01

Managing Service Parts Logistics forMercedes-Benz

Kuehne + Nagel offers a full range of logistics services through its dedicated warehouse, leveraging the company’s extensive network in China

automotive industry. We look forward tofurther deepening our partnership asMercedes-Benz expands its business inChina,” said Andy Weber, ManagingDirector of Kuehne & Nagel (Asia Pacific)Management Ltd.

Leveraging the extensive logistics networkof Kuehne + Nagel in China, which spans32 locations in 21 cities and is supported bymore than 2 ,100 spec ia l i s t s , c losemonitoring of shipments from northern tosouthern China becomes readily feasible andefficient.

Key performance indicators (KPIs) includeon-time pick-up, on-time delivery andshipping accuracy. Since operations wentlive in October 2006, Kuehne + Nagel hasbeen able to consistently meet and exceedthe KPIs set. This is a significant milestonefor distribution in China, especiallyconsidering the long distances betweendifferent provinces.

Kuehne + Nagel China has recently openeda dedicated warehouse with an availablespace of 4,500 square meters in Guangzhou.The new facility serves as the regionaldistribution centre for Mercedes-Benz, oneof the world’s leading automotivemanufacturers.

From this strategic location, Kuehne + Nagelis offering Mercedes-Benz a full range oflogistics services, especially in managing spareparts distribution around the South Chinaregion.

Based on the growth objectives of Mercedes-Benz in China, Kuehne + Nagel hasdeveloped a flexible and reliable industry-specific solution. In addition to warehousingmore than 10,000 articles, the logisticsprovider is responsible for customs clearancem a n a g e m e n t , d o m e s t i c i n b o u n dtransportation and outbound distributionservices (overland, air and express delivery)to Mercedes-Benz dealers in Guangdong,Guangxi, Hainan, Sichuan, Chongqing,Yunnan, Hunnan, Hubei and other locations.

“We are an extremely customer-focusedorganisation, and the timely delivery ofspare parts to customers is crucial to ourongoing success. The regional distribution

centre in Guangzhou was established withthe very aim to better distribute spare partscloser to the source of demand in SouthChina. With Kuehne + Nagel, we areconfident that our spare parts logistics arebeing handled by a competent partner withthe necessary capabilities,” said RogerGlienicke, General Manager, After Sales ofMercedes-Benz (China) Limited.

“The new contract endorses flexibleKuehne + Nagel offerings tailored to the

Ribbon cutting at the inauguration ceremony of Mercedes-Benz’s new regional distribution centre in Guangzhou

ASIA PACIFIC ISSUE 1/2007

02

Hanoi BranchMoves to NewLocation

Kuehne + Nagel in Hanoi recently moved into

new, larger premises in a bid to meet rising

demand from customers in the city. The new

office is conveniently located at an international

business center, near the famous Hoan Kiem

Lake, in the heart of Hanoi. The further

expansion of the Hanoi branch represents an

important step for Kuehne + Nagel’s continued

development in the Vietnamese market,

comprising three locations with approximately

85 employees.

Vietnam’s TopPerformer

Kuehne + Nagel Vietnam has been named

the number one performer by Lufthansa

Cargo in 2006. At a year-end party and sales

award presentation ceremony, Thomas Eggert,

Lufthansa Cargo - Regional Director of

Southeast Asia & Australia, presented a plaque

to Bernd Baunack, National Manager of

Kuehne + Nagel Vietnam, recognising the

highest sales volume and turnover to Europe

recorded, as well as the long-term partnership

forged with the logistics provider.Black & Decker and Kuehne + Nagel executive teams

“We are delighted to be recognised as the

preferred logistics provider for Black &

Decker. The new site marks a further step

in the expansion of our logistics network in

Thailand, enhancing our ability to provide

efficient logistics services from a single

source,” said Jens Drewes, Managing

Director of Kuehne + Nagel Ltd.

Kuehne + Nagel has been operating in the

Thai market since 1966. With more than

200 employees at four locations, the

company has a strong market position and

ranks among the leading logistics providers

in Thailand.

