Enablers of logistics cluster benefits; An exploratory study

The logistics industry contributes about 9% to Australia’s GDP with $132 billion value added and 1.2 million people employed, providing the context of logistics clusters. This paper aims to explore the factors which may lead to logistics cluster benefits (LCB). This study empirically explores the enablers of LCB within a conceptual framework developed around LCB. A survey was conducted across logistics, retail, manufacturing and agro-industries in Australia across 3000 participants by email over four months, from which 58 responses were received. Exploratory factor analysis (EFA) was used to analyse data. Three factors Operational collaboration, Service quality in Value added logistics (VALS_QOS), Industry character were identified. Operational collaboration identified both tactical collaboration with the state on the adequacy and timing of Government investment in logistics infrastructure in the region, as well as intra firm collaboration on; relationships, aggregate purchasing of logistics services, resolution of common problems, joint development of industry practices and standards, supply chain (SC) planning and operational processes. For VALS_QOS the ubiquity, responsiveness and availability of the VALS offering at the firm’s location was identified. Industry character is a factor that identifies the scale , magnitude as well as the variety of industry in a location. This study provides empirical evidence of enablers of LCB expanding on research by Rivera and Sheffi who advocated investigation of logistics clusters (LC). New information about LC in Australia is available for decisions by policy makers and firms seeking guidance on resourcing infrastructure investment and promoting logistics activities.