Is your LSP cost effective??

Cost is one of the primary factors that attracts or distracts a customer. Choosing a Logistics Service Provider on the basis of cost efficiency can prove beneficial in terms of consolidating the presence in the market. But, when it comes to quality of service and delivery of service, cost efficiency factor is overlooked in most of the cases. Cost remains a major issue everywhere. In a developing economy like India where logistics cost is almost 13 percent of the product, managing cost efficient service is something which bothers the people working in Logistics department. When considering whether to employ a third-party logistics provider, it is important to factor in the expenses and costs associated with them.

It is essential to know whether the costs of such services are a worthwhile investment. Key driver in the increased emphasis on price is greater pressure on cutting cost within the customer company. Customers seem to be fixated on cost decreases, even if they do not truly understand the services they are receiving. This is because, 10 years ago, most companies were outsourcing for the first time. Then, as the relationships with 3PLs matured, they became more demanding about the cost of the services. In fact, many customers today assume that the cost of logistics services will continue to decrease while the quality and number of services received continue to increase.
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Giuseppe De Vincenzo appointed to head CEVA’s South Pacific (SOPAC) operations

MELBOURNE, Australia– CEVA Logistics, a leading global supply chain management company, has today announced the appointment of Giuseppe De Vincenzo as its new Executive Vice President - designate for the South Pacific (SOPAC) business, which encompasses Australia and New Zealand.

De Vincenzo, who will take up the position permanently on 1 January 2010, has been with the company for the past seven years, most recently as the company’s Vice President, Brazil. Prior to this, he was the Managing Director of contract logistics, South America. He brings a wealth of international operating experience to the role, including a strong automotive background having previously worked for Fiat and Nissan prior to joining CEVA.

Commenting on his new role, Mr De Vincenzo said: “I am looking forward to driving the next stage of growth and realising the company’s ambitious business goals for our SOPAC operations through strong company performance. This will involve further expanding and leveraging our unique range of supply chain service solutions to existing and new customers across the region.
De Vincenzo will succeed Howard Critchley, who has announced his impending retirement from full-time work with the company after 14 years of service. During this time, Mr Critchley has overseen development of the SOPAC business into a world class provider of integrated contract logistics and freight management services. In 2005, he took over the management of the company’s Asian logistics business (Thailand, Indonesia and Malaysia) and in 2006 the China logistics activities before his current appointment as the Regional Vice President, SOPAC in 2007. From 1 January 2010, Mr Critchley will leave his current position and take up a consultancy role with CEVA, focused on growing the company’s contract logistics footprint in several key markets across the Asia Pacific region, including India and other north Asian countries.

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MAERSK LINE EXTENDS ASIA

We are very pleased to announce that we have extended our Asia - Europe AE10 service into the port of Gdansk, Poland, creating the first direct connection between China/Southeast Asia and Poland.

In line with our goal of delivering outstanding, innovative cargo services, this change is part of our off-peak capacity and slow steaming initiatives being implemented in our Asia - Europe network.

The change will enable AE10 to offer unique coverage between Asian ports and Poland and beyond, to the rest of Central and Eastern Europe - including improved feeder connections to the Baltic and Russia.

As part of the change, we will remove Dunkerque from the AE10 service, but the total capacity we offer in the Asia - Europe trade will remain unchanged.

The first sailing will be Maersk Taikung departing from Shanghai on 1 December 2009 with an estimated time of arrival (ETA) in Gdansk on 5 January 2010.

AE10 (East and South China, South East Asia to Northern Europe, Poland, and Scandinavia)
- New rotation: Ningbo (China), Shanghai (China), Kaohsiung (Taiwan), Yantian (China), Hong Kong (Hong Kong), Tanjung Pelepas (Malaysia), Le Havre (France), Felixstowe (Great Britain), Zeebrugge (Belgium), Gdansk (Poland), Gothenburg (Sweden), Aarhus (Denmark), Bremerhaven (Germany), Rotterdam (Netherlands), Singapore (Singapore), Hong Kong (Hong Kong), Kobe (Japan), Nagoya (Japan), Shimizu (Japan), and Yokohama (Japan).

