Business integration between manufacturing and transport-logistics firms

Purpose - This paper analyses how manufacturers and transport-logistics service providers (TLSPs) work together and integrate their business processes. The information technologies used to support the integration, the processes currently integrated, and the expected future integration, are searched. Design/methodology/approach - Six in-depth case studies were conducted among leading companies in the electrical, electronics, mechanical, food processing, and transport-logistics industries. The data was collected using comprehensive semi-structured interviews. Findings - Most of the firms are coupled electronically through EDI. The current business integration practices are primarily restricted to some sub-processes in three key SC processes: Customer service management, order fulfillment and backwards logistics. In the future the manufacturers want a better integration with the TLSPs, but at the same time, manufacturers would like to have the freedom of breaking the relationship, if the party does not fulfill the requisites and expectations. The future developments associated to the "commoditization" of TLSPs’ services would reinforce this trend. Originality/value - This research has shed light on a relatively unexplored area related to the integration between manufacturers and transport-logistics firms. Our research has highlighted the complexity of the integration between the two echelons, and has helped to the identification of current areas of integration. This research has also contributed to understand how the integration occurs in real contexts, by uncovering with a high degree of detail, what manufactures do to integrate their business with the TLSPsSupply chain management; Business process integration; Information technologies (IT); Standardization; Manufacturers; Transport and Logistics Service Providers (TLSPs)

Trade Logistics and Regional Integration in Latin America and the Caribbean

During the past few decades, the landscape of the world economy has changed. New trade patterns reflect the globalization of the supply chain and intra-industry trade, and increasing flows between neighboring countries and trading blocs with similar factor endowments. Similarly, the approach to production, trade, and transportation has evolved incorporating freight logistics as an important value-added service in global production. This integrated approach have become essential, and as such, both the trade agenda and freight logistics are beginning to converge providing an unparalleled opportunity for countries to deepen their integration with neighboring countries and their national performance in transport related services. Consequently, developing countries are finding themselves hard-pressed to adjust their policy agendas to take into account costs not covered in past rounds of trade negotiations. This paper focuses on the importance of freight logistics in trade facilitation measures, examines the transport and logistics cost in international trade, addresses logistics performance in Latin America and the Caribbean and regional initiatives to advance the integration process and finally, exchanges views on the potential for trade logistics to impact the regional agenda and to deepen integration.latin america caribbean trade; regional integration; infrastructure trade facilitation

Shallow versus Deep Integration between Mediterranean Countries and the EU and within the Mediterranean Region

The paper aims at assessing the specific impact of shallow versus deep integration between Mediterranean (MED) countries1 and their partners in the European Union (EU) as well as between the MED countries themselves. It relies on dataset developed for this project concerning tariffs (as a proxy for shallow integration) and Non Tariff Measures (NTMs)2 (as a proxy for deep integration). Additional data are also included in order to take into account other trade costs, especially transport costs and logistics costs. In this regard, an original dataset of maritime freight cost (Maersk, 2007) is introduced as well as the trade logistics performance (TLP) index produced by the World Bank. Such datasets are useful for providing additional insight into deep integration. The paper starts by calculating the magnitude of NTMs in terms of ad valorem tariff equivalent (AVEs). The estimation of NTMs through ad valorem equivalents (AVEs) shows that Algeria and Jordan have the highest value of AVEs, whereas Tunisia, Morocco, and Egypt have the lowest value. A gravity model is then estimated with special emphasis on trade costs which are the crucial point in our research study. Given the limitation of data on NTMs, the gravity model is estimated for only one year (2001), and for each MED country. Trade costs are represented by tariffs, AVEs of NTMs, and transport and logistics costs. The idea is to test which of the three elements of trade costs are the most impeding to bilateral trade between MED countries and EU countries as well as amongst MED countries. The model shows that tariffs, NTMs, and trade and logistics costs have a significant impact on trade, but is highly vivid in countries suffering from high tariff rates, prevalence of NTMs, and trade costs. A number of simulations are carried out trying to differentiate between the impact of partial liberalization and full liberalization on trade creation. The results obtained show that full liberalization has a significant effect whether it is only related to shallow integration (tariff removal) or deep integration (NTMs and trade and logistics). The effect is higher if trade costs and logistics are improved. The results are far less if only partial liberalization takes place and in several countries is insignificant implying that marginal reductions in NTMs or tariffs cannot always help to create trade. Finally the study shows that there is a huge potential for enhancing trade amongst MED countries if trade costs are lowered, logistics is improved, and NTMs are abolished.Regional Trade Agreements, Regional Integration, Non-Tariff-Measures, Deep versus shallow integration, South Mediterranean countries, European Union Trade Agreements

Port Logistics Integration: Challenges and ‎Approaches

The competitiveness of a seaport highly depends on its efficiency especially in terms of logistics practices, functions and activities and how all that is integrated with those of the other players in the supply chain.Despite the well-articulated importance of ports and terminals in integrated logistics, research on the success factors of port logistics integration remains scattered. The objective of this paper is to provide a review of the literature and based on this; provide an insight into how seaports and terminals may improve their logistics integration. A structured analysis of 78 papers published in Scopus indexed journals in logistics, supply chain and port management during the period 2000-2018 is conducted. A multidimensional conceptual framework for port logistics integration is proposed to incorporate the role of the three infrastructural variables emerging from the recent developments in the port logistics environment. The literature review has found the logistics process and operations, information integration, value-added services, and logistics practices being influential factors in logistics integration. Based on the research discussion and conclusion which is drawn from the literature review offer a basis for future research, both in respect of research approaches, concept definition and the select of theoretical foundation. The framework could be more detailed on each factor and consider actors perspective. Further testing and examination of the framework are needed for the validity of the results. This study questioned current literature in port logistics integration, highlight role infrastructural factors and the actor's role in the port logistics chain

