Logistics.ru: Why have you decided to be a partner of RARU 2014?
Perry Neumann: Kuehne + Nagel is offering dedicated logistics solutions for sports events. As partner of RARU we can bring in our logistics know-how and expand our activities in this sector.
Logistics.ru: Did you support other projects like RARU?
Perry Neumann: RARU or the Race Across Russia is the first project we are supporting in this respect.
Logistics.ru: What was the involvement of Kuehne + Nagel Russia in Sochi this year?
Perry Neumann: In Sochi we were responsible for sea- and airfreight inbound cargo from several parts of the world and we provided truck transportation in Russia. Further services included customs clearance, warehousing, delivering to the venues and we also managed a logistics information desks during the event.
Logistics.ru: What challenges do you expect from RARU?
Perry Neumann: First of all Kuehne + Nagel is able to cope with challenges. As for RARU there could be the need to deliver some emergency parts en-route, but in general we expect standard logistics requirement.
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Logistics.ru: Will you dedicate special employees for this particular project?
Perry Neumann: Mainly for the start and finishing we have dedicated people in place and additionally we provide standby experts in case any special services are required.
Logistics.ru: As it is already the middle of the year, what can you say about the position of Kuehne + Nagel in terms of plans and facts?
Perry Neumann: Over the last six months the business has been developing well. The market in Russia is heavily fragmented but still huge, which means that it is offering a lot of business opportunities for Kuehne + Nagel. For the time being 800 employees here in Russia operate 18 locations.
Logistics.ru: In my understanding, Kuehne + Nagel is very strong in international freight, but not so much in domestic. Are you going to develop in this direction and what products are you going to evolve?
Perry Neumann: In terms of domestic airfreight we are one of the two market leaders, regarding road freight our contracted fleet is quite small and, of course, we need more presence in the regions. That is the reason why we are currently working on a strategy concept to establish an advanced domestic overland network in Russia, covering a certain number of main cities.
Logistics.ru: Will Kuehne + Nagel invest in manpower? What activities does it include?
Perry Neumann: It depends on the outcome, at the moment we cannot tell any numbers. In general we are also planning to invest in facilities within the region, especially in cross-dock facilities, so that we have the main haul, for example, to Samara and from Samara via our cross-dock. We will then do the last mile to the customer or to the final consignee.
Logistics.ru: What customers dominate in your portfolio – foreign or local? What is the share of local customers?
Perry Neumann: It depends a little bit on the service we are rendering. For instance in contract logistics we are mainly working for international customers. These prefer to work with a global logistics company like Kuehne + Nagel as they are already familiar with our services portfolio from other countries. In general I think that we have a good mix between international and Russian customers.
Logistics.ru: Are there any differences in customer requirements comparing to the previous years?
Perry Neumann: To a certain extent, yes. With the WTO access to the Russian market we can see globalisation progressing. These developments increased the trend towards more complex logistics solutions, especially for our Russian customers. There is also a higher awareness of cost saving opportunities through streamlined supply chains.
Logistics.ru: What are 3 main operational products you will focus on until the end of the year?
Perry Neumann: Firstly we will intensify our focus on the domestic road freight as already mentioned. Secondly we want to improve our infrastructure regarding contract logistics and thirdly we will expand out sports logistics services.
Logistics.ru: Do I understand right – you don’t have your own truck capacities and you work with contractors?
Perry Neumann: We are completely non-asset based in Russia, so everything what we provide are services via subcontractors and partners, but you will see certain branded Kuehne+Nagel trucks. In general we understand ourselves as the architect of transport, logistics and processes and we operate on a very lean basis.
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Logistics.ru: What are your strongest services – customs clearance, warehousing or transportation?
Perry Neumann: We are strong in all the fields. In Russia you have to be strong in customs clearance because customs is the door-opener to gain logistics business. Sometimes, the requirements of customers are not in first instance so much focused on logistics. Many customers are primarily looking for a customs clearance solution and providing a valuable solution is often the first step for advanced logistics services.
Logistics.ru: Will you invest in IT solutions?
Perry Neumann: In general Kuehne + Nagel is constantly investing into the development of new IT solutions, but this is done on a global rather than a local level.
The company has sophisticated and uniform IT-platforms in place, with some market-leading services for our customers. A good example for this is the new airfreight product KN FreightNet, where customers can request, compare and book airfreight quotes online. So far customers needed to use the phone or email to book, so this new solution is really a benchmark within our industry.
Logistics.ru: What business industries have the most dynamic growth and which of them are interesting for Kuehne + Nagel?
Perry Neumann: Oil and gas, automotive, FMCG, retail – with a very strong focus on fashion logistics, hi-tech & industrials.
Logistics.ru: What do you think of logistics for e-commerce?
Perry Neumann: E-commerce is a wide range and we are involved in fulfillment services, but it depends finally on what customers are expecting. For one customer in our warehouse we are delivering to private customers and the offered services include pick/pack activities, commissioning and web order processes. Additionally we are able to provide web shop solutions to small and mid-sized companies.
Logistics.ru: What contribution makes Kuehne + Nagel Russia to Kuehne + Nagel International?
Perry Neumann: Eastern Europe is one of Kuehne + Nagel’s fastest growing regions and Russia geographically is the largest country. We have seen a successful development within the last years and we are positive that this trend will continue. As a stock listed company we are not providing country specific numbers.
Logistics.ru: Is Kuehne + Nagel Russia responsible for other CIS countries, such as Kazakhstan and Belarus? Do these countries have their own representation offices?
Perry Neumann: With the exception of Belarus, which is reporting to Russia, all countries of the Eastern European Region are reporting to our regional head office in Vienna. We also have a legal entity in Kazakhstan, which is part of our Middle East/ Africa region with its head office in Dubai.
Logistics.ru: Being Managing Director of the company, comment on what requirements are set for CEO in Russian companies?
Perry Neumann: First of all, I’m German, so when you come to Russia, you cannot implement your German mentality one-to-one.
Logistics.ru: How have you adopted for Russian mentality?
Perry Neumann: Every foreigner who comes to Russia has to adopt and it helps to understand the people and culture and this process naturally takes a certain time. I have now been in Russia for eight years and my language skills are unfortunately still very basic, but I think I understand Russia and Russian people very well. My wife is Moskovite, my son was born in Moscow and has a German and a Russian passport. My daughter will be born in August, also with a German and a Russian passport. I have a “vid na zhitel’stvo” as well as a Russian driving license, so I think it’s important when you really want to be successful and integrated in the country.
Logistics.ru: And the last one. This article will be read by your potential customers. What do you want to tell them?
Perry Neumann: What I would like to tell potential customers is, that we are permanently improving and developing our solutions for the Russian logistics market. We want to be the logistics partner who supports to increases the success of our existing and potential customers in this market. Our global presences combined with our local market expertise are a valuable asset for our customers in Russia. And we deliver as promised!
Yrysbek Tashbaev | Editor | Logisтics.ru Branch Portal | +7 916 685-1016 | yrysbek.tashbaev@gmail.com
