Analysing logistics flows in industrial clusters using an enterprise input-output model

Industrial clusters provide an interesting example of local systems of production that are facing global competition. The firms’ processes acquire raw materials, convert them into final products, and deliver final products to retailers. Short and long range transfers of materials and energy are becoming crucial for clusters’ competitiveness. Logistics activities have a particular importance for geographic clusters where production activities and residences are remarkably diffused and this results in high mobility and environmental problems. The coordination of transport demand implies a new integration and organization of logistics not only to reduce costs and enhance management control, but also to reduce their impact on the environment. In the paper, we propose the use of an enterprise input-output model to analyse logistics flows in order to support coordination policy at the level of the whole industrial cluster. First, logistics flows between firms’ processes are modelled aggregating similar processes to create a complete account for logistics flows in the industrial cluster. Successively, considering the disaggregated representation of processes, different coordination policies for logistics flows ranging from hierarchy to market are examined and modelled. The effects of such policies on input-output coefficients of the industrial cluster model and on logistics performance are evaluated. A case study related to an Italian cluster producing leather upholstery is considered and different coordination policies are compared also in terms of impact on productivity and environment