172 M.Hesse,J.-P.Rodrigue Journal of Transport Geography 12 (2004)171-184 although the physical movement of goods appears to be trade theory neglects the role of transport and logistics one of the costliest parts of retail activities (Christoph- (Dicken,1998,p.74),particularly the fact that transport erson,2001).One exception to these observations is in costs have a fundamental impact on the amount of trade Ralston (2003).who does address issues of inventory and goods exchange,as do traffic constraints and carrying costs and supply chain analysis. opportunities in general.We argue that this perspective Despite the upcoming notion of volatility and place- is mainly the result of a misinterpretation of role of the lessness,and contrasting the enduring neglect of trans- transport sector,freight and passengers alike,as a de- portation by regional and geographical sciences,the rived demand.Under such circumstances,transporta- material world of physical distribution and the respec- tion is perceived as a residual consequence-derived-of tive locales is considered of geographical significance. other processes or a mere "space-shrinking"function The two traditional disciplines for investigating physical (Dicken,1998;Knox and Agnew,1998).However,the distribution are business administration (economics) same processes behind the focus of the globalization and transportation sciences.Both cover,to varying de- literature,such as international trade,multinational grees,aspects of space and location.However,it is corporations and the division of labor/production,are legitimate to state that both disciplines did not pay also revealing a different perspective,which is the much attention to the spatial character of their subject. management of supply chains and their underlying In turn,economic and transport geography,did not logistics.Consequently,the role of distribution in develop too large a focus on logistics-keeping in mind globalization remains partially unanswered and a geo- the broad geographical relevance of distribution.A graphical analysis of logistics may provide substantial substantial amount of research covers different planning evidence in that respect. aspects of freight transport particularly in the urban context,either from a transport engineering and plan- 1.2.Definition of the subject ning perspective or emphasizing related urban problems (Chinitz,1960;Odgen,1992;Woudsma,2001).Logis- Logistics consider the wide set of activities dedicated tics,as a geography,remains relatively unexplored. to the transformation and circulation of goods,such as Freight distribution is now considered with more the material supply of production,the core distribution attention as productivity gains in manufacturing are and transport function,wholesale and retail and also the increasingly derived from efficiency at terminals instead provision of households with consumer goods as well as of from the efficiency of transportation modes (Rodri- the related information flows (Handfield and Nichols. gue,1999).Because transport geography is traditionally 1999).These activities composing logistics are included more engaged in long distance trade issues,freight re- into two major functions which are physical distribu- lated work received significant attention.With emerging tion;the derived transport segment,and materials global trade,production networks and distribution management;the induced transport segment.More systems,particular emphasis was given to ports and specifically: related research covering many of these issues (e.g. Hoyle,1990,1996;Hoyle and Pinder,1992;Nuhn,1999; Physical distribution (PD)is the collective term for the Slack.1998).In this context,an increasing amount of range of activities involved in the movement of goods work on intermodal freight transport and terminal is- from points of production to final points of sale and sues appeared as well (van Klink and van den Berg, consumption (McKinnon,1988,33).It must insure 1998:Drewe and Janssen.1998).Generally.interna- that the mobility requirements of supply chains are tional trade increasingly contributes to the amount and entirely met.PD comprises all the functions of move- the nature of physical distribution.Thus globalization ment and handling of goods,particularly transporta- is now discussed as having a major impact on goods tion services (trucking.freight rail,air freight,inland exchange (Janelle and Beuthe,1997;McCray,1998; waterways,marine shipping,and pipelines),trans- Pedersen,2000;Woudsma,1999). shipment and warehousing services (e.g.consignment, Still,fallacies are noted in globalization discourses storage,inventory management),trade,wholesale within economic geography,undermining the assess- and,in principle,retail.Conventionally,all these ment of the role of transportation.Within the large activities are assumed to be derived from materials body of work referring to the globalization discourse or management demands the impacts of internationalization and free trade Materials management (MM)considers all the activi- agreements,transport is not seen as a major issue or is ties related in the manufacturing of commodities in de facto taken for granted(Holmes,2000).Even classic all their stages of production along a supply chain. MM includes production and marketing activities such as production planning,demand forecasting, IThe special issues on containerisation in GeoJournal 48.1999 and purchasing and inventory management.It must in- on terminals in the Journal of Transport Geography 7,1999. sure that the requirements of supply chains are metalthough the physical movement of goods appears to be