May 17, 2020

Kuehne + Nagel expand Brazilian market

Supply Chain
Supply Chain Solutions
South America Supply C
Supply Chain
Freddie Pierce
1 min
Shipping leader Kuehne + Nagel continues to reach out to South America by growing in the Brazilian logistics market
With debt mounting in Europe and unemployment remaining stubbornly high in the United States, some companies are looking elsewhere for growth. As one o...

With debt mounting in Europe and unemployment remaining stubbornly high in the United States, some companies are looking elsewhere for growth.

As one of the worldwide shipping and logistics leaders, Kuehne + Nagel’s strategy is no exception, as the company is looking to move more into Brazil for growth.

Consistent with that approach, Kuehne + Nagel acquired Porto Alegre’s Grupo Eichenberg earlier this week. Family-owned with approximately 700 workers in 14 locations, Grupo Eichenberg is expected to strengthen Kuehne + Nagel’s door-to-door logistics operations in South America.

“This acquisition is in line with our global growth strategy and ideally fits our objective to significantly expand our activities in particular in Brazil, one of the world’s key growth markets,” Karl Gernandt chairman of Kuehne + Nagel International AG, said.

“Grupo Eichenberg complements the service offering and customer base of our strongly performing national company. Together, we are able to increase our value proposition by providing global integrated door-to-door solutions in Brazil.”

Gerson Eichenberg, chairman of Grupo Eichenberg, echoed those sentiments.

“In a dynamically growing market, companies from industry and trade are looking for global logistics solutions, allowing them to create value and increase competitive advantage,” Eichenberg said. “Jointly, we can optimally meet these requirements, and thus further strengthen Kuehne + Nagel’s market position.”


Latin America outsourcing survey

Overcoming outsourcing language barriers

How Latin America became an outsourcing hub

Check out July’s issue of Supply Chain Digital!

First-half turnover fell slightly in 2011 for Kuehne + Nagel, but earnings still managed to rise. Gernandt still sees significant challenges the company must meet in the logistics world.

“Market analysts anticipate slower growth in the logistics industry. Nevertheless, the Kuehne + Nagel Group is well positioned to tackle future challenges,” Gernandt said. “The acquisition in Brazil is a significant step.”

Kuehne + Nagel first started its South American outreach in 1962 by opening a forwarding office in Brazil. Before the agreement with Grupo Eichenberg, the company had 25 locations and employed 1,000 people.

Share article

Jun 17, 2021

Cainiao Network Launches Customer-Centric Logistics

3 min
Cainiao will focus on the customer experience in Singapore and Malaysia during its Tmall 618 Mid-Year Shopping Festival

As the logistics division of the Alibaba Group, Cainiao Smart Logistics Network has decided to provide its Southeast Asian customers with unsurpassed service during its annual shopping festival. Based on customer feedback surveys, the company will expand its real-time customer service support and speed up delivery times. ‘By expanding and deepening our services, we aim to provide a stronger logistics infrastructure that can bolster the booming eCommerce sector, support merchants’ expansion into new markets and diversify retail options for consumers’, said Chris Fan, Head of Cross-Border, Singapore, Cainiao Network.


Who Is Cainiao? 

According to TIME Magazine, Cainiao ‘is far from a typical logistics firm’. The company controls an open platform that allows it to collaborate with 3,000 logistics partners and 3 million couriers. This means that merchants can choose the least expensive and most efficient shipping options, based on Cainiao’s real-time logistics analytics. The company’s goal is to ship packages anywhere in the world in under 72 hours—and for less than US$3.00. 


For countless small business owners around the world, from coffee-growers to textile-weavers, this could change everything. Usually, it costs about US$100 to ship a DHL envelope from Shanghai to London in five days. Cainiao aims to change that. Said its CEO Wan Lin: ‘The biggest barrier to globalisation is logistics’. 


What’s Part of the Upgrade? 

Throughout the Tmall festival, Cainiao’s logistics upgrade will be divided into four critical segments: 


  • Real-time customer service support. Cainiao has launched a direct WhatsApp channel for customers to receive logistics updates and ask questions. 
  • Expansion of air freight parcel size and weight limits. Packages can now be up to 30 kilograms or 1-metre x 1.6 meters to help ship large items such as furniture. 
  • Daily air and sea freight connections. Shipping frequency will almost double to seven times weekly to maintain resilience and efficiency. 
  • Compensation for lost or damaged packages. Customers will be reimbursed up to RMB 2,000 (US$311). 


Where is the Company Headed? 

From June 1st to June 20th, the finale of Tmall, Cainiao will ensure that its customers feel confident in the company’s ability to deliver their packages. Despite global shipping delays due to COVID, the show will go on. Said Fan: ‘This series of customer-centric logistics upgrades reaffirms our goal of pursuing value-added services to enhance customers’ shopping experience while mitigating challenges posed by external factors’. 


Furthermore, Cainiao has recently expanded its Southeast Asian operations, achieving revenue growth of 68% year-over-year. In Malaysia, the logistics operation has partnered with BEST Inc. and Yunda; in Singapore, the company has partnered with Roadbull, Park & Parcel, and the Singapore Post. And if its recent measures help retain and grow its customer base, the company will be well-poised to lead the industry in resilient and customer-centric global logistics. ‘COVID-19 made everyone realise how important the logistics infrastructure backbone is’, said Wan. ‘And it gave us a peek at what Cainiao should look like in three years’. 



Share article