This document provides a strategic analysis of Wakefield's logistics and distribution sector, identifying strengths and opportunities while also noting challenges. It finds that Wakefield has established itself as a major northern logistics hub, though official employment figures underestimate the sector's size. Recent trends like e-commerce and demand for returns management are opportunities. While the area has many large sites and a skilled workforce, skills shortages and staff retention pose threats if not addressed. The report recommends promotional, educational and collaborative initiatives to strengthen the sector and address barriers to growth.

1. Wakefield’s Logistics and
Distribution Sector: A
strategy for supporting the
sector’s development
Mick McKigney
Economic Development Services
Wakefield Council
July 2015

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Contents
List of Figures ....................................................................................................................Page 3
Introduction ......................................................................................................................Page 4
Report Aims............................................................................................................Page 4
Summary...........................................................................................................................Page 5
Wakefield’s Logistics Sector..............................................................................................Page 6
Background.............................................................................................................Page 6
Key Trends in Logistics ...........................................................................................Page 9
e-Commerce, Data Tracking and Reporting……………………………………………..………..Page 9
Data - A Big Issue……………………………………..………………………………………………………Page 10
Making Things Differently………………………..……………………………………………………….Page 10
In Summary……………………………………………………………………………………………………….Page 12
Recent Trends in the UK and the City Regions ...............................................................Page 14
The Leeds City Region ..........................................................................................Page 14
Wakefield as the Leeds City Region Logistics Hub...............................................Page 14
Wakefield Sector SWOT..................................................................................................Page 14
Strengths………………………………………………………………………………………………………..Page 14
Weaknesses..........................................................................................................Page 16
Opportunities…………………………………………………………………………………………………..Page 16
Threats………………….…………………………………………………………………………………………Page 17
Comparisons and Competitors……………………………………………………………………………………Page 17
Case Study: The Logistics Cluster of Zaragoza .....................................................Page 18
Barriers to Growth ..........................................................................................................Page 18
Prospects for the Sector's Growth in Wakefield?...........................................................Page 19
Case Study: Dortmund, Germany..........................................................................Page 21
Conclusions .....................................................................................................................Page 22
Recommendations for Action…………………………………………………………………………….………Page 23
Glossary...........................................................................................................................Page 27

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List of Tables and Figures
Item Page
Table 1: Sector Definition 6
Table 2: Summary Statistics for the Wakefield’s Logistics Sector 7
Table 3: Summary Statistics for the Wakefield’s Logistics Sector 7
Figure 1: Geography of the Wakefield’s Logistics Sector 8
Figure 2: The Distribution of Employment in Wakefield’s Logistics Sector 8
Figure 3: Traditional Efficient Consumer Response Supply Chain Model 12
Figure 4: The Modern Supply Chain Model 13
Table 4: Wakefield District’s Industrial & Logistics Units 15
Figure 5: Wakefield’s Industrial & Logistics Property 2015 15

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Introduction
This paper is essentially a brief analytical synopsis of the strengths and weaknesses of
Wakefield District’s logistics and distribution sector and an outline of a series of proposed
actions to support the sector’s continued growth in Wakefield. It does not consider passenger
logistics, and lacks survey data on the labour and skills needs of local firms.
It focuses on the logistics and distribution activities within the local economy rather than
providing a more systematic and broader consideration of the supply chain sector as a whole.
(Supply chain initiatives for the locality will be the focus of further work within the coming
months.)
Accordingly this piece will provide a short and sharp scoping report on logistics highlighting key
issues in the sector and proposing a number of initiatives to tackle barriers to growth as well as
potentially attract additional activity to locality.
The key message of the report is that Wakefield is the UK’s pre-eminent northern logistics hub
possessing both the depth and range of upstream and downstream services in the sector to
satisfy current and new firms. There is a clear logic to promoting Wakefield as a northern
logistics cluster:
1. The sector’s noted job creation capacity and ability to replace employment in declining
or shrinking sectors;
2. Logistics is less susceptible to being competed away or to “off shoring” to other
countries;
3. The sector can serve as infrastructure for a range of other industries and matches well
with Wakefield’s industrial strengths particularly around food and drink activity as well
as non-food third party logistics specialisms; and
4. Logistics is not dependent on a single activity or industry.
This is based on strong evidence of the appropriateness and timeliness of such an approach
from insights gained from case studies of Zaragoza, Spain and Dortmund, Germany.
In this Wakefield possesses a range of key advantages for logistics activity around its
geographical position, a wealth of sites and premises, a skills pool and supply chain able to
support the sector’s continued growth.
However, sustaining these advantages requires medium and long-run issues to be tackled,
notably such as:
 Difficulties in recruiting and retaining staff;
 Specific and widespread problems in finding and keeping HGV drivers;
 Difficulties in finding skilled staff and work ready staff;
 Problems in training staff; and
 Bottlenecks in the take-up and implementation of new technologies.

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Over the medium to long run it is likely that skills and labour market issues will worsen if
nothing is done. A series of measures are suggested, building on past successes as well as
existing good practice of local and national logistics firms including the following headline
initiatives:
1. Market and promote the Wakefield district as the UK’s leading northern logistics
cluster (a key logistics centroid);
2. Research and scope a segmented marketing campaign targeting particular activities,
notably food and drink manufacturers and distributors plus non-food specialist third
party logistics activities, and specific firms;
3. Highlight and promote Wakefield’s comparative advantages and particularly key sites in
the district to the industrial and logistics sectors and businesses both within the UK and
internationally;
4. Work with the Leeds City Region’s other enterprise partnerships, and agencies (e.g.
UKTI) and businesses (e.g. ports, airports, waterways) to enhance the logistics sector
offer within and into the district;
5. Develop a logistics forum chaired and driven by the industry;
6. Work with businesses on individual business parks and industrial estates to resolve
congestion, and traffic flow problems whether through green transport initiatives,
where appropriate traffic control orders, and via encouraging business collaboration on
the sites (e.g. sharing parking, warehouse or other transport resources); and
7. Promote the adoption of best practices via business briefing events, and other forms of
support, specifically around logistics and distribution themes;
8. Encourage more apprenticeships into the sector as a means of securing future talent
and of raising the skills profile;
9. Encourage firms with turnover and retention problems for HGV drivers to adopt a
young apprentices approach taking the apprentice up through the driver hierarchy
from van to class 1 HGV driver;
10. Raise the profile of the sector with local schools and colleges encouraging young people
into placements, internships and careers in the sector;
11. Encourage firms to adopt and implement ISO9001 as a means to creating systems that
raise standards and good practice procedures within firms; and
12. Support initiatives that help local firms to work more closely with higher and further
education institutions as a means to deepen their technical skills base and capacity to
innovate or adopt innovation.