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FedEx turns to web advertising

FedEx Delivers to a Changing World”New Global Advertising Campaign LaunchesFedEx has launched a new global advertising campaign reflecting the company’s commitment to helping its customers navigate the global marketplace.

“The world today is defined by rapid change,” said Rajesh Subramaniam, senior vice president, International Marketing, FedEx Services. “Whether it’s responding to the challenging economy or planning for future growth, our global customers’ needs are changing and we are evolving along with them. This campaign illustrates how customers can count on FedEx to help them succeed.”

The campaign titled: “FedEx Delivers to a Changing World,” specifically highlights how FedEx provides access to new markets, offers innovative solutions, supports the local communities and connects the world in sustainable ways.

It includes five online advertisements that will run in the United Kingdom, Germany, India, Japan, China, South Korea, Mexico and Brazil. The ads were developed by BBDO.

This campaign is the latest in a series of innovative advertising platforms at FedEx. The last global advertising campaign, “Behind the Scenes”, was rolled out in 2007 and 2008 and reinforced the ways in which FedEx provides customers with access to market opportunities around the world.

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CEVA’s AV Manufacturing business receives ISO 14001 certification

São Paulo, Brazil– AV Manufacturing (AVM), a subsidiary of CEVA Logistics, a leading global supply chain management company, has just achieved the ISO 14001 certificate for operating engine sub-assembly for General Motors.

The ISO 14001 is a global standard set by the International Organization for Standardization (ISO) for environmental management systems, to help organizations reduce their environmental footprint. This accreditation highlights how CEVA has implemented best practice throughout the business to minimize any negative affect its operations may have on the environment.

To obtain this certificate companies are evaluated on their environmental impact which includes, the nature of the operations conducted by the company, the training provided to employees to fulfill environmental goals, an evaluation of vendors’ environmental consciousness and general waste disposal.

In order to comply with the rules demanded by ISO 14001, AVM developed an environmental management system (SGA) for the engine operation of General Motors. SGA is a series of work instructions and procedures that guides the company’s activities ensuring that they are focused on upholding environmental responsibilities and minimizing any waste. These points are directly related to city, state and federal laws.

Ruy .W. Nogueira, General Manager of AVM said, “ISO 14001 is a very important achievement for the company, as it recognizes the effort of work conducted internally to seek alternative solutions to minimize the impact of waste generated during our activities. In addition, it shows the involvement of our employees with SGA, which is designed to help them identify actions that contribute to the preservation of the environment.

The certificate is valid for three years; however the company will undergo annual maintenance audits. This achievement which recognizes the environmental management practices of a company’s given operation at a specific location, has lead AVM to set goals to obtain ISO 14001 for its many other operations. This process began in July 2008 and concluded within 11 months.

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CEVA Logistics launches new eco-sustainable warehouse in Martinengo

Italy- CEVA Logistics, a leading global supply chain management company, has launched a new eco-sustainable logistics warehouse in Martinengo, Bergamo, Italy, which will be dedicated to technology customers.

The Martinengo warehouse, 45,000m2 in size, will produce approximately 1,600 MWh a year - the consumption needed to generate electricity for around 450 households - saving approximately 840,000 kg of CO2 emissions every year.

The structure’s photovoltaic installation is made of 5,300 panels and corresponds to a surface area of approximately 10,000m2. The warehouse includes solar panels which will produce hot water as well as rainwater harvesting tanks for land irrigation. The building is also equipped with low consumption electrical systems with twilight and movement sensors.

The warehouse was developed with FAP Investments s.r.l., which specializes in the real estate logistics sector and with FAP Energy s.r.l., whose mission is to develop high efficiency and up-to-date photovoltaic systems in the renewable sources field. The investment for the photovoltaic installation of the Martinengo warehouse totaled €8 million.

FAP Energy currently produces 5.5MW of energy for CEVA. By 2010, it intends to supply an additional 2MW of energy for CEVA.

Fausto Ferrari, President, FAP investments, said: “FAP Investments’ decision to work with CEVA was in recognition of CEVA’s prerogative to listen to the customer’s request for sustainable supply chain processes. By prioritizing green initiatives, CEVA is leading the market.”

