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  2. Driving Growth and Employment Through Logistics
  3. Today’s Top Supply Chain and Logistics News From WSJ

The group started to pick up steam by gaining a variety of clients, including pallet, food and beverage companies. Ally moved into its current office, a 5,square-foot space on 76th St. SW, in , but because of a recent rapid growth trajectory, the team already is outgrowing its space. The company started to experience serious growth in The team signed a lease on an over 20,square-foot office space at 36th St. While Ally forecasts hiring more than 20 new employees next year, the new space will have the capacity to accommodate in excess of While the company now specializes in transportation and logistics for some big-name companies, it still relies on its traditional methods of cold calling and actively pursuing clients on top of growth within its current clientele, Manshaem said.

Manshaem said leadership would accomplish it partly through the recruiting and retention of high-quality employees.

Careers in logistics and supply chain management - MBA, Scope, Institutions, Job Opportunities

Ally also intends to focus more on emerging technologies in the coming years. Manshaem said new transportation technologies will help the company improve operational efficiency and customer service, as well as set it apart from the competition. COM Learn More. Trending Comments. One of those retailers has been Wal-Mart, which in purchased e-commerce startup Jet.

The Amazons of the world have clearly had a huge impact on brick-and-mortar retail around the country. But those jobs were very low-end jobs and some of them were part-time. So in the end it has actually produced a higher quality worker and a higher quality position that pays more money and is a much more lucrative type position than what was being offered in retail.

When Amazon announced in September that it would conduct a nationwide search for a second North American headquarters that would employ up to 50,, it seemed to capture the economic development fantasies of states and communities around the country. That was certainly the case in Indiana, where Indianapolis and Jeffersonville were both promoted as possible landing spots for the facility. Louisville and the Cincinnati area , including CVG and Northern Kentucky, were hopeful they would get a close look as well.

I think we offer an ease of getting around the country. On January 18, , Amazon announced a list of finalists for the second headquarters. Kentucky did not make the cut but 20 others did, including regional neighbors like Columbus, Nashville and, yes, Indianapolis. Logistics Leaders Separated by a river, Indiana and Kentucky are two states at the forefront of a growing sector of the economy that is reliant on infrastructure and that in the years ahead will challenge policymakers on a number of different fronts: logistics and distribution. For Kentucky, the sector is responsible for some 60, jobs at nearly facilities.

The Future of Logistics Kentucky and Indiana are both bullish on what the future holds for the logistics sector of the economy and particularly the role one company could play in that future. Harris, the Kentucky state senator, made the case for the Louisville area. Ask Seattle. Also, better accessibility of freight increases logistics employment van den Heuvel et al.

The evolution and future of logistics and supply chain management

Overall, firms in countries with better logistics performance have higher probability of exporting to international markets and attracting foreign direct investments Hausman et al. Thus, logistics development has a positive impact on regional economic growth Chu, ; Lean et al. Therefore, we propose the following hypotheses:. H2 a : Logistics performance has a positive effect on seaborne trade.

H2 b : Logistics performance has a positive effect on national economy. H2 c : Logistics performance has a positive effect on national economy mediated through seaborne trade. Ports are the hub and node of networks for all kinds of waterborne transport and link countries with rest of the world; thus, they promote transportation and distribution in the cheapest way. Ports are more than just an infrastructure that facilitates international trade; they also determine freight transport costs and help companies access international markets Clark et al.

Although the most visible economic contribution of ports was employment in the port, this has declined dramatically since the inception of containerisation, although ports still contribute significantly to the overall economy in rather less visible forms. In this present era of globalisation, products are usually produced far away from consumer markets, and raw materials for a single product are often sourced from several different countries.

Also, vertical specialisation has increased dramatically over the last two decades; that is, different parts of the production function of a product are performed in different countries Hummels et al. This would have not been possible without the support of efficient maritime transport.

Overall, the contribution of maritime transport nowadays is invisible to ordinary people, but spread over different industries and institutions to such an extent that it can hardly be measured accurately. Sleeper found that GDP is positively proportionate to the number of worldwide recognised ports in a country.

