A logistics and transportation Cluster Initiative: A Theoretical framework

Teresa Verduzco-GarzaUniversidad de Monterrey, México

Parallel Session 2.1: Cluster Models Worldwide. Unique Features, Common Challenges

Content

• Introduction• The Theory behind the Clusters for competitiveness• More than a supply chain• Logistics Cluster in the world• Transportation and Logistics Cluster in Nuevo León• Barriers• Conclusion• Future questions and next steps

Introduction

• Through the supply chain, goods transportation has represented an important link in order to increase competitiveness for organizations, both manufacturing and services.

• In fact, is mainly important to develop strategies to intensify the service level for being competitive in a specific location.

The Theory behind the Clusters for competitiveness

“A cluster is a geographically proximate group of interconnected companies and associated institutions in a particular field, linked by commonalities and complementarities”

(M. E. Porter, On Competition, 1998)

ENTERPRISE GROWTH• Cost reduction• Easier and faster response• Access to more and

sophisticated markets• Accelerate innovation• Enterprises are more productive

and profitable

REGIONAL GROWTH• Increase investment

attractiveness• High potential for new jobs• Labor and operations

Sophistication• Region becomes more

competitive

Logistic Clusters Characteristics

Proximity

Specialization

Stimulates economic Growth

Shared vision

Interconnection

Coo-petitionCollective learning

LOGISTIC CLUSTER

Logistics clusters classification

By transportation mode

• Air Transportation: High value goods, others sensitive to transportation time

• Ports: High volume, low cost, non perishable

• Railroads: Commodities or batches

By market served orientation

• Local consumer orientation: Size and growth of the local consume population, Clusters in which demand is oriented toward population centers

• Trade orientation: Geographic positioning and importance along global trade routes, Clusters in which demand is driven by access to global trade routes

Source: Prologis, 2015Source: Sheffi, 2013

* Road Truck hubs serve to urban areas or are suppliers for other transportation mode clusters.

The four economies of a Logistic Cluster

Source: Sheffi, 2013

AC

HIE

VE

HO

RIZ

ON

TAL

INT

EG

RAT

ION

S

Economies of SCOPE

Economies of SCALE

Economies of DENSITY

Economies of DENSITY

Measuring Global Logistics Clusters Performance

• GCI: Global competitiveness Index– Market efficiency (goods)– Technology development– Market size– Sophistication– Innovation

• LPI: Logistic Performance Index– Customs – Infrastructure– Ease of arranging shipments – Quality of logistics services – Tracking and tracing – Timeliness

Other Important Indicators

• Innovation, Patents and trademarks• More skilled labor • GDP of the cluster members is superior to the non –

members in the same activity sector• Average wages are higher for the cluster members than

non-members• Labor opportunities increases faster in the cluster activity

sector than the rest of the activity sectors in the country• More investment attracted• Profitability of the members increases faster

More than a Supply Chain Integration

Inventory

Postponement

Packaging

Load the truck

operation

Road From A

to B point

On TimeFulfillSafe

Transaction time

Transaction cost

Forwarder

Cross DockMode

ChangeLoad

Consolidation

(before or after

the custom)

CostExpediti

ousSafety and

trustful

Define and select trustful suppliers for the different stages: • Tier 1• Tier 2• Tier 3

WarehousingTransportation /

Distribution / Consolidation

Custom / International

Trade

HUB International Transportation

Transportation and Logistics Cluster Nuevo León

Innovation Ecosystem in Nuevo León

R&D High Intensity

• Nanotechnology• Biotechnology• Aerospace• Medical Services

R&D Medium- High Intensity

• Automotive Industry• Home Appliances and electro

domestics industry• IT and Software• Interactive Media &

Entertainment• Transportation and Logistics• Sustainable housing• Agri Food

Transportation and Logistics Cluster in Nuevo León

NUEVO LEÓNREGIONAL INDICATORS:

• 5 mill. People (4% of the country)

