Three questions for a value-added logistics strategy

  What cost $66.26 on June 13, 2007?

  Adding value how?

  Adding value where?

  Adding value to what?

P V Hall: Asia-Pacific Gateway and Corridor Initiative: Towards a Value-Added Strategy Workshop, Vancouver, 13 June 2008

Adding value how?

  Creation-Insertion   Access knowledge about technology,

capital, supplies, expertise, markets   Volume?

  Enhancement-Integration   Reduce transactions costs to

compete with other supply chains   Volume through value?

  Capture-Dominance   Control critical assets to extract value

from others in the same supply chain   Value through volume?

P V Hall: Asia-Pacific Gateway and Corridor Initiative: Towards a Value-Added Strategy Workshop, Vancouver, 13 June 2008

Adding value where?

  Ports, gateways and port cities:   Costs and benefits?   Scarcity, scale and land use?

  Logistics, innovation and clustering:

  How do firms learn and innovate in logistics?

  Is clustering important? What about specialization, diversity, lead firms, start-ups, higher education...? Source: Markusen, A. 1996. Sticky places in slippery

space: a typology of industrial districts. Economic Geography, 72(3): 291-314.

P V Hall: Asia-Pacific Gateway and Corridor Initiative: Towards a Value-Added Strategy Workshop, Vancouver, 13 June 2008

Adding value to what?

  Adding value to logistics:   How important is the transport-logistics

industry in itself?   What is the logistics product cycle?   Can logistics sustain high-wage

employment?

  Logistics adding value:   What are the key supply chains?   What are the critical logistics needs of

key supply chains?   How well do shippers and carriers

signal and communicate?

P V Hall: Asia-Pacific Gateway and Corridor Initiative: Towards a Value-Added Strategy Workshop, Vancouver, 13 June 2008

Typology of value chain strategies at different scales, with examples

WHERE? HOW? WHAT?

Logistics chains Supply chains

Port (i.e. on- or near-dock and terminal facility)

Insertion Attract lines through concessions, leases On- or near-dock value-added activity

Integration Improved on-dock information systems Integrate on-dock with overall supply chain information systems

Dominance Specialized and dedicated terminal Unique on- or near-dock processing facilities

Port-city (i.e. immediate port hinterland)

Insertion Local road connections Export promotion

Integration Backhaul cooperation Local production cluster strategy

Dominance Transport industry cluster strategy Develop immobile capacities

Nation (i.e. beyond port-city)

Insertion Long-distance (rail) service and infrastructure

Inward investment attraction

Integration Regional corridor strategies National production cluster strategy

Dominance Transshipment hub Strategic trade policy

P V Hall: Asia-Pacific Gateway and Corridor Initiative: Towards a Value-Added Strategy Workshop, Vancouver, 13 June 2008

Source: Hall and Robbins, 2007. “Which link, which chain? Inserting Durban into global automotive supply chains” in: Wang, J, Olivier, D, Notteboom, T and Slack, B. (eds) Ports, Cities, and Global Supply Chains. Aldershot: Ashgate