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

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.