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Global supply chain and port/terminal: Integration and competitiveness
Abstract
Much has been said of the importance of port and terminal integration in the supply chain. Authors have stressed the importance of agility to the port environment, which involves being proactive along supply chains, facilitation of intermodal integration, as well as organizational integration and partnership between ports and users. Despite the well articulated importance of the issues, little has been offered in terms of conceptualizations and empirical evidence of what really is meant by port/terminal integration in the supply chain, how such integration can be measured and quantified as well as the extent to which different ports/terminals in the world are integrated in the supply chain and competitive performance implications arising thereof. This paper aims to make a contribution in this respect by (i) reviewing the relevant literature on supply chain integration and port integration in the supply chain, (ii) conceptualizing measures for port/terminal integration in the supply chain, (iii) empirically testing the influence of port/terminal integration in the supply chain on port competitiveness and (iv) outlining the significance and value of the study for port operators, shipping lines, transport providers and for further research.
... Evaluations were conducted using a 5-point Likert scale, where 1 indicated strong disagreement and 5 indicated strong agreement. The constructs of internal integration (INTI) and information integration (INFI) were measured using scales developed by Basnet (2013) and Song and Panayides (2008). The INTI scale consists of eight items, including statements like "we engage in collaborative planning to foresee and address supply chain challenges," while the INFI scale is composed of five items, such as "our port shares information electronically with our trading partners." ...
... The scale includes items like "we collaborate closely with our suppliers to resolve issues," "we routinely assess customer satisfaction," and "our trading partners provide us with confidential information." The operational performance of ports (POP) was evaluated using a 17item scale derived from the work of Han (2018) and Song and Panayides (2008), also tailored to fit the study context. This scale examines four dimensions of POP-cost, quality, reliability, and responsiveness-as a second-order construct. ...
This study aims to investigate the relationship between internal and information integration within the supply chain (SCI-INTI and SCI-INFI), supply chain management (SCM) practices, and port operational performance (POP) in Oman’s container ports. Additionally, it explores the mediating role of SCM practices in the relationship between SCI-INTI, SCI-INFI, and POP in Oman. To meet the study’s objectives, a quantitative cross-sectional survey method was used. A total of 377 questionnaires were distributed to managers responsible for supply chain operations in the main departments at Sohar and Salalah ports, yielding 331 usable responses, with a response rate of 88 percent. The data collected were analyzed using partial least squares structural equation modeling (PLS-SEM). The results show that both internal and information integration within the supply chain have positive and statistically significant effects on the operational performance of Oman’s container ports (POP). Specifically, Supply Chain Integration with Internal Integration (SCI-INTI) significantly impacts POP (β = 0.249, t = 5.039, p < 0.001), and Supply Chain Integration with Information Integration (SCI-INFI) also significantly affects POP (β = 0.259, t = 4.966, p < 0.001). Additionally, SCI-INTI positively influences Supply Chain Management Practices (SCMP) (β = 0.381, t = 7.674, p < 0.001), as does SCI-INFI (β = 0.484, t = 9.878, p < 0.001). Furthermore, SCMP positively and significantly influences the operational performance of Oman’s container ports (β = 0.424, t = 7.643, p < 0.001). These findings contribute to the literature by emphasizing the significance of internal and information integration within the supply chain and SCM practices as strategic internal resources and capabilities that enhance operational performance in container ports. Understanding these elements enables decision-makers and policymakers within government port authorities and port operating companies to optimize internal resources and capabilities to improve port operational performance.
... Under this broader concept of reliability, studies highlight dry (i.e., inland) ports (Lättilä et al. 2013;Facchini et al. 2020;Jiang et al. 2020) which can reduce congestion and emissions. Other studies point to the role of intermodal connections and cooperation among seaports and dry ports (Bärthel and Woxenius 2004;De Langen and Sharypova 2013) and integration of different transport services along the supply chain (Song and Panayides 2008;Woo et al. 2013). ...
... Collaboration on information-sharing through the supply chain offers insights to another research stream -the integration of the supply chain. The higher the degree of integration, the better a supply chain performs (Song and Panayides 2008). The presence of technology and information-sharing is crucial in facilitating integration across stakeholders in the supply chain (Wang et al. 2017;Liu et al. 2018). ...
Improving reliability is increasingly regarded as an important topic in maritime transportation, especially given the significant impact that both uncertainty and delays in shipping and at ports have on the efficient flow of freight along wider supply chains. The term ‘reliability’ appears in different academic fields and with a variety of different meanings and interpretations. In transportation, reliability has been studied in most modes, but less so in the case of maritime containerisation. This paper reports on a systematic literature review of the concept of reliability in transportation, with a focus on reliability in container shipping networks. The selected papers were analysed to extract information according to the three identified sub-networks: (1) ports, including studies with a focus on infrastructure, service availability and risks in ports and hinterlands; (2) network structures, including the configuration of the networks, the vulnerability and resilience of the existing networks; (3) supply chains, including connectivity and planning of activities that integrate stakeholders within the supply chain. These sub-networks were then used to further query the database, searching for papers relevant to the research problem. Two research questions are addressed: (1) How is reliability best understood in the context of container shipping networks? (2) What are the determinants that affect container shipping network reliability? The review showed that there is no uniform definition of reliability in container shipping networks, but different approaches to understand it, depending on the theoretical perspective, have been adopted. Influencing factors and relevant metrics are discussed and a framework combining different dimensions of reliability, expressed as three themes, i.e., infrastructure reliability, network configuration reliability, and connectivity reliability, is developed. This can help both practitioners and researchers to understand in more detail the various dimensions and nuances of reliability specifically in the context of container shipping, its interrelationship with wider logistics systems and how, where possible, reliability can be improved.
... In reviewing studies, we found that several research gaps have had in this area; for example past studies were focused on examining the effect of port resource and sustainability practices on port operational performance (Bonaya, 2021); port supply chain integration and its relationship with port performance (Abadli, Kooli, & Otmani, 2020;Han, 2018;Song & Panayides, 2008;Tongzon, 1995;Woo, Pettit, & Beresford, 2011) to mention a few. Subsequently, there are several studies on seaports, but very limited on dry ports especially in landlocked countries, for instance, port integration into global SCs (Alavi, 2019). ...
... This is often considered the major factor in the port organization affecting port operations (Helling & Poister, 2000). Besides, Song and Panayides (2008) show the effect of port logistics integration on port performance: H3: Port-logistics integration has a significant impact on port operational performance ...
Purpose: This paper identifies the impacts of port characteristics and port-logistics integration on port performance in the case of Ethiopian dry ports. Research Methodology: To complete the study, we used structural equation modeling to test the relationship between port characteristics and port-logistics integration with port performance. Moreover, Statistical Package for Social Science is also used to filter indicators. Apart from this, the study was conducted in three dry ports of Ethiopia having a sample of 279 employees. Results: The finding shows that port characteristics such as port infrastructure, port connectivity, and port privatization have significantly impacted port performance. Also, port-logistics integration has an impact on both port operational performance and port efficiency. Limitations: The main limitation is that the study focused only on three dry ports of Ethiopia which do not include other dry ports in the country. Contribution: Ethiopia suffered forced dependency on transit countries after a blooded war with Eritrea which resulted in customs delays at port. To reduce this, the study suggests that Ethiopia should coordinate in developing joint infrastructures, and formulating unfettered rules and regulations with its transit countries. Keywords: 1. Port characteristics 2. Port logistics integration 3. Port operational performance 4. Port efficiency
... Ng (2013), Notteboom et al. (2009), Tang (2010) discuss the cooperation among competing ports, especially the ports in proximity, is often regarded as a practical strategy to avoid the destructive inter-port competition and the disorderly or extravagant planning and construction [7][8][9]. Lam et al. (2013), Song and Panayides (2008) discuss the necessity of port cooperation and integration, and point out more and more attention has been paid to the ways of port cooperation and integration [10,11]. Ruan et al. (2018) propose a port service network that consists of a large hub and multiple ports, where the small and medium ports can share their capacities with the hub ports if the service capacities are integrated into the network. ...
... Ng (2013), Notteboom et al. (2009), Tang (2010) discuss the cooperation among competing ports, especially the ports in proximity, is often regarded as a practical strategy to avoid the destructive inter-port competition and the disorderly or extravagant planning and construction [7][8][9]. Lam et al. (2013), Song and Panayides (2008) discuss the necessity of port cooperation and integration, and point out more and more attention has been paid to the ways of port cooperation and integration [10,11]. Ruan et al. (2018) propose a port service network that consists of a large hub and multiple ports, where the small and medium ports can share their capacities with the hub ports if the service capacities are integrated into the network. ...
... Synchromodality (i.e. synchronized intermodality) is an emerging concept that can be summarized as the ability of a synchronized and interconnected transport mode, while a cargo unit is in transit (Song and Panayides 2008). The importance of hinterland connections is increasingly defining port competitiveness (Meersman, Eddy Van de, and Vanelslander 2016). ...
... The importance of hinterland connections is increasingly defining port competitiveness (Meersman, Eddy Van de, and Vanelslander 2016). The ability to manage these hinterland connections creates opportunities to excel in this competitive area by increasing reliability, flexibility and speed and by reducing congestion, accidents and pollution (Song and Panayides 2008). ...
Increasing congestion and the push for (i) a greener modal shift, (ii) more reliability and visibility of goods, and (iii) more sustainable activities in and related to the port are turning policymakers to the concept of the smart port. Such emerging concept describes a future state of the port that is adapted to these challenges. A smart port is a port that optimizes in-, intra- and outbound flow of goods and information, leads sustainable development and guarantees safe, resilient and secure activities through the capabilities of its (extended) port community and enabling technologies.
However, turning a traditional port into a smart port is a strategic challenge for the port community at large. To contribute to this practically relevant and academic challenge, the present paper applies a literature review and the novel maturity model development methodology to develop a strategic tool.
This newly-developed strategic tool (i) enhances the common understanding of the current and aspired maturity state, (ii) support decision-making of port policy and management actors and (iii) represent a maturation path for improvement for port communities. The case study results demonstrate the benefits and relevance of the tool. Finally, recommendations are made to apply this policy tool to enhance or investigate digitalization strategy.
... However, most of the papers have their own specific topic area, due to the nature of academic research. For example, Song (2003) studied port co-opetition that combines competition and cooperation for inter-port relationship; Zhou (2015) analyzed the best strategy (competition or cooperation) when facing new competitors; De Pallis (2006) andDe Oliveira andCariou (2015) investigated the impact of competition on port competitiveness; Tian et al. (2015) identified the change of competition relationship overtime; Cullinane et al. (2005) evaluated port competitive position; Hwang and Chiang (2010) found cooperation and co-opetition can enhance the competitiveness of port cluster, and Song and Panayides (2008) analyzed the impact of port integration in the supply chain on port competitiveness. However, no studies have summarized the relationships among these three topic areas based on the existing literature. ...
... Only 2 papers are in port cooperation and port competitiveness. One found that cooperation and co-opetition between adjacent ports would enhance port competitiveness in the same region (Hwang and Chiang, 2010), another examined the impacts of vertical integration of ports or terminals in the supply chain on port competitiveness (Song and Panayides, 2008). ...
