3.1 Company mission
All of Kuehne-Nagel’s carrier decisions are made to meet the company’s mission of integration, innovation, outstanding quality and operational excellence (Kuehne-Nagel, 2017). Consequently, company forwarding activities employs the MPDS (measure, plan, do, settle) carrier process as shown in Figure 2 to meet the company mission.
The MPDS model enables the company to consider and manage several factors such as negotiations, assessments, routing guides and optimization strategies. For instance, in order to ensure operational excellence and quality delivery, Kuehne-Nagel will manage performance from the point of delivery and final …show more content…
As shown in Figure 3, CTM is a linear systemic five step process that allows for efficient collaboration management. The CTM model presents four advantages for the Kuehne-Nagel as regards to capacity procurement, inbound management, integrated logistics and distribution marketplaces (Mentzer et al., 2007). Capacity procurement is useful enables carriers to make feasible projections rather than guessing where demand for their services will arise; inbound management assists carriers to be proactive of inbound flow with the receiver of the merchandise lessening the risk for the latter; integrated logistics allows for the cumulative volumes for several points within the company units; while distribution marketplaces offers web-based venues for distribution capacities meant to determine the demand and supply more precisely (Mentzer et al., 2007). The implementation of the CTM model may set the company to improve its time delivery and reduce the lead-time. In addition, the linear, agile and lean process will help eliminate any waste that may increase the cost of …show more content…
There are three key transport management aspects that freight companies can improve on to improve their effectiveness, namely incoterms selection considerations, carrier selection criteria and carrier relationship management. As has been shown, Kuehne-Nagel considers various factors related to the company’s mission and objectives to select and consider the best criteria. The choices have been positive as the company is one of the leasing globally, it has a vast market share, and using the latest innovations to improve its efficiency. However, there are areas of improvement based on the recommendations provided such as the incoterms to use to avert risks, key extended criteria solutions to consider such as cost, product and business relationships. The company can also manage its carrier relationships more avidly by using the Collaborative Transportation Management (CTM) model that helps manage relationships and chart the way forward in case of any