Value-driven growth
Logistics is and will remain a growth market, but this increases the demands on logistics providers and their networks. How is DACHSER Road Logistics positioned and what principles will guide it into the future? We put these questions to DACHSER COO Road Logistics, Alexander Tonn.
Mr. Tonn, what role does groupage logistics play in DACHSER’s target picture for 2030?
Alexander Tonn: Groupage logistics is the backbone and core competence of DACHSER, so it will continue to play a key role in the company as we move toward 2030. Our goal is to attain and hold a position as number one in Germany and Europe. For us, the way to achieve this is not by increasing volume at any price, but by achieving value-driven growth.
Quality always comes first, in every area. It’s the most important feature that sets us apart in the market. What creates this quality leadership is first and foremost our employees. Other essential components are our state-of-the-art logistics facilities and broad-based vehicle fleet, as well as our homogeneous IT structure, which makes it possible to standardize processes.
What thought guides DACHSER in further developing the global network?
We have to detect changes in our volatile, complex environment quickly and not just react to them, but actively turn them to our customers’ advantage. At the global level, those are tailored logistics solutions with end-to-end process management and comprehensive digitalization for the best possible transparency in the supply chain. The backbone for this is our strong, high-performance overland transport network in Europe. By tightly interweaving our Air & Sea Logistics and Road Logistics business fields, we want to create a service that is unparalleled on the market: Global Groupage. The advantages for customers are numerous: DACHSER will offer a holistic solution for worldwide groupage transports, provided by an integrated network with comprehensive contract logistics expertise.
Retailers and manufacturers are using omnichannel concepts to focus heavily on the individual delivery requirements of their customers; B2C and B2B businesses are merging. How is the market changing?
As part of our AHEAD focus strategy, we’re working hard on omnichannel market access and are looking for ways to balance the requirements of logistics with those of customers. One result is our new product, targo on-site fix, where a specific delivery date can be scheduled when placing the order. This is popular with consumers, as they can have their purchases delivered after their vacation, for example. And for us as a logistics provider, this shortens the waiting time at the receiving branch. We’re constantly working on developing even simpler and faster solutions and incorporating them into our service portfolio.
Digitalization has a fundamental role to play if we are to reliably fulfill our mission in the future, too. This includes the modernization of our own core systems for transport and warehousing as well as the introduction of technological innovations. The latest highlight is our @ILO project, which has just been awarded the German Logistics Award. First, packages here are identified, localized, measured, and recorded in the transport management system fully automatically when they enter and leave, as well as during their stay. This eliminates manual barcode scanning and the additional labeling of the packages. Next year, we’ll start introducing the technology at our European branches. This is a milestone in the development of our network and will set an example for the industry.
Alexander Tonn is COO Road Logistics at DACHSER
DACHSER always says, “Logistics is People Business.” How does this fit in with the steady advance of digitalization and automation?
Digitalization and automation are not in conflict with our focus on people in logistics. Quite the opposite, in fact: if we are to generate value-driven growth, we need both skilled workers and digitalization that supports people in their work as comprehensively as possible. The lack of qualified personnel and specialists is already being felt at all levels and will become even more acute in the future. Europe currently has a shortage of over 400,000 professional drivers. The shortage of operational and administrative staff is not yet so extreme, but here, too, it’s becoming increasingly difficult to find and retain people with suitable qualifications. Although DACHSER has been counteracting this trend for years with a training rate of over 10 percent, it can’t completely reverse it. This makes it all the more important to offer employees the best conditions for providing high-quality services. Digitalization and automation are the right way to do this.
DACHSER Emission-Free Delivery, the zero-emission delivery service for city centers, is a forward-looking concept. Could it soon be standard?
By 2025, we will double the number of DACHSER Emission-Free Delivery locations from its current level. At that point, we will have implemented the sustainable city logistics concept in 24 major European cities. Whether and when this can become standard remains to be seen. Rolling it out involves considerable effort and the conditions have to be right. It depends, for example, on the local traffic situation, the potential for setting up microhubs, and the right charging infrastructure. All this requires major capital expenditure, which will ultimately be reflected in the pricing.
Let’s take a look into the future: Ideally, how do customers view DACHSER Road Logistics in 2030?
Our clear goal is for customers to continue to value DACHSER as a quality leader in the European market. This is because DACHSER is the most integrated logistics provider with the most comprehensive groupage network, the highest level of system and contract logistics expertise, and qualified employees who keep the supply chains running. Our people also help the company take significant steps toward climate protection and thus set standards in the logistics industry. We work on this every day—with great commitment and passion.
Thank you very much for the interesting interview.