Identifying the relationships among port competition, cooperation and competitiveness is critical for both port operations and public interests. Although the number of studies on these three topic areas increased significantly in the recent decades, the relationships among them have not been sufficiently clarified. This study attempts to identify their relationships based on a comprehensive literature review of 210 journal papers published from 1970 to 2019 on these three topic areas, and the studies with overlapping topics. While many studied port competition, cooperation and competitiveness, very few studies exist with overlapping topic areas. Current research on the relationship of port competition and cooperation is mainly from the perspective of ports, few evaluated the implication of these strategies from different perspectives, especially from social point of view. On the relationship of port competition and competitiveness, many considered that intra-port competition can increase port competitiveness. However, both inter-port competition and cooperation are found to have positive or negative impacts, depending on the perspective of the study and the geographical location of the ports in question.
... The mainstream literature on ports (Song and Panayides 2008;Tongzon, Chang, and Lee 2009) widely acknowledges the importance of ports within supply chains. This implies that ports and terminals should not only try to enhance their internal efficiency and performance but also support the effectiveness and efficiency of their supply chains to ensure port competitiveness. ...
... The first involves qualitative analyses of the operational mechanisms, cooperation models, and coordination mechanisms within SLSSCs. Studies by Bichou and Gray (2004); Song and Panayides (2008); Tongzon and Lee (2016), and Jiang et al. (2021), and Xu et al. (2024a explore how different stakeholders in the shipping industry collaborate to enhance efficiency and service quality. These works examine the complexities of maritime logistics and the importance of integrating various services to optimize the supply chain. ...
Market-based carbon cap-and-trade mechanisms play a pivotal role in reducing the carbon emissions of shipping logistics companies. Focusing on the issue of emission reduction investment in the competitive shipping logistics service supply chain (SLSSCs) under carbon cap-and-trade, this paper constructs a game theory model for emission reduction investment decision-making in the SLSSC, which comprises two participants-a shipping logistics service provider (SLSP) and a shipping logistics service integrator (SLSI)-discusses the equilibrium strategy of emission reduction investment based on optimization theory, and further explores the benefits of participating entities, consumer surplus, and social welfare under different emission reduction strategies. The findings indicate that: (1) a no-reduction investment strategy, a single-chain investment strategy, and a dual-chain investment strategy can each serve as equilibrium strategies, which are influenced by the interplay among the unit carbon emission trading price, the spillover effect of emission reduction investments, and the associated cost coefficient. (2) Both single-chain and dual-chain emission reduction strategies in the SLSSCs contribute to consumer surplus; however, their impact on social welfare is contingent on the SLSI’s cost coefficient for emission reductionn investments. (3) Under the single-chain equilibrium strategy, the spillover effect from the SLSI’s emission reduction investment has a favorable impact on returns for participants in the non-investing chain, consumer surplus, and social welfare, but adversely affectts returns for participants in the investing chain. Under the dual-chain equilibrium strategy, the spillover effect benefits both chains’ participants’ returns, consumer surplus, and social welfare. In addition, the SLSP’s altruistic inclination enhances participants’ returns, consumer surplus, and social welfare across all strategies.
... Zhou et al. highlight the need for streamlined governance structures to minimize bureaucratic hurdles [17]. Song and Panayides explore the integration of global supply chains with port and terminal operations to enhance competitiveness, while Lai et al. examine how institutional isomorphism drives the adoption of information technology in supply chain management, emphasizing the role of regulatory, normative, and market pressures in technological standardization [21,22]. ...
Collaborative information sharing in the maritime logistics supply chain is essential for achieving efficiency, sustainability, and resilience. However, numerous barriers hinder effective information sharing among key stakeholders, including port operators, shipping companies, and trucking firms. This study conducts an empirical analysis involving surveys and interviews with logistics industry experts in South Korea, applying the Fuzzy Analytical Hierarchy Process (Fuzzy AHP) to identify and prioritize critical collaborative information-sharing barriers in the maritime logistics supply chain. Through a comprehensive literature review, a range of barriers was identified, and their relevance was validated through structured surveys with industry experts. The application of Fuzzy AHP, which incorporates the inherent uncertainty in human judgment, enabled the identification of the most critical barriers that require urgent resolution. Based on these findings, a robust and actionable framework is proposed to address the identified challenges, integrating insights from expert interviews and the literature. The framework encompasses strategies such as data standardization, advanced data security, enhanced service compatibility, policy and institutional improvements, and stakeholder engagement. By addressing these critical barriers, the proposed framework aims to foster seamless information sharing and collaboration, ultimately enhancing the efficiency and sustainability of the maritime logistics supply chain.
... As an integral component of the national logistics system, the port sector strategically facilitates the smooth distribution of goods within and across regions. Moreover, ports also serve as local economic hubs, generating employment opportunities and driving regional economic growth (Notteboom & Rodrigue, 2005;Song & Panayides, 2008). However, this sector faces significant challenges, including occupational accident risks, nonconducive work environments, and high operational intensity. ...
A sustainable work environment is pivotal in enhancing employee productivity, particularly in the port sector, which faces high occupational risks and complex operational demands. This study aims to analyze the impact of occupational health and safety (OHS) and the work environment on employee productivity at Pelabuhan Indonesia PT (Persero) II, Tanjung Pandan Branch. A quantitative approach was employed using a survey method with structured questionnaires completed by 37 respondents, analyzed through Structural Equation Modeling-Partial Least Square (SEM-PLS). The research variables included OHS dimensions (workplace conditions, safe behaviors, psychological atmosphere) and work environment factors (lighting, air temperature, noise, workspace, safety). The analysis revealed that OHS significantly influences productivity (p < 0.05), with a greater contribution from the psychological atmosphere dimension than other technical aspects. The work environment also positively affects productivity, with lighting and workplace safety emerging as the most significant contributors to fostering a supportive work atmosphere. These findings underscore the importance of a conducive work environment, supported by employee security and comfort, in boosting motivation and operational efficiency. The study’s social implications highlight that investments in OHS programs and workplace improvements enhance productivity, foster harmonious workplace relationships, reduce conflicts, and strengthen employees’ social well-being. Together, these variables account for 68% of the variance in employee productivity, emphasizing the critical role of OHS and work environment management in improving operational efficiency. This study offers practical recommendations to strengthen OHS programs through regular training, stringent supervision, and infrastructure enhancements that ensure employee comfort. These results are expected to reference other local ports in developing policies integrating workplace safety and environmental management to achieve sustainable productivity.
... The scale comprises things such as "we engage in close collaboration with our suppliers to address problems," "we regularly evaluate customer satisfaction," and "our trading partners communicate confidential information to us." This study assessed the operational performance of ports (POP) using a 17-item scale that was adapted from the research conducted by and Song and Panayides (2008) to suit the specific research setting. The second-order concept of POP is assessed by this scale, which considers four dimensions: cost, quality, dependability, and responsiveness. ...
The operational performance of container ports is crucial for efficient logistics and trade. However, there is limited understanding of how external integration through Customer and Supplier Integration (SCI-CI and SCI-SI) impacts port operational performance (POP), particularly in emerging markets like Oman. This study addresses this gap by examining the relationship between SCI-CI, SCI-SI, and POP, and explores the mediating role of supply chain management (SCM) practices in this context. Using the Resource-Based View (RBV) as the theoretical framework, the study employed a quantitative cross-sectional survey method. A total of 377 questionnaires were distributed to managers at Sohar and Salalah ports, with 331 usable responses obtained, representing an 88 percent response rate. The data were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM). The results indicate that SCI-CI and SCI-SI have significant direct and indirect positive effects on POP, and they directly influence SCM practices. SCM practices, in turn, significantly enhance POP. Notably, SCM practices partially mediate the relationship between SCI-CI and SCI-SI with POP. These findings underscore the strategic importance of external integration and SCM practices as internal resources for improving port performance. This research provides valuable insights for decision-makers and policymakers in optimizing port operations.
... The impact of the subdued port performance is reflected in a country's economic development [12]. Shipping ports are vital nodes that link other modes of transportation in global trade and are considered strategic assets demanding significant attention in maritime and transportation research and practice [4,13,14]. ...
Sustainability has emerged as one of the most critical factors influencing the competitiveness of maritime shipping ports. This emergence has led to a surge in research publications on port sustainability-related topics. However, despite the increasing awareness and adoption of sustainability practices, documented literature on empirical studies with survey and interview data is very limited. Moreover, the existence of validated instruments to objectively assess sustainability through sustainability practices for shipping ports in India needs to be traced. This study contributes by validating an instrument to evaluate objectively sustainability practices in shipping ports by adopting a four-stage process, starting with item identification based on an extensive literature review, instrument evaluation by subject matter experts, assessing of the instrument with suitable content validation indices, and finally evaluating the validity and reliability of the hypothesized theoretical model. For content validation, Content Validity Index, Cohens Kappa coefficient, and Lawshe’s Content Validity Ratio were computed with the assessment by a subject matter expert panel comprising six members from the port industry as well as academicians cum researchers in the field of shipping ports. The content-validated instrument was administered to 200 samples comprising officer category port employees. The measurement model was evaluated and validated using the Confirmatory Factor Analysis to assess the extent to which the measured variables represent the theoretical construct of the study and ascertain the factor structure. The empirically validated instrument met the required guidelines of model fit, reliability, and construct validity measures and was found to be a confirmed model for measuring sustainability practices in shipping ports. Structural Equation Modeling methodology was adopted to explain the variance and the path relationship between the higher-order and lower-order constructs of sustainability. The results indicate that the economic dimensions are the major contributors to the overall sustainability of the port as they drive investments in environmental and social dimensions, leading to overall sustainable development. The study’s findings will be helpful for researchers, academicians, policymakers, and industry practitioners working towards sustainability practices that contribute to sustainable growth and development in the shipping industry.
... The maritime industry is an indispensable component of the global supply chain and holds considerable sway over global trade dynamics (Lezhnina and Balykina, 2021). Within this context, ports and maritime transport play pivotal roles in shaping the functioning of the global supply chain (Carbone and Martino, 2003;Song and Panayides, 2008). As underscored by UNCTAD, the persistent surge in shipping costs may have ramifications far beyond trade, affecting production costs, consumer prices, and the overall trajectory of short-and medium-term economic recovery (UNCTAD, 2021). ...
... L'analyse basée sur la recherche-action ou sur un paradigme constructiviste consiste à présenter, par exemple, à un panel d'experts et de managers portuaires un modèle provisoire de performance portuaire à examiner et évaluer par eux de sorte à améliorer le modèle initial (Bichou & Gray, 2004, 2005Bichou, 2006;Almotairi & Lumsden, 2009). La deuxième méthode issue d'un paradigme positiviste se base, d'une part, sur une analyse exploratoire ou confirmatoire pour confirmer des enquêtes entreprises auprès de l'ensemble des acteurs de la supply chain quant aux dimensions de la performance portuaire (Song & Panayides, 2008;. D'autre part, les méthodes d'équations structurelles sont utilisées pour étudier les relations entre la performance et ses facteurs d'influence comme l'intégration supply chain (Woo, 2010;Woo et al., 2013;Han, 2018) ou les ressources (Felício & Caldeirinha, 2013 ;Cho & Kim, 2015). ...
