Success with SME sales alliances in EU defense logistics: sales partnerships for large-scale projects with EU high-high tech
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Published on: July 23, 2025 / update from: July 23, 2025 – Author: Konrad Wolfenstein
Success with SME sales alliances in EU defense logistics: Sales partnerships for large-scale projects with EU-Hightech – Image: Xpert.digital
Automated warehouse, clever trains: How high-tech alliances fix the weaknesses of NATO
The forgotten superpower: why logistics about Europe's security decides – and who benefits now
SME as an innovation driver: Europe's defense logistics in the departure through strategic sales alliances ### Europe's new defense: Why small companies are now the secret stars ### from the rail to AI: This is how the middle class wants to revolutionize military logistics
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The new paradigm – Europe's defense ability to change
The turn of the times as a catalyst for a new industrial strategy
Geopolitical context
The geopolitical landscape of Europe has fundamentally changed in recent years. The annexation of the Crimea in 2014 and in particular the large -scale attack war in Russia against Ukraine since February 2022 have been marking a turning point, which is referred to in Germany as a “turning point”. These events have shaken the prevailing assumption of a stable peace order on the continent for decades and brought the need for robust and credible collective defense ability back to the focus of European security policy. In view of increasing geopolitical tensions, the European Union has put the topic of defense at the top of its agenda and strives to strengthen its armaments industry in order to make it more reactionable, more innovative and resistant. The return to the state and alliance defense is no longer a theoretical scenario, but a strategic need to have profound implications for the armed forces, industrial policy and technological development across Europe.
The NATO-East flank as a strategic focus
The strategic focus of this realignment is unmistakable on the eastern flank of NATO. From the Baltic Sea in the north to the Black Sea in the south, the alliance has massively reinforced its presence to ensure credible deterrence towards potential aggressors. After the Russian invasion of Ukraine, the existing multinational battle associations in the Baltic States and Poland were supplemented by four more in Bulgaria, Hungary, Romania and Slovakia. At the NATO summit in Madrid 2022, it was also decided to be able to increase these associations for brigade strength if necessary. However, this military presence is only effective if it is supported by a superior logistical ability. The strategic challenge is to move massive reinforcement forces very quickly in the event of a crisis – plans to move up to 800,000 NATO soldiers within 180 days – and through the eastern flank. Initiatives such as the “Eastern Flank Flank Deterence Line” launched by the USA and their allies underline this focus. It prioritizes ground -based skills and the interoperability of gun systems to build a robust line of defense. This is supplemented by regional efforts such as the “Baltic Defense Line”, a joint project of Estonia, Latvia and Lithuania for the construction of defense plants, and Poland's “East Shield” program, which also aims at attaching the border. These initiatives not only require weapons systems, but above all a highly developed, cross -border logistics for material, ammunition and supply goods.
The European answer: a new industrial strategy for the defense area
In response to the changed security situation, the European Union initiated a paradigm shift in its defense policy. The goal is clearly formulated: Member States should invest more, better, together and European in their defense. This requires the establishment of a reactionable and resilient European technological and industrial defense base (EDTIB), which is able to cover the needs of European armed forces and to secure technological sovereignty. Central strategic documents and initiatives show the way. The “strategic compass for security and defense” defines the ambitions of the EU and emphasizes the need to be able to act faster and more determined. The white book “Readiness 2030” expected for 2025 is intended to make further decisive course in order to increase the EU's readiness for defense. Programs such as the European Defense Fund (EDF) with a budget of almost 8 billion euros for the period 2021-2027 and the resulting European program for the Defense Industry (EDIP) are intended to promote collaborative research, development and procurement of armaments. These initiatives aim to overcome the fragmentation of the European defense market and to make industrial cooperation a norm.
Logistics as a decisive factor (“Logistics Win Wars”)
In this new strategic environment, the logistics focus on consideration. The old military wisdom that amateurs talk about tactics, but professionals talk about logistics, is gaining new urgency. Without superior, resilient and fast logistics, neither credible deterrence nor successful defense operations are conceivable. The ability to bring troops and material to the right place at the right time becomes the decisive factor. Due to its geographical location and economic strength, Germany has a key role as a central logistical hub for NATO and EU operations. The support of Allied forces in the laying by German territory (Host Nation Support) has become a core task of the Bundeswehr. The efficiency and speed of these logistical processes are a direct yardstick for the defense capacity of the entire alliance. The challenge is to create a logistics chain that not only works in peace, but also remains robust and adaptable under the conditions of a crisis or a conflict.
