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Bosch and AWS enter into collaboration to digitalize logistics

Service platform for logistics fleets pools expertise in mobility, software, and the cloud

  • Bosch is developing a logistics platform for digital services on AWS.
  • The first digital services are expected to be available in Europe, India, and the U.S. in late 2022.
  • Complete ecosystem and software environment for freight carriers and forwarders emerges.
Joern Ebberg

Joern Ebberg

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Stuttgart, Germany – Bosch and U.S.-based cloud provider Amazon Web Services (AWS) aim to improve efficiency and sustainability in the transportation and logistics industry. Their plan is to offer logistics companies and freight forwarders across the globe quick and easy access to digital services through a platform powered by AWS. Going forward, they will offer support for topics ranging from capacity utilization of commercial vehicle fleets to monitoring goods flows to order processing – all from a single source. To this end, Bosch and AWS have now entered a strategic collaboration. Bosch will be responsible for developing and operating the logistics platform, the core of which is a marketplace for digital services, while AWS will contribute its comprehensive cloud offering and expertise. The platform will facilitate smooth interaction between a variety of services and data, enabling transportation and logistics companies to benefit much more from the opportunities of digitalization without having to set up their own resource- and cost-intensive IT projects. The marketplace will also be open to all digital logistics services providers. Industry and consumers will benefit from the initiative because of greater reliability and transparency in goods and parcel delivery, for example. The companies plan to present a preliminary version of the logistics platform at Hannover Messe, with the launch for Europe, India, and the U.S. set for late 2022.

The transportation and logistics industry is the backbone of the global economy. In the years ahead, it will have to shoulder continuously increasing transport volumes for goods and commodities while simultaneously reducing its carbon footprint. In collaboration with AWS, we want to help the logistics industry with this. We aim to ring in the future of the industry and drive forward its digitalization,

Sandeep Nelamangala, Executive Director, Bosch Limited, and Executive Sponsor of logistics platform business at Bosch

Greater efficiency through increased digitalization

“The transportation and logistics industry is the backbone of the global economy. In the years ahead, it will have to shoulder continuously increasing transport volumes for goods and commodities while simultaneously reducing its carbon footprint. In collaboration with AWS, we want to help the logistics industry with this. We aim to ring in the future of the industry and drive forward its digitalization,” says Sandeep Nelamangala, Executive Director, Bosch Limited, and Executive Sponsor of logistics platform business at Bosch. “Developing hyperconnected transportation functions is one of the most complex technical challenges of our time. That’s why we are working with a market pioneer such as Bosch to master these unique challenges,” said Kathrin Renz, Vice President, Business Development and Industries, AWS. “The digital marketplace will enable logistics customers to quickly transform their business into a fully digital end-to-end value chain. Customers will benefit from the tools, frameworks, and modules we offer for digitalization, in addition to improving the sustainability of their transportation processes.”

Years-long boom – and no end in sight

The transportation and logistics industry has been booming for years. During the Covid 19 pandemic, online orders and parcel deliveries saw another sharp increase, giving the industry a further boost. By 2030, global goods transport will grow more than 40 percent, and by 2050 this figure is even expected to exceed 145 percent. This growth is hitting a market that is highly fragmented globally – as well as struggling with various areas of inefficiency. A few facts will illustrate this: More than 95 percent of the companies operating in this industry worldwide are SMEs. Approximately nine out of ten companies operate with fewer than five vehicles. The majority of freight forwarders still organize their daily business manually or with an assortment of unrelated computer programs. Moreover, according to the goods transport statistics of Germany’s Federal Ministry for Digital and Transport (available in German only), more than 150 million trips are empty runs, which adds up to more than 6.5 billion empty kilometers annually, or more than 160,000 unnecessary journeys around the earth. This weighs heavily not only on efforts to protect the climate, but also on the already problematic shortage of drivers. The Federal Association for Goods Traffic, Logistics, and Disposal estimates that there is a shortage of between 60,000 and 80,000 drivers in Germany alone – and the situation is becoming more and more acute across the globe.

Many challenges – one solution

With its logistics platform, Bosch aims to provide a key solution for many of the challenges facing the transportation and logistics industry. The advantage of this platform is that it will create an entire ecosystem and a software environment in which freight carriers and forwarders can select, book, and execute different providers’ services to meet their specific needs. The platform also allows for easy integration of applications that are already relevant to the market, for instance, in transportation management systems. Thanks to shared usage of data that is available through the telematics systems in commercial vehicles, for example from fleet management, it is also possible to link and allow interplay between different services from different areas. This makes it easier to leverage synergies.

Mobility is the largest Bosch Group business sector. In 2023, its sales came to 56.2 billion euros, or just under 60 percent of total Group sales. This makes the Bosch Group one of the leading mobility suppliers. Bosch Mobility pursues a vision of mobility that is safe, sustainable, and exciting. For its customers, the outcome is integrated mobility solutions. The business sector’s main areas of activity are electrification, software and services, semiconductors and sensors, vehicle computers, advanced driver assistance systems, systems for vehicle dynamics control, repair-shop concepts, as well as technology and services for the automotive aftermarket. Bosch is synonymous with important automotive innovations, such as electronic engine management, the ESP anti-skid system, and common-rail diesel technology.

The Bosch Group is a leading global supplier of technology and services. It employs roughly 429,000 associates worldwide (as of December 31, 2023). The company generated sales of 91.6 billion euros in 2023. Its operations are divided into four business sectors: Mobility, Industrial Technology, Consumer Goods, and Energy and Building Technology. With its business activities, the company aims to use technology to help shape universal trends such as automation, electrification, digitalization, connectivity, and an orientation to sustainability. In this context, Bosch’s broad diversification across regions and industries strengthens its innovativeness and robustness. Bosch uses its proven expertise in sensor technology, software, and services to offer customers cross-domain solutions from a single source. It also applies its expertise in connectivity and artificial intelligence in order to develop and manufacture user-friendly, sustainable products. With technology that is “Invented for life,” Bosch wants to help improve quality of life and conserve natural resources. The Bosch Group comprises Robert Bosch GmbH and its roughly 470 subsidiary and regional companies in over 60 countries. Including sales and service partners, Bosch’s global manufacturing, engineering, and sales network covers nearly every country in the world. Bosch’s innovative strength is key to the company’s further development. At 136 locations across the globe, Bosch employs some 90,000 associates in research and development, of which nearly 48,000 are software engineers.

Additional information is available online at www.bosch.com, www.iot.bosch.com, www.bosch-press.com.

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