The concept of performance has got growing interest in management research for several years today. In its general sense, there has been much progress on its definition in French and Anglophone literature. However, despite the progress observed, the definition and evaluation of the concept are not yet the subject of total consensus. Also, when the concept of performance is studied in the seaport context, there is a notorious absence of works in French that attempts to understand and evaluate it. Thus, the article aims to seek to understand the concept of performance, more particularly port performance. In this sense, the study is based on relevant literature in port management. The results indicate, mainly, that, in the seaport context, performance is a concept which has two dimensions, namely efficiency and effectiveness. These two dimensions make it possible to understand port activities from both the point of view of producers and users.
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Le concept de performance fait l'objet, depuis plusieurs années, d'un intérêt croissant dans les recherches en management. Pris génériquement, dans les travaux en français comme en anglais, il y a de nombreuses avancées sur sa définition. Toutefois, malgré les progrès observés, la définition et l'évaluation du concept ne font l'objet que d'un consensus partiel. Aussi, lorsque le concept de performance est rapporté au contexte portuaire, il existe une absence criarde de travaux en langue française qui tentent de l'appréhender et de l'évaluer. Ainsi, l'article se donne pour but de chercher à comprendre le concept de performance plus particulièrement la performance portuaire. Pour ce faire, l'étude s'appuie sur la littérature pertinente en management portuaire. Les résultats indiquent, principalement, que, dans le contexte portuaire, la performance est un concept à double dimension à savoir l'efficience et l'efficacité. Ces deux dimensions permettent d'appréhender les activités portuaires aussi bien du point de vue des producteurs que des utilisateurs.
... The efficient functioning of the entire supply chain relies on the collective efforts of each node enterprise. Table 4 provides an overview of the key node enterprises and their fundamental characteristics within the supply chain (Irannezhad et al., 2020;Notteboom & Rodrigue, 2008;Song & Panayides, 2008). ...
... Changes in supply chains are forcing ports and terminals to seek effective integration in such chains when delivering value to shippers and third-party logistics service providers (Robinson 2002 ;Mangan et al. 2008). Song and Panayides (2008) provided a conceptual contribution to the measurement and quantification of such integration efforts whose success, however, has also been questioned by Magnan and van der Horst (2020), in the case of certain major European ports. ...
In our latest work, we look at the impacts major disruptors might have on supply chain resilience, shipping, ports, and international trade. COVID-19, for instance, caused an initial contraction, followed by an inflationary peak in demand. For more than two years, ports and shipping were center stage in an unfolding global supply chain crisis. Our work identifies the effects and implications of a major disruptor (such as the COVID-19 pandemic) on the activities, operations, management structure and performance of the international shipping and ports industries, with a specific focus on container shipping and ports. Both the short-term impact of the COVID-19 pandemic and the longer-term responses of container shipping and ports are examined, including also the longer-term implications for port governance. The flow of the narrative has also allowed us a digression on the fundaments of shipping and port economics (particularly of the latter), offering readers new insights never addressed before. Lessons learned from our analysis could be useful in addressing other disruptors or uncertainties in and around ports and the global maritime landscape. The work is void of technical detail, meant instead for the general reader with an interest in ports, shipping, trade, and global supply chains.
... Changes in supply chains are forcing ports and terminals to seek effective integration in these supply chains when delivering value to shippers and third-party logistics service providers (Robinson, 2002;Mangan et al., 2008). Song and Panayides (2008) provided a conceptual contribution to the measurement and quantification of such integration efforts whose success, however, has also been questioned by Magnan and van der Horst (2020), in the case of certain major European ports. ...
The year 2020 will go down in history as the year of COVID-19. With the World Health Organization’s declaration of an International Pandemic on 11th March 2020, its social and economic consequences have spread globally as quickly as the virus itself and, in no small measure, the decease has ushered in a new normal which has yet to be fathomed. Concepts such as teleworking for business and the e-campus for education, particularly in the way these are facilitated by the simplicity of platforms such as Zoom, Teams, etc., are probably here to stay – at least to some extent and in some form. The effects of this on business travel, education and e-commerce are likely to be profound (Suau-Sanchez et al., 2020: Conway et al., 2020; Pokhrel & Chhetri, 2021; Mohdhar & Shaalan, 2021).
Of course, with the outbreak of the pandemic, both global production and international trade initially declined. Naturally, this had to do with the lockdown in China and the closure of many of its production facilities in January 2020. The situation in China initiated a supply shock in Europe, North America and other parts of the world. Container shipping lines resorted to blank sailings on the trade routes with China, while companies tried frantically to reassess their supply chain exposure to that country. The Chinese lockdown led to serious disruptions in global supply chains, demonstrating, if any more lessons were needed, the pivotal role of China as the engine of global industrial production. The initial supply shock was followed by a demand shock, i.e., the lockdowns in Europe and North America that followed in March 2020, substantially reduced the demand for Chinese imports. The short-term economic effects of COVID-19 have been most immediately and acutely felt in the contraction of global demand, mainly for merchandize goods, and the curtailing of passenger travel, holidays, and entertainment. It should be noted, however, that the contraction in overall demand experienced over the course of the whole of 2020 has not been as dramatic as many analysts had predicted and, to the benefit of the shipping industry, the same was also true for international trade. The reason was because the contraction of demand experienced in some sectors had been compensated for by an increase in demand in others, such as electronic equipment (e.g., computers and peripherals, video game consoles etc.); mobile phones; exercise equipment; home-improvement and gardening materials and last but by no means least, medical equipment, such as surgical masks, gowns and disinfectants, most of which were manufactured in China.
In addition, it should not be forgotten that during the various lockdowns of the first half of the year (H1 2020), inventories were run down, as evidenced by the substantial restocking that took place in the second half of 2020 (H2 2020). This restocking wave, combined with an increased demand for consumer products, initiated a global supply chain crisis which lasted through 2021 and the first half of 2022. The peak in demand was partly fed by extensive COVID-related financial support packages implemented by governments in North America and Europe, and the further easing of monetary policies. The resulting excess demand pushed the global logistics system to its limits and became one of the root causes of high inflation (BIS, 2022).
The primary objective of this chapter is to identify the effects and implications of a major disruptor (such as the COVID-19 pandemic) on the activities, operations, management structure and performance of the international shipping and ports industries. Hopefully, lessons learned from our analysis could be useful in addressing other disruptors or uncertainties in and around ports and the global maritime landscape by and large. These emerge constantly, both in number and severity, due intensified competition and the need for ‘lean and mean’ operations for firm survival. Examples of such disruptions range from the effects of wind on high-stacked containers in the yard, to a labour strike or the loss of hundreds of millions of euros because of a successful ransomware cyberattack. Our analysis is undertaken by positioning the immediate impact and potential longer-term implications of this significant disruptor (COVID-19) within the wider context of contemporary research in the area of maritime economics. What follows, therefore, is a critical assessment of some of the key issues and themes in maritime economics research, attempting at the same time to propose new avenues of thought for further port research in a post COVID-19 era. We summarize the main developments by identifying trends and exploring research challenges, gaps and points of (re)orientation. Instead of providing answers, therefore, we provide inputs to ongoing discussions by sketching emerging and eminent issues in the hope that this will provide some guidance for further maritime studies in the field.
To this end, the rest of this work is organised as follows: In section 2, the short-term impact of the COVID-19 pandemic on the shipping industry is summarised, with a specific focus on liner (container) shipping. This provides the short-term demand-side context for the immediate and potentially longer-term response of the (container) ports sector, as the supplier of cargohandling services to the shipping industry. Section 3 outlines the confounding effects associated with the more stringent environmental regulations that have been imposed on the shipping industry immediately prior to, and following, the peak of the COVID-19 pandemic. The immediate short-term effect of the pandemic on (container) ports and the shipping industry’s response to it are outlined in section 4. The focus of the work is to be found in section 5, where the longer-term implications for the governance of ports is discussed, in relation to the industry’s geopolitical and commercial context, potential business models, the standard port governance typologies, the potential emergence of new approaches to port governance and the role played by the various ‘models’ and measures of port performance. Conclusions are drawn in section 6.
... Lee [7] applied the social network theory to port supply chain coordination and achieved optimization. Song and Panayides [8] proposed six parameters, including information and communication technologies and value-added services, to reflect the degree of port integration, which better presented logical relationships. Tian [9] established a return subcontract model of logistics service supply chain. ...
Considering the port function’s importance, the supply chain’s overall and individual revenues, and the port supply chain’s uniqueness, a game model for a two-stage port supply chain composed of port service providers and port enterprises was developed. Using revenue sharing contracts (RSCs) as a coordination mechanism, game equilibriums were investigated under two conditions: price-sensitive or price-insensitive port logistics service demand. The results suggested that RSCs can achieve Pareto improvement in both cases, thereby coordinating port supply chain revenues. Led by the port logistics service provider and port enterprise, the coordination mechanisms based on RSCs of port supply chain were discussed using logistics service capacity as the coordination link. Despite differing decision orders, the RSC model can coordinate the port’s supply chain with its service provider, while the port and logistics service provider determine the retention ratio. This paper also proposed coordination measures for the Nantong Port, one of the most important ports in China, to maximize the logistics capacity of iron ore supply chain and enhance the port logistics’ value-added services.
... cargo handling in the global supply chain. In addition, the logistic system is a key element in seaport activities and deal with the role of supply chain integration in seaport activities Song and Panayides 2008;Tongzon, Chang, and Lee 2009;Hall, O'Brien, and Woudsma 2013). ...
This paper aims to study the relationship between port infrastructure quality, logistics quality and competence and economic structure. The study depends on balanced panel data from 15 Mediterranean countries between 2010 and 2018. It applies an econometric analysis using several hypotheses. The results reveal a significant correlation between port infrastructure and logistics quality and competence hypothesis. It shows also that port infrastructure quality is highly influenced by logistics quality and competence. So, to keep seaports competitive, the port quality infrastructure is required, also to be evolved with the logistic services quality progress in the maritime industry. Moreover, there is a need to optimise all economic structure factors to attain logistic chain benefits and to improve port infrastructure quality.
... Changes in supply chains are forcing ports and terminals to seek effective integration in these supply chains when delivering value to shippers and third-party logistics service providers (Robinson, 2002;Mangan et al., 2008). Song and Panayides (2008) provided a conceptual contribution to the measurement and quantification of such integration efforts whose success, however, has also been questioned by Magnan and van der Horst (2020), in the case of certain major European ports. ...
... Changes in supply chains are forcing ports and terminals to seek effective integration in these supply chains when delivering value to shippers and third-party logistics service providers (Robinson, 2002;Mangan et al., 2008). Song and Panayides (2008) provided a conceptual contribution to the measurement and quantification of such integration efforts whose success, however, has also been questioned by Magnan and van der Horst (2020), in the case of certain major European ports. ...
