Logistics, Volume 4, Issue 4 (December 2020) – 13 articles

The rising popularity of smart factories and Industry 4.0 has made it possible to collect large amounts of data from production stages. Thus, supervised machine learning methods such as classification can viably predict product compliance quality using manufacturing data collected during production. Elimination of uncertainty via accurate prediction provides significant benefits at any stage in a supply chain. Thus, early knowledge of product batch quality can save costs associated with recalls, packaging, and transportation. While there has been thorough research on predicting the quality of specific manufacturing processes, the adoption of classification methods to predict the overall compliance of production batches has not been extensively investigated. This paper aims to design machine learning based classification methods for quality compliance and validate the models via case study of a multi-model appliance production line. The proposed classification model could achieve an accuracy of 0.99 and Cohen’s Kappa of 0.91 for the compliance quality of unit batches. Thus, the proposed method would enable implementation of a predictive model for compliance quality. The case study also highlights the importance of feature construction and dataset knowledge in training classification models. Full article

Effective management of cotton production logistics (CPL) against volatile environmental conditions while maintaining product quality and yield at acceptable costs has become challenging due to increasing global population and consumption and climate change. In CPL, the harvesting, processing, and storage of cotton are all linked, prone to various environmental risks (e.g., flooding) and operational risks (e.g., excess spraying of pesticides). Thus, it is crucial for a resilient and sustainable supply chain management to prioritize risks and chart suitable risk response strategies. For a CPL, we employ a system dynamics (SD) approach to investigate the likelihoods of environmental and operational risks and their impacts in four dimensions: variable costs, fixed costs, quality performance, and yield. Using the case of a textile company in Turkey, we demonstrate an end-to-end framework for mitigating CPL risks. SD simulation results show that increases in seed prices and machine and equipment breakdowns are the risks that most affect the unit cost, whereas pests and plant diseases most hurt cotton harvest yield. Via scenario analyses, we demonstrate that a proper risk response strategy, compared to doing nothing, may reduce variance in cotton quality by about 35% at the expense of about an 11% increase in unit cost variability. Full article

Food supply chains are considered to be more complex systems than other types of supply chains. This complexity is due to the continuous changes taking place, particularly in ensuring the quality of food products throughout the entire supply chain, from growing, procurement of resources, production, and management of stock, to distribution to the final consumers. For that, food supply chain markets have become more highly developed in the use of modern technologies, and have begun to implement them in their logistical systems to satisfy their customers’ needs. The main objectives of this review are to identify the different technological implementations in different phases of the food supply chain processes and point out the key factors for using technologies to improve the characteristics of the perishable food supply chain. A total number of 137 articles were analyzed in this research to achieve these review objectives. Some of the various technologies found in different phases of the food supply chain were radio frequency identification (RFID), the Internet of Things (IoT), blockchain, three-dimensional printing (3DP), autonomous vehicles, and unmanned aerial vehicles (UAVs). These technologies were found in different phases of the food supply chain and improved the efficiency of supplying perishable foods. The review identified different characteristics of the perishable food supply chain. The main finding indicated that technological implementation enhances the efficiency and sustainability of the food supply chains and helps to retain perishable food characteristics. Full article

Improving current supply chains by using distributed ledger technology (DLT) has been a highly researched topic during the last years. Currently, there are numerous articles elaborating on how such technologies can theoretically improve supply chains. However, case studies of such concepts and their economic value are scarce. In order to bridge this gap, we collaborated with a regional label company to clarify how a distributed ledger technology would benefit their ecosystem. This work answers the question of how such a prototype would look and whether it adds value. By following design science research practices, we design two artifacts based on requirements gathered in 14 interviews and discuss the artifacts’ elements within an evaluation panel. Our findings show that a distributed ledger application for the regional label ecosystem should have an open and decentralized architecture giving all participants full access to the shared data while still providing security and privacy for sensitive data. Additionally, data capturing should be simple. However, such an application does not add sufficient economic value and is currently of no practical interest in the regional label ecosystem as the expenditure likely exceeds the benefit. Full article

