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Vessel logistics and shipping operations management
Published in Dong-Ping Song, Container Logistics and Maritime Transport, 2021
On the other hand, there is also a strong need from the shipping lines’ perspective to pursue vertical integration. The potential advantages of vertical integration for shipping lines include the following aspects (Fremont 2009). Firstly, vertical integration can increase shipping lines’ competitiveness by providing value-adding services and differentiating the transport services from their competitors. This is particularly appealing when the cost-cutting measures are facing difficulty. Secondly, vertical integration provides greater control of the transport chain, which can facilitate the management of both vessel logistics and container logistics. In particular, container logistics involve the storage and flow of the containers in inland transport, which is traditionally beyond the control of shipping lines. Thirdly, vertical integration helps capture the cargo at source by establishing direct relationships with the shippers instead of relying on freight forwarders to fill the ships. This would provide an opportunity for shipping lines to generate more stable cash flows and to reduce exposure to highly volatile freight rates. Fourthly, vertical integration can increase efficiency and effectiveness through information sharing and supply chain coordination between the partners in the vertical channel. Fifthly, vertical integration can reduce the transaction costs between the channel members.
Addressing the policy-implementation gaps in water services: the key role of meso-institutions
Published in Aziza Akhmouch, Delphine Clavreul, Sarah Hendry, Sharon B. Megdal, James E. Nickum, Francisco Nunes-Correia, Andrew Ross, OECD Principles on Water Governance, 2020
Claude Ménard, Alejandro Jimenez, Hakan Tropp
Third, building such meso-institutions involves significant transaction costs. Economic transaction costs are the costs of planning, monitoring and bringing to its achievement the allocation and transfer of rights to use the resource or its associated services (Williamson, 1996). Examples are the costs of contracting with a private operator, or monitoring the delegation of management to local authorities. Most analyses of these costs have so far focused on the micro-institutional level, e.g., the costs and benefits of operating through contracts between a public authority and a private operator rather than offering the service through a public monopoly.4 However, there are also costs attached to meso-institutions, such as those of running a regulatory agency, the bureaucratic costs of a public department monitoring water services etc. These costs may well challenge the appropriateness of the solution selected to implement water policies (for illustrations, see Ostrom, 2005, 2014). Unfortunately, there are very few such comparative assessments so far (but see Libecap, 2014, and Vatn, 2015, for environmental policies; and Ménard, 2016, for fisheries).
An introduction to policy and policy development
Published in Mark Zacharias, Jeff Ardron, Marine Policy, 2019
Stavins (2003) suggests that trading systems are likely to be feasible and appropriate for situations in which: There is a willingness to grant private property or exclusive access rights to a common property resource.The traded commodity is relatively homogeneous (e.g. CO2, a fish stock).Resource or environmental conservation is a principal objective. Tradable permits have been shown to be effective in theory (through economic modelling) and in practice. Among the benefits of this system are certainty that environmental or resource use thresholds will not be exceeded, economic growth will continue without compromising environmental quality or resource yields and finding the most cost-effective methods to reduce production of externalities. Disadvantages to permit trading schemes are centred on both the costs of establishing initial allocations and operational transactions. Transaction costs include obtaining market-relevant information, negotiating trades and compliance and verification costs. A summary of considerations in the design of permit trading schemes is provided in Box 5.5.
Exploring the potential of blockchain-enabled lean automation in supply chain management: a systematic literature review, classification taxonomy, and future research agenda
Published in Production Planning & Control, 2023
Aaron Jackson, Virginia L. M. Spiegler, Kathy Kotiadis
BCT is a key enabler for decentralization and its features are proven to enable interoperability between distributed systems. In its broadest sense, the BCT is rooted in the philosophy of using open source, open verified code where data management, transaction, monitoring, and rules of engagement happen in a decentralized manner across multiple nodes (Zutshi, Grilo, and Nodehi 2021). What sets BCT apart from other I4.0 technologies is its ability to provide a digital infrastructure for hitherto disconnected and untrusting agents to communicate in a peer-to-peer manner. The integrity of the network can be secured through a distributed consensus mechanism, which is an advanced cryptographic technique that allows involved participants to reach agreement about the true state of shared data. One of the most used consensus mechanisms is the Proof-of-Work (PoW) protocol adopted in the Bitcoin system. The transparent nature of the technology allows unrestricted traceability of transactions performed within the LA system. As data is ensured through cryptographic proof, untrusted agents can directly interact with each other in real-time, without the need for a trusted third party. Due to the absence of a trusted third party, associated transaction costs can be reduced or even eliminated.
A social network theory perspective on the potentials of enterprise social media for purchasing and supply management
Published in International Journal of Logistics Research and Applications, 2022
Hendrik Birkel, Julian M. Müller
Operational efficiency in the context of our research can be associated with reduced transaction costs. Transaction costs can be defined as costs for activities, which exceed the costs for a service or a product, needed for the exchange of the product or the service between the two parties (Sarkis, Zhu, and Lai 2011). These include, in particular, transaction costs incurred for managing relationships and interaction with potential suppliers. The transaction cost theory states that transaction costs for transactors rise with increasing investments in their specialised assets since the transactor must protect itself from opportunism (Dyer 1997). Although investments in specialisation increase productivity, these transaction-specific investments are subject to the pitfall that as the degree of specialisation increases, the value for alternative uses decreases (Dyer 1997). This can lead to a lock-in effect through, strengthening ties among members, and weakening their flexibility, increasing the risk of opportunistic actions (Buvik and Andersen 2016).
Impact of information and communications technology alignment on supply chain performance in the Industry 4.0 era: mediation effect of supply chain integration
Published in Journal of Industrial and Production Engineering, 2022
Chunyan Zhu, Xu Guo, Shaohui Zou
Many studies have shown that supply chain integration can improve FP of manufacturing companies. For organizations with high II, the management has sufficient conditions to improve FP through the supply chain integration strategy. Through supply chain integration, supply chain members reduce manufacturing, inventory, and transaction costs, and improve profitability. Research shows that both II through ICT and EI through e-business can improve firm performance at different levels, with the highest performance being achieved when both are present together. For most firms, the ability to contribute to II through ICT is generally stronger than EI through e-business, but the opposite is true for the software publishing industry, where business activities require close communication with customers and thus EI contributes more to performance improvement [14]. However, some scholars have pointed out that the effect of customer integration and supplier integration on FP is not significant. When the two interact together, FP of a company can be significantly improved. From the perspective of market operations, supply chain integration improves supply chain transaction efficiency, and companies can grasp customer demand information and achieve excellent FP by gaining more market share. On the other hand, delivery reliability reduces the company’s reverse logistics costs, helps build corporate image, improves customer loyalty, and promotes customer integration.