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  1. 1. ... Digitalization for Advanced Logistics Business Handout for a business trip with Stephan Weil, the Prime Minister of Lower Saxony, to Mexico and the United States from 2nd until 6th october 2016 LSA Logistik Service Agentur GmbH August 2016
  2. 2. ... About LSA Logistik Service Agentur GmbH LSA is a part of the latest generation of logistics providers (4PL). The 4th party logistics service provider is an integrator that performs planning, management and control of technical and human resources in a network of cross-divisional and company-wide logistics business processes. This includes the logistics network system desgin and operation. „We are neither a consultant nor a forwarder, we provide hybride logistics solutions as an intermediate between in-house logistics and outsourcing programs”, says Roger Heidmann, the founder and CEO of LSA. The LSA divisions are based on each other and pursue the LSA philosophy: the better our client operates in logistics, the better we can work. In this sense, LSA logistics coaching is based on the “help yourself” principle. LSA logistics monitoring provides the costumer with the tools on “do it yourself” principles. Moreover, LSA Routing Center operates under the notorious motto: “We are stronger together.”An example of a typically LSA project: a new factory has to be installed in Great Britain, the equipment comes from different regions in Europe, from several manufacturers, in containers, by means of vehicles with oversized and heavy weight goods and parcel services. Trucks have to be coordinated meticulously to ensure that the parts arrive in the correct order - just in sequence - to the construction site. Several unique logistics systems are simultaneously steered by four logistics managers in “LSA Routing center”. In this case, the information network of 15 suppliers, 60 logistics service providers and 48 people in the costumer’s project team ensures 16,000 potential connections for the respective information flow. Our target is to develop digitalization for advanced logistics business “Rapid prototyping becomes another challenge for us and our unique projects. There is almost no software that provides appropriate and fast solutions for specific non-standard projects,” according to LSA CEO.
  3. 3. ... “So, we have developed a logistics dashboard to address the above challenge. It took us two weeks to do it from the first idea to its operation. The data warehouse covers the overall GPS data of the respective forwarder trucks, transmitted in the real time mode. KPIs (Key Performance Indicators) provide an automatic target-actual balance to everyone who is involved in the project via the cloud access. This tool is also useful for project managers, suppliers or CEOs, irrespective of their current location. "Transparency is the great keyword when it comes to digitalization," believes Mr. Heidmann, "Everyone has access to any relevant information. This saves time and money." “Transparency in logistics is one of our most significant values,” Mr Heidmann is convinced. These are the lessons learned lately from the wind power sector. Founded in 2004 as an independent logistics provider, LSA quickly won customers in the offshore wind energy."At sea, flexibility is required, depending on the adequate weather windows. The task is to align logistics systems to the seemingly unpredictable conditions,” believes Mr Heidmann. Our focus in Mexico and San Francisco: new products will be created with partners and clients to take advantage of common strengths LSA starts up and scales up to a digital logistics service provider with a logistics monitoring platform and a kit of mobile tools and methods. For the requirements management, LSA uses a loop system to identify and develop use cases promptly. The key factors of the loop are: people, “what if” scenarios, procedures, greenfield thinking, logistics systems and critical incidental methods. This is the first result of the latest LSA project "Process innovation through digital services for the seaport of the future (ProDiS).” The three and a half year joint research project deals with the process optimization in seaports. It has a 2,4 million budget, funded by the Federal Ministry of Education and Research (1,9 million euro), and supervised by the German Centre for Aviation and Astronautics (DLR). Actually ProDiS is backed up by six partners. The project focusses on the integration of modularized and scalable digital services (hybrid performance bundle) into the logistics business. Use cases will be tested in the business environment. “Furthermore, it allows us to think in a disruptive manner, e.g. how future logistics systems could function without containers”, says Roger Heidmann. “If you don´t call, that´s impossible during
  4. 4. the first 10 seconds, you are in the above loop”. Another result of the loop is easier to handle: the hypothesis is that city logistics and batch size one are the driving factors for advanced logistics business in the future. The third example is the ProDIS project and its future design by means of digital services in the port of the future. “In this sense, we would like to start the dialog with people and potential partners about their logistical requirements and design in the digital age “says Roger Heidmann. Last but not least short information about the German and European logistics markets With a turnover of approx. 240 billion euros the logistics industry is the third-largest economic and trade sector in Germany after the automotive industry. It employs more than 2,9 million people. Germany has a Europe-wide unique share of more than 20 percent in the European logistics market, which is estimated as €930 billion big and also occupies a leading international position in the infrastructure quality and logistics technology.