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Bosch and AWS enter into collaboration to digitalize logistics

Service platform for logistics fleets pools expertise in mobility, software, and the cloud

  • Bosch is developing a logistics platform for digital services on AWS.
  • The first digital services are expected to be available in Europe, India, and the U.S. in late 2022.
  • Complete ecosystem and software environment for freight carriers and forwarders emerges.
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Stuttgart, Germany – Bosch and U.S.-based cloud provider Amazon Web Services (AWS) aim to improve efficiency and sustainability in the transportation and logistics industry. Their plan is to offer logistics companies and freight forwarders across the globe quick and easy access to digital services through a platform powered by AWS. Going forward, they will offer support for topics ranging from capacity utilization of commercial vehicle fleets to monitoring goods flows to order processing – all from a single source. To this end, Bosch and AWS have now entered a strategic collaboration. Bosch will be responsible for developing and operating the logistics platform, the core of which is a marketplace for digital services, while AWS will contribute its comprehensive cloud offering and expertise. The platform will facilitate smooth interaction between a variety of services and data, enabling transportation and logistics companies to benefit much more from the opportunities of digitalization without having to set up their own resource- and cost-intensive IT projects. The marketplace will also be open to all digital logistics services providers. Industry and consumers will benefit from the initiative because of greater reliability and transparency in goods and parcel delivery, for example. The companies plan to present a preliminary version of the logistics platform at Hannover Messe, with the launch for Europe, India, and the U.S. set for late 2022.

The transportation and logistics industry is the backbone of the global economy. In the years ahead, it will have to shoulder continuously increasing transport volumes for goods and commodities while simultaneously reducing its carbon footprint. In collaboration with AWS, we want to help the logistics industry with this. We aim to ring in the future of the industry and drive forward its digitalization,

Sandeep Nelamangala, Executive Director, Bosch Limited, and Executive Sponsor of logistics platform business at Bosch

Greater efficiency through increased digitalization

“The transportation and logistics industry is the backbone of the global economy. In the years ahead, it will have to shoulder continuously increasing transport volumes for goods and commodities while simultaneously reducing its carbon footprint. In collaboration with AWS, we want to help the logistics industry with this. We aim to ring in the future of the industry and drive forward its digitalization,” says Sandeep Nelamangala, Executive Director, Bosch Limited, and Executive Sponsor of logistics platform business at Bosch. “Developing hyperconnected transportation functions is one of the most complex technical challenges of our time. That’s why we are working with a market pioneer such as Bosch to master these unique challenges,” said Kathrin Renz, Vice President, Business Development and Industries, AWS. “The digital marketplace will enable logistics customers to quickly transform their business into a fully digital end-to-end value chain. Customers will benefit from the tools, frameworks, and modules we offer for digitalization, in addition to improving the sustainability of their transportation processes.”

Years-long boom – and no end in sight

The transportation and logistics industry has been booming for years. During the Covid 19 pandemic, online orders and parcel deliveries saw another sharp increase, giving the industry a further boost. By 2030, global goods transport will grow more than 40 percent, and by 2050 this figure is even expected to exceed 145 percent. This growth is hitting a market that is highly fragmented globally – as well as struggling with various areas of inefficiency. A few facts will illustrate this: More than 95 percent of the companies operating in this industry worldwide are SMEs. Approximately nine out of ten companies operate with fewer than five vehicles. The majority of freight forwarders still organize their daily business manually or with an assortment of unrelated computer programs. Moreover, according to the goods transport statistics of Germany’s Federal Ministry for Digital and Transport (available in German only), more than 150 million trips are empty runs, which adds up to more than 6.5 billion empty kilometers annually, or more than 160,000 unnecessary journeys around the earth. This weighs heavily not only on efforts to protect the climate, but also on the already problematic shortage of drivers. The Federal Association for Goods Traffic, Logistics, and Disposal estimates that there is a shortage of between 60,000 and 80,000 drivers in Germany alone – and the situation is becoming more and more acute across the globe.

Many challenges – one solution

With its logistics platform, Bosch aims to provide a key solution for many of the challenges facing the transportation and logistics industry. The advantage of this platform is that it will create an entire ecosystem and a software environment in which freight carriers and forwarders can select, book, and execute different providers’ services to meet their specific needs. The platform also allows for easy integration of applications that are already relevant to the market, for instance, in transportation management systems. Thanks to shared usage of data that is available through the telematics systems in commercial vehicles, for example from fleet management, it is also possible to link and allow interplay between different services from different areas. This makes it easier to leverage synergies.

Mobility Solutions is the largest Bosch Group business sector. It generated sales of 45.3 billion euros in 2021, and thus contributed 58 percent of total sales from operations. This makes the Bosch Group one of the leading automotive suppliers. The Mobility Solutions business sector pursues a vision of mobility that is safe, sustainable, and exciting, and combines the group’s expertise in the domains of personalization, automation, electrification, and connectivity. For its customers, the outcome is integrated mobility solutions. The business sector’s main areas of activity are injection technology and powertrain peripherals for internal-combustion engines, diverse solutions for powertrain electrification, vehicle safety systems, driver-assistance and automated functions, technology for user-friendly infotainment as well as vehicle-to-vehicle and vehicle-to-infrastructure communication, repair-shop concepts, and technology and services for the automotive aftermarket. Bosch is synonymous with important automotive innovations, such as electronic engine management, the ESP anti-skid system, and common-rail diesel technology.

The Bosch Group is a leading global supplier of technology and services. It employs roughly 402,600 associates worldwide (as of December 31, 2021). The company generated sales of 78.7 billion euros in 2021. Its operations are divided into four business sectors: Mobility Solutions, Industrial Technology, Consumer Goods, and Energy and Building Technology. As a leading IoT provider, Bosch offers innovative solutions for smart homes, Industry 4.0, and connected mobility. Bosch is pursuing a vision of mobility that is sustainable, safe, and exciting. It uses its expertise in sensor technology, software, and services, as well as its own IoT cloud, to offer its customers connected, cross-domain solutions from a single source. The Bosch Group’s strategic objective is to facilitate connected living with products and solutions that either contain artificial intelligence (AI) or have been developed or manufactured with its help. Bosch improves quality of life worldwide with products and services that are innovative and spark enthusiasm. In short, Bosch creates technology that is “Invented for life.” The Bosch Group comprises Robert Bosch GmbH and its roughly 440 subsidiary and regional companies in some 60 countries. Including sales and service partners, Bosch’s global manufacturing, engineering, and sales network covers nearly every country in the world. With its more than 400 locations worldwide, the Bosch Group has been carbon neutral since the first quarter of 2020. The basis for the company’s future growth is its innovative strength. At 128 locations across the globe, Bosch employs some 76,100 associates in research and development, of which more than 38,000 are software engineers.

Additional information is available online at www.bosch.com, www.iot.bosch.com, www.bosch-press.com, www.twitter.com/BoschPress.

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