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Wakefield’s Logistics Sector
Background
The period 2000-2013 saw a phenomenal growth in Wakefield’s logistics and distribution sector
with the creation of thousands of jobs. Wakefield’s story as one of the UK’s leading job growth
stars of the 2000s (creating over 25,000 jobs) was in essence also an account of its rise as a
major logistics and distribution hub. In the period 2000-05 Wakefield’s logistics employment
base almost doubled to 14,000; second only to Hillingdon in terms of absolute increases.
However, detailing the picture of job growth and levels in the sector is not straightforward.
Official figures for the logistics and distribution underestimate the strength of the sector in
Wakefield. Typically the sector is defined as the following activities (as per the ONS’ 2007
Standard Industrial Classification codes):
Table 1: Sector Definition
SIC2007 Definition/Description
4600 Wholesale trade, except of motor vehicles and motorcycles
4940 Freight transport by road and removal services
4950 Transport via pipeline
5000 Water transport
5120 Freight air transport and space transport*
5210 Warehousing and Storage
5220 Support activities for transportation
5310 Postal activities under universal service obligation
5320 Other postal and courier activities
*Freight air transport – although included in the logistics definition figures from the Business
Register and Employment Survey for 2013 shows no local employment in this activity.
However, SIC based searches of ONS data will typically exclude major segments of district-
based activity that is clearly logistics and distribution focussed. Most of the activity on Dale
Lane, South Kirkby (e.g. Next, Asda, Superdrug, etc) is logistics-based; similarly activities on
Normanton Industrial Estate (such as Asda, IPL, DHL, NHS Logistics, etc), as well as at Tuscany
Park, Normanton (e.g. Warburtons), and Junction 41 (Morrisons, YPO, etc) are primarily
distribution oriented. Again the basic SIC definition of the sector would also exclude TK Maxx’s
major warehouse and logistics operations in Normanton. Thus the official data solely based on
the above SIC definition will grossly underestimate the strength of logistics and distribution
activity in Wakefield District. (At a conservative estimate the 9,500 to 10,000 jobs involved in
logistics these locations add to the BRES tally noted below.)

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Table 2: Summary Statistics for the Wakefield Logistics Sector
Industry (by SIC 2007)
2009 2010 2011 2012 2013
46: Wholesale trade, except of
motor vehicles & motorcycles
7,597 7,872 7,588 7,370 7,041
49: Land transport and transport
via pipelines
3,015 2,344 2,797 2,070 2,561
52: Warehousing and support
activities for transportation
4,316 6,590 9,626 9,450 10,066
53: Postal and courier activities 2,784 2,644 1,547 1,263 1,320
Total 17,713 19,455 21,559 20,157 20,990
Source: Business Register and Employment Survey, ONS Crown Copyright Reserved [from Nomis, May 2015]
As noted above the BRES data seriously understates the strength of logistics activity in the
district. Notwithstanding this Wakefield stands out as the prime location of logistics and
distribution employment within the Leeds City Region as highlighted in Table 3 below, with
measures of geographical concentration showing higher levels of intensity in logistics activity
across the board.
Table 3: Comparison of Wakefield and LCR Logistics Sector Statistics
Industry (by SIC 2007) 2009 2010 2011 2012 2013
number number number number number
46: Wholesale trade, except of
motor vehicles & motorcycles
Wakefield 7,597 7,872 7,588 7,370 7,041
Leeds 61,400 59,100 61,500 57,200 56,500
Wakefield % of LCR 12% 13% 12% 13% 12%
49: Land transport and transport via
pipelines
Wakefield 3,015 2,344 2,797 2,070 2,561
Leeds 28,300 24,400 29,300 25,400 28,700
Wakefield % of LCR 11% 10% 10% 8% 9%
52: Warehousing and support
activities for transportation
Wakefield 4,316 6,590 9,626 9,450 10,066
Leeds 14,400 19,000 26,600 22,800 24,400
Wakefield % of LCR 30% 35% 36% 41% 41%
53: Postal and courier activities
Wakefield 2,784 2,644 1,547 1,263 1,320
Leeds 12,600 12,300 13,700 10,200 10,600
Wakefield % of LCR 22% 21% 11% 12% 12%
Total Wakefield 17,713 19,455 21,559 20,157 20,990
Leeds 116,700 114,900 131,200 115,800 120,300
Wakefield % of LCR 15% 17% 16% 17% 17%
Source: Business Register and Employment Survey, ONS Crown Copyright Reserved [from Nomis, June 2015]
Figure 1 below highlights Wakefield’s motorway corridors and the key sites where most of
these jobs are concentrated and are likely to grow in.

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Figure 1: The Geography of the Wakefield’s Logistics Sector
Figure 2 below shows a mapping out of employment clustering in the sector at a sub-ward level
(Lower Super Output Area, areas of approximately
Figure 2: The Distribution of Employment in Wakefield’s Logistics Sector

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Key Trends in Logistics
The logistics’ sector is at the forefront of technological change: both as a key consumer of
innovation as well as originating and leading new trends. A series of technologies trends are
fuelling further transformation as e-commerce, data mining and new ways of product
fulfilment reshape relationships with customers and force adjustment in the retail sector.
Major changes in the retail sector will continue to affect the structure of the logistics and
distribution sector.
In 2008 John Lewis introduced ‘click and collect’ which has become its most cost effective way
of retaining customers and fulfilling orders. Now over two-thirds of the UK’s multichannel
retailers use the option and it is a key aspect of delivering customer satisfaction and cost
effective delivery.
This contrasts with home delivery options where many retailers can and are losing money.
(Morrison’s late entry into online ordering was reported to see them losing £10 per delivery.)
As Mark Simpson, Asda’s Vice President of Strategy and Central Retail Operations recently
noted the last mile of delivery contributes 28% of the cost and where a retailer’s reputation is
often most at risk (presentation at Leeds Beckett’ Retail Innovation Symposium May 2015).
However, as the sections that follow highlight, these are unavoidable challenges that are set to
accelerate and dominate.
E-Commerce, Data Tracking and Reporting
Although the UK relatively lags in the speed and availability of broadband infrastructure it is a
world-leader in terms of the volume of internet-based sales. The UK is the world’s most
sophisticated e-commerce markets with the highest penetration of e-based sales of the OECD
countries, and spending £91bn online in 2013 (IMRG Capgemini eRetail Sales Index, 2014).
In 2010 the internet economy accounted for over 8% of UK GDP, a higher share than any other
country in the G20 with rapid rises expected to take this to over 12% by 2016, with the internet
now accounting for around a quarter of our economic growth (Policy Exchange, 2012). Within
the next five years a third of retail sales are expected to be internet-based (the Centre for
Retail Research, 2014). This will create challenges as well as opportunities for what has been
called the fulfilment sector.
A key challenge will be for established retailers to develop or commission systems that get their
products to the customer quickly and cheaply but which are also able to deal effectively and
efficiently with returns. Fashion and non-food items are particularly prone to high levels of
returns, typically from 25% to 40%. This is where retailers can lose money, brand reputation
and customer satisfaction. Many retailers are outsourcing their e-fulfilment and returns
management to third party logistic specialists. Even companies with massive incumbent
economics of scale such as Barnsley-based fashion giant Asos outsource not just their deliveries
(to DPD) but more importantly their returns to specialists (in this instance chiefly Clipper
Logistic of Leeds).
Given market trends the latter is an area where there is likely to be significant expansion and
one which Wakefield could capitalise on. In this regard Wakefield has much to offer both

