TCI 2016 Important Factors related to increase transportation competitiveness through a Logistic cluster

Titel presentatie[Naam, organisatienaam]

Working Day - Track: Academic TrackCluster Evaluation

Teresa Verduzco-Garza,Universidad de Monterrey

Important Factors related to increase transportation competitiveness

through a Logistic cluster (Pilot Test)

Teresa Verduzco-GarzaUniversidad de Monterrey, México

November 10th, 2016REG-613556

Academic Track

Important Factors related to increase transportation competitiveness through a Logistic cluster (Pilot

Test)

Content

• Introduction• The Theory behind the Clusters for

competitiveness• Logistics gives more power to Supply Chain

Integration• Logistic cluster competitiveness• Logistic cluster clue variables• Data analysis (Pilot test)• Conclusion 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, it is 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)

The Theory behind the Clusters for

competitiveness

ENTERPRISE GROWTH

• Cost reduction• Easier and faster

response• Access to more and

sophisticated markets• Accelerate innovation• Enterprises more

productive and profitable

REGIONAL GROWTH

• Increase investment attractiveness

• High potential for new jobs

• Labor and operations sophistication

• More competitive region

Logistics gives more power to Supply Chain

Integration

• Inventory• Postponem

ent• Packaging • Load the

truck operation

• Road From A to B point

• On Time• Fulfill• Safe

• Transaction time

• Transaction cost

• Forwarder

• Cross Dock• Mode

Change• Load

Consolidation (before or after the custom)

• Cost• Expeditious• Safety and

trustful

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

WarehousingTransportati

on / Distribution

/ Consolidatio

n

Custom / Internation

al TradeHUB Internation

al Transportat

ion

Logistic Specialized Operations

Some important actors

Tier 3

Tractor Enterprise

Plane (air Transportation)Railroad (Ground Transportation)Ship (Maritime Transportation

Road TrucksWarehouse, packaging, last assemblyCustomsTraceability providersSoftware

Mechanical Repairs and spare partsEnergy, Oil, GasInsurance

Trucks, ships, planes, locomotives providersRoute infrastructure

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

What makes transportation competitiveness increases

through a Logistics cluster?Diversification

Horizontal IntegrationTran

spor

tati

on

com

peti

tive

ness

in a

Lo

gist

ic C

lust

er

CauseEffect

Strategic Alliances

Geography and Location of the logistic activity concentration

Logistic chains amplification

Traceability and reliability of delivering

Y: CompetitivenessThe ability to produce goods and services with superior quality and lower price than competitors.It has its roots on productivity.Capacity of the industry to innovate in their way to compete.

(Porter, 1990)

Contribution Authors Model• Stimulate the competitive

advantages development in suppliers

• Extended value systems based on technology

Scheel & Parada (2008)

WIT (Wealth – Innovation – Technology)

• Drivers of productivity and prosperity on a national economy

• Impact of integrated logistics elements in competitiveness

WEF Global competitiveness Report (2016)

GCI (Global Competitiveness Index)

LPI (Logistic Performance Index)

For this study, one way to measures this variable is road miles traveled increase

X1: Diversification

• Transport Diversification means the exchange on transportation capacity with other logistics firms, both using others firms capacity and other firms using ours; including fleet sharing, load consolidation between different firms, load decentralization and the measurement of the transport capacity use, looking forward to reduce transportation costs.Authors Indicators

van den Heuvel F. P., de Langen, van Donselaar, & Fransoo, 2012

Thomas (2003), Bowen (2008), citados por van den Heuvel, y otros, (2013)

• Load capacity sharing with other firms• Concentrate goods from other modal

transport associated firms• Decentralization of the load in an specific

hub• Increase transported volume per

transportation unit• Reduce transportation costs

X2: Strategic Alliances

• To launch strategic alliances to maximize the associated firms’ strengths and to integrate transportation chains to offer a complete service to benefit their customers and themselves.

Authors IndicatorsPorter, Takeuchi, & Sakakibara, (2000)

Ketels, Lindqvist & Sölvell (2006)

Van den Heuvel, de Langen, van Donselaar, & Fransoo (2012)

• Collaboration as a sharing value between the partners

• Association in specific sectors (logistics in this case)

• Logistics parks• Associate different firms because of their

geographical nearness

X3: Logistic chains amplification

• Integration of different firms mainly in logistics activities related, to amplify the set of services offered to customers to become more productive and competitive.

