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Logistics Clusters: Delivering Value and Driving Growth

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  • Sheffi, Yoss

    ()
    (Massachusetts Institute of Technology)

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    Abstract

    Why is Memphis home to hundreds of motor carrier terminals and distribution centers? Why does the tiny island-nation of Singapore handle a fifth of the world’s maritime containers and half the world’s annual supply of crude oil? Which jobs can replace lost manufacturing jobs in advanced economies? Some of the answers to these questions are rooted in the phenomenon of logistics clusters--geographically concentrated sets of logistics-related business activities. In this book, supply chain management expert Yossi Sheffi explains why Memphis, Singapore, Chicago, Rotterdam, Los Angeles, and scores of other locations have been successful in developing such clusters while others have not. Sheffi outlines the characteristic “positive feedback loop” of logistics clusters development and what differentiates them from other industrial clusters; how logistics clusters “add value” by generating other industrial activities; why firms should locate their distribution and value-added activities in logistics clusters; and the proper role of government support, in the form of investment, regulation, and trade policy. Sheffi also argues for the most important advantage offered by logistics clusters in today’s recession-plagued economy: jobs, many of them open to low-skilled workers, that are concentrated locally and not "offshorable." These logistics clusters offer what is rare in today’s economy: authentic success stories. For this reason, numerous regional and central governments as well as scores of real estate developers are investing in the development of such clusters.

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    Bibliographic Info

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    This book is provided by The MIT Press in its series MIT Press Books with number 0262018454 and published in 2012.

    Volume: 1
    Edition: 1
    ISBN: 0-262-01845-4
    Handle: RePEc:mtp:titles:0262018454

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    Web page: http://mitpress.mit.edu

    Related research

    Keywords: management science; systems engineering; infrastructure; business;

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    Cited by:
    1. van den Heuvel, Frank P. & de Langen, Peter W. & van Donselaar, Karel H. & Fransoo, Jan C., 2013. "Regional logistics land allocation policies: Stimulating spatial concentration of logistics firms," Transport Policy, Elsevier, vol. 30(C), pages 275-282.
    2. Neil M. Coe & Martin Hess, 2013. "Economic and social upgrading in global logistics," Brooks World Poverty Institute Working Paper Series ctg-2013-38, BWPI, The University of Manchester.
    3. van den Heuvel, Frank P. & Rivera, Liliana & van Donselaar, Karel H. & de Jong, Ad & Sheffi, Yossi & de Langen, Peter W. & Fransoo, Jan C., 2014. "Relationship between freight accessibility and logistics employment in US counties," Transportation Research Part A: Policy and Practice, Elsevier, vol. 59(C), pages 91-105.

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