Structural Indicators and Logistics Costs Evaluation of Kayseri Firms, Ranked in Turkey inTop 1000 Industrial Enterprises

Abstract

This article presents partial findings of a research project titled Enhancing the Logistics Sector as a Means to Improve the Competitiveness of Large-Scale Manufacturing Industry in Kayseri that was supported by the Yildiz Technical University Scientific Research Project Coordination Department. This research was based on large industrial firms in Kayseri that were ranked among the top 1000 industrial enterprises in 2014 on the list published by the Istanbul Chamber of Industry. The goal of the study was to present the basic structural characteristics of large-scale manufacturing in Kayseri and examine factors that increase the logistics costs of those manufacturing industry firms. An in-person survey and in-depth oral interviews were used to gather data regarding basic structural indicators, logistics performance, and logistics-related problems encountered by the companies. The results were then evaluated with qualitative research methods. According to the first group of findings, distribution of firm size and type does not reveal any sub-sector concentration. It is evident from the responses that being close to the railway used to be quite important, but today highways dominate a firm's selection of location. The second set of findings indicates that all but two firms choose to work with logistics providers. It should be noted, however, that in Kayseri providing logistics means providing transport only. The third group of findings reveals that high transportation and logistics costs in Turkey adversely affect input and manufacturing costs, preventing entrepreneurs from reaching distant markets. This is such an important problem that it was pointed to as one of the most prominent issues to be resolved in order to enable access to new foreign markets.