Germany is located right in the centre of Europe and hence, it has emerged as the continent’s largest economy and most important logistics hub which offers world-class infrastructure as well as cutting-edge logistics services.
This location is absolutely prudent as it has provided companies convenient means to distribute and expand across Europe. There is an easy access to the EU’s 500 million consumers.
Logistics has always been one of the key pilasters of Germany’s competitiveness and this has paved the way for added industrial value, the movement of goods and cooperation between companies. The logistics industry in Germany currently occupies the third position in the country’s GDP — and it weighs just behind its international trade and the automotive sector.
The logistics sector has employed about three million people and it has an annual turnover of €200 billion that represents approximately 7 per cent of the gross domestic product. Apart from this, the logistics sector also displays far-above-average growth – approximately €15 billion is invested in logistics annually in Germany.
It should be mentioned here that the logistics market totals approximately €600 billion, and Germany currently enjoys 30 per cent market share. The logistics service providers have enjoyed a lofty international reputation. What really shines here is the creativity, flexibility and know-how in the improvement of value-added processes that have been accepted and adopted all across the world.
German innovations in logistics — more so if we speak about telematics and navigation — are considered world-class and immaculate.
At this very moment, there are numerous scientific institutes in Germany that are working logistics innovations of the future. There are many universities and centres of excellence that offer training and advance training programmes in logistics which is the way the sector continues to grow and boom.
Not only does Germany have a unique and the finest infrastructure in Europe, it also boasts of having the transportation infrastructure to exploit and derive maximum advantages.
The government has also stepped in as it was able to maximise the efficiency of Germany’s distribution infrastructure. The government worked in cooperation with the logistics industry and they have set up what we call “freight villages”.
Several of these cargo support centres function as regional nodes and they have optimal access to long-haul networks and local delivery points. Apart from this, these support centres also provide essential services that include Customs clearance, security and vehicle maintenance.
Why the international market has looked towards Germany owing to its highest speed reliability and quality. In Germany, retail distribution centres have meticulous stock control and under this, there is prudent management of purchasing, shipping as well as warehouse inventory.