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1 – 10 of over 5000The increase of containership sizes driven by the need to create greater economies of scale seems to be an endless process. Vessels of more than 21,000 TEU are presently on order…
Abstract
Purpose
The increase of containership sizes driven by the need to create greater economies of scale seems to be an endless process. Vessels of more than 21,000 TEU are presently on order. The purpose of this paper is to question whether a positive effect still remains at present mega ship sizes and, even if this was the case, whether such presumably small effect would be outweighed by costly operational impacts for the lines and the ports out of the huge ship sizes.
Design/methodology/approach
The effect of increasing ship sizes on the three major cost items in container shipping have been investigated by extrapolating founded regression curves, applying respective physical laws and referring lumpsum crewing cost (as the major part of the vessel’s running costs) to various ship sizes.
Findings
In this paper, it is shown that further effects of lower slot costs lessen while ships get larger. Hence, a further increase in ship sizes would not significantly reduce transport costs anymore. In contrast, the necessary efforts to prepare the ports for ships of ever-increasing size are growing over proportionally with every additional metre of draught and/or beam. It is shown that an ongoing increase of containership sizes, e.g. in the Europe-Far East trade, does not bring any further benefit, neither for the ports and their terminals nor even for the lines itself and not even for the shippers! It is an amazing mechanism that all stakeholders act rationally on their own, but the overall effect for all of them (including the public) has turned into negative.
Originality/value
The results may pave the way for a closer cooperation among ports, e.g. within the Hamburg-Le Havre range. Ports and terminals may see the opportunity to escape the spiral of ongoing efforts for deepening and widening the fairways and installing ever-bigger gantry cranes by agreeing on a joint policy with regard to maximum ship size.
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Steve Eldridge, Mohammed Balubaid and Kevin D. Barber
The purpose of this article is to examine the difficulties associated with quality costing and propose a solution based upon the use of knowledge management techniques.
Abstract
Purpose
The purpose of this article is to examine the difficulties associated with quality costing and propose a solution based upon the use of knowledge management techniques.
Design/methodology/approach
A widely available software tool is used to create a quality costing ontology based upon the prevention appraisal failure classification of quality costs. This ontology is used for the collection, processing, sharing and use of quality cost‐related knowledge. The ontology was evaluated using case study data and compared with conventional approaches to quality costing.
Findings
The quality costing ontology is easier and more efficient than conventional quality costing methods. It has greater capability in terms of the analysis and use of quality costing knowledge and overcomes the barriers to quality costing due to poor understanding and awareness.
Research limitations/implications
The quality costing ontology provides a platform for researchers to investigate quality cost behaviour within a well‐structured environment. The use of alternative classifications to prevention appraisal failure in the ontology need to be investigated further.
Practical implications
Traditionally, training and education have been used to rectify poor understanding and awareness of quality costs but with limited success. The quality cost ontology provides an alternative solution that uses knowledge management (KM) technology and is based on information systems.
Originality/value
The authors could find no research or published paper that has discussed the role of KM in quality costing.
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This paper attempts to understand the relationship between retailer market power and the slotting allowances demanded by large retailers.
Abstract
Purpose
This paper attempts to understand the relationship between retailer market power and the slotting allowances demanded by large retailers.
Design/methodology/approach
A bilateral oligopoly model is used to study slotting allowances in retailing industries. The upstream market is a symmetric duopoly. In the downstream, a large retailer competes with many small retailers. Only the large retailer is capable of requiring slotting fees.
Findings
The model suggests that the large retailer uses slotting fees to capitalize its market power. By requiring the fees from manufacturers, the large retailer raises the wholesale prices faced by competing small retailers, and therefore, lowers their profit margins and market shares.
Research limitations/implications
More empirical evidences are desirable to support the theory. Regarding the modeling, it might be interesting to explicitly model the bargaining between the large retailer and manufacturers.
Practical implications
Requiring slotting allowances is an exclusionary strategy of large retailers. Abuse of slotting allowances might have antitrust concern.
Originality/value
This paper presents probably the first analytic model that considers slotting allowances in an asymmetric bilateral oligopoly. This approach is interesting because slotting allowances are most likely to make difference when manufacturers are oligopolistic and retailers are heterogeneous in sizes.
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This study aims to explore the challenges of truck-sharing and effective ways of dealing with those in achieving supply chain collaboration and collaboration in transportation…
Abstract
Purpose
This study aims to explore the challenges of truck-sharing and effective ways of dealing with those in achieving supply chain collaboration and collaboration in transportation management (e.g. transport collaboration) for transport capacity expansion, and reducing carbon emission and traffic congestion for integrating environmental and social sustainability issues. This paper also reveals insights into successful shared-transportation and a reduction in empty trips.
Design/methodology/approach
This exploratory qualitative study was conducted by means of interviewing road carriers from the container transportation industry.