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The indispensable but ambivalent role of SMEs in the European defense ecosystem
Definition and economic importance of SMEs
Small and medium -sized companies (SMEs) form the backbone of the European economy. According to the definition of the EU Commission, a company is one of the SMEs if it employs fewer than 250 employees and either achieves annual sales of a maximum of 50 million euros or has an annual balance sheet total of a maximum of 43 million euros. In the European Union, the approximately 23 million SMEs represent over 99 % of all companies and employ around 100 million people. They are not only a decisive factor for growth and prosperity, but also central drivers for the green and digital transformation of Europe. Their importance is so fundamental that the EU policy follows the principle of “Think Small First”, which says that the concerns of SMEs should first be taken into account in political measures.
SME as recognized innovation driver in the defense sector
Especially in the high -technological defense sector, the role of SME as an indispensable actors is increasingly recognized. They are considered “essential drivers of innovation”, especially with regard to disruptive technologies that are of crucial importance for the future defense ability of Europe. While large armaments companies are often bound in long development cycles for complex weapon systems, SMEs and especially start-ups are characterized by their agility, high flexibility and specialization. They are often leading in future fields such as artificial intelligence (AI), quantum technology, cyber defense, robotics and unmanned systems. Your inherent strengths enable you to react faster to new requirements and to meet specific customer requests. SMEs can often change their production faster and are characterized by a more innovation -friendly corporate culture that is characterized by close employee loyalty and high motivation. This ability to quickly develop innovative solutions makes it an indispensable part of the European technological and industrial defense base (Edtib).
The hard reality: structural underrepresentation and systemic hurdles
Despite this political recognition and its obvious innovative strength, SMEs in the European defense sector face a tough reality: they are structurally massively underrepresented. The discrepancy between your potential and your actual participation in public defense orders is blatantly. A study shows that SMEs in Germany were responsible for only 3.2 % of the industry turnover in 2014, while its share in the overall economy was 35.5 %. A similar picture is shown at the EU level, where SMEs only made up 6.1 % of sales in a sample of public orders in the defense sector, but achieved a share of 29 % in the entire public sector. These figures show that the “barrack gate” seems to be far more open to large, established companies than for innovative SMEs and start-ups.
Analysis of access barriers
The reasons for this marginalization are systemic nature and form high hurdles for the market entry and the growth of SMEs in the defense sector.
Financing hurdles: One of the greatest challenges is access to capital. Many banks and private investors hesitate to invest in defense companies. On the one hand, this is due to strict ESG guidelines (Environmental, social, governance), which are often critically evaluated by armaments investments, and on the other hand, and on the other hand due to the risk of risk with long development cycles and uncertain acceptance arries. This hits SMEs, which are dependent on external financing for innovation and scaling.
Bureaucratic and regulatory complexity: The award procedures in the defense area are often extremely complex, lengthy and associated with high formal requirements. Legal sacrifices and the need to provide extensive economic and technical evidence overwhelm the administrative capacities of many SMEs overwhelm. Measures such as the EU directive to simplify the transfer of defense goods should remedy the situation, but the basic complexity of the procurement processes remains a massive barrier.
Market fragmentation and dominance of system houses: The European Defense Industry has grown historically and fragmented nationally. It is dominated by a small number of large system houses that act as the main contractor for the armed forces. For SMEs, only the role of the supplier remains in the second or third row. This dependency leads to Margendruck and limits the possibilities to place your own innovations directly on the market. The massive increase in defense spending harbors the risk of further cementing this dominance if the funds are primarily distributed over the large integrators.
A shortage of skilled workers: In particular, there is an acute lack of qualified specialists, especially in the high technology areas that are decisive for future defense such as AI, quantum computing and cyber security. SMEs compete for the best talents with the civilian tech industry and are often disadvantage.
A profound paradox manifests itself: While politics declives the innovative strength of SMEs as essential for the strategic autonomy and technological superiority of Europe, the real structures of the defense market systematically favor the established large companies. The political confessions to promote SMEs, as formulated in strategy papers, are in the sharp contrast to the reality of the award practice. The system requirements – high capital requirements, complex compliance regulations and lengthy, resource-intensive tendering processes – are de facto tailored to the capacities of large corporations.
Without a fundamental reform of the procurement processes and the creation of targeted, accessible distances for SMEs, the “turning point” threatens to miss its transformative strength for medium -sized companies. The new, massive funds, for example from the European Defense Fund, would then primarily flow to the large system houses. SMEs would participate as a subcontractor, but their structural dependency would solidify and slowed down their full innovation potential by the rigid, hierarchical structures of the large corporations. Against this background, the formation of strategic sales alliances for SMEs will not only become a growth strategy, but also to an existential need to compensate for these structural disadvantages and to bring their innovative strength into the market.
