Sequenz G1: Innovation Excellence in Logistics ‑ Results of the ELA/Arthur D. Little Study

Innovation Excellence in Logistics Results of the ELA/Arthur D. Little Study 24th International German Logistics Congress Berlin, October 19th, 2007 Prof. Dr. Dr. h.c. Hans-Christian Pfohl Darmstadt University of Technology Institute of Business Studies Chair of Management and Logistics © Prof. Dr. Dr. h.c. Hans-Christian Pfohl TU Darmstadt | Chair of Management & Logistics 19.10.2007 | 1 Agenda I. Innovation Objectives and Relevance in Logistics II. Organization of Innovation Activities III. Initiator of Innovations IV. Drivers for Innovations V. Innovation Strategy and Process VI. Key Success Factors for Innovations VII. Summary © Prof. Dr. Dr. h.c. Hans-Christian Pfohl TU Darmstadt | Chair of Management & Logistics 19.10.2007 | 2 I. Innovation Objectives and Relevance in Logistics Generation of new services to enhance coverage of customer requirements will become the most important innovation objective in the future Innovation Objectives Comments Extract Trend Cost reduction is currently the 4.3 most important objective of Reduce process costs -7% innovation 4.0 This is especially true for cost reductions due to 4.2 process innovation and Modularization/ standardization -12% modularization/ 3.7 standardization The importance of developing New services to 3.9 new services will increase in the cover customer +5% future requirements 4.1 to cover existing customer requirements and Cover basic 3.7 to stimulate new ones market ±0% requirements 3.7 Cost-oriented innovations will be 2007 replaced by customer-oriented 2012 innovations Importance ranging from 1 (very low) to 5 (very high) © Prof. Dr. Dr. h.c. Hans-Christian Pfohl TU Darmstadt | Chair of Management & Logistics 19.10.2007 | 3 I. Innovation Objectives and Relevance in Logistics - Shipper The importance of price will decline as a criterion for tendering processes – Innovation ability will become an important criteria for differentiation Criteria for Tendering Processes Comments Extract Trend Price and reliability 32% -12% Currently the most important Price 28% buying criteria Are developing into a basic 30% prerequisite (order qualifier) Reliability/ delivery reliability -7% Innovation ability and customer 29% orientation Will gain significantly in 9% importance Innovation +26% ability 11% Both criteria are developing into distinguishing features (order winner) 16% Flexibility/ customer orientation +13% In contrast to logistics service 18% providers, shippers think that 2007 price is less important 2012 Distribution of 100% © Prof. Dr. Dr. h.c. Hans-Christian Pfohl TU Darmstadt | Chair of Management & Logistics 19.10.2007 | 4 II.