Managing port-related supply chain disruptions (PSCDs): a management model and empirical evidence

ABSTRACT

In the contemporary port business environment, port resilience is of paramount importance for supply chain continuity. A result of the increased integration of ports into supply chains is ports’ potential to supply chain disruptions. This paper introduces a PSCD management model that incorporates the application of risk management, business continuity management, and quality management theories with the purpose of increasing port resilience such that supply chain continuity is enhanced. To validate this model, primary data were collected from samples of port operators and port authorities and analyzed using structural equation modeling with AMOS 22.0. The results indicate that managing PSCD using the management model contributes positively to the identification of internal and external opportunities and through that to port’s resilience of internal operations. This, in turn, positively influences port’s financial health and market reputation. The management model has several managerial and academic implications as it offers meaningful insights on policy development as well as theory building.     

Global supply chain and port/terminal: integration and competitiveness

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.     

Global supply chain and port/terminal: integration and competitiveness

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.     

Ports as elements in value-driven chain systems: the new paradigm

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.     

Ports as elements in value-driven chain systems: the new paradigm

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.     

Maritime policy and management--30 years issue for Prof. James McConville Editorial: IMO--The economics of intimidation

Organizational Effectiveness (OE) is a rather new concept in the port business literature and not widely studied before. From the systems perspective, this concept focuses on the goals of the organization, the resources needed to achieve these goals, and the relationship between the organization and its environment. The reason behind choosing a systems approach is the significant role of seaports as open systems affected by changes and developments in world trade, supply chain and logistics trends, maritime transport, and technological developments. While seaports are multi-faceted organizations that constitute different interdependent and integrated units in their structure, they can also be regarded as the subsystems of the supply chain system. As being the social and technical systems, port organizations have unique characteristics that should be examined in detail to assess their effectiveness. To assess the effectiveness of port organizations, principally a set of effectiveness measures applicable to seaports should be determined. The main aim of this study is to assess the relative importance of the main effectiveness criteria in seaports and to determine the significance of main inputs and port subsystems which can be referred as the means to achieve effectiveness. By using the systems approach, the inputs, the processes, and the outputs of the port organizations are clearly defined with a conceptual model. Thirty-three statements have been developed under the main categories in the systems model and a two-round delphi survey is conducted, and qualitative analysis of the experts’ opinions is carried out. The results of the delphi survey show that the main port inputs are port infrastructure, equipments, technology, and port labor; the major port processes are ship and cargo operations together with the logistics services, safety and security, information technologies, and marketing; and the most important effectiveness measures for the seaports are productivity, efficiency, service quality, adaptability, information and communication management, profitability, human resource quality, and customer satisfaction.     

Competition model of cruise home ports based on the cruise supply chain – based on China cruise market

This paper addresses issues of cruise home port competition based on the cruise supply chain. A pricing model of the cruise market is developed considering the competitive cooperation behaviors of the participants in the cruise supply chain. Furthermore, a model of cruise home port competition is developed to investigate the impacts of subsidy participants in the cruise supply chain on cruise home ports. The results indicate that subsidy policies change the market equilibrium, promote the upstream and downstream integration of cruise supply chain, and enhance cruise home port competitiveness. Subsidies to cruise line increase the payoffs of cruise supply chain and ports’ profit. Subsidies to travel agency decrease passenger costs and improve all ports’ profits. For the long-term development of cruise home port, the consequents can be used as policy suggestions.     

A logistics and supply chain management approach to port performance measurement

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 []. The logistics approach often adopts a cost trade-off analysis between functions, processes and even supply chains []. 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.     

