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Navigating the Future of Automotive Logistics: Insights from ALSC Europe 2025

Tarek Saab
March 25, 2025
9 min read

At Logisoft, staying connected with the pulse of the automotive logistics industry is central to our mission. That’s why we were proud to virtually attend the 2025 Automotive Logistics and Supply Chain Europe (ALSC) conference held in Bonn, Germany. This year’s event brought together OEM executives, supply chain strategists, digital innovators, and sustainability leaders to explore how the automotive logistics sector can evolve amid economic, geopolitical, and technological transformation.

From decarbonization roadmaps and digitization blueprints to the intricacies of electric vehicle distribution and supplier collaboration, the agenda was rich in insight. What emerged was a clearer picture of the challenges ahead—but also of the opportunities to redefine how vehicles are moved, tracked, and supported across the globe.

1. Supply Chain Decarbonization: BMW’s Strategic Blueprint

Collaboration emerged as a foundational requirement in this transformation. Achieving emissions goals, especially in upstream tiers, depends not only on procurement policies but on continuous alignment between OEMs, material suppliers, and logistics providers. Shared data platforms and open frameworks are becoming essential for enabling synchronized action across these networks.

The event began with a keynote from Nadine Philipp, Vice President of Sustainability in BMW Group’s Supplier Network. Her presentation revealed the immense weight that upstream emissions now carry in the automotive value chain, especially as combustion engine usage phases out and electric vehicles (EVs) dominate the road. According to BMW’s data, emissions from the supply chain—particularly the production of aluminum, steel, and battery cells—have overtaken those from the use-phase of vehicles.

BMW’s answer is multifaceted. A 40% CO2 reduction target by 2030 is driving changes not only in sourcing and production but in supplier accountability. The company now requires decarbonization plans from its suppliers as part of procurement contracts, with emissions verified annually by third-party auditors. BMW is also turning to renewable energy at scale in key processes and advocating for the use of recycled materials, with the idea of a "secondary-first" design philosophy.

Moreover, their support of the Catena-X initiative marks a push toward an interoperable digital environment where CO2 data and sustainability credentials can be shared securely across the supply chain. Philipp acknowledged the complexity of deep-tier visibility, particularly at Tier 3 and Tier 4, where emissions data is fragmented or absent. Yet she was resolute in BMW’s belief that collective accountability—enabled by transparent, real-time data—is the only viable path forward.

2. Lean & Resilient Supply Chains: Rethinking Operational Strategies

This push toward resilience is driving greater cooperation across functional areas and external partners. Collaborative forecasting, joint contingency planning, and integrated response protocols are enabling faster, more unified reactions to disruption.

During the "Pushing the Limits" session, logistics executives tackled the new equilibrium between lean and resilient. Traditional lean logistics models are being re-evaluated to incorporate stronger contingency planning and strategic capacity reserves. Rather than relying solely on just-in-time strategies, companies are combining these with buffer inventory and dual sourcing approaches to increase resilience. Technology is critical in this transition, enabling more scenario-driven planning systems that can respond to political uncertainty, supplier variability, and complex cross-border logistics dynamics.

Speakers also emphasized the importance of nearshoring and regionalization, particularly as Europe becomes increasingly sensitive to logistics bottlenecks and geopolitical fragility. Dynamic modeling, digital freight procurement, and adaptive transport planning are seen as essential tools in this evolution.

3. Finished Vehicle Logistics: Meeting the Visibility Demand

In sessions dedicated to Finished Vehicle Logistics (FVL), the growing urgency for real-time visibility was unmistakable. OEMs and logistics providers echoed similar concerns: unpredictable port conditions, driver shortages, and insufficient compound space are impacting delivery times and customer satisfaction.

FVL leaders called for improved multimodal coordination, especially across sea-rail-road transitions. Advanced yard management and geo-fencing were highlighted as immediate steps to reduce idle time, while long-term solutions include AI-based ETA prediction and vehicle-specific route planning. Importantly, panelists noted that data granularity needs to move beyond "shipped" and "delivered." Stakeholders require micro-status updates: "customs cleared," "loaded to carrier," or "awaiting inspection."

