The connection between supply chain practices and firm performance - Evidence from multiple surveys and financial reporting data

siirretty Doriast

Mergers and acquisitions in electronic contract manufacturing

Siirretty Doriast

Is There Business Potential for Sustainable Shipping? Price Premiums Needed to Cover Decarbonized Transportation

The shipping sector is encountering remarkable costs concerning decarbonization of the maritime business. Both the International Maritime Organization and the European Union are developing tools to limit greenhouse gas emissions of shipping. Given all the tools and planned regulations, it seems that energy efficiency and cost cutting would be a feasible strategy of the future. However, in addition to cost cutting, shipping with net-zero or zero emission fuels might be a way to promote sustainable shipping services. A growing consumer segment is ready to pay for sustainability-marketed consumer goods, and it is possible that people would be ready to pay for net-zero or zero emission shipping as well. Our objective is to pinpoint, how big price premiums would be needed to cover the costs of shipping with sustainable, and typically more expensive, maritime fuels. We do this by calculating the amounts of fuel needed to ship specific good categories at first, and then we estimate the costs of shipping these goods with alternative fuels. We analyze Finnish maritime foreign trade during the year 2018, the time prior to the outbreak of COVID-19 pandemic. We estimate fuel consumption to the value and quantities of goods. Our findings indicate that a shift to low carbon and carbon neutral fuels would have a limited effect to the price of most goods

Cost competitiveness of alternative maritime fuels in the new regulatory framework

Shipping emissions are expected to grow together with world trade. For this reason, the European Union is targeting shipping emissions both by penalizing the use of fossil fuels and by creating incentives for the shipping sector to increase the role of alternative fuels. This research presents an estimate of when and with what assumptions low-carbon and carbon-neutral maritime fuels will be competitive against fossil fuels, while also examining what will be the cost impact on an individual vessel. The results show that the prices of low-carbon and carbon-neutral fuels are likely to remain high compared with fossil fuels, here assuming the currently planned regulation. The planned regulation, together with the estimated fuel price developments, will significantly increase fuel costs. The cost-optimal fuel path complying with the planned regulation is from fossil fuels via biofuels to electrofuels

Maritime sector at verge of change: learning and competence needs in Finnish maritime cluster

Shipping plays an important role in the world, transporting over 80% of international trade and employing over 1.5 million seafarers. The maritime industry, including shipbuilding and equipment manufacturing, is extensive. Both of these interconnected businesses are facing rapid change caused by increasingly speedy technological development and the tightening of environmental regulation. This survey-based research analyzes the current and future competence needs of firms operating in maritime logistics and the maritime industry. The findings indicate that in both contexts, the increasing importance of various general competences is understood and the need is recognized in particular to improve those related to environmental regulation as well as technology and automation. Overall, the gap between current and desired levels of competence is expected to widen. In terms of education, this is likely to affect vocational training and university-level learning differently in that functional competences are emphasized more in the former and social and meta-competences in the latter

A comparative study of market potential for logistics outsourcing in Estonia and Finland

Purpose This research analyzes the development of logistics outsourcing market in two countries, Estonia and Finland, with different paths as members of the single European market. The purpose of this paper is to examine whether the two markets have become more similar or whether their logistics costs and logistics markets have developed differently over time. Design/methodology/approach The development of the logistics market is addressed through two survey-based variables. Logistics costs are used to measure the size of the logistics market, whereas logistics outsourcing is analyzed to measure the development phase as well as the market potential for logistics service provision. Findings Estonian logistics outsourcing market was found to be underdeveloped and small compared to the Finnish market. At the same time, the logistics costs of Finnish companies are high and rising, whereas the costs of Estonian firms are declining. Research limitations/implications The results imply that the level of outsourcing might explain the visibility of logistics costs, which should be taken into account when making estimates on logistics costs both at the firm as well as on country level. Social implications Logistics sector is an important source of national competitiveness and employment. This research identifies subareas for the two countries on how to develop competitiveness through the logistics market. Originality/value This research provides a unique method to estimate the size of logistics outsourcing market in these two countries. It also represents as one of the rare works to provide multiyear comparison between countries in logistics costs.</p

ESTONIAN LOGISTICS MARKET 2018 SURVEY: ANALYSIS AND FINDINGS

Background: Estonian logistics market survey has been completed three times (during years 2007, 2012 and 2018), and this research reports development from the most recent survey concerning operating conditions and logistics costs as well as performance. Survey concerns manufacturing, trading and logistics service companies.Methods: Research data was gathered through an online survey executed during summer and early autumn of 2018. The survey received a total of 122 responses from manufacturing, trade and logistics service provision. Results of the study are compared to earlier years, and with the same approach completed Finnish logistics market survey.Results: Survey responses showed that Estonian logistics market has been experiencing overheating and the costs of logistics activities are clearly increasing. Logistics service providers have experienced negative effects resulting thereof more than manufacturers or trading companies. Inventories and delivery times have increased, which has resulted in longer cash conversion cycles. Other than inventory and lead time related supply chain metrics have developed positively, indicating that the overall performance in Estonian logistics has remained high.Conclusions: Increase of logistics costs and inventories remain as main future challenge for Estonian logistics. In other regards, development has been good, and quality of e.g. logistics services and customs have increased and is at high level.</div

Leveraging supply chain networks for sustainability beyond corporate boundaries: Explorative structural network analysis

The ability of companies to achieve systemic sustainability goals is influenced by the structure of the larger supply chain network in which they reside. However, managing sustainability throughout multi-tiered global supply chain networks and complying with new supply chain law initiatives has proven to be a great challenge for many firms. This article investigates node- (firm) and network-level network structural characteristics and their implications for sustainability. The empirical study first explores structural patterns in a network of 5458 companies and then focuses on a sub-set of 604 companies associated with the automotive industry. The following four sustainability archetypes were identified: impassive networks, environmentally focused networks, socially focused networks, and orchestrated networks. The article further specifies strategy options for lead firms, suppliers, and regulators in enhancing sustainability in each archetype. The most sustainable firms are typically the most central, not necessarily the ones closest to the customers. Regulators should target central firms for a ripple effect.</p