The purpose of this report is to analyse the effectiveness of Kuehne-Nagel’s key transport management aspects, namely incoterms selection consideration, carrier selection criteria, and carrier relationship management. These aspects are essential to the success of the business and determine how the company leverages itself from competitors. As will be shown, each of the management aspect influences the core operations as they occur within the company, and help avert the risks that are common in the transport sector. The analysis of these aspects will be done using transportation conceptual frameworks and models.
1.2 Company Background
Kuehne-Nagel is a leading international transport company headquartered in Switzerland (Kuehne-Nagel, 2017). The company engages in air, sea and land transportation in approximately 110 countries in all six continents, and has a workforce of about 75,000 as of 2017. Table 1 highlights Kuehne-Nagel different range of services.
Kuehne-Nagel was rated the best international freight forwarder since 2010 and over the years …show more content…
Since the company has data analysis on its clients, it is able to establish which sellers are worth taking certain freight risks based on their reputation and past engagement.
2) Freight on Board (FOB) – this will allow the company to manage most of the forwarding tasks such as shipping time and related costs. Hence it provides a chance for greater cost control. The capacity to deliver helps builds Kuehne-Nagel reputation in line with the company’s mission. In addition, the liabilities are lessened as both the importer and exporter share out the risks