In an analysis of port regions from 13 European countries, Bottasso et al. Thus, we hypothesise that:. Data regarding all observed variables of latent constructs of this empirical analysis are collected on an annual basis per country from the World Bank database data. To capture the impact of port infrastructure quality and remove potential bias from small island economies with negligible economic activity on a global scale, we have selected countries that have seaports with yearly container traffic of , twenty equivalent units TEUs.

In total, 91 countries were considered for analysis see Appendix C. Most of the previous impact studies discussed in Section 2 used a defined set of observed variables on empirical levels. However, when it comes to multi-facet, hardly direct measurable issues like logistics performance and seaborne trade, the essence to develop latent constructs using multiple observed indicators becomes relevant.

Therefore, we designed a set of latent variables consisting of multiple observed indicators. This served as the motivation to select structural equation modelling SEM as the appropriate method of analysis. According to Kline , a sample size for complex SEM should be more than Accordingly, data have been pooled from three years namely , and , generating observations, except for observations with missing values.

XQ for details. The logistics performance construct consists of six indicators as listed in Table 1. Lun et al. The set of LP indicators is based on empirical survey data collected by the World Bank on a regular basis. Seaborne trade can be expressed by container or cargo throughput, as used by Deng et al.

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However, throughput alone cannot totally represent the value and intensity of seaborne trade of a country. Therefore, a latent construct with country-level container throughput in TEUs and liner shipping connectivity index is formed. The LSC index represents the connectivity of countries with each other in the form of a global liner shipping network. The LSC index is based on five maritime transport components i. A correlation matrix of all the latent constructs is depicted in Appendix B.


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Therefore, we used per capita GDP, after controlling for purchasing power parity, to form the national economy construct using a single indicator. This section presents empirical analysis and findings with respect to the research questions stated in Section 1. First, normality of latent variables has been checked through the Shapiro-Wilk test and Q-Q plots of residuals of variables. As none of the variables are normally distributed, the Satorra-Bentler rescaling method has been employed for SEM estimation, as suggested by Rosseel Validity and reliability statistics of the conceptual model proposed in Section 2 are then performed.

Driving Growth and Employment Through Logistics

Standardised factor loadings, squared multiple correlations SMC and model fit indices are considered to be the key statistical criteria for an acceptable measurement model Koufteros, R 2 represents the squared multiple correlations and all the values are above the recommended level of 0. In addition, all standardised factor loadings are above the recommended level of 0. In addition to the model fit indices and SMC, we also checked the reliability of the latent constructs. This also confirms internal consistency of the latent constructs Garver and Mentzer, To test for convergent validity, we examined the statistical significance of the factor loadings through their z-values also stated as t-values, Dunn et al.

As depicted in Table 3 , all z-values of indicators are higher than 2, which means that all indicators measure their respective latent construct, and confirm the uni-dimensionality and convergent validity of each construct Anderson and Gerbing, As all the R 2 values are above 0. To assess discriminant validity, a series of pairwise confirmatory factor analyses CFA were conducted.

In this process, a non-constrained CFA of one pair of constructs was compared with a constrained CFA at a time to avoid the influence of construct pairs with significant values over non-significant ones Anderson and Gerbing, As the measurement model and reliability tests have confirmed validity and reliability, the structural equation model is proceeded.

The parameter estimations, model fit indices, and the results of hypotheses proposed in Section 2. The SEM, including estimated standardised factor loadings and regression coefficients, is presented Fig. All 10 factors loadings are above the recommended level of 0. Moreover, other fit index measures, such as CFI 0. After confirming the fitness of the proposed SEM, we estimated the hypothesised relationships between the latent constructs. Based on the statistical significance of the regression coefficients depicted in Table 4 , this study finds support for H1 a , H1 c , H1 d , H2 a and H2 b.

The other hypotheses are not supported. Thus, quality of port infrastructure has a positive effect on logistics performance and national economy. Logistics performance has a positive effect on seaborne trade and national economy. The effects of quality of port infrastructure and logistics performance on national economy were found to be significant. While the mediation effect of port infrastructure quality on national economy via logistics performance is found significant, the mediation effect via seaborne trade was found to be insignificant.