The primary objective of this chapter is to identify the effects and implications of a major disruptor (the COVID-19 pandemic) on the activities, operations, management structure and performance of the international ports industry. The analysis is undertaken by positioning the immediate impact and potential longer-term implications of this significant disruptor within the wider context of contemporary research in the field of port economics. What follows, therefore, is a critical assessment of some of the key issues and themes in port economics research, attempting at the same time to propose new thought avenues for further port research in a post COVID-19 era. We summarize the main developments by identifying trends and exploring research challenges, gaps and points of (re) orientation. Instead of providing answers, therefore, we provide inputs to ongoing discussions by sketching emerging and eminent issues in the hope that this will provide some guidance for further port studies in the field.
... Port competition has evolved from attracting port users to providing value to supply chain consumers. Ports must improve their supply chain coordination and cooperation ability to remain competitive and integrate into the global supply chain (Song and Photis 2008). Under higher standards sustainable management, port companies aims for long-term sustainable development by balancing economic growth, environmental protection, and social progress (Taljaard et al. 2021). ...
The continuous investment and expansion of ports has introduced new requirements for the sustainable development of seaports. Port competitiveness is an increasingly relevant subject due to the value that ports create for enterprises in the maritime supply chain. As the functions and requirements of ports evolve, this article aims to present an up-to-date review of the research trends and future directions of port competitiveness. A systematic literature review was performed to comprehensively gather and review 81 journal papers on port competitiveness published in the past two decades. The result shows a hierarchy of the top ten port competitiveness drivers based on their research frequency in the literature, categorised into four aspects. The frequency ranking of port competitiveness strategy is further summarised based on the reviewed papers. This paper also provides a critical analysis of port competitiveness mechanism in order to identify research trends, gaps, and future research directions.
... Changes in supply chains are forcing ports and terminals to seek effective integration in these supply chains when delivering value to shippers and third-party logistics service providers (Robinson, 2002;Mangan et al., 2008). Song and Panayides (2008) provided a conceptual contribution to the measurement and quantification of such integration efforts whose success, however, has also been questioned by Magnan and van der Horst (2020), in the case of certain major European ports. ...
Liber Amicorum presented to Prof. dr. Harry Geerlings
... From the RDT's view, the seamless activity at a port is determined by the alignment of the processes from inbound to outbound, and vice-versa (Denktas-Sakar and Karatas-Cetin, 2012). The greater the harmony that exists between the stakeholders means that each chain of activities can be planned, implemented, and evaluated optimally, which increases the logistics performance at the port (Song and Panayides, 2008). ...
Container ports play a significant role in the supply chain, but their poor performance has an impact on the logistics costs at ports. Organizations seek to gain cost advantages by reducing their logistics costs, which consist of their transportation, inventory, and administrative costs. Logistics costs are the result of logistics activities from upstream to downstream. However, there is very little literature investigating the impact of container ports’ performance on logistics costs on the manufacturer’s side, and for the logistics service provider (LSP). To fill this gap, this paper
used the resources dependence theory (RDT) and stakeholder theory to investigate the root causes and impact of problems at ports on the logistical costs perceived by port operators, producers, and the LSPs. To capture the real problem at the ports and the consequences for logistics costs, this paper used a case study approach. This paper drew the conclusion that loading and unloading activities at a container port cause the high transportation, inventory, and administrative costs. Inefficient supply chain activities trigger logistics costs, so that supply chain integration is the key to reducing these logistics costs.
... Studies on the revitalisation of the waterfront within a city have also attracted recent attention (Van den Berghe et al., 2018). Some scholars studied the impact of terminal integration on port performance from the perspective of the supply chain (Song and Panayides, 2008) and compared the similarities and differences of the internationalisation models of European and North American terminals (Slack and Frémont, 2005), the temporal and spatial evolution of terminal operation efficiency (Ye et al., 2020), and the entry strategy of inland container terminals . ...
As an important link in the global network of value chains and supply chains, the evolution of the function of modern ports depends on changes in the distribution of freight volume and shipping routes among ports, along with changes in terms of interdependence and spatial differentiation between various port and shipping service enterprises (PSSEs), such as shipping companies, multimodal transport providers, freight forwarders, and shipping financial institutions. On the basis of defining the connotation of PSSEs, this study takes the Yangtze River Delta as a research case and uses the three-axis rotation method, standard deviational ellipse, and spatial interpolation simulation to analyse the distribution pattern and evolution characteristics of PSSEs from 2002 to 2019. The discrete regression model was used to explore the main factors affecting the location choice of various PSSEs. The characteristics of the spatial and temporal evolution of PSSEs in the Yangtze River Delta are as follows: (1) The structure of the PSSEs in the Yangtze River Delta is in the process of continuous upgrading. It presents a 'medium-high-low' pattern in which medium-end enterprises are dominant, and high-end enterprises are increasing rapidly. (2) The spatial distribution of low-and high-end enterprises is concentrated, and medium-end enterprises are more dispersed. The distribution centre of medium-and low-end enterprises moves westward , while the distribution centre of high-end enterprises turns eastward. (3) The growth rates of medium-and high-end enterprises are much higher than those of low-end enterprises. The analysis of location factors based on the conditional logit model demonstrates that the factors affecting PSSEs are becoming increasingly complex. Besides the influence of traditional location factors such as the economy and transportation of the hinterland, they are also affected by emerging factors such as informatization and the level of financial development. Moreover, the impact of external factors, such as globalization, marketisation, and servitisation, is also rising significantly.
... Rutter et al. (2017) support this research conclusions, indicating in their research that port-authorities should analyze product developments and logistical manners linked to port-services to coordinate market research as bases for effective port marketing strategy; together with customer relation management, communication and employee involvement strategies (Alen et al., 2021). According to (Song et al. (2008)), a prosperous marketing strategy focuses on distinctive competencies through which a port can deliver value to various stakeholders; when such marketing actions are effective, ports are able to cope with demand and attract additional demand. ...
In the world today, seaports play a crucial role in the economic and environmental sustainability of tourism destination. Seaports and their related facilities of different types and sizes are competing to capture market share globally. This study seeks to investigate the impact of seaport marketing mix strategies on customer satisfaction, identifying the significant marketing mix tactic that should be of focus to cities with seaports. This quantitative research uses deductive approach to develop a proposed model with various hypotheses to be tested. It is considered descriptive research as it seeks to depict the characteristics of a population being studied as well as to answer questions that pertain and explain seaport marketing strategies and its impact on customer satisfaction. Online questionnaires are distributed through convenience sampling during cross-sectional timeframe- December 2021 and January 2022. Results show that seaport-services, promotion, staff, physical evidence, and process has a positive significant impact customer satisfaction with the seaport. Seaport place/distribution and price are insignificant on customer satisfaction. This research is among ongoing attempts to study seaport marketing so to improve the current tourism industry of a nation. The focus is on seaport satisfaction, uncovering the significant marketing mix experiences to propose an effective marketing strategy. This research thus provides a significant addition to marketing knowledge for an increasingly important sector of the tourism industry, illustrating the vitality of the marketing mix and how the marketing mix elements vary from one field to another field.
... El puerto tiene un papel relevante en la cadena logística de mercancías jugando un rol activo, además de que permite conectar diversos modos de transporte y concentrar carga [1]. En una cadena de suministro se requiere que las funciones de negocios estén coordinadas de manera sistemática y estratégica para optimizar el rendimiento a largo plazo de las empresas que componen la cadena de suministro [2]. ...
The aim of this research is to identify and analyze the role of information and communications technologies (ICT) in the port supply chain of Manzanillo, Mexico, specifically in the customs clearance procedures of containerized cargo. The research provides important elements for further analysis on the effect of ICT in the entire supply chain. Through the application of a survey of customs agencies, shipping lines, transport carrier companies and in-bond facilities, using stratified sampling, it was possible to identify and analyze that ICT are relevant in the customs clearance procedures of containerized cargo in the port of Manzanillo being important electronic connectivity systems and identification and traceability systems.
... Information systems and technologies play an increasingly important role in supporting the smooth operation of the maritime supply chain by sharing information between organisations (Xu, Shi, and Chen 2022;Zeng, Chan, and Pawar 2020;Song and Panayides 2008). Therefore, enterprises should actively promote maritime information management, realise information sharing, exchange and flow among partners to make them an organic whole (Liu, Zhang, and Zhen 2021a;Lind et al. 2021). ...
With the increasing pressure of global climate change, the government and enterprises are actively taking measures to accelerate emission reduction in the shipping industry. To analyse the optimal adoption strategies of carbon abatement technologies for enterprises in a turbulent environment under the cap-and-trade scheme, we construct the Stackelberg game model in the maritime supply chain and conduct a comparative analysis of profits and carbon emissions to explore the interaction between information sharing and technology adoption. The results show: (1) the impact of information sharing on profits varies under different technological conditions, and the optimal technology adoption will change with carbon price; (2) information sharing will not change total carbon emissions but significantly reduce wasted carbon emissions; (3) considering consumer's green preference, information sharing can benefit the port and the shipping company simultaneously, forming a win–win situation. This study guides maritime supply chain members in technology adoption under market uncertainty.
... Alguns autores ressaltam a importância da agilidade para o ambiente portuário, que envolve ser proativo nas cadeias de suprimentos, facilitar a integração intermodal, além da integração organizacional e a parceria entre portos e seus usuários. Atualmente os portos são reconhecidos como alavancas do desenvolvimento econômico (NOTTEBOOM et al., 2005), uma vez que um porto eficiente aumenta a produtividade dos principais meios de produção (capital e trabalho) e a lucratividade das unidades produtoras, permitindo assim maiores níveis de lucratividade e geração de emprego e renda (SONG et al., 2008). ...
Os avanços do comércio mundial nas últimas décadas, com o acelerado desenvolvimento de novas tecnologias, bem como a integração comercial entre os países, aceleraram também o processo de interação entre as cadeias logísticas mundiais, de modo que a competitividade passou a ser avaliada mundialmente, em um cenário altamente concorrente. O transporte passou a ser um fator de extrema necessidade no planejamento das organizações, uma vez que a redução de custos e o aumento da eficiência trazem uma vantagem competitiva ao mercado. Assim, as estruturas portuárias são os principais caminhos pelos quais a riqueza produzida é movimentada e comercializada, sendo necessário avaliar o desempenho na movimentação de cargas em portos e terminais portuários, de modo que sejam reconhecidos como alavancas para o desenvolvimento econômico, o aumento da produtividade e a geração de emprego e renda. Dessa forma, o presente artigo buscou mapear e analisar a literatura relevante existente sobre a temática, com base na utilização do instrumento de intervenção Knowledge Development Process-Constructivist (ProKnow-C) para nortear a seleção e análise crítica da literatura de forma sistemática. Os resultados encontrados demonstram que a literatura atual em relação à temática se preocupa com mais intensidade sobre o contexto de gestão, mercado e infraestrutura eficiência e operacional, com domínio dos indicadores ligados à produtividade operacional das cargas e sua localização geográfica em relação aos ambientes portuários, demonstrando grande preocupação com a redução de custos aos usuários e ao consumidor final. Aponta-se como oportunidade de pesquisa o desenvolvimento de uma avaliação de desempenho feita de forma integrada e holística, levando em consideração as percepções do(s) gestores(es), uma vez que os artigos do portfólio bibliográfico (PB) abordam e avaliam, em sua maioria, apenas um fragmento do contexto, em vez da avaliação global e estruturada. Isso leva a uma visão fracionada da performance, o que pode conduzir a decisões equivocadas, além de deixar de considerar e perceber oportunidades mais vantajosas.
