Logistics Clusters: Delivering Value and Driving Growth

by Yosef Sheffi

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 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 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. View a trailer for the book

Genres: Business

356 pages, Hardcover

First published September 14, 2012

Reviews

[Bethany Miller · Rating 5 out of 5]

As a logistics expert 🤫 I thought this was a fantastic book. This should be suggested reading for anyone in SCL, business, MBA school, or government. The author is a renowned Logistics professor at MIT and has done a lot of writing and research on the topics that make our world work. This is the comprehensive overview of global logistics and it’s not dry at all. It should be on your “business reads” shelf for sure.

#reading #books #businessbooks #biz #logistics #logisticsmanagement #scl #supplychain #supplychainlogistics #internationalbusiness #yossisheffi

[Jude · Rating 4 out of 5]

This book endeavors to examine logistics clusters, why they exist, and the causation behind why they exist. It's an informative read for those in the business field, logistics field, or anyone who desires to learn more about logistics and its inner workings. There are several typos throughout the book, which reduced the credibility of the author and the publishing firm a bit. Other than that, it was a decent book. I'm looking forward to reading more of Sheffi's material.

[Liam · Rating 4 out of 5]

"In many ways, a cluster may be an optimal balance between the complexity, bureaucracy, lock-in with internal suppliers, unionization, and slow decision-making that hamper innovation in large enterprises, and the lack of scale and reach that holds back smaller firms." (50)

"High-capacity modes such as rail, barges, and ocean shipping cost progressively-less per ton-mile than do small-capacity modes such as trucking. A gallon of fuel moves one ton of cargo about 60 miles by truck, 202 miles by rail, and 514 miles by barge." (92)

"A logistics cluster offers two main advantages for performing certain value-added activities: it allows for postponement of product-differentiation closer to the time the product is sold, and it typically offers a cost-effective opportunity for performing operations beyond logistics." (121)

"'Rotterdam won't stop expanding until we reach England.'" (quoting Hans Smits, CEO of the port of Rotterdam, 173)

"Whereas with traditional high-tech knowledge-intensive clusters, strong academic institutions played a founding role in sowing the seeds of the nascent technology industry, many logistics clusters began with industrial developments that then motivated the creation of specialized academic resources." (223)

[Gray Dougherty · Rating 3 out of 5]

Some interesting points but could have been 10% as long and still conveyed the same information.

[Aishah · Rating 4 out of 5]

Helps to understand the way the clusters being developed.