Findings
In a truck-sharing initiative, technical issues (e.g. carrying capacity) arise, some of which involve the container truck and some involving constraints that cannot be controlled, such as driving restrictions, seaport operating hours, and the presence of the large number of container categories pertaining to the industry. Therefore, a significant amount of “structural empty running” may always prevail. It should also be noted that some, seemingly vital, constraints can actually be changed, treated, or modified for better truck-sharing outcomes, such as building a foundation of trust and establishing coordination among road carriers.
Practical implications
A probable solution to the problem of increasing hinterland transport capacity is to make appropriate use of the huge number of idle truck slots that exist; this could be achieved by encouraging the acceptance of the challenges of truck-sharing realistically and suggesting an approach to handling them.
Originality/value
To broaden its appeal, truck-sharing initiatives must be able to overcome challenges by combining theoretical insight with an understanding of the practical aspects of such an endeavor. This original research fosters knowledge that is unique and which also has real-life applications in maritime logistics studies and supply chain literature for both port authorities and container road carriers.
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Mohanbir Sawhney, Pallavi Goodman and Ori Broit
In 2014 WMS Gaming, a manufacturer and seller of slot machines to casinos, was considering a redesign of its existing revenue model. As technology evolved and customer demand for…
Abstract
In 2014 WMS Gaming, a manufacturer and seller of slot machines to casinos, was considering a redesign of its existing revenue model. As technology evolved and customer demand for gaming solutions intensified, new and innovative revenue models were being adopted in other technology markets. Most notably, the subscription revenue model, in which customers paid a monthly subscription fee rather than a large upfront fee, was becoming widely adopted in the software industry. Product manager Dayna Stone had the task of evaluating several revenue models and recommending one that most suited WMS's business needs and at the same time took customer needs and wishes into consideration. Complicating this decision were several factors that would have to be kept in mind. Americans' love of gaming had led to a mushrooming of casinos, which meant increased competition for casino dollars. Yet the financial crisis of 2008 and its aftermath had weakened demand for casinos. In addition, casinos, depending on the type of customers they attracted, differed in their appetite for innovation and maintenance of their slot machines. Students will step into the shoes of Dayna Stone as she undertakes the task of weighing these factors and selecting the right revenue model.
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This paper deals with network configurations in liner shipping and inland transportation from a carrier's perspective. The cost efficiency of different possible network…
Abstract
This paper deals with network configurations in liner shipping and inland transportation from a carrier's perspective. The cost efficiency of different possible network configurations in the foreland-hinterland continuum is discussed based on a cost model and on a qualitative analysis. It is demonstrated that the tendency towards cargo concentration in a limited number of ports has led to the redesign of collection and distribution networks in the hinterland. Further cargo bundling in the foreland-hinterland continuum towards even fewer ports and inland centres is only interesting from a cost perspective if considerable economies of scale and density can be realised in the associated hinterland networks. The more cost efficient the network becomes, the less convenient that network could be for the shippers ' needs in terms of frequency and flex ibility. As such, the future configuration of liner shipping networks and inland transport networks will largely depend on the balance of power between carriers and shippers.
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Samsul Islam, Tava Olsen and M. Daud Ahmed
Empty container trucks may cause a deficit in transport capacity and contribute to congestion and emissions in the port territory. Reengineering of the container truck hauling…
Abstract
Purpose
Empty container trucks may cause a deficit in transport capacity and contribute to congestion and emissions in the port territory. Reengineering of the container truck hauling process to introduce truck-sharing arrangements using the truck appointment system has the potential of reducing the number of empty-truck trips. The paper aims to discuss these issues.
Design/methodology/approach
This research evaluates the results from an investigation of the truck appointment system using a case study approach. The data collection phase involved primary and secondary sources along with using publicly available data on port operations.
Findings
The study explores a dynamic truck-sharing facility for a computer-based matching system to assign probable export containers to available empty slots of a container truck. The proposed model reengineers the truck appointment system with a potential to reduce the number of empty-truck trips to increase container transport capacity around seaport gates.
Research limitations/implications
Due to continuous increases in container-freight traffic, leading seaports of the world are experiencing a capacity shortage resulting in traffic congestion. The research findings are useful in practice as the proposed truck-sharing model can be introduced to enhance capacity in the container transport chain of the port territory.
Originality/value
The empty-trucks problem has not been addressed much in studies from a decentralized perspective where all truck operators have an equal chance to contribute to optimize the supply chain in contrast with the typical one-company-based optimization. The solution addressed here uses the shared-transportation concept to cover the research gap.
