& Nagel worldwide logistics group has announced that Nortel
Networks, global networking and communications solutions group,
has signed an agreement to divest its global outbound logistics
operations management business to Kuehne & Nagel.
As lead logistics provider,
Kuehne & Nagel will be exclusively responsible for managing
the performance of multiple Nortel Networks logistics services
providers around the world. K&N will be supporting Nortel
Networks' ongoing efforts to build on its advanced supply chain
and optimize service to global customers. As part of K&N's
supply chain management strategy, a new legal entity has been
established to manage such complex global lead logistics projects.
Richard Lowe, VP for
Supply Chain Operations at Nortel Networks, said: "We recognized
that leveraging Kuehne & Nagel's excellence in logistics,
investment in its IT infrastructure and global presence could
further streamline the management of our logistics. Divesting
the global logistics operations management to a best-in-class
supplier like Kuehne & Nagel enables us to focus our investments
and resources on developing and strengthening core competencies
that provide differentiated value to our customers."
Nortel Networks' selection
of the Kuehne & Nagel Group as its lead logistics provider
has arisen from a successful seven-year relationship. As part
of the agreement, approximately 95 Nortel Networks employees,
based in 18 countries, are expected to join Kuehne & Nagel.
This group will work closely with Nortel Networks to plan and
execute its logistics requirements. Kuehne & Nagel will manage
service providers who deliver the full spectrum of logistics services,
including import and export processes, inventory management, warehousing
and distribution, and transportation management.
During the past several
years, Kuehne & Nagel has built the infrastructure necessary
to provide integrated global logistics services, and to manage
and optimize complex logistics chains. Its strategic alliance
with SembCorp Logistics, Singapore, and acquisition of USCO Logistics
in the USA, combined with focused investment in supply chain management
technology, allows Kuehne & Nagel to manage the rapidly evolving
needs of global, highly complex supply chains.
Reinhard Lange, COO,
Kuehne & Nagel International AG, said, "We are pleased
to support Nortel Networks in its continuing efforts to enhance
its advanced supply chain, a very important competitive advantage.
Based on Kuehne & Nagel's familiarity with Nortel Networks
business and due to our comprehensive logistics expertise, we
expect to generate further process improvements and cost efficiencies
to assist Nortel Networks in optimizing logistics costs."