Published on: June 19, 2025 / Updated on: June 19, 2025 – Author: Konrad Wolfenstein
Criticism of the German Armed Forces: Unplanned logistics investments – How the private sector can solve the logistics problem with DU-Logistik² – Image: Xpert.Digital
Special funds evaporate: Logistics chaos in the German armed forces costs billions and weakens Germany
Court of Auditors reveals: Structural problems and misinvestments
The German Armed Forces (Bundeswehr) are currently facing massive criticism, particularly regarding their logistics investments. The Federal Court of Auditors has identified fundamental structural deficiencies: despite billions in investments – primarily from special funds – a clear, coherent strategy for building a powerful defense force is lacking. Time and again, millions of euros are wasted on misinvestments, such as failed procurement and digitization projects or unnecessary expenditures on unused software licenses. This practice contradicts sound economic principles and jeopardizes the long-term capability of the armed forces.
A key problem is that projects are often funded without clarity as to whether they are actually needed or effective. The virtually unlimited resources available due to the relaxed debt brake exacerbate this problem, as they incentivize industry to charge higher prices for the same level of service.
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Lack of modernization and outdated infrastructure
The logistics facilities of the German Armed Forces are widely considered outdated and inefficient. While modern civilian logistics centers could serve as a model, many of the Bundeswehr's material depots appear "outdated" and do not meet the requirements of modern, combat-ready logistics. As a result, the effectiveness of the armed forces remains limited, and Germany's defense capability is classified as "conditional.".
After the end of the Cold War, numerous material and ammunition depots were closed. Only with the renewed focus on national and alliance defense—particularly after the Russian attack on Ukraine—was it recognized that these stockpiles needed to be massively replenished. However, a well-thought-out, long-term plan is lacking. Much is being done at breakneck speed, which increases the risk of poor decisions.
Dependence on civilian suppliers and logistical bottlenecks
Another problem is the heavy reliance on civilian logistics providers. The German Armed Forces (Bundeswehr) have hardly any capacity of their own for the rail or air transport of heavy equipment and depend on providers such as DB Cargo or Lufthansa. While these collaborations are part of a strategic realignment, they reveal significant weaknesses: there are too few suitable flatbed trucks for transporting tanks, and the infrastructure as a whole is not designed for the demands of rapid military deployment. In a crisis, this could lead to logistical bottlenecks that would severely impair the operational readiness of the Bundeswehr.
Lack of digitalization and inefficient processes
The resilience of military supply chains is considered limited. Advances in data-driven logistics, intelligent control, and effective resource allocation are urgently needed to overcome logistical challenges. However, consistent measures and clear prioritization in these areas are currently lacking.
Possible solutions: Dual-use logistics and strategic realignment
One proposed solution is so-called dual-use logistics: instead of investing billions in isolated, often unused systems, modular infrastructures should be created that can be used for both civilian and military purposes. This would avoid redundancies, increase efficiency, and improve the return on investment. Given Germany's role as a central logistics hub in Europe, such a strategic realignment is urgently needed.
Criticism of the German Armed Forces regarding haphazard logistics investments is multifaceted:
- There is a lack of strategic planning and control.
- Billions are being used inefficiently, often without sustainable benefit.
- The infrastructure is outdated, and there is a high dependence on civilian providers.
- Digitization and modern control of logistics processes are lagging behind.
A consistent reform towards modular, dual-use logistics systems and strategic, long-term planning are considered key levers to eliminate structural weaknesses and make the Bundeswehr fit for the future.
Hub for Security and Defense - Advice and Information
Hub for Security and Defense - Image: Xpert.Digital
The Security and Defence Hub offers expert advice and up-to-date information to effectively support companies and organizations in strengthening their role in European security and defence policy. Working closely with the SME Connect Defence Working Group, it particularly promotes small and medium-sized enterprises (SMEs) that wish to further develop their innovative capacity and competitiveness in the defence sector. As a central point of contact, the Hub thus creates a crucial bridge between SMEs and European defence strategy.
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Germany's strategic opportunity: Civil-military logistics networking as a future model
How the private sector can solve the German Armed Forces' logistics problem using the dual-use concept
The German Armed Forces face enormous logistical challenges resulting from decades of infrastructure neglect and structural deficiencies. The dual-use concept offers a promising solution, in which the private sector can play a central role in modernizing and increasing the efficiency of military logistics.
How can the private sector solve the logistics problem of the German Armed Forces using the dual-use concept?
- From the XPaperThe arms industry is in transition – military transformation: How drones and AI are revolutionizing Europe's defense“
The dimension of the problem
Structural weaknesses of the German Armed Forces' logistics
The German Armed Forces' logistical problems are multifaceted and profound. The infrastructure suffers from a glaring backlog of necessary repairs, with an estimated investment requirement of €67 billion for barracks and properties. Logistics is considered the "Achilles' heel," one of the German Armed Forces' greatest weaknesses.
The Federal Court of Auditors criticizes fundamental structural deficiencies: Despite billions in investments from the special fund, a clear, coherent strategy for building a powerful defense is lacking. For years, the Bundeswehr has failed to address information gaps in its IT logistics system, jeopardizing its operational readiness.
Dependence on civilian suppliers
A key problem is the heavy reliance on civilian logistics providers. The German Armed Forces have hardly any capacity of their own for the rail or air transport of heavy equipment and depend on providers such as DB Cargo or Lufthansa. This dependence reveals significant weaknesses in the strategic autonomy of the armed forces.
