The innovative project of the German Armed Forces Logistics Command: Future-oriented cooperation in logistics
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Published on: July 2, 2025 / Updated on: July 2, 2025 – Author: Konrad Wolfenstein
The innovative project of the German Armed Forces Logistics Command: Future-oriented cooperation in logistics – Image: Xpert.Digital
How the German Armed Forces are restructuring their logistics capacities for the 21st century
Strategic importance and background
The "Future-Oriented Cooperation in Logistics" project was developed by the German Armed Forces Logistics Command as a pioneering initiative to strengthen military logistics capabilities for the challenges of the 21st century. Launched in 2015, the project is gaining even greater strategic importance in light of the changed security policy situation in Europe.
The German Armed Forces (Bundeswehr) face significant challenges: They require considerably greater secure logistical capacities than are currently available to meet the demands of national and collective defense. At the same time, Germany's central geographical location in Europe has made it a crucial logistical hub for NATO and EU partner nations. As a transit nation, Germany must provide Host Nation Support on a significantly larger scale than before, requiring the deployment of up to 800,000 NATO allies across German territory within 180 days.
These enormous demands cannot be met by military capabilities alone. The Bundeswehr Logistics Command, one of the largest capability commands in the armed forces with approximately 17,000 soldiers and civilian employees at 72 locations, recognized early on the need to develop innovative ways of cooperating with the private sector.
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Structural design of the project
The project is divided into four specialized expert panels, each examining and developing different areas of cooperation between the German Armed Forces and the private sector. These panels work systematically on concrete solutions and have already achieved considerable success.
Materials management and storage
The first panel focuses on the value-preserving storage of selected ammunition and material segments. Given that the Bundeswehr's storage capacities are already 85 percent utilized and significantly larger quantities of ammunition and materials will need to be stored in the future, innovative cooperation models have been developed.
The challenge lies particularly in the storage of approximately 1,300 different types of ammunition, with ammunition with high equivalent mass, large space requirements, and large quantities posing critical factors. The panel has developed various model approaches, including the demand-driven provision of training and maneuver ammunition by industry and its value-preserving storage by commercial partners.
A specific pilot project has been developed for supplying military training areas with ammunition. In this project, logistics service providers store the ammunition professionally on their company premises and, upon request from the troops, deliver it directly to the training areas via the Bundeswehr logistics center. This model could initially be tested at the Munster/Bergen training area or at the combat training center.
Logistical support for the deployment of forces
The second panel addresses logistical support for intermodal transport and the deployment of forces. Germany acts as a strategic hub in the heart of Europe and must be able to support allied troops during transit as well as deploy its own Bundeswehr forces to the periphery of the alliance territory.
The integration of commercial services across a full-service spectrum is crucial here, as domestic military capabilities are foreseeably unavailable or only available to a very limited extent. The panel is developing cooperation models for various service areas, including the operation of transshipment points at land, air, sea, and inland waterway terminals, as well as the provision of transport services and the establishment of rest areas along the routes.
A significant achievement of this panel is the conclusion of the first full-service provider contract with feps GmbH in August 2017 for accommodation during deployments. This groundbreaking contract makes it possible to construct accommodations for up to 2,000 soldiers in the deployment area without having to conduct complex local tendering processes.
Another milestone was recently reached: Rheinmetall received a major contract worth up to €260 million for logistical support during troop deployments. The contract explicitly stipulates that these services will also be provided in the event of a defense emergency or an alliance conflict and includes the construction and operation of rest and assembly areas along deployment routes.
Maintenance and manufacturing
The third panel focuses on cooperation opportunities in the areas of maintenance and manufacturing. Various approaches are explored here to sustainably secure capabilities through synergies with industry and to maintain or increase capacities.
Particular attention is paid to cooperation in stationary maintenance facilities, where innovative models such as the "hybrid model" have been developed. In this approach, civilian company personnel and military personnel work "shoulder to shoulder" in Bundeswehr-owned facilities under Bundeswehr management. As an alternative, the "parallel model" is available, in which parallel but separate work areas are established.
One specific project focuses on the readiness of rapidly deployable field camp equipment, with cooperation partners assuming responsibility for storage, maintenance, upkeep, and ensuring readiness for deployment. The Bundeswehr retains logistical control, while practical implementation is carried out by commercial partners.