Gianfranco Sgro, President, CEVA in Southern Europe, Middle East and Africa, said: “CEVA has developed a strategy of targeted and intelligent eco-sustainable initiatives, with the goal of combining excellent logistics performance which respects the environment. This will enable us to reach an energy break-even point. By 2010, autonomous electricity production will fulfill the requirements of over 9,000 people - approximately the same number of CEVA employees in the SEMEA Region.”

CEVA continues to develop its sustainable investments across the global network and this warehouse joins seven other eco-sustainable structures that CEVA has, or, is in the process of developing in Italy by next year. These structures will hold an overall surface area of 250,000m2 and will generate over 10,000 MWh of photovoltaic energy, collectively enabling CEVA to reduce CO2 emissions by 5.5 million kg every year.

Most recently, CEVA opened a 55,000m2 eco-sustainable structure in Ontigola, Spain and is also set to open a 60,000m2 eco-sustainable warehouse in Dubai by 2010.

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Wine Country Gift Baskets Awards UPS Exclusive Package Delivery Carrier Account

FULLERTON, Calif.- Wine Country Gift Baskets, has announced the selection of UPS as their exclusive package delivery carrier. Both companies share the same dedication to exemplary customer service and reliability, making UPS the perfect partner to deliver Wine Country Gift Baskets' wide selection of gourmet food, wine, cookie, flower, fruit and spa-themed gift baskets.

The shift to UPS, which became effective July 2009, evolved from an extensive distribution review during the spring. "UPS is a great partner. They are capable of handling all of our shipping needs," stated Bill Shea, General Manager of WCGB. "Our business depends on shipments arriving on time and UPS has our complete confidence and support that our customers will always be satisfied."

Founded in 1907 as a messenger company in the U.S., UPS has grown into a $49.7 billion global corporation and is one of the most recognized and admired brands in the world. During Wine Country Gift Baskets' holiday gift season, it is projected that UPS will handle the logistics and transportation of more than 2 million gift baskets. "We're excited about the opportunities and high-quality service levels we anticipate using UPS," Shea continued, " and we know UPS understands that our customers depend on our unmatched 100% Satisfaction, 100% Quality and Unconditional Value Guarantee."

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Hub Group, Inc. Reports Third Quarter 2009 Earnings

DOWNERS GROVE- Hub Group, Inc. today reported income for the quarter ended September 30, 2009 of $9.8 million. Hub Group's diluted earnings per share was $0.26 for the third quarter of 2009.

Hub Group's revenue of $389 million was down 24% compared to $514 million in the third quarter of 2008. Third quarter intermodal revenue decreased 27% to $270 million. The decrease was attributable to 9% lower volume, 12% lower fuel and a 6% decrease for price and mix. Truck brokerage revenue decreased 27% to $74 million this quarter. Third quarter logistics revenue increased 2% to $45 million.

Hub Group ended the quarter with $123 million in cash.

"We think that the third quarter results were reasonable considering the economic environment. During this downturn, we have focused on reducing our costs and believe that the efficiencies we have realized will continue to improve our competitive position as the economy recovers," said David P. Yeager, Chairman and Chief Executive Officer.

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DHL launches a new motor of innovation: DSI

Frank Appel in the spring of this year is progressing according to plan. Deutsche Post DHL presented DHL Solutions & Innovation (DSI), its newly launched business unit at the 26th German Logistics Congress in Berlin. As a motor of innovation and a cross-cutting function of DHL it pools and drives technological development within the Group. Headed by Petra Kiwitt, it reports directly to CEO Frank Appel. "Logistics is becoming a sector for trendsetters and setting standards not only with respect to technological development.

Petra Kiwitt and her team will contribute to ensuring that our Group remains one of these trendsetters and helps to secure the economic success of our customers by offering future-oriented logistics solutions," said Frank Appel. The newly created organizational unit consolidates the innovation activities of the individual branches of DHL. Based on the results of market studies, analyses of sector strategies and intensive customer surveys, DHL Solutions & Innovation lays the groundwork for future-oriented and standardized logistics solutions that are becoming applicable across sectors.

"Our customers expect sustainable solutions, understandable services that are easy to use and uncomplicated access to their service provider. We are achieving this among other things by enhancing connections between the various DHL Units dealing with research and development. This is a way to tap the full creative potential of our staff," Petra Kiwitt stressed.

