Logistics Clusters―Delivering Value and Driving Growth

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 andhalf the world's annual supply of crude oil? Which jobs can replace lost manufacturing jobs inadvanced economies?

Some of the answers to these questions are rooted in thephenomenon of logistics clusters--geographically concentrated sets of logistics-related businessactivities. 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 indeveloping such clusters while others have not.

Sheffi outlines thecharacteristic "positive feedback loop" of logistics clusters development and whatdifferentiates them from other industrial clusters; how logistics clusters "add value" bygenerating other industrial activities; why firms should locate their distribution and value-addedactivities in logistics clusters; and the proper role of government support, in the form ofinvestment, regulation, and trade policy.

Sheffi also argues for the mostimportant advantage offered by logistics clusters in today's recession-plagued economy: jobs, manyof them open to low-skilled workers, that are concentrated locally and not "offshorable." Theselogistics clusters offer what is rare in today's economy: authentic success stories. For thisreason, numerous regional and central governments as well as scores of real estate developers areinvesting in the development of such clusters.

View a trailer for the book at:http://techtv.mit.edu/videos/22284-logistics-clusters-yossi-sheffi