“Depression has led to unknown demand”

Online retail sales, which were already on the rise, once again increased significantly during the pandemic: The German Federal Statistical Office reports that the industry generated a year-on-year increase in sales of 22.9 percent in August 2020. Will this development continue? And what does this mean for the international goods traffic?

Online trade, or global e-commerce, has once again gained immense momentum, and the pandemic is acting as a turbo engine. This development is irreversible and will continue, although I expect growth rates to decline slightly.

The shift from off- to online has now reached every demographic. It is forcing retailers to strengthen their online services in order to remain competitive. Retailers who have been able to adapt quickly to the changing environment have already benefited from the situation brought upon by the pandemic. Some of our customers were able to more than compensate for the loss of sales during the first lockdown with increased online sales.

In the future, the international goods traffic will be geared even more strongly to online trade, and against this backdrop, the resilient design of the supply chain will become an important competitive factor. In addition, I hope that the sustainability issue will become more relevant in the alignment of supply chains.

It seems that the appreciation of logistics processes and the importance of logistics have increased significantly in recent months. Do you agree with this assessment?

Without logistics, the shift from off- to online would not have been possible. As a result, we are currently experiencing that the importance of logistics has increased in perception. The question of how sustainable this development is taking place remains. After all, at the same time, the market as a whole is characterized by high cost pressure. Many companies therefore still primarily see logistics as a cost driver. However, the last few months have shown impressively that logistics can be an important enabler.

Various vaccines are currently entering the market. Hopes of a “return to normality” are growing. For the “New Normal” state, the return to regional production sites or the maintenance of regional storage capacities, among other things, have been propagated. What long-term effects do you expect from the pandemic, in terms of production and logistics?

The experience of the past few months may result in a broader set-up of supply chains: Greater diversification in sourcing structures, in terms of geography as well as suppliers, and possibly larger temporary inventories could be the result.

Ultimately, the respective behavior of companies will depend heavily on the products. Pharmaceutical products, clothing, electronics – the requirements vary widely and will demand very individual solutions. Here, too, logistics and efficient supply chain management will once again play a crucial role.

Mr. Schiller, thank you for the interview and we wish you all the best.