Proving the Business Case for the Internet of Things

Kuehne & Nagel smoking with BAT collaboration

Steve Rogerson
February 5, 2015

Kuehne & Nagel and British American Tobacco (BAT) are extending their collaboration by implementing global integrated logistics. The concept widens the scope of activity carried out by K&N for BAT and sees the two organisations collaborate further to drive innovation in BAT’s existing supply chain.
The new Global Marine & Air Logistics Service Centre (GMALSC) concept integrates all BAT’s global air and sea freight flows into a single logistics control tower structure. In contrast to previous commodity-specific and geography-specific models operated by K&N, which dealt with BAT’s Global Leaf Pool and Asia-Pacific requirements independently, GMALSC facilitates end-to-end supply chain management across all commodities, inbound and outbound, around the globe via one information platform.
“Through GMALSC we are taking an important step towards realising our future supply chain,” said Dave Anderson, global head of supply chain for BAT. “The service provided by Kuehne & Nagel is now fully integrated into our target operating model, providing increased efficiency and flexibility to meet the developing needs of our global business.”
This platform enables full visibility of product moves at all stages, supporting better decision-making for BAT. In addition, standardised global processes are combined with local knowledge through K&N’s global air and sea network to enhance efficiency.
“The market in which BAT operates is changing rapidly,” said Tobias Jerschke, K&N’s global head of integrated logistics. “Through our close partnership and the further development of Kuehne & Nagel’s control tower solutions, BAT can respond quickly to new challenges.” 
BAT’s tobacco brands are sold in more than 200 markets. It employs more than 57,000 people worldwide and has over 200 brands in its portfolio, with its cigarettes chosen by one in eight of the world’s one billion smokers. BAT has leadership in more than 60 markets around the world. The group generated £5.5bn profit from operations in 2013.