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qualitatively and quantitatively with its particularly strong offer on medium-sized units (this is
defined as those of 10,000 to 50,000 square feet; of which there are 52 units totalling
1,124,000 square feet); an issue is revisited in the SWOT analysis below.
This is further accentuated as firms outsource their distribution and warehousing operations as
a whole. Thus Chinese white good and electronics manufacturer Hisense which previously ran
warehouses next to Asda in Normanton now uses Castleford-based Viamaster to run their UK
distribution operations right from shipping in via Felixstowe to getting their product to
resellers’ warehouses or retail outlets.
Sub-contracting key logistics functions is also evident within major logistics companies.
Logistics companies on contract will commission orders from lower cost operators and not just
in-house solutions. Thus we see the larger internationally recognised brand name logistics
carriers using other carriers, subcontracting contract work that they have gained to third
parties. These in turn can and do further subcontract and this can make it hard for the original
contractor to control and manage the overall contract. So we have German and French
Normanton-based logistics contractors using British transport contractors in the region to ship
to European mainland destinations. This is a clear reflection of the competitive mix and the
agglomeration of activities attracted to the region and the ability of operators to find a range of
supply options.
Data – A Big Issue
A new era of data rich connections confronts the modern Supply Chain Manager (SCM). An
almost limitless amount of information on tracking and the end consumer has become a reality
providing manufacturers with unprecedented insight and feedback (along the whole spectrum
of social media from product registration platform to twitter feedback) on specific products,
their lifespan, their imminent obsolescence and potential replacement. If and when the
product moves and where it ends up has given the supply chain manager the ultimate insight
into the product life cycle and the effectiveness of the supply chain and the customer’s
perception and use of the product.
Right from the original ecommerce order via rich data trails businesses are responding
intelligently to orders, to rationalise inventory and reap higher rates of return on fulfilling
orders. A shoe retailer’s inventory system can now monitor stock across stores and when a
customer buys shoes at full price on line they can then decide which store has the product and
is least likely to sell them at full price before their season is out. An algorithm then calculates
the extra cost of shipping against the projected markdown cost and decides whether it is better
to come from the shop or the warehouse.
This example reflects how supply and logistics managers now have real-time information on
stock location and levels and their movement from forklift to freighting to the customer signing
for the order. The entire supply chain increasingly revolves around new technologies that add
unparalleled levels of knowledge and intelligence about the performance and use of the
product, the customer and their preferences, and the customer’s experience and feedback.
Manufacturers and retailers have acquired insights and data on customers that have become
not only assets for themselves but also commodities for resale and cross marketing initiatives.

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Supermarkets can now data mine and predict from their customer’s shopping basket trends
and demographics when they might succumb to diabetes or other health problems and
potentially sell them other services or sell the data on. Retailers are not only sweating their
data assets but their logistics systems and infrastructures. Thus companies like Asda and Argos
now acts as a ‘click and collect’ point for ebay merchant sellers.
Technologies such as Enterprise Resource Planning (ERP), Radio Frequency Identification
Devices (RFIDs), GPS tracking, geo-fencing marketing, demand signal repositories and the rise
of the Internet of Things have (and continue to) revolutionised how businesses deliver goods
and services and how they plan for the future.
Increasingly businesses face the challenge of how best to maximise the use of, and benefit from
all this available information. They find themselves having to integrate different data streams,
manage and assure the quality of the data and from visualising and analysing it deciding on
which metrics are the most useful. This data and its analysis is providing organisations with
major competitive advantages. Both the volume and the range of new sources of data shows
no sign of peaking; quite the opposite in fact.
For example, the age of the Internet of Things is providing a vast array of data and control on
devices and also on services (web-enabled thermostats that can ensure individual rooms are
heated, etc). Companies can monitor trucks, generators, photocopiers and make interventions
to improve the service and information that their customers receive. Heavy goods vehicles are
also at the cutting of new technology developments. For example, Ericsson and Volvo are
collaborating to make the latter’s trucks more intelligent and efficient saving energy and
encouraging more and better interaction with corporate and individual customers. Truck’s on-
board technology is complementing the driver competency and the vehicle’s energy efficiency
and CO2 reductions as well as driver safer (proximity sensors and braking technology. These
technologies are all impacting on the organisation of the supply chain.
Making things differently
The first industrial revolution saw manufacturing move from small-scale mechanisation with
localised production systems to steam driven large scale and centralised mass production. The
second industrial revolution was synonymous with the rise of a new range of fast moving
consumer goods and alternating current electrical power systems. Highly automated
production processes made conspicuous consumption by the masses a reality with
decentralised and internationalised branch plants producing standardised products suited for
national and regional markets. The early 20th
century electricity age was synonymous with the
rise of foreign direct investment and development and shaping of the industrial estate.
Now another industrial revolution is upon us as internet protocol and software driven systems
allow decentralised, “as wanted, when wanted” delivery of products and services and where
the supply can and is often dramatically and drastically shortened. Software platforms are
allowing the ultimate analogue products of books to be bespoke produced and sent direct to
the customer. It is not just Amazon that is offering print on demand books but local SMEs. For
example, local printer Charlesworth has collaborated with a designer and using a web-based
application to print personalised books for individual children and sent direct to them.

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The dynamics of the digital economy are changing the structure of logistics systems conferring
competitive advantage on small companies that can specialise in good ideas and products. At
the other end of the spectrum there are the large businesses which have the power and the
technical capability to invest in technology integration vertically and horizontally incorporating
sales platforms, the packaging and handling of the products, data systems and logistics
operations. The Internet of Things is also allowing firms to link their equipment with other
services as well as generate data on the performance and use of their products, and manage
these to provide efficient post-sales services and aftercare.
In summary
The logistics sector is changing into an increasingly sophisticated data-driven service and where
it is at the cutting edge of a fundamentally digitally-based economy where people conduct vast
proportions of their real life economic, social transactions and interactions online. In this we
see a move away from traditional supply-chain models where the emphasis was on the
production of large volumes at least cost shipped in bulk for distribution via warehouses to
traditional retail outlets.
Figure 3: Traditional Efficient Consumer Response Supply Chain Model
In the modern dispersed and disaggregated supply chain the system is much more complex,
direct and ‘virtualised’, i.e. where the consumer links into a supply chain matrix via a number of
entry points to get the product they want, when they want with the fulfilment of that order
mediated by the networking platform acting as the relationship medium and clearing house.