Right from the start, DHL Solutions & Innovations has been able to benefit from successful platform approaches, such as the Control Tower Concept. Used for several customers, this concept enables a strategic transport management through modern IT solutions which provide a permanently updated access to all details of the supply chain.
Strengthening the leading role

The experience and innovative strength of the DHL Innovation Center, which opened in 2007, is another asset. This is where groundbreaking logistics solutions such as the parcel robot, the carbon offsetting procedure and the smart truck originated. DSI also proves that the Group Strategy presented in March 2009, which is aimed at strengthening Deutsche Post DHL's leading role in the international logistics market, is being implemented.

The strategy is aimed at leveraging the full potential of the world's leading logistics provider and increasing the profitability of DHL by improving cooperation as "One DHL" and increasingly dovetailing operations with DHL Global Customer Solutions (GCS). The needs in particular of the 100 biggest customers handled by GCS are valuable indicators, which are now being fed into development processes at an early stage.

DHL Solutions & Innovations is also the result of the study "Delivering Tomorrow - Customer Expectations in 2020 and Beyond" that was recently presented by Deutsche Post DHL. "Our study shows that the omnipresence of the Internet, sustainable resource management and climate change are issues of relevance to society. The logistics sector too must respond to these challenges," stated Frank Appel. "DHL Solutions & Innovation is another building block that will help Deutsche Post DHL turn these challenges into opportunities."

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CEVA wins spare parts distribution contract with BMW UK

Ashby De La Zouch, UK– CEVA Logistics, a leading global supply chain management company has been awarded a contract with BMW UK to manage the delivery of spare parts to approximately 200 BMW and MINI dealerships across the UK and Northern Ireland.

CEVA will provide a transport solution using a specialist collaborative delivery service, specific to the requirements of moving automotive parts overnight. By leveraging transport synergies this collaborative delivery network provides a service typical of a dedicated operation but at a significantly lower cost.

At the heart of the service is CEVA’s C-CAM IT track and trace system which monitors all transactions and movement of assets, including all returns and reverse logistics.

Martin Douglas, National Parts Manager, BMW (UK) Ltd said: “BMW and CEVA already work together in many markets around the world. Their high level of expertise in the automotive sector makes them the clear choice for our UK parts distribution. We are sure that CEVA’s passion for excellence and commitment to their customers will drive forward a strong partnership.”

David Jackman, Automotive Business Sector Director, CEVA in UK & Ireland said: “We are delighted that BMW has taken the decision to award CEVA this business. This will expand the work we already do with BMW in Australia, Brazil, China, Poland and the USA. We look forward to delivering a top class service for BMW’s UK customers through this automotive shared user solution.”

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APL enhances Intra-Asia network with new service launch

Singapore: APL, a global leader in container shipping, has announced the launch of the Japan-Thailand-Vietnam (JTV) service, which will further strengthen its Intra-Asia short sea network and better serve key manufacturing and consumption markets within Asia.

From 30 October, the JTV offers shippers a dedicated service linking the key markets of Japan, South China and Hong Kong with the emerging South East Asian manufacturing locations of Thailand and Vietnam. The JTV will serve trade lanes with potential for significant long-term growth. The service will also enable importers and exporters to access APL's global mainline services network via Hong Kong and Kaohsiung. Shippers can also tap into the Philippines market with faster connections via Kaohsiung.

Jason Wong, APL Vice President for Intra-Asia said: "The JTV caters to customer demand for more short sea services in the dynamic Intra-Asia market. The new service will support a trading circle encompassing key origins and destinations ranging from South East and East Asia to North Asia. Manufactured and component goods, as well as refrigerated fresh produce can now move more quickly and reliably within Asia."

Mr Wong added: "Recognising Asia's growing importance as both a production and consumption market, the JTV service demonstrates APL's commitment to adapt our network to meet changing trade patterns and better serve our customers."

APL will deploy 3 ships, each with a capacity of 1,200 TEU (twenty-foot equivalent unit).

Port rotation for the JTV will be: Tokyo, Yokohama, Kobe, Chiwan, Hong Kong, Laem Chabang, Ho Chi Minh City, Kaohsiung and Tokyo.