The significance of logistics in servicing growing volumes of e-commerce

Purpose: The article highlights the multi-task nature and prospects of the development of the transit potential of warehouse logistics systems, reveals the theoretical and methodological foundations of logistics in the storage and cargo handling system, indicates and confirms the importance of warehousing logistics in the context of servicing the growing volumes of electronic commerce. Design/Methodology/Approach: For the purposes of developing logistics in the storage and cargo handling system we study the technical and technological support and design developments that have significant potential for increasing the efficiency of logistics processes, and to study consumer behavior in the warehouse services market and transport market trends - warehouse activities. Findings: Automation significantly simplifies logistics processes, information exchange, remote control and management, optimizes costs by combining various market entities and objects, target groups and parameters of logistics processes on electronic platforms. Integration in modern logistics allows synchronizing the complex information component of electronic services and platforms and activating the formation of a system interface that is common for all elements of the logistics system of warehousing, cargo processing and inventory management. Practical implications: The results of the study can be implemented in the activities of Russian companies in order to develop the transit potential of warehouse logistics systems. Originality/value: The significance of this study lies in shifting the emphasis to the need to switch to improved customer service systems taking into account the needs and development of online retail and fulfillment of logistics operators (full-cycle operator: taking goods from the customer’s warehouse, responsible storage, packaging, delivery, work with returns), tied to the development of infrastructure, as the foundation for increasing the efficiency, speed and quality of logistics processes.peer-reviewe

Co-integration Model of Logistics Infrastructure Investment and Regional Economic Growth in Central China

AbstractThe speed of logistics infrastructures investment in Central China is still lower than other regions since the rise of the central region strategy was put forward. And the ration of freight turnover was also being down. The analysis with the relations among the central region of the logistics investment, logistics value-added and GDP, found that three variables exists co-integration relation. And found that the investment in logistics infrastructure was the Granger reason of the GDP, the investment in logistics infrastructure and logistics value-added was the Granger reason for each other. According to the analysis, some countermeasures be put forward as following: accelerate the speed of logistics investment, optimize logistics environment, promote the logistics capability, reduce logistics cost, and so on

Logistics by Ship

According to Carbone and De Martino, a port is an entity involved in delivering value to the end consumer. A requirement for good port performance is the ability to compete through cargo handling in addition to connectivity with the overall supply chain. The types of logistics entities in each port are different, making coordination between them is difficult. In each of these relationships, the operators of a specific port create a logistical value, which relates to the efficient and effective receipt of goods for consumers. (Lee, E.S. & Song, D.W. (2010). Knowledge management for maritime logistics value: discussing conceptual issues. Maritime Policy and Management. Vol. 37 No. 6, p. 226-242)) During the last decade there have been three trends in the development of logistics: integration; specialization; and innovation. This article explores recent studies concerning supply chain integrations designed to create value for consumers. This is followed by a discussion of studies exploring developments from logistics coverage to supply chain management, in order to identify the predominant directions currently being promoted in ports with regards to value creation for consumers, especially consumers of goods transported by sea. Finally, the study considers the value created by port logistics in Indonesia. Keywords: Logistics; Ships; Transi

How Informational Integration Can Improve The Relationship Between Buyer And Supplier Of Logistical Services:Empirical Evidence From Vietnam

Having initiated economic liberalization in 1986, Vietnam is a particularly interesting emerging economy to study. The logistics industry in the country is developing strongly because manufacturers are willing to outsource their logistical activities to specialized businesses called logistics service providers (LSPs). To be sustainable partners of manufacturers, LSPs must adopt an informational integration policy that improves the functioning of their customers’ supply chains. To find out whether Vietnamese manufacturers value information integration, a questionnaire survey was administered to 139 food industry managers. The main research finding is that informational integration between manufacturer and LSP strongly impacts the manager’s perception of its own logistics performance. This result has major implications for foreign LSPs that want to carve out a significant place on the Vietnamese market

On the analysis of building a public information platform based on e-Commerce for coal logistics

Purpose: Putting forward the concept and features of the public information platform for coal logistics based on electronic commerce, as well as the requirements of upper and lower intersections of the coal supply chain. Meanwhile, this paper will also probe into the current condition of statistics management in coal logistics, and then discuss how to build a public information platform based on electronic commerce for coal logistics. Design/methodology/approach: According to the further exploring the concepts and relevant characteristics and the development of coal logistics and supply chain management in China of the current period. Findings/ Practical implications: An advanced public information platform for coal logistics utilizes to best advantage modern information technologies and managerial concepts in the operation of coal logistics, such as e-commerce, e-information, supply chain management, etc. This not only stimulates efficient integration of business flow, information flow, logistics and capital flow of the coal industry, brings about in-depth integration of the logistics resources of the coal industry, but also greatly improves the efficiency of the operation of coal logistics, reduces the cost of coal logistics, and enhances the overall competitiveness of upstream and downstream companies along the coal supply chain. Research limitations/implications: Although the coal logistics public information platform has been applied in some enterprises in China, not yet in a broader range of applications, which need the joint efforts of all parties. Originality/value: Fitted to the e-commerce era, the Public Information Platform for Coal Logistics envisioned in this article is highly feasible and worthy of reference to relevant institutions.Peer Reviewe