Cooperative personnel models
The fourth panel develops innovative personnel collaborations between the German Armed Forces and the private sector. In light of demographic change and the shortage of qualified personnel, this cooperation represents an important solution for both sides.
The professional training of soldiers in the logistics sector of the German Armed Forces largely meets or even exceeds civilian standards. After completing their active service, career soldiers represent an important personnel resource for the logistics industry, while simultaneously continuing to play a significant role for the German Armed Forces as reservists.
The Thuringian Logistics Network has already announced its participation in this initiative, with the aim of attracting and retaining skilled workers through reciprocal employment and training. The explicit intention is not to involve any mutual poaching, but rather to establish a cooperative partnership.
Optimization of procurement procedures
In addition to the four main areas, the project also works on optimizing procurement procedures. A guideline for market research and a position paper on specifications have been developed to improve cooperation between clients, service providers, and businesses.
These measures aim to systematize insights gained in recent years and ensure better synchronization among all stakeholders from the outset. The market analysis guide is available to interested companies via the official website.
Your dual-use logistics experts
Dual-use logistics experts - Image: Xpert.Digital
The global economy is currently undergoing a fundamental transformation, a watershed moment that is shaking the foundations of global logistics. The era of hyper-globalization, characterized by the relentless pursuit of maximum efficiency and the "just-in-time" principle, is giving way to a new reality. This new reality is marked by profound structural breaks, geopolitical power shifts, and increasing fragmentation of economic policy. The once taken-for-granted predictability of international markets and supply chains is dissolving and being replaced by a period of growing uncertainty.
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German Armed Forces open logistics to the private sector: New business opportunities worth billions
This presents concrete business opportunities for companies in various sectors
Materials management and storage
Companies can participate in the secure storage of ammunition and materials, with a particular focus on large volumes of ammunition and materials of various hazard classes. Contracts are awarded through multi-partner framework agreements with terms of five to seven years.
Transport services
Logistics companies can apply to act as general contractors for defined scopes of intermodal transport services. This includes port operations at sea, air, and rail terminals, as well as the provision of rest areas.
Maintenance and manufacturing
Companies with relevant technical expertise can participate in collaborations involving stationary maintenance facilities. Skilled workers with specialized qualifications in various trades are of particular importance in this context.
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Success stories and pilot projects
The project has already achieved several concrete successes, serving as a blueprint for further collaborations. The German Armed Forces' first full-service provider contract with feps GmbH for accommodation during deployments is considered a milestone in civil-military cooperation. This two-year contract, with an option to extend, makes it possible to construct complex operational facilities without time-consuming local tendering processes.
The cooperation agreement with Deutsche Post DHL Group, signed in 2017, demonstrates another successful model of collaboration. This agreement enables retiring soldiers to transition seamlessly into civilian employment, while simultaneously recruiting postal workers for reserve service.
The pilot project for ammunition supply at military training areas has been successfully developed and will initially be tested at the Munster/Bergen training area or the combat training center. Logistics service providers will handle the professional storage and direct delivery to the training areas upon request from the Bundeswehr Logistics Center.
Strategic importance for Germany
The initiative “Future-Oriented Cooperation in Logistics” has strategic significance that extends far beyond mere efficiency gains. Due to its geographical location, Germany plays a key role in the European security architecture. As a central transit nation and logistical hub, the country is essential for the functionality of NATO's collective defense.
The 2023 National Security Strategy explicitly emphasizes Germany's role as a "logistical hub" for NATO and identifies strengthening and protecting military logistics as a key national task. The challenge is immense: while at the height of the Afghanistan mission only about 30 percent of the alliance's troops were fully deployable, now potentially 800,000 soldiers must be able to be deployed to NATO's eastern flank in three waves.
The Bundeswehr's logistics command in Erfurt is undergoing a significant expansion. Major General Gerald Funke announced that the command will receive 1,000 additional positions in the coming years, primarily for a new logistics battalion. At the same time, the Bundeswehr is investing nearly €100 million in the Erfurt site, €50 million of which is earmarked for the Löberfeld Barracks.
