Many of our regular readers recognize Jan Husdal’s website as one often recommended by our staff. Husdal’s focus on the growing risk and risk management opportunities in global supply chains, often presents to our readers new ideas, market direction and strategic planning processes expressed as helpful input(s) to the risk mitigation process of their own organization(s).
Given the many growing risks affecting longer supply chains in both time and distance, Husdal’s recent posting on the topic of logistic clusters may be one of those ideas you might want to pass along to the purchasing and logistics team members in your organization.
In this posting, Husdal references a new book written by Professor Yossi Sheffi, Director, MIT Center for Transportation & Logistics. This book is titled, “Logistics Clusters: Delivering Value and Driving Growth” (MIT Press, October 2012), and was written to shed light on the crucial role played by logistics clusters in supply chain management and international commerce.
In his book, Professor Sheffi defines logistics clusters as “…communities of companies that come together to share logistics expertise and know how. They can be found in most countries, often near consumer markets or within ports and airports. And they play host to a wide range of enterprises including the logistics arms of enterprises, third-party logistics services providers, distribution companies, and freight carriers.”
While certainly not the total answer to all the risks in global supply chain management, our staff believes that Prof. Sheffi presents enough pros (i.e. more operational flexibility, better distribution efficiencies, broader economic benefits) and cons (potentially more vulnerability to economic downturns, geopolitical risks, and global competition) about logistics clusters to make them eligible for consideration by all global supply chain dependent operations.
Click here to learn more about this and many other great resources offered by Jan Husdal to the global supply chain risk management community.