Kuehne & Nagel acquires majority of Virtual Integration Associates

by Canadian Shipper

Glbal logistics group Kuehne & Nagel has acquired 60 per cent of the Canadian company Virtual Integration Associates (VIA), provider of global supply chain management (SCM) and Vendor Management Inventory (VMI) programs for the electronics industry.

VIA’s parent company, the Canadian Rusgen Holding, owns 40 per cent of the newly formed companies KN VIA.

KN VIA operates nine vendor hubs within the United States, Canada, Mexico, Thailand and China with an annual material value throughput in excess of four billion USD.

From these hubs KN VIA services major electronic con-tract manufacturers (ECMs) and original equipment manufacturers (OEMs) with around 100 components suppliers. Within the next 18 months KN VIA plans to launch another 10-15 hubs worldwide. Access to Kuehne & Nagel’s global logistics network enables KN VIA to provide standardized SCM / VMI-services across the globe.

For the Kuehne & Nagel group KN VIA’s services will complement its existing range of Supply Chain Management products to generate additional revenue for its global International Forwarding and Contract Logistics businesses. VMI-programs claim to offer improved asset utilisation, freight consoli-dation and global visibility across the supply chain.

Implementing a VMI-program allows EMCs, OEMs and suppliers to elimi-nate warehouse space and buffer stock at their manufacturing facilities, reducing the frequency of supplier deliveries with a consolidated Just-in-Time delivery program from the hub. With its 24 hours / 7 days visibility of accurate inventory information, the program enables suppliers to manage their out-bound material supply chain proactively.

Have your say

We won't publish or share your data