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Figure 4: Modern Supply Chain Model - Virtualised

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RECENT TRENDS IN THE UK AND THE CITY REGIONS
As noted above the UK is the pre-eminent nation of internet shoppers, first amongst the
nations of internet shoppers. A sophisticated and highly effective UK wide structure of
fulfilment is evolving to satisfy final consumers as well as retailers. The development of these
model operations is giving leading firms an organisational and know-how advantages vis-à-vis
operators in other EU member states.
This puts the UK at the forefront of new trends and of trailblazing in ecommerce, big data
determined customer services and “internet-of-things” logistics developments. (Indeed,
companies like Walmart are using Asda to test and perfect ecommerce solutions.)
The Leeds City Region: Policies and Priorities
The Leeds City Region Enterprise Partnership has not highlighted the logistics sector as a
specific priority, instead it sees it as one of a number of sources of potential job growth and as
a function of supply chain support in industries such as manufacturing (chiefly, in the Leeds City
Region’s Strategic Economic Plan 2014, March 2014). As such the Leeds City Region has not
explicitly set out a regional offer as a logistics hub but it does note the importance of a number
of major sites in Wakefield as well as the overall connectedness of the region in terms of
suitability for logistics intensive activity.
As such Wakefield should take the lead in highlighting the benefits and opportunities of the
Leeds City Region as a location for logistics activity as well as chair or coordinate work on to
tackle the challenges facing the sector. Whilst it is not the subject of this report this should
include leadership on the LCR policy and project development with other region’s LEPs such as
the work instigated by Liverpool City Region on transportation initiatives for the northern
regions.
Wakefield as the Leeds City Region’s Logistics Hub
Wakefield’s geographical position and its transportation linkages provide it with the ideal
conditions as a competitive and logical location for logistics and distribution intensive activities
whether these be primarily manufacturing or retail chain focused. Clearly within the marketing
of the LCR as a whole it may be worth also partnering with other key logistics sites in
neighbouring local authority areas; for example and primarily Selby and South Leeds as part of
a broader emphasis on the M62 corridor and also M1/A1 axes.
A SWOT OF WAKEFIELD’s LOGISTICS SECTOR
Strengths
Wakefield’s geography was initially the key driver for the growth of the sector. A wealth of
large, flat motorway sites around the UK’s two most busy motorways attracted a series of
activities delivering fast moving consumer goods for the regional and national market. These
advantages include sites, labour, supply chain and services; as well as intermediaries and
intermediate services.
Wakefield still has a wealth of sites and premises that are highly suited for logistics intensive
activity. It has succeeded in both gaining a reputation as a suitable location as well as achieving

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significant investments in the sector over the past decade confirming its place within the region
as the preferred location for manufacturing with a strong logistics base.
This is set against the strong availability of premises suitable for manufacturing and logistics
activities within the Leeds City Region. The years 2013-15 saw a growing demand for logistics
property, with 2015 showing the sector “at its healthiest demand in over twenty years” and
predicted to be another good year (Lambert Smith Hampton, March 2015). DTZ and Lambert
Smith Hampton reports the industrial and logistics market is in a new phase of dynamism and
growth with record take-up, investment activity and a return to speculative build. Within the
UK Yorkshire and the Humber is a star player particularly in the availability and supply of
smaller as well as very large units. In this Wakefield is a key player, and arguably the most
important location in the North.
The table and figure below shows the range of offer for logistics businesses or those with major
distribution functions. Property sector analysts have noted the buoyancy of demand in these
size bands. Taken with the technological dynamics of the sector it is clear that Wakefield could
and should be targeting different segments and types of logistics operation.
Table 4: Wakefield District Industrial & Logistics Units
Definition Size Band No of units Total size (sq.ft)
Small Units ≤10,000 sq ft 108 341,401
Medium Units 10,001 – 50,000 sq ft 52 1,146,071
Mid Box 50,001 – 99,999 sq ft 5 338,278
Large Units/Distribution Warehouse ≥100,000 sq ft 18 3,438,354
Source: Wakefield Council Evolutive CRM System
(This follows the classes used in Lambert Smith Hampton’s Industrial & Logistics Market reports.)
Figure 5: Wakefield's Industrial & Logistics Property 2015
Using the UK’s 2007 Standard Industrial Code listings in Table 1 as a starting point a search and
cleanse of data on Bureau van Dijk shows over 900 companies active in the logistic sector
108 52 5 18
341,401
1,146,071
338,278
3,438,354
≤10,000 sq ft 10,001 – 50,000 sq ft 50,001 – 99,999 sq ft ≥100,000 sq ft
Small Units Medium Units Mid Box Large Units/Distribution
Warehouse
Source: Wakefield Council Evolutive CRM System, May 2015

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locally. This density of firms in the sector compares very well against other leading European
logistics clusters in places such as Zaragoza and Dortmund and particularly given Wakefield’s
relatively smaller size. (The latter are described in further detail in case studies below.)
The concentration of these businesses on key sites in the district (as per Figure 1 on page 7)
underlines opportunity to work with these businesses in a much more concerted way to hear
their concerns but also to support and stimulate their development in a fashion similar to that
being carried out in the German regional state of North-Rhine Westphalia and particularly
around Dortmund. In this regard the work that RCP21 led on J41, Foxbridge Way and
Normanton Industrial Estate which could and should be supported as a model of good practice.
The latter’s work stands out as comparable to the initiatives being carried out in Dortmund.
Weaknesses
The UK logistics sector has been typified by low skills. The sector has a weak skills base – a lot
of people who have only very basic minimal skills. Wakefield is a particularly notable in this
regard with core workforces frequently being below NVQ2 level. This can and will make the
adoption and implementation of new technologies slower and more problematic.
As the LCR SEP noted there are:
“continued labour market mismatches between the numbers of people training in
specific sectors and the number of jobs available in those sectors with an oversupply in
6 out of 9 sectors and an under-supply in Manufacturing; Transport and Logistics; and
Finance and Business Services”
Without interventions and actions these labour supply bottlenecks could stymie future growth
of the sector and are likely to be a key constraint in the development of the sector in
Wakefield. Furthermore, it is also clear that other European regions are doing much more to
support the development of their logistics sector strategically and operationally, and
particularly around linking their businesses to technological developments.
Opportunities
In essence Wakefield’s opportunities in logistics revolve around the strong availability of sites
complemented by its geographical advantages and sectoral strengths notably around
manufacturing activities such as the food and drink sector and the potential for attracting more
businesses in this and related activities.
As Table 4 and Figure 5 above show Wakefield has a wealth of premises across the board
covering small, mid, mid box and larger units. DTZ and Lambert Smith Hampton report strong
performance and prospects for the industrial and logistics sector and it would be logical to
promote the in-depth strength of the Wakefield offer.
In this respect a segmented marketing approach may offer compelling advantages, for
example, working with site agents to promote the larger premises to scale intensive
manufacturers and distribution entities and mid and mid-box sites and premises for smaller
specialist third party logistic operations. As the market upturn deepens there is a strong case

