News / K+N centralises business structure: 'to get closer to customers', it claims

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• Ronald Meier

  April 08, 2024 at 1:51 pm

  Do not forget approx 2 decades ago KN had a centralized structure.

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• John Schnitzel

  April 10, 2024 at 2:20 am

  It’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.

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• Jesse Damsky

  April 15, 2024 at 11:34 am

  The 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.

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