, Danish Red Cross is investing in and preparing aid for vulnerable communities before - and not after - they are hit by weather-related disasters. This saves both lives and money.

"By investing far more in preparedness before a disaster happens ? rather than after - we can save both lives and money", says Anne Mette Meyer, humanitarian adviser to the Danish Red Cross.

In the alert system, warnings, or triggers, are set up to match different scenarios that pose a risk to a community. These triggers are then matched with local hazard limits. For example, the alert system has a trigger for when water levels rise above a certain point in a river. The data of that trigger is then compared to weather forecasts to check the risk of incoming heavy rain.

If a trigger is activated, the local authorities and Red Cross volunteers start preparing the affected communities for the potential disaster. These preparations are based on emergency response plans, which are prepared in advance for the specific scenario.

This work is only possible because the funding for the disaster response is secured in advance with the Forecast-based Financing program.

Gaining global support

In Denmark, the Red Cross is currently the only humanitarian organisation to use Forecast-based Financing to anticipate disasters and to raise funding for pre-disaster efforts. DSV is providing support to help them set up Forecast-based Financing programs in Mali, Sudan, Zimbabwe, Malawi and Nepal ? as first steps.

But on a global scale, the efforts for Forecast-based Financing and working to prevent disasters is gaining support. For example, the German state supported Forecast-based Financing efforts with 10 million euros in both 2016 and 2018.

The funding will have an effect

The UN estimates that for every dollar spent on preventing disasters, seven dollars would have been needed for disaster relief in the aftermath of the disaster. However, Anne Mette Meyer says it is a challenge to raise funding for something that has not yet happened:

“You can't 'count corpses' or show violent pictures, so to speak. However, with a funding from partners such as DSV to secure a pre-disaster effort we will not only be able to reduce devastation and death but also spend less funding on rebuilding communities afterwards. Peoples’ livelihood has been secured in advance.”

There is a risk of 'false alarm' to Forecast-based Financing, but Anne Mette Meyer clearly believes the benefits outweigh this risk:

“Of course, evacuating people for no reason is not good. Still, much of the preventive effort is about awareness of for example hygiene and waterborne illnesses. Therefore, whether the disaster happens or not, the effort and the funding will have an effect”, she concludes.

Forecast-based Financing increased resilience in Uganda

The positive effect and benefits of Red Cross’ Forecast-based Financing efforts were tested in Northern Uganda in 2015:

Weather forecasts predicted extensive rainfall and flooding. As a response, Red Cross volunteers distributed water purification tablets, clean water, and hand soap to the most vulnerable communities in the potential flooding area. The volunteers also taught communities about safe hygiene and how to prevent waterborne illnesses such as life-threatening diarrhea. When the rain began, the communities in the most vulnerable areas had already received help and were better equipped to resist the flooding.

The International Day of Charity happens just once a year, but DSV’s support for humanitarian aid continues throughout the year. In addition to Denmark, several other DSV locations are working with the Red Cross | Red Crescent on activities ranging from first aid training to fundraisers and volunteering for different projects. For more details, see the DSV and Red Cross pages.

First joint shipments of DSV Panalpina

The DSV Panalpina engine is warming up as the new company moves the first shipments through its combined network and the Charter Network in particular.

Aircraft engines usually fly from A to B attached to the wings of an airplane. Not in this case: On Thursday, the US Aerospace team of DSV flew an engine, or more precisely, engine parts, on the “Spirit of Panalpina” from Huntsville to Luxembourg. From there, the engine parts were trucked to Airbus’ production plant in Toulouse, France. It was the first time the new company served an existing customer through its combined network and the Charter Network in particular.

The engine parts were so called thrust reversers produced by an aerospace manufacturer. They go into aircraft engines and the engines are mounted onto Airbus A320neo aircraft. DSV has been doing business with both the manufacturer of the reversers and the engine producer for more than twenty years.

And since 1990 Panalpina has been the only major freight forwarding company to offer its Charter Network for air freight. Now it can act as an in-house carrier for the whole DSV Panalpina network and as a unique asset that differentiates the company from all other large freight forwarders. The network uses leased and chartered aircraft to guarantee capacity, and is structured to handle express and special shipments. One of the biggest benefits of the network is control. Not only does the company control aircraft on specific routes, it designs and oversees processes on the ground as well, ensuring the best possible control from door-to-door.

There will be many more opportunities to move aircraft parts and engines. For the entire year 2018, DSV Aerospace shipped 2,300 aircraft engines.

The next shipment is due coming Sunday: An engine that was overhauled in Hannover, Germany, will be trucked to Luxembourg and flown the opposite direction across the Atlantic to Mexico via Huntsville.

The DSV Panalpina engine is only just warming up.

DSV Panalpina logistics facility in Brazil wins prestigious Shingo Award for operational excellence

On August 27, 2019, the DSV Panalpina Logistics and Manufacturing facility in Sorocaba, near Sao Paulo, Brazil was awarded the Shingo “Bronze Medallion” and thus joins a distinguished group of recipients that have demonstrated an outstanding commitment to achieving operational excellence.

