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Kuehne & Nagel in the Asia Pacific Case Solution

Solution Id Length Case Author Case Publisher
1029 926 Words (3 Pages) Edmund R. Thompson, Vanessa N. Clark University of Hong Kong : HKU048
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Freight forwarders are logistics companies primarily taking care of goods distribution throughout the world. Freight forwarders do not just provide transportation, but also the safety, security, and insurance associated with valuable goods. They also provide various packages and offerings for the users to choose from. Freight forwarders have a fleet of vehicles and aircraft as part of their portfolio to facilitate goods’ transportation for their customers. In the past twenty years, the role of freight forwarders has elevated with the advent of technology. The customers expect more timely deliveries and fewer mistakes in their orders. Moreover, improved technology and gadgets have meant that the room for error is much less today for freight forwarders. The core competencies of freight forwarders today are improved communications network, reliable and timely delivery, and regular customer contact. The companies can now exercise better inventory control due to computerized data systems. This particularly applies to multinational enterprises (MNEs) as they have a strategic outlook in their operations. Such organizations, be they freight forwarders or any other MNEs, are more receptive to change and for adapting their organizations to new technological trends. Better inventory controls are now exercised by companies such as Procter & Gamble using information technology.

Following questions are answered in this case study solution

  1. Describe the role of the freight forwarder. What activities do freight forwarders perform? Has the role changed in the past twenty years? Think about the core competencies of freight forwarders and strategic trends of MNE`s and new businesses in the era of IT innovation.

  2. How well positioned are freight forwarders to respond to the changing needs of shippers? How would you describe the competitive position of freight forwarders in relation to other emerging new business models?

  3. Describe the key features and characteristics of the Asia-Pacific supply chain market. How does it differ from Europe?

  4. What are the strengths and weaknesses of Kuehne & Nagel? What strategy do you recommend for Kuehne & Nagel Asia-Pacific? Why?

Case Analysis for Kuehne & Nagel in the Asia Pacific

How well-positioned are freight forwarders to respond to the changing needs of shippers? How would you describe the competitive position of freight forwarders in relation to other emerging new business models?

Firstly, the changing needs of shippers need to be understood. In the world of globalization, more shippers are looking for international shipments as their markets expand into various parts of the world, including the Asia-Pacific region. Moreover, the shippers now have a large number of options and companies to choose from to transport their goods and with various price options. The changing needs of shippers also relate to a more demanding attitude by the customers for such an industry. The new business models related to the shipping industry are increased specialization, the increased trend for outsourcing, and full fledge technology-oriented operations. Hence, freight forwarders must respond to the new trends in order to stay competitive in this logistics industry. The freight forwarders with a proven track record of reliable, timely, and economical shipments locally and internationally will stay competitive. A company with more pricing offers and bundled solutions to the users will also stay competitive. It must be noted that for any freight forwarder to stay competitive in the given environmental and economic conditions, more international orientation is required. This is because all large players in the freight forwarding business shall look to establish an international presence.

Describe the key features and characteristics of the Asia-Pacific supply chain market. How does it differ from Europe?

The Asia-Pacific region consists of various countries that have large populations and, more recently, a growing middle class. The market in Europe appears saturated as various producers are shifting their manufacturing capabilities to this region. This is done to acquire benefits of cheap labor and other factors of production, growing economies, large population base to target, and less stringent rules and regulations to operate.

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