SETZ logistics models and system framework for manufacturing and exporting large engineering assets

  • Authors:

  • Charles V. Trappey;Amy J. C. Trappey;Gilbert Y. P. Lin;W. T. Lee;Ta-Hui Yang

  • Affiliations:

  • Department of Management Science, National Chiao Tung University, 1001, University Road, Hsinchu 30013, Taiwan;Department of Industrial Engineering and Engineering Management, National Tsing Hua University, 101, Sec. 2, Kuang Fu Road, Hsinchu 30013, Taiwan;Department of Industrial Engineering and Engineering Management, National Tsing Hua University, 101, Sec. 2, Kuang Fu Road, Hsinchu 30013, Taiwan;Service Systems Technology Center, Industrial Technology Research Institute, 195, Sec. 4, Chung Hsing Road, Chutung 31040, Taiwan;Department of Logistics Management, National Kaohsiung First University of Science and Technology, 2 Jhuoyue Road, Nanzih, Kaohsiung 81164, Taiwan

  • Venue:
  • Journal of Systems and Software
  • Year:
  • 2013

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Abstract

Given the dynamic and increasingly competitive nature of international commerce, manufacturing companies must plan global logistics operations for sustainable competitive advantage. Many enterprises build collaborative manufacturing networks across multinational regions to reduce production costs and gain access to new and often unfamiliar markets. Recognizing the strategic importance of globalization, government agencies are developing Special Economic Trade Zones (SETZ). These zones are regulated industrial districts which encourage manufacturing by offering incentives such as new logistic designs linked with the latest information technologies. The objective of this paper is to analyze and design SETZ logistics hub models and system framework for linking manufacturers. By defining the characteristics of the different types of specialized trade zones, and briefly discussing the older types of trade models that are no longer competitive, this research uses the case of a Taiwan power transformer manufacturer to analyze the supply chain logistics processes for manufacturing and exporting large engineering assets within a SETZ. The logistics models and information system framework developed provide a general reference for other governments, companies, and industrial sectors that intend to design export-oriented industrial parks incorporating IT-centric and globally oriented SETZ techniques.