The power of partnership – an integrated approach to logistics and supply chain

When the skills and experience of a global leader in logistics operations and a global BPO and transformation leader are integrated, logistics management and supply chain planning become smarter, faster, and more effective.

In 1968, a US submarine went missing en route back to its base after operations in the North Atlantic. The US Navy didn’t know where to look for it, because they had no idea how far it had traveled since it last made contact. The best they could do was to narrow the field of search to a 20-mile radius.

A team of experts from different fields was assembled and each asked to submit an individual guess of the submarine’s location. No single expert was close, but when the results were brought together, the collective estimate was just 200 meters off what sadly proved to be the submarine’s final resting place.

Logistics and supply chain – An integrated approach

This story tells us that the whole can be greater than the sum of its parts – and that it’s better when experts pool their knowledge.

In this and the following article, we’ll explore this principle and its application to supply chain management. All too often, supply chain functions can be disconnected and siloed. This impedes visibility across end-to-end operations and increases inefficiency, leading in turn to the risk of poor customer experience and satisfaction.

Capgemini and Kuehne+Nagel’s partnership brings together experts to deliver outcomes of greater value than could be achieved working separately. Planning and logistics functions are integrated, and workflows can be orchestrated and automated. This results in an advanced supply chain platform, a harmonized data model, best-in-class supply chain performance – and happy customers.

The parts…

I said that the whole can be greater than the sum of its parts. Let’s look for a moment at those parts.

Kuehne+Nagel is a global leader in logistics operations and is recognized as a Visionary Leader in by Gartner’s Magic Quadrant. Its strengths are in logistics management, including standardized processes and in-depth market intelligence.

Capgemini, on the other hand, is a global leader in business process outsourcing (BPO) and digital transformation. HFS Research has recognized Capgemini as a Market Leader in Supply Chain Services for its ability to drive key supply chain outcomes and deliver improved customer experience.

… and the whole

Now let’s look at what happens when Capgemini and Kuehne+Nagel come together.

To achieve accurate planning and effective decision-making, Capgemini needs the kind of knowledge an experienced logistics management company can provide. This includes an in-transit view of stock; accurate logistics lead times for planning accuracy; direct control of logistics execution; and timely/complete information if disruptions occur.

These requirements are met by Kuehne+Nagel’s experience in the control and execution of global logistics, in terms of what is happening in transit; of what to do if there are disruptions; of putting a plan into execution rapidly; and of access to accurate lead time analytics and predictions.

By contrast, Kuehne+Nagel requires greater and earlier access to information derived from data. Specifically, it seeks a greater understanding of the bigger picture in terms of areas including inventory, market demand, and future orders. Gaps in knowledge of this kind can affect the ability to make autonomous, intelligent decisions with service, costs, and working capital trade-offs in mind.

Kuehne+Nagel’s requirements are met by Capgemini’s ability to aggregate knowledge from data drawn from across the enterprise. This helps provide a holistic view in areas such as demand changes, distribution center inventory, operational trade-offs, and the overall supply situation.

It’s clear that the skills and experience of each organization meet the needs of the other. Together, we can better integrate logistics management and supply chain planning and forecasting, making them smarter, faster, and more effective.

Award-winning innovation

In the next article, we’ll outline the challenges organizations typically face in these areas – and look more closely at Kuehne+Nagel and Capgemini’s combined offer and the results it can achieve.

Finally, we’re really proud to announce that Capgemini and Kuehne+Nagel have won the 2024 BIG Innovation Award for End-to-end Supply Chain Orchestration. This award is testament to the strength and uniqueness of our partnership, and our joint creativity and passion for driving innovation.

To learn how Capgemini and Kuehne+Nagel’s partnership can transform your operations to drive next-generation supply chain performance, contact: joerg.junghanns@capgemini.com or john.hancock@kuehne-nagel.com

The blog was co-authored by John Hancock, SVP, Head of Logistics Development for Integrated Logistics at Kuehne+Nagel. John is responsible for delivering innovative and distinctive extended value chain services – a pivotal component of K+N’s Integrated Logistics 2026 strategy and 2030 vision.