Evaluating the integration of seaport container terminals in supply chains

Abstract

Purpose -The purpose of this paper is to define and empirically develop measures to evaluate the extent of integration of seaport container terminals in supply chains. Design/methodology/approach -A literature review identified four key variables hypothesized to be part of the higher-order construct of "terminal supply chain integration (TESCI)". The hypotheses were theoretically justified a priori and data for operationalizing the conceptualized variables obtained via a large-scale survey of container terminal operators. A model was developed and validated using confirmatory factor analysis. Findings -The validated variables of the higher-order construct of TESCI included "information and communication systems", "value-added services", "multimodal systems and operations" and "supply chain integration practices".Research limitations/implications -The study develops measures from the standpoint of the container terminal (the centric supply chain actor). Supply chains involve a network of companies and it would be useful to obtain data as to integration from other supply chain participants. The usual caveats of cross-sectional research apply and longitudinal case studies may provide supplementary information. Practical implications -There are valuable practical implications for container terminals that seek to measure the extent of integration into supply chains and for port users that place value on container TESCI in their choice and evaluation criteria. Originality/value -The study is the first of its nature that attempts to provide a valid theoretical construct and empirical measures of seaport container TESCI. The study shifts container TESCI from an abstract concept to a theoretical construct with validated measures.

Port supply chain integration: analyzing biofuel supply chains

“…In this case, network integration can be achieved by extending their seaport terminal into, for example, inland terminals in the hinterland (e.g., Veenstra, Zuidwijk, and Van Asperen 2012). Literature has identified linkages between port integration practices and significant improvements in terms of productivity, cost reduction, delivery quality, and shorter cycle time and the effectiveness of the supply chain as a whole (Panayides and Song 2008;Woo, Pettit, and Beresford 2013). In our knowledge, however, hardly any research has developed a structured and comprehensive understanding of how ports can achieve supply chain integration.…”

Seaport network performance measurement in the context of global freight supply chains

“…The authors suggested that these parameters form a basis for the exact attributes that contribute to port competitiveness in the supply chain. Panayides and Song (2008) extended the previous work by developing a measurement instrument that can be used by researchers to measure the extent to which a port or container terminal is supply chain oriented. Via a survey of container terminal operators in Europe and East Asia, the constructs were validated using confirmatory factor analysis.…”

“…Via a survey of container terminal operators in Europe and East Asia, the constructs were validated using confirmatory factor analysis. Tongzon et al (2009) studied the port of Incheon as a case in point and measured the degree of its supply chain orientation based on the indicators developed by Panayides and Song (2008). The study found that ports or terminals in practice may not be supply chain oriented as theories predict.…”

Daily Maersk’s impacts on shipper’s supply chain inventories and implications for the liner shipping industry

“…It is well established in the literature that maritime transport services should be studied in the context of the supply chain that they are embedded in, as supply chain management is now widely practiced by industry professionals (Robinson 2002;Christopher 2005;Carbone and Gouvernal 2007;Cahoon and Notteboom 2008;Zhang and Huang 2012). Many research papers have studied ports from a supply chain perspective, for example, the value propositions and strategic roles of ports/terminals (Robinson 2002;Paixão and Marlow 2003;Robinson 2006;Mangan, Lalwani, and Fynes 2008;Rodrigue and Notteboom 2009;Zhang, Lam, and Huang Fothcoming), port/terminal integration in the supply chain (Carbone and De Martino 2003;Panayides and Song 2008;Song and Panayides 2008;Panayides and Song 2009;Tongzon, Chang, and Lee 2009), port performance measurements (Marlow and Paixão Casaca 2003;Bichou and Gray 2004), and port competition in supply chain systems Yap 2011a, 2011b). Surprisingly, very few papers (Vernimmen, Dullaert, and Engelen 2007;Notteboom and Rodrigue 2008;Saldanha et al 2009;Lam and Van De Voorde 2011) have adopted a supply chain perspective to study liner shipping services.…”