Hub for security and defense – advice and information
Hub for security and defense – Image: Xpert.digital
The hub for security and defense offers well-founded advice and current information in order to effectively support companies and organizations in strengthening their role in European security and defense policy. In close connection to the SME Connect working group, he promotes small and medium -sized companies (SMEs) in particular that want to further expand their innovative strength and competitiveness in the field of defense. As a central point of contact, the hub creates a decisive bridge between SME and European defense strategy.
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PPP defense alliances (public-private partnership): Key to success in complex safety landscapes
Strategic cooperation as a key to success – sales alliances for SMEs
Models of the B2B cooperation in defense context
Definition of B2B relationships
The business-to-business (B2B) sector that describes the business relationship between companies is fundamentally different from the Business-to-Consumer (B2C) Markt. While B2C transactions are often geared at short notice, emotionally and on individual purchases, B2B shops are characterized by greater complexity, larger order volumes and long-term, partnership orientation. This applies in particular to the defense sector. Business relationships are based on detailed contract negotiations, deep technical understanding and a high level of trust, since it is about security -critical products and services. The so -called “Relationship Marketing”, i.e. the design of long -term and stable business relationships, is of central importance in this environment.
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Analysis of forms of cooperation
Cooperations are essential to be successful in this demanding B2B environment, especially SMEs. Different models can be distinguished, each offering specific advantages and disadvantages:
Strategic alliances: This is the most flexible form of cooperation. Two or more companies agree long -term cooperation to achieve common goals, but retain their full legal and economic independence. The focus is on the bundling of resources (e.g. technology, knowledge), the division of risks (e.g. in the development of new products) and the joint access to new markets. Since no new legal unit is founded and often no capital effort is required, this form is particularly attractive for SMEs in order to work together in a project -related and agile manner. However, the lower contractual liability can also be a disadvantage in the event of disagreements.
Joint Ventures (JV): For a joint venture, two or more parent companies found a legally independent subsidiary where they jointly take control. This form is much more binding and is suitable for large, capital -intensive and long -term projects, such as the joint development and production of a new weapon system. Costs, risks and profits are shared, which lowers the entrepreneurial risk for the individual partners. A decisive advantage is the possibility of creating and owning new intellectual property together. The disadvantages lie in the high coordination effort, potential conflicts due to different corporate cultures and the flexibility less compared to the strategic alliance.
Consortia: A consortium is a paid merger of companies that are usually formed for the duration of a specific project, for example to submit a common offer for a large public tender. The partners remain independent, but act as one unit. In contrast to the often broader strategic alliance, a consortium is not permanently created and dissolves again after the project is completed. It is a pragmatic solution to bundle the competencies and capacities required for a large order.
Platform -based ecosystems: This most modern form of cooperation is based on digital platforms that connect a large number of actors – SMEs, large companies, suppliers, customers and service providers – in a digital network. They not only enable transactions, but also promote collaboration and the standardized data exchange.
Sales models in detail
Different sales strategies can be followed within these forms of cooperation:
Direct sales: The company sells its products or services directly to the end customer, in the defense sector typically to the Ministry of Defense or a procurement authority. The advantage lies in the direct customer relationship, full control over the sales process and the higher margin. For SMEs, however, this path is often hardly feasible due to the immense resource effort for sales, marketing and the handling of complex tenders.
Indirect sales through partner networks: Here the sale is made via third parties, such as distributors, resellers or – most frequently in the defense sector – via large system integrators that integrate the product of the SME into their overall system. The decisive advantage for SMEs is scalability and cost efficiency. You can access established sales networks, certifications and the partner's market knowledge without having to build your own, expensive sales organization. The disadvantage is a lower profit margin and a significant dependence on the partner who controls the interface to the end customer. For many specialized SMEs in the defense area, however, this is the only viable way to the market.
The following table offers a comparative analysis of the cooperation models and is intended to serve as a strategic tool in SMEs in order to identify the most suitable form of cooperation for their specific situation.
Different sales strategies can be followed within these forms of cooperation – Image: Xpert.digital
There are various forms of cooperation in the world of corporate cooperation, which differ significantly in their legal, financial and organizational aspects. Strategic alliances offer companies a flexible way to jointly implement projects without giving up their legal independence. The primary know-how and resources are shared, with the risk remains manageable and the parent companies keep their liability.
The joint venture, in which a completely new joint company is founded, is a more intensive form of cooperation. Here the partners invest substantial capital and share risks, profits and losses equally. The control takes place through a common management, which increases the bond and liability.
Consortia are particularly suitable for temporary projects in which partners remain independent, but work together for a specific task. Typically there is a consortial leader who takes over the coordination.
Platform ecosystems are a modern form of cooperation. They enable digital network structures with high flexibility in which companies act as autonomous units. Transaction risks are minimized and companies can dynamically enter into partnerships.