... Sharapiyeva et al. (2019) proved the importance of port infrastructure quality and logistics as well efficiency, while Dwarakisha and Salima (2015) reviewed the role and benefits of ports in the development of coastal nation. Song and Panayides (2008) studied the integration and competitiveness of ports in global supply chain perspectives using multiple regressions and the research has emphasized on a positive relation between technology adoption and high quality of the services offered by the ports. Yang et al. (2019) evaluated the function and the development directions of Chinese ports. ...
This study is an endeavor to forecast the quality of port infrastructure of Asian port economies. A sample of 32 economies are selected counting the year from 2015-2019. Data are collected from the Global Competitiveness Report. A data forecasting algorithm, the GM (1, 1) approach, is applied, and finally the economies are clustered with their forecasted values using Hierarchical Cluster Analysis (HCA). The empirical findings demonstrated that there would be change in the quality of port infrastructure. Economies with high quality of port infrastructure will be the best performer, while the others with poor infrastructure will do better in future as well. The modified Grey model showed excellent accuracy and better performance in forecasting the quality of port infrastructure. The forecasting values of each country offer valuable insight to formulate individual policies and strategies. The port facilitators and the decision makers would be able to distinguish the higher and the lower performer from the cluster analysis and focus on the underperformed region undertaking individual measures to improve the quality of their port infrastructure as well. Additionally, it will contribute as a hybrid methodology that the individual country can apply practically in prediction and clustering them to take decision on the quality of port infrastructure for next 5 years. Finally, it will theoretically extend the frontier of knowledge in port infrastructure research. © 2022 Operations and Supply Chain Management Forum. All rights reserved.
... This appears to be the result of increased pressure on ports by ever larger vessels, visiting ports more frequently. In this regard, our study supports the findings of earlier studies regarding the need for a proactive role of ports in the port call process (Paixão and Marlow 2003;Song and Panayides 2008;Carbone and De Martino 2003). As opposed to the current principle, whereby vessel visits are scheduled in fixed time windows, based on terminal planning only, and port actors have to react, ports can require vessels to call the port to arrange their just-in-time arrivals, considering the availability of all port resources (Lind 2019). ...
Reliability of service times has long been a concern of many ports around the world. This paper presents an approach to mitigate delays in service times through improved information sharing in ports. The approach is based on a mapping of information sharing links and their association to the root causes of frequently occurring delays. We identify the kind of information which is critical in mitigating delays. Critical information links are then re-ordered to create an information sharing arrangement between the actors, which further condenses and simplifies the required information sharing actions. We apply the proposed approach to the Port of Rotterdam. Quantitative data of 28,000 port calls is complemented by qualitative data collected through direct observations and expert interviews with port actors, including the pilot organization, a tugboat company, the boatmen organization, the harbour master, a terminal and a vessel agent. Besides the suggested arrangement for information sharing, the case reveals the critical position of pilots, a vulnerable position of tugboat companies and the minimal contribution made by the terminal towards information sharing. The increased pressure on ports by ever larger vessels seems to bear its fair share for delays and bottlenecks in the smooth execution of port operations.
... Changes in supply chains have forced ports and terminals to seek effective integration in these supply chains when delivering value to shippers and third-party logistics service providers (Robinson, 2002;Mangan et al., 2008). Song and Panayides (2008) provide a conceptual contribution to the measurement and quantification of such integration efforts. From existing literature, we can extract and deduce the main market requirements of logistics companies and shippers (Nir et al., 2003;Tiwari et al., 2003): a competitive price of port services, reliable services, low time costs for goods, cargo security and damage prevention, facilitation using information platforms and a good intermodal connectivity to the hinterland (box A in Figure 1). ...
Background
In a case report of a progressive multiple sclerosis with cerebellar impairments, we reported that synchronisation of steps to beats was possible only at −12% of usual walking cadence during 1 minute of walking.
Objectives and methods
Here, we investigate the effect of synchronisation using two different alignment approaches on the patient’s gait pattern over 2 minutes of walking, compared to walking in silence.
Results and conclusion
This proof of concept showed that the adaptive approach was successful resulting in an improved gait pattern compared to the other conditions, providing preliminary evidence to support a full-scale intervention study.
This study uses primary data from a survey of 370 observations in Ho Chi Minh City, Vietnam, and adopts the Exploratory Factor Analysis, Confirmatory Factor Analysis (CFA), and Linear Regression Modeling (LRM) with Bootstrap analysis for a reliable test of LRM. Its result shows that factors affecting Seaport competitiveness included Geographical Location, Connectivity, Information Technology, Facilities, Reputation, and Port authority.
Інтеграційні процеси є позитивним потенціалом стійкості та сталого розвитку суб’єктів морської торгівлі. В статті проаналізовано динаміку світового індексу контейнерів Drewry та пропускної здатності контейнерів і вантажопрохідності в контейнерному порту в Шанхаї, де виявлено, що зниження попиту на морські перевезення дали змогу подолати величезні відставання роботи та скорочення часу очікування в портах та забезпечити доходну складову, пов’язану із кризовими економічними процесами. Досліджено найкращі контейнерні лінії світу протягом 2020-2022 років з виокремленням їх особливостей розвитку та проаналізовано потенціал найбільших десяти контейнерних ліній світу на період ІІІ кварталу 2023 року, де визначено, що не всі компанії мають позитивні зрушення свого розвитку, утримуючи лідируючі позиції у відповідному рейтингу. Розглянуто можливості розвитку суб’єктів інтеграційних процесів морської торгівлі, зосереджуючись на Maersk, як прикладу вертикальної інтеграції контейнерної логістики та Hong Kong Seaport Alliance – горизонтальної, де представлено головні їх стратегічні напрямки діяльності на умовах сталості. За результатами проведених досліджень запропоновано шляхи сприяння подальшого сталого розвитку морської торгівлі на умовах розширення та удосконалення техніко-технологічного оснащення та впливу урядів країн для прискорення відповідного процесу.
Purpose
Container liner shipping companies started expanding their business by investing in container port terminals in the late 1990s. This market entry results in an extensive presence of vertically integrated liners and terminals. This study aims to explore the competition effects of this vertical integration trend based on a regional (European) analysis. In particular, it extracts lessons from the European Commission (EC) cases on the competition effects of vertical integration. The critical analysis of the cases examined at the institutional level intends to reach conclusions on whether liner–terminal vertical integration harmed or advanced competition in the relevant markets and/or the extent that there is a need to revise the current policy practices.
Design/methodology/approach
This study critically assesses the EC’s decisional practices in port container terminal vertical mergers in the last 25 years (1997–2021). Based on a literature review comparing maritime and competition economists' perspectives, it reviews the types of mergers examined, the methodology followed for relevant market definition and calculation of market shares, and the estimated competition effects. The Hamburg-Le Havre area is the port range used as a case study for comparing the decisional practice with actual market developments. These container ports serve the greatest consuming market of final and intermediate goods in Europe and are gateways to Central and Eastern Europe.
Findings
The assessment identifies a need for expanding the investigation as a precondition for reaching conclusions on both the anti and pro-competitive effects. First, only a limited number of transactions have been notified to the EC. Second, the empirical research identified a gap in this process, as there were no decisions (phase I) on vertical mergers between 2008 and 2016. Third, the ex-ante assessment has not applied a phase II in-depth analysis to any case due to the absence of competition concerns. Finally, due to the absence of complaints, there is a lack of any ex post assessment of the effects of vertical integration.
Research limitations/implications
This assessment is important for understanding the current and emerging features of intra-port and inter-port competition and the potential effects that the continuation and expansion of liner companies' vertical integration strategies will have along maritime supply chains. It also contributes to the broader discussion on liner companies' strategies, such as the research and policy-making efforts around the globe to understand the impact of both vertical and horizontal integration.
Practical implications
These discussions are critical for a diversity of businesses that use liner shipping services or provide facilities and services to container shipping lines or ports. They are important for the interests of customers and consumers as they could inform any needed re-visiting of competition policy to protect from the dominance of any market developments that would lead to conditions limiting competition. Expanding analysis on the competition effects of non-notified mergers would help a better understanding of market changes.
Social implications
Enhancing competition and limiting monopolies is valuable from a consumer's perspective. This is more so in the case of maritime trade that serves the needs of societies. The study contributes by generating a better understanding of how decision-makers have worked towards that direction and what realignments are worthy.
Originality/value
There are no previous comprehensive reviews and analyses of the ways that policy-makers at the regional level have addressed the competition effects of vertical integration strategies of liner shipping companies when enhancing competition is valuable from a consumer perspective. Comparing maritime economists and competition. The study, via its literature review, also offers a comparison of maritime and competition perspectives on these competition effects, allowing positioning of how effective decisional-making practices have been.
Ekonomik büyüme açısından liman altyapı kalitesinin sağlanması ve limanlarda gerçekleştirilen ekonomik faaliyetlerin sürdürülmesi için alt ve üstyapıya dönük gerekli önlemlerin alınması önem arz etmektedir. Bu makalede 2006-2019 arasındaki dönemde, BRICS-T ülkelerindeki liman altyapı kalitesi ile ekonomik büyüme arasındaki ilişki, Dünya Bankası ve WEF veri tabanlarından elde edilen yıllık veriler kullanılarak, panel nedensellik testi ile analiz edilmiştir. Analizde Parks-Kmenta tahmincisi ile katsayılar tahmin edilerek, Pairwise Panel Nedensellik Testi aracılığıyla da seriler arasındaki ilişkinin yönü ortaya konmuştur. Analizden elde edilen bulgulara göre; BRICS-T ülkelerinde liman altyapı kalitesinden ekonomik büyümeye doğru tek yönlü bir nedensellik ilişkisi bulunmuş ve BRICS-T ülkelerinin liman altyapı kalitesindeki %1’lik bir artışın, ekonomik büyümeyi 0.20 birim arttırmakta olduğu sonucuna ulaşılmıştır.
Purpose: The primary purpose of this paper is to investigate whether the Road Freight Transport Sector in Zimbabwe considers the value of time in their operations and how this affects their competitiveness. Methodology: This quantitative study involves a survey of 384 randomly selected companies from a population of 1256 registered road freight companies in Zimbabwe. The data collected was analyzed using SPSS. Results: The study found that all the registered companies that participated in the research confirmed that the value of time phenomenon was alien to their business practices as they worked on assumptions. They also indicated a loss of business due to customer complaints. Theoretical Contribution: This paper contributes to the field by highlighting the importance of considering the value of time in business operations, particularly in the road freight transport sector. It provides empirical evidence supporting the theory that the value of time can significantly impact a firm’s competitiveness. Practical Implications: The findings of this study have practical implications for companies in the road freight transport sector. The study recommends policy formulation for companies emphasizing standard operating procedures and good time management to enhance competitiveness. This could lead to improved customer satisfaction and business success.