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Cardinal Logistics Management Recognized as Kodak Certified Supplier

CONCORD- Cardinal Logistics Management, a leading provider of dedicated transportation solutions, has been named as a Kodak Certified Supplier by Eastman Kodak Company. Cardinal provides just-in-time deliveries as manufacturing support across Kodak's campus in Rochester, New York.

The Kodak Certified Supplier Program recognizes suppliers that demonstrate the ability to consistently meet Kodak's performance expectations for quality, on time delivery, lead time, and year over year productivity for the services they provide. The certification process ensures practices and procedures used by their suppliers are of the highest quality. Only 10 percent of all Kodak suppliers worldwide qualify as Certified Suppliers.

To become a Certified Supplier, Cardinal completed a self-assessment as well as an on-site evaluation by a team of Kodak auditors. The audit delves deep into the operation, checking every detail from the most basic of drivers' work steps to details as specific as data transfer through the electronic dispatch system and information capture. During the rigorous evaluation, Kodak found all of Cardinal's practices to be above the standards for certification.

"Cardinal completed the process faster than most companies," explained Peter Bartell, Kodak Supplier Quality Manager. Many Kodak suppliers are not considered for the process or are not able to complete the rigorous process. Of those that do finish, the average completion time is eight months to longer than a year. "From start to finish, Cardinal completed the process in just over six months," said Bartell.

"We are proud to be considered a Kodak Certified Supplier and will take all steps to retain this certification year after year," said Cardinal Operations Manager Brian Stover.

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Sajan Launches New translation technology Software Company

RIVER FALLS,Ireland- Sajan, an ireland based player in on-demand translation technology and services, today announced the launch of Sajan Software, Ltd., a new wholly-owned subsidiary dedicated to advancing cloud-based translation technologies. Based in Dublin, Ireland, Sajan Software, Ltd. will drive and support the continued evolution of Sajan's leading edge translation management system, and its broader suite of localization solutions. The launch celebrates Sajan's deep commitment to next generation software and global market leadership. Vern Hanzlik, former CEO of Stellent (acquired by Oracle in 2006) has been named president of the new company. Additionally, a new brand name, Sajan Software(TM), is being created.

At its core, Sajan Software is a world-class technology company offering advanced translation management technologies, such as its acclaimed GCMS(TM), which was rated the #1 translation management system (TMS) by industry analysts. The new company underscores Sajan's reputation for technological innovation in the localization industry, and officially positions its solutions as freestanding applications, to be used independently or in concert with the company's translation services. Sajan asked Vern Hanzlik, a seasoned technology executive and current Sajan chief marketing officer, to lead the new company. Hanzlik successfully built and led Stellent, a global leader in enterprise content management systems, through its most prolific and innovative years.

"The launch of Sajan Software represents Sajan's longstanding commitment to the future of cloud-based translation technology," said Vern Hanzlik, president, Sajan Software. "Beyond the solutions themselves, our product development strategies are backed by long-term investments in R&D and engineering talent."

Recognizing that cloud-based computing offers an unprecedented cost savings opportunity for large enterprises, Sajan Software provides a pioneering usage model for customers. Specifically, the company offers its TMS through an incremental, volume-based approach, which will allow large enterprises to adopt new technology with lower risk and investment.

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Frost & Sullivan: Cost Cutting and Rationalisation Will Boost the European Defences Logistics Market

The rapidly growing defence logistics (information systems) market in Europe is driven both by the cost cutting and rationalisation plans of various militaries and by improved web-enabled logistics systems. The greatest challenge for suppliers and integrators of defence logistics information systems is how to provide end users with high quality solutions under acute cost and time constraints.

New analysis from Frost & Sullivan (http://www.aerospace.frost.com), European Defence Logistics (Information Systems) Market Assessment, estimates that the market will peak in 2010 to then gradually decrease and enter the maturity stage by 2017.

"The cost cutting and rationalisation plans of various militaries as well as increasing adoption of enhanced web-enabled logistics systems are the key market drivers and will remain the most important catalysts in long-term market development," notes Balaji Srimoolanathan, Program Manager for Aerospace & Defence at Frost & Sullivan.

Several European nations are focusing on diverting limited funds toward expensive arms rather than combat support. To avoid wasteful expenditure by ensuring that the right consignments arrive in the right place at the right time, European militaries are moving towards implementing more efficient logistics information systems. Moreover, there is a desire to rationalise military logistics by moving towards cross-service interoperability.

