EFFICIENT SUPPLY CHAINS THROUGH EFFECTIVE SEAPORT ORGANISATIONS

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EFFICIENT SUPPLY CHAINS THROUGH EFFECTIVE SEAPORT
ORGANISATIONS

• Dr Jafar Sayareh (Chabahar Maritime University,
  CMU)
• Dr Barrie Lewarn

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Introduction

• Maritime Transportation
• is the oldest form of mass fright transportation
  and the most cost-effective way of moving goods.
  It is an imperative element of supply chain and
  considered as one of the services that
  effectively supports the international trade.
• Seaports
• Are the principal modal interchange points for
  sea freight movements. They can play a central
  role in facilitating the flow of trade through
  integration of their own functions and the
  broader logistics activities of others.
• Seaport Organisations
• Can act as centres to manage the movements of
  freight from origin to destination and hence
  increase the efficiency of freight movement.

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Logistics and Supply Chain Management

• Supply Chain Management (Global Supply Chain
  Forum)
• Is the integration of key business processes from
  end user through original suppliers, which
  provides products, services, and information that
  add value for customers and other stakeholders.
• Logistics Management (Council of Supply Chain
  Management)
• Is that part of supply chain management that
  plans, implements, and controls the efficient,
  effective forward and reverse flow and storage of
  goods, services and related information between
  the point of origin and the point of consumption
  in order to meet customers requirements.
• Logistics does not equate Supply Chain Management

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Logistics and Supply Chain Management

• SCM (Christopher 1998)
• As the management of organisations that are
  involved, through upstream and downstream
  linkages, in the different processes and
  activities that produce value in the form of
  products and services in the hands of the
  ultimate consumer.
• The Focus of SCM
• SCM is a network that links all
  organisations/partners in the chain
• Integration of functions
• Management of organisations
• Just-in-time (JIT), quick response, lead-time
  management, lean logistics, agile logistics

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Seaports and their Organisations in the Supply
Chain

• Seaports
• Are much more than places for transferring cargo
• They act as gateways to access international
  markets
• They are a central place of economic and cultural
  interchange
• They are an influential factor in regional and
  national development
• They are an integral component of distribution
  system
• Seaport Organisations
• The role of a seaport organisation is not limited
  to organising and controlling port related
  operations and activities
• They should be in command of integrating and
  facilitating a network/supply chain
• They should develop a relationship with other
  transport nodes as well as other elements in the
  supply chain

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Seaports and their Organisations in the Supply
Chain

• Previous works
• The position and role of seaports
  organisations/authorities in the total supply
  chain and their significant contribution to
  economy have been appropriately described in the
  literature however it seems that the
  organisational Effectiveness (OE) of seaport
  organisations has been totally ignored
• Despite the importance of seaports as a critical
  element of the logistics and supply chain network
  and their impacts on national development, not
  much attention has been paid to the effectiveness
  assessment of their organisations
• Present work
• The efficiency and performance of seaports is
  directly or indirectly influenced by their
  organisations and the styles adopted to manage
  them therefore
• it can be postulated that effective seaport
  organisations will considerably improve the
  efficiency and performance of their seaports
  which, in turn, would have positive effects on
  the efficiency of total supply chain.

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Organisational Effectiveness (OE)

• OE
• Is a chapter of organisational theory
• Emerged in the early 1950s
• Finding a correct and meaningful definition
  and/or construct has always been a difficult task
  for all researchers
• Has become a school of thought for many
  organisational theorists and a crucial step in
  the organisational assessment process
  particularly from the 1950s to 1980s, during
  which many researchers have offered a variety of
  models
• OE is defined
• as the extent to which an organisation as a
  social system, given certain resources and means,
  fulfils its objectives without incapacitating its
  means and resources and without placing undue
  strain upon its members

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Organisational Effectiveness (OE)

• OE Models
• Univariate Models (unidimensional, single
  criterion)
• Multivariate Models (multidimensional, multiple
  criteria)
• There are numerous models for assessing OE in
  different organisations, outstanding ideas on how
  successful ports might manage and market their
  business, how to improve their operational
  performance, and how to measure their KPIs
• Nothing has been done (no model exists) on the
  effectiveness of port organisations, the ways for
  assessing OE of port organisations and possible
  impacts of such assessment

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List of appropriate OE criteria for assessing OE
in port organisations (F Frequency)
Source Sayareh Lewarn (2006)
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A Model of OE for Port Organisations

• We propose a general model that not only can be
  applied to seaport organisations but to other
  organisations in the supply chain as well
• Since there is no algorithm of science that will
  specify the indicators that should be labelled as
  criteria of OE for a specific organisation, and
  as the term of effectiveness implies judgement,
  we based the process of criteria selection on
  value judgement and assumptions therefore
• Of the 28 criteria, only 13 criteria of Output
  quality, Leadership, Planning, Growth, Stability,
  Adaptability/Flexibility, Productivity,
  Profitability, Efficiency, Information
  Management Communication, HR Development,
  Customer Satisfaction, and Professionalism were
  considered to be satisfying the purpose of
  developing a general model of OE for seaport
  organisations

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A Model of OE for Port Organisations

• Theoretical Framework
• The emphasis is on the processes and the
  interactions between the elements rather than
  individual criteria. These processes can be
  spelled out through a theory
• 1st assumption to be effective, seaport
  organisations first must produce high quality
  outputs (services)
• 2nd assumption organisations must be stable,
  continuously improve, have a proper planning in
  place and possess a capable management
  (leadership) to steer the seaport organisation
  towards producing quality services
• 3rd assumption effective seaport organisations
  must do more than producing quality output. There
  are a range of other processes that are closely
  related to and supportive of output qualitysuch
  as productivity, profitability, Adaptability/
  Flexibility,processes, just to name a few

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A Model of OE for Seaport Organisations
Adaptability/Flexibility
Productivity
Profitability
Leadership
Output Quality
Information Management Communication
Efficiency
Growth
Stability
Planning
Customer Satisfaction
HR Development
Professionalism
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Overview of the Hypothesised Model

• 13 processes are hypothesised as contributing to
  OE of seaport organisations
• Main process output quality constitutes the
  core of OE and therefore placed at the centre of
  the model as the main process
• Mediating processes leadership, stability,
  growth and planning function as mediating
  processes. They orchestrate and harmonise the
  movement of other processes
• Supporting processes these processesadaptabilit
  y/flexibility, productivity, efficiency,
  customer satisfaction, information management
  communication, professionalism, HR
  development, and profitabilityinteract with
  each other and 5 higher level processes.

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Conclusion

• Focused on seaport organisations from the
  perspective of logistics and supply chain
  management
• Conceptualised a model or an approach to OE
  suitable for assessment and improvement of OE
  (primarily) in seaport organisations and
  (potentially) in any other organisations in the
  supply chain
• For complex organisations or chains of
  organisations, such as those involved in
  logistics and supply chain, assessment of their
  OE is a must

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Thank You