• 8% GDP

• 4 Important Universities (ITESM, UANL, UDEM, UR)

• 15 000 Engineering graduates per year

• USD $2 000 Mill. Foreign investment (12% of México)

Source: I2T2, Parada, 2014

Cluster Initiative for Transportation and Logistics in Nuevo León

• Nuevo Leon: Pole of development• Logistics services as an Engine to increase growth• Monterrey City:

– Manufacturing concentration wide variety of industrial sectors– Important for international trade with North America– 200km from the border port of entrance to U.S. (Laredo, Colombia, Reynosa)– One of the most important regional economies in the Country

Fuente: CECIC, Programa regional de competitividad e innovación, 2004

Triple Helix Model

Academy and Education

Private initiativeGovernment and

Public Institutions

Source: Etzkowitz & Leydesdorff, 2000

Financial Institutions?

Operations

• Operation of logistic cluster in NL (the corridors, customs, road networks to connect ports and railroads, Interpuerto).

Source: CECIC

LogisticStock

IT and communication infrastructure

• Optical Fiber networks• Satellites

Multimodal infrastructure• Roads• Railroads• Ports• Airports

Energy infrastructure• Electricity• Oil• Gas• Carbon

Hydraulic infrastructure• Watershed habilitation

• Aquifer

Limitations in Transportation and Logistics Cluster Development in N. L.

• Lack of agreements inside the committee and Cluster Director.

• Limited knowledge of the cluster concept.

• Financial issues

• No trust between the members

• Different “Expectations” of the clusters’ benefits

Conclusion and future Questions

• Could a Transportation and Logistics clusters could be centered on road trucks as a driver?

• Which enterprises should be the “attractors”?

• How to integrate small carriers to the cluster? Thinking about “the last mile”

• How to develop horizontal integrations?

• To accelerate the development of the transportation and logistics cluster initiative in N.L. is the next main concern to resolve….

Information

Thank YouTeresa Verduzco-Garza

Universidad de MonterreyEngineering department professor and researcher

teresa.verduzco@udem.edu

References• [1] (Book) A. Marshall, Principles of Economics, London: Macillan, 1890• [2] (Journal) M. E. Porter, Harvard Business Review, 1998, 77-90• [3] (Journal) H. Etzkowitz, W. Hillerbrand, D. Messner and J. Meyer-Stamer, Research Policy, 2000, 29,

109-132• [4] (Journal) L. Lazzeretti, Economía Industrial, 2006, 59-72 • [5] (Document) A. M. Celis, D. Martinez and J. Felix, Identificación de clusters económicos de la ciudad de

México, 2012, retrieved from http://www.izt.uam.mx/sotraem/Documentos/AMET2011/REC/TEXTO/11-13/11_04.pdf

• [6] (Conference) C. Ketels, G. Lindqvist and Ö. Sölvell, Cluster initiaties in developing and transition economies, Center of strategy and competitiveness, Stockholm, 2006.

• [7] (Book) Y. Sheffi, Handbook of Global Logistics, 1st ed. Springer, chapter 19, 463-500• [8] (Journal) L. Rivera, Y. Sheffi and R. Welsch, Transportation Journal Research Part A, 2014, 59, 222-238• [9] (Journal) Y. Chai and F. Yang, The international Journal of interdisciplinary social sciences, 2011, 29-39• [10] (Journal) C. Schmoltzi and C. M. Wallenburg, International Journal of Physical Distribution and

Logistics Management, 2011, 552-576• [11] (Journal) F.. Cruijssen, W. Dullaert and H. Fleuren, Transportation journal, 2007, 22-39• [12] (Conference) SEDEC. Programa de Desarrollo innovador 2013-2018• [13] (Conference) N. Gonzalez-Parás and CECIC, Programa regional de competitividad e innovación• [14] (Conference) J. Parada, Nuevo León impulsando la economía y Sociedad del Conocimiento, 2014, 5-7