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VALUE OF INFORMATION IN PORT LOGISTICS
ROB ZUIDWIJKRZUIDWIJK@RSM.NL
TECHNOLOGY & OPERATIONS MANAGEMENT
1
SmartPort
ERASMUS SMART PORT: PORT PROFESSORSAfbeelding invoegen
Hein Klemann Professor in Social and Economic History, Erasmus School of History, Culture and Communication
Governance for a Sustainable Port
Ports as Nodes in Global Supply Chains
Drivers for Green Port Related Operations
Operational Excellence in Ports and Networks
Visibility for a Connected Port
Academic Agenda
Rob ZuidwijkAcademic Director
Research
Education Valorization
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generate
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knowledge
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Afbeelding invoegenAGENDA
• Introduction• Quality and Value of Information:
Container Transport • Inter-Organizational Systems:
Port Community Systems• Conclusions
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QUALITY AND VALUE OF INFORMATIONREFLECTION
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Afbeelding invoegenQUALITY OF INFORMATION: MULTIPLE DIMENSIONS
Source: Diane M. Strong, Yang W. Lee, and Richard Y. Wang (1997). Data Quality in Context. Communications of the ACM 40(5): 103-110.
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DEFINITION• Irrespective of the information
provided, do you believe that the information is accurate, considering the person or organization you got it from?
• Reputation of the information source
CERTIFICATION• A container contains of a number
of consignments;• Integrity of all consignments has
been certified; • The loading of the container with
the consignments has been monitored by a certified third party;
• The container has been sealed with an electronic seal that reports tampering etc.
• Do you believe that the container is secure?
• What is the role of believability of information here?
BELIEVABILITYAfbeelding invoegen
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DISCUSSION• It has been agreed earlier that a
shipment needs to arrive at 12 PM;• It actually arrives at 13 PM;• What is the value of advance
information?
FORECASTING• Expected Time of Arrival (ETA) of a
sea vessel at the Port of Destination should “converge” to the Actual Time of Arrival (ATA) as time progresses;
• What is the benefit of fast convergence?
TIMELINESSAfbeelding invoegen
timeATA
ATA
ETA
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BENEFITS OF BETTER FORECASTSAfbeelding invoegen
Alignment of arrival distribution and planning time window creates opportunity to reduce expected costs.
Early arrivalCost of re-planning or in-transit inventory cost
Late arrivalCost of re-planning and in-transit inventory cost
BenefitOpportunity of alignment
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Afbeelding invoegenVALUE OF INFORMATION
Value of information = the benefit of having information of a higher level of quality at your disposal;
Value of information is reaped when higher level of quality is used to make better decisions;
Value of information:- cost reduction- revenue enhancement- less emissions- more reliable service- less accidents- ...
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INTER-ORGANIZATIONAL SYSTEMSREFLECTION
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Afbeelding invoegenIOS = INTER ORGANIZATIONAL SYSTEMS
SUPPLY CHAIN MANAGEMENT SYSTEMPORT COMMUNITY SYSTEM
Information sharing betweenorganizations in a port cluster
Information sharing betweenorganizations in a supply chain
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PORTS IN GLOBAL NETWORKSAfbeelding invoegen
Sea Terminal
Producer/Shipper
Sup
plie
rs
Shipping Line
Inland Pre-carriage
Port AuthorityCustoms
Consigners/Consignees
Transshipment and Storage
Authorities
Logistic Service Providers
Forwarders and Agents
Producer/Shipper
Sup
plie
rs
Producer/Shipper
Sup
plie
rs
Port of OriginCommunity
Sea Terminal
Port AuthorityCustoms
Port of DestinationCommunity
WholesalerReceiver R
etailers
Inland Post-carriage
WholesalerReceiver R
etailers
WholesalerReceiver R
etailers
GlobalSupplyChain
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PORTS IN GLOBAL NETWORKSAfbeelding invoegen
Sea Terminal
Producer/Shipper
Sup
plie
rs
Shipping Line
Inland Pre-carriage
Port AuthorityCustoms
Consigners/Consignees
Transshipment and Storage
Authorities
Logistic Service Providers
Forwarders and Agents
Producer/Shipper
Sup
plie
rs
Producer/Shipper
Sup
plie
rs
Port of OriginCommunity
Sea Terminal
Port AuthorityCustoms
Port of DestinationCommunity
WholesalerReceiver R
etailers
Inland Post-carriage
WholesalerReceiver R
etailers
WholesalerReceiver R
etailers
Port Community
SmartPort
Afbeelding invoegenTWO TYPES OF INTER ORGANIZATIONAL SYSTEMS
• Supply Chain Systems– SAP, Oracle, …, GT Nexus, Tradebeam, etc.
• Port Community Systems– Portbase (Rotterdam and Amsterdam)– Dakosy (Hamburg)– PortNet (Singapore)– etc.
• A Landscape of Inter-Organizational Systems!
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IOS: PORT COMMUNITY SYSTEMAfbeelding invoegen
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PORT COMMUNITY SERVICESAfbeelding invoegen
Rail planningThe service Rail planning ensures optimal exchange of information surrounding the processing of trains and their cargo in the ports. Rail operators, traction suppliers, rail terminals, sea terminals and rail infrastructure operators stand to benefit. The information exchange in the service allows them to work more efficiently. It allows the processing of trains to become considerably more streamlined, saving the sector around 50,000 phone calls a year. On average it takes 1 1/4 hours less to process the administration associated with a train.
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WHAT BUSINESS MODEL?Afbeelding invoegen
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• Users are both producers of data and consumers of services
• The platform provides an infrastructure
• The services provide value to the users
• The platform provides value to the services
• What prices should the users pay and how should these revenues be distributed among services and platform?
Factors• Structure of interdependent
services• Service value dependent on
adoption rate of users
PRICING OF SERVICES ON A PLATFORMAfbeelding invoegen
Service 1
Service 3
Service 2
price/fee
User 2
User 1
User 3
valuePlatform
data/infrastructure
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Afbeelding invoegenCONCLUSIONS
SUMMARY• Quality of information and value of information are both
multi-dimensional• Landscape of inter-organizational systems• Pricing of services on information service platforms
CONCLUSIONS• There are methods to compute the value of information• Value of information in logistics requires further research
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Afbeelding invoegenDISCUSSION