4. Electrification: The Challenge of Scaling Supply Chains

Safety protocols were another crucial focus, particularly in the context of transporting and storing high-voltage batteries and other EV components. Discussions emphasized how differing international regulations, combined with the technical volatility of battery chemistry, make compliance and safety assurance a shared challenge across logistics operations.

The industry’s shift to electric vehicles was central to several panels. As one expert noted, EVs are not just another product—they demand a fundamentally different logistics approach. This is particularly true for inbound supply chains supporting battery cell production.

Speakers outlined challenges in critical mineral sourcing—namely, the volatility of lithium, nickel, and cobalt markets. They also addressed regulatory differences in how EV batteries are handled and transported. The consensus: EV logistics requires new SOPs, specialized equipment, and frequent retraining.

Discussion also included the need to design battery supply chains with circularity in mind. Several OEMs are investing in "second-life" battery programs and reverse logistics pathways for battery collection and refurbishment. These initiatives will likely reshape warehouse flows and packaging standards.

5. Digitalization and Artificial Intelligence: A Move Toward Intelligence-Driven Logistics

Machine learning techniques were highlighted as essential for driving intelligent decision-making. Specific applications included pattern recognition in transport disruptions, proactive fleet rerouting, and real-time load balancing—demonstrating how AI is evolving from planning support into active logistics execution.

Artificial Intelligence and digital twin technology were heavily featured in both sessions and hackathon demonstrations. Rather than positioning these technologies as futuristic ideas, speakers framed them as essential infrastructure for a logistics sector dealing with increasing volatility and performance pressure.

Digital twins allow logistics planners to simulate plant disruptions, port closures, or shifts in demand before they happen. This supports proactive decisions rather than reactive crisis management. AI use cases included dynamic transport optimization, load planning automation, and anomaly detection in fleet performance.

A notable theme was the push for solutions that deliver measurable operational value through artificial intelligence. The emphasis was on tools that reduce lead times, enhance load efficiency, or mitigate risks—ensuring AI goes beyond conceptual innovation and becomes embedded in tangible logistics improvements.

6. Inbound Logistics and Packaging: Efficiency at the Edge

In focused workshops on inbound logistics, experts drew attention to packaging—not just as a cost center, but as a strategic advantage. Returnable packaging systems were showcased as key to cutting emissions and minimizing waste in multi-trip component deliveries.

Smart packaging with IoT tracking was also presented as a rising trend, helping OEMs monitor container dwell times and damage incidents. Participants from the EV supply chain stressed how new battery modules and e-powertrain components require innovative packaging to ensure compliance and safety.

7. High-Value and Custom Supply Chains: Bespoke Logistics in a Scaled World

One keynote highlighted how low-volume and premium manufacturers are designing their supply chains for flexibility first. In these environments, small changes in demand can mean big shifts in allocation and fulfillment. To meet customer expectations, these OEMs are leaning into logistics IT that can handle custom workflows and hybrid fulfillment scenarios.

Discussions emphasized the need for adaptable logistics frameworks that accommodate low-volume, high-value vehicle flows—highlighting the importance of responsive routing, precise coordination, and integrated tracking in these premium segments. More than ever, technology is playing a role not only in process efficiency, but in supporting the brand experience itself.

8. The Sustainable Shift: Making Green Logistics Competitive

Regulatory alignment was also discussed as a critical enabler of green logistics at scale. As sustainability targets become embedded in procurement and cross-border movement, panelists emphasized the need to harmonize compliance efforts—especially around carbon tracking, EV battery transport laws, and packaging reuse mandates.

The final sessions emphasized that sustainability must not be an afterthought. Speakers proposed that green logistics can, in fact, be a driver of competitiveness—if supported by the right KPIs and digital enablers.

Rail and sea continue to grow as modal alternatives, especially as more companies include CO2 impact in their route planning and tender scoring. Data sharing and emissions accounting are becoming procurement essentials. One OEM shared its journey of integrating CO2 thresholds into supplier scorecards—a signal that emissions visibility is now part of core business metrics.

Packaging redesign, freight consolidation, and mode optimization were all discussed as practical tools to reduce emissions. What’s clear is that emissions performance will increasingly influence business decisions across the logistics chain.

