- About project
- Results and Awards
- Affiliate Programs
- International services
Tatiana Rodkina, doctor of economics, full professor
State University of Management, Russia
Championship participant: the National Research Analytics Championship - "Russia";
The feature of this paper is an attempt of synthesis of logistics and cluster approaches to supply chain management.The authors cited the Kaluga Region as an example and examined the features of formation and development of transportation and logistics cluster. According to the analysisthe authors conclude that creation of transportation and logistics cluster is ultimately aimed at solving socio-economic problems within the cluster.
Keywords: cluster, transportation and logistics cluster, supply chain structure, socio-economic problem, logistics infrastructure, logistics centre.
In today's world, new management approaches assume a direct impact of business participants on regional economic development through the creation of special conditions and forms of entrepreneurship. One of these approaches, which allows to form complex economy of regions, is a cluster approach.
One should note that the cluster concept was introduced by Michael Porter in The Competitive Advantage of Nations to show competitiveness not only for individual companies, but also within countries as well as across national borders. 
According to Porter, clusters are geographic concentrations of interconnected companies and institutions in a particular field. This consists of linkages and complementarities such as: suppliers of goods and services, infrastructural supplies (e.g. transport/communications), customers, manufacturers of complementary products, companies using similar skills, expertise, and technologies; as well as institutions like universities, standard setting bodies, advice, training and education providers, trade associations, and information and research bodies, etc. Geographical extent of the cluster can vary from one city or state to a country or even a number of neighbouring countries.
One of the distinctive and interesting things about these clusters is that they comprise in their supply chains and networks, small and medium enterprises in the main; and thus as an economic model present an interesting challenge to large firms.
In addition to this point we want to stress that clusters promote both competition and cooperation. They comprise formally autonomous enterprises that compete within a market framework e.g. enterprises directly competing or those indirectly competing in a supply chain, but they also collaborate in some respects for mutual advantage, and the institutional context usually helps establish the trust necessary for this to take place, as well as providing a supportive context for skill development, knowledge bases, and so on.
One must admit that today the concept of clusters is used as a key element of the economic development strategies in many countries. For example, Danish, Finnish, Norwegian and Swedish industries are fully clustered. Clusters in Germany (chemistry and engineering), in France (food production, cosmetics production), Singapore (petrochemicals), Japan (automotive) are successfully operating.
One should emphasize that the cluster approach also considers an industry value chain, but it focuses on geographicconcentrations of interconnected companies and their interactions. In particular, it concentrates on the synergies between these enterprises, including those between firms in different segments of the value chain. As a result of this geographic focus, the cluster approach does not always focus on the entire value chain but on core and supporting companies in specific locations. Thus, clusters are organized as a system of flows, a system of supply chains. On this basis it is advisable to apply the well-known and proven logistics technologies to cluster systems management. Indeed, the evolution of logistics concepts has reached the peak of its development. Currently, a powerful methodological apparatus is developed and helps to analyze and design rational streaming processes at all stages of the upstreaming and downstreaming of the material, information and financial flowsthrough the logistics supply chain. First of all, we mean methodologies for supply chain management. It is the integration and coordination management of complex economic facilities, connected by common upstream and downstream flows of products, services, finance, and informationthat will provide a synergistic effect both in the economic and social spheres. In addition, management of logistics systems at a meso level is a good basis for clustering commercial facilities across the Russian Federation. An attempt of synthesis of logistics and cluster approaches to supply chain management in order to obtain the highest effect in the economic and social spheres of the large region is the essence of this paper.
First of all, it is important to understand the meaning of the transportation and logistics cluster. Transportation and logistics clusters are industry clusters, the final product of which are transportation and logistics services in the cargo sector, the passenger sector, or both the above sectors.
It needs to be said that having a high level of development, territorial transportation and logistics clusters serve not only local needs in freight traffic and mobility, but also long-distant, interregional and international transportation.
Analyzing the works devoted to the concept of cluster development, let us point out the following factors contributing to development of regional transportation and logistics clusters:
-economic power of the region,
-the degree of development of the local (regional) infrastructure,
-advantage of positioning the region in relation to the national and international transport corridors.
