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Kuehne & Nagel in the Asia-Pacific                                                                                                                                                                                                            
Product Ref: 99/37C Company: Kuehne & Nagel

Product Type: Case Industry: Transportation

Related Product(s): Teaching Note
In the 1990s, freight forwarding had become a rapidly changing and dynamic industry. Globalisation of world markets, advancements in information technologies, changing demand and supply for products and services and the emergence of new markets in developing nations, all had huge implications for the industry. Users of freight forwarding were increasingly seeking to shorten product cycles and minimise inventory while ensuring their products were distributed to the appropriate markets, as they attempted to achieve tighter supply chain management. Where previously the freight forwarding industry was the primary vehicle for the distribution of products, transaction volumes had increased while margins yielded were low. Vertical integration up the supply chain meant that third-party logistics providers could provide a "one-stop-shop" concept to customers and achieve generally higher margins per transaction volume. Still in the grip of the Asian economic crisis, it was timely for Kuehne & Nagel management to consider a future strategy for their Asia-Pacific operations.
Functional Area : Production & Operations Management
Strategy & General Management

Issues: Freight Forwarding, Supply Chain Management, Vertical Integration
Length: 18 pages Country: Asia

Pub. Year: 1999 Level of Difficulty: 1
This product type is available in the following language(s):      English   Simplified Chinese
Related Information:
This case is UGC funded.
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