Airfreight forwarding a better bet than ocean for investment this year
Forwarders more focused on airfreight will fare better this year than those with a higher ...
© Jonathan Weiss
By Alex Lennane
Kuehne + Nagel appears to be moving closer to a DSV-style organisational structure, announcing today it was “streamlining”, with cluster and national managers reporting directly to the management board.
K+N said the move would create “further efficiency gains and profitable growth”.
It explained: “The new structure will enable business and functional units to sharpen their strategy in line with rapidly changing market developments and implement business decisions even faster. It will also ensure greater global consistency, as well as customer proximity.
“The historically ...
Comment on this article
Ronald Meier
April 08, 2024 at 1:51 pmDo not forget approx 2 decades ago KN had a centralized structure.
John Schnitzel
April 10, 2024 at 2:20 amIt’s concerning to see Kuehne + Nagel moving forward with their restructuring plans. Not only does the layoff of 1% of their workforce equate to around 1000 staff, but the dissolution of the historically successful RX structure raises even more red flags. Operating country organizations from the mountains of Schindellegi will undoubtedly pose challenges, not just due to time zone differences but also because of the crucial country-specific knowledge required for effective decision-making. This move could seriously hinder the company’s ability to adapt and respond swiftly to local market dynamics, potentially resulting in long-term damage to the organization’s competitiveness.
Moreover, by undervaluing the expertise and loyalty of long-serving staff in favor of cheaper alternatives, Kuehne + Nagel risks losing the very essence of what made them successful. This decision also tarnishes the company’s reputation and service quality.
Additionally, this move may inadvertently benefit competitors who now have access to a pool of talented staff, some of whom may harbor resentment towards their former employer. This could lead to strategic information leaks and even attempts to undermine Kuehne + Nagel’s position in the market. Ultimately, the short-term cost-saving measures may pale in comparison to the long-term consequences for the organization.
While international experience is not the sole determinant of effective leadership, it does provide invaluable insights into diverse markets and cultures. Without this broader perspective, decisions like restructuring country organizations from afar may seem more viable on paper but fail to consider the practical challenges and nuances of operating in various regions across the globe. This disconnect between leadership and the realities faced by the company’s global workforce could exacerbate the negative impact of the restructuring efforts and further erode employee morale and trust in leadership.
Jesse Damsky
April 15, 2024 at 11:34 amThe global forwarders tend to have difficulty remaining agile and relevant as they become overly top heavy.
Forwarding is a niche industry in which relationships with one’s customers at the local level is essential as well as the forwarder’s ability to react immediately to changing customers’ changing needs as and when they happen.
The big global forwarders, often armed with the latest and greatest consultant inspired management “paradigm-changing” ideas, tend to sway towards increasing standardization and centralization (ignoring the need for agility), excessive manual reporting on irrelevant or menial matters while ignoring the important ones (such as customers), and extreme HQ politics as those that the top jockey for relevance in an organization with diminishing returns. All of which move them further away from what their customers actually want or are willing to pay for . . . AKA the Damco recipe.
Forwarding is an industry that has suffered a long time from the falacy that the mathematical prowess of its Sr. Staff is a measure of their leadership skills, or that previous professional success of a given executive in a Shipping Line would guarantee success on the forwarding side, unencumbered with things like experience or forwarding knowledge.
I hope K+N can strike the right balance. Let’s see if it works for them.