The choice of cooperation forms depends on strategic goals, resources and willingness to take risks. For small and medium -sized companies in sensitive areas such as defense logistics, these models offer different options – from joint research projects to real -time placement of transport capacities.
Success factors and risk management in defense alliances
The success of a cooperation in the defense sector depends on a variety of factors that go far beyond the purely technical or economic compatibility of the partners.
“Soft” success factors
The basis of every successful alliance is trust. In a sector in which sensitive information and technologies are exchanged, open, honest and regular communication is essential. Indispensability or misunderstandings can quickly destroy a partnership. The compatibility of the strategic goals and corporate cultures is just as important. If the partners have different ideas about the future of cooperation or their working methods differ fundamentally, conflicts are inevitable. Careful evaluation of potential partners in advance is therefore crucial.
“Hard” success factors: the foundation of the cooperation
In addition to the cultural aspects, the legal and technical framework must be precise and robust:
Contract design: A detailed and legally correct contract is the backbone of every alliance. He has to regulate all essential aspects: the exact contributions and responsibilities of each partner, the distribution of costs and profits, clear liability rules and, above all, well -defined processes for the decision -making process and the solution of conflicts. An often neglected but critical point are exit scenarios (exit clauses) that determine the conditions under which conditions and with what consequences a partner can leave alliance. In view of the complexity and the increased risk of liability, which can be threatening to exist, especially for SMEs, is required from the political side to support the middle class here, for example by providing sample contracts or creating project -related working groups (ARGE) with state participation in order to reduce the risk of SMEs.
Protection of intellectual property (IP): For innovative SMEs, their intellectual property – patents, designs, software codes, know-how – is the most valuable capital. In cooperation there is a risk of the unwanted drainage of this knowledge. Therefore, the cooperation agreement must precisely define which IP brings in every partner (“background ip”) and to whom the IP (“Foreground IP”), which is newly created as part of the cooperation. Clear rules for use, licensing and protection of these rights must be determined in order to avoid later disputes.
Cyber security in the supply chain: an alliance inevitably enlarges the digital attack area. A cyber attack on a partner can quickly spread to the entire network. The entire alliance is only as safe as your weakened member. Therefore, compliance with common, high cyber security standards is not negotiable. This requires a common risk assessment, the implementation of compatible security systems (e.g. according to ISO 27001) and regular joint exercises to defend cyber attacks.
Compliance and regulations: The defense sector is extremely regulated. Companies must comply with a large number of national and international regulations. This includes strict export control laws for armaments and dual-use goods that require approval by authorities such as BAFA. In cooperation with US partners or for access to the US market, other complex regulations such as ITAR (International Traffic in ARMS Regulations) or the cybersecurity Maturity Model Certification (CMMC) are added. All partners in an alliance must ensure compliance with these rules, since violations can lead to sensitive punishments and the exclusion of future orders.
The power of indirect sales: partner networks as a growth engine
SMEs and system houses
The relationship between innovative SMEs and large system houses is often symbiotic, but rarely symmetrical. SMEs provide specialized technologies and agility, while the system houses offer market access, financial strength for large -scale projects, experience in complex certification processes and the ability to integrate system. For many SMEs, the partnership with a system house is the only way to integrate their products into large defense programs. However, this dependence poses the risk of strong price and marginal pressure as well as the loss of the direct customer relationship. A successful SME must actively manage this relationship, use its technological uniqueness as a negotiating lever and try not to be dependent on a single major customer.
SME-to-SMU alliance
A strategic alternative to pure suppliers is the formation of alliances between several SMEs. By combining complementary companies, they can offer more complex and comprehensive solutions together. A consortium from a specialist for logistics software, a provider of safe communication technology and a transport company, for example, can lace up an integrated logistics package that is more attractive to a public client than the individual services. Such alliances increase the power in competition and enable SME to appear as more equal partners.
Generation of leads and market opportunities
A decisive advantage of partnerships is improved access to information and market opportunities. Partner networks act as multipliers. The collaboration gives an SME insight into the networks of its partners, learns in the past of new requirements and potential tenders and can develop offers together with the partner that could never have led. Consulting and networking offers, such as promoted by government agencies or industry associations, can play an important role here to bring the right partners together.
For SMEs in the defense sector, a sales alliance is therefore more than just one of many strategic options; It is a strategic imperative to compensate for the inherent structural disadvantages of the market. However, the success of these alliances is not a sure -fire success. It depends on an extremely careful and proactive management of risks that play a far smaller role in civilian markets. The selection of a partner must therefore go far beyond checking the technological or market -side complementary. A decisive selection criterion must be the “compliance and security maturity” of the potential partner. An alliance with an partner who is weakly positioned in the areas of intellectual property, cyber security or export control can quickly become a threatening to exist for an SME. This makes the DUE diligence phase before entering into a partnership much more complex and important than in any other sector.