Web technologies have improved substantially in terms of speed and size capability. Such improved technologies provide an accurate and up-to-date picture of all assets and the supply state of all units at any one time and, thus, reduce wastage in terms of unnecessary spares and the number of personnel required to maintain inventory stockpiles. These factors will significantly impact market prospects.

The biggest challenge for suppliers and integrators will be to provide end users with high quality defence logistics IT solutions under severe cost and time constraints.

"The Armed Forces of various European nations and Israel are in the process of transforming their logistics information systems in an effort to streamline and rationalise their logistics activities," remarks Balaji Srimoolanathan. "The final goal of these nations is to have one comprehensive, integrated defence logistics software solution. In the process of attaining this goal, they are looking to acquire lean and agile, highly deployable, open logistics systems with robust support networks."

The market revenues in each of these countries will peak depending on when individual logistics IT projects would be initiated. For instance, the United Kingdom will initiate its future logistics information systems project in 2010. Other NATO members, including France, Italy and Spain are expected to follow suit and work towards implementing similar systems a few years later.

Nordic governments will work towards integrating their individual logistics systems into one comprehensive system. In the long term, NATO member nations may work towards a comprehensive integrated logistics system as well.

European Defence Logistics (Information Systems) Market Assessment is part of the Defence Growth Partnership Service programme, which also includes research in the following markets: US Logistics and Support Systems Market and, UK Logistics and Support Systems Market. All research included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants.

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Sical Logistics of india signs pact with NMPT

MUMBAI: Sical Logistics, provider of multi-modal logistics for bulk and containerised cargo, on Wednesday said it has entered into an agreement with New Mangalore Port Trust to set up iron-ore handling facilities.

The company has signed concession agreement with New Mangalore Port Trust on October 19, Sical Logistics said in a filing to the Bombay Stock Exchange (BSE).

The agreement was signed between New Mangalore Port Trust and Sical Iron Ore Terminal (Mangalore) Ltd, a special purpose vehicle arm of Sical Logistics, the filing added

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Ingersoll Rand Names Todd Wyman Senior Vice President, Global Operations and Integrated Supply Chain

Swords, Ireland – Ingersoll-Rand plc (NYSE:IR) today announced the appointment of Todd Wyman as senior vice president, Global Operations and Integrated Supply Chain, effective November 16, 2009. He will report to Michael W. Lamach, president and chief operating officer, and be based in Davidson, NC. Wyman also will be recommended to the Board of Directors for election as an officer. He will be a member of the company's Enterprise Leadership Team.

Wyman joins Ingersoll Rand from General Electric (GE), where he was an elected officer and vice president of Global Supply Chain for GE Transportation, responsible for global manufacturing, sourcing, and distribution. Prior to that, he was general manager, Global Supply Chain for GE Transportation. Wyman joined GE's Manufacturing Management Program in 1989, and progressed to increasingly more responsible roles in operations, sourcing and general management across several GE businesses, including Power Systems, Electrical Distribution & Controls, and Industrial Systems. Wyman holds a bachelor's degree in Management Engineering from Worcester Polytechnic Institute, Worcester, MA.

"As Ingersoll Rand continues to drive toward world-class productivity performance and deliver ongoing benefits from the integration of our businesses, it is imperative that we accelerate our progress in achieving continuous improvement and greater efficiencies across our operations," said Michael W. Lamach, president and chief operating officer of Ingersoll Rand. "With tremendous experience and demonstrated success across all facets of operations management, Todd is well prepared for this critical leadership role and duties that include the development and implementation of long-range strategies to optimize manufacturing operations, develop and leverage a globally integrated supply chain, and transform the ways in which the company applies assets across the enterprise."

Ingersoll Rand is a global diversified industrial firm providing products, services and solutions to enhance the quality and comfort of air in homes and buildings, transport and protect food and perishables, secure homes and commercial properties, and enhance industrial productivity and efficiency. Driven by a 100-year-old tradition of technological innovation, we enable companies and their customers to create progress. For more information, visit www.ingersollrand.com.

