Arthur D. Little Report: Value Creation through Innovation in Logistics

A focus on innovation is what the logistics industry needs to

substantially improve performance, according to Arthur D. Little´s

latest report, which analyzes the results of a recent study by the

management consultancy and the European Logistics Association (ELA). The

report highlights logistics service suppliers such as Kuehne + Nagel and

shipping companies like European retail giant Metro have set

customer-centric standards across their markets, resulting in boosted

EBIT margins and amplified business performance.
Arthur D. Little´s newest report, "Value

Creation through Innovation Excellence in Logistics"

details the study of more than 100 logistics service providers and their

customers, the shippers, in various industries across Europe. The goal

of the exercise was to indentify top innovators in logistics and the

added value they generate through high levels of excellence in

innovation. From its analysis ADL and the ELA were able to derive the

key success factors for achieving innovation excellence.
The study found that while innovation has always been judged as the

growth engine of society, in the field of logistics its importance is

still undervalued. But with globalization and structural industry

changes leading to more complex and increasingly interlinked supply

chains, executives worldwide are realizing that logistics has to center

on the customer.
Author Markus Achtert, a Senior Manager in Arthur D. Little´s

Munich, Germany office, said: "Specialists

in the field of logistics have been rather conservative innovators

compared to those in other industries. We´ve

found that in this field the key to success is to focus on the customer

and define innovation from their viewpoint: What will the new function

do for the customer? Innovation is useless unless it delivers added

value to the customer."
According to the study, the reduction of costs and modularization of

services with the intent of using them for multiple customers are the

most important objectives for logistics innovation today. In the future

as the cost-oriented innovations are replaced by customer-centric ones

these objectives will be replaced with the need to create new services

to cover existing customer requirements and stimulate new business. Top

innovators measure the added value of their logistics, while average

innovators focus on costs.
The Innovation Excellence in Logistics report analyzes this study, then

describes four distinct approaches logistics companies and shippers can

harness to reach their markets. It also links the results to real-world

examples and outlines how executives can create value through innovation.
The Innovation Excellence in Logistics report is now available for

download at http://www.adl.com/logistics.
About Arthur D. Little
Arthur D. Little (ADL), founded in 1886, is a leading global management

consulting firm that links strategy, innovation and technology to master

complex business challenges while delivering sustainable results to our

clients. Arthur D. Little has a collaborative client engagement style

exceptional people, and a firm-wide commitment to quality and integrity.

ADL is proud to serve many of the Fortune 100 companies globally in

addition to many other leading firms and public sector organizations.
Arthur D Little has over 30 offices worldwide, employing over 1,000

people. If you would like additional information on the firm, please

visit www.adl.com.