Contract Logistics

4.9
billion CHF
net turnover in 2020

11.3
million sqm
logistics and warehousing
space

39,400
contract logistics
specialists

No. 2
worldwide

With over 39,000 employees in more than 46 countries, the Contract Logistics business unit is the world market number 2. Kuehne+Nagel’s service portfolio ranges from outsourcing logistics to handling complex end-to-end goods flows and e-commerce, covering all aspects of logistics including planning, management and execution. Around 500 engineers develop customized and highly automated industry solutions for the consumer goods, pharma, aerospace, automotive and other sectors.  

Integrated Logistics forms part of this business unit. At eight sites around the world, known as KN Control Towers, 700 specialists develop and implement end-to-end solutions to make supply chains both flexible and efficient. This allows costs of logistics operations, turnaround times and customer inventories to be optimized. The state-of-the art IT solution launched in 2020 introduces predictive analytics and artificial intelligence solutions in Supply Chain management.

In the 2020 financial year, net turnover in contract logistics totaled CHF 4.9 billion and EBIT reached CHF 80 million. With the divestment of a major part of its UK Contract Logistics portfolio, Kuehne+Nagel completed the restructuring of the business unit. This transaction followed the sale of the Contract Logistics activities in Argentina, the chilled FMCG portfolio in France as well as a portfolio of real estate assets.

 

Performance
in CHF million 2020 2019 2018
Turnover 5,389 5,977 5,830
Net turnover 4,875 5,398 5,249
Gross profit 3,638 4,004 3,937
EBITDA 750 814 270
EBIT 80 198 138
EBIT in per cent of gross profit 2.2 4.9 3.5
Warehousing space in million sqm 11.3 11.4 11.6
Number of operating staff 39,360 43,661 43,694

Integrated e-commerce fulfilment

Availability to the end customer is of central importance for e-commerce fulfilment. To meet the increasing demand for online orders, Kuehne+Nagel has developed an end-to-end solution package for e-commerce. This allows producers, retailers and e-commerce marketplace operators to draw on automated logistics processes such as the new SwiftLOG warehouse management system to support their physical infrastructure. Almost all of Kuehne+Nagel’s distribution centers worldwide have e-commerce or omni-channel capabilities.