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CEVA Logistics launches Pyramid, a new warehouse in Dubai

Dubai, UAE – CEVA Logistics, a leading global supply chain management company, has opened an advanced 12,000 square meter warehouse in Dubai.

The new warehouse is built with latest technology and has a pyramidal structure to embody CEVA’s distinct brand. The Pyramid is located in the JAFZA South Zone, an area that plays a central role in the company's development strategy to improve its regional presence by creating a network of local warehouses. The Pyramid will act as a central hub for all regional clients and will be used for CEVA’s Middle East headquarters.

The implementation of CEVA Lean principles in the warehouse’s operations will improve processes by minimizing waste and increasing the quality and service provided. The Pyramid has 13 loading bays and will manage products for four key regional customers working in the electronics, fashion and industrial sectors.

Pat McGillycuddy, COO, Economic Zones World, whose group company, Gazeley, designed and built the warehouse, said: “We are delighted to have partnered with CEVA to deliver their latest warehouse in Jafza. We are proud to help facilitate their regional expansion.”

Shamsudeen Ahmed, Regional Director, CEVA in the Middle East, said: “We are rapidly expanding our presence in Dubai. We anticipate that our Jafza facilities will grow by a further 65,000 square meters in the next 12 months, taking our total space in the zone to approximately 110,000 square meters.”

Gianfranco Sgro, President, CEVA, South Europe, Middle East and Africa, also explained the regional development strategy: “In the Middle East, we are focusing on serving customers in the oil and gas, industrial, automotive and tyres, retail and fashion, technology and hospitality sectors. Thanks to our global experience and technologically advanced services, we can offer a range of smart and customized solutions to meet sectors’ individual needs.”

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Nine-months results of Kuehne + Nagel prove effective

Schindellegi- The worldwide operating Kuehne + Nagel Group achieved very satisfactory results for the first nine months of the year due to the early, consistent implementation of its dual strategy of strict cost management and commitment to market-share expansion. Gross profit – the relevant indicator of a logistics provider’s volume and margin performance – was 7.3 per cent (currency-adjusted and excluding acquisitions: 4.5 per cent) below the figure of the previous year’s period. Operational result (EBITDA) decreased by 10.0 per cent (adjusted: by 8.2 per cent) and net earnings by 14.4 per cent (adjusted: by 6.4 per cent) to CHF 387 million.

Seafreight

During the first half of the year, the international seafreight market was characterised by significant volume declines; the third quarter, however, saw the first signs of recovery. Leveraging its broad geographic reach and its value-adding product portfolio, Kuehne + Nagel was able to expand market shares in almost all trade lanes. Volumes handled by Kuehne + Nagel increased by 11 per cent from second to third quarter. Compared with the first nine months of last year, the decrease was 8.5 per cent while the overall market declined 16 per cent. As a result of the early adaption of cost structures, the operational result declined just 9.5 per cent compared to the previous year’s period. EBITDA margin was at 5.3 per cent (previous year: 4.4 per cent) despite margin pressure due to rate increases in the third quarter.

Airfreight

The international airfreight market saw a slight improvement in tonnages in the third quarter; therefore, overall cargo decrease slowed to 17 per cent in the first nine months of the year. Kuehne + Nagel increased its market share by intensifying sales activities and expanding its industry-specific solutions. Compared with the second quarter, Kuehne + Nagel increased tonnage by 7 per cent in the third quarter. For the nine months, Kuehne + Nagel’s tonnage decline of 15.5 per cent was less than the overall market decline. Operational result decreased by 16.6 per cent compared with the previous year’s period, while EBITDA margin, despite the third quarter’s rate increases, improved from 5.8 to 6.9 per cent.

Road & Rail Logistics

The European road transport market suffered substantial volume declines during the past nine months, especially in August, when business was impacted by the recession-related holiday prolongation by shippers. Never theless Kuehne + Nagel was able to considerably improve results compared with the previous year, mainly due to the acquisition of the French Alloin Group, further standardisation of processes as well as improved network utilisation. EBITDA margin went up from 1.0 to 1.8 per cent and operational result increased by 50 per cent compared to the previous year’s period.

