Supply chain focal point: reassessment of logistics necessary

Logistics is on everyone's lips: for many, its importance became even more obvious during the pandemic, when supply chains were disrupted. According to Patrick Köpfli, Managing Director of Prologist AG, the importance of logistics will only increase. Digitalization will accelerate processes - something his company has long recognized.

Mr. Köpfli, how has the logistics industry changed in the three decades of Prologist AG's existence?

PATRICK KÖPFLI: 30 years is a very long time. Back then, when my father Stephan Köpfli started the company in 1992, there was practically no Internet, only a few cell phones, and the logistics went unnoticed, almost only in the background of the economy. Personally, I have been running the company for 15 years now. What we are seeing is a rapid change that has shaped the industry and is still doing so. Change has always required logisticians to adapt their strategy to be ready for customer needs. Today, this evolution with globalization, digitalization and the expansion of value chains is leading us back to local performance priorities, especially for comprehensive, customized logistics solutions. This includes everything from goods receipt, warehousing, order picking, component assembly, packaging, to shipment preparation and the organization and scheduling of transports. We call this logistics 360 degrees - today mostly integrated into certified and individualized customer processes.

Which changes weighed particularly heavily, especially for a small logistics service provider like Prologist?

For us as a microenterprise, the customers with their needs are an enormous challenge, but also a great opportunity. After all, they are in the same boat as we are and are virtually embedded in the economy and politics, with all their challenges. You are right: times have not always been easy. Large fluctuations in orders, constantly rising costs, upfront investments in our warehouse infrastructures, ups and downs in market and currency situations, then trade wars - and in the midst of these upheavals we find ourselves with our own. But what has been and continues to be really serious and decisive is digitalization. For us, it's not a new trend. We've been cultivating this topic, as it were, creepily for 30 years now. The logistics processes, especially the information about them, have always been of great importance to the customer. This data, processed into usable information, makes it easier for our customers to manage their logistics. Ensuring this is a duty for us. In the past, monthly reports from the warehouse management system were sufficient, then weekly and later daily reports were required and used. Development, demands, the technological feasibility and finally the benefit of being able to retrieve this information every second brought us to the current state of digitalization. And it will continue to do so. But fortunately, our employees are still needed. Because only with an individual, personal commitment to bridge any technical interfaces in the process will "logistics digitization 360 degrees" succeed.

How does your company currently deal with disrupted supply chains?

In general, the current situation is not expected to ease, but rather to worsen. Raw material, energy and transport costs along our logistics value chain have risen massively. And there are the interrupted supply chains and the pandemic that has not yet subsided - and already the effects of war and international tensions are our new challenge. Active, rapid anticipation and cautious planning in investments and - very importantly - intensive communication with our customers are our focal points for mastering these difficult times.

What support can Prologist offer customers for more stability in their logistics?

Logistics is more than ever the focus of supply chains. It is not only products that can no longer be manufactured due to supply bottlenecks; the maintenance and repair of machines and vehicles is also limited. A reassessment of logistics is therefore necessary, and it shows that some of the risks, such as bottlenecks, distortions in transport chains or even manufacturing interruptions, can be offset to some extent with improved planning for warehouse and goods management, larger inventories and more flexible, individual logistics services. With these additional services, we support existing and new customers in these times as well.

Your tips for logistics customers: What needs to be paid particular attention to at the moment?

From a logistics perspective, for example, digitization expands the product range and adds new functions. Our customers should pay attention to this. Whereas the focus used to be on the physical product, the service component of the product is increasing with general product services and the new possibilities offered by digitization. Traditional production companies have to adapt to these changes in order to delight their customers and secure their market position. We in logistics can proactively address this customer challenge with specific services and thus integrate their logistics processes better and faster.

What does the future of logistics look like?

In logistics and supply chain, different factors will take effect until probably 20 years from now. Certain standards will remain established and some new issues will become prevalent. Even then, standard sea containers and euro pallets will continue to dominate physical logistics. Likewise, paper and cardboard as well as plastic will continue to be used. What is likely to increase is orchestrated data exchange to enable forecasting capabilities and autonomous decision-making along the entire supply chain, thereby creating benefits for all players. Customers will increasingly demand green logistics. Sustainability will become a critical success factor for companies - after all, reverse logistics is already in focus today.

What are the entrepreneurial goals of Prologist AG for the following months and years?

We strive to offer our customers the best possible, individual service for logistics and technology. This also means ensuring a stable and secure logistics base with all functionalities, even through difficult times. This security and reliability are qualities that our customers value highly. We are then a kind of "reliable buffer" for their value chains. These are our daily goals and it is important to us to integrate added value directly into our logistics services. This also includes seamless transfer into digitization, into all sub-processes of our infrastructures and, wherever possible, into customer projects.

Prologist AG

Since 1992, Prologist has been a service provider for comprehensive logistics and technology solutions that can cover virtually all needs and perspectives. In the meantime, the company has been able to implement over 200 successful logistics projects in areas such as IT-supported warehouse systems, reverse logistics, spare parts logistics, IT rollouts and more.
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