Millions of misinvestments-dual-use logistics as a start solving approach for the structural deficits of the Bundeswehr

Dual-use logistics as a solution for the structural deficits of the Bundeswehr: a critical analysis of the waste and strategic realignment

The current criticism of the Federal Audit Office in the Bundeswehr reveals fundamental structural problems: While billions of special funds are wasted, there is a lack of a coherent strategy for the establishment of a defense defense. The article illustrates how a lack of planning leads to multi-millions, while at the same time dual-use logistics as a strategic approach, has the potential to increase efficiency and systematically fix the structural weaknesses of the overlead and “head-heavy” Bundeswehr. The challenge is to interpret a strategically well thought -out, modular approach from the previous waste of waste that intelligently networked civilian and military infrastructures.

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The concept of dual-use logistics: basics and strategic potential

Definition and delimitation of traditional dual-use goods

Dual-use goods are traditionally defined as “goods with a double use”-objects, technologies and knowledge that generally serve civil purposes, but can also be used for military purposes. The EU dual-us regulation (EU) 2021/821 strictly regulates these goods in order to control the spread of sensitive technologies. However, this traditional definition only includes a fraction of the strategic potential, which lies in the systematic networking of civil and military logistics structures.

The expansion of the dual-use concept to the logistics infrastructure opens up completely new dimensions. While traditional dual-use goods are primarily subject to export control regulations, dual-use logistics refers to transport systems such as railway lines, bridges, tunnels and in particular terminals of combined traffic, which are designed in such a way that they meet both the requirements of civil freight transport and the specific needs of military transport. This strategic expansion of the term enables synergies between civilian economic interests and military defense requirements systematically.

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Innovative approaches to infrastructure optimization

The concept of “double dual-use logistics” is a particularly advanced variant that requires the coordinated interaction of a large number of actors, including the Bundeswehr and its logistics command. This approach promises to create a more resilient and powerful transport infrastructure that benefits two areas. Critical combined traffic systems can primarily be financed through defense means that are provided under the heading “Security of Defense and Defense Logistics”, but are designed from the start in such a way that they can be used efficiently by civil logistics actors in peace.

The strategic importance of this approach is that Germany must have a high -performance and resilient transport infrastructure both as a central logistics hub in Europe and as a decisive turntable for NATO, especially in the context of the Host Nation and the defense of the eastern flank. However, the current analysis shows considerable deficits in the state of the German rail network, especially for bridges, signal boxes and highly stressed sections of the route that affect both civilian economic activity and military operational readiness.

Analysis of structural waste: Symptoms of a systemic problem

Millions of misinvestments in IT projects

The criticism of the Federal Audit Office at the Ministry of Defense under Boris Pistorius illustrates the extent of the structural problems. The waste of software licenses has been particularly serious: The Bundeswehr has spent more than 50 million euros for unused software from a certain provider since 2006 and pays the provider at least 5 million euros annually for the maintenance of this unused software. This waste weighs particularly badly because the Bundeswehr knew that it had to pay the provider an annual fee for software maintenance, even if it does not use the software.

Another example of problematic procurement practice is the billion-dollar IT project Tawan LBO of the armaments group Rheinmetall, which is expected to cost around 5.5 billion euros for almost ten years. The Federal Audit Office warned of “considerable development risks” and possible “investment ruins”, since the contractual partner cannot largely meet the requirements of the Bundeswehr to the software. It is particularly problematic that the order was awarded directly to Rheinmetall Electronics without regular procurement procedures.

Lack of strategic planning and control

The Federal Audit Office states that the published examples “from unsuccessful procurement and digitization projects to management errors to avoidable additional expenses in the millions range for unused software licenses”. This waste is particularly problematic because the Bundeswehr has almost unlimited financial resources available for defense spending due to the loosening of the debt brake. The examiners warn that the “signal of the unlimited debt possibilities” could lead to increasing prices in the defense area, since there are incentives for industry to demand higher prices for consistent services.

The Federal Ministry of Defense should prevent such incorrect purchases through an effective specialist supervision and reduce the ongoing expenses for unused software. Instead, there is a pattern of payments for projects without it being clear whether they are needed or function at all. This practice violates fundamental economic principles and endangers the long -term financing of defense ability.

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Structural deficits: the “headless” of the Bundeswehr

Personnel mishap and organizational inefficiency

A central structural problem of the Bundeswehr is its pronounced “headgown” - an overweight of administrative leadership towards the actual group. The Federal Audit Office calls for a comprehensive reorganization: "In order to align the Bundeswehr to state and alliance defense, the personnel body must be converted: away from the current headlight, towards more 'troop'". This criticism is based on specific figures: Compared to 2010, around 60,000 positions for soldiers were less available to the armed forces in 2024, which corresponds to a decline of 24 percent.

The development of the personnel structure is particularly problematic: While the number of positions for the team and non-commissioned officer level fell by 40 or 20 percent, the number of positions for the officer and staff officer level increased by a total of 5 percent. The proportion of positions for the officer and staff officer level grew from 15 percent in 2010 to 21 percent in 2024. This development leads to a military personnel body that is significantly more head-heavy today than in 2010.

Administrative inflation despite reform promises

The Ministry of Defense itself is a prime example of the lack of willingness to the structural reform. Contrary to announcements, the ministry was not slownened: In 2017, around 2,500 posts were found as “adequate staffing”, but the house with around 3,000 posts is now comparable again today.

