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VALUE OF INFORMATION IN PORT LOGISTICS

ROB ZUIDWIJKRZUIDWIJK@RSM.NL

TECHNOLOGY & OPERATIONS MANAGEMENT

1

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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

share

generate

apply

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

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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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