Save costs, optimize processes, secure the future: The digital transformation of the supply chain
Digital delivery note sustainable and efficient: Why Cloud4Log is changing the logistics industry
The digitalization of the supply chain has become increasingly important in recent years. There is a clear trend: companies not only want to save costs and speed up their processes, but also want to act more sustainably and use modern technologies in order to position themselves for the future. A showcase project in this context is the cloud-based cooperation project “Cloud4Log”. This project was initiated in collaboration between GS1 Germany and the Federal Logistics Association (BVL) and aims to optimize the national movement of goods using a digital delivery note. The following shows in detail how Cloud4Log works, what advantages it offers and why it represents a significant step forward, especially in the logistics industry. In addition, various interesting and important aspects are discussed that are of great relevance to the successful establishment of such a system in practice.
With over 100 participating companies, including well-known brand manufacturers and retailers such as Dachser, DHL Group, Nordfrost and Nagel-Group, Cloud4Log is becoming increasingly important in the logistics industry.
Reasons for digitizing the delivery note
Many companies in the transport and logistics industry still rely on classic paper documents when it comes to processing deliveries. Although many things are already done digitally, the digital delivery note has not yet become widely accepted as a standard until recently. Various reasons such as technical hurdles, investment costs, organizational changes or a lack of standards led many companies to shy away from a comprehensive digital transformation. This shows that there is enormous potential for optimization in companies that process a large number of deliveries on a daily basis - for example to retail partners. This is exactly where Cloud4Log comes in.
The core concern of Cloud4Log is to efficiently network all actors involved in the supply chain and to digitally exchange all transport-related documents. A delivery note in paper form requires various intermediate steps - from creation and printing to handover to the driving staff and receipt. Delays, losses or misunderstandings can easily occur in this process chain, not to mention the high consumption of resources due to printing and transporting the paper. Digitalization is intended to eliminate such risks as much as possible, improve communication and increase transparency and efficiency.
The idea of establishing the digital delivery note across the industry arose in 2020 in the BVL topic group “Digitization of transport logistics”. Leading experts recognized early on the high pressure to act, because even in 2022 the majority of goods deliveries in the consumer goods sector still contained paper documents. The aim was to leverage this great optimization potential with the help of a digital industry solution. The central role here is played by standardized data formats and the ability to clearly assign documents to the respective deliveries so that everyone involved can access a common information base.
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Basic principle and technology behind Cloud4Log
Cloud4Log offers a central cloud platform that enables all companies involved to share digital transport-related documents. Fundamental to the solution is the use of GS1 identification standards. These ensure that a document can be assigned to a delivery without any doubt. A central feature is that every delivery receives a unique identifier that is accessed via a QR code. This makes it possible to see at any time which goods are on which route to which destination and which documents are based on this transport.
The platform provides two central usage options. On the one hand, companies that already have mature software solutions can use the open API interface to seamlessly integrate Cloud4Log into their existing systems. On the other hand, a basic front end is available that is aimed at smaller or less digitized companies. No extensive IT project is required to benefit from the advantages of the digital delivery note. Using web-based access, all relevant data can be uploaded, accessed and further processed.
From a technological point of view, the platform is based on modern cloud infrastructures. This not only enables central data storage, but also high availability and security. Ideally, every relevant process step – be it collection, transport or delivery – takes place digitally. Incorrect entries and misunderstandings can be reduced because data once stored is available to everyone involved without any changes. This significantly improves the reproducibility and traceability of processes.
Independent registration and innovative self-service solution
A crucial step forward in the development of Cloud4Log was the introduction of a self-service solution for drivers in July 2024. This step enables drivers to independently register deliveries at goods receipts. While previously in many cases the incoming goods staff had to be informed using paper receipts or additional documents, this is now done automatically and digitally. The drivers scan the corresponding QR code, gain access to the respective delivery note and can register directly without the need for additional communication.
