Otto Schacht, Executive Vice President, Sea Logistics, Kuehne + Nagel International AG

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Otto Schacht, Executive Vice President, Sea Logistics, Kuehne + Nagel International AG

Against the backdrop of the previous years’ online consumer behavior, which was already accelerating before COVID-19, e-commerce will continue to grow in 2021. However, 2020 has been a clear example of how quickly we as 3PLs were able to adapt our customers’ global supply chains despite the difficult market conditions in the course of the pandemic. What we have seen and what we expect is that customers will be considering diversification and de-risking of sourcing activities — including rethinking distribution centers and logistics hubs.

Beyond that, at the current pace of change, only proper planning and enablement of responsive supply chains will ensure the resilience needed to stay ahead of the curve. This includes optimal synergies between strategic acceleration and deceleration levers and the respective enablers of the supply chain — regardless of changes in demand or disruptions.

This process drives the increasing expectations of enabling technology. We are working with customers who are servicing end-consumers, and their demand for transparency and visibility is also high — not only in terms of digitizing the physical supply chain, order details, and predictive AI, but also in terms of the sustainability of their supply chain. An essential element in winning the trust of customers, in addition to cost, time and velocity, reliability, and flexibility, is a more environmentally friendly physical transport, facilitated by a new level of decision-making technology that enables responsible choices, such as full visibility of a supply chain’s CO2 emissions and all available greener transport alternatives.