Purpose
It is claimed that port supply chain integration (PSCI), thanks to its attributes, holds a potential to trigger a port to strategically sustain performance- and competitiveness-measures through strengthening and/or reinforcing an array of port sustainability aspects. This paper aims to empirically investigate the existent influence of PSCI on economic and environmental pillars of port sustainability.
Design/methodology/approach
Based on a resource-based view, this paper hypothesises that PSCI has a certain impact on port “economic” sustainability (PECS) and port “environmental” sustainability (PENS). Measures of PSCI, PECS and PENS are refined and validated using data collected from the maritime logistics industry in Egypt, and structural equation modelling is employed to test the hypothetical relationships.
Findings
The results indicate that a port having adopted an integrative strategy into supply chains could enhance its cost and operational efficiency, financial and investment situation, while offering high-quality services to its customers. Similarly, PSCI is emphatically correlated with water and air pollution management, energy efficiency and green port management practices.
Research limitations/implications
Having identified the acute potential of PSCI for sustainable development in maritime logistics and supply chains, this line of research allows port operators and/or authorities to better understand strategic options with which they are able to improve their sustainability practices. This paper is, however, limited only to two dimensions of sustainability by not exploring the “social” aspect of port sustainability due to data-related issues.
Originality/value
This line of research could be regarded as an extended application from other industrial sectors to the port industry in a way to empirically examine the inclusive relationship of PSCI with economic and environmental parameters. The findings from this research make a due contribution to the field of port sustainability in general and Egyptian ports in particular.
This chapter focusses upon the relationship between governance, time and space and forms a basis for the later discussion on maritime and outer space governance and the constraints that make these considerations so difficult. It also provides a framework for the comparison of the two sectors from a governance perspective and how there exists considerable overlap in the way that governance is considered and could be developed further.Maritime governance is discussed in detail and the problems that affect its appropriate and measured application noting the inadequacies characterised by state-centrism, institutionalism, shipowner domination and the static nature of current approaches that do not reflect the nature of the sector. Models of maritime governance are outlined. Current approaches to outer space governance are then discussed and the (similar) inadequacies are outlined. In both sectors the role of jurisdictions, agencies, objectives and instruments is detailed. The role of the United Nations (UN), the European Union (EU) and significant individual nation-states is also discussed. Issues including monopolies, competition, externalities, public goods, markets, infrastructure, needs, integration, coordination, votes, pressure groups, social issues, tradition, employment clustering and economic contribution are also detailed.
The information exchange between the forwarder and vessel operating common carrier (VOCC) directly leads to a shortage or surplus of capacity and influences operational efficiency. Meanwhile, the development of information technology has inspired VOCCs to establish online booking platforms, which has changed the traditional booking behavior of shippers. Thus, this paper investigates the equilibriums of platform encroachment and information sharing with two symmetric VOCCs and a forwarder. Using a game-theoretic model, it can be characterized as Stackelberg-Nash game with Bertrand competition to determine whether to encroach existing freight forwarding market and share information or not. We observe whether freight forwarder shared information is affected by the encroachment strategy of VOCCs and the market demand state. Further, the encroachment strategy can prompt freight forwarder to share information with VOCCs if the magnitude of high demand is lower. In addition, for VOCCs, the best chance of establishing online platforms is when the magnitude of high demand is relatively low, not when the demand state has increased.
Les relations entre le port et la supply chain font l'objet depuis quelques années d'un intérêt croissant dans la recherche anglo-saxonne. Malheureusement, de telles discussions sont totalement absentes dans la recherche francophone. L'objectif de cet article est de contribuer à élucider les liens qu'entretiennent les ports et les supply chains. En se basant sur une littérature anglo-saxonne pertinente, l'article identifie et discute, entre autres, le rôle du port dans la supply chain, les natures de l'intégration du port avec la supply chain ou les bénéfices de l'intégration du port dans la supply chain. La recherche présente un réel intérêt sur le plan théorique et managérial surtout dans le monde francophone. Par exemple, elle éclaire les décideurs portuaires sur les politiques orientées intégration du port avec la supply chain.
Abstract The relationship between the port and the supply chain has for some years been the subject of growing interest in Anglo-Saxon research. Unfortunately, such discussions are completely absent in French-language research. The objective of this article is to help elucidate the links between ports and supply chains. Based on relevant Anglo-Saxon literature, the research identifies and discuss, among other things, the role of the port in the supply chain, the natures of the integration of the port with the supply chain or the benefits of port the supply chain integration. The research is of real interest on a theoretical and managerial level, especially in the French-speaking world. For example, it enlightens port decision-makers on policies aimed at integrating the port with the supply chain.
ASSESSMENT OF THE MARITIME TRANSPORT SECTOR ATTRACTIVENESS
ON THE BASIS OF THEORETICAL SEAPORT GOVERNANCE MODEL
The scientific context of the problem is summarized in the following problematic
questions:
1. What are the theoretical assumptions of the seaport governance and which seaport
governance template and the seaport governance model is formed on its basis and
is effective in shaping the attractiveness of the maritime transport sector?
2. How can the attractiveness of the maritime transport sector be assessed on the basis
of the theoretical model of seaport governance?
The object of the research is the evaluation of the attractiveness of the maritime transport sector based on the theoretical seaport governance model.
The aim of the research is to analyze the theoretical preconditions of the state seaport governance to develop a methodology for assessing the attractiveness of the maritime
transport sector based on the theoretical model of the seaport governance applicable in the eastern part of the Baltic Sea coastal region.
Complexities in today’s Supply Chain Networks (SCN) have exposed them to various risks, vulnerabilities, and disruptions. Recently, the Chinese $62 billion investment in the wake of the China–Pakistan Economic Corridor (CPEC), which includes a network of highways and railways projects, will be a milestone for regional connectivity. Through CPEC, China aims to connect its north-western province Xinjiang to global supply chain networks via Gwadar port Pakistan. Since 9/11, Pakistan has become a terrorism stuck state, resulting in the loss of political and economic stability, reducing the infrastructure development and Foreign Direct Investment (FDI). Under these circumstances, risk assessment of supply chain networks in a responsive way toward these problems is crucial for authorities. This paper aims to identify and investigate the relationship between supply chain risks using the Interpretive Structural Modelling (ISM) technique. Additionally, interdependencies among risks have been calculated, and classification is done via cross-impact matrix multiplication applied to classification (MICMAC) analysis based on corresponding dependency and driving power. Results show that political and economic stability has the highest driving power and lowest dependence power, indicating that all the risks are directly or indirectly associated with it. Simultaneously, epidemics and ecosystem changes have the highest dependence power and most insufficient driving power, which shows its significant dependency on other risks. Finally, based on our model, authorities can design a resilient supply chain network responsive to several risks, and efficient operations are assured.
The aim of this study is measuring and comparing the efficiencies of 26
ports that are capable of handling containerized cargo in Turkey by Data Envelopment
Analysis method. Findings of the study and potential improvement points are
intended to be a conductor for future plans of the ports. According to the
findings, it has been concluded that Marport, Mersin MIP,
Asyaport and Kumport container terminals are relatively efficient among the
evaluated terminals. However, Trabzon, Derince Safiport and Akcansa Ambarli
container terminals have been identified as the least efficient.
As integrated supply-chain management (SCM) is now at the epicentre of business transformation, firms are breaking down boundaries between internal functions, as well as between the enterprise itself and key partners in the value chain (e.g. customers, distributors, suppliers and carriers). One of the main goals of such new management approach is to get everyone in the supply chain into a common platform of logistics transactions and information systems.Against such background, the aim of this work is to analyse how and if port operators can face the challenge of higher integration, on the assumption that the higher the integration between the actors the higher the competitiveness of the whole supply chain.Accordingly, we adopted an SCM approach in the analysis of the port of Le Havre in Renault's supply chain. More specifically, we referred to the Lambert tri-dimensional model based on supply chain's structure (actors), key business processes and links between actors. The field work—which mainly consisted of semi-structured interviews to Renault, logistics and port operators, and, finally, to the Le Havre Port Authority—was crucial to gather the needed information.
Inland distribution is becoming a very important dimension of the globalization / maritime transportation / freight distribution paradigm. Observed logistics integration and network orientation in the port and maritime industry have redefined the functional role of ports in value chains and have generated new patterns of freight distribution and new approaches to port hierarchy. Existing models on the spatial and functional evolution of ports and port systems only partially fit into the new freight distribution paradigm. This paper aims to add to existing literature by introducing a port regionalization phase in port and port system development. It is demonstrated that the regionalization phase and associated hinterland concepts demand new approaches to port governance and a functional focus that goes beyond the traditional port perimeter.
In this article, the authors attempt to develop an improved market orientation scale built on Kohli, Jaworski, and Kumar’s
market orientation scale (MARKOR). The modified scale is then compared with the MARKOR scale in a validation study. The authors
argue that the scale improves operationalization of the market orientation construct, and the results indicate that the psychometric
properties of the new scale are superior to those of the MARKOR scale. Implications of the results are discussed, and a future
research agenda is offered.
Valid predictions for the direction of nonresponse bias were obtained from subjective estimates and extrapolations in an analysis of mail survey data from published studies. For estimates of the magnitude of bias, the use of extrapolations led to substantial improvements over a strategy of not using extrapolations.
This article examines methods for estimating nonresponse bias. Predictions of the direction of nonresponse bias are evaluated, and estimates are made of the magnitude of this bias. An attempt was made to include all relevant previously published studies. Methods For Estimating Nonresponse Bias
Recently, there has been a growing trend toward long-term relationships between manufacturers and their suppliers. Although much as been written about the benefits of this shift to manufacturers, little is known about the benefits to supplier firms. In this study, we empirically assess the impact of long-term relationships with specific customers on the performance of supplier firms using cross-sectional and longitudinal information available in the Compustat collection of data bases and the Compact Disclosure data base. Our results indicate that maintaining long-term relationships with select customers does not come at the expense of the rate of sales growth. Suppliers in long-term relationships are able to achieve the same level of growth as firms that employ a transactional approach to servicing their customers. These suppliers are able to reduce costs over time through better inventory utilization; however, this reduction in cost seems to be bargained away by their customers through lower prices over time. Finally, the supplier firms in long-term relationships achieve higher profitability by differentially reducing their discretionary expenses such as selling, general, and administrative overhead costs to a greater extent than their counterparts who use a transactional approach to servicing their customers.
Recently, there has been a growing trend toward long-term relationships between manufacturers and their suppliers. Although much as been written about the benefits of this shift to manufacturers, little is known about the benefits to supplier firms. In this study, we empirically assess the impact of long-term relationships with specific customers on the performance of supplier firms using cross-sectional and longitudinal information available in the "Compustat" collection of data bases and the "Compact Disclosure" data base. Our results indicate that maintaining long-term relationships with select customers does not come at the expense of the rate of sales growth. Suppliers in long-term relationships are able to achieve the same level of growth as firms that employ a transactional approach to servicing their customers. These suppliers are able to reduce costs over time through better inventory utilization; however, this reduction in cost seems to be bargained away by their customers through lower prices over time. Finally, the supplier firms in long-term relationships achieve higher profitability by differentially reducing their discretionary expenses such as selling, general, and administrative overhead costs to a greater extent than their counterparts who use a transactional approach to servicing their customers.
