Continuous innovation in logistics services: an empirical study of distribution centres

This study explores the concept and practical implementation of continuous innovation in logistics services, particularly Distribution Centres. Continuous innovation is a concept that requires a methodical, programmed, incremental and/or radical approach to business improvement involving employees at all levels in the organisational structure. Theories and models of innovation were analysed in the literature, at the outset of this research. As found by previous authors, specific characteristics of service forms did not allow direct application of traditional models of innovation. Most of these traditional models were constructed from the manufacturing perspective. As a result, a new innovation model was designed for this study. It can be used as a guide for understanding the components necessary in service forms to embark on continuous innovation. This model describes the process of service innovation and incorporates theories from literature, and some variables from the CIMA model. The study is exploratory in nature, using empirical data. The study identified, evaluated, compared and contrasted the factors in ten Distribution Centres in Australia and in Singapore that affected the use of continuous innovation in their operations and processes. The focus of the study investigated the drivers, capabilities, behaviours, contingencies, individual competencies and performance measures of innovation in Distribution Centres with logistics services. Overall, this study has made significant contributions in terms of the theoretical investigation adding to the body of literature. This study was exploratory, using case studies as a first hand approach in gaining an understanding of Distribution Centres. There are areas that would merit further investigation and future research. It suggested that additional work should be carried out to expand on this research and refine the model to meet the needs of a wider range of organisations in various service industries. In addition, there are recommendations flowing from this study concerning the practical management of logistics operations. They are addressed mainly to senior management who typically take lead in the implementation of innovative programmes within the organisation. Firms should address continuous innovation as a planned and integrated approach, taking into account many interacting factors that are essential for successful innovation. The challenge facing Distribution Centres is to develop efficient and flexible processes and systems, by continuously innovating to sustain a leading edge in the logistics industry