How do retail firms benefit from co-locating in logistics-intensive clusters? A focus on the inbound supply function

ABSTRACT

Recent years have witnessed major developments in the field of retail logistics in search of new practices that would improve competitiveness. This study contributes to the developing body of research in retail logistics through evaluating the role of logistics clustering in improving inbound supply performance. Qualitative data were collected through 26 interviews from various actors inside a logistics cluster in Jordan. Results show how close coordination in logistics clusters contributed to improved inbound supply performance through achieving delivery velocity, physical supply flexibility, reduced inbound transport cost and inventory carrying cost. Residing in logistics clusters has led to improved operational efficiencies, reduced inbound response time and smoothed flow of material in the retail channel. The study also provides insights on how logistics clustering has improved supply resiliency of the Jordanian vulnerable supply chains through joint knowledge creation. Finally, this study provides implications for logistics and retail supply chain managers.

KEYWORDS:

• Cluster
• geographical concentration
• logistics
• inbound supply performance
• retail logistics
• Jordan

Disclosure statement

No potential conflict of interest was reported by the authors.

Additional information

Notes on contributors

Ismail Abushaikha

Ismail Abushaikha is Associate Professor of Logistics at the German-Jordanian University, Amman, Jordan. He holds a PhD and MSc in Logistics Management from Heriot-Watt University Edinburgh. Dr Abushaikha recent research interests focus on retail logistics, warehousing and distribution management, and case study research.

Ghazi Al-Weshah

Ghazi Al-weshah is Associate Professor of Marketing Strategy at Al-Balqa Applied University, Al-Salt, Jordan. Dr Alweshah has published widely in several international journals in the field of business management with a focus on service marketing, retailing and internationalization of SMEs.

Malek Alsharairi

Malek Alsharairi is Associate Professor of International Accounting at the German-Jordanian University, Amman, Jordan. Dr Alsharairi has published widely in the area of corporate governance and has an international teaching experience at several universities in Germany, UK and Jordan.