Operating in the Caribbean: a logistics perspective

Notes the various factors, e.g. increased domestic production costs, which have led many US firms to pursue production sharing efforts in overseas regions. Also that areas having attractive trade relationships with the USA have become particularly favourable locations for investment in production facilities catering to export markets. Cites the Caribbean Basin Initiative (CBI), established in 1982, as one trade agreement which has resulted in increased production sharing ventures due to liberal import‐export legislation. Notes, however, that these overseas facilities, traditionally are characterized by increased transportation costs and related logistics problems. Investigates the current logistics performance within the value‐added strategies of North American firms operating in the Caribbean Basin. A survey of corporate managers responsible for strategic business unit operations was conducted in order to understand better the relative importance of logistics related priorities and information gathering capabilities, the nature of production sharing within the CBI, and the logistics performance of the firms within this region. Discusses managerial implications and conclusions.