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Posted: November 16th, 2023
Marine Transport Logistics and Supply Chain Management - Covers topics in logistics, intermodal transport, supply chain optimization and digitalization in shipping.
Marine transport logistics and supply chain management are two interrelated fields that deal with the movement of goods and services across the sea and land. In this blog post, we will explore some of the topics in these fields, such as logistics, intermodal transport, supply chain optimization and digitalization in shipping. We will also provide some scholarly references for further reading.
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## What is Logistics?
Logistics is the coordination and management of a complex network of activities that deliver a finished product to end-users or customers. It includes sourcing raw materials and parts, manufacturing and assembling products, storage, order entry and tracking, distribution through various channels, and delivery to the customer (NetSuite, 2022).
Logistics is a crucial component of supply chain management, as it affects the cost, quality, speed, and reliability of the product or service. Logistics also involves planning, implementing, and controlling the flow of information, materials, and financial resources throughout the supply chain.
## What is Intermodal Transport?
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Intermodal transport is the movement of cargo using two or more modes of transportation, such as road, rail, sea, or air. Intermodal transport aims to optimize the efficiency, flexibility, and sustainability of cargo transportation by combining the advantages of each mode (Sinay, 2022).
Intermodal transport relies on standardized containers that can be easily transferred from one mode to another without handling the cargo itself. Containers are also equipped with tracking devices and sensors that enable real-time visibility and monitoring of the cargo condition and location.
Intermodal transport offers several benefits for shippers and customers, such as:
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- Reduced transportation costs by using the most economical mode for each segment of the journey.
- Reduced environmental impact by using low-emission modes such as rail or sea for long distances.
- Reduced congestion and accidents by reducing road traffic and improving safety.
- Increased flexibility and reliability by having multiple options and backup plans in case of disruptions or delays.
## What is Supply Chain Optimization?
Supply chain optimization is the process of improving the performance and efficiency of a supply chain by identifying and eliminating waste, reducing costs, increasing quality, enhancing customer satisfaction, and achieving strategic goals. Supply chain optimization involves analyzing data, applying mathematical models, using software tools, implementing best practices, and monitoring results.
Supply chain optimization can be applied to various aspects of a supply chain, such as:
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- Demand forecasting: predicting the future demand for products or services based on historical data, market trends, customer behavior, etc.
- Inventory management: managing the quantity, location, and availability of raw materials, work-in-progress, finished goods, etc.
- Production planning: scheduling the production activities to meet the demand while minimizing costs and maximizing utilization of resources.
- Transportation planning: selecting the optimal modes, routes, carriers, etc. for moving goods from suppliers to customers.
- Distribution network design: designing the layout and configuration of warehouses, distribution centers, terminals, etc. to facilitate the flow of goods.
- Supplier relationship management: establishing and maintaining long-term partnerships with suppliers to ensure quality, reliability, delivery, etc.
## What is Digitalization in Shipping?
Digitalization in shipping is the use of digital technologies to transform the processes, operations, and business models of the shipping industry. Digitalization in shipping aims to enhance the efficiency,
competitiveness, transparency, safety, security, and sustainability of maritime transport.
Some examples of digital technologies that are being used or developed in shipping are:
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- Blockchain: a distributed ledger system that enables secure and transparent transactions among multiple parties without intermediaries.
- Internet of Things (IoT): a network of connected devices that collect and exchange data using sensors and wireless communication.
- Artificial Intelligence (AI): a branch of computer science that enables machines to perform tasks that require human intelligence such as learning, reasoning, decision making, etc.
- Big Data Analytics: a process of extracting valuable insights from large volumes of structured or unstructured data using advanced techniques such as machine learning or data mining.
- Cloud Computing: a service that provides on-demand access to shared computing resources such as servers, storage,
software applications etc. over the internet.
Digitalization in shipping can offer several benefits for stakeholders such as:
- Reduced costs by automating processes,
optimizing resources,
and eliminating errors.
- Increased revenues by creating new services,
expanding markets,
and enhancing customer loyalty.
- Improved compliance by facilitating regulatory reporting,
ensuring data security,
and reducing fraud.
- Enhanced innovation by enabling collaboration,
experimentation,
and adaptation.
## Conclusion
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Marine transport logistics and supply chain management are dynamic
and complex fields that require constant improvement
and adaptation to meet the changing needs
and expectations
of customers
and society. By applying concepts
and techniques such as logistics,
intermodal transport,
supply chain optimization
and digitalization in shipping,
the shipping industry can achieve higher levels of efficiency,
competitiveness,
transparency,
safety,
security,
and sustainability.
## References
- NetSuite. (2022). Supply Chain Management vs Logistics: Differences and Similarities. Retrieved from https://www.netsuite.com/portal/resource/articles/erp/supply-chain-management-vs-logistics.shtml
- Sinay. (2022). What is the Maritime Supply Chain? Retrieved from https://sinay.ai/en/what-is-the-maritime-supply-chain/
- Port Economics, Management and Policy. (n.d.). Chapter 1.2 – Ports and Maritime Supply Chains. Retrieved from https://porteconomicsmanagement.org/pemp/contents/part1/ports-and-maritime-supply-chains/
- Udemy. (n.d.). Logistics and Ocean Shipping in Supply Chain Management. Retrieved from https://www.udemy.com/course/logistics-and-ocean-shipping-in-supply-chain-management/
- University of Tasmania. (n.d.). Global Logistics and Maritime Management. Retrieved from https://www.utas.edu.au/study/global-logistics-and-maritime-management
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