Sam Whelan, Asia correspondent, has written an interesting piece about a new port communication and collaboration system that is revolutionizing how Indian p[orts operate. It’s called PC51x, and it connects port users via secure messaging to exchange paperwork, financial info, and other messages. In trials, it reduced cost and time for interaction drastically.
And it did NOT involve blockchain. In fact, it uses only technology developed years ago and tested severely by those years of practice. It seems that for the user it operates like one of those doctor portals we have all become accustomed to in the US; annoying, but much faster and less annoying than waiting for her to call back (!@?^%$#!). And capable of much faster integration if those communicating have a desire to make it better and faster.
They have announced a portal type interface. This type of function is like what we used to call ‘middleware’, connecting systems with different data specifications and requirements, and letting them work out how to use the data. It makes a lot of sense to me.
I think any port could copy this with a little hard nose bargaining with those it collaborates with. Getting truckers on board might be more difficult without a good look at the systems they use every day. But for many others it makes sense.
But should the port be the driver? I think there is potential for 3PLs to usurp the role for their cargoes. Then we’d have to link in their systems. Hard, but not impractical, and easier than forcing all their shippers to use the port’s message portal. Everyone would benefit. And more players such as banks and customs could participate as well. Better that this should be driven by a lot of smaller players (if ports can be thought of as smaller) than by a national or global standards initiative, especially one from a single source. Let it evolve, I say.
via Online port community system a ‘game-changer’ for India’s shipping industry – The Loadstar
May 30, 2019 in Advanced Computing, Leadership, Logistics, Ports, Shipping, Strategy, Supply Chains
Tagged entrepreneurship, innovation, Logistics, ocean shipping, performance, ports, Shipping, technology, transportation
MIT’s Supply Chain blog presented a nice research study by Minhaaj Khan and Srideepti Kidambi and supervised by Dr. Tugba Efendigil. Their study is a good example of using less data rather than more to design a simple readily explainable approach that increases profits while reducing errors in ordering. It’s an easy win. Will it work in all scenarios? No, probably not. But it also doesn’t take long to try and implement. Occam’s Razor in action. It’s interesting they did not even need to know about promotions to achieve their gains. In many businesses the promotions can wreck plans. But in this consumer product it turns out they don’t disrupt.
Big data can sometimes confuse us rather than enlighten.
via Driving Risk Out of S&OP Forecasts
Sam Whelan penned a report on the alliance of four companies managing terminals at the Kwai Tsing terminals in Hong Kong.
Apparently shippers are furious. They believe there will be collusion and rates will rise as a result. Rates are already higher in Hong Kong than the mainland, and the Hong Kong fees add more cost.
The firms say it’s only to make the port more efficient and gain higher throughput. Volume handled has been declining in 2018 compared to the prior year.
It’s true that greater cooperation would most likely improve port throughput. Coordinating yard movements and berth use would offer possibilities for gains. I’m not sure it would have to be at the level of fixing prices. Improving port and yard bottlenecks is an important activity for firms in port management today.
But you can bet shippers will be on their guard for any collusion on pricing, especially when there’s a falling need for services. And since it’s China that is involved– these are Chinese firms– we can’t rule out geopolitical considerations that would be collusive. WE need to watch this one and see how the volumes and prices play out, just like the shippers will.
via Shipper hackles rise as Hong Kong box terminals announce operating alliance – The Loadstar
January 10, 2019 in Logistics, Ports, Production Operations, Shipping, Strategy, Supply Chains
Tagged alliances, China, performance, port management, ports, Shipping, supply chains, transportation