The technological and logistical implementation – from corridors to digital platforms
The backbone of the laying: Loghub networks and strategic corridors
The Pesco project “Network of Logistic Hubs”
In order to enable the quick and efficient relocation of armed forces across Europe, the EU project “Network of Logistic Hubs in Europe and Support to Operations” was launched as part of the constant structured cooperation (PESCO). The core idea is the establishment of a Europe -wide network of military logistics centers (log hubs). These are national logistical institutions that, as part of the network, offer permanently or temporarily logistical services such as storage, envelope, maintenance or refueling for other participating nations. The aim is to create a robust logistical “spine” along strategic publishing routes, which shortens the response time, increases capacities and increases the perseverance of military operations, from exercises to an emergency.
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Functioning and control
This complex network is coordinated on two levels. Each participating nation sets up a national access point (National Access Point – NAP), which serves as an interface for inquiries and offers. The central coordination of the entire network, i.e. the coordination of the material and movement currents, takes place by the joint coordination Center (JCC), which is located in the Logistics Center of the Bundeswehr in Wilhelmshaven and was specially built for this Pesco project. It is important here that the network is not explicitly designed as a competition with existing NATO structures, but as a complementary and connectable system. It is also open to the participation of third countries such as Canada, the United Kingdom or Norway, which underlines its strategic importance.
Role of NATO Joint Support and Enabling Command (JSEC)
The operational bracket for military mobility in Europe is the Joint Support and Enabling Command (JSEC) of NATO based in Ulm. As an operational command under the direct command of the Supreme Allied Commander Europe (Sacur), JSEC is responsible for ensuring and securing the quick and smooth movement of troops and material across national borders. JSEC thus acts as the primary strategic “customer” and users of the skills provided by the PESCO Loghub network. The creation of “military Schengen corridors” to minimize bureaucratic hurdles is one of the central goals that are driven by JSEC.
Opportunities for SMEs
For small and medium -sized companies, building this logistical infrastructure opens up a variety of business opportunities. You can position yourself as a highly specialized service provider for the individual log hubs. The development and implementation of secure IT and warehouse management systems, the provision of specialized maintenance and repair services for certain weapons systems, the delivery of innovative surveillance and safety technology for hubs or the flexible provision of civilian transport capacities as part of dual-use concepts are, for example.
Dual-use logistics: The intelligent entanglement of civil and military capacities
Definition and advantages
Dual-use logistics refers to the use of goods, technologies and processes that can be used for both civilian and military purposes. This approach offers enormous strategic advantages. By accessing the capacities of the civil logistics market – from freight forwarders to warehouses to IT systems – forces can make their own logistics more flexible, resilient and cost-efficient. Studies indicate possible cost savings of up to 20 percent. Especially in the case of top loads, such as those occurring in the event of large troops or in the event of a crisis, the integration of civil partners enables a massive expansion of the available capacities. At the same time, cooperation leads to an important technology transfer: civil logistics benefits from the high cyber security standards of the military, while the military can learn from the processes of civilian economy trimmed for efficiency and automation.
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Challenges and regulation
The use of dual-use goods and services is subject to strict legal controls to prevent their abuse for undesirable purposes. The EU dual-us regulation and national laws such as the German Foreign Industry Act precisely regulate the export of such goods and technologies. Companies that work in this area must ensure a complete compliance and usually require export permits from the Federal Office of Economics and Export Control (BAFA). This regulatory complexity is a significant challenge, especially for SMEs.
Intermodality and interoperability as a core problem
The maximization of the laying speed requires seamless intermodal transport chains, the mode of transport such as road, rail, ship and air freight. However, in particular in cross -border traffic within Europe, this is due to considerable obstacles that are based on a lack of technical and procedural interoperability.
Deep Dive rail traffic
Rail traffic is predestined for the transport of severe military goods over long distances, but suffers from historically grown fragmentation in Europe. The biggest obstacles to smooth military rail transport are:
Different lane widths: While most of Europe uses the normal lane of 1,435 mm, there is a broadening of 1,520/1,668 mm on the Iberian Peninsula and in the successor states of the Soviet Union (including the Ukraine and Belarus adjacent to the NATO east flank). At the borders, this requires a time and costly reloading of the goods or a reconciliation of the wagons.
Different electricity and signal systems: The variety of operating and security systems is even more serious. There are four different electricity systems in Europe (e.g. 15 kV alternating current in Germany, 3 kV direct current in Poland) and over 20 different national train security systems (e.g. PZB in Germany, TVM in France). This forces locomotives at almost every border to hold and often to change.
