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Why reusable containers in logistics are becoming interesting for top politicians

Dortmund start-up meets Lord Mayor Thomas Westphal and Federal Minister of Economics Robert Habeck

Dortmund, 12 September 2024 One of the best-kept secrets in industry, logistics and retail is how many Euro pallets are located where - and who owns them. Companies usually manage their pallet stock themselves and manually. This leads to high shrinkage costs and considerable labour costs. A Dortmund start-up has taken on this supposedly niche topic and is now also being listened to by top politicians.

When most people hear the word ‘reusable’, they probably think of PET or glass bottles in which water, lemonade or beer is transported. But reusable containers are also used in industry, retail or logistics: Euro pallets, mesh boxes, containers or racks ensure that goods are transported safely from A to B.

The costs are usually borne by the manufacturing companies, retailers or logistics providers themselves. The costs for this are usually borne by the manufacturing companies, retailers or logistics companies themselves: They are responsible for keeping track of where their containers are located. In most cases, this process is still carried out manually using tables created by the company itself. As a result, however, those responsible quickly lose track of their containers, which results in high costs due to labour costs or material wastage.

Logistikbude, a software solution and Dortmund-based start-up of the same name, is tackling precisely this challenge and is attracting a great deal of interest - and is thus also reaching the political mainstream: Its co-founder and CEO, Dr Philipp Hüning, was recently accepted onto the Young Digital Economy Advisory Board of the state of North Rhine-Westphalia and was able to convince both Federal Minister of Economics Robert Habeck and Dortmund's Lord Mayor Thomas Westphal of his solution.

Reaching out into politics

Hüning had the opportunity to tell politicians about the challenge and solution approach of the logistics centre in several high-calibre formats. At the Cabin Talks, organised by the Dortmund Economic Development Agency, 20 young founders from Dortmund were able to present their ideas to Lord Mayor Thomas Westphal. In the unique atmosphere of Dortmund's opera house, they exchanged views on current topics, had honest and authentic conversations and answered the Lord Mayor's in-depth questions. The founders showed just how diverse and active Dortmund's start-up scene is - no wonder, as the Westphalian metropolis was only recognised as the Capital of Innovation in 2021.

Interest aroused by the Federal Minister of Economics

In Cologne, Hüning met Vice-Chancellor and Federal Minister of Economics Robert Habeck, who made a stopover there as part of his summer trip to talk to start-ups in person. Organised by the Startup Association, the participants discussed topics including the recruitment of new talent and the financing situation of startups.

‘It was impressive to see Robert's detailed interest in the status quo of digitalisation in logistics. This emphasises the importance of our industry for Germany as a business location. I am all the more pleased to be able to share the great potential - both economically and ecologically - of reusable packaging,’ says Hüning.

Topics such as capital procurement in various development phases and the special requirements of deep tech start-ups were highlighted. The main focus was on the question of what incentives can be created to mobilise more private capital. This summer, Habeck travelled through seven federal states under the motto ‘auf'm Platz’ (in the square) to discuss economic issues with local people. He was also impressed by the ideas of the founders in Cologne.

Manage reusable objects digitally and transparently

Logistikbude was founded in 2021 and digitalises the management of multi-way assets such as pallets, containers or racks used to transport goods. Its user-friendly software enables the transparent tracking of containers in real time and provides an overview of stocks, requirements and turnaround times. As a result, shippers, logistics service providers and retailers benefit from lower replenishment rates and reduced administrative costs - simply, efficiently and, above all, in a resource-saving manner. The experts at Logistikbude have incorporated their many years of experience in the packaging industry at Fraunhofer IML into the solution.

Photographer: Athenea Diapouli-Hariman/The Moment Kept