This paper argues that, with the rapid and pervasive restructuring of supply chains and of the logistics pathways in which ports are embedded, existing paradigms no longer offer adequate insights into the functions of ports or port authorities. Rather, ports must now be seen as elements in value-driven chain systems or in value chain constellations. They deliver value to shippers and to third party service providers; customer segmentation and targeting is on the basis of a clearly specified value proposition; and the port captures value for itself and for the chain in which it is embedded. The role of ports and port authorities, and the way in which they position themselves in the new business environments beyond 2001 must be defined within a paradigm of ports as elements in value-driven chain systems, not simply as places with particular, if complex, functions.
The performance of marine terminals has generally been evaluated by comparing their actual throughputs with their optimum throughputs. The engineering approach that generally has been used to determine optimum throughputs may be appropriate when terminals have natural hinterlands. In a deregulated (competitive) environment in which the natural hinterlands of marine terminals have become diffused, the economic approach for determining optimum throughputs should be condiered. In such an environment, marine terminals are not only concerned with whether they can handle a given amount of cargo but also whether they can compete for such cargo.
It is no longer sufficient for a winning organisation to operate in isolation, however effective it may be in performing its core business. To survive, let alone win, it must be part of one or more supply chains producing world class performance. Each company in the chain must be internally ''lean'' but additionally must operate in a ''seamless'' environment in which all information relevant to the efficient operation of the total system is available on time and in an undistorted form. The term ''predator'' has been coined in the literature to describe the supply chain leader with the vision, drive, and determination to re-engineer the entire supply chain so as to satisfy end-customer needs. The paper reviews the techniques available to ''predators'' seeking to gain competitive advantage for their supply chains, including industrial engineering, operations engineering, production engineering, and information technology. Not all conceivable improvements can be implemented overnight, however desirable they might appear, hence the advocacy of simulation models within a decision support system so that top management can prioritise proposed Improvement Programmes against the relevant performance metric. In the example used to indicate the approach, the technological, organisational, and attitudinal problems to be solved by top management in achieving the seamless supply chain are all highlighted.
Ports have traditionally made use of quantitative measures to assess their performance. While contributing towards ranking a port in the worldwide context or even classifying ports according to their size, these provide little information about the quality of the services being offered. The trends in contemporary logistics and the emerging of the new economy mean that successful ports can no longer sustain this approach. It is therefore suggested that ports become agile. Agile ports entail a new approach to measuring port performance. Because its development requires the implementation of a two-stage integration process, internal and external, it is therefore proposed that a two-tier measurement of port performance indicators is also developed. The new port measurement indicators, besides considering quantitative aspects, will also focus on qualitative issues as they bring increasing visibility within the port environment and along the transport chain, enhancing a better integration of all supply chain logistics elements. Qualitative performance indicators are at the heart of lean ports and consequently of port networking. Additionally, they support a total quality port management system implementation which encourages continuous improvements. The objective of this paper is to suggest a set of new port performance indicators that measure lean port performance and sustain the subsequent development of agile ports.
This study investigates the strategic role of interfirm relationships through the concept of strategic integration. Following
the conceptual development of strategic integration, the author reports a study of its antecedents and performance outcomes.
Uncertainty was expected to have contextual effects in the development and outcomes of strategic integration in industrial
distribution channels. A survey of industrial equipment distributors revealed that dependence, flexibility, continuity expectations,
and relationship age encouraged the distributor's strategic integration of its supplier relationship. In addition, strategic
integration enhanced distributor financial performance. However, uncertainty did not play a role in the distributors' strategic
integration of their supplier relationships nor its effect on performance.
Although there is widespread recognition of the potential of ports as logistics centres, widely accepted performance measurements for such centres have yet to be developed. The essence of logistics and supply chain management is an integrative approach to the interaction of different processes and functions within a firm extended to a network of organizations for the purpose of cost reduction and customer satisfaction [11.
Stank , TP ,
Keller , SB and
Daugherty , PJ . 2001. Supply chain collaboration and logistics service performance. Journal of Business Logistics, 22(1): 29–47. [CrossRef]View all references]. The logistics approach often adopts a cost trade-off analysis between functions, processes and even supply chains [22.
Rushton A
Oxley J
Croucher P 2000 The Handbook of Logistics and Distribution Management (2nd Edn) London The Institute of Logistics and Transport, Kogan Page View all references]. This approach could be beneficial to port efficiency by directing port strategy towards relevant value-added logistics activities. This paper seeks to show that through conceptualizing ports from a logistics and supply chain management approach, it is possible to suggest a relevant framework of port performance. A proposed framework is tested in a survey of port managers and other international experts.
The paper considers in detail strategic changes occurring in the organizational context of intermodal transportation and discusses the application of economic approaches (primarily transaction-cost economics) for assessing the effectiveness of the appropriate governance structure in organizing the intermodal transport economic system. The paper reviews the developments in intermodal transportation, particularly in the context of logistics and supply chain management, and recognizes the trend for the formation of one-stop shopping megacarriers spurred by deregulation and market requirements. This culminates in the need to consider how companies should organize the economic governance of the intermodal transport system. The main governance structures include market (subcontracting) or hierarchy (internal organization). The transaction-cost economics approach is reviewed and applied at a conceptual level to provide the core basis upon which the assessment of the optimal governance structure in intermodal transport can be based. The review of the core economic principles indicates that the governance structure in intermodal transport is dependent on transaction costs, production costs and strategic considerations that a particular structure might entail and the policy implications thereof. The potential for empirical research in the application of the transaction-cost economics approach to intermodal transport is discussed and detailed direction for further empirical research is provided as well as discussion of policy implications particularly with respect to competition and antitrust.
Since the Second World War, ports have been going through an evolution which the United Nations Conference on Trade and Development (UNCTAD) refers to as generations. The generation of a port reflects whether the approach adopted by port authorities/operators in developing their activities is likely to be reactive or proactive. These activities start with the traditional ones (cargo loading and discharging) and end up with the establishment of a wide range of logistics and value-added activities, developed in conjunction with industrial and commercial businesses. This generation of ports, classified as third generation, would be sufficient if the world economic growth pattern could be forecast with any certainty. Unfortunately, this is not the case and the external environment today comprises constant changes that are reflected in the high levels of market uncertainty. To cope with this uncertainty it is suggested that ports should adopt a new logistics approach, agility, which has already been employed in other industries. This paper provides a definition of fourth generation ports and a methodology for implementing the concept of agile ports.
A critical element in the evolution of a fundamental body of knowledge in marketing, as well as for improved marketing practice, is the development of better measures of the variables with which marketers work. In this article an approach is outlined by which this goal can be achieved and portions of the approach are illustrated in terms of a job satisfaction measure.
Reports the results of a survey of manufacturing managers to assess
their perception of the changing manufacturing task and the role of the
manufacturing manager. Within this context investigates the contribution
of new manufacturing techniques and approaches, the involvement of
manufacturing staff in service factory roles and the steps to increase
integration across the value chain on manufacturing performance.
Common to all manufacturing companies is the need to control the
flow of material from suppliers, through the value adding processes and
distribution channels, to customers. The supply chain is the connected
series of activities which is concerned with planning, co-ordinating and
controlling material, parts and finished goods from supplier to
customer. Traditionally, the flow of material has been considered only
at an operational level. No longer, however, can the potential of
integrating the supply chain be ignored. Companies that manage the
supply chain as a single entity and ensure the appropriate use of tools
and techniques in order to meet the needs of the market, will not get
left behind in the fight for survival.
The emergence of hub/feeder networks in the Singapore-Japan corridor through the 1970s and 1980s reflected not only the rapid growth of containerized cargo in regional Southeast and East Asia but also the exceptional importance of Far East/transPacific and Far East/Europe mainline shipping services in structuring these networks. This paper argues that the mid-1990s is a defining moment in the restructuring of these networks; that the period represents, in fact, a convergence of a number of different though related trends impacting on the regional shipping market. More particularly, continuing high growth rates of containerized cargo have not only spawned new ports but have also increased the proportion of ports handling threshold volumes of containers for which mainline calls, rather than handling thfeeder operations, are justified. Further, the quite dramatic retionalization of already large container shipping lines into mergers and alliances bestows a new level of market power that is able to underwrite major changes in shipping schedules, port rotations and feeder linkages. This paper speculates that these developments are generating, and will continue to generate new, hierarchically organized port/shipping networks in which high order networks will include high efficiency/high cost operations; and lower order networks will include a mix of hub and direct-call ports that will focus on different market segments.
Empirical studies for achieving manufacturing flexibility goals have centered around the uses and advantages of advanced technology. Few studies have examined alternative ways of attaining flexibility objectives. Strategic sourcing finds mention in the literature as a potential route to manufacturing flexibility. However, little empirical evidence exists to validate this view. Literature also describes manufacturing flexibility as a multidimensional concept but fails to adequately examine the synergies among the different dimensions. This research investigates the influence of strategic sourcing and advanced manufacturing technologies on specific manufacturing flexibilities, and examines relationships among different flexibilities. The results are tied to manufacturing cost reduction. The findings suggest that strategic sourcing can assist in the achievement of modification flexibilities. Volume and modification flexibility are found to influence new product flexibility. Modification flexibility is found to influence manufacturing cost reduction. The results show that strategic sourcing can be used to target specific manufacturing flexibilities and that interflexibility synergies need to be considered while formulating flexibility-based manufacturing strategies.
This article presents findings from a comprehensive survey concerning internal service quality in a wide variety of U.S. companies. The objectives of this article were to further develop the internal service quality model and to study the internal customer-supplier relationships of companies with high levels of purchasing service quality. Purchasing managers were asked to assess and describe both incoming and outgoing internal service quality and associated activities for their purchasing departments and the organization as a whole. The respondents were also asked to assess the service quality provided to their firm's external customers. This information was used to summarize performance in each area for respondents with high levels of internal service quality, from both an internal supplier and internal customer perspective. Comparative information is provided for firms having low-to-moderate levels of internal service quality.
This research investigates the determinants and outcomes of trust in buyer-supplier relationships. Trust in a partner organization and in the individual counterpart are examined from both the buyers' and suppliers' perspectives. The method in which organizational and interorganizational management practices influence trust in buyer-supplier relations and how trust at two levels relates to supplier performance are discussed. Data for the statistical analysis was gathered from a survey of 99 purchasing managers and their lead suppliers.
The emerging area of supply chain alliances has received considerable attention in the academic and managerial press, yet there are many unanswered questions regarding the dynamics of such relationships. A number of such fundamental issues drive this research initiative, including how alliances are developed, their key success factors, and the specific benefits to be achieved. The study begins by establishing a definition of strategic supplier alliances, based on a comparison of both theoretical and managerial descriptions. The critical antecedents associated with the success of strategic supplier alliances are next developed, and the magnitude of the effect of these factors on partnership success is assessed. The analysis employs both qualitative and quantitative data, collected through an electronic network of over 200 companies, as part of an ongoing benchmarking initiative in supply chain management.