This process accelerates in several areas: On the one hand, waiting times are eliminated because the driving staff can act proactively. On the other hand, incoming goods management is relieved because manual checking of paper receipts is no longer required. “Our vision is the paperless future in logistics,” say those responsible for the project and emphasize that efficiency in the supply chain can only be achieved if all steps benefit equally. This creates a win-win situation: the driver is faster, the receiving company receives more accurate data and the transporting company saves costs.
Advantages: Added value for everyone involved
The advantages of a digital delivery note process can be seen in many different ways. Some of these benefits can be realized immediately, others have a medium to long-term impact on the entire supply chain.
Increased efficiency and process optimization
With the digital delivery note, numerous manual tasks are eliminated. Printing out, handing over and acknowledging in paper form takes up a lot of time that is missing in fast-paced everyday logistics. There are also sources of errors that can arise from unclear handwriting or lost documents. Cloud4Log reduces these risks because the data is recorded digitally once and everyone involved accesses the same data set. This ultimately leads to comprehensive process automation in which deliveries can be tracked and managed largely seamlessly.
Another significant advantage: the self-service solution for drivers brings new flexibility. Where there were previously delays in receiving goods, for example if employees were not there immediately, you can now act independently. This speeds up the entire process from arrival to documentation and release of the delivery.
Transparency and availability
“Transparency as the key to a successful supply chain” – this is how the motto of many modern companies can be summarized. Cloud4Log provides all relevant data about a delivery around the clock. Regardless of whether the goods are currently in the truck, already in receipt of goods or still at the manufacturer: the information on the current status can be accessed in real time. If there are delays or quantity deviations, this will be immediately visible in the system. This makes it easier to plan further action and, if necessary, adapt it to changing circumstances.
In the long term, this transparency also results in closer integration between different companies involved in logistics cooperation. As soon as every actor knows at all times where each delivery is, who is responsible for it and which processing steps are currently pending, collaboration becomes smoother. This is also a crucial aspect for quality assurance and customer satisfaction, as you can react better and faster in critical situations.
Sustainability and cost savings
The digital delivery note helps to drastically reduce paper consumption in logistics. In practice, the savings add up to enormous amounts when you consider how many deliveries and partial deliveries are moved daily in Germany or throughout Europe. Where countless delivery notes used to circulate as printouts, today a QR code that is accessed on a smartphone or tablet is sufficient. This helps companies improve their environmental footprint while reducing costs.
The argument of sustainability is playing a growing role in the modern economy. Customers, business partners and, above all, legislators are increasingly demanding resource-saving actions. “We have to keep the ecological footprint of our processes as low as possible,” emphasize responsible managers. The switch to digital delivery notes is a valuable contribution because it reduces the deforestation of forests for paper, minimizes the transport of paper shipments and streamlines logistics flows.
Security and privacy
When it comes to data security and data protection, Cloud4Log follows strict guidelines. The stored data remains in the cloud, which only authorized users can access. This guarantees a clear separation of roles: drivers, sender and recipient can only access the information they need to carry out their tasks. As soon as the delivery note is acknowledged and completed, it also receives a status that prevents further changes. This makes it possible to subsequently see exactly who entered which data, when and whether there was a discrepancy.
Data protection is a highly sensitive issue, especially in Europe. According to Cloud4Log, compliance with the General Data Protection Regulation (GDPR) is guaranteed. This has the advantage for everyone involved that they don't have to worry about unauthorized data being passed on. Clearly defined data protection concepts ensure that the system can be operated in a legally compliant manner. Especially in a digital world where data is one of the most important competitive factors, trust in a secure platform is crucial.
Ease of use and multilingualism
In logistics, people from different backgrounds often come together. The driving staff in particular often consists of members of different nationalities, so language barriers can arise. Cloud4Log addresses this issue by making the solution available in numerous languages, so each driver can choose the interface that is most understandable for them. This not only simplifies application, but also prevents misunderstandings in sensitive processes.
