BUILDING A NIMBLE AND DYNAMIC SUPPLY CHAIN KUEHNE+NAGEL
Andreas Nyman, Global Head of Aerospace at Kuehne+Nagel, on the company’s agile approach to supply chain strategy.
AND CHAIN WITH
WITH OVER 80,000 EMPLOYEES AT CLOSE TO 100 COUNTRIES, THE
ONE OF THE WORLD’S LEADING
eadquartered in Switzerland, Kuehne+Nagel is listed in the Swiss blue-chip stock market index, the SMI. The Group is the global number one in air and sea logistics and has strong market positions in road and contract logistics.
Kuehne+Nagel is the logistics partner of choice for 400,000 customers worldwide. Using its global network, logistics expertise and data-based insights, the Group provides end-to-end supply chain solutions for global companies and industries. As a member of the Science Based Target Initiative (SBTi), Kuehne+Nagel is committed to sustainable logistics by reducing its own environmental footprint and by supporting its customers with low-carbon logistics solutions.
Joining us from Kuehne+Nagel is Andreas Nyman, Global Head of Aerospace, to discuss how to approach logistics operations in a dynamic and ever-changing
sector. To begin, Andreas explores his 17 year career journey with Kuehne+Nagel.
“I started working at Kuehne+Nagel 17 years ago, as an operator in the warehouse,” says Andreas. “I was involved in a variety of areas within the business, but my focus from the beginning was on aerospace and defence. Even now I love it, because you get to learn something new every single day – you’re always one call away from having to change your entire agenda. In my current role, I’m responsible for aerospace – primarily focusing on product and business development and the overall strategy.”
Andreas has seen the aerospace sector go through rapid transformations across his career, and commends Kuehne+Nagel’s nimble approach to its supply chain – allowing the company to mobilise as needed.
“The industry is changing every single day,” says Andreas. “We don’t
1,300 SITES IN KUEHNE+NAGEL GROUP IS LOGISTICS PROVIDERS.
have a crystal ball, but we always have at least a five-year strategy with a constantly moving roadmap. Anything can happen at any given time, so we need to be prepared for anything. So while the long-term objective is there, we’re having frequent alignment to adapt to the evolving market, and sometimes daily to best handle any situation.
“Despite being a big company, we’re actually very agile. We have divisions within that are empowered to make a decision quickly when necessary –there’s freedom to manoeuvre, which is so important in an industry like this.
“Having go-to partners has really helped with this as well. We’re always reviewing what arsenal of tools we’ll need to cope with the next situation, and our network of partners is incredible at working on this with us.”
Included in this arsenal of tools is a range of solutions designed to combat any potential disruption or crisis.
“We have pre-established solutions that we can apply to any given situation,” says Andreas. “ With any of these solutions, we then go to the customer and tweak it to their specifications. From there, we have an individual
discussion with our teams to leverage the best outcome with the set given requirements.
“From an air freight perspective, we check predictions over the next few months in terms of challenges and capacity changes. With that in mind, we have to adapt and innovate to cope with these changes and the end customers’ needs.
“We also have to take challenges regarding freighter capacity into account, which is when close communication with our customers
really comes into play. If we engage with our customers and innovate in relation to that, we can provide solutions that offer a sense of predictability.”
Kuehne+Nagel has developed several strategies to manage freighter capacity, including the development of its programme partnering with preferred carriers.
“Many airlines hedge fuel to mitigate costs,” says Andreas. “We do the same, but with capacity. So we go to the airlines we work closely with and hedge capacity for months ahead to predict what we will need in the months to come.
“We have a preferred carrier programme with dedicated people who have relationships with multiple carriers. They brainstorm every single day to mitigate challenges, it’s a very active dialogue.
“Then we go to our customers, and ask them about their production cycles, to see how that will impact our supply and capacity. We need to go through our entire supply chain, which sounds like a simple journey from A to B. In reality, there’s a lot of people involved, and we all need to be aligned.”
By having this resilience across the supply chain, Kuehne+Nagel is able to offer its customers a balanced approach to any potential disruptions.
