Kuehne + Nagel and British American Tobacco implement global logistics solution
Kuehne + Nagel and British American Tobacco (BAT) are extending their collaboration with the implementation of a new global integrated logistics solution. The concept widens the scope of activity carried out by Kuehne + Nagel for BAT and sees the two organisations collaborate further to drive innovation in BAT’s existing supply chain.
The new Global Marine and Air Logistics Service Centre (GMALSC) concept integrates all of BAT’s global air and sea freight flows into a single logistics control tower structure. In contrast to previous commodity-specific and geography-specific models operated by Kuehne + Nagel, which dealt with BAT’s Global Leaf Pool and Asia-Pacific requirements independently, GMALSC now facilitates end-to-end supply chain management across all commodities, inbound and outbound, around the globe via one information platform.
Dave Anderson, Global Head of Supply Chain for BAT said: “Through GMALSC we are taking an important step towards realising our future supply chain. The service provided by Kuehne + Nagel is now fully integrated into our Target Operating Model, providing increased efficiency and flexibility to meet the developing needs of our global business.”
This platform enables full visibility of product moves at all stages, supporting better decision-making for BAT. In addition, standardised global processes are combined with local knowledge through Kuehne + Nagel’s global air and sea network to enhance efficiency.
Tobias Jerschke, Global Head of Integrated Logistics for Kuehne + Nagel, said: “The market in which BAT operates is changing rapidly. Through our close partnership and the further development of Kuehne + Nagel’s control tower solutions, BAT can respond quickly to new challenges.”
BAT is a global tobacco Group with brands sold in more than 200 markets. It employs more than 57,000 people worldwide and has over 200 brands in its portfolio, with its cigarettes chosen by one in eight of the world’s one billion smokers. BAT has leadership in more than 60 markets around the world. The Group generated £5.5 billion profit from operations in 2013.
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 companies. Its strong market position lies in the seafreight, airfreight, contract logistics and overland businesses, with a clear focus on providing IT-based integrated logistics solutions. Further information can be found at www.kuehne-nagel.com
Elon Musk's Boring Co. planning wider tunnels for freight
Elon Musk’s drilling outfit The Boring Company could be shifting its focus towards subterranean freight and logistics solutions, according to reports.
A Boring Co. pitch deck seen and shared by Bloomberg depicts plans to construct wider tunnels designed to accommodate shipping containers.
Founded by Tesla CEO Musk in 2016, the company initially stated its mission was to offer safer, faster point-to-point transport for people, particularly in cities plagued by traffic congestion. It also planned longer tunnels to ferry passengers between popular destinations across the US.
The Boring Co. completed its first commercial project earlier this year in April. The 1.7m tunnel system is designed to move professionals between convention centres in Las Vegas using Tesla EVs. It says the Las Vegas Convention Centre Loop can cut travel time between venues from 45 minutes to just two.
Boring Co.'s new freight tunnels
The Boring Co.'s new tunnel designs would allow freight to be transported on purpose built platforms, labelled as “battery-powered freight carriers”. The document shows that, though the containers could technically fit within its current 12-foot tunnels, wider tunnels would be more efficient. Designs for a new tunnel, 21 feet in diameter, show that they can comfortably accommodate two containers side-by-side, with a one-foot gap between them.
The Boring Co.’s new drilling machine, dubbed Prufrock, can tunnel at a rate of one mile per week, which is six times faster than its previous machine, and is designed to ‘porpoise’ - mimicking the marine animal by ‘diving’ below ground and reemerging once the tunnel is complete.
Tesla’s supply chain woes
Tesla is facing its own supply chain and logistic issues. The EV manufacturer has raised the price of its vehicles, with CEO Musk confirming the incremental hike was a result of “major supply chain pressure”. Musk replied to a disgruntled Twitter user, confused as to why prices were rising while features were being removed from the cars, saying the “raw materials especially” were a big issue.
Car manufacturing continues to be one of the industries hit hardest by a global shortage in semiconductor chips. While China’s chip manufacturing levels hit an all-time high in May, and the US is proposing a 25% tax credit for chip manufacturers, demand still outstrips supply. Automakers including Volkswagen and Audi have again said they expect reduced vehicle output in the next quarter due to a lack of semiconductors, with more factory downtime likely.
Top Image credit: The Boring Company / @boringcompany