However, technological solutions are available and are increasingly implemented. The European Train Control System (ETCS) is introduced as a uniform digital standard for train protection across Europe and is intended to replace the national island systems in the long term. Modern multi-system locomotives are able to run under different electricity and signal systems and thus significantly reduce the service life at the limits. For the problem of different tracks, there are automatic lanes (e.g. the systems from Talgo or Rafil/DB AG), which enable specially equipped wagons to adapt their track width during the slow passage through the system. SMEs can play a crucial role in this area as a highly innovative provider of components for ETCs, software for multi -system locomotives or mechatronic systems for recourse systems.
Technological revolution in the buffer camp: system terminals and automated high-bay warehouse (HBS)
Problem of traditional container camps
The logs and terminals along the laying corridors serve as a buffer warehouse and cover points. Traditional container terminals in which containers are flat and only a few layers are stacked high, but are surface -intensive and inefficient. Access to a certain container stored at the bottom or in the middle of a stack often requires the time -consuming surrounding of several other containers (“unproductive movements”). This is a serious disadvantage for military logistics, in which the quick access to specific material is decisive.
The HBS concept
Automated container high-bay warehouse (High-Bay Storage, HBS) offer a revolutionary solution. Instead of stacking containers, they are stored in a huge, steel shelf system that can be up to 11 or more levels. The storage and outsourcing takes place fully automatically by shelf control units and shuttles that are controlled by intelligent software.
Analysis of the crucial advantages for military logistics
This technology offers a quantum leap for the requirements of defense logistics:
100%direct access: The decisive advantage is that each individual container can be reached directly and without moving another container at any time. This enables drastic acceleration in providing specific military goods – be it ammunition, spare parts or medical material.
Efficiency and speed: HBS systems reduce the handling times for trucks by up to 20 percent and almost completely eliminate unproductive container movements. This significantly increases the throughput of a terminal.
Security and sustainability: The fully automated and purely electrical operation minimizes the risk of accidents with personnel, reduces noise and eliminates local emissions. The large roof areas of the systems are ideal for installing photovoltaic systems, which means that the terminals can cover part of their energy requirements themselves.
Area compression: An HBS requires significantly less floor space than a conventional warehouse with the same capacity. This is a crucial advantage in strategically important, but often shortfalling areas such as ports or military logistics centers.
Provider and SME potential
The leading providers of this technology are companies such as Boxbay (a joint venture from DP World and SMS Group), Amova (which has already realized a warehouse for the Swiss army) and Konecranes. For SMEs, there are a variety of opportunities here, either as a highly specialized supplier for the HBS manufacturers (e.g. in the areas of sensors, control technology, mechatronics, steel construction) or as developers and providers of complementary software solutions, for example for warehouse management, IT security or the integration of the HBS into overarching military logistics network works.
The structure of a robust physical logistics infrastructure in the form of log hubs and strategic corridors is therefore only one side of the medal. The full potential of this infrastructure can only be developed if the technological and procedural “bottle necks” that hinder the flow of traffic are consistently removed. This requires a holistic procedure: Investments in the physical infrastructure must be synchronized with investments in technological enablers that solve the interoperability problems on the route (ETCs, recourse systems) and the efficiency problems at the nodes (automated HBS). For SMEs, this means that the most lucrative market opportunities are often not in the operation of the “large” logistics, but in the development and provision of these highly specialized technological “bottle neck-solder”. A sales alliance between a SME for rail technology and an SME for HBS software could, for example, offer a highly innovative, integrated solution for the modernization of a log hub and thus secure a decisive competitive advantage.
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Platform power and intelligent supply chains: the key to national security
The digital dimension – platform economy and artificial intelligence
The ecosystem of the future: platform -based sales partnerships
From analogous to digital collaboration
The traditional cooperation in the defense and logistics industry is often shaped by isolated IT systems, manual processes and paper-based communication. This lack of digital continuousness hinders efficiency, slows down the ability to react and makes cross -company cooperation difficult, which ultimately slow down innovations. In order to cope with the complex requirements of modern defense logistics, a paradigm shift towards networked, digital ecosystems is required.
Conception of a digital B2B ecosystem
The vision is a central, cloud-based B2B platform that acts as a digital nervous system for European defense logistics. Such a platform acts as a “digital marketplace” and “collaboration room”, which connects all relevant actors – armed forces as needs, logistics service providers, transport companies, maintenance companies, suppliers and system houses – It enables the exchange of needs and capacity information in real time and thus creates previously unmatched transparency across the entire supply chain.
Core functions of the platform
Such a platform would rest on three pillars:
Transaction focus: The platform provides logistics orders, from the tender to the award to traculation and billing. An SME could offer its free transport capacities, and a military needs could find the most suitable and available service provider in real time.
Network focus: It offers a safe digital space in which companies can form consortia and alliances for specific projects. The platform would make it easier to find partner and support cross-company cooperation through standardized communication and project management tools.