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for building this up as part of Wakefield’s USP and “point of difference” from other regions and
within the Leeds City Region.
Threats
Technological and organisation challenges are changing the face of retail as well as ushering in
new and very different trends in types of delivery and delivery points. The ‘last mile’ problem
(where most costs and problems are generated) together with GPS tracking and fulfilment
agents (whether the retailer or its courier) seeking more flexible delivery options may well shift
distribution away from massive warehouse type operations to smaller more flexible collection
points.
In addition there are the direct and straightforward challenges from the Enterprise Zones
across the regions which are obvious competitors that will try to capture the type of large scale
manufacturing and logistics operations that Wakefield has successfully attracted over the past
decade.
These twin pressures highlight the need for Wakefield to sharpen its offer in respect of sites
and to make more of its current strengths and opportunities of developing more profile for its
comparative advantages. Whilst certainly an emerging threat the Leeds City Region EZ has little
or no reputation as a logistics cluster and it would benefit more from strategic cooperation and
joint effort on a Wakefield lead and driven campaign pushing a Leeds City Region logistics
cluster. Furthermore, key sites in Wakefield such as Normanton and South Elmsall and South
Kirkby remain Assisted Areas where non-SME enterprises could be eligible for grant aid for new
projects.
COMPARISON AND COMPETITORS
The geography of the UK’s logistics sector shows a degree of regional specialisation using the
motorway linkages as hinge points to service major population conurbations. In the main
logistics centres or clusters typically do not compete against others in so far as they are
regionally contained systems that focus on servicing a hinterland or marshal product for
freighting to another market. The exception to this is the extent to which a particular
manufactured good can be made in one region that serves a larger regional, National or
international market. For example, a major manufacturing FDI might initially service a regional
market that then grows to cover a wider more international geography.
However, within regions there will be competing locations and options which as noted above in
the SWOT analysis include the Leeds City Region Enterprise Zone.
However, notwithstanding this it is worth considering Wakefield’s position against other
leading distribution centres across Europe that can be considered as models and benchmarks
of best practice in logistics. Below a number of exemplars are presented as two case studies
(on pages 17 and 20) as reference points to compare and contrast Wakefield’s comparative
advantage in logistics and also as a means to highlight some lessons that could be applied to
how Wakefield markets its locational advantages as well as point up some of the types of
leading logistics firms to target.

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Case Study: The Logistics Cluster of Zaragoza
Zaragoza, Spain is a typically centroid locational hub able to serve within 4 hours’ HGV journey time
approximately ⅔ of Spain’s total population and in a day’s truck travel time the bulk of the European
Union’s ½ billion people.
Zaragoza’s growth as a logistics cluster reflects a long-term commitment of the regional authorities
to focus on logistics-based activity as a primary focus for the local economy and the basis of its
comparative advantage and of deliberately broadening the industrial base of the region. In the early 1990s
the city of Zaragoza and region of Aragón agreed to develop Plaza Logistics Park, a 1,200 hectare (c.
3,000 acres) as “an area of strategic economic interest”. Opening in 2000 this is the largest logistics park
in the EU and at the centre of 7 related logistic developments that have made Zaragoza the first choice
for major logistics operations in Spain.
The initial boost to Zaragoza’s reputation and role as a logistics cluster was fish. Spain is Europe’s
leading consumer of fish and Zaragoza has become the hub for a global supply chain structure. Caladero
Spain’s top fish supplier opened a 59,000 m2 high tech plant where optical and X-ray scanning assures the
quality of the 60 different types of fish that 600 workers process for 1,200 fish retailers across Spain.
Caladero’s operations have attracted specialist suppliers such as US-owned Sealed Air Corporation
whose Cryovac trays exclude oxygen and thus help maintain fish freshness. Alicante-based Logifruit,
suppliers of fish trays have also moved there as a key supplier to Caladero.
The next big boost to the region’s profile on logistics was Zara’s owners choosing Zaragoza’s and
Plaza over Barcelona in 2002 as their key distribution hub. Inditex, the world’s largest clothing retailer
and owner of Spain’s most successful clothing business: Zara, has developed a production and retail
system renowned for its responsiveness and leadership in European fashion trends in which logistics is a
core competitive advantage. Zara has kept a Spanish manufacturing base which allows them to quickly
develop new designs (typically within 1-2 weeks) and deliver production from its giant Zaragoza
warehouses to its EU outlets within 24 hours and its global retailers (USA, Mexico, China, Japan, South
Korea, etc) within 48 hours. Zara made a virtue of vertical integration of its production and distribution
system in contrast to other successful clothing retailers that typically use third-party logistics specialists
for stores and e-fulfilment (for example, Asda uses Clipper Logistics for its George brand).
Zara’s Zaraogoza warehouse operations are a key asset in their ability to be flexible, strategic and
fast in responding to customer trends. Their systems demonstrate what is considered best practice in a
well-balanced push (in terms of design led branding) and pull (where actual daily demand drives stock
replenishment) production-retail supply chain.
The lessons of Zaragoza rise as Europe’s biggest and most successful logistics cluster are:
 Deliberate focus on logistics to broaden the industrial base and diversify away from over-reliance
on key sectors or businesses (e.g. GM’s major Opel plant);
 Long-range economic planning;
 Extensive private sector agreement on development;
 Broad public consensus on the mission; and
 Integrated infrastructure coordination.

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BARRIERS TO GROWTH
The key barrier to growth is labour and skills supply. Nationally and locally the sector has
benefited from the influx of East European workers, particularly from Poland. Nationally and
locally the sector’s growth would have undoubtedly suffered without access to this labour pool.
The workforces of the distribution functions of Asda, IPL, Card Factory, Next, and others have
all benefited from access to an influx of East European workers.
This has not been without its controversy as firms such as Forza, a company which has
undergone massive expansion on the back of a close relationship with Asda and IPL, have made
extensive use of EU workers to deliver contracts and gained negative publicity in the process.
The same has happened with Next’s major logistics operations in Dale Lane, South Elmsall
where significant concentrations of Polish workers have also attracted negative comment.
Skills for Logistics’ 2013 employer survey reported the sector’s management extremely
concerned by current and projected skill shortages. The now defunct agency summarised the
key issues as follows:
 Almost 600,000 additional workers would be needed in the sector over the next 6
years;
 81% of employers saw changes in legislation and governance as the major forces
propelling their workforces’ future skills needs;
 Two thirds of employers acknowledged the pressure to develop more sustainable
methods of working as a key driver for new skills development;
 Over three-quarters (77%) of employers said that job specific skills needed the most
development over the next 12 months; and
 Only 26% of businesses reported that their organisations were planning to move into
other areas of work in the future.
[Source: Skills for Logistics’ Employer Skills Survey 2013; published February 2014]
Over 20% of this will be down to the sector’s growth and the remainder will be ‘replacement
demand’ reflecting the composition of an ageing workforce. The biggest portion of the overall
demand will be for managers and technical specialists, who will require higher skill levels and a
much more sophisticated understanding of the requirements of global supply chains as well as
the specific conditions of new countries that they send to or take supplies from. The latter can
present persistent problems with some non-EU destinations such as Turkey and Russia
changing custom rules regularly and in what appears an almost ad hoc fashion.
The creaking labour and skills supply system in logistics points up the potential and need to
build better linkages between sources of supply as well as the intermediaries that can smooth
the transmission of talent into the sector. Given that apprentices tend to stick and stay within
workforces this is a clear way to attract and retain talent in the sector. Another aspect must be
to develop and enhance linkages with further and higher education institution particularly
around technical and STEM-based courses. The Leeds City Region’s European Structural
Investment Funds could have a role to play in this by supporting problem solving internships
and mini Knowledge Transfer Partnership projects. Apprentice and graduate attraction