“When there are challenges in the supply chain, we provide our customers with a range of options,” says Andreas. “For instance, people tend to use sea freight as it’s significantly more affordable – but it’s also slower, and more prone to disruption. This was a particular problem earlier last year due to the Red Sea situation, which meant a lot of carriers moved their capacity to an already restrained air freight market.
“We went directly to our customers, explained the impact this would have on their supply, and gave them the information necessary to decide whether air or sea freight was the right choice for them personally.”
However, the company is also striving to make the supply chain significantly more resilient – and secure. Alongside transportation logistics company Sovereign Speed, Kuehne+Nagel has developed a new way to transport specialised commodities.
“In March 2020, we created a dedicated aerospace road distribution network,” says Andreas. “We were very fortunate with the timing, because when distributions from the COVID-19 pandemic started we were able to continue operating at a strong level.
“WHEN THERE ARE CHALLENGES IN THE SUPPLY CHAIN, WE PROVIDE OUR CUSTOMERS WITH A RANGE OF OPTIONS”
Andreas Nyman, Global Head of Aerospace
“This road distribution network is unique – it’s not just about going from A to B. Sovereign Speed, together with us, only works with specialised commodities. This means high-value parts and very urgent shipments.
“This network is designed specifically for our industry. Airlines typically do most of their maintenance during night shifts, so that they’re prepared to fly passengers the next morning. Therefore, we make sure that these parts are delivered the same day, prior to the maintenance cycle starting.
“The partnership we’ve built with Sovereign Speed means that this runs smoothly, and everything really works perfectly. We use them as one of our preferred carriers in Europe, and we aim to expand our work with them further.”
Andreas credits the company for its culture of innovation – a culture that has allowed the supply chain network to become more efficient and sustainable.
“We have the advantage of being able to utilise the entire scope of the company,” says Andreas. “Within the company, we have our own foundation where we review the next major innovations and trends to see how we can generate value for our customers.
“An example of this is our sustainable initiatives, In partnership with Atlas Air and SR Technics Group, we created
“THE PARTNERSHIP WE’VE BUILT WITH SOVEREIGN SPEED MEANS THAT THIS RUNS SMOOTHLY, AND EVERYTHING REALLY WORKS PERFECTLY”
Andreas Nyman, Global Head of Aerospace
the Sustainable Engine Alliance, to reduce our environmental impact with sustainable engine supply chains.
“To reduce the environmental impact, we took a deep dive into our, and our
customers’, supply chains to make sure they were operating at peak efficiency, and conducting these processes in a way that was as environmentally friendly as possible. This sends us back to the planning stage again and again to challenge the way we’re doing business, and the way we work alongside our partners. Since implementing these changes we’ve seen a visible reduction of emissions, and we’re always looking for more ways to implement new changes to increase this number. This is only possible through trusted partnership – working to become better, together.”
To sum up, Andreas highlights the importance of having an embedded supply chain.
“The supply chain has always been a challenge,” concludes Andreas. “To overcome these challenges, we need to make sure that the supply chain is an integrated part of a company’s strategy. Quite often, logistics come into play at the very end of a decision, but if that’s embedded at the start of the process then it’s easier to navigate problems. If your partners are aligned, everything is a lot more straightforward.”
Learn more about Kuehne+Nagel here.
Grit
“We always talk about passion, but for me, everything comes down to having a tenacious sense of grit,” says Andreas. “Whatever you do in life, do it as well as you can – and that’s what I try to do. I read a book called Grit: The Power of Passion and Perseverance by Angela Duckworth, which really resonated with me. One thing I took away from this book was the importance of making the most of every dull task or routine, because it all comes down to changing your attitude.”
Giving yourself space
“I started playing golf a couple of years ago,” says Andreas. “I’m terrible at it, but a mentor of mine once told me that sometimes, to be efficient, you need to work less because you need a bit of distance and self-reflection. When I’m golfing it’s the only thing I’m focusing on, and once I’m done my head is clear and it’s easier for me to make decisions.
“One of the things I love most about this industry is that I’ve had so many mentors and coaches who have given advice like this and helped me learn and grow. I hope everyone has been as lucky as I am, to be surrounded by such incredible people.”
Connect with Andreas
uk.kuehne-nagel.com