Kuehne + Nagel has signed a contract to provide lead logistics and global supply chain solutions to
Celestica Inc., specialised in electronics manufacturing services (EMS). The agreement combines Kuehne + Nagel’s supply chain management capabilities with Celestica’s design and manufacturing expertise to deliver integrated global services and solutions to original equipment manufacturer (OEM) customers.
Under the two-year agreement, Kuehne + Nagel’s Lead Logistics Solutions unit will provide transportation and logistics management services to Celestica, including contract administration / bid management for logistics
services, global performance management of logistics service providers, global metrics management, in-transit visibility, logistics network analysis and design, and project management / execution of supply chain-related
improvement opportunities.
In support of Celestica’s strategy to streamline the flow of products from its suppliers to manufacturing and on to the end customer, Kuehne + Nagel is also evaluating existing operations and systems and identifying
improvement opportunities at various global manufacturing and warehouse facilities, according to Richard Williamson, Director of Global Logistics & Trade Compliance for Celestica. The agreement enables Celestica to focus on strategic initiatives and core business while enhancing its ability to offer expanded services and time-to-market benefits to customers.
“The combined capabilities of the two companies can help to drive Celestica’s innovative Ring Strategy™, which centers suppliers around key sites to provide market-centric, customer solutions at the lowest total cost of ownership (TCOO™),” said John Boucher, Chief Procurement and Supply Chain Officer, Celestica. “Kuehne + Nagel’s global presence, access to new markets and proven track record of supply chain management will support these goals and deliver value to our customers.”
“Today, EMS companies are under intense cost pressure and global competition to increase product and service solutions while reducing costs,” said Peter Haver, Vice President, KN Lead Logistics Solutions. “We are
pleased to have the opportunity to provide Celestica with a global supply chain management solution that will enable Celestica to offer expanded and cost-effective services to its global customers.”