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16. July 2020(Dortmund) Expert discussion between Arnold Schroven, board member of the Club of Logistics e.V. and member of the Logistics Advisory Council, and Sven Neumann, owner of the consulting company impacts4u. They discuss the situation for logistics around the Corona crisis.
By Sven Neumann
(Sven Neumann) How do you perceive the current situation of the logistics industry? What is your assessment?
(Arnold Schroven) There are significant differences internationally and nationally. While globally the logistics industry is suffering greatly, the situation in Germany is more nuanced. The larger market players are coming through this phase relatively unscathed, while smaller freight forwarders and subcontractors are reaching their limits in terms of capacity and profitability. These smaller companies have not been able to build up large reserves in the past; therefore, it is becoming increasingly tight if the economy does not recover quickly.
What are the reasons for this?
This can be attributed to the changed demand and competitive situation since the shutdown in March of this year. The fear of lower order volumes, the loss of customers, and even a lack of economic utilization leads to panic reactions in pricing, even to low prices that trigger a ruinous price war. According to the motto: better a small turnover than none at all. Of course, this is primarily against the backdrop that fixed costs cannot be adjusted quickly enough.
What are your proposed solutions?
This spiral must be interrupted. We in the logistics industry must unite to advocate for market-conform prices. The industry must earn money to cope with the upcoming strategic changes in globalization, growth, and digital efficiency.
What should we prepare for?
It is foreseeable that B2C will have a different lasting significance and will not return to the pre-Corona level. The uncomplicated ordering and delivery have completely convinced consumers. They enjoy this state. Food and drugstore items are certainly among the winners of this time.
Where there are winners, there are certainly also losers?
Yes, and we find these on the side of brick-and-mortar retail, with impacts on land use in our cities. Here, the logistics industry is certainly called upon to collaborate cooperatively with urban development. New concepts must restore the attractiveness of city centers; otherwise, a slow desolation will occur.
You mention the urban ecosystem. Where do you see specific points of connection for logistics?
Logistics 4.0 or Smart Logistics addresses this. We need to collaboratively develop delivery and pickup processes while also considering the change or relocation of spaces. Urban deliveries must fundamentally be ensured. Of course, time slots and delivery vehicles must be flexible and adaptable to the specific urban situation. Some international pilot projects have already shown where the journey is headed.
Do you go so far as to include the startup ecosystem here?
Definitely. The economy, whether “young or old,” science, and especially the civil society of a region must be at the table to change the post-Corona era.
Finally, I am interested in the integration and interaction with authorities or the government. What expectations do you have there?
It’s good that you bring this up. In the current situation, it is also about monetary participation. Various funding programs, which I will not elaborate on, exist and are necessary. However, based on the experiences of the past weeks regarding BAFA, I expect more structure and guidelines here so that these fundamentally well-aligned programs also reach where they are needed.
Photos: © Arnold Schroven/Sven Neumann – Caption: Arnold Schroven (left) and Sven Neumann (right)
Arnold Schroven
Since 1992, Arnold Schroven has held positions in top management at DPD. As managing director, he has shaped the development of the international DPD network in the areas of franchise development, operations, IT systems, and strategic key account management with his extensive industry knowledge.
In addition to various voluntary engagements, Arnold Schroven co-founded the Club of Logistics e.V. with other entrepreneurs in the logistics industry, of which he has been the chairman since 2005. Arnold Schroven was appointed to the Logistics Advisory Council in 2014, which advises the Federal Ministry of Transport. He continues to work actively here.
Sven Neumann
Managing director of the consulting company impacts4u, which specializes in corporate transformation in the age of disruption.
At the same time, he is involved as a lecturer and instructor at selected private universities for training creatively and innovatively thinking young talent in corporate management and founding. In this way, he contributes and ensures knowledge transfer within generations.
Previously, he was the commercial managing director of a family-owned and globally operating group in building installation technology. In this role, he significantly contributed over the years to the further development and sustainability of the company’s future viability. With more than 25 years of experience from various national and international change processes, Sven Neumann is a competent contact person.
