Preparing for every eventuality

AHEAD of the exhibition, more than 2,500 service providers, shippers and suppliers gave their assessment of the situation across the logistics industry in the trend index.

While some are pessimistic about the future, overall, the industry is in a robust position. What unites them is the shortage of skilled labour and drivers in a market environment shaped by inflation. Under the motto “experience connectivity”, the focus is on collaboration along the supply chain, and trade fairs are more important than ever.

One in three companies expects a downturn, while a two-thirds majority is already prepared for it. Preparing for every eventuality, around three quarters expect further disruption in the supply chain.

Smaller companies are harder hit by inflation, price and competitive pressure. Larger companies see themselves challenged more by the shortage of energy and raw materials, as well as disruption in the logistics value chain. These are mainly macroeconomic, demographic or geopolitically induced problems that exert little influence on individual companies. It is against this background that the trend index identifies the challenges facing the logistics industry.

Staff shortages

Across all industries and company sizes, every second respondent is affected the most by problems due to staffing issues. Suppliers and logistics service providers, as well as medium-sized and large companies push up the average to over 50%. The shortage of drivers aggravates the situation for almost one in three companies.

Supply chains under pressure

Inflation and growing price and competitive pressure are putting a strain on more than one in four companies. These issues are among the challenges for two thirds of small and medium-sized companies.

Innovation on a small scale

Logistics of the future can be designed today to be smart, fast and clean. The focus is on collaboration with other players and the use of alternative drives. In addition, logistics must be able to pool across providers and shift goods flows. What works on a small scale also applies to large logistics chains.

“Many of our challenges need more collaboration in the logistics chain. At transport logistic in Munich, it’s quick and easy for us to bring everyone involved together. We jointly develop ideas with suppliers, shippers and consignees,” Axel Plaß, President of the German Association of Freight Forwarders and Logistics (DSLV), explained.

“Logistics can assume its place as the third-largest industry with confidence. Each individual company can contribute to that by drawing positive attention to the successes. Logistics companies tackle problems and optimise processes. In an age when resources are becoming increasingly scarce, that is more important than ever. At transport logistic, the logistics industry can demonstrate over four days how attractive and innovative it is,” Stefan Rummel, Managing Director of Messe München, concluded.

RESILIENCE is omnipresent in many areas of the airfreight and logistics industry. That’s one of the reasons why it will be high up on the agenda during air cargo Europe and transport logistic.

The German Logistics Association (BVL) has published a white paper ahead of the event exploring resilience.

Strong supply chains

The logistics industry faces the challenging task of creating more resilient value chains that satisfy the basic conditions of the VUCA (volatility, uncertainty, complexity and ambiguity) and BANI (brittle, anxious, nonlinear, incomprehensible) world.

Just a few years ago, the focus in planning value chains was still on the lean concept. Today, alongside minimising costs, delivery capability is playing a greater role in the planning, while at the same time calculating risks. That makes the planning more complex and hence also the methods and tools that are used.

Potential for optimisation

The authors Dr Martin Schwemmer, Managing Director of the BVL, and Saskia

Sardesai, deputy department head of Supply Chain Engineering at Fraunhofer IML, classify the situation and the latest developments. On that basis, they have specified potential strategies for how companies can make their value chains more resilient. Accordingly, cost accounting, procurement, IT and digital infrastructure, and collaboration beyond company boundaries are the main areas that offer potential.

Conference focus

The BVL session during transport logistic on “The Influence of Geopolitics on your Supply Chain - Current Classification and Outlook” (9th May, 1 to 2 pm, Forum Hall B2) will explore this and other aspects. It will be hosted by Dr Tilo Bobel, Global Head of Continuous Improvement, Lean and Automation at A.P. Moeller Maersk.

The speakers will be Dr Udo Lange, President and CEO of FedEx Logistics Memphis, Andreas Schulz, Head of Main Department at TRUMPF Werkzeugmaschinen, Thomas Heck, Partner and Head of the China Business Group in Germany & Europe at PwC, and Wolfram Senger-Weiss, CEO at Gebrüder Weiss.