Also, the mediation effect of logistics performance on national economy through seaborne trade was found to be insignificant. To further investigate whether the findings are similar for both developed and developing economies, a multi-group SEM is formed and estimated in the next section. A useful extension of the SEM is multi-group analysis, which allows for the investigation of model fit of a specific model for different groups. Some studies have compared different groups in terms of inequality. Due to immense inequality of regional economic development, Chu and Li et al.

Similarly, port infrastructure quality, logistics performance and seaborne trade may have varying impact on different economies of the world. Therefore, the sample of 91 countries has been divided into two groups: developed and developing economies. The World Bank classification of country economics was used to group the countries.


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The goal of multi-group analysis is to compare the means or regression coefficients across groups, and this requires that measurement of variables used are equivalent across groups. This is usually done by comparing models with equality constraints on different parameters across groups with the configural model that is, a reasonable multi-group SEM without any invariance constraints.

As the difference between the configural and equal factor loadings model is not statistically significant, metric invariance is established. Therefore, comparison of regression coefficients between the developed and developing economy group can be conducted. The findings of the multi-group analysis are remarkable.

Quality of port infrastructure has a positive effect on logistics performance in both developed and developed economies, but the quality of port infrastructure affects national economy only in developed economies.

Today’s Top Supply Chain and Logistics News From WSJ

However, the mediated effect of port infrastructure quality on national economy through logistics performance and seaborne trade is significant in developing economies. Furthermore, logistics performance has a positive effect on national economy for both developed and developing economies. This study examined associations among quality of port infrastructure, logistics performance and seaborne trade, and their effects on national economy.

Overall, the results show that improvement in quality of port infrastructure and logistics performance would bring the greatest benefits to the economy of a country. The study revealed that the quality of port infrastructure has a significant positive effect on national economy, which is similar to Ferrari et al. Our findings are also similar to those of Deng et al. However, quality of port infrastructure significantly affects the logistics performance of a country. Similar to Hausman et al. Most of the studies that foresaw diminishing impact of seaports on economy emphasised employment generation within ports Gripaios and Gripaios, ; Kinsey, ; Jung, However, Helling and Poister mentioned that ports that retain direct port-related employment lose their ability to compete for cargo, which leads to a lower number of jobs in the long-run.

Economic development is associated much more with the long-term capability of a port to attract more customers while creating and retaining employment and income Helling, Therefore, if the quality of port infrastructure is not improved continuously, it may have a substantial adverse impact on the economy of a country. Seaborne trade partially mediates the impact of port infrastructure quality and logistics performance on economic growth in developing countries.

Portugal-Perez and Wilson found that the impact of transport efficiency a component of logistics performance on export performance decreases as the economy becomes richer. Similarly, the present study found that logistics performance has a higher impact on seaborne trade in developing economies than developed ones. For developing economies, we also found that quality of port infrastructure positively affects logistics performance; better logistics performance yields higher seaborne trade, and higher seaborne trade yields economic growth. Therefore, policy makers in developing countries should consider investing in quality improvement of port infrastructure and logistics performance, compared to larger investments in the building of new physical infrastructures Portugal-Perez and Wilson, Policy makers in developed countries should also consider maintaining high-quality port infrastructure, as this has a positive effect on logistics performance and national economy.

However, the reasons for the lack of any significant association between seaborne trade and national economy for developed economies could be: 1 the growth rates of GDP per capita compared to seaborne trade of the developed countries is lower than that of developing countries in general, and 2 developed countries are service-based economies and the role of seaborne trade is often one-way imports , while developing countries tend to be more industry-based and trade plays a two-way role both imports and exports.

Overall, the findings of the study are consistent with the existing transport economics literature, which underlines the fundamental contributions of port infrastructure quality and logistics performance to the economic growth of a country. However, associations among the quality of port infrastructure, logistics performance and seaborne trade, and their effects on yearly growth of country economy, should be further examined using latent growth models.

It would be interesting for future studies to investigate the interaction effect between port size and economy classification. Investigation of the comparative economic impact of hub and gateway ports could also be considered. Finally, economic contribution of value added activities at ports e. Psychol Bull 3 — Banister D, Berechman Y Transport investment and the promotion of economic growth.