Logistics Clusters : Delivering Value And Driving Growth

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Logistics Clusters Delivering Value and Driving Growth A fundamental part of society since the beginning of time has been the trade of information, cash, and physical goods between at least two separate parties. Whether it is amongst consumers, businesses, or between a business and a consumer, it has always existed in some form. As time passes, our knowledge and technology have advanced therefore creating a stronger supply chain process. A basic logistic service, a means of transportation and storing are what enable trade. In order to have an effective supply chain process, the supporting needs need to be accessible and effective for all parties involved. In the book Logistics Clusters by Yossi Sheffi, he thoroughly explains the current…show more content…
Geography of Logistics Clusters Logistics clusters are geographical concentrations of companies in the transportation and distribution of goods. These clusters are growing all over the world around ports and airports and close to consumer locations in order to better serve the global supply chain. A few important logistics clusters are located in Rotterdam, Singapore, Memphis, and Panama for example. The primary reason for creating these clusters is that many benefits derive from having multiple related sources next to one another. When the different activities of logistics come together in a cluster, they are then able to share knowledge, a supply base, and their labor pools. As companies start to share knowledge of information they can then create trust amongst each other. After a bond of trust is established, different activities may start to collaborate and join activities in order to better enhance their business and serve their customers as best as possible. Having all of the different components located near each other and working together will then cause a positive feedback loop. A positive feedback loop will amplify any positive changes in the network and then cause others to want to join the cluster and therefore help it grow. Having a positive feedback loop will then cause vendors to want to

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