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Logistics-Intensive Clusters: Global Competitiveness and Regional Growth

In: Handbook of Global Logistics

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  • Yossi Sheffi

    (MIT)

Abstract

Logistics intensive clusters are agglomerations of several types of firms and operations: (1) firms providing logistics services, such as 3PLs, transportation, warehousing and forwarders, (2) the logistics operations of industrial firms, such as the distribution operations of retailers, manufacturers (in many cases after-market parts) and distributors and (3) the operations of companies for whom logistics is a large part of their business. Such logistics clusters also include firms that service logistics companies, such as truck maintenance operations, software providers, specialized law firms, international financial services providers, etc. Logistics clusters exhibit many of the same advantages that general industrial clusters (such as Silicon Valley, Hollywood, or Wall Street) do: increase in productivity due to shared resources and availability of suppliers; improved human networks, including knowledge sharing; tacit communications and understanding; high trust level among companies in the cluster; availability of specialized labor pool as well as educational and training facilities; and knowledge creation centers, such as universities, consulting firms, and think tanks. Logistics clusters, however, exhibit other characteristics which make them unique in terms of cluster formation and their contribution to economic growth. Logistics operations may locate in a logistics cluster due to the cluster’s role in supporting economies of scope (mainly for direct operations transport modes) and economies of density (mainly for consolidated transportation modes); their provision of spill-over capacity for warehousing and transportation; and the ability to cooperate between providers when dealing with demand fluctuations. Such clusters provide a range of employment opportunities—from moving boxes to executive, IT and other professional jobs, and they diversify the economic base since they support many other industries, such as manufacturing as well as a range of “mini-clusters.” This chapter describes such clusters, based on primary research in several large logistics clusters around the world, interviews with dozens of executives in retail, manufacturing and distribution organizations; with transportation and logistics service providers; with infrastructure operators; with public and private development agencies; and with real estate developers.

Suggested Citation

  • Yossi Sheffi, 2013. "Logistics-Intensive Clusters: Global Competitiveness and Regional Growth," International Series in Operations Research & Management Science, in: James H. Bookbinder (ed.), Handbook of Global Logistics, edition 127, chapter 0, pages 463-500, Springer.
    • Handle: RePEc:spr:isochp:978-1-4419-6132-7_19
    DOI: 10.1007/978-1-4419-6132-7_19
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    Citations

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    Cited by:

    1. Liu, Sijing & He, Nannan & Cao, Xindan & Li, Guoqi & Jian, Ming, 2022. "Logistics cluster and its future development: A comprehensive research review," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 168(C).
    2. Meiling He & Jiaren Shen & Xiaohui Wu & Jianqiang Luo, 2018. "Logistics Space: A Literature Review from the Sustainability Perspective," Sustainability, MDPI, vol. 10(8), pages 1-24, August.
    3. Luis C. Blancas & Gerald Ollivier & Richard Bullock, 2015. "Integrated Logistic Centers," World Bank Publications - Reports 23494, The World Bank Group.
    4. Carlucci, Fabio & Cirà, Andrea & Ioppolo, Giuseppe & Massari, Stefania & Siviero, Lucio, 2018. "Logistics and land use planning: An application of the ACIT indicator in European port regions," Land Use Policy, Elsevier, vol. 75(C), pages 60-69.
    5. Guan, Chiming & Hu, Qi, 2023. "Does high-speed railway impact urban logistics industry agglomeration? Empirical evidence from China's prefecture-level cities," Socio-Economic Planning Sciences, Elsevier, vol. 87(PA).
    6. Aldona Jarašūnienė & Gintaras Sinkevičius & Kristina Čižiūnienė & Audrius Čereška, 2020. "Adaptation of the Management Model of Internationalization Processes in the Development of Railway Transport Activities," Sustainability, MDPI, vol. 12(15), pages 1-21, August.
    7. Li, Guoqi & Sun, Wenjie & Yuan, Quan & Liu, Sijing, 2020. "Planning versus the market: Logistics establishments and logistics parks in Chongqing, China," Journal of Transport Geography, Elsevier, vol. 82(C).
    8. Sowjanya Dhulipala & Gopal R. Patil, 2021. "Identification of freight generating industry complexes: A descriptive spatial analysis," Growth and Change, Wiley Blackwell, vol. 52(4), pages 2680-2712, December.
    9. Nefs, Merten & van Haaren, Jeroen & van Oort, Frank, 2023. "The limited regional employment benefits of XXL-logistics centres in the Netherlands," Journal of Transport Geography, Elsevier, vol. 109(C).
    10. Rust, Daniel L. & Stewart, Richard D. & Werner, Thomas J., 2021. "The Duluth International Airport aviation business cluster: The impact of COVID-19 and the CARES act," Research in Transportation Economics, Elsevier, vol. 89(C).
    11. Holl, Adelheid & Mariotti, Ilaria, 2018. "Highways and firm performance in the logistics industry," Journal of Transport Geography, Elsevier, vol. 72(C), pages 139-150.
    12. Chen, Jihong & Wan, Zheng & Zhang, Fangwei & Park, Nam-kyu & Zheng, Aibing & Zhao, Jun, 2018. "Evaluation and comparison of the development performances of typical free trade port zones in China," Transportation Research Part A: Policy and Practice, Elsevier, vol. 118(C), pages 506-526.
    13. Beifert, Anatoli & Prause, Gunnar & Gerlitz, Laima, 2015. "Sustainable Business Development Models for Regional Airports," Chapters from the Proceedings of the Hamburg International Conference of Logistics (HICL), in: Kersten, Wolfgang & Blecker, Thorsten & Ringle, Christian M. (ed.), Innovations and Strategies for Logistics and Supply Chains: Technologies, Business Models and Risk Management. Proceedings of the Hamburg Internationa, volume 20, pages 256-284, Hamburg University of Technology (TUHH), Institute of Business Logistics and General Management.
    14. Noman Arshed & Muhammad Shahid Hassan & Muhammad Umair Khan & Arslan Arif Uppal, 2022. "Moderating Effects of Logistics Infrastructure Development and Real Sector Productivity: A Case of Pakistan," Global Business Review, International Management Institute, vol. 23(3), pages 676-693, June.
    15. Chacon-Hurtado, Davis & Kumar, Indraneel & Gkritza, Konstantina & Fricker, Jon D. & Beaulieu, Lionel J., 2020. "The role of transportation accessibility in regional economic resilience," Journal of Transport Geography, Elsevier, vol. 84(C).
    16. 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.

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