Fuelling the global value chains: what role for logistics capabilities?

International Journal of Technological Learning, Innovation and Development

Volumn 1, Issue 3, 2008, Pages 353-374

  Memedovic, Olga ^a   Ojala, Lauri ^b   Rodrigue, Jean Paul ^c   Naula, Tapio ^b  

^a UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION   (Austria)

^b UNIVERSITY OF TURKU   (Finland)

^c HOFSTRA UNIVERSITY   (United States)

Author keywords

drivers of logistics capabilities; GVCs and networks; industrial policy; LOCAI; Logistics Capability Index; logistics industry; Logistics Performance Index; LPI

Indexed keywords

EID: 77954893755     PISSN: 17531942     EISSN: 17531950     Source Type: Journal    
DOI: 10.1504/IJTLID.2008.019978     Document Type: Article

References (40)

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31. Reference: CSCMP, available online at: http://cscmp.org/AboutCSCMP/Definitions/Definitions.asp (accessed on 25 March 08); the organisation was previously known as Council of Logistics Management (CLM).
32. According to CSCMP, a trade organisation based in the USA, SCM is defined as “Supply chain management encompasses the planning and management of all activities involved in sourcing and procurement, conversion, and all logistics management activities. Importantly, it also includes coordination and collaboration with channel partners, which can be suppliers, intermediaries, third party service providers, and customers. In essence, supply chain management integrates supply and demand management within and across companies”. Available online at: http://cscmp.org/AboutCSCMP/Definitions/Definitions.asp (accessed on 25 March 2008).
33. This is in contrast to the Second Party Logistic (2PL) concept, where the internal transportation and warehousing functions of a company are unified in a separate internal logistics department. In industrialised countries, almost a third of logistics turnover is contracted to 3PL providers, while in many industrialised East Asian countries around 10% of trade-related transport services are provided in this way.
34. For instance, warehouses are adding value by using Radio-Frequency Identification (RFID) tags (or transponders) in packaging, assembly and storage. These automatic identification methods make it possible to keep track of products at all times and enhance security.
35. In Europe, the top 20 companies account for 33% of the logistics services market.
36. Feenstra et al. (2002) reported that value added by Hong Kong intermediaries was estimated at an average of 16% of the value of exports.
37. Quality of logistic services, defined as inter-modal transport services, freight forwarding, 3rd Party Logistics/4th party logistics, is discussed in more detail in Ojala et al., in this IJTLID Special Issue.
38. According to the WTO, trade facilitation assumes measures to simplify, standardise and modernise import-export and transit procedures – particularly those relating to customs procedures. Better and clearer rules in this area could have enormous benefits for development. By standardising customs procedures, common rules can improve transit times, cut red tape and improve transparency.
39. One-stop shops are suggested in international for a discussion as one possible solution for SMEs to eliminate the numerous intermediary steps needed to comply with custom procedures.
40. Over-regulated transport services, monopolies and institutional failures may cause serious inefficiencies in the provision of transport services.