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Tender management Global teamwork
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18 INSIDE
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Tender management:
Global teamwork
The preparation of tenders for complex transport and logistics ing about prices for a European domestic
operations calls for a thorough knowledge of all aspects of project. More and more orders now call
for intermodal solutions, combinations of
international transport. For Kuehne + Nagel’s sea- and air- road, rail, air and ship transport. Coordi-
freight operations the Business Development Group (BDG) has nation across business units operates
the exacting task of drawing up the frequently voluminous bid smoothly, and information exchange
documentation. A prime example of international cooperation, keeps all those involved up to date with
the latest developments.
as can be seen from the following look at a typical day’s work ...........................................
for this team of specialists The team in Hamburg is
pressed for time: A large
tender must be given a
final check before it is
A cup of hot coffee and a the priorities lie. And flexibility is a core handed over to the customer. This is a
full inbox: In London, competence of the BDG: At one moment 30-page bid document for a worldwide
Ashvin Mohindra is get- the seafreight export manager from Chi- contract involving more than a thousand
ting a picture of the tasks na is on the line, and the next moment individual routes for container and
that await the European BDG team in the one is discussing margins and capacity groupage cargo. It is a case of “all hands
day ahead. The long list of e-mails con- with the global head of airfreight. to the pumps”. But teamwork is the cen-
tains a great deal of information and ........................................... tral strength of the BDG: “One for all, all
many queries about various ongoing ten- The teams in Africa and for one” is the motto. That also applies to
der projects. Shortly before finishing work the Middle East are like- the colleague from Toronto, who visits
for the day, the team’s colleagues in Asia wise already in action. The the office as part of a four-week pro-
began processing a new customer inquiry, phone rings in London: gramme under which he is helping to
a Request for Quotation (RFQ). In view of Sarah Donmez, the colleague from Istan- exchange experience and ideas for
the globalisation of the flows of goods, it bul, has some queries about a quotation improvements between Germany and
is hardly surprising that three quarters of made the day before; some points about Canada.
all quotations involve at least one Asian service levels are not quite clear. And, of
country. course, time is short, for the customer
........................................... needs a reply today. In the last few years Bernhard zur Strassen, Vice President Global
As its working day draws to the smaller BDG teams in Africa, the Mid- Business Development (far right), with a
a close, Bryan Chan’s team dle East and South America have grown part of his international team at last year’s
in Hong Kong is making more and more important. For instance, BDG meeting in Schindellegi
preparations for an up- one quotation in three now contains
coming workshop of the automotive African price components; a growing
industry where the experts from Kuehne number of requests for quotations even
+ Nagel are invited to speak about their originate from this region and are coordi-
experience in modern tender manage- nated from there. It is fortunate that
ment. But he has to drop this task when Kuehne + Nagel has the support of a
he is called to the phone by current daily worldwide organisation.
business. The head office in Schindellegi ...........................................
urgently needs a risk analysis to evaluate In the meantime the col-
the potential of a leading customer in the leagues from the road &
retail trade. There is no doubt as to where rail business unit are ask-
KUEHNE + NAGEL . . . . . . . WORLD NO. 1/2009
INSIDE 19
.......
In New York, in a second
round of bidding a produc-
er of electrical appliances
Business Development Group
is asking for improvements In Kuehne + Nagel’s individual business units, different teams are responsible
in last week’s tender. The stated target for the punctual responding to tenders for complex customer contracts. In sea-
price shows the BDG team how its offer and airfreight this responsibility lies with the Business Development Group, a
is positioned in the race. There is just team of 34 specialists in nine places located all over the world. In addition to
enough time for a second tender before punctuality and the reliability and capacity of the network, the price naturally
Francis Blackmore and his team have to is also an important criterion for the customer’s choice of logistics providers.
tackle the next project in the after-
noon: an Internet auction for an RFQ After the important preliminary work of the colleagues from Sales and Key
from a pharmaceutical manufacturer in Account Management has opened up the opportunity to participate in a
the Fortune 500 list. With this tender, tender-bidding process, the BDG gets to work and analyses the specific chal-
Kuehne + Nagel is in the lead on two lenges of each inquiry. After consulting the regional contact persons in the
out of five parts of the contract. The Kuehne + Nagel organisation, the outlines of an individual customer solution
New York airfreight manager is not dis- are drafted. The tasks of the team include determining the necessary infra-
satisfied with this interim score, but structure and capacity, costing, and the discussion of the calculated margin
decides to make a few more inquiries by with the management. Finally, the offer must be presented in writing in the
telephone. And in fact, after the evalu- form specified by the customer. A decision-making process normally goes
ation of alternative routes and airlines, through several rounds; in each round of the contest, parts of the tender
the colleagues in São Paulo are able to must be improved or specified in greater detail in order to gain the edge
make a still more attractive offer for a over competing bids. If a tender fails to win a contract, the BDG team
section of the transport route. The team analyses the reason and seeks possible improvements for future competitions.
does want to secure this strategically
valuable contract even if it does mean
bending over backwards.
...........................................
Hardly has the new offer
been sent out, when Carla On the other side of the has just been awarded a 50% share of
Kaiser in São Paulo is off ocean in Europe, all proj- a contract to handle transatlantic ship-
to a meeting with her col- ects are now progressing ments amounting to several thousand
leagues from the legal department and and under control. In TEU for a large international industrial
Key Account Management. Adjust- Frankfurt the first feedbacks for an air- company. This means it has further
ments are needed to a few details of freight tender from the consumer goods increased its share of business with this
the liability conditions for a tender to a sector are coming in and need to be important customer. And the phone is
large high-tech customer. Worldwide, at checked. A flair for figures and fluent already ringing: The project manager
any one time the BDG team is always English are an absolute must in this job. congratulates the BDG team on this
working on between 15 and 20 projects But it is also important to know where success and thanks them for their first-
of different sizes and complexities and freight rates currently stand and how class work. Not a bad end to another
from different regions, some in the they are likely to develop, quite apart hectic day, thinks Jasmin Kulke. While
analysis phase, others already in the from a basic understanding of the organ- she makes her way home, her colleagues
second or third round, and others close isation and processes within a global on the other side of the Atlantic still
to completion. The traditional peaks in logistics group. For the BDG team stand have a good deal to do, and in a few
the first and last quarter are progres- face to face with experienced experts on hours the next day’s work will begin for
sively giving way to a full work load the the customer’s side. the team in Hong Kong. One thing is
year round. And, of course, the “most ........................................... certain: her inbox will be full again
popular” inquiries come just when a In Hamburg a single mes- tomorrow morning.
number of team members plan to go on sage stands out in the
holiday… mailbox: Kuehne + Nagel
KUEHNE + NAGEL . . . . . . . WORLD NO. 1/2009
