Innovative Strategies for Logistics Processes

Innovative Strategies for Logistics Processes

Bikem Türkeli (Marmara University, Turkey), Alp Ariburnu (Marmara University, Turkey) and Özalp Vayvay (Marmara University, Turkey)
Copyright: © 2010 |Pages: 20
DOI: 10.4018/978-1-61520-603-2.ch001

Abstract

In a time of rapid revolutionary change, today organizations must innovate in ways that allow them to take advantage of change. Competitive business environments force companies to respond to all changes in the market. This response to that change brings innovation in processes. As a basis of all competitive advantages, innovation should be continuous and the only way to maintain this is having the right innovation strategy. In this study innovative strategies for logistics processes, which can be used practically in business environments, are mentioned. For each innovative strategy title tools that can be used to innovate operations are presented. By innovating logistics processes logistics providers can fulfill customer needs rapidly and increase their profit because of having a competitive advantage.
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Innovation In Logistics Sector

The modern logistics industry is a complex network of firms involved in the flow and transformation of goods from the raw materials stage to the end user. Three trends spur innovation in logistics. The first is the increase in the demand for high-tech goods. The global market for high-technology goods is growing at a faster rate than that for other manufactured goods, and high-technology industries are driving economic growth around the world.

The second trend influencing the logistics industry is globalization, the integration of many micro economies into one worldwide, interdependent economy. Top firms in the logistics industry which headquartered all over the world, are not only moving logistics services worldwide but are also creating innovation centers close to the new centers of trade. Reliable, timely accurate data is the keystone of the new global supply chain. Software and hardware innovations that enable greater visibility of product movement to shippers and carriers have become critical to success in the logistics industry.

Innovation in the logistics industry has also been spurred by the growth of the Internet and e-commerce. The Internet and computing Technologies have increased the amount of information available to the buyer and manufacturer about the product and fulfillment process. This causes a rise in expectations relating timely and accurate fulfillment. Innovation in warehouse management software and tracking products support firms’ efforts to cope with the demands of the Internet environment.

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