Falco Jaekel develops a reference architecture for cloud logistics systems. The reference architecture shows how to apply the principles and concepts of cloud computing (e.g. virtualization, service-orientation) to logistics system design and thus how to deliver certain physical logistics capabilities such as transport and storage with the essential cloud characteristics (e.g. on- demand, rapid elasticity, pay-per-use). Within certain scenarios, this innovative mode of delivery can reconcile logistics efficiency with effectiveness and thus may enable firms to achieve competitive advantage in dynamic environments.