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The dual-use concept as a solution approach
Definition and strategic potential
Dual-use goods are defined as "goods with a dual purpose"—items, technologies, and knowledge that can serve both civilian and military purposes. In the context of logistics infrastructure, dual-use refers to systems such as railway lines, bridges, tunnels, and combined transport terminals that meet the requirements of both civilian freight transport and the specific needs of military transport.
Advantages of dual-use logistics
The dual-use concept offers several strategic advantages:
- Cost efficiency: Instead of investing billions in isolated, often unused systems, modular infrastructures are created that can be used continuously
- Redundancy avoidance: Dual use prevents the creation of parallel structures
- Improved amortization: Continuous civilian use allows investments to be amortized more quickly
- Efficiency improvement: Usage efficiency is increased through continuous utilization
Concrete implementation options
Modular infrastructure systems
The development of modular dual-use infrastructures represents a key approach. Critical intermodal facilities (terminals, track sections, loading facilities) can primarily be financed through defense funds allocated under the heading of "ensuring military preparedness and defense logistics." However, this infrastructure is designed from the outset to be efficiently used by civilian logistics actors during non-emergency periods.
Transport capacities and intermodality
Due to its geostrategic location in the heart of Europe, Germany plays a key role as a logistical hub for allied forces. The ability to rapidly and efficiently move troops and equipment through Germany (Host Nation Support) is essential for the credibility of collective defense.
Hybrid, multimodal logistics systems that focus on combined road-rail transport can meet both civilian and military requirements. The prioritization of military mobility requirements within EU initiatives such as the Military Mobility Action Plan is driving necessary modernization.
Role of the private sector
Cooperation models and partnerships
The German Armed Forces Logistics Command has already initiated innovative approaches to cooperation with industry. Industry is a partner of the German Armed Forces, and companies have been making indispensable contributions to the Bundeswehr's logistics for many years. In addition to their innovative strength, flexibility, efficiency, and reliable service delivery are key factors in their success.
Specific areas of cooperation
The German Armed Forces are pursuing innovative collaborations in three main areas:
- Material management and storage: Value-preserving storage for selected ammunition and material segments
- Support for the deployment of forces/intermodal transport: transshipment at transport modes such as seaports, airports and rail terminals
- Intermodal transport: coordination of road, rail, sea and air
Advantages of outsourcing
Logistics outsourcing offers numerous advantages, including flexibility, cost transparency, access to state-of-the-art technology, and the ability to focus on core competencies. External logistics providers can adapt their services to changing needs, whether due to seasonal fluctuations in demand or expansion into new markets.
Digitalization and technological innovation
Data-driven logistics systems
The resilience of military supply chains is considered limited. Advances in data-driven logistics, intelligent control, and effective resource allocation are urgently needed. The German Armed Forces have already taken initial steps to drive digital transformation with their “Innovation Challenge Logistics” initiative.
Specific digitization projects
Innovative solutions developed by the troops include:
- ROLLT (Route Guidance Tool): A German Armed Forces navigation system for vehicle-specific route planning
- KUB: A sensor for digital container monitoring
- YARDED: A solution for parking and container management
- DARTBw: A digital tool for three-dimensional building and terrain surveying
Resilience and security of supply
Supply Chain Management
Supply chain management will play a crucial role in IT procurement for the German Armed Forces. Particularly in the defense sector, disruptions in the supply chain can have massive consequences. The upheavals during the Covid-19 pandemic have clearly demonstrated the vulnerability of global supply chains.
Strategic independence
Sovereignty must be given particular consideration, especially in defense matters. Supply chain independence, in the sense of a circular economy, takes on a distinctly security policy dimension alongside its environmental implications. The integration of dual-use technologies offers the opportunity to advance security-relevant innovations while simultaneously strengthening the technological competitiveness of Germany as a business location.
Challenges and solutions
Regulatory aspects
Dual-use goods are subject to strict export controls and regulations. The EU Dual-Use Regulation (EU) 2021/821 forms the central legal framework, defining goods lists, licensing requirements, and control procedures. These regulatory requirements must be taken into account when implementing dual-use logistics systems.
Personnel development and knowledge transfer
Demographic trends and the shortage of qualified personnel pose a shared challenge for both the German Armed Forces and the private sector. Since the support capabilities provided by the Logistics Command are similar to those offered by commercial enterprises, this opens up potential for expanded cooperation. Temporary-service soldiers can play a key role in this, as their logistics training within the German Armed Forces largely corresponds to civilian standards.
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Civil-military networking: Germany's chance for cost-efficient and future-proof defense logistics
The dual-use concept offers a strategic solution that can systematically address the structural problems of the German Armed Forces. Instead of continuing to invest billions in isolated, often unused military systems, dual-use logistics enables the efficient networking of civilian and military logistics structures.
The private sector can act as a key partner by contributing its innovative strength, efficiency, and technological expertise. Modular, dual-use infrastructures and strategic partnerships can significantly improve both the supply security of the German Armed Forces and the cost-effectiveness of investments.
Germany, as Europe's logistics hub, is particularly well-suited for the implementation of dual-use logistics systems. However, successful implementation requires consistent strategic planning, overcoming regulatory hurdles, and close cooperation between military and civilian stakeholders.
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