In order to strengthen the European market position and to optimise operatio nal synergies, national and international overland traffic and contract logistics-related distribution activities will be consolidated under the responsibility of Management Board member Dirk Reich as of January 1, 2010. Management Board member Xavier Urbain, who has significantly contributed to the successful expansion of the Group’s overland business, will terminate his operational responsibility with Kuehne + Nagel International AG on December 31, 2009, and will continue to support the Company’s growth strategy on a consultancy basis.

Contract Logistics

While the contract logistics market continued to stabilise on first half-year level, for the first nine months the business unit’s operational result was still 17 per cent below the previous year. Strict cost control and new business implementation kept the third-quarter operational result nearly level with the second quarter. EBITDA margin decreased only slightly from 5.1 to 4.7 per cent.

Reinhard Lange, CEO of Kuehne + Nagel International AG, said: “We are reasonably satisfied with our results for the first nine months. Our dual strategy has proven effective – we have successfully counteracted substantial volume declines through strict cost management and increased sales activities. As a result, we have continuously expanded our market share and over-proportionately benefited from the third quarter’s business stimulation.“

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Hilti and Kuehne + Nagel enter into strategic partnership

Hamburg - Hilti, one of the world’s market leaders in providing technology to the global construction industry, has entered into strategic partnership with Kuehne + Nagel for the planning, implementation and management of their future logistics locations in Europe.

The cooperation between the Lichtenstein-based group and Kuehne + Nagel started in December 2007 with the construction of the new Hilti logistics centre in Nuremberg. This project, which was planned and implemented and is managed by the logistics specialists of Stute Verkehrs-GmbH, a fully-owned subsidiary of the Kuehne + Nagel Group, laid the foundations for the realignment of Hilti’s logistics processes in Europe.

The state-of-the-art distribution centre in Nuremberg serves as a yardstick for new Hilti locations in Europe and has convinced the customer to choose Kuehne + Nagel as its competent strategic partner for further logistics projects. A dedicated competence team will support Hilti with upcoming pro jects for further optimisation and standardisation of logistics processes.

Joachim Anna, Hilti’s Head of Logistics Europe Central, comments, “Our advantage – apart from being able to concentrate on our core compe tence and leveraging Kuehne + Nagel’s know-how – lies in the fact that cooperation with only one partner naturally leads to reduced coordination and management efforts as Kuehne + Nagel offers one-stop-shopping when it comes to integrated logistics solutions.”

“We see further advantages,” adds Heinrich Becker, Hilti’s Head of European Logistics Management, “in standardised controlling and reporting, which enables us to continuously monitor all locations and processes including the respective key performance indicators. The permanent benchmarking of all locations, be they own-controlled or externally managed, ensures full transparency in all external locations.”

“This maximum transparency and the partnership-based approach form a sound basis for a successful long-term cooperation,” comments Christian Dieckhöfer, Managing Director of Stute Verkehrs-GmbH.

About Hilti
Hilti provides leading-edge technology to the global construction industry. Hilti products, systems and services offer the construction professional innovative solutions with outstanding added value. The headquarters of the Hilti Group are in Schaan in the Principality of Liechtenstein. Further information can be found at www.hilti.com

About Kuehne + Nagel
With more than 55,000 employees at 900 locations in over 100 countries, the Kuehne + Nagel Group is one of the world's leading logistics companies. Its strong market position lies in the seafreight, airfreight, contract logistics and overland businesses, with a clear focus on providing IT-based supply chain management services.

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CEVA Ground launched

Sao Paulo, Brazil- CEVA Logistics, a leading global supply chain management company, has launched its new ground transportation arm, CEVA Ground. This will integrate all service offerings including the process of supplier’s contracts, freight conference, freight audit, loads tracking, performance metrics of the transport management and transport planning.

CEVA Ground will help improve operations performances, which will be instrumental in assisting the Business Development and Logistics Competence Center win new business contracts. The new structure will be implemented immediately and will be driven by a €140,000 investment with the ambition of achieving 10% growth by next year.

In order to achieve effective results, CEVA Ground has been categorized under three core areas: Planning and Transport Purchase, Operations and Transport Products and Management and Transport Control.

Ricardo Melchiori, Director, CEVA Ground, said: “We believe that CEVA Ground will help accommodate our customers’ needs more efficiently as we will have a complete vision of the whole logistics process. Much more than logistics suppliers, we intend to be seen as a strategic partner working closely with our customers.”

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