Nortel divests logistics services to Kuehne & Nagel

Canada’s beleaguered telecommunications giant, Nortel Networks, is divesting its global outbound logistics operations management business to Kuehne & Nagel.

The move is part of Nortel’s continuing drive to move itself back to profitability by shedding non-core activities.

As lead logistics provider, Kuehne & Nagel will be exclusively responsible for managing the performance of multiple Nortel Networks logistics services providers around the world.

As part of Kuehne & Nagel’s supply chain management strategy, a new legal entity has been established to manage such complex global lead logistics projects.

“We recognized that leveraging Kuehne & Nagel’s excellence in logistics, investment in its IT infrastructure and global presence could further streamline the management of our logistics. Divesting the global logistics operations management to a best-in-class supplier like Kuehne & Nagel enables us to focus our investments and resources on developing and strengthening core competencies that provide differentiated value to our customers," said Richard Lowe, Vice President, Supply Chain Operations, Nortel Networks.

As part of the agreement, approximately 95 Nortel Networks employees, based in 18 countries, are expected to join Kuehne & Nagel. This group will work with Nortel Networks to plan and execute its logistics requirements.

Kuehne & Nagel will manage service providers who deliver the full spectrum of logistics services, including import and export processes, inventory management, warehousing and distribution, and transportation management.