Cloud4Log has also made progress from a user-friendliness perspective. Accessing the digital delivery note is extremely easy by scanning the QR code. No special app is required, which further reduces the hurdle for practical use. Most drivers are already used to scanning QR codes - for example for public transport tickets or for private parcel services. This concept of self-explanatory operation has proven to be convincing in practice.
Defect reduction and quality improvement
In classic paper-based processes, errors can occur when recording data. Inaccurate handwriting, incorrectly entered quantities, accidentally signed partial deliveries or a lost delivery note page are among the most common problems. With Cloud4Log, data can be captured from the outset in a way that greatly minimizes human errors. For example, every time the QR code is scanned, the centrally stored data record is automatically accessed. Changes such as quantity adjustments or loading equipment replacements are recorded digitally and – if set up – automatically transmitted to downstream systems. This means that all information always remains up to date.
If errors do occur, they can be identified and assigned more quickly in a digital environment. In the past, if a delivery was incorrect, it often had to be laboriously checked to find out exactly where the discrepancy arose. Was it the sender, the transporter or the recipient? And does the original delivery note still exist to understand this? Such problems largely disappear when the documents are available digitally and every change is logged.
How it works in detail: From creation to confirmation
The process behind Cloud4Log is made up of several steps that are interlinked with each other. First, the digital delivery note is uploaded into the system by the sender. This delivery note receives a unique identification based on the GS1 standards (e.g. GDTI), which ensures that the documents can be uniquely assigned to a specific delivery. A QR code is then generated, which is usually scanned by the drivers at the goods exit. Alternatively, the QR code can also be placed on a paper printout to make it easier to get into the system. This step represents the link between physical and digital processes.
A link is stored in the driver's smartphone wallet via the scanned QR code. Here the driver can access the digital delivery note, similar to a plane ticket. He can view this at any time during transport, for example to show control authorities or customs officials the current delivery status. Ultimately, the QR code acts as a key that opens access to the respective data record.
When the delivery finally reaches the recipient, the QR code is scanned again, this time by the staff in the goods receiving department. This means that the recipient's employees also have access to all details, such as quantities, items, batches or other specifications. Deviations or possible transport damage can be documented directly in real time. Photos can be uploaded, comments added or quantity adjustments made. As soon as all checks have been completed, the process is acknowledged. Only then does the delivery note acquire a completed status that can no longer be changed.
This closed system offers a high level of transparency because every change can be tracked with exact time and date. Even if several transporters are involved, the platform maintains an overview. Further expansion stages are conceivable for the future, such as automatic integration into financial and billing systems so that billing and invoicing processes are also supported digitally.
The difference between QR code and GS1 DataMatrix
In practice, there are various 2D codes that store machine-readable information in a very small space. The “GS1 DataMatrix Code” is an option that is already established in many areas – for example in medicine or food retail. Cloud4Log, on the other hand, relies on the QR code because it is still very common and is recognized in almost every standard smartphone scanner.
Although the QR code does not have exactly the same specifications as the GS1 DataMatrix Code, in the case of Cloud4Log it fulfills all the required functions. It is easy to generate, can store large strings such as URLs and is intuitively recognized by users. What is important is not the type of code, but the underlying GS1 standards for identifying and assigning the respective document. Once a code with the correct information is generated, it enables secure access to the digital delivery note.
Suitable for:
- Warehouse management is facing a groundbreaking change: product identification with GTIN and the GS1 Data Matrix Code
- Retail will change: 2D product information with Category Management and the GS1 2D matrix code
Significance for the entire logistics industry
The increasing number of participants in Cloud4Log shows that many companies have recognized the value of digitalization. Over 100 well-known players from various areas such as freight forwarders, dealers and manufacturers already rely on this solution. These include well-known logistics service providers who cover a large part of national goods traffic. The fact that more and more players are joining increases the benefits for everyone involved, because only when a critical mass is reached does the full effect of a unified platform unfold.
