Cloud Use Is Lagging Behind in Logistics

• Comprehensive survey of company-wide collaboration in transport logistics and intralogistics
• Presentation of results at “Deutscher Logistik-Kongress” in Berlin

Cross-company collaboration between logistics specialists is increasingly becoming the central focus in facing challenges in international and domestic supply chains. How does IT influence collaboration? And what are the perspectives for digitalization in logistics? These are questions that Bundesvereinigung Logistik (BVL) looked into in a comprehensive study carried out together with Arvato Systems. One of the topics explored was cloud use in logistics. Bernd Jaschinski-Schürmann, Head of Digital Supply Chain Management at Arvato Systems, presented the results of the study at “Deutscher Logistik-Kongress” held last week in Berlin.

More than 590 logistics specialists took part in the study, which provides a comprehensive survey of company-wide collaboration in transport logistics and intralogistics. One of the key findings of the study is that there is still scope for greater cooperation. Retailers, in particular, tend to rate the intensity of cooperation lower than industrial companies and logistics service providers. IT and cloud technologies, even more so, are key factors singled out by most respondents. At the same time, more work remains to be done in logistics, particularly in this area. As it currently stands, only about 50 percent of logistics service providers are working in the cloud to simplify company-wide collaboration. There are a number of key tools and systems that are not yet connected, an area where there continues to be room for improvement. However, most respondents realize that action is needed to address this issue, and companies are very open to investing in related technologies.

“What surprised me most was that around ten percent of companies surveyed are not using any IT systems at all while around 20 percent are not utilizing an ERP or warehouse management system,” reports Bernd Jaschinski-Schürmann. “By contrast, businesses that already rely heavily on cloud technologies see themselves as digital pioneers and are most satisfied with internal collaboration at their company.”

BVL’s Managing Director, Dr. Christian Grotemeier, adds, “Logistics requires that the whole company work as a team. It is essential to supplying consumers and businesses alike. Many companies still have a lot of work ahead of them when it comes to connecting all of their IT systems in order to create an end-to-end, digital supply chain.”

No to data silos, yes to AI and paperless processes

The respondents see a bright future for logistics. A majority of those surveyed believe that data silos will soon be a thing of past and that paperless processes and AI in warehouse operations will grow significantly. Two-third of respondents are likewise of the opinion that companies who share data will be more successful over the long term. Only 21 percent, on the other hand, believe that it is highly likely that freight forwarders will exclusively use digital freight marketplaces in the future.

A majority of respondents give digitalization in Germany poor marks. 56 percent believe that less progress has been made in this area than in other EU countries. The study revealed a number of interesting differences across various areas of logistics. For instance, nearly 70 percent of respondents believe that intralogistics is better positioned (29 percent) or just as well-positioned (40 percent) in terms of digitalization than other fields of logistics. In contrast, only 12 percent of respondents feel that transport logistics is better positioned. Forty-seven percent feel their company has made similar progress to other companies, while 34 percent believe they have made less. It is also worth noting that 61 percent of the respondents see their own company in a better position or at least just as well-positioned as other companies in their industry, while only 35 percent believe their company is behind their competitors.

You can download the complete study here:
arvato-systems.de/besser-zusammenarbeiten

About Bundesvereinigung Logistik e.V.
Founded in 1978, Bundesvereinigung Logistik (BVL) e.V. is a non-profit, nonpartisan organization staffed primarily by volunteers. As a platform for students, scientists, and logistics managers working in industry, retail, and the service sector, it serves as a bridge between business and academia with almost 11,000 members today. Along with that, it also provides a forum for logistics and supply chain management executives to share ideas with colleagues in Germany and abroad.
www.bvl.de