9. Control Towers: Orchestrating the Modern Supply Chain

Across multiple sessions, the concept of logistics control towers emerged as a key strategic priority for companies seeking better coordination, visibility, and responsiveness. Rather than functioning solely as dashboards, modern control towers are becoming digital nerve centers that integrate data from various systems, partners, and transport modes in real time. They are used to proactively monitor vehicle flows, spot exceptions, and make dynamic decisions across inbound, outbound, and aftermarket networks.

Speakers emphasized the shift from passive monitoring to active orchestration—using control towers to trigger alerts, reroute shipments, and manage supplier or carrier performance on a rolling basis. These platforms also enable collaboration by providing stakeholders with shared access to reliable, role-specific information. From improving finished vehicle logistics to navigating parts shortages, control towers were consistently referenced as a core component of logistics modernization.

10. Aftersales and Service Parts: Agility Beyond the Assembly Line

A dedicated session explored how aftersales and service parts logistics is becoming a critical differentiator for OEMs and logistics providers. The discussion highlighted the unique complexities of this segment, where expectations around lead times and part availability are growing due to more frequent vehicle model updates, electric powertrain variation, and increased demand for real-time status tracking. The ability to deliver parts quickly—sometimes within the same day—is now seen as a baseline expectation, especially in urban centers.

Participants emphasized the need for decentralized inventory strategies, flexible distribution networks, and predictive analytics to avoid downtime across dealer and service networks. Just as importantly, panelists pointed to digital tools that can create visibility across fragmented warehousing and transport layers, helping identify stock imbalances or bottlenecks before they affect end users.

11. Production & Sales Outlook: Adapting Logistics to Market Rhythms

Collaboration across manufacturing, logistics, and demand planning teams was cited as essential to managing variability. Cross-functional transparency and shared scenario modeling are becoming critical tools in matching production cycles to transport capacity and inventory needs.

In a session focused on forecasting and global demand planning, industry experts explored how macroeconomic shifts, regional trade dynamics, and shifting consumer behaviors are reshaping the automotive production landscape. The panel underscored the increasing difficulty of aligning logistics capacity with unpredictable manufacturing schedules and sales demand.

Speakers discussed how production planning now demands greater collaboration across departments and with external logistics partners. Mismatches between factory output and vehicle pipeline capacity can lead to underutilized transport assets or compounding yard congestion. As markets become more fragmented, planning agility is becoming as important as accuracy. The session concluded by highlighting the growing value of integrated data environments that connect production forecasting with real-time logistics availability, enabling smarter, quicker decision-making.

Building Tomorrow’s Automotive Logistics Together

Logisoft’s vision aligns strongly with the core themes discussed at ALSC Europe 2025. At the heart of our platform is collaboration—we bring all stakeholders together in a unified environment to share data and work efficiently. On the standardization front, Logisoft has been building a universal integration layer that connects seamlessly with various OEM systems. We recognize that even widely adopted standards often deviate in practice, creating complexity. That’s why we’re committed to contributing to any initiative that aims to define and enforce true industry-wide standards.

When it comes to AI, we’re moving beyond the hype. Our focus this year is on practical, operational AI—tools that bring measurable value to logistics execution, not just buzzwords. And while we already offer tools that enable visibility and planning, we are actively working to develop capabilities around CO2 and emissions calculation, helping our partners align with regulatory and sustainability goals.

The ALSC Europe 2025 conference reinforced that automotive logistics is entering a new phase—one where resilience, sustainability, and intelligence are non-negotiable.

At Logisoft, we’re already delivering the tools needed for this transformation. Our end-to-end suite connects every leg, every stakeholder, and every shipment in the journey—from factory to showroom.

We thank the organizers for a powerful event and look forward to deepening our role as a digital logistics partner for the automotive supply chain of tomorrow.

Let’s drive the future, together.

Ready to explore smarter automotive logistics? Contact us to schedule a personalized demo today.

About the Author
Tarek Saab
The Founder
Founded Logisoft in 2010 and began the journey driven by a passion for revolutionizing the logistics industry.
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