Nortel Networks Ltd., Toronto, has signed an agreement to divest its global outbound logistics operations management business to Kuehne & Nagel International AG.
Kuehne & Nagel will be exclusively responsible for managing the performance of Nortel's multiple logistics services providers around the world, the European-based logistics company said in a statement.
Approximately 95 Nortel employees, based in 18 countries, are expected to join Kuehne & Nagel. This group will work closely with the networking company to plan and execute its logistics requirements. Kuehne & Nagel will manage service providers who offer various logistics services, including import and export processes, inventory management, warehousing and distribution, and transportation management.
The deal extends an existing relationship between the two companies. For about seven years, Kuehne & Nagel has worked with Nortel on increasing order visibility and implementing cost-effective logistics solutions, according to the announcement.
"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, " said Richard Lowe, Nortel's vice president of supply chain operations, in a statement.