Data focus: Analogous to initiatives such as Catena-X In the automotive industry, the platform would be based on the creation of joint data rooms and standardized interfaces. This enables the safe and media-free exchange of critical data, be it technical specifications, transport documents, customs data or compliance evidence. A “digital twin” of the logistics chain could be created in such a way that enables comprehensive surveillance and control.
Advantages for SMEs
For small and medium-sized companies, participation in such an ecosystem would be a fundamental game-changer:
Transparency and market access: SME could present your specialized skills and capacities to a broad spectrum of potential clients and partners and thus drastically increase your visibility in the market.
Efficiency: The administrative effort in the creation of the offer, order processing and the provision of compliance evidence would be significantly reduced by digitized and standardized processes.
Automation: The platform could automate processes such as lead generation, the creation of offers based on standardized parameters and invoicing, which releases valuable resources at SMEs.
Artificial intelligence as a strategic enabler in defense logistics
Artificial intelligence (AI) is key technology to turn a networked platform an intelligent, proactive ecosystem. AI goes beyond the pure automation of rules; It uses algorithms that learn from data, recognize patterns and adapt to new situations.
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AI for process automation and optimization
By integrating AI modules into the workflows of the logistics platform, complex tasks can be automated. AI can automatically classify in -depth documents (e.g. freight letters, customs documents) and extract relevant data, prioritize transport inquiries or detect anomalies in the supply chain (e.g. unexpected delays) in real time. This relieves human dispatchers of routine tasks and enables you to concentrate on the solution of critical problems.
AI in the Supply Chain Optimization
The greatest potential of the AI lie in the strategic optimization of the entire supply chain:
Predictive analyzes: By analyzing historical and current data, AI systems can precisely predict. You can anticipate demand for certain supply goods, identify potential bottlenecks in the supply chain at an early stage (e.g. by evaluating geopolitical news and weather data) and predict the optimal time for the maintenance of vehicles and infrastructure (predictive maintenance) before occurring failure.
Dynamic route planning: AI algorithms can calculate and adapt the most efficient transport routes in real time. They take into account a variety of variables, including current traffic and weather conditions, the availability of resting and refueling options, but also specifically military factors such as the current threat situation, convoy writings or the load-bearing capacity of bridges.
Autonomous control: The long -term vision is a largely autonomously controlled supply chain. A AI system could react independently to disorders by redirecting transports, activating alternative suppliers or dynamically shifting stocks to ensure supply security at any time.
Opportunities for SMEs through AI
Here, too, immense opportunities open up for agile SMEs. Instead of trying to compete with the large tech companies in the development of basic AI models, you can concentrate on the development and offer of highly specialized AI niche solutions. Examples of this are algorithms to optimize the loading of military vans taking into account the focus and unloading order, AI-based tools for the detection of cyber attacks on logistics networks or predictive analysis models for the maintenance of specific weapon systems. Through such specialized articles, SMEs can position themselves as an indispensable technology partner in the digital supply chain.
Physical logistics is fragmented and shaped by technical hurdles, while traditional cooperation is complex and associated with high costs and risks. A digital, AI-based logistics platform can address these fundamental problems. It creates a uniform digital space in which standardized data flow, which solves the interoperability problems at the information level. It efficiently wraps transactions, which lowers costs, and facilitates cooperation in alliances. Artificial intelligence adds the decisive level of “intelligence” to this system. It not only enables networking, but also proactive, optimized and data -based decisions.
The future of sales alliances is therefore no longer solely in bilateral contracts, but in active participation in such a digital ecosystem. For an SME, the ability to dock to this platform and to exchange data safely and efficiently becomes a strategic core competence. This raises a crucial question for Europe: Who develops, operates and control this critical digital infrastructure? In order to prevent the dominance of individual major actors and create a fair, transparent marketplace that enables SMEs in particular to access, an open initiative funded by the EU – analogous to projects such as GAIA-X or Catena-X – would be of the highest strategic importance.
Suitable for:
Technological niches as a competitive advantage: new ways in defense logistics
Strategic recommendations for SMEs, politics and established industrial actors
In order to raise the full potential of small and medium -sized companies as an innovation driver for European defense logistics, concerted efforts by all actors involved are required. The formation of strategic sales alliances is a central lever, but their success depends on the right framework.
For SMEs
Strategic positioning: SMEs should concentrate on technological niches in which they can fully play their agility and innovative strength. This includes, in particular, future fields such as specialized AI applications, cyber security solutions for logistics networks, innovative components for rail interperability or software for automated warehouse systems.
Proactive partner search: Instead of waiting passively for inquiries from large companies, SMEs should actively search for complementary partners – be it other SMEs for the formation of powerful consortia or system houses in which their own technology offers clear added value. The structure of trust and personal networks is crucial.
