The most expensive mistake in logistics is the “this is how we’ve always done it” mentality

Posted by Bíró Koppány Ajtony
Category:

Billions Lost to a Broken Logistics System

In the Hungarian and Central European logistics sector, operational patterns have become entrenched that continuously reproduce cost increases, capacity shortages, and unnecessary environmental burdens. According to a recent analysis by the Hungarian Logistics Service Centres Association (MLSZKSZ), the “this is how we do it” logic affects everyone: carriers, freight forwarders, shippers, receivers, and ultimately consumers as well. Meanwhile, system efficiency barely improves and waste continues to grow. The problem does not stem from a lack of technology, but from deeply embedded, faulty practices.

It is still common in supply chains to schedule several trucks for 8 a.m. even though only one can be handled per hour. On average, drivers spend only one-third of their working time actually driving; the rest is waiting, paperwork, and organizational losses. The price of all this is oversized fleets, unnecessary empty runs, increased emissions, and hundreds of billions of forints lost each year. According to the MLSZKSZ, the system behaves as if it suffers from a constant capacity shortage, even though real capacity is generally available — it is simply not coordinated professionally.

Most “urgent” shipments are not true market demands but the result of flawed internal performance metrics, distorted incentives, and poorly functioning corporate cultures. The absurdity of the practice is shown by the fact that goods treated as top priority often sit in warehouses for days after being transported hundreds or even thousands of kilometers by express. The MLSZKSZ points out that every unnecessary rush shipment has an invisible environmental price: the CO₂ footprint of an express transport can equal the annual carbon capture of as many as one hundred trees.

We still route everything via the North, even though the Adriatic is faster and greener

Most Asian goods continue to arrive through Northern European ports, even though the Adriatic route offers up to six days shorter sea transit time, half the rail distance, and available capacity for the region. Habit, however, proves stronger than rationality. This is one of the clearest examples of how the “this is how we’ve always done it” mentality burns days, money, and fuel unnecessarily.

According to the analysis, rail transport can be 20–30% cheaper, while inland waterways can operate at a 30–50% cost advantage. In both cases, CO₂ emissions per ton-kilometer are 60–85% lower. Road transport will still have its place, but mainly on the last mile. When the supply chain is well organized, rail and water provide a stable backbone, while road transport can complement them efficiently.

Sustainability does not start with electric trucks

According to the Association, real green transformation does not begin with replacing vehicle fleets, but with rethinking the entire supply chain and improving its efficiency. The largest environmental gains occur where waiting times are eliminated, planning becomes transparent, goods receiving and time-slot management become more flexible, distorted incentives disappear, and companies evaluate their processes with an end-to-end mindset — treating the entire chain from origin to destination as one system. In the current setup, everyone loses.

“Carriers pay the costs, freight forwarders lose capacity, clients lose time, and society pays with far greater environmental impact than necessary. But if this mindset shifts, logistics can become more efficient, greener, and more predictable. Rail, waterways, and intermodal solutions can become the new backbone of the entire supply chain,” said Koppány Ajtony Bíró, Secretary General of the MLSZKSZ.

The full analysis is available here: Logistical environmental impact_2025

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These collected accounts will be included in the 2.0 edition of “THIS IS HOW WE’VE ALWAYS DONE IT – and how we lose because of it!”

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