Kuehne + Nagel: providing sustainable supply chain solutions
Considered one of the leading logistics providers worldwide, Kuehne + Nagel has begun to accelerate its sustainability drive significantly.
Having outlined an intention to reduce CO2 in transport and logistics services globally through its “Net Zero Carbon” strategy, the company offers its customers solutions to reduce their supply chain’s CO2 footprint through digital platforms such as Big Data and predictive analytics.
The Net Zero Carbon strategy is Kuehne + Nagel’s global programme to substantially reduce its effect on the environment. It centres around three key pillars:
- Carbon management: Maintain effective carbon management throughout all operations.
- Environmental products and services: Provide environmentally sensitive products to customers.
- Supplier environmental performance: Environmental criteria to procure and select logistics services.
As a result of the logistics industry contributing to around 7% of the global emission of CO2, Kuehne + Nagel has decided to make a commitment to reduce that figure through its sustainability endeavours. “We are all responsible for the environment, for our ecosystem and above all for the people - in business and private life,” commented Detelf Trefzger, Chief Executive Officer at Kuehne + Nagel. “We as a company and all our colleagues act now with our Net Zero Carbon programme to fight CO2 emissions and offer sustainable and innovative supply chain solutions.”
The firm has lofty goals. By 2030, Kuehne + Nagel aims to be completely carbon neutral. The company has established three key ways to help make this a reality - visibility, reduction and offsetting.
Visibility - Through a carbon calculator, it will enable the company to become more aware of its CO2 footprint across each stage of the supply chain. By using a calculator to monitor all carbon usage, it will enable shippers to gather reliable information regarding the use of equipment and monitoring systems.
Reduction - Kuehne + Nagel’s company programme looks to reduce direct and indirect emissions through the implementation of advanced technologies, the use of renewable energy and ongoing training programmes.
Offsetting - With technological advancements helping to decrease emissions, carbon offsetting allows companies to counterbalance CO2 emissions of a shipment that can’t be avoided. This is done by investing in certified nature-based projects worldwide in a bid to offset the impact.
To find out more about Kuehne + Nagel's sustainability strategy, read here!
For more information on all topics for Procurement, Supply Chain & Logistics - please take a look at the latest edition of Supply Chain Digital magazine.
Image: Kuehne + Nagel Press.
Cainiao Network Launches Customer-Centric Logistics
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’.