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initiatives could contribute significantly in resolving the skills and managerial succession
problem identified above.
There is also potential to build up training and developing initiatives for the sector around
businesses in the export documentation and freight forwarding sector where the chambers of
commerce have been strong and where Mid Yorkshire Chamber of Commerce and Industry
could and should have a strong leadership role. MYCCI’s existing engagement with the sector
and their know-how of the grittier issues facing the smaller forwarders on skills, documentation
and compliance issues could help stimulate more up-skilling in the industry.
PROSPECTS FOR THE SECTOR's GROWTH IN WAKEFIELD?
There is a clearly defined geography to Wakefield’s logistic industry which draws on its site
advantages as well as its excellent business and industrial park connections around key
motorway network nodes. There are still sites available for development across Wakefield and
it is likely that these will be key locations for attracting a range of new and more diverse activity
in logistics (e.g. around new technology based and specialist services). Within this and notably
in the SWOT sections above a series of opportunities were identified around strengths
particularly and notably sites, the range of existing firms and the match of these advantages to
likely movers and shapers in the sector.
It is clear that there is going to be more development of logistics businesses in the UK as
suppliers and retailers adapt to a pervasive and growing trend towards click-based
consumption driven by ever increasing sophistication in the use and analysis of data. The non-
food sector and its use of specialist third party logistics suppliers will create further demand for
mid and mid-box sized units with excellent transportation connectivity. Wakefield should target
and reach out to leading third party logistics businesses with a clearly articulated offer of
support and assistance should be a priority. The latter should be part of a broader strategy of
articulating the opportunity of the region as a whole; of its role as a delivery platform for
servicing super-regional, national and international markets.
In the manufacturing and particularly the food and drink manufacture and supply support
sector there is likely to be continuing demand for larger scale units of the scale and
sophistication of facilities such as the Newcold cold storage plant at Newmarket. Desk top
research would help identify some of the “likely suspects” that have expansion or
diversification plans. Some recent KPMG work shows rising merger and acquisition activity in
the sector with increasing activity and investment in health food and “nutraceutical” products.
There are clear signs of such activity already impacting Wakefield. On 29th
April French
company Tereos acquired Normanton-based sugar manufacturer Napier Brown from Really
Good Food Company for £34M (Food Manufacture 29th
April 2015). Within weeks Really Good
Food Company was talking up growth prospects which would be partially driven by acquisitions
(Food Manufacture 1st
June 2015).
Both market segment areas are where Wakefield could and should usefully develop a joint
strategy and share the information and intelligence resources of the Leeds City Region’s inward
investment function. This would yield a series of segmented listings for both growth areas.

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Case Study: Dortmund, Germany
The logistics sector is seen as one of Germany’s future growth industries, and the Dortmund region has
placed itself as the key centre for the sector’s growth. Currently 7% of the working population are directly
employed in logistics (this is higher than the German regional average) and taken with other direct and
indirect jobs within the Dortmund logistics cluster this rises to 12%. Dortmund has seen over 3,500 new jobs
created in the sector in the last 6 years. The German regional state of North-Rhine Westphalia (NRW) is
promoting and prioritising the sector via its State Logistics Initiative.
Dortmund is a classic centroid location and even better placed than Zaragoza to service the EU’s ½
billion people within hours as well as move bulk freight through an exceptionally rich network of road, rail,
port and water transport corridors.
Dortmund has taken a strategic approach to the sector seeing it as not just low level warehousing jobs
but as at the confluence of a range of new technology based developments increasing the skills profile of the
sector and the growth of attractive career development opportunities.
The University of Dortmund is Germany’s leading higher education institute in logistics and the first
German university to develop a degree course in logistics. Dortmund also hosts the Fraunhofer Institute of
Material Flow and Logistics (Fraunhofer IML). Part of the 67 strong German system of Fraunhofer-
Gesellschaft, Europe’s oldest and strongest applied research centre the Fraunhofer IML was founded in 1981,
and currently has 190 staff as well as 250 post-graduates and graduate or diploma students, supported by
colleagues in workshops, laboratories and service areas. It is the foremost research centre in the EU on
logistics and covering materials handling, warehouse management, supply chain management, simulation
supported business and system planning and also traffic systems, closed loop economy, resources logistics,
building logistics, e-business, and the “Internet of Things”.
Primark has opened a major logistics centre in the region to service EU markets. Operated by DHL
Supply Chain at Mönchengladbach this 19,300m2 hanging garment racking and rail transport system warehouse
and dispatch centre carton-packs fashion garments and sends them to a score of stores across Western
Europe. It can store a total of 37,000 pallets.
Dortmund offers an exceptionally rich business support environment for logistics focused start-ups,
established small and medium sized businesses (the latter Germany’s classic mittelstand are a key source of
the country’s innovation and productivity dynamism) as well as inward investors. These include: e-port-
dortmund a business development and incubation accelerator; 3rd Wednesday networking club; LogSite
service for logistics companies including sites and premises, consultancy, HR, and construction; eLog Center
an e-logistics clearing house solution for SMEs; DiaLog an open innovation brokerage club where new e-
logistics companies cooperate on providing new technology solutions for traditional forwarders and freight
carriers; LogNetRuhr, a pan Ruhr Metropolitan Area umbrella initiative sponsored by NRW (and with ERDF
support) to make the area the European leader for high quality logistics services; Club of Logistics bringing
together senior managers in the logistics sector to discuss issues and raise the sector’s profile; LogIT-Club, an
IT networking club.
The lessons of Dortmund’s efforts to be the key European logistics hub are:
 Support and prioritisation of logistics by the regional state of North-Rhine Westphalia via its State
Logistics Initiative.
 A strong geographical (or centroid) and well-articulated offer;
 Strategic focus on logistics as a growth sector;
 Recognition of the strong role that technology is playing in the sector;
 Exceptionally strong and well-developed R&D support for the sector via the Franuhofer IML;
 Well-developed and in-depth education and training offer across all skills levels;
 A world-class offer of support across the sector’s breadth of activity;
 Coordination of initiatives on infrastructure integration.