Activities,resources and inter-organizational relationships: key factors in port competitiveness

In the last decade, the port economics literature has given great emphasis to the Supply Chain Management approach as the new paradigm for the definition of port competitiveness. SCM supports the development of partnerships between the actors of the supply chain and considers the integration of activities and resources along business processes as source of competitive advantage. Nevertheless, the application of SCM approach to the port is particularly compiex given the traditional hostile relationships between port actors. In the effort to overcome such complexity, some authors have considered ports as Logistics Service Providers and interpreted their role within supply chains through the integrative practices undertaken by Global Players–mainly Shipping Companies and Terminal Operators–in the supply of integrated logistics services. Even tough these actors are crucial for the port competitiveness, they determine a passive role of port in the new competitive scenario. The definition of a potential and pro-active role of port in the supply chains is the objective of this paper that presents, through a literature review on SCM and port competitiveness, a new framework for port competitiveness. According to this framework, that is based on the value constellation concept value is generated by joint effort of port actors in the satisfaction of clients' needs, through the exploitation of different I mterdependencies (serial, pooled and reciprocal) between supply chains. In this context, Port Authority has a I fundamental role in identifying those resources–the so called critical assets–that encourage the development of inter-organisational relationships between port actors in the value generation process.     

A logistics and supply chain management approach to port performance measurement

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 [1]. The logistics approach often adopts a cost trade-off analysis between functions, processes and even supply chains [2]. 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.     

An interpretation of inter-container port relationships from the demand perspective

Container ports serve as important conduits to facilitate the efficient flow of containerized cargo. As part of value-driven chain systems that intersect between hinterlands, efficiency gains that are generated within the container port will have a direct impact on the competitive advantage of its users and affect the economic potential of both the origin and destination hinterlands. As such, the paper proposes the usage of indifference analysis propounded in microeconomic theory as a useful means to examine inter-container port competition and complementarity. The framework presented can also be combined with Porter's ‘Diamond’ model in order for inter-container port demand relationships to be quantified, measured and analysed in an holistic manner. Apart from analysing inter-port relationships from the standpoint of container ports, the framework can also be used to analyse inter-port relationships from the perspective of other key players in the value-driven chain system and modified accordingly to incorporate various indicators that are deemed to be relevant to these parties.     

广州内河港总体规划

广州内河港属于典型的海运供应链末端型港口。以广州内河港总体规划研究为例,探讨末端型内河港空间布局特征及规划思路,为同类型港口的规划工作提供参考借鉴。     

Panama Canal expansion and its impact on East and Gulf coast ports of U.S.A.

ABSTRACT

This paper focuses on the Panama Canal expansion and its impact on American port infrastructure for the attention of academic researchers in maritime transportation and supply chain management (SCM). First, it provides a comprehensive background based on a review of pertinent practitioner as well as academic publications. This is followed by a summarization of the impact of this expansion on the infrastructure of the major East and Gulf Coast (EGC) ports, since these stand to be the most affected. Then it presents a categorization scheme for these EGC ports that capture their likelihood of attracting the expected increase in cargo traffic engendered by the expansion; this is preliminarily supported by the latest data on growth in container traffic. The policy implications of this categorization are then discussed and the paper ends by identifying key SCM research problems exposed by the above.     

全球供应链视角的东亚港口物流服务绩效与趋势分析*

东亚港口基于旺盛的贸易运输需求而在全球供应链体系中崛起,同时也因为港口拥挤等问题而存在降低贸易成本的空间。首先从全球供应链视角解析港口物流服务格局,突出了东亚地区、特别是中国港口的地位,评价港口物流的综合绩效和竞争状态,然后对发展趋势做出预测。研究发现：东亚港口将通过持续投资实现供给需求的动态平衡;日本地震引致的全球供应链重组将使港口物流服务发生结构性变化,东亚将加强跨国港口物流合作以满足区域经济一体化的要求。     

An interpretation of inter-container port relationships from the demand perspective

Container ports serve as important conduits to facilitate the efficient flow of containerized cargo. As part of value-driven chain systems that intersect between hinterlands, efficiency gains that are generated within the container port will have a direct impact on the competitive advantage of its users and affect the economic potential of both the origin and destination hinterlands. As such, the paper proposes the usage of indifference analysis propounded in microeconomic theory as a useful means to examine inter-container port competition and complementarity. The framework presented can also be combined with Porter's 'Diamond' model in order for inter-container port demand relationships to be quantified, measured and analysed in an holistic manner. Apart from analysing inter-port relationships from the standpoint of container ports, the framework can also be used to analyse inter-port relationships from the perspective of other key players in the value-driven chain system and modified accordingly to incorporate various indicators that are deemed to be relevant to these parties.     