Authors Indicators

A. Gunasekaran (2001)Porter, Takeuchi, & Sakakibara, (2000)

Van den Heuvel, de Langen, van Donselaar, & Fransoo (2012)

• Quantity of links and associated firms in the same logistic chain service

• Increase of their miles traveled with the same unit

• Improvement on customer service levels• Increase on quantity of the offered services• Productivity increase of each firm

X4: Geography and Location of the logistic activity concentration

Logistic firms concentration density in the same geographical space, to create global activity networks for creating value and increasing their own productivity, easily responding to demand variations.Those specific geographical concentrations looking forward to improve the regional economic development.

Authors Indicators

Porter (2003)

van den Heuvel y otros (2012)

Rivera & Sheffi (2014)

• LQ: Location Quotient• HCLQ: Horizontal Clustering Location

Quotient• LEP: Logistics Establishment Participation• Transportation efficiency• Easiness to response on demand variations• Improve regional economic development

YES! … Location Matters…

X5: Horizontal Integration

Different firms offering similar logistic services to attend different markets, but maintaining their own independence, improving in cost reductions through consistent cooperation between independent firms.

Authors IndicatorsCruijssen (2007)

Cruijssen, Cools, & Dullaert (2005)

Mercado y Martínez (2010)

Schmoltzi y Wallenburg (2011) (2012)

• Firms independence through an association• Cooperation between enterprises• Mutual influence between the associated

firms• Open communication

X6: Traceability and reliability of delivering

Ability of the logistic firm to always deliver what was promised, maintaining an outstanding and consistent quality perceived by their customers and generating trust with their customers.Authors IndicatorsPorter M. E, 2003

van den Heuvel F. P., de Langen, van Donselaar, & Fransoo, 2013

Rivera, Sheffi, & Welsch, 2014

Kottler, 2001

Rajwinder Singh, 2010Vega Muñoz & Reinoso Alarcon, 2014

A. Gunasekaran 2004

• Consistency on delivered merchandise• Service Level• Flexibility• Customer loyalty• Fulfillment• Innovation increase• Highly specialization

Measurement (Pilot Test)

• Trucks Road carriers• In Nuevo Leon Region• Between 2016 and 2017• Using a 6 points Likert scale

questionnaire• Data treatment with a

Multivariate analysis technique (Linear Regression)

Pretends to test if the 6 named clue variables are influent on a logistic cluster competitiveness in Nuevo León region.

Pilot Test (Preliminary Results using Cronbach

Alpha)

X1: Transportation DiversificationX2: Strategic AlliancesX3: Logistic Chains AmplificationX4: Geography and Location of the

logistic activity concentrationX5: Horizontal integrationX6: Traceability and reliability of

delivering

Y1:Road truck carriers competitiveness in a Logistic Cluster

X1a: 0.83

X4a: 0.89

X3a: 0.12

X2a: 0.93

Y1

X5a: 0.87

X6a: 0.94

H1+

H2+

H3+

H4+

H5+

H6+

Linear Regression Model

• For this pilot test, the regression model shows that HI (Horizontal Integrations) are not significant.

• Some correlation were found in the pilot test model, needed to be fixed.

• Factor analysis of the pilot test suggests 4 variables to analyze (still very few data).

• Regression analysis eliminated variable “Horizontal Integration” with low significance.

Y= 1.33 + 0.30 DT + 0.401 AE + 0.261 LG + 0.372 FE

Conclusion

• According to the significance, the clue variables to stimulate competitiveness for a truck carrier in NL Region are:

– Traceability and reliability of delivering– Strategic Alliances– Geography and Location– Transportation Diversification

Future Analysis

• Gather more data to complete the total sample

• Full Linear Regression Analysis

• Test the hypothesis (Not accept or Not reject)

• Final conclusions of the complete model

Information

Thank YouTeresa Verduzco-Garza

Universidad de MonterreyEngineering professor and researcher

[email protected]

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