GLOBAL SUPPLY CHAINS, LOGISTICS CLUSTERS …...PhD in Logistics Management...
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COTE 2012 – UWI – OCTOBER 11-12TH Eric LAMBOURDIERE Associate Professor PhD in Regional and Planned Development [email protected] Elsa CORBIN Associate Professor PhD in Logistics Management [email protected] Christopher SAVAGE Associate Professor [email protected] COTE 2012 October 11th – 12th 2012 UWI – Port of Spain -Trinidad and Tobago GLOBAL SUPPLY CHAINS, LOGISTICS CLUSTERS AND ECONOMIC GROWTH : WHAT COULD IT MEAN TO CARIBBEAN TERRITORIES ?
Transcript of GLOBAL SUPPLY CHAINS, LOGISTICS CLUSTERS …...PhD in Logistics Management...
COTE 2012 – UWI – OCTOBER 11-12TH
Eric LAMBOURDIERE Associate Professor
PhD in Regional
and Planned Development
Elsa CORBIN Associate Professor
PhD in Logistics Management
Christopher SAVAGE Associate Professor
COTE 2012 October 11th – 12th 2012 UWI – Port of Spain -Trinidad and Tobago
GLOBAL SUPPLY CHAINS, LOGISTICS CLUSTERS AND ECONOMIC GROWTH :
WHAT COULD IT MEAN TO CARIBBEAN TERRITORIES ?
COTE 2012 – UWI – OCTOBER 11-12TH
COTE 2012 – UWI – OCTOBER 11-12TH
FROM FRAGMENTED TO INTEGRATED FLOWS MANAGEMENT
Raw Materials & Parts Manufacturing Distribution
Raw
Materials Storage National
Distribution
Regional
Storage
Local
Distribution Retailers
Supply Chain Management
Raw
Materials
Distribution
Center Retailers Manufacturing
Cu
sto
me
rs
Cu
sto
mers
Conventional
Contemporary
Material flow (delivery)
Information flow (order)
Core component
Source: Hesse and Rodrigue (2004)
COTE 2012 – UWI – OCTOBER 11-12TH
WHAT IS AN INDUSTRY CLUSTER?
“A cluster is a geographically proximate group of interconnected companies and associated institutions in a particular field, linked by commonalities and complementarities.”
MP.
Christian Ketels, one of Porter’s students, adds the idea of interdependency (The Development of the cluster concept, 2003)
Clusters are groups of companies and institutions co-located in a specific geographic region and linked by interdependencies in providing a related group of products and/or services.
COTE 2012 – UWI – OCTOBER 11-12TH
ADVANTAGES OF NETWORKING AND INTEGRATION PROCESS INSIDE A TERRITORY
Having a concentration of people working on similar problems in the same location speed knowledge and innovation process
People run into one another in hallways, cafés, and train stations, during these encounters they exchange ideas
The collaboration and inspiration needed for the emergence of innovation are much easier on the ground that via internet
COTE 2012 – UWI – OCTOBER 11-12TH
CLUSTERS AND COMPETITIVE ADVANTAGE
Productivity
Efficient access to information, specialized inputs and employees, institutions, and “public goods”
Achieving complementarities across business
Better incentives and performance measurement
Innovation
Ability to perceive and respond to innovation opportunities
Rapid diffusion of improvements
COTE 2012 – UWI – OCTOBER 11-12TH
LOGISTICS CLUSTERS DEFINITION
“A region with a very high concentration of logistics activities relative to the local population or economy”. Sheffi, Y. (2012, p. 78)
COTE 2012 – UWI – OCTOBER 11-12TH
VALUE-ADDED FUNCTIONS OF LOGISTICS
Production
Location
Time
Control Logistics
COTE 2012 – UWI – OCTOBER 11-12TH
THE 3 PILARS OF LOGISTICS CLUSTERS
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ARRAY OF SERVICES MIGHT FIND INSIDE LOGISTICS CLUSTERS
Freight Services
Rail services
Trucking services
Loading / consolidation
Unloading / deconsolidation
Transloading / crossdocking
Warehousing
Bonded warehousing
Container and chassis depot
Container and chassis
maintenance
Equipment maintenance
Fabrication
Cold chain
Recycling
Source : adapted from Rodrigue, J.P. (2010)
COTE 2012 – UWI – OCTOBER 11-12TH
Office space
Customs clearance
Security
Site maintenance
Parcel services
Certification and quality control
Cargo inspection
Logistics equipment location
Container and chassis location
Export facilitation
Works supplies
Temporary workers agency
Offices supplies
Corporate Services
IT equipment
Human resources
Accounting
Insurance and financial services
Legal services
Source : adapted from Rodrigue, J.P. (2010)
COTE 2012 – UWI – OCTOBER 11-12TH
Hospitality
Restoration
Personal services
Personal Services
Source : adapted from Rodrigue, J.P. (2010)
COTE 2012 – UWI – OCTOBER 11-12TH
ECONOMIC BENEFITS AND COSTS OF LOGISTICS CLUSTERS
Employment creation (direct,
indirect, induced). Attracting capital investment. Increased distribution efficiency and
lower costs to consumers. Innovation in industry (practices). Increased trade and cross-border
traffic. Reduced congestion and emissions.
