Does logistics matter? Martijn Graat asks every guest this question at the start of every ''the Does Logistics Matter?''-podcast. When Davy Baars, CEO of CLC joined him, the answer came without hesitation. They went on to discuss what a digital supply chain really means, why so many digital transformations stall at the hardware phase and how organisations can create measurable value by starting with the questions they need answered.
The key takeaways are below, and you can listen to the full conversation on the LogisticsMatter website.
Logistics needs a digital layer on top of the physical flow
For Davy, the physical movement of goods remains the foundation of logistics, but the real opportunity now lies in the digital layer that sits on top of it. He describes a digital supply chain as a digital replica of the physical flow. It mirrors movements, load carriers and transactions so that organisations can see the actual status of their operations, spot bottlenecks before they turn into costly delays and translate information into clear business decisions.
Supply chains are ecosystems rather than single organisations, which makes this harder than it sounds. Many companies focus on improving efficiency within their own four walls, while the biggest opportunity lies in the handovers between partners, where goods, responsibility and paperwork change hands. Davy points out that companies already share this information physically every time a load carrier leaves with a paper label. Moving it into a digital format therefore mainly removes manual re-entry and reduces the risk of human error.
Tracking load carriers and tracking shipments are separate challenges
Davy draws a clear line between tracking load carriers, such as pallets, roll containers and reusable crates and tracking the shipments they carry. “The owner of the shipment and the owner of the assets are still two different companies usually,” he explained. “You need to look at them as two distinct tracks you want to solve.”
Many companies start tracking load carriers to prevent asset loss. Davy notes, however, that preventing loss is largely a one-time saving. The recurring value comes from understanding how load carriers behave, including how quickly they rotate, where they sit idle and where the flow stops. That understanding lets companies replace guesswork with operational changes that genuinely improve efficiency.
Why digital transformation shouldn’t start with hardware
One of the clearest messages in the episode is a warning against what Davy calls “cuddling hardware”. Organisations often see new IoT devices or RFID solutions and rush into deployment, even though technology without a defined operational objective rarely delivers structural value. He recommends that organisations first answer three questions: which business problem they are solving, where their biggest efficiency gains are, and which blind spots actually affect their operations. Only once those answers are clear does it make sense to choose the technology that fits.
Why standardisation comes before digitalisation
Davy also stresses that a supply chain needs to be standardised before it can become digital. That starts with giving every load carrier a unique identity instead of counting them by type. It also means using standardised labels, such as SSCC labels, that partners further along the chain can read. Finally, it involves preparing for a digital representation of load carriers, which upcoming EU regulation such as the PPWR is pushing towards.
Start small, but start now
Davy’s advice to the industry is not to wait, because the rise of AI and growing regulatory pressure are widening the gap between organisations that have digitalised and those that have not. He recommends taking small steps. Organisations should first decide where they want to see gains, then build from there instead of starting with the hardware. CLC works the same way, starting with a focused pilot and scaling once the value has been proven.
Curious how this plays out in practice? Listen to the full episode of Does Logistics Matter? to hear Davy’s practical examples and his view on building a truly digital supply chain.
