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Kuehne & Nagel to handle Nortel Networks logistics

Kuehne & 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."