Digitalization pressure and the fear of loss

Almost all participants (95 percent) in the "2016 logistics study on digital business models" agree on one thing: digitization will change the logistics industry in part or even completely.

A Processwhich will certainly bring benefits, but also risks. For example, around half believe that the Digitization of data and processes can jeopardize data security.

Klaus van Marwyk, Partner at Roland Berger:

"The biggest concern is that sensitive data could be lost when working with competitors or IT companies"

In addition, freight forwarders in particular fear that they will be Competitive advantages forfeit if they are used within the scope of the Digitization have to cooperate with competitors.

When it comes to implementing measures, the interviewees believe that there is primarily a lack of specialist knowledge internally. Know-how in digital (69 percent) and in support from management or employees (54 percent).

Despite all the fears, however, the industry is optimistic: only about one-third of those surveyed believe that their Business model will disappear completely from the market. According to the experts at Roland Berger, however, this is a danger, because other industries are already showing that this can certainly happen.

Four business models shape the future

This is because the industry is suffering from strong cost pressure from its customers. In addition, 70 to 80 percent of the forwarders' business volume is standard business.

Sascha Treppte, co-author of the study:

"Here, the gross margins are around 20 percent, which is where there is cost-cutting potential from the client's point of view. Logistics companies themselves must therefore Digitization push forward, otherwise they jeopardize their future viability"

Some digital business models in the Logistics already exist and more will follow. According to the Roland Berger experts, there will probably be four groups of market participants in the future:

1. Booking and optimization platforms will replace the traditional Business model of transport companies will change significantly. With online platforms, simple transports can be handled much more efficiently and cost-effectively in the future.
2. Carriers and terminal operators will continue to be a crucial part of the value chain. In the future, they will benefit from economies of scale and the latest Technologies must use to optimize capacity utilization and costs.
3. Supply chain specialists will continue to develop complex delivery processes that require an industry-specific Know-how require. In order to make the increasingly complex supply chains more efficient and transparent, even such specialized niche suppliers need to improve their Processes automate more strongly.
4. Service providers provide software products and solutions for the collection and systematic evaluation of large volumes of data as well as other digital services. The offering ranges from online payment systems to GPS tracking systems and automated customs processing.

Set digital agenda and measures

It is still unclear who will take on the various roles in the future.

The decision to act as a carrier, terminal operator or supply chain specialist depends primarily on today's Business model and market positioning. To take advantage of the opportunities offered by the digital transformation, logistics companies should therefore quickly develop a digital roadmap.

As a first step, they should assess their potential loss of revenue and profit through new digital Business models determine. The future strategic direction should then be determined accordingly and the appropriate measures defined.

In addition, in terms of digital transformation, a rethink must take place both in the management of IT projects and in the companies themselves.

It is particularly important to clearly define the positioning vis-à-vis the online platforms and, if necessary, to look for cooperation partners for the development of a platform.

In addition, against the backdrop of potential margin erosion, a company-wide performance program should be initiated and a solid business plan developed. Financing partners should also be involved at an early stage in the Process be included.