Kuehne & Nagel believes in recruiting, retaining and developing employees through succession planning WHEN SHOPPING IN Hong Kong, the ready availability of consumer products and imported foods is often taken for granted. The goods just seem to magically appear on the shelves every day. What is the secret to on-time replenishment? The reality is that without logistics firms, Hong Kong consumers would not be able to enjoy their favourite foods such as fresh Swiss yogurt, Columbian coffee, British biscuits and Thai prawns. These are just some of the products that Kuehne & Nagel imports into Hong Kong. The company also imports goods for other sectors, including industrial goods and chemicals, pharmaceutical and health-care products, consumer durables, hi-tech goods and automotive parts. Kuehne & Nagel is a global logistics provider, with more than 40,000 employees in 750 locations across 100 countries, making it a serious player in the freight, airfreight and logistics business. Franz Hasenohrl, Kuehne & Nagel's director of sales and marketing (Asia Pacific), views logistics as the extended arm of the customer. 'Along a customer's supply chain, we collect, dispatch, clear customs and carry out local handling and delivery,' he said. According to Mr Hasenohrl, one of the reasons the company has been able to provide high-quality logistics management for more than 116 years is that it has always realised the importance of recruiting, retaining and developing employees through succession planning. Similarities can be drawn between logistics and succession planning. While logistics involves getting the right goods to the exact place on time, succession planning is about getting the right candidate in the right job at the right time. Both are crucial for business success and long-term thinking. 'A company is only as good as its employees and our employees are our biggest asset,' Mr Hasenohrl said. 'We have always undertaken succession planning. You can only survive with the best-quality staff.' The core principles of logistics and succession planning appear to be the same and both have seen changes over the years. One of the primary catalysts of transformation has been the internet. Today, just about everyone has access to it, which in itself has brought opportunities and threats to the logistics industry. The internet facilitates more efficient logistics. It also allows better communication between business and customers located in different parts of the world. On the other hand, the internet, along with the growth of headhunting firms, has made it easier for employees to find opportunities elsewhere. The ease with which employees can change jobs makes it all the more important to have a pool of staff readily available should a key member suddenly leave. A part of Kuehne & Nagel's succession planning involves developing such a manpower pool with core transferable skills. High staff retention levels are also important. 'We achieve high staff retention levels because of good employee conditions and a structure that allows staff to develop. 'Over 75 per cent of senior management positions are filled internally. All positions are advertised over the company's intranet. The best motivator is internal promotions,' Mr Hasenohrl said. Succession planning helps employees develop their potential. Kuehne & Nagel uses a variety of developmental activities, including traditional educational programmes, formal feedback and job rotation. According to Mr Hasenohrl, staff can move upwards or find lateral opportunities, which are often needed if a person needs to develop a few skills that are absent. Mr Hasenohrl said the company consistently invested in training and further education of its employees and these activities had been brought together under the umbrella of the Kuehne & Nagel Academy. The training and education programmes include an international induction programme, standardised training courses for IT applicants and management training courses. A strategic management development programme for staff has been identified, which consists of workshops with international business schools. The participants learn how to innovate and develop logistics strategies and build general management competency. Kuehne & Nagel also develops its top-tier executives by matching their interests and career development to a future job in the company. 'We give our senior staff a high degree of decision-making powers. They are entrepreneurs. 'If someone has a particular career path in mind, we will help coach them along, ensuring that their skills are put to the best use for both Kuehne & Nagel and its customers,' Mr Hasenohrl said. Logistically speaking Increase in world trade is ensuring a greater demand for logistics specialists Succession planning has become important in the industry Candidates can develop as they have clear career paths Rotation is offered between specialist and generalist positions Excellent training programmes Opportunity for extensive travel through international placements