Sustainability Report 2016

Security and Dangerous Goods

 

Management Approach

Kuehne + Nagel focuses on the following:

 

  • Establishing a secure and stable environment for its staff, customers and assets entrusted to us.
  • Reducing security vulnerabilities by monitoring and analysing incidents followed by the implementation of appropriate counter-measures.
  • Developing, in cooperation with IT Security, appropriate measures to protect information data assets against unlawful interference.

In international trade, security along the supply chain and risk mitigation are top priorities. Kuehne + Nagel has developed a security management system compliant to the ISO 28001 standard which is applied worldwide. This security management system also meets the ‘Framework of Standards to Secure and Facilitate Trade (SAFE)‘ regulatory norms of the World Customs Organisation as well as the ‘Customs-Trade Partnership Against Terrorism‘ (C-TPAT) of the US customs and border protection authorities. Our Global Quality Expert Team Security (QUEST) is responsible for permanently reviewing the security policy, updating and/or adjusting the standards, analysing security incidents and specifying appropriate countermeasures. Audits carried out by QSHE also ensure that the standards are implemented in the national subsidiaries of Kuehne + Nagel.

 

 

Highlights

  • The number of security incidents at global level has significantly decreased by more than a third over the past two years.
  • The loss of commercial value of commodities has decreased by over 20 per cent within the same time range.

Furthermore, in 2016, 31,985 employees in 98 countries were trained in security awareness.

 

 

Security Initiatives

Kuehne + Nagel is globally certificated according to C-TPAT and holds 35 Authorised Economic Operator (AEO) certifications in 26 countries. Also, we had 11 re-certifications in accordance with the BASC standard (Business Alliance for Secure Commerce). Further, 13 Kuehne + Nagel logistics centres had been certified in accordance with the Facility Security Requirements (FSR) of TAPA (Transported Asset Protection Association) and sites in accordance with the Trucking Security Requirements (TSR).

 

For industries with extended security requirements across the entire supply chain, e.g. high-tech, pharmaceutical and luxury goods sectors, Kuehne + Nagel  developed the transport solution KN SecureChain which is based on the requirements of the ISO 28001 standard and ensuring compliance with industry requirements.

 

 

Performance Indicators

Kuehne + Nagel constantly measures the robustness and performance of its supply chain security management system by means of the following criteria:

 

  • Total number of security incidents within defined time intervals.
  • Total affected commercial value of assets within defined time intervals.
  • Comparison against industry trends with renowned international organisations and initiatives.
  • Affected commercial value of assets rate to gross profit.

 

Targets

For 2017, we have set the following targets:

  • Introduction of web-based security incident reporting scheme
  • Expansion of KN SecureChain network
  • Continuation of global security awareness training campaign

 

Driving Change

Kuehne + Nagel started working with the International Road Transportation Union (IRU) with the purpose of developing innovative industry solutions that contribute to increasing security conditions for road transportation. Currently, the participants also collaborate by providing information on where to find secure parking locations. Kuehne + Nagel’s further efforts consist of carrying out a risk assessment of various routes in order to provide the drivers the best and most safe route based on available information.

 

 

Dangerous Goods

Kuehne + Nagel has developed and rolled out a global dangerous goods policy which combines the regulatory framework for dangerous goods with the ISO 9001 and OHSAS 18001 standards and follows their continuous improvement cycle of Plan–Do–Check–Act (PDCA). Also included are Kuehne + Nagel values and procedures, such as information on finding hidden dangerous goods, restricted dangerous goods and the internal approval process.

 

The internal approval process works along the ‘four eye principle‘ and ensures that all dangerous goods consignments are checked over by at least two qualified employees. To achieve this, a global network of Dangerous Goods safety advisors in all business units supports the operational teams. In 2016, this network was expanded to include all business units and all regions with nearly 200 new safety advisors trained.

 

As part of the internal policy, local inventory lists, local legal register and local dangerous goods risk assessment were created and each site has implemented the control measures identified, to ensure that all regulatory and internal requirements are met.

 

Through rigorous auditing gaps and procedural weak spots in documentation and training were identified and closed. Legal compliance in Airfreight and Seafreight went up to 95 and 92 per cent, respectively, and in Overland and Contract Logistics, compliance levels were in the high 80s, based on a sample of 151 audit reports.

 

To support operational staff to retain an overview of the ever more complex regulations surrounding lithium batteries, internal guidance was released and updated in line with the regulatory framework. For 2017, the audit questionnaire for dangerous goods will be completely reviewed and updated, allowing the use of a substantially increased samp