Do it boldly" was the motto of the German Logistics Congress organized by the German Logistics Association (BVL) in mid-October 2019. Why this motto? Are logistics managers not courageous enough? Are they not following a long-term strategy, recognizing potential, showing staying power in implementation, being open to new developments and seeing digitalization as an opportunity rather than a threat to traditional business models, for example? Do they lack the persuasive power and enthusiasm to take employees and partners in the supply chain with them on their journey? No, certainly not. Otherwise, logistics would not have become what it is today: a key function for the economic success of the global economy.

Courage is a prerequisite for success
It has been confirmed time and again that courage is a prerequisite for success. Courage comes from self-confidence and determination. At the same time, it is a good remedy against self-fulfilling prophecies - especially in economically difficult times. It promotes innovation and makes it possible to be globally successful, to create value and thus to secure jobs. Efficient, modern logistics improves company results through efficient value creation and ensures the optimal use of resources. Criteria such as efficiency and effectiveness, low operating costs, low energy consumption and efficient customer service are decisive for the economy. Ecology includes raw material and energy consumption, material consumption, waste, emissions during operation, packaging, transportation, dismantling and disposal.

Change is daily business
The sum of these aspects shows: Logistics plays a central role in almost all economic, infrastructural and social issues and decisions. Social changes, but also technological changes in mobility, are changing large parts of value chains. Supply chain managers and logisticians will have to adapt to structural and cyclical scenarios. Change is already part of our daily business. Logistics is a driver of digital change. For more than half of logistics service providers (61%), digitalization is already an integral part of their business strategy. The majority of German logistics service providers (56%) are investing in software and digital solutions first and foremost. This will intensify and accelerate. Digitalization is currently the focus of strategic decisions in many places.

In order to exploit their potential, it is important to strengthen the willingness and ability to innovate and invest, even if it is not immediately possible to derive use and business cases for logistics processes from existing technology trends such as automation, big data, IoT, blockchain or additive manufacturing. Those who show entrepreneurial courage now have the chance to secure and shape their future.

Management sometimes has to break new ground
The digital transformation requires a sustainable decentralization of decision-making processes and responsibility in all affected areas. Clear targets and guidelines are required, not only, but also to take away employees' fear of making decisions. Management also has to break new ground from time to time. One example: in order for organizations to learn and develop, mistakes must be included in the learning process to a greater extent than before. It is a decades-old realization: the willingness and ability to work together across departmental or even company boundaries can unleash great potential. However, collaboration still fails far too often due to a lack of standardization in IT - and even more often due to reservations about disclosing information to partners.

More transparency in real time
Ideally, transportation data, demand forecasts, data on material flows and cost structure data should be shared with other players along the value chain or in the value network. This is the only way to master complexity and implement new business models. End-to-end communication is necessary in digital value chains. More transparency in real time leads to better planning and control processes. The cultural change required for this must be learned, practiced and experienced.

There is "room for improvement" when it comes to investments
New business models anticipate or react to changing customer needs and thus safeguard existing business or generate new business. Innovations can currently be found above all in the area of digital platform models, which create a high level of transparency and challenge established business models. Platform models focus on customer needs - whether in B2B or B2C relationships. Cooperation with young companies or incubators within your own organization can strengthen your innovative power. Investments in logistics start-ups are growing massively worldwide, with Asian start-ups in particular raising billions of dollars: twelve billion dollars in 2018 alone, resulting in growth of 243%. In the entire region of Germany, Austria and Switzerland, just 73 million dollars in funding was invested. There is still room for improvement.

Globalization is irreversible
The greatest risks to further development lie in global economic uncertainties, which are predominantly the result of poor policy. This applies in particular to the unresolved and potentially escalating trade conflicts, which could escalate into trade wars - and to Brexit with its implications for the overall structure in Europe. However, globalization and the worldwide division of labor are irreversible. They have brought people around the world more prosperity, security, food and better livelihoods than all the development aid programs of the past 50 years put together.

Sustainability is moving into focus
The focus of supply chain management and logistics is always on aspects of sustainability. Of course, it will continue to make sense to constantly scrutinize our procurement sources and flows of goods: is fragmentation expedient? Can we shorten routes, improve capacity utilization, save resources, forge alliances? Ultimately, common sense and economic efficiency are the deciding factors here. If transportation is priced higher under the pressure of international climate protection regulations, the cost benefits of best cost country sourcing are put into perspective. And if consumers have to pay higher transport costs, this will influence their demand behavior. This could lead to a shift towards more regional products for consumer goods. Ultimately, such a scenario also offers new opportunities for logistics that are capable of change.

Modern logistics and supply chain management are on their way to becoming one of the most important strategic factors that determine or at least contribute to the success or failure of almost all companies across all industries.