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CONCLUSIONS
Industry analysts (e.g. Lambert Smith Hampton, March 2015) report the industrial and logistics
market is in a new phase of dynamism and growth with record take-up, investment activity and
a return to speculative build. Within the UK Yorkshire and the Humber is a star player
particularly in the availability and supply of smaller as well as very large units. In this Wakefield
is a key player, if not the most important location in the North for logistics.
It is also clear that the sector will see further and continuing impact of new technology which
will amplify as well as disrupt existing patterns of organisation and development. Assisting
firms to absorb new technology is in essence a skill issue. As University of Cambridge
researcher Maria Abreu has shown, a business sector’s capacity to adopt new technology is a
function of its workforce’s technical skill base. Thus stimulating the sector’s technological level
is about strengthening the capability of firms to absorb technology more readily and rapidly,
apply it innovatively, improve productivity and to further develop their technical skills base. In
this regard attracting higher skill workers up to and including graduates is vitally important.
Wakefield District has very clear comparative advantages for current and future logistics and
distribution businesses. There is also clear capacity for the sector to grow and particularly to
attract a new generation of locals into the sector. Marketing and promoting Wakefield as a
logistics cluster makes good sense and has a strong logic to it notably given:
1. The sector’s noted job creation capacity and ability to replace employment in declining
or shrinking sectors;
2. Logistics is less susceptible to being competed away or to “off shoring” to other
countries;
3. The sector can serve as infrastructure for a range of other industries and matches well
with Wakefield’s industrial strengths particularly around food and drink activity as well
as non-food third party logistics specialisms; and
4. Logistics is not dependent on a single activity or industry.
As Professor Yossi Sheffi (2012: Logistics Clusters, MIT Press) has noted regions such as
Zaragoza have really benefited from deliberately and systematically pushing a strategic
commitment to logistics as a growth sector. (Dortmund appears to be adopting a similar
approach.)
Such an approach could and would play to Wakefield’s strengths and in a very practical and
effective manner. Wakefield possesses a range of key advantages for logistics activity around
its geographical position, a wealth of sites and premises, a skills’ pool and supply chain able to
support the sector’s continued growth.
However, sustaining our advantages requires medium and long-run issues to be tackled,
notably such as:
 Difficulties in recruiting and retaining staff;
 Specific and widespread problems in finding and keeping HGV drivers;
 Difficulties in finding skilled staff and work ready staff;

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 Problems in training staff; and
 Bottlenecks in the take-up and implementation of new technologies.
RECOMMENDATIONS FOR ACTION
There are essentially three strands to the proposed support for the sector:
1. Promoting and marketing the locality’s advantages for logistics in a systematic and
strategic manner;
2. Proactively supporting initiatives that strengthen the regional logistics cluster; and
3. Tackling present and emerging blockages to the sector’s growth prospects especially
around labour and skills supply.
The first two are relatively straightforward with most of the information and support being in
hand and it largely being a case of pulling together information, key actors and partners in a
concerted manner.
On the final issue this is a problem for many of the region’s volume employment sectors and in
essence a problem of success. The problem of attracting labour and skills into logistics sector is
prevalent across UK regions as well as Wakefield. The sector needs to do more to appeal to
and attract young people and talent into the industry. It also needs a stronger profile amongst
school leavers and the region’s undergraduate and graduate population.
The sector has a tradition of in-house training and development but it needs to work more
closely with local and regional agencies to develop systems to support skills growth and
particularly around high order skills. In the latter more and better linkages with the high and
further education sectors is needed.
1. Market and promote Wakefield district as the UK’s leading northern logistics cluster (a
key logistics centroid).
 Develop an investment proposition highlighting Wakefield’s world-class profile
as a logistics cluster, including a clear statement of the opportunity.
 Showcase Wakefield as key focus of the regional offer on logistics.
 Identify good practice in the marketing and promoting of logistics clusters.
2. Research and scope a segmented marketing campaign targeting particular activities,
notably food and drink manufacturers and distributors plus non-food specialist third
party logistics activities, and specific firms.
 Use Leeds City Region intelligence assets (UKTI pipeline, UKTI sector leads and
key offices, Beauhurst and FDI Markets, etc) to identify specific geographies,
sub-sectors and firms to follow and target.
 Target appropriate marketing channels and opportunities (national and
international events) to promote the Wakefield logistics’ offer.

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3. Highlight and promote Wakefield’s comparative advantages and particularly key sites in
the district to logistics heavy sectors and businesses both within the UK and
internationally.
 Develop a schedule of key logistics companies to track and target. Not
exclusively these should include firms such as Clipper, Ceva, Unipart Logistics,
and DHL.
 Develop with the LCR a specific inward investment offer for the logistics sector
and target appropriate fora and international events to present this.
 Make use of LCR data assets and intelligence tools such as fDI Markets to track
key movers in the logistics sector and target these with a tailored offer.
 Food and drink manufacture is often logistics dependent and these firms could
and should be targeted with regard to specific sites.
 Work with developers and their agents to promote specific sites to logistics
firms.
 For example, J30 M62 is ideally suited to food and drink related distribution.
 Target related transport support businesses (diesel servicing, tachograph
providers and analysis, pallet manufacture, etc).
4. Work with the Leeds City Region other enterprise partnerships, and agencies (e.g. UKTI)
and businesses (e.g. ports, airports, waterways) to enhance the logistics sector offer
within and into the district.
 Work with UKTI export and inward investment sections to develop greater
volume and value of linkages to the region as well as the profile of the region as
a logistics hub.
 Build on the work with ABP to create greater profile for the district and key
gateways.
 Examine ways in which airport freight linkages (particularly for high value
goods) can be enhanced.
5. Develop a logistics forum chaired and driven by representatives from the sector and
focussed on practical initiatives and outcomes.
 Work with RCP21 around its support of business collaboration on business and
industrial parks to build a specific forum on logistics.
 Assist logistics businesses to identify range of key issues and work up a simple
work programme tackling issues.
 Assist the logistics businesses forum to undertake consultation (simple survey
exercise) across the sector to ensure actions and initiatives have a firm rationale
and evidence-base.
 Work with MYCCI and others to engage freight forwarders to discuss training
and management development issues around logistics services to local firms.
6. Work with businesses on individual business parks and industrial estates to resolve
congestion and traffic flow problems whether through green transport initiatives,
traffic control orders or via encouraging business collaboration on the sites (e.g. sharing
parking, warehouse or other transport resources).