Exemplary leadership, process orientation, systematic thinking, and value creation

The facility topped the scores of the Shingo examiners who focus on the degree to which the Shingo Model are evident in the behaviour of every employee. They also observe the degree to which leaders focus on principles and culture, and managers focus on aligning systems to drive ideal behaviors at all levels. The model is based on four dimensions:

Cultural Enablers (e.g. leadership with humility and respect)
Continuous Improvement (e.g. scientific thinking and focus on process)
Enterprise Alignment (e.g. constancy of purpose and systematic thinking)
Results (e.g. value creation for the customer)

Operational excellence: engrained in systems and embraced by employees

The achievement was a joint effort of the teams in Sorocaba and abroad and it built on the company’s long lasting experience with its operational excellence program LogEx. “We can be extremely proud of this success. We have created a culture where operational excellence is engrained in our systems and embraced by our employees,” says Mike Wilson, who heads DSV Panalpina’s solutions for Latin America as well as Logistics and Manufacturing Services (LMS). “Operational excellence is not what we say but what we do. We strive to add value for our customers and continuously challenge ourselves and our methods in order to find ever more efficient ways to run our operations.”

Pioneers of Logistics Manufacturing Services (LMS)

The Sorocaba facility has been part of the company’s Brazilian logistics set-up since 2011. In 2013, it began adding Logistics Manufacturing Services (LMS) to its operations for a large telecoms company. It was one of the first times that a telecoms company successfully outsourced manufacturing to a third-party logistics provider (3PL). In Sorocaba, DSV Panalpina manages the assembly of semi-knocked down units for base stations. The company not only executes the final assembly, but takes full ownership of the whole process ? from planning to quality control. Currently the site employs about 160 people.

Air France-KLM and Kuehne + Nagel create first direct system-to-system connection in the industry

Seamless connectivity and enhanced reliability via API integration

Step towards the digitalisation of the airfreight industry

Schindellegi / CH, Amsterdam / NL, August 29, 2019 ? Kuehne + Nagel and Air France KLM Martinair Cargo (AFKLMP Cargo), two leading players of the airfreight industry, have joined forces to improve integration of their electronic booking processes. In a proof of concept that was recently brought to conclusion, the two companies enabled total host-to-host connection through application programming interface (API) allowing for a system-based, integrated and interactive match between available capacity and demand.

It is the first time that an airfreight carrier and a global logistics provider create a direct system-to-system connection that transforms manual quotation and capacity booking process into a digital automated solution, fostering collaborative relationships and next-generation supply chain practice. Customers will benefit from a seamless experience with both companies' full digital offering, including ad-hoc quotations, capacity availability inquiries, dynamic pricing and real-time e-booking functionalities. Following the successful proof of concept, both companies have agreed to further develop the solution and to start the roll-out in Europe and South Asia Pacific.

Yngve Ruud, Member of the Managing Board of Kuehne + Nagel, responsible for airfreight, says: The successful conclusion of our proof of concept with Air France KLM Martinair Cargo is a further step forward in eTouch, Kuehne + Nagel's digital transformation process and initiative to offer a seamless digital customer journey. Thanks to the new interface, we increase speed, accuracy and efficiency ? to the benefit of our airfreight customers all over the globe."

Marcel de Nooijer, EVP Air France-KLM Cargo and managing director of Martinair, adds: "At Air France KLM Martinair Cargo, we keep innovating to provide connected and tailored solutions to our business customers around the world. In this context, enriching Kuehne + Nagel's in-house systems with our digital services is another step towards the digitization of our industry."

Panalpina Urban mobility: first aerial vehicle prototypes for aerospace group FACC transported

Global freight forwarding and logistics company DSV Panalpina is transporting some futuristic freight ? autonomous aerial vehicles (AAVs) for moving people or goods efficiently in cities. Under a partnership between Austrian aerospace group FACC and Chinese technology company EHang, specialists transported the first prototypes by air freight, also taking care of customs brokerage and last-mile delivery.

Flying to work could become a reality in the next years, thanks to autonomous aerial vehicles (AAVs) or air taxis that help relieve traffic congestion in cities by using airspace as a “third dimension” for transport in urban areas.

AAVs are environmentally friendly: they are electric-driven using high-performance batteries with short charging times. EHang, the Chinese technology company specializing in air mobility that built the world’s first electric AAV, offers one-seat and two-seat models. Weighing between 300 and 360 kg, these can take maximum payloads between 440 and 620 kg, and reach speeds of up to 130 km/h.

AAVs need minimal space for take-off and landing. Besides transporting people or goods, these auto-pilot vehicles can be used to fly emergency goods or to perform high-risk operations in the event of environmental catastrophes. Paired with fast computers and big data, they promise a smart and viable solution for low-airspace, short-distance urban mobility within and between cities.

EHang entered into a strategic partnership at the end of 2018 with the leading Austrian aerospace group FACC, under which the AAVs will be optimized and made ready for serial production. A total of 300 aerial vehicles will be produced until the end of 2020 at FACC. DSV Panalpina has been tasked with transporting the first prototypes by air freight, including customs brokerage and last-mile delivery.

The business relations of former Panalpina with FACC go back to 15+ years. The first AAV prototype was transported in October 2018 and the freight forwarder’s teams have been helping to move them from Hong Kong airport to Linz, Austria.

The outlook for air mobility is promising. As the population of the world’s cities keeps growing, it is projected that 5.2 billion people will live in urban regions by 2050, about one billion more than today. The proportion of urban dwellers will then be 68 percent of the world’s population, meaning that people will be affected by space constraints and traffic congestion on the roads each day.

Taking to the air and flying to work could be the next smart and sustainable solution for urban mobility. Demand for aerial vehicles is expected to soar to EUR 32 billion over the next decade, according to the Aerospace & Defense Radar report by consultancy firm Roland Berger.