Obviously, the purpose of forming a logistics cluster is the involvement of competitive advantages of a certain area by sharing the interrelated activities of common resources, facilitating access to innovative technologies, mobilization of tangible and intangible assets and the reduction of transaction costs of interaction by increasing trust among the cluster members.
Logistics cluster is formed to manage the chains from raw material suppliers and manufacturing companies to consumers, interacting with each other within a single value chain and increasing logistics capacity in a certain area, that certainly contributes to the development of the area.
It is worth mentioning here that logistics clusters are formed at the intersection of the main cargo flows and combine many relevant facilities. Let us try to design a typical structure of a logistics cluster.
A logistics cluster structure is formed by organizations and enterprises connected by common material, information, service and financial flows.
As a rule, logistics cluster includes:
-market entities forming, transforming and absorbing the material flows (producers, consumers, commercial intermediaries);
-transport companies, representing land, water and air transport;
-warehouses, distribution centres and terminals; institutional bodies (Ministry of Transport, Ministry of Finance, the Customs Control Committee, sanitary-epidemiological and veterinary surveillance, etc.);
-support specialists (financial institutions, insurance companies, research institutions, training centres for training and retraining personnel, consulting and analytical organizations, marketing organizations);
-organizations providing related services (vehicle maintenance and repair, road construction companies, service organizations).
Many people tend to believe that logistization of the Russian regions is developing rather slowly, there are many administrative barriers, many development problems, such as a lack of investment, poor, mentally and physically worn out infrastructure, lack of established 3PL market, lack of qualified personnel, lack of a regulatory framework, the absence of reliable statistical reports. In Russia, because of the scale and the uneven development of the regions, there are always some difficulties, but there are considerable improvements in some areas. In our opinion, a classic example of the system (or we can even say logistics) approach to solving socio-economic problems of modern Russia is the Kaluga Region. Let us consider this region and examine the features of formation and development of transportation and logistics cluster as an example of the new technology of socio-economic governance within the logistics supply chain.
The Kaluga Region in recent years has been actively developing. The region relies on its internal resources, uses its own investment, innovation and human resource potential.
The Kaluga Region government decided to set up several industrial zones in the region. These areas must meet a number of logistical requirements: proximity to consumer markets, supply of raw materials, availability of transport interchanges, telecommunications, qualified personnel.
One of the most well-known investment projects in Kaluga is automotive manufacturing company Volkswagen. The company is located in the industrial area, with the total area of 1000 hectares, where the plant, support services, manufacturers of automotive components are located. Also in Kaluga plant Volvo-Renault is built with a capacity to 15,000 trucks a year. In addition, there are such automakers as French automaker PSA Peugeot Citroen and Japan's Mitsubishi Motors. Automotive corporations choose the region for its future activities, by the possibility of using local personnel in the manufacturing. On the scope of weak linkages between labour market and education in Russia, after automobile manufacturers emergence in the Kaluga Region it was decided to train future employees in the automotive department in Kaluga branch of MSTU, that has contributed to the balance between economic and social objectives.
Besides, these are other large-scale projects in Kaluga. There is a Belgian «Bosel» producing emission control (exhaust) systems for cars. Industrial zone Vorsino, 80 km from Moscow, is actively developing. The factory of Nestle Purina PetCare for production of animal food is built there. Factory SAMSUNG is being built. In Obninsk Finnish company LTM Company Oy, a producer of building materials, is being built. More than that, there are other no less important and meaningful projects in this area.
In this context we should also mention the transport accessibility of the Kaluga Region. Kaluga is located in the European part of Russia. The distance from Kaluga to Moscow is 190 km. Proximity from Kaluga to Moscow is an important advantage. Kaluga is a major transport hub. The transport complex of the region is represented by roadway, rail, river and air options. The main highways connect Kaluga with a number of important cities in central Russia: Moscow, Tula, Bryansk, Orel. The Kaluga Region has a high transport capacity both interregional and local. Developed network of railways and highways connects industrial areas and transit links connect central Russia with Europe, St. Petersburg and the Volga Region.
