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Logistics Clusters: Delivering Value and Driving Growth


  • Sheffi, Yoss

    () (Massachusetts Institute of Technology)


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.

Suggested Citation

  • Sheffi, Yoss, 2012. "Logistics Clusters: Delivering Value and Driving Growth," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262018454, January.
  • Handle: RePEc:mtp:titles:0262018454

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    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.

    Cited by:

    1. Zolfagharinia, Hossein & Haughton, Michael, 2016. "Effective truckload dispatch decision methods with incomplete advance load information," European Journal of Operational Research, Elsevier, vol. 252(1), pages 103-121.
    2. Petrache Alexandru Constantin & Petrache Maticiuc Madalina, 2015. "A New Business Model - The Proposition Of A Logistics Cluster In Romania," Annals - Economy Series, Constantin Brancusi University, Faculty of Economics, vol. 2, pages 139-143, April.
    3. 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.
    4. 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.
    5. repec:eee:retrec:v:61:y:2017:i:c:p:25-36 is not listed on IDEAS
    6. Frank van den Heuvel & Karel van Donselaar & Peter de Langen & Jan Fransoo, 2016. "Co-Location Synergies: Specialised Versus Diverse Logistics Concentration Areas," Tijdschrift voor Economische en Sociale Geografie, Royal Dutch Geographical Society KNAG, vol. 107(3), pages 331-346, July.
    7. Neil M. Coe, 2014. "Missing links: Logistics, governance and upgrading in a shifting global economy," Review of International Political Economy, Taylor & Francis Journals, vol. 21(1), pages 224-256, February.
    8. Rivera, Liliana & Sheffi, Yossi & Knoppen, Desirée, 2016. "Logistics clusters: The impact of further agglomeration, training and firm size on collaboration and value added services," International Journal of Production Economics, Elsevier, vol. 179(C), pages 285-294.
    9. Neil M. Coe & Martin Hess, 2013. "Economic and social upgrading in global logistics," Global Development Institute Working Paper Series ctg-2013-38, GDI, The University of Manchester.
    10. Mesa-Arango, Rodrigo & Ukkusuri, Satish V., 2015. "Demand clustering in freight logistics networks," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 81(C), pages 36-51.

    More about this item


    management science; systems engineering; infrastructure; business;

    JEL classification:

    • L16 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Industrial Organization and Macroeconomics; Macroeconomic Industrial Structure


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