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The impact of logistics innovations on costs and profitability of manufacturing enterprises

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  • Shaip Gashi

Abstract

The aim of the study was to assess how the implementation of modern logistics solutions, such as automated warehouse systems, digital supply chain management platforms and delivery route optimisation, affects the efficiency of resource use and the financial results of manufacturing enterprises. The study analysed the implementation of logistics innovations using the example of manufacturing enterprises Bosch, Procter & Gamble and Nestlé, drawing on data on transportation costs, delivery times, warehouse productivity, financial indicators and industry standards.The effectiveness of implementing automated warehouse systems and digital logistics platforms was assessed. In Bosch warehouses, inventory accuracy increased from 92 to 98%, order processing time decreased from 4 to 2 hours, staff productivity rose from 50 to 70 units of orders per day and transportation costs fell from 12 to 9 million EUR. At Procter & Gamble, inventory accuracy increased from 90 to 96%, processing time decreased from 5 to 3 hours, productivity increased from 45 to 65 units and transportation costs decreased from 20 to 16 million EUR. At Nestlé, optimisation of logistics processes reduced delivery time from 4 to 3 days, lowered transportation costs from 15 to 12 million EUR, increased accounting accuracy from 88 to 94% and raised personnel productivity from 40 to 60 units. Comparative analysis showed that these companies exceed the industry average. The practical significance of the study lies in providing scientifically grounded recommendations for the implementation of logistics innovations that can increase the efficiency of resource management and improve the financial results of manufacturing enterprises

Suggested Citation

  • Shaip Gashi, 2025. "The impact of logistics innovations on costs and profitability of manufacturing enterprises," Management and Business Articles, Management and Business, vol. 3(2), pages 66-76, December.
    • Handle: RePEc:bdw:emsesd:v:3:y:2025:i:2:p:66-76
    DOI: https://doi.org/10.59214/mb/2.2025.66
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    References listed on IDEAS

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    1. Nijolė Batarlienė & Aldona Jarašūnienė, 2024. "Improving the Quality of Warehousing Processes in the Context of the Logistics Sector," Sustainability, MDPI, vol. 16(6), pages 1-16, March.
    2. Milita Vienažindienė & Vilma Tamulienė & Jurgita Zaleckienė, 2021. "Green Logistics Practices Seeking Development of Sustainability: Evidence from Lithuanian Transportation and Logistics Companies," Energies, MDPI, vol. 14(22), pages 1-18, November.
    3. Danish I. Godil & Zhang Yu & Arshian Sharif & Rimsha Usman & Syed Abdul Rehman Khan, 2021. "Investigate the role of technology innovation and renewable energy in reducing transport sector CO2 emission in China: A path toward sustainable development," Sustainable Development, John Wiley & Sons, Ltd., vol. 29(4), pages 694-707, July.
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