The influence of logistics clustering on distribution capabilities: a qualitative study

Abstract

Purpose The purpose of this paper is to explore why and how firms with logistics-intensive operations such as fast-moving consumer good (FMCG) distributors benefit from residing in logistics clusters. In particular, this study seeks to fill a gap in the understanding of how logistics clustering may influence FMCG firms’ distribution capabilities. Design/methodology/approach Three case studies of FMCG distributors geographically agglomerated within Q Logistics Cluster in Jordan serve to elaborate the existing theory of clustering. Data were collected from 24 interviews as well as observational evidence of the FMCG distributors’ outbound logistics operations. The unit of analysis was the interaction between FMCG distributors and other agents in the logistics cluster. Findings FMCG distributors tend to gravitate to clusters where logistics service providers and other FMCG firms co-locate. FMCG distributors interact intensively and benefit greatly from building ties with non-competitor distributors in a cluster. Informal personal relations, collaborative activities and knowledge sharing, learning opportunities and resource availability were found to act as mechanisms for generating distribution capabilities within a logistics cluster. Practical implications This study provides practical implications for FMCG logistics and distribution managers who make distribution centre (DC) location decisions. The study provides such managers and their firms with a deeper understanding of the importance of co-locating DCs in logistics clusters, and may help them in designing their supply networks. Originality/value This is the first scholarly work to uncover the various ways in which FMCG distributors benefit from logistics clustering and explain why they may differ in performance, building on observations of their capabilities. The study provides insight from an emerging market and encourages future researchers to conduct further studies on logistics clustering in order to bring relevant theory forward.

Research Report on Cold Chain Logistics of Dairy Products—A Case Study of GuangMing Dairy Industry

“…Bright Dairy, as a well-known brand, has a wide range of products including yogurt, cheese and other varieties. In order to expand the market scope, we should combine various modes of transport, plan reasonable routes, realize multi-batch and multi-batch transport mode, and realize the rationalization of transport [13].…”

Competitiveness Through the Integration of Logistics Activities in SMEs

“…Outbound/physical distribution refers to the set of processes, systems and capabilities that enhance SMEs ability to serve their customers. Transportation, as one of the logistics activities, facilitates (Abushaikha, 2018) the physical flow of goods and service as well as related information from the point of origin to the final consumers. The ultimate goal of transportation is to satisfy customers both upstream and downstream in the logistics chain with greater effectiveness and efficiency than is provided by the competitors (Yu et al, 2017).…”

“…The ultimate goal of transportation is to satisfy customers both upstream and downstream in the logistics chain with greater effectiveness and efficiency than is provided by the competitors (Yu et al, 2017). Transportation usually represents the most important single element in logistics strategy for firms and thus, SMEs need to understand the role transportation plays in creating a high level of customer satisfaction and its contribution to greater competition in the marketplace, greater economies of scale in production and reduction in the price of goods (Abushaikha, 2018). Transportation bridges the gap between buyer and sellers, ensures on-time delivery, adds value to the SMEs by creating a time and place utility, reduces inventory costs, increases profitability and improves productivity for both buying and supplying SMEs (Holl, Mariotti, 2018).…”

Modelo de localização e alocação de produtos de e-commerce: um estudo de caso

“…Assim, ao definir a quantidade e localização das instalações de uma rede de distribuição adere-se a ela toda a estrutura de operação de transporte e distribuição de produtos. Desta forma, a localização das instalações, bem como dos seus itens, influencia o desempenho e eficiência da rede de distribuição além de impactar no lucro da empresa e na disposição de sua estrutura física para o desenvolvimento das atividades logísticas (Abushaikha, 2018).…”

“…Há diversos estudos abordando a problemática de localização de instalações, como nos clássicos Vön Thunen (1875), Weber (1929), Isard (1968), e mais recentemente em Senne and Lorena (1997), Bhutta (2004), Bischoff and Dächert (2009), Pizzolato, Raupp e Alzzamora (2012) e Aziz, Chan, Lee and Parkes (2020). Contudo, entre os trabalhos que abordam o problema de localização em instalações multicapacitadas sob a ótica da estratégia de alocação de produtos, como em Love and Juel (1982), Azarmand and Neishabouri (2009), Liu, Peng and Chen (2015), Abushaikha (2018), El Amrani, Benadada and Gendron (2019) e Mousavi, Pardalos, Niaki, Fügenschuh and Fathi (2019), o levantamento da literatura para este artigo não encontrou modelo ou proposição sob a perspectiva de otimização combinatória de produtos, em instalações multicapacitadas de e-commerce.…”