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Home » Logistics Innovation Pays for Itself

Logistics Innovation Pays for Itself

January 14, 2008
Arthur D. Little

Innovation is a key success factor for logistics companies and is becoming an increasingly important selection criterion among their customers, according to a current market study by Arthur D. Little and the European Logistics Association. The study says that suppliers of logistics services can increase their EBIT margins by 8.5 percent if they have a first-class innovation process.
This will be even more important in coming years as the logistics market will increasingly look beyond price and reliability of services when choosing a supplier. By 2012, the main standard will be the meeting of customers' specific requirements with customized innovative services and the creation of new services, according to a summary of the study's findings.
Top innovators today among logistics service providers and freight companies are characterized by their use of consistent and professional market research. In general, the study says, providers of logistics services and contractors should "coordinate strategies, processes, organization and resources closely in order to achieve optimum innovation management, with a balance between cost and customer focus."
The market study Innovation Excellence in Logistics-Value Creation by Innovation can be downloaded from Arthur D. Little free of charge at:
http://www.adlittle.com

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Europe Global Supply Chain Management Logistics Global Logistics Logistics Outsourcing Retail
KEYWORDS Europe Global Logistics Global Supply Chain Management Logistics Logistics Outsourcing Retail
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