Sparking change in Singapore

For most of us, logistics means transporting things from A to B.

For global companies, a great deal more is at stake.  In manufacturing, supply chains can be especially complex and it isn’t just a case of ensuring raw materials or components arrive in the right place, at the right time. 

Other parts of the business that are integral to the manufacturing process also need to be ‘plugged into’ the supply chain.  This is where integrated logistics comes into its own.

Starting from scratch

In 2018, Kuehne+Nagel was one of several logistics companies to bid to provide supply chain solutions for a British technology company planning to manufacture electric vehicles in Singapore.

Despite being a household name in consumer durables, this new venture effectively saw the business starting from scratch, as its track record was no guarantee of success for this new venture into the global, complex, highly competitive automotive market sector.

The scope of the project

Kuehne+Nagel was asked how, as a logistics provider, it would control the entire supply chain which stretched from the East, in Singapore, to New Delhi, China, to the West in the US, Poland and the UK.

To be effective required full visibility of the supply chain including network control, parts supply, collection services, consolidation, global transport, site transport, to manufacturing and after-market support. 

Our challenge was to manage and optimise the supply chain, using best of breed, transparent processes and data, challenging conventions that might hinder the process.

The project team saw this as a great opportunity to showcase our wares.

Inbound, outbound and a whole lot more

Designing the most appropriate solutions for the new venture, everything was taken into consideration including: 

• Order management

Consolidation centres would receive inbound materials and bespoke management systems would ensure goods, data and payments were always visible to optimise operating costs, lead times and inventory levels.

Delays and other risks would be flagged, via consolidated real-time data from suppliers and service providers.

• Supplier management

Real-time information from various data sources would be extrapolated to minimise or squash cost and inventory issues.

• Dynamic routing

To ensure the most efficient and most sustainable routes were chosen.

• Overseas consolidation centres

These hubs based in key global locations (several in Europe and one in China) throughout the supply chain would be crucial to receive inbound supplies and for storage, picking and packing and onward container shipping. 

The centres would run numerous automated processes and systems to QA inbound supplies, manage claims, analyse the network, manage vendors inventories, automate palletisation, provide robotic wrapping, sequencing, container optimisation, remove unnecessary waste and provide urgent parts via air freight while also planning shipments, customs and trade compliance. 

These state of the art hubs would be highly automated, work to Just in Time (JIT) protocols, transparency, visibility, using multi-lingual interfaces and meet the highest H&SE standards, ensuring greatest throughputs and efficiencies, providing improved delivery service levels.

Space-saving, efficient and operational 24/7 the centres would ensure lithium-ion batteries required zero maintenance and produced emissions-free.

• Singapore logistics centre

The most advanced of all the centres, this would include many of the same systems and processes featured in the consolidation centres but it would also include plant logistics and lineside deliveries.

In addition to the inbound, storage, picking and kitting, it would also feature a special container/trailer/yard management system, a space-saving ‘warehouse on wheels’, as well as an electric shuttle to take containers from the plant to the loading docks.  By virtue of being electric it would reduce diesel fuel emissions by 90% and reduce noise significantly.  It would also feature innovative recycling, disposal, regeneration and zero waste solutions to reduce the manufacturer’s environmental footprint and ensure the safety of its staff.

Ignited but not fully revved

Unfortunately, the company decided not to press on with its electric vehicle manufacturing plans. 

However, it was a fantastic opportunity for Kuehne+Nagel to flex its logistics muscles and put together a project plan that was extremely comprehensive, thorough and well thought-out.  Not only did it achieve the client’s ambitious plans – it actually exceeded expectations by providing far more in the way of predicted productivity levels and sustainability solutions.

Going above and beyond - what our customers say

“We know we can depend on Kuehne+Nagel to provide us with a high-quality service. Through the entirety of the project, they served not just as service providers, but as consultants to us – helping us find solutions and acting as trusted advisers. We’re looking forward to continuing our long and prosperous relationship with Kuehne+Nagel.”

Kuehne+Nagel automotive client

"The development and limited production of the Aspark Owl is an important project and source of pride for us at Manifattura Automobili Torino. Kuehne+Nagel has proven in many occasions to be a fast, reliable and effective partner for the Aspark project: from delivering a fantastic service to ensuring the utmost care and security for the special vehicles. The way teams at Kuehne+Nagel handled Owl while transporting it to Miami was nothing short of impressive."

Manifattura Automobili, Torino