In the long term, an industry-wide digital delivery note based on GS1 standards can significantly simplify logistical processes. Transporters and recipients would no longer have to deal with different document formats, but could rely on uniform data structures. Customs processes or border controls in intra-European traffic would also be easier to handle because documents could be provided quickly. In addition, analysis options are created that were not readily available in the past: digital data capture allows you to see, for example, what time of day deliveries arrive most often or in which region there are particularly high volume deviations. Such key figures help companies to continuously work on process optimization.
Challenges and requirements for implementation
As attractive as Cloud4Log may be, introducing such a solution requires certain organizational, procedural and technical changes. Companies that previously created their delivery documents manually must keep the relevant data digital and structured. This may mean adjusting the ERP systems. In addition, responsibilities should be clearly defined. For example, if the drivers themselves register goods receipt, it must be ensured that they have the necessary access rights and are informed about the process.
The willingness to work together is also a crucial factor. The entire supply chain only benefits if all relevant actors – shippers, freight forwarders, drivers and recipients – are able and willing to use the platform. If even one link in the chain is missing, the process could stall. That's why Cloud4Log and BVL rely heavily on networking and training in order to convince as many companies as possible and to standardize the exchange.
Another aspect is the stability of the digital infrastructure. Drivers must be able to rely on the fact that they have sufficient mobile phone reception to scan the QR code and retrieve the data while on the move. Although data networks are constantly improving, dead spots can occasionally occur, especially in rural regions. Temporary storage solutions can sometimes help so that data is loaded while reception is still available. Nevertheless, a functioning online connection remains a basic requirement for the uninterrupted use of the digital delivery note.
Perspectives and future prospects
Digitalization in logistics is far from over. Rather, Cloud4Log is a building block in a major transformation process that will shape the industry in the coming years. It is conceivable that the platform will integrate additional functions in the future, such as the processing of digital freight documents (eCMR), automated customs reports for international deliveries or even the connection to Internet of Things (IoT) devices, the temperature, humidity or vibrations in real time report.
“We see the digital delivery note as a groundbreaking step,” say industry experts, “but this is just the beginning of comprehensive networking.” If it is possible to digitize and network many processes, complex supply chains can become much more efficient, transparent and resilient design. Digitalization also plays a key role in terms of sustainability, as it allows companies to analyze their transport routes and capacity utilization more precisely and optimize them accordingly.
With a view to Cloud4Log specifically, the number of participants is likely to continue to increase. The more companies join, the more data becomes available and the more useful the platform becomes for everyone. The self-service function could also be further developed, for example through automated communication with warehouse robots at goods receipt, which immediately book deliveries into the warehouse system. Integration into billing systems that seamlessly generate digital invoices and credits is also a promising scenario.
Practical example: From production to the shelf
An imaginary example shows how Cloud4Log improves processes: Let's say a chocolate bar manufacturer - let's call it SchokoDeluxe - produces thousands of units every day that are shipped to various retailers. Using Cloud4Log, SchokoDeluxe creates a digital delivery note for each delivery, which is linked to the corresponding GS1 identification code. As soon as the goods leave the manufacturer's warehouse, the driver receives a QR code that is stored in his wallet.
During a check on the way, the driver scans the QR code with his smartphone and shows the digital delivery note. This saves time and prevents misunderstandings because all details are clearly stored in the cloud system. When they arrive at the retailer, the driver logs in using the self-service function by showing the QR code again. The goods receiving staff calls up the digital delivery note and compares the quantity delivered with that ordered. If everything matches, the delivery is acknowledged digitally. Any deviations or damage are documented on site. SchokoDeluxe can see in real time that the goods have been accepted and the next steps, such as booking them into the retailer's inventory, can be initiated immediately.
Throughout the entire chain, there is no paper document that could be lost. SchokoDeluxe itself also saves time, as manual typing or subsequent scanning of delivery notes is no longer required. Traceability is also improved: If the chocolate bars later had to be recalled for quality reasons, SchokoDeluxe could immediately identify which deliveries were specifically affected.