From the perspective of the buying company in the alliance, the following attributes of supplier alliances were found to be significantly related to partnership success: trust and coordination, interdependence, information quality and participation, information sharing, joint problem solving, avoiding the use of severe conflict resolution tactics, and the existence of a formal supplier/commodity alliance selection process. Resource commitment and smoothing over problems were found to be poor predictors of alliance success. The implications of these results for managerial decision making in supplier alliance development are discussed.
In this paper we investigate the key causal linkages in supply chain management. We propose a conceptual framework and test this framework on data from 215 North American manufacturing firms using structural equation modeling techniques. Three major research issues are addressed in this study: Do sourcing decisions affect the degree to which firms achieve manufacturing goals of cost, flexibility, dependability, and quality? Does the degree of manufacturing goal achievement lead to higher customer responsiveness? Does the degree of manufacturing goal achievement lead to higher internal manufacturing performance? The study examines the relationship among sourcing decisions, manufacturing goals, customer responsiveness, and manufacturing performance. The results support the notion that an integrated supply chain involves aligning sourcing decisions to achieve manufacturing goals that are set to respond favorably to the needs of customers.
Understanding the changes and trends affecting purchasing requires replacing anecdotal evidence with research-based observations. Using data collected annually from leading firms worldwide, this article details the real and projected changes and trends that have affected and will continue to affect purchasing and sourcing professionals. These changes and trends appear within seven areas: (1) performance improvement requirements, (2) supplier and purchasing/sourcing importance, (3) organization, (4) systems development, (5) performance measurement, (6) supply base management, and (7) purchasing responsibilities and activities. A lack of awareness concerning these trends by purchasing professionals limits their ability to anticipate change and respond in a way that will create competitive advantage for their organization.
This study examines the performance implications of an integrated supply chain strategy, with customer service performance followed by financial performance as performance constructs. Two major components of an integrated supply chain strategy are identified and defined: (1) integrative information technologies, which is modeled antecedent to (2) supply chain integration. The research model was tested using data from a sample (n=57) of the top 150 independent first tier automotive suppliers to the Big 3 in North America. The results showed positive direct relationships between (1) integrated information technologies and supply chain integration, (2) supply chain integration and customer service, and (3) customer service and firm performance. The relationship of supply chain integration to financial performance was indirect, through customer service; i.e., customer service was found to fully (as opposed to partially) mediate the relationship between supply chain integration and firm performance for first tier suppliers in the automotive industry.
Research in the areas of both manufacturing and marketing/sales have advocated the integration of several important interrelated decisions between the two functions (i.e. product development, process development, marketing/sales planning, and manufacturing planning decisions). The process of managing the strategic alignment between a firm’s business strategy, external environment, and the integration of manufacturing and marketing/sales decisions is very complex phenomenon that requires a level of analysis that has not occurred previously. This study examined the moderating effects of business strategy and demand uncertainty on the relationship between the integration of manufacturing and marketing/sales-based decisions and organizational performance. The study found general support for the proposed model, suggesting that the impact of the integration of manufacturing and marketing/sales decision on organizational performance is moderated by a firm’s business strategy and demand uncertainty.
An empirical analysis of purchasing's strategic role in the firm is presented. This study uses data collected from high level purchasing executives at the Director/VP level representing a large cross industry sample of 739 firms. The data analysis is rigorous. Using data from 571 of the 739 firms, correlation analysis and exploratory factor analysis is performed. Data from the remaining 168 firms is used to conduct structural equation modeling. This is the first attempt to examine a structural model of strategic purchasing and its influence on supplier evaluation systems, buyer–supplier relationships, and firm's financial performance. Scales are developed to measure each construct and are shown to be reliable. Five hypothesized relationships are presented and supported by the literature. The first, second, and third hypotheses link strategic purchasing to supplier evaluation systems, buyer–supplier relationships and firm's financial performance, respectively. The fourth hypothesis links supplier evaluation systems to buyer–supplier relationships. And, the fifth hypothesis links buyer–supplier relationships to firm's financial performance. The results of the data analysis provide support for each of the five hypotheses above. The implications of this research are that a strategic purchasing function is important to the success of the firm. Firms that have a strategic purchasing function are more likely to implement a supplier evaluation system. This provides purchasing with a better understanding of which suppliers are performing well and which suppliers are not performing well. Increased emphasis on strategic purchasing and supplier evaluation systems are critical for firms seeking to establish long-term relationships with their suppliers. Based on the findings of this study, strategically managed long-term relationships with key suppliers can have a positive impact on the firm's financial performance.
Physical distribution services are becoming increasingly important as supply chains strive to become more efficient in the logistical flow of goods to industrial customers. Performance of these services, however, takes place during encounters that customers have with various interfacing departments within the firm. These encounters may ultimately determine the level of satisfaction clients have with the service and the concomitant perceived quality. While previous research in this area has focused on service quality assessment, little attention has been given to determining the pattern of interfacing departments that maximize service satisfaction. This study examines a sample of shipping managers in Singapore who evaluated the service dimensions of ocean freight shipping lines (or companies). Using an analytical method called decision tree calculus, this article identifies the combination of interfacing departments that maximize service satisfaction. The results of this approach offer definite guidance to ocean shipping lines in terms of the importance of key interfacing departments in shaping satisfaction and perceived quality. Implications are discussed.
The flow of information between parties in a supply chain is crucial for carrying out an effective and efficient transition of consignments. To support the flow of information, diverse communication systems exist. Although the electronic data interchange technology has been around for more than 30 years now, it has not reached small- and medium-sized enterprises to any significant extent. The results of more than 20 case studies imply that smaller companies run the risk of being permanently excluded from integrating their logistics operations in the supply chain. However, the advent of the Internet and concepts of electronic business open up new perspectives for small- and medium-sized enterprises.
This paper presents an empirical study which examines the co-alignment between Total Quality Management (TQM) and technology/research and development (R&D) management in predicting organizational performance in terms of quality and innovation. This study improves our understanding of the relationship between TQM and innovation based on the following two major issues. First, this study contributes to the understanding of the co-alignment between TQM and technology management along with R&D management by bridging the gap between the two areas which are often addressed in a separate fashion. Second, this study also examines the impact of the integration between TQM and technology/R&D on quality and innovation performance which have been considered as the primary sources of a competitive advantage. The empirical data was drawn from 194 Australian organizations and analyzed using the Structural Equation Modeling (SEM) technique. The findings indicate that TQM shows a strong predictive power against quality performance but no significant relationship against innovation performance. On the other hand, technology and R&D management shows a significant relationship with quality performance but at a lower level than that of TQM, and shows much stronger relationship with innovation performance. In addition, there is strong and positive correlation between TQM and technology/R&D management. The major implication of this study is that technology/R&D management is an appropriate resource to be used in harmony with TQM to enhance organizational performance, particularly innovation.
Few studies have investigated the quantitative relationship between port ownership structure and port efficiency with mixed results. This study applies a stochastic frontier model proposed by Battese and Coelli [Battese, G.E., Coelli, T.J., 1995. A model for technique inefficiency effects in a stochastic frontier production function for panel data. Empirical Economics 20, 325–332], which incorporates the inefficiency effect, to show whether port privatization is a necessary strategy for ports to gain a competitive advantage. While this stochastic frontier model has been used to a wide number of industries where the technical inefficiency effect is required, this method has rarely been employed to port industry. This study also investigates the determinants of port competitiveness. Both the principal component analysis (PCA) and the linear regression model are used to examine the effects of identified key factors on port competitiveness. Based on a sample of selected container terminals around the world, the results of this study have shown that private sector participation in the port industry to some extent can improve port operation efficiency, which will in turn increase port competitiveness. Another important determinant of port competitiveness is the adaptability to the customers’ demand. All these results provide some policy implications and guidance for port authorities and port operators in formulating effective strategies to improve their competitiveness vis-à-vis rivals.
Though there is a wide acceptance of the strategic importance of integrating operations with suppliers and customers in supply chains, many questions remain unanswered about how best to characterize supply chain strategies. Is it more important to link with suppliers, customers, or both? Similarly, we know little about the connections between supplier and customer integration and improved operations performance. This paper investigated supplier and customer integration strategies in a global sample of 322 manufacturers. Scales were developed for measuring supply chain integration and five different strategies were identified in the sample. Each of these strategies is characterized by a different “arc of integration”, representing the direction (towards suppliers and/or customers) and degree of integration activity. There was consistent evidence that the widest degree of arc of integration with both suppliers and customers had the strongest association with performance improvement. The implications for our findings on future research and practice in the new millennium are considered.
This paper applies a `port function matrix' to analyse the administrative and ownership structures of major container ports in Asia. The relative efficiency of these ports is then assessed using the cross-sectional and panel data versions of the `stochastic frontier model'. The estimated efficiency measures are broadly similar for the two versions of the model tested. From the results of the analysis, it is concluded that the size of a port or terminal is closely correlated with its efficiency and that some support exists for the claim that the transformation of ownership from public to private sector improves economic efficiency. While this provides some justification for the many programmes in Asian ports which aim to attract private capital into both existing and new facilities, it is also concluded that the level of market deregulation is an important intervening variable which may also exert a positive influence.
Supply chain strategies and practices depend on not only the nature of the business, the competitive environment, and technological intensity of the product, but also on product and market characteristics. Consequently, supply chain integration (SCI) strategies should be evaluated in the light of a company’s market and product strategies. This paper examines the effect of SCI on the relationship between diversification and a firm’s competitive performance. The results of the study can be useful in integrating supply chain strategy into market and product diversification (PD) strategy. By comparing the main and interaction effects of SCI and diversification on performance, the paper shows that SCI strategy modifies the relationship between diversification and performance. Additionally, it is argued that coordinated use of SCI and diversification strategies has a significant effect on firm performance.
Discusses the influence of information technology on business logistics. Organization strategy and structure; Strategic logistics management; Strategy perspective; Structural accommodations; New corporate paradigms; Likely trends and directions in paradigm shifts include increased and focused emphasis on performance measurement and greater reliance on time-based strategies.
Issues of global integration between liner shipping companies and ports and terminals are investigated. For several years there has been a significant reorganisation and concentration of operators with the result that an increasing proportion of container shipping, handling and distribution capacity is now in the hands of fewer, larger companies. It is likely that this trend will continue into the foreseeable future. It is shown that in some areas, such as Europe, concentration of ownership is approaching saturation: freedom of choice and shortage of competition are becoming major issues. In both shipping and ports, while several companies are large, very few can claim to be truly global, although many aspire to be. For terminal operators, a certain minimum geographical coverage in terms of handling capacity is needed, and for liner shipping companies a minimum fleet slot capacity is likewise required. The increasingly complex pattern of ownership through, for example, shareholdings, suggests that there is a need for a clearer policy towards terminal ownership and shipping capacity provision at the global level, to ensure that a reasonable level of fair competition is maintained. Maritime Economics & Logistics (2003) 5, 393–412. doi:10.1057/palgrave.mel.9100088
Creating Logistics Value: Themes for the Future
- R A Novack
- C J Langley
- L M Rinehart
Novack, R.A., Langley, C.J. and Rinehart, L.M. (1995), Creating Logistics Value:
Themes for the Future, (Oak Brook, IL: Council of Logistics Management).