Manufacturing in a Peripheral Location: An Assessment of the Logistical Penalties

In terms of logistics, manufacturers located in peripheral areas are generally considered to be at a disadvantage. Surveys of Scottish manufacturers suggest that any logistical disadvantage is likely to stem more from inadequacies in the quality of transport services than from higher movement costs. The paper attempts to explain why manufacturers in peripheral areas do not incur a significant transport cost penalty and examines the various ways in which their international transport links can be deficient. Little evidence can be found to show that these manufacturers compensate for the greater length of their supply and distribution links by carrying larger inventories.