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

Charles V. Trappey, Amy J.C. Trappey*, Gilbert Y.P. Lin, W. T. Lee, Ta Hui Yang

*Corresponding author for this work

Research output: Contribution to journalArticle

4 Scopus citations

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.

Original languageEnglish
Pages (from-to)1797-1805
Number of pages9
JournalJournal of Systems and Software
Volume86
Issue number7
DOIs
StatePublished - 1 Jul 2013

Keywords

  • Large-scale engineering assets
  • Logistics model
  • Special economic and trade zones

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