Contract Logistics

5.4
billion CHF
net turnover in 2019

11.4
million sqm
logistics and warehousing
space

43,661
contract logistics
specialists

No. 2
worldwide

With over 43,000 employees in more than 46 countries, the contract logistics business unit is number 2 in the world. Kuehne+Nagel’s service portfolio ranges from outsourcing logistics to handling complex end-to-end goods flows and eCommerce, covering all aspects of logistics including planning, management and execution. Around 500 engineers develop customised industry solutions for the consumer goods, pharma, aerospace, automotive and other sectors.

Integrated Logistics forms part of the unit. At eight sites around the world, known as KN Control Towers, 900 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 optimised.

In the 2019 business year, net turnover in contract logistics rose to CHF 5.4 billion. Growth in turnover was maintained at market level by streamlining the product portfolio, productivity gains and improved service quality. EBIT reached a record high of CHF 198 million, more than 40% up on the previous year. This improvement was due to strong operational performance and disposals of real estate.

Performance
in CHF million 2019 2018 2017
Turnover 5,977 5,830 5,300
Net turnover 5,398 5,249 4,814
Gross Profit 4,004 3,937 3,619
EBITDA 814 270 288
EBIT 198 138 161
EBIT in per cent of Gross Profit 4.9 3.5 4.4
Warehousing space in million sqm 11.4 11.6 10.6
Number of operating staff 43,661 43,694 39,957

Integrated eCommerce fulfilment

Availability to the end customer is of central importance for eCommerce fulfilment. Kuehne+Nagel has developed an end-to-end solution package for eCommerce to meet the increasing demand for online orders. This allows producers, retailers and eCommerce marketplace operators to draw on automated logistics processes such as the new SwiftLOG warehouse management system to support their physical infrastructure. Kuehne+Nagel already provides these integrated eCommerce services at over 120 sites worldwide.