Kuehne + Nagel in Thailand has recently

been awarded a three-year contract by Black

& Decker (Thailand) Ltd.

In the scope of the new agreement,

Kuehne + Nagel i s responsible for

inbound shipments, warehousing and

national distribution. In addition, a wide

range of value-added services, including

spare parts management, are provided.

To meet the sophist icated logist ics

requirements of Black & Decker, and in line

with its expansion plan, Kuehne + Nagel

has taken a new warehousing facility in

Bangkok into operation.

“Kuehne + Nagel has the flexibility and

resources necessary for accommodating our

complex logistics requirements. Black &

Decker has gained a valuable partner in

enhancing its supply chain and competitive

edge in the highly dynamic marketplace in

Thailand,” commented Suebpong Panpruet,

Vice President Sales Asia of Black & Decker

(Thailand) Ltd.

The new shared facility, with an available

warehousing space of 4,200 sqm, is

conveniently located in close proximity to

Bangkok’s seaport and international airport,

featuring high-speed linkage with Laem

Chabang, Thailand’s largest port located on

the country’s eastern seaboard.

New Contract Sealed withBlack & Decker Thailand

The new shared facility in Bangkok marks a further

step in the expansion of Kuehne + Nagel’s logistics

network in Thailand

03

Woodside Energy Long-TermContract RenewedWoodside Energy Limited, one of Australia’s

largest publicly-traded energy exploration

and production companies, as well as a

major global seller of liquefied natural gas,

crude oil, condensate and liquid petroleum

gas, has recently renewed a long-term

contract with Kuehne + Nagel in Australia

to provide industry-specific international

forwarding services.

Kuehne + Nagel has been offering

international forwarding services to

Woodside since 2003. The extended five-

year agreement, with the option to extend

for another two years, encompasses

international sea and airfreight, charter

shipments, project logistics and general

transportation management.

The decision in favour of Kuehne + Nagel

as the preferred partner was based on the

company’s dedication to safety, customer

service and innovation. In addition, the

logistics provider has demonstrated its

expertise and flexibility in project-oriented

business, particularly with respect to the

effective handling of break-bulk shipments

and large-scale consignments.

“Through the affiliation with Woodside

Energy Limited, Kuehne + Nagel is pleased

to be enhancing its capabilities as one of

the leading logistics providers in the oil and

energy industry. We look forward to further

sustaining our relationship with Woodside

in the future,” said Jens Pohlmann,

Managing Director of Kuehne + Nagel

Pty Ltd.

Established in 1971, the Kuehne + Nagel

Australian organisation employs around 300

staff members in seven locations, including

Adelaide, Brisbane, Hobart, Melbourne,

Newcastle, Perth and Sydney.

Road movement of a Woodside

vesse l to D i l l i ngen Por t ,

Germany

The dedicated art of navigating

residential streets

Vessel being lifted onto a barge

in Dillingen Port

Loading of vessel onto a heavy

lift ship in Antwerp

Jacking of trailer to maintain

stability

Transi t t ing by barge from

Dillingen Port to Antwerp

Unique Partnership with BMW KoreaIn close partnership with Kuehne + Nagel

Korea, BMW Korea conducted a first-ever

joined parts inventory counting at its

regional distribution centre in Incheon in

December 2006. As many as 19,000 parts

and SKUs were involved.

This special event was given a head start

with the active participation of both

BMW and Kuehne + Nagel presidents.

Driven by the need for optimised logistics

services , both part ies brought this

collaborative project to new levels by

accomplishing objectives ahead of time

and demonstrating strengthened team

work , which resu l ted in increased

productivity and enhanced overall cost

structures.

The unique logistics endeavour not only

deepened relations between the two

companies, but also laid the foundation for

further streamlining of parts logistics

processes to serve the leading automobile

and motorcycle manufacturer.

Kuehne + Nagel has been providing

logistics services to BMW Korea

since 1996. The extensive range of

services offered includes storage,

pick and pack operations, return

handling, and promotional kitting.