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Integration with existing industry solutions
Before Cloud4Log, various companies had already started to develop their own digital delivery note solutions. Now the question is whether they have to give up these investments to use Cloud4Log. The short answer is “no”. Cloud4Log is designed to be linked to existing tools and industry solutions. The open API interface provides the basis for information flows to take place bidirectionally. Certain data that a company already records digitally can be automatically transferred to the Cloud4Log platform without any additional manual effort.
The same applies vice versa: If you want to use data that is available in Cloud4Log for other systems - for example transport management or merchandise management systems - you can access it. Cloud4Log thus expands the functionality of existing solutions and does not completely replace them. This approach is particularly important for large logistics service providers that have their own IT resources in order to keep the inhibition threshold for participation as low as possible.
Collaboration and networking as a success factor
The future of the logistics industry is connected. Projects like Cloud4Log show that it is not just about digitizing a single process, but rather about mapping and harmonizing entire value networks. Without a common basis, such as uniform standards and platforms, one would remain trapped in isolated solutions that only bring limited benefits.
“We have to coordinate across the industry,” say those responsible for the project. “Digitalization is only successful if everyone follows suit. Large and small companies, manufacturers and retailers, logistics service providers as well as technology providers.” In this context, Cloud4Log is viewed as a catalyst to promote collaboration among market players. Last but not least, the end customer also benefits because delivery processes can be accelerated, cost savings can be achieved and higher delivery quality can be achieved.
The BVL in particular, as an established institution in the logistics industry, brings together an extensive network of practitioners, scientists and decision-makers from politics and business. At conferences, in specialist groups and in digital events, common goals are defined, experiences are exchanged and standards are set. In this way, the idea of the digital delivery note can be spread further using Cloud4Log and develop even greater momentum.
Digitalization in logistics is no longer just a trend, but an urgent necessity
Projects like Cloud4Log offer a concrete answer to the question of how paper processes can be replaced efficiently and in a way that conserves resources. The digital delivery note revolutionizes the flow of goods between manufacturers, shipping companies and trading companies. Time-consuming and error-prone paper-based work steps are replaced by a transparent, cloud-based workflow that gives everyone involved more overview and scope for action.
The following aspects in particular make Cloud4Log a future-oriented solution:
- Efficiency: Processes are automated and accelerated, saving time and costs.
- Transparency: Real-time information allows a seamless view of the flow of goods.
- Sustainability: The drastic reduction in paper makes an important contribution to environmental protection.
- Security: Strict access rights and GDPR compliance create the necessary trust in the platform.
- Ease of use: The self-service solution, multilingual interfaces and QR code access make it easier to use.
In addition, the strict use of GS1 standards ensures that it is an established and future-proof solution. The first results already show that Cloud4Log is being widely accepted in the industry. The number of participating companies is constantly growing, and the benefits are already noticeable in day-to-day operations.
The big advantage of a cross-industry platform is its scalability. The more actors join, the more fluid the exchange becomes and the greater the efficiency gains for everyone. At the same time, the system allows both small and large companies to be integrated without complex IT projects. Ultimately, Cloud4Log is a prime example of how technical innovation and collaboration can complement each other to create real added value in logistics.
At a time when supply chains are increasingly global and highly interconnected, an end-to-end digital process is key to meeting growing demands for speed, accuracy, flexibility and sustainability. Cloud4Log provides an example of how this can be implemented: with transparent, secure and at the same time user-friendly processes that are based on recognized standards and modern technologies.
The project should not only change transport logistics, but also provide new impetus in other areas of value creation. The combination of digitalization and standardization enables companies to leverage extensive optimization potential and move to the next stage of their development. Because if you don't take care of digital solutions today, it will be difficult to keep up in a few years. Cloud4Log sends a clear signal: “Paper is a thing of the past – the future is digital.”
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