To modernize transport infrastructure, it was decided to establish a high-speed rail line for an express train that connects Moscow and Kaluga, create local transport infrastructure (public transport, local capillary road network, interchange points, road transport corporations) and the airport complex "Kaluga" as a transit airport for international and domestic flights.
It is clear that creation of transportation and logistics cluster is ultimately aimed at solving socio-economic problems within the cluster. Let us turn our attention to the main socio-economic indicators of the Kaluga Region. (See Table below) 
Table Main Socio-economic Indicators
On January 1, 2011
thousand square km
On January 1, 2011
Gross regional product
% over corresponding period of previous year
Natural increase / decrease
per 1000 population
Migration increase / decrease
Per capita income
Average nominalsalary of employeesbyeconomicactivity
Arrears of wages
On August 1, 2012
Registered unemployment rate
as % vs economically active population
Dwelling houses commissioning
% over corresponding period of 2011
Index of industrial production
% over corresponding period of 2011
Investment in fixed assets
1st quarter of 2012
% over corresponding period of 2011
% over corresponding period of 2011
On the basis of the main indicators of socio-economic development of the Kaluga Region, we can draw the following conclusions:
1. The region's economy is developing steadily: industrial production is growing, in attracting investment the Kaluga Region competes with the Moscow, Nizhny Novgorod and Tula Regions.
2. Social situation of the population has improved significantly: real income of the population is growing annually, that leads to well-being of people.
3. Inconnection with creation of new jobs, the unemployment rate falls.
4. The development of education creates a balanced system of application of labour.
5. Further growth of the regional economy will require attracting more resources, especially labour, including skilled labour, that will reverse the population decline by creation of favourable conditions for labour migrants.
6. Housing sector development and affordable housing provision will attract personnel from other regions.
7. Measures against reduction in the outflow of the city’s population and measures to attract and retain migrants arriving in the city are taken, that will definitely contribute to the solution of demographic problems.
It is reasonable to stress that the socio-economic policy in the region requires the creation of an adequate control system.
It goes without saying, creation of logistics infrastructure, transmodal transportation centre and logistics development will play an important role in stimulating economic growth and high-tech adoption.
Currently, one can note the following changes in management system of the region:
1) Sukhinichi, a city of the Kaluga Region, is going to be developed as a logistics centre. It is located perfectly. 5 railway routes from different directions converge on Sukhinichi. M3 Motorway goes through it as well.
2) There are several areas of municipal subordination, with the total area of 520 hectares, here cargo terminals can be built. The conditions allow to create multimodal storage terminals. According to railway experts, there is no better logistics centre in central Russia than Sukhinichi. Putting it into action will make it possible to redirect freight traffic flows. About 20% of goods, which are going now to Moscow, could be distributed by logistics centres in Sukhinichi. Then Moscow would breathe.
3) Transportation and logistics centre "Sukhinichi" is an object of terminal and warehouse infrastructure. It has interregional importance and performs the functions of a regional distribution.
To sum up, we would like to point out that project implementation of building several automotive assembly plants and manufactures of automotive components, electricity and auto interior materials will attract to the region not only suppliers of automotive components, but also service providers, and firms in related industries. The provision of transportation and logistics services to the clients of other areas, regions and countries will increase local companies’ profits and tax payments to local budget. In this case, transportation and logistics cluster is included in the industrial core of the Kaluga region’s economy and contributes to the regional competitiveness.
Below we will give a general supply chain structure of automotive manufacturing company based on transportation and logistics cluster in the Kaluga Region. (See pic. below)
The arguments given above prove the following statements:
1) Creation of transportation and logistics clusters requires a separate study of the structure of supply chains of similar products within them and definitely it deserves closer attention.
2) The design of logistics supply chain structure is focused on providing for socio-economic needs of population within transportation and logistics cluster.
3) There is a systematic relationship between goals and objectives of transportation and logistics cluster and logistics supply chain within the cluster.
1. Porter Michael E. The Competitive Advantage of Nations. – 1998. – P. 896
2. Federal State Statistics Service - gks.ru