Investment in “Readiness”: The ability to meet the high requirements of the defense sector must be understood as a strategic competitive advantage. This includes investments in your own cyber security, the implementation of quality management systems (e.g. ISO 9001) and the establishment of know-how in the field of export control and other compliance regulations.
Use of funding instruments: SMEs must actively use the diverse funding and networking offers of the EU and national governments. Although this requires an initial effort, it can give the crucial impulse for the market entry or growth.
For politics (EU and national)
Reform of procurement: The award procedures urgently need to be simplified, accelerated and made more accessible to SMEs. This includes the distribution of large projects into smaller lots, the reduction of bureaucratic hurdles and the greater consideration of innovation potential instead of pure references of established providers.
Targeted funding: Instruments such as the European Defense Fund (EDF) and in particular the EU Defense Innovation Scheme (Eudis) must consistently be focused on the needs of SMEs and financially robust. Access to these means must be low -threshold and unbureaucratic.
Promotion of digital ecosystems: Politics should actively promote and shape the establishment of an open, standardized and safe digital logistics platform for the European defense sector. This creates a fair marketplace and prevents the development of monopolistic structures.
Improvement of financing conditions: A clear political positioning for the ESG classification of investments in the security and defense industry is essential to facilitate SME access to private venture capital and bank loans. Cooperation between public support banks such as the EIB and KfW and commercial banks must be expanded further.
For system houses and large companies
Building fair partnerships: Large system integrators should not only see SMEs as an interchangeable supplier, but as a strategic innovation partner. This requires transparent contract models, a fair risk distribution and the recognition of the intellectual property of SMEs.
Creation of open system architectures: Instead of closed, proprietary systems, large companies should create open interfaces (APIS) that make it easier for innovative SMEs to dock and integrate their solutions and technologies.
Takeover of mentoring functions: System houses can use their immense experience to support their SME partners in complex certification and compliance processes. This creates a win-win situation because it makes the entire supply chain more resilient and more powerful.
The following table offers SME a practical overview of the most important EU funding instruments in order to facilitate entry into the complex funding landscape.
Important EU funding instruments
Important funding instruments of the EU – Image: Xpert.digital
The European Union offers various funding instruments for defense technology and innovation, which are specially tailored to different actors and needs. The European Defense Fund (EDF) comprises two main areas: research campaigns and development actions. In the research campaigns, up to 100% of the eligible costs for basic research and feasibility studies are covered, whereby at least three institutions from three EU member states or Norway have to work together. The development actions focus on prototype development, testing and certification with co -financing rates between 20% and 80%.
The EU Defense Innovation Scheme (Eudis) is particularly aimed at small and medium -sized companies (SMEs). It offers open tenders for disruptive technologies and innovative solutions, with SMEs act as coordinators. In addition, there is a business accelerator with coaching offers and seed financing to support growth-oriented companies in the defense sector.
In addition, financing instruments such as the European Investment Bank (EIB) Defense Initiative are available that provides loans and guarantees for investments in research, development and production capacities. National conveyor banks such as the KfW complete the funding instrument and enable specific individual financing for SMEs and armaments suppliers.
On the way to an integrated, agile and resilient defense logistics ecosystem
The “turning point” requires more than just higher defense spending. It requires a fundamental change in the way in which Europe designs, develops and maintains its defense skills. The central thesis of this article is that the future of a powerful European defense logistics depends on the successful integration of highly innovative small and medium -sized companies. The key to this integration lies in the formation of strategic, digitally supported sales alliances.
The vision is a networked European defense logistics ecosystem in which the physical infrastructure – such as the Pesco Loghub network and the strategic laying corridors – is seamlessly linked to technological enablers such as automated high-distance stores and interoperable rail systems. This system is controlled and optimized by a digital nervous system: a AI-based cooperation platform that creates real-time transparency and enables agile, cross-company cooperation.
SMEs can fully play their strengths in such an ecosystem. They are no longer only dependent suppliers, but agile, networked and indispensable partners who bring in specialized technologies and services where they create the greatest added value. The alliances they enter are no longer just bilateral, rigid contracts, but dynamic, project -related cooperation within a digital marketplace. The implementation of this vision is a huge task that must overcome technological, political and cultural hurdles. However, it is essential to achieve speed, resilience and efficiency that are required to ensure the state and alliance defense in the 21st century.
Advice – planning – implementation
Markus Becker
I would be happy to serve as your personal advisor.
Head of Business Development
Chairman SME Connect Defense Working Group
Advice – planning – implementation
Konrad Wolfenstein
I would be happy to serve as your personal advisor.
contact me under Wolfenstein ∂ Xpert.digital
call me under +49 89 674 804 (Munich)