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Gino Marchet, Marco Melacini, Sara Perotti, Monica Rasini and Elena Tappia
Companies are currently moving from multi-channel strategies to offer their customers an omni-channel (OC) experience. So far, OC research has been mainly tackled from a…
Abstract
Purpose
Companies are currently moving from multi-channel strategies to offer their customers an omni-channel (OC) experience. So far, OC research has been mainly tackled from a sales-based view, with numerous operational challenges to be fully investigated yet. The purpose of this paper is to investigate how companies set the logistics variables in their OC management strategy and the business logistics models currently most adopted.
Design/methodology/approach
A two-step methodology was adopted. First, a systematic combining approach with scientific literature review and case studies allowed to derive a framework for classifying the key logistics variables and the related options. The framework was then used to conduct a qualitative survey targeting 92 Italian companies operating in food manufacturing, food retailing and non-food retailing. Collected data were analysed by means of cluster analysis.
Findings
Implementing an OC management strategy requires to set 11 logistics variables belonging to four strategic areas: delivery service, distribution setting, fulfilment strategy and returns management. A broad empirical investigation showed the choices made by companies when setting the logistics variables to implement an OC management strategy. Lastly, four business logistics models, differing in terms of both business sector and OC maturity, were discussed.
Originality/value
The proposed framework extends earlier studies by including additional significant logistics variables. The empirical analysis provides new insights on how to re-structure the business logistics model in OC, suggesting channel integration and the coexistence of multiple configurations as main enablers of an OC proposition.
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Hilde Meersman, Eddy Van de Voorde and Thierry Vanelslander
Ports are widely recognised as crucial nodes in international trade and transport. However, for various reasons, capacity does not always match demand: sometimes there is…
Abstract
Ports are widely recognised as crucial nodes in international trade and transport. However, for various reasons, capacity does not always match demand: sometimes there is overcapacity, whereas in other cases, demand exceeds capacity and there is a shortage of the latter. This chapter therefore looks at where port congestion occurs, both globally and in the port-calling chain; it analyses actual responses by various chain actors, and it sheds some light on potential future evolution and reaction patterns.
Congestion, in general, can feature various forms of appearance: it can be more or less hidden, featuring congestion costs, or it can be visually present, featuring queues which are building up. The chapter discerns eight zones in the port-calling chain where congestion may emerge. As a result of a wide literature search, supplemented with a survey, it can first of all be observed that quite some congestion seems to occur, globally spread, and hitting larger as well as smaller ports. Most of the congestion is generated at the terminals, hinterland connection points and hinterland transport itself.
In terms of reaction patterns, one would assume that pricing throughout the system is adapted in such way that demand equals capacity. In practice, prices are hardly making any effort to make marginal revenue equal marginal cost. The reason is mainly that the power balance is quite strongly in favour of shipping companies, who impose on port and port operators the need to expand capacity at low fees. Port operators, in turn, apply various kinds of technical and procedural adaptations. The same is true for hinterland operators.
Looking towards the future, it seems that with the increase in world trade, the risk of port congestion will be even more outspoken, be it in some parts of the world more than in others. It is also very much likely that most problems will occur landside, as this is the part of the chain where solutions are least easy: who is going to take the initiative, how will co-ordination take place and where will the funding come from? Most actors seem to be aware of this trend, and seek for solutions like dedicated terminals and vertical integration or co-operation.
With the above observations, the chapter sheds some light on where the future needs and trends in the abatement of capacity will lie. It is therefore useful from a scientific point of view as well as with an eye on policy-making and operational port management.
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The purpose of this paper is to evaluate the performance on standardizing appointment slot length in a primary care clinic to understand the impact of providers’ preferences and…
Abstract
Purpose
The purpose of this paper is to evaluate the performance on standardizing appointment slot length in a primary care clinic to understand the impact of providers’ preferences and practice differences.
Design/methodology/approach
The treatment time data were collected for each provider. There were six patient types: emergency/urgent care (ER/UC), follow-up patient (FU), new patient, office visit (OV), physical exam, and well-child care. Simulation model was developed to capture patient flow and measure patient wait time, provider idle time, cost, overtime, finish time, and the number of patients scheduled. Four scheduling scenarios were compared: scheduled all patients at 20 minutes; scheduled ER/UC, FU, OV at 20 minutes and others at 40 minutes; scheduled patient types on individual provider preference; and scheduled patient types on combined provider preference.
Findings
Standardized scheduling among providers increase cost by 57 per cent, patient wait time by 83 per cent, provider idle time by five minutes per patient, overtime by 22 minutes, finish time by 30 minutes, and decrease patient access to care by approximately 11 per cent. An individualized scheduling approach could save as much as 14 per cent on cost and schedule 1.5 more patients. The combined preference method could save about 8 per cent while the number of patients scheduled remained the same.
Research limitations/implications
The challenge is to actually disseminate the findings to medical providers and adjust scheduling systems accordingly.
Originality/value
This paper concluded standardization of providers’ clinic preference and practice negatively impact clinic service quality and access to care.
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