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German Army ponders €3bn logistics outsourcing

29 August 2007

Significant parts of the Army’s logistics operations, which could be worth up to €3.0 billion

Reports in the German press, quoting a spokesman of the German Defence Ministry, suggest that the German Army, The Bundeswehr, is considering outsourcing significant parts of its logistics operations in contracts which could be worth up to €3.0 billion.

The Army hopes to save some €100.0 million per year by outsourcing logistics services. It is anticipated that the Army would initially tender basic logistics services such as storage and transport of weapons and ammunitions, in a tender worth €800.0 million.

According to reports, logistics providers are to submit their proposals this week, with more formal tenders following in 2008. Press reports suggest that Deutsche Post’s DHL and German rail operator Deutsche Bahn with its logistics subsidiary Schenker, are in competition for the tenders.



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