Kuehne + Nagel Group for Iveco

I find this case interesting and recommend you to read as it tells how Iveco solve the problem to transport to Russia by establishing a partnership with a huge logistics company Kuehne + Nagel, which helps Iveco to enter to the Russian market.

BACKGROUND

Iveco designs, manufactures and markets a wide range of light, medium and heavy commercial vehicles, off-road trucks, city and intercity buses and coaches as well as special vehicles for applications such as fire-fighting, off-road missions, defence and civil protection.
The company which is part of the Fiat Industrial Group employs a staff of more than 26 000. It manages production sites in 11 countries throughout Europe, Asia, Africa, Oceania and Latin America, where it manufactures vehicles featuring the latest advanced technologies. 5 000 sales and service outlets in over 160 countries guarantee technical support around the globe.
Since 2001, Kuehne + Nagel has been providing various logistics services to Iveco in several countries. On a total of 300 000 square-metres of warehouse space, up to 160 000 stock-keeping units are stored per depot and well over 60 000 tons of incoming and outgoing cargo are handled annually, which result from nine million order lines ranging from small components to entire engine blocks and cabs. With the responsibility to deliver the whole aftermarket, Kuehne + Nagel is distributing the Iveco stock via overnight shipments by its Europe-wide automotive distribution network, utilizing innovative processes such as pick-by-voice technology as well as RFID and Internet-based tracking & tracing of shipments.

Here are more commercial video, but it explains what is the company Kuehne + Nagel is about.

 

That video is interesting as it explains the logistics and warehousing system in the european part.

CHALLENGE

Facing an increasing market demand and strong business growth also in Russia, Iveco in 2008 decided to entrust Kuehne + Nagel with warehousing services as well as overland transportation services in this country too. To fully cover the supply of all of Iveco’s service centres throughout Russia, both a suitably located centralized logistics centre and a powerful domestic delivery network was needed.

SOLUTION

With over 63,000 employees at more than 1000 locations in over 100 countries, the Kuehne + Nagel Group is one of the world’s leading logistics providers. In Russia, where in 1992 it was among the first international companies to establish its own organisation, today a workforce of around 800 people in 17 locations provides a complete range of transport and logistics services and operates facilities with a total warehouse space of more than 131 000 square metres.
Kuehne + Nagel’s existing warehouse in Sholokhovo, strategically located near Moscow, turned out to be best-suited for the specific needs of Iveco. In this facility, the logistics company dedicated more than 2 500 square-metres with a total of 16 500 store cells exclusively for the vehicle manufacturer’s spare parts. The storage space includes shelf zones with sections for fragile and outsized items, zones for floor storage of bulky freight (such as cabs, chasses and hoods) as well as a special entresol space with various cells for small parts. The majority of the spare parts are sent from Iveco’s distribution centre in Turin, where daily over 100 articles destined to Russia are handled. Kuehne + Nagel transports these regular shipments with four to five weekly FTL by road via Slovenia, Hungary, Slovakia and Ukraine – a journey which takes an average of 8 days.
In case of express orders, this time can be drastically reduced using airfreight mode. On behalf of Iveco, Kuehne + Nagel also takes full care of customs clearance, being particularly experienced in this respect in Russia. Except outsized cargo, which is transported in bulk, Iveco spare parts are typically shipped on pallets which are fully labelled with all necessary information about the shipment. Glass components are most complex to transport and can easily be damaged, which is why Kuehne + Nagel packages and stores these with utmost care.
In order to optimize both customs clearance and the subsequent unloading of the trucks, Kuehne + Nagel and Iveco have jointly worked out intelligent and efficient loading schedules.
Since 2012, Kuehne + Nagel is also managing the door-to-door distribution of Iveco spare parts throughout Russia. By daily truck departures from the Sholokhovo warehouse, approximately 1500 shipments are annually delivered to over 40 sales and service outlets of Iveco in the country.

RESULTS

Based on its long-standing experience as logistics provider to the international automotive industry and its powerful road transportation network, Kuehne + Nagel has helped to increase the efficiency and responsiveness of the supply chain of Iveco’s spare parts division to and throughout Russia. For Iveco, the logistics solution designed by Kuehne + Nagel has been a key leverage to further improve customer satisfaction and parts business profitability in an increasingly competitive aftersales market.

www.kuehne-nagel.com (http://www.kn-portal.com/)

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