Systematizing international benchmarking for ports

The subject of port efficiency is one of the important issues facing port authorities and policy makers today. A number of studies have been undertaken which compare ports in terms of their efficiency. But any port comparison can only be valid and meaningful if a port's efficiency is compared with a similar port. The principal objective of this paper is to introduce a systematic approach to identifying similar ports based on the technique of principal component analysis. Secondly, it seeks to identify the most important factors underlying the port classification. Lack of awareness of which factors differentiate ports has resulted in an unnecessary collection of data which are of limited use in port classification. This study has identified three groupings of similar ports within which port comparison can be justifiably made. This approach can be used for any future port comparison and can be applied to other areas of activity facing the same difficulty.     

基于供应链思想的第四代港口概念特征及发展策略研究

与第一、二、三代港口不同，第四代港口从强调自己是一个“物流中心”，转变为强调是供应链中的一个环节，为此，有必要研究基于供应链管理思想的第四代港口的若干问题。在给出具有供应链管理特征的第四代港口的定义的基础上，提出了港口与供应链关系的演进模型，指出港口与供应链关系发展经历了分离（即相互独立）、整合（即形成港口物流服务链，为制造业供应链提供高效的增值服务）和嵌入（即港口被嵌入到制造业供应链中）三个阶段。应对供应链管理的要求，第四代港口应具有与前三代港口不同的差异化、精益化和敏捷化特征。基于上述分析，第四代港口的发展策略应为，主动整合并构建自身的供应链和与供应链核心企业联合等。     

Systematizing international benchmarking for ports

The subject of port efficiency is one of the important issues facing port authorities and policy makers today. A number of studies have been undertaken which compare ports in terms of their efficiency. But any port comparison can only be valid and meaningful if a port's efficiency is compared with a similar port. The principal objective of this paper is to introduce a systematic approach to identifying similar ports based on the technique of principal component analysis. Secondly, it seeks to identify the most important factors underlying the port classification. Lack of awareness of which factors differentiate ports has resulted in an unnecessary collection of data which are of limited use in port classification. This study has identified three groupings of similar ports within which port comparison can be justifiably made. This approach can be used for any future port comparison and can be applied to other areas of activity facing the same difficulty.     

Port e-Transformation,customer satisfaction and competitiveness

ABSTRACT

e-Transformation in container ports means port organization-wide innovative transformation encompassing internal and external value chains based on information and communication technology. There is a considerable theoretical literature on the impact of e-Transformation on business performance, but there is very little empirical study on its effectiveness in ports. The objective of this paper is to empirically investigate how e-Transformation in container port management can influence customer satisfaction and port competitiveness. The findings reveal that e-Transformation in container ports can affect customer satisfaction and port competitiveness through e-Workplace, customer relationship management and security, implying that container ports should make every effort to focus on e-transformation in these critical areas. Due to limited empirical studies in this area, the findings have provided an empirical support for the importance of e-Transformation in container terminal management and shed more light on how e-Transformation can affect customer satisfaction and port competitiveness.     

A game-theoretical approach for modeling competitions in a maritime supply chain

ABSTRACT

To accommodate the structural changes in logistics, competitions along a maritime supply chain are more intensive than before. This paper adopts a two-stage noncooperative game-theoretical approach to model the horizontal and vertical interactions among liners and ports. In the first stage, Bertrand game is applied to model the interactions between two liners. When the shipping line decides which port to call, a multinomial Logit model is applied. In the second stage, Bertrand game is applied to model the competitions between two ports. Nash equilibrium is derived by solving the Bertrand games. A numerical example is provided as a case study.