one of the costliest parts of retail activities (Christoph￾erson, 2001). One exception to these observations is in Ralston (2003), who does address issues of inventory carrying costs and supply chain analysis. Despite the upcoming notion of volatility and place￾lessness, and contrasting the enduring neglect of trans￾portation by regional and geographical sciences, the material world of physical distribution and the respec￾tive locales is considered of geographical significance. The two traditional disciplines for investigating physical distribution are business administration (economics) and transportation sciences. Both cover, to varying de￾grees, aspects of space and location. However, it is legitimate to state that both disciplines did not pay much attention to the spatial character of their subject. In turn, economic and transport geography, did not develop too large a focus on logistics––keeping in mind the broad geographical relevance of distribution. A substantial amount of research covers different planning aspects of freight transport particularly in the urban context, either from a transport engineering and plan￾ning perspective or emphasizing related urban problems (Chinitz, 1960; Odgen, 1992; Woudsma, 2001). Logis￾tics, as a geography, remains relatively unexplored. Freight distribution is now considered with more attention as productivity gains in manufacturing are increasingly derived from efficiency at terminals instead of from the efficiency of transportation modes (Rodri￾gue, 1999). Because transport geography is traditionally more engaged in long distance trade issues, freight re￾lated work received significant attention. With emerging global trade, production networks and distribution systems, particular emphasis was given to ports and related research covering many of these issues (e.g. Hoyle, 1990, 1996; Hoyle and Pinder, 1992; Nuhn, 1999; Slack, 1998). In this context, an increasing amount of work on intermodal freight transport and terminal is￾sues 1 appeared as well (van Klink and van den Berg, 1998; Drewe and Janssen, 1998). Generally, interna￾tional trade increasingly contributes to the amount and the nature of physical distribution. Thus globalization is now discussed as having a major impact on goods exchange (Janelle and Beuthe, 1997; McCray, 1998; Pedersen, 2000; Woudsma, 1999). Still, fallacies are noted in globalization discourses within economic geography, undermining the assess￾ment of the role of transportation. Within the large body of work referring to the globalization discourse or the impacts of internationalization and free trade agreements, transport is not seen as a major issue or is de facto taken for granted (Holmes, 2000). Even classic trade theory neglects the role of transport and logistics (Dicken, 1998, p. 74), particularly the fact that transport costs have a fundamental impact on the amount of trade and goods exchange, as do traffic constraints and opportunities in general. We argue that this perspective is mainly the result of a misinterpretation of role of the transport sector, freight and passengers alike, as a de￾rived demand. Under such circumstances, transporta￾tion is perceived as a residual consequence––derived––of other processes or a mere ‘‘space-shrinking’’ function (Dicken, 1998; Knox and Agnew, 1998). However, the same processes behind the focus of the globalization literature, such as international trade, multinational corporations and the division of labor/production, are also revealing a different perspective, which is the management of supply chains and their underlying logistics. Consequently, the role of distribution in globalization remains partially unanswered and a geo￾graphical analysis of logistics may provide substantial evidence in that respect. 1.2. Definition of the subject Logistics consider the wide set of activities dedicated to the transformation and circulation of goods, such as the material supply of production, the core distribution and transport function, wholesale and retail and also the provision of households with consumer goods as well as the related information flows (Handfield and Nichols, 1999). These activities composing logistics are included into two major functions which are physical distribu￾tion; the derived transport segment, and materials management; the induced transport segment. More specifically: • Physical distribution (PD) is the collective term for the range of activities involved in the movement of goods from points of production to final points of sale and consumption (McKinnon, 1988, 33). It must insure that the mobility requirements of supply chains are entirely met. PD comprises all the functions of move￾ment and handling of goods, particularly transporta￾tion services (trucking, freight rail, air freight, inland waterways, marine shipping, and pipelines), trans￾shipment and warehousing services (e.g. consignment, storage, inventory management), trade, wholesale and, in principle, retail. Conventionally, all these activities are assumed to be derived from materials management demands. • Materials management (MM) considers all the activi￾ties related in the manufacturing of commodities in all their stages of production along a supply chain. MM includes production and marketing activities such as production planning, demand forecasting, purchasing and inventory management. It must in￾sure that the requirements of supply chains are met 1 The special issues on containerisation in GeoJournal 48, 1999 and on terminals in the Journal of Transport Geography 7, 1999. 172 M. Hesse, J.-P. Rodrigue / Journal of Transport Geography 12 (2004) 171–184