“We are still able to keep our logistics running but we see increasing risks”, Dieter Zetsche (Chairman of Daimler AG and Head of Mercedes-Benz Cars)
Our last session in logistics was about process and time. We talked also about waiting times and I think this Is a really interesting topic and it’s getting even more interesting because of some current changes and new challenges. Due to the recently implemented border controls in a lot of European countries (remember: European refugee crisis) waiting hours are exploding and elaborated just-in-time processes of companies need to be adapted. So, the logistic sector is confronted with a new and challenging task.
For me it is interesting because my personal experience is related to this topic. In the past years it was so easy to go just for a lunch to Austria (if you are living close to the border), you didn’t nearly notice crossing the border. But the last weeks, it got more time intensive due to border controls and people sometimes decided not go to Austria because they did not want to be caught up in a traffic jam to come back to Germany. But what about the logistic sector? Companies cannot avoid crossing the border just because of waiting hours.
- Trucks have to wait directly behind a border and wait for the permission to enter the country
- Especially smaller trucks (7,5 t) are controlled (more than large trucks (40 t))
- Especially the automotive sector is suffering due to just-in-time processes of parts, e.g. Daimler: Only just-in-time delivery, nearly no expensive warehouses, parts and semi-finished goods from all over the world are delivered directly to the assembly line
- But also the transboundary trading with consumer goods is suffering
- 1 hour of waiting at the border = ~ 50 € additional costs for logistic / transportation companies (according to German association of road haulage) and then they even have to pay again because if they cannot deliver the parts within a certain time frame, e.g. Daimler requests a penalty
- > 2 hours traffic jam is critical because driving hours then get exceeded quickly, this results in more truck drivers’ rest periods and often the motorway service areas behind control stations are very crowded –> domino effect –> 2 hours traffic jam could result in 10-12 hours delay (according to Association Supply Chain Management, Purchasing and Logistics (BME)) –> abrupt increase of costs for haulers and in the end for the consumers
- Also economic problems:
- 57 Million international truck transports p.a. in the EU
- 70 % of German foreign trade goes into the EU, 80 % of these imports and exports via the street
Conclusion: Border controls are confronting the logistic sector with a new challenge and can be expensive not only for companies but also for the population.