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.