With the commencement of a

renewed contract in January 2007,

Kuehne + Nagel has also been

entrusted with inbound logistics

and customs management. In a short period

of time, Kuehne + Nagel has already

enabled even more efficient customs

management processes for BMW Korea,

with fast domestic delivery from different

ports to the regional distribution centre.

This unique logistics partnership lays the foundation for further streamlining of

BMW Korea’s parts logistics processing

04

Brand New Facilities Open across JapanKuehne + Nagel opened a new office in

Kobe in January 2007, thereby extending the

company’s network in the country to a total

of eight locations.

Kobe is one of the two largest seaports in

Japan, next to Osaka. This new expansion

comes in response to the growing demand

for one-stop shopping services from logistics

companies in the market. Customers are

increasingly looking for providers who are

capable of offering in-house customs

clearance for all cargo that originates from,

or is destined to, the greater Kobe area.

Dedicated to meeting all the seafreight-related

logistics requirements of customers from a

single source, the new Kuehne + Nagel office

is located in the Sanomiya business district,

overlooking Kobe’s City Hall and in close

proximity to the local customs bureau and

major infrastructure facilities.

The opening of the Kobe office comes in response to growing

demand for one-stop shopping services, including in-house

customs clearance, in the Japanese market

“The extension of our network underlines

Kuehne + Nagel ’ s commitment to

providing customers with ever-enhancing

service levels”, said John Levin, National

Manager of Kuehne + Nagel Ltd. “The new

Kobe office is also in line with our business

strategy of offering in-house customs

clearance on a country-wide basis, and

marks a further step in the expansion of our

high quality seafreight and related logistics

operations.”

To contact Kuehne + Nagel in Kobe:Kuehne + Nagel Ltd.

5/F, Kobe Silk Center Building

126 Higashimachi Chuo-ku

Kobe City Hyogo Prefecture

650-0031 Japan

Tel.: +81 (78) 326-2733

Fax: +81 (78) 333-4150

E-mail: info.kobe@kuehne-nagel.com

New Logistics Centre in NaritaFurther expansion of Kuehne + Nagel’s

logistics capabilities in Japan came in the

form of the recently-inaugurated logistics

centre in Narita.

The proximity to Narita Airport, only

3.5 kms away, was a key factor in

Kuehne + Nagel’s choice of location for its

new logistics facility. In addition to contract

logistics, a section of the warehouse is

dedicated to airfreight.

The facility features 10,000 sqm of

warehousing and handling space, and

includes modern office premises. Key

customer at the site is Japan Airlines.

Kuehne + Nagel operates the facility

as a global logistics hub for all the

national carr ier ’s in-f l ight catering

requirements, serving the airline’s catering

companies and service stations worldwide

as well as checking and sorting returned

goods.

This new logistics centre underlines

Kuehne + Nagel’s strategy of expanding

contract logistics activities globally, with the

aim of offering integrated logistics services in

all countries. This year alone will see the

company opening two further locations in

Japan, thereby laying the foundation to

becoming one of the country’s leading contract

logistics providers in the medium term.

The new facility complies with all modern

security and environmental standards and

features s ta te -of - the-ar t warehouse

management technology.

Kuehne + Nagel was established in Japan in

1982. With around 230 employees, the

company has a strong market position in

international forwarding and contract

logistics, and ranks among the top five

logistics providers in the market. As part of

its growth-oriented expansion plan, the

company is opening a new seafreight

clearance office in Yokohama in May 2007.

Kuehne + Nagel’s modern logistics centre in Narita features 10,000 sqm of

warehousing and handling space

04

Kuehne + Nagel (Asia Pacific) Management Ltd.

25th Floor, MassMutual Tower

38 Gloucester Road

Wanchai, Hong Kong

Tel.: (852) 2823 7688

Fax: (852) 2527 8396

E-mail: corinna.lam@kuehne-nagel.com

Internet: www.kuehne-nagel.com