Yossi Sheffi outlines the characteristic “positive feedback loop” of logistics clusters development; how logistics clusters “add value” by generating other industrial activities; why firms should locate their distribution and value-added activities in logistics clusters; and the proper role of government support, in the form of investment, regulation, and trade policy.

Sheffi also argues for the most important advantage offered by logistics clusters in today’s recession-plagued economy: jobs, many of them open to low-skilled workers, that are concentrated locally and not “offshorable.” These logistics clusters offer what is rare in today’s economy: authentic success stories. For this reason, numerous regional and central governments as well as scores of real estate developers are investing in the development of such clusters.

What are the common characteristics of all high-impact disruptions?

• Can companies prepare without knowing the type of disruptions they may face?

• How should companies maintain lean operations, which aim to reduce redundancy, without increasing vulnerability?

• Are intentional disruptions fundamentally different from accidents and random phenomena?

• How can disruptions be detected when so many simultaneous events are taking place in the normal course of commerce?

• How can a company build in flexibility so that it can be resilient?Should companies always prefer multiple suppliers to single-sourcing?

• What new risks and rewards affect collaboration in this new world?

• What is the role of corporate culture in resilience?

• How can security investments support the main mission of the enterprise? Can they be cost-justified?

Professor Sheffi sheds light on all these questions and more in a call for action based on the experience of many companies – those who did well in the face of disruptions and those who faltered

In this talk Yossi scans trends that will shape supply chains in the future, like 3D manufacturing, Omni cannels, the sharing economy, and long term trends such as aging, global warming, and urbanization, among others.

(Yossi has delivered this talk at industry conferences and specifically for companies.)

Sustainability is a supply chain issue and manufacturers have limited ability to influence it. Until consumers will agree to pay more for sustainable products, companies cannot be expected to take big initiatives. The fact remains that governments and communities are more concerned about jobs and economic development than they are about the environment. However, Yossi Sheffi argues there are three main reasons to invest in sustainability:

• Some activities will cut costs

• Some level of commitment is required to fend off NGO and media attacks

• Companies might want to hedge in case the market changes

The main message is that while developing more sustainable products can be very good for business, especially when selling in the B2B market, most companies should stick to incremental initiative in their own operations and supply chains.