Opportunity cost of public fund usage. Additional burden on taxpayers. Loss of economic opportunities
(redundant businesses shut down). Negative community impacts.
COTE 2012 – UWI – OCTOBER 11-12TH
TYPOLOGY OF LOGISTICS CLUSTERS
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FROM LOGISTICS ZONE TO LOGISTICS POLE
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THE GEOGRAPHY OF LOGISTICS CLUSTERS
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LOGISTICS CLUSTERS’ FRAMEWORK
Supported industries
Cluster Core
Related industries Transportation services
Critical institutions
Logistics services
Infrastructure operators
Source : Munoz & Rivera (2010, p. 16)
COTE 2012 – UWI – OCTOBER 11-12TH
LOGISTICS CLUSTERS IN SINGAPORE
Supported industries
Chemical products
Cluster Core
Related industries
Container maintenance
Ship maintenance
Aircraft maintenance
Marine equipment and offshore engineering
Lighting and electrical equipment
Transportation services
Shipping lines Airlines
Logistics and supply chain services providers Handling agents
Regional distribution and land transport
Air cargo operations Port operations
Storage and warehousing
National and international
educational institutions
Changi International LogisPark, Airport Logistics Park,
Singapore Freeport Authorities
R&D institutions for intelligent transport systems and Excellence
research centers in logistics and SCM
Cluster Organizations Singapore Logistics
Association
Biopharmaceutical
Manufacturing
IT
Communications and media
Financial services
Oil and Gas
Plastics
Critical institutions
Logistics services
Infrastructure operators
Source : Munoz & Rivera (2010, p. 22)
COTE 2012 – UWI – OCTOBER 11-12TH
LOGISTICS CLUSTERS IN DUBAI
Supported industries
Tourism
Cluster Core
Related industries
Container maintenance
Ship maintenance
Aircraft maintenance
Transportation services
Shipping lines Airlines
Logistics and supply chain services providers Handling agents
Distribution and land transport
Air cargo operations Port operations
Storage and warehousing
Educational institutions Jebel Ali and Dubaï Airport Free
zones Authorities UAE Custom and other Governmental
agencies
Cluster Organizations (Emirates Freight, Fowarders Association, Dubaï Shipping
Association
Finance services
Manufacturing (Free zones)
Construction
Critical institutions
Logistics services
Infrastructure operators
Source : Munoz & Rivera (2010, p. 34)
COTE 2012 – UWI – OCTOBER 11-12TH
LOGISTICS CLUSTERS IN PANAMA
Supported industries Tourism
Cluster Core
Related industries
Container maintenance
Ship maintenance
Transportation services
Shipping lines Airlines
Port operations Railroad operations
Free Trade Zone op.
Storage and warehousing
3PL agents
Airport operations
Free Trade Zones Authorities
(CFTZ and PP)
Panama Maritime Authority
Maritime Law Service
Construction
Financial services
Critical institutions
Infrastructure Operators
Logistics Services
Source : Munoz & Rivera (2010, p. 53)
Panama Canal
Handling agents
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MAKING LOGISTICS CLUSTERS HAPPEN
STRATEGIC LOCATION
GOVERNMENT COMMITMENT AND STABILITY
HU
MA
N R
ESO
UR
CES
INFR
AST
RU
CTU
RE
AD
MIN
ISTR
ATIV
E P
RO
CES
SES
REG
ULA
TIO
N
LOGISTICS HUB
ANCHOR COMPANIES AND FDI ATTRACTION
Source : Munoz & Rivera (2010, p. 41)
Fondation
Processes
Capstone
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COTE 2012 – UWI – OCTOBER 11-12TH
CUTLER - HAMMER COMPANY SUPPLY CHAIN IN THE CARRIBBEAN
Source: Lambourdière E. (2001).
COTE 2012 – UWI – OCTOBER 11-12TH
COTE 2012 – UWI – OCTOBER 11-12TH
COTE 2012 – UWI – OCTOBER 11-12TH
COTE 2012 – UWI – OCTOBER 11-12TH
CARIBBEAN TERRITORIES CAN MAKE IT HAPPEN BECAUSE THEY NEVER PASS THE BUCK, NEVERTHELESS…
TRADITIONAL BEST PRACTICES WON’T WORK.
CARIBBEAN TERRITORIES NEED A STRICTER, MORE TOP DOWN PLAYBOOK
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5 RULES FOR MANAGING LOGISTICS CLUSTERS PROJECT INNOVATION
1 Start small
2 Use rigourous project management and seasoned project leaders
3 Invest time defining the innovation
4 Build enough knowledge overlap for collaboration
5 Don’t rely solely on tehnology for communication
COTE 2012 – UWI – OCTOBER 11-12TH
Eric LAMBOURDIERE Associate Professor
PhD in Regional
and Planned Development
Elsa CORBIN Associate Professor
PhD in Logistics Management
Christopher SAVAGE Associate Professor
THANK YOU FOR YOUR ATTENTION.
QUESTIONS ?