In addition, several ten thousand posts are provided for tasks that do not have to be perceived according to the Ministry of Department in the event of the state and alliance defense. The Federal Audit Office states: "This size is unacceptable." The criticized “doping structure of the military personnel body” means that tasks are assigned ever higher rank or better paid soldiers to increase the attractiveness of the positions, but many positions remain vacant.

Dual-use logistics as a strategic solution

Modular approach to system transformation

The dual-use logistics offers a strategic solution that can systematically tackle the structural problems of the Bundeswehr. Instead of investing billions in isolated, often unused systems, the modular structure of a dual-use infrastructure enables a gradual modernization. The concept is based on designing critical infrastructure elements in such a way that they meet both military and civilian requirements and thus enable double added value.

The strategic advantage lies in avoiding redundancies and maximizing usage efficiency. While the Bundeswehr traditionally builds up separate military logistics systems that are subsequently subdued in peace, dual-use logistics enables continuous use and thus better amortization of the investments. This is particularly relevant in view of the fact that Germany's role as a “central logistics hub in Europe and as a decisive turntable for NATO” requires a high -performance and resilient traffic infrastructure.

Integration of innovation and proven structures

A particularly promising aspect of dual-use logistics is the integration of innovative technologies. The Bundeswehr Cyber ​​Innovation Hub is already working successfully with dual-use solutions that are found in young, innovative startups. From the initial idea to a first MVP product to testing with soldiers, these projects often only need a few months. However, the problem is not in the event of a lack of innovation, but when ensuring sustainable effect in the Bundeswehr due to too slow financing and procurement processes.

Examples of successful dual-use innovations show the potential: "Roll!" is a digital solution for route and navigation calculation that combines previous logistical planning methods in a digital tool. “Yarded” digitized and automated existing processes for laying heavy military devices and was able to win NATO Innovation Challenge. These examples make it clear that dual-use technologies from civil logistics are currently in a “cheap field”.

Economic efficiency and strategic autonomy

The economic advantages of dual-use logistics are considerable. Instead of operating separate military and civilian infrastructures in parallel, intelligent networking enables significantly higher capacity utilization and thus better economy. This is particularly important because the Federal Audit Office warns that a “permanent and solid financing of the defense capacity of the Federal Republic of Germany is not guaranteed by a significantly debt -financed and therefore structurally not sustainable household”.

The dual-use logistics can also contribute to solving the personnel problem. Through the joint use of infrastructures, qualified specialists can be used for both civil and military tasks, which increases efficiency and counteracts the shortage of skilled workers. This is particularly relevant because innovative materials such as wood as a “dual-use raw material” for military and civil logistics can play a central role.

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Challenges and implementation strategies

Overcoming institutional inertia

The biggest challenge in implementing dual-use logistics lies in overcoming institutional inertia and the established structures. The Federal Audit Office notes that a comprehensive criticism of task cannot be recognized and that “defenses are to be separated from less important”. This requires fundamental change in the way of thinking of military leadership and political decision -makers.

An essential aspect is the acceleration of approval procedures and the adaptation of the production capacities. For example, the Federal Association of Woodpacking Middle pleads for accelerating corresponding production approval process and having the necessary adjustment of production capacities secured by the defense budget. This shows that traditional areas such as wood package can also be important building blocks of an efficient dual-use strategy.

Technological integration and standardization

The successful implementation of dual-use logistics requires well thought-out technological integration and standardization. This affects both the physical infrastructure and the digital systems. The EU Dual-Ulle Ordinance (EU) 2021/821 has already determined joint approval obligations and procedures for all EU member states, which is an important basis for cross-border coordination.

The development of modular, serial and systemic construction methods is particularly important that can be implemented quickly. Wood is particularly suitable as a renewable, flexible building material. The introduction of a building class “V” for defense or supply with reduced technical requirements and systematic, simplified plans could accelerate implementation.

Financing and risk management

A critical success factor is the development of sustainable financing models that adequately take into account both military and civilian users. The Federal Audit Office rightly warns of the risks of uncontrolled expenses: "The risks increase with every additional euro that is issued uncontrollably". A dual-use strategy must therefore include clear cost-benefit analyzes and success measurements from the start.

The challenge is to ensure the necessary speed in procurement without throwing economic principles overboard. This requires new procurement models that combine flexibility with control and at the same time promote innovation. The Cyber ​​Innovation Hub already shows how, through market-available dual-use solutions, from the initial idea to testing with soldiers are often only needed for a few months.

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Strategic realignment as a requirement of the hour

The analysis of the Federal Audit Office in the context of dual-use logistics illustrates that the Bundeswehr is faced with a pioneering decision. Either she continues the previous path of structural waste and organizational inefficiency, or it uses the historical opportunity of a fundamental strategic realignment through intelligent dual-use concepts.

The enormous financial resources from the special fund offer a unique opportunity to not only remedy military deficits, but also to build a modern, resilient and economically sustainable defense infrastructure that strengthens Germany as a NATO partner and as a European logistics node. The modular structure of a dual-use logistics could serve as a strategic starting point in order to systematically address the organizational, personnel and technological challenges of the Bundeswehr. However, it is crucial that this transformation is implemented with the necessary strategic foresight, economic discipline and political determination - only in this way can the current crisis become an opportunity for a future -proof German defense architecture.

Markus Becker

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Chairman SME Connect Defense Working Group

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Konrad Wolfenstein

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contact me under Wolfenstein ∂ Xpert.digital

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