The world’s largest logistics operator for container shipping, Kuehne & Nagel is looking to take over the company that would enable the implementation of state-of-the-art freight-processing systems.
Detlef Trefzger, Chief Executive Officer at Kuehne & Nagel, emphasized that the company is „looking for transformational elements,” meaning a firm that would „add technological competencies,” reports Bloomberg. Another direction of development is acquiring new markets „with a strong focus on Asia.”
Along with the consolidation trend that has overcome the global logistics market, Kuehne & Nagel recently purchased Quick International Courier based in New York. The company specializes in delivering critical shipments to entities in the health care and aviation sectors.
Kuehne & Nagel, which employs 79 thousand people and has a market value of 16 billion dollars, analyzes the acquisition of many companies but does not mention specific names. It is particularly interested in companies that will accelerate automation and digitization. The tycoon prefers to prevent a situation where any start-up could threaten the company’s business with breakthrough technology.
The department responsible for the supply chain and warehouses in Kuehne & Nagel is already investing in technological solutions that streamline logistics processes. It equips staff with intelligent glasses, voice tools and drones, which accelerate the inventory of, among others, in Utrecht, the Netherlands. The company also spends 250 million Swiss francs a year improving software and management systems, Bloomberg says.
We’re eagerly working on developing the silver bullet that will change the industry,” adds Trefzger.
Editor’s comment
K & N message is quite unusual. One could paraphrase it in the following way: we have a suitcase of money on the desk, come with an idea and take the cash. This means more or less that the operator realized how big is the potential of the digital revolution, which increasingly becomes part of transport and logistics. This is not a trend anymore, but a digital tornado, which has already swept not one giant on its way. Who remembers companies like Kodak or Nokia? Ten years ago, none of us could have imagined that these companies could fall from the ranking of the largest brands in the world, let alone go bankrupt.
However, it’s 2018. Kodak and Nokia are no longer business icons, and the digital revolution is irreversible.
For those who are immune to change and cling tightly to their business model, digitization is a lethal threat. In turn, for conscious companies, it is a great opportunity to grow, increase market share or raise new segments.
A wise leader will be able to predict where and when a digital tornado will hit and find a way out of the situation. K & N tries to react through acquisitions because it knows that in today’s economy, a capable group of programmers and business practitioners is able to create a startup that will overthrow even a giant. So you can create something from scratch or buy someone’s idea – as K & N does. However, you cannot sit back and do nothing.
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