Sustainability Report 2016

Supplier Management


Management Approach

QSHE is an integral part in all our operations and in our way of thinking. The QSHE community works alongside all Kuehne + Nagel business units to ensure alignment. However, our responsibility does not end here; we extend it to our suppliers. Inter alia for this purpose, we have set up a Supplier Management Tool (SMT), an online application, where all suppliers across Kuehne + Nagel’s business units are captured based on operational, legal and compliance criteria.



The immediate goal of the SMT product is to:


  • Provide a standardised solution allowing all business units to evaluate and qualify their supplier base in order to ensure both compliance and service quality.
  • Reduce the quantity and increase the quality of Kuehne + Nagel's supplier base which results in improved operational efficiency, reduced costs and minimised risk.


In the hazardous materials, pharmaceutical and high-value goods sectors in particular, this database can be used to identify the most suitable suppliers and business partners on the basis of individual customer requirements, helping to optimise the customers’ supply chains.


Every three years, we evaluate our suppliers. The SMT provides automated reminders of when to carry out these assessments. Based on these evaluations, the supplier’s contract will be either renewed or rejected.




During 2016, we had 30,000 registered suppliers in the United States and Europe. Out of these, 19,000 (49 per cent) were evaluated.




Furthermore, as part of our efforts to continuously improve, in 2017 we plan to finalise the global rollout of the Supplier Management Tool. Customers will benefit from an improved SMT, creating transparency, reducing risks and better compliance with customer requirements and regulations.