Ben Meyer in American Shipper has summarized a McKinsey report on port automation and port modernization. One interesting point in the discussion is that port operators are actually not seeing productivity gains in automated ports. Throughputs are actually slower. They have some explanations for this, but it is a real problem.
It struck me that automation is often seen as going hand in hand with better visibility of cargoes in the port and readiness for delivery. to the extent that the software requires automation, there may be a correlation here that does not bode well in the medium term.
In the long term it may well turn out better, but meanwhile, the customer may suffer.
via Cost, operational challenges hinder port automation
December 13, 2018 in Logistics, Ports, Production Operations, Shipping, Strategy, Supply Chains
Tagged automation, infrastructure, performance, ports, productivity, technology
Lee Hong Liang has written an interesting article about the call for standards in maritime documentation. To my view, it’s no doubt needed badly, and has been for years. The desires of maritime operators to work as local optimizers has hurt their presence in supply chains, which are the ultimate cooperative enterprise. That won’t do any more, especially with supply chains themselves changing so fast in the light of trade wars and operating location changes.
Devolution of supply chains is occurring, if I can borrow a word from the port governance literature. Now they are more focused on insuring end to end performance rather than perpetuating themselves to get ‘volume’. There are too many external factors driving changes. Trump’s trade wars are just the ultimate hyper-push to this trend.
Apparently INTTRA has been purchased by another firm, so it remains to be seen how much impact this will have. But the effort is much appreciated.
via INTTRA urges industry-led standards for containers and logistics
Naturally CIOs are an entrenched bunch. But the lack of use cases that actually work is definitely a barrier to experimentation, along with the inflated cost and risk of finding software engineers with the expertise.
via Gartner Survey Reveals the Scarcity of Current Blockchain Deployments