Driving innovation in logistics : case studies in distribution centres

The concept of innovation is valued in most organizations to create and sustain competitive advantage. Firms need to innovate in order to stay ahead in the market. Businesses are experiencing the internationalization of technology-driven competition, globalization of manufacturing, shorter product life-cycles, increasingly sophisticated customers needs and a greater integration of technologies (Shepherd & Ahmed, 2000). These challenges have compelled organizations to develop innovative strategies, products and processes. One area that is increasingly seeking ways of adding value through innovation is the logistics function. This paper examines and compares factors that are driving innovation in Australia and Singapore in distribution centres part of the logistics function that has been slow in the past to innovate.