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 A number of successful initiatives have been undertaken between Wakefield
Council and RCP21 on J41 and Normanton Industrial Estate and this work should
be extended.
 Develop green transport initiatives around bus timetables, car sharing, cycle
paths to business parks.
 Where appropriate consider and implement traffic control orders more quickly
(e.g. trigger the consultation process earlier) and efficiently to resolve problems
faster.
7. Promote the adoption of best practices via business briefing events specifically around
logistics and distribution themes.
 Work with Wakefield College, the Institute of Logistics, etc to provide subject
briefings.
 Work with IPS and others to deliver local or regional CPD courses to local firms’
managers and supervisors.
 Invite “thought leaders” (e.g. academics, ASDA, Google, Amazon) from the logistics and
the fulfilment sector to give insights into future developments and challenges.
8. Raise the profile of the sector with local schools and colleges encouraging young people
into placements, internships and careers in the sector.
 A number of businesses have done this (e.g. the Ice Company with Minsthorpe
Academy, South Elmsall) but there is scope and need to make a more concerted
effort.
 A joint effort approach per major industrial estate is suggested; for example,
one for Langthwaite, Dale Lane, Normanton and J41 industrial parks.
9. Encourage more and particularly higher level apprenticeships into the sector as a
means of securing future talent and of raising the skills profile.
 Develop a logistics specific apprenticeship scheme working with groups of firms,
particularly the smaller operations to help them again an influx of new, career-
focused workers into their workforces.
 Anchor new generations of talent within the sector and invest in their skills’
development which will help secure the future capacity of logistics firms to
grow and innovate.
 Work with Wakefield College and appropriate higher education institutions (e.g.
Leeds Beckett University and the University of Huddersfield) to provide deepen
the logistics training offer delivered locally including up to NVQ3 and NVQ4
levels.
10. Encourage firms with turnover and retention problems for HGV drivers to adopt a
young apprentices approach taking the apprentice up through the driver hierarchy
from van to class 1 HGV driver.
 This approach has been used very successfully to attract young people into the
larger firms and is a good way to capture and stick talent within the sector.
 Develop a package to offer large and medium sized operators including the big
4 supermarket retailers.

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11. Encourage firms to adopt and implement ISO9001 as a means to creating systems that
raise standards and good practice procedures within firms.
 Most the large corporate commissioners of logistics contracts will want an
ISO9001 approach as this stimulates focus and response on other issues such as
driver Certificate of Professional Competence (CPC).
 Use the accreditation process to explore and support further adoption of
Invitation To Quote (ITQ) or Pre-Qualification Questionnaire (PQQ)
requirements within local firms.
12. Support initiatives that help local firms to work more closely with higher and further
education institutions as a means to deepen their technical skills base and capacity to
innovate or adopt innovation.
 Broker active contacts and raise local firms’ awareness of the region’s HEI and
FE assets and capabilities, including (though not exclusively) Leeds Beckett
University’s Retail Institute, University of Leeds’ Leeds Institute for Data
Analytics, the University of Hull’s Institute of Logistics, the University of
Huddersfield’s B.Sc in Logistics and Supply Chain Management BSc(Hons) 2016-
17, and Wakefield College with its foundation degree in logistics and short
courses for apprentices and other levels.
 Broker and develop technical internship and mini Knowledge Transfer
Partnership programme using external funding (e.g. HEFC and ESIF) to solve
local firm’s technical problems.

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Glossary
Centroid: This is a term borrowed from the world of mathematics and physics defined as the
geometric centre of a two-dimensional region calculated as the arithmetic mean or "average"
position of all the points in the shape. In logistics this is mathematically looser and refers to a
central location where the place has an average reach of some large proportion of the regional
or national or super-regional (e.g. within the EU) populations and where there is also a large
concentration of manufacturing that is able to service this market hinterland with products.
Demand signal repositories (DSR): These are the data warehouses designed to integrate and
cleanse demand data, and to leverage that data for consumer goods manufacturers to so that
they can service retailers and final customers more efficiently. By cleansing the data and
synchronizing it with internal and external data this allows companies to drill down and get a
more complete view of the retail process; providing an overall feedback loop that can then be
acted on. For example, where products are running below or above expected demand levels
then the supply chain is signalled to reduce or ramp up supply. This type of data feedback
allows returns to be minimised and returns of investment to be acted on faster and more
efficiently.
Enterprise resource planning (ERP): This is business management systems approach and
software - typically a suite of integrated applications - that a company uses to collect, store,
manage and interpret data from many business activities, including: product planning, cost,
manufacturing or service delivery, marketing and sales. It facilitates the tracking of a business’
resources -cash, raw materials, production capacity - and the status of business commitments:
orders, purchase orders, and payroll.
Geo-fence marketing: Typically this is a dynamically generated radius around a shop or point
location where when the location-aware device of a location-based service user enters or exits
a geo-fence, the device receives a generated notification. This notification can contain
information about the location of the device and any offers or discounts that the shop or
service might be promoting to new customers. Usually the geo-fence notice will be sent to a
mobile telephone or an email account in the expectation (or hope) of triggering buying
behaviour.
GPS tracking: This uses tracking and locational technologies to feedback to the supplier and
the consumer where products are and to make final deliveries. As this becomes more
sophisticated it is allowing the producer to embed technologies that provide performance and
maintenance data that can then be actively supported and/or actioning distant diagnostics and
intervention (i.e. the emerging world of the Internet of Things).
Internet of Things: In essence this has been around for some time where equipment has been
embedded with GPS tracking to help keep large expensive plant safe and or traceable. More
recently plant and devices with embedded SIM cards have been linked to control and software
applications providing capacity to monitor and manage equipment remotely.
Nutraceutical: this is an amalgam of the words “nutrition” and “pharmaceutical”, and was first
used in 1989 by Stephen L. DeFelice, the founder and chairman of the Foundation of

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Innovation Medicine. The term has been applied to products that range from nutrients,
dietary, sports and health supplements, herbal products, as well as specific diets and
processed foods including cereals, soups, and beverages with a brand cachet and positive
health value-added charateristics.
Radio Frequency Identification Devices (RFIDs): These are ultra-small electronic devices using
electromagnetic fields to transfer data and allow the automatic identification and tracking of
RFID tagged objects. The tags contain electronically stored information. Unlike a barcode, the
tag does not necessarily need to be within line of sight of the reader and may be embedded in
the tracked object. RFID is one method for Automatic Identification and Data Capture (AIDC).
Once mooted as a bar-code killer technology RFID tags tend to be a complement rather than a
substitute for the use of much cheaper barcode technology.
SKU (Stock Keeping Unit): This is either any distinct type of item for sale, or the unique
identifier or code for specific stock. With an SKU for a product or service this will comprise the
characteristics/attributes that distinguish it from other items. Typically these will include: the
manufacturer, description, material, size, colour, packaging, and warranty. When a business
takes an inventory, it counts the quantity it has of each SKU. An SKU can also refer to a unique
identifier or code that refers to the particular stock keeping unit. These codes are not
regulated, nor standardized. When a company receives items from a seller or supplier, it can
either use the SKU supplied with the goods or create/attach its own.