Skilled worker shortage impacts defense: Innovative cooperation models between business and the German Armed Forces
The project's implementation faces several challenges, which are being addressed systematically. A key issue is the legal complexity involved in integrating civilian service providers into military processes. Particularly with regard to munitions management, aspects of the War Weapons Control Act, transfers of ownership, and complex interfaces must be considered.
Security requirements present a further challenge. Personnel from cooperation partners working in sensitive areas require security clearances up to level "Ü2 sabotage protection". This necessitates careful selection and qualification of partners.
Demographic trends and the resulting shortage of skilled workers affect both the German Armed Forces and the economy equally. This project addresses this challenge through innovative personnel models that enable reciprocal employment and training.
Another critical aspect is ensuring security of supply. The Bundeswehr's logistics must be able to rely completely on its civilian-commercial backup, as the responsibility for supplying the armed forces during deployment remains unalterably national. At the same time, civilian service providers generally have the right to refuse to perform their services, which necessitates new approaches in contractual agreements and accompanying framework conditions.
Technological innovation and digitalization
The project also takes into account the increasing importance of technological innovation and digitalization in logistics. The German Armed Forces are working on integrating modern technologies into their logistics processes to increase efficiency and responsiveness. This includes the use of digital platforms for coordination between military and civilian partners, as well as the implementation of automated procurement systems.
The development of common standards and interfaces between military and civilian systems is of crucial importance. This makes it possible to leverage the advantages of both worlds: the innovative strength and efficiency of the economy combined with the specific requirements and security standards of the German Armed Forces.
Economic impact and market potential
The project “Future-Oriented Cooperation in Logistics” opens up significant economic opportunities for the German logistics sector. The German Armed Forces (Bundeswehr) must quickly invest considerably more money in its logistics system, from which the commercial logistics industry will also benefit. The planned investments will create new business areas and long-term partnerships between the public and private sectors.
The various panels offer companies concrete participation opportunities with different investment and risk profiles. The spectrum of possibilities ranges from the storage and management of materials to complex transport services and specialized maintenance services.
The long-term perspective is particularly attractive: The changed security situation in Europe and the focus on national and collective defense mean that the need for logistical capacities will remain permanently elevated. This creates predictable business opportunities for companies that integrate into the system early on.
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International dimension and NATO cooperation
The project also has an important international dimension. Germany is working closely with NATO partners to develop common standards and procedures for logistical support. The Joint Support and Enabling Command (JSEC) in Ulm plays a central role in the multinational coordination of logistics processes.
The cooperation also extends to the area of military rail transport. The framework agreement with Deutsche Bahn for international rail transport, which enables cross-border transport within NATO, is an example of successful international cooperation. This agreement allows, among other things, the deployment of German forces from the Very High Readiness Joint Task Force (VJTF) as a rapid reaction force.
Military logistics is opening up to innovative collaborations with the private sector
The project “Future-Oriented Cooperation in Logistics” is continuously evolving. The German Armed Forces Logistics Command is open to new ideas and areas of cooperation from the private sector. In addition to the established panels, further opportunities for cooperation exist in closer collaboration with commercial enterprises at German Armed Forces depots and in the training of drivers.
The experience gained from the pilot projects is continuously incorporated into the further development of the cooperation models. Particular emphasis is placed on the scalability and transferability of successful approaches. The regular information events serve not only to inform interested companies, but also to facilitate the exchange of experiences and the joint further development of the cooperation models.
An important aspect of future development is the integration of sustainability considerations into logistics processes. The German Armed Forces are working on developing more environmentally friendly logistics solutions, which opens up new opportunities for cooperation with companies specializing in sustainable technologies.
The "Future-Oriented Cooperation in Logistics" project of the German Armed Forces Logistics Command represents an innovative and forward-looking initiative that not only strengthens Germany's military capabilities but also opens up significant economic opportunities for the German logistics sector. Through the systematic development of cooperation models between the public and private sectors, sustainable partnerships are created that serve both the country's security interests and the economic interests of the participating companies. Continuous development and adaptation to new challenges make this project a crucial building block for the future viability of Germany's security and logistics architecture.
Hub for Security and Defense - Advice and Information
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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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