The objective of this paper was to propose a functional simulation model for the operation of floating storage and regasification units (FSRUs) used for the import of liquefied natural gas (LNG). The physical operation of an FSRU is decomposed for each critical component of the LNG carrier (LNGC) and the FSRU, in order to construct a realistic model in Simulink. LNG mass balance equations are used to perform flow calculations from the tanks of an LNG carrier to the tanks of the FSRU and from there to shore. The simulation model produces results for cases, when multiple LNG carriers discharge cargoes during a monthly time horizon. This produces an accurate operational profile for the FSRU with information about the volume of LNG inside each of the cargo tanks of the FSRU, LNG cargo discharging and gas send-out rate. Potential practitioners may exploit the proposed planning tool to explore the feasibility of alternative operation scenarios for an FSRU terminal. The simulations can check the system sensitivity to different parameters and support schedule regarding: (i) slots for LNG carrier calls, (ii) LNG inventory fluctuation, and (iii) impact of gas demand and send-out rate changes. Full article

This paper presents the value proposition of blockchain for Port Community Systems (PCS) by dissecting the business processes in port logistics and unfolding functionalities of blockchain in lowering the transaction cost. This paper contributes to the research by a detailed technical assessment of the plethora of currently available blockchain platforms and consensus mechanisms, against the identified requirements in this specific use case. The results of this technical assessment highlight the central value proposition of blockchain for landlord ports, which is independency from a central authority as the controlling agent. Bridging between two research domains of Information Technology and Logistics, this paper proposes the preferred architectural design requirements of a blockchain-based PCS, including provisioning private sidechains, modular design with inter-chain interoperability, and encrypted off-chain data storage. Availability—the readiness for correct service, and reliability—the continuity of correct service, are heavily reliant on the right choice being made for blockchain design for such a complex use case. A preliminary comparative analysis among different decentralisation levels in this paper suggests that a permissioned public blockchain offers the best trade-off in performance measures for this use case. This technical review identifies six research agenda from a design perspective. Full article

The purpose of this article is to offer a literature review on the development and classification of inland terminals, later defined as “dry ports”. The aim of the paper is to analyze the extant literature on dry ports focusing on their concept, classification, function and technological processes. The review offers an updated structured approach to what is currently defined as a dry port. To this end, a structured keyword search in major electronic databases has been conducted to find related material. As there are many different names indicating dry ports in European, South East Asian and North American countries, the following keywords were used: “dry port”, “inland terminal”, “freight village” and “interporto/i”. The search was conducted in respect of the article title and text, abstract and keywords. The results show that there is no unanimous consensus concerning cataloguing of terrestrial nodal facilities serving port gateways. “Dry ports” have emerged as fundamental elements of the integration between the sea “system” and the land network. The increased interest in the genesis and development of dry ports has been accompanied by an abundant contribution of the scientific community, originating a thriving literature, which, however, does not find a common denominator. Full article

This paper explores the benefits that firms obtain when investing in feature-based capabilities. We investigate the external pressures when deciding their feature-based strategy. In addition, we analyze the consumers’ customization options and the needs for facilitators to mitigate the negative effects of excessive features. We assess the influence of feature-based capabilities on performance and search for an economically feasible loop that feature-based capabilities might entail. This latter is carried out by investigating the recursive effects in structural equation modeling. Our findings reveal that feature-based capabilities entail an economically feasible loop through competitors and supply chain partners but not also through facilitators and operational performance. Full article

Blockchain technology has emerged as a promising technology with far-reaching implications for the food industry. The combination of immutability, enhanced visibility, transparency and data integrity provides numerous benefits that improve trust in extended food supply chains (FSCs). Blockchain can enhance traceability, enable more efficient recall and aids in risk reduction of counterfeits and other forms of illicit trade. Moreover, blockchain can enhance the integrity of credence claims such as sustainably sourced, organic or faith-based claims such as kosher or halal by integrating the authoritative source of the claim (e.g., the certification body or certification owner) into the blockchain to verify the claim integrity and reassure business customers and end consumers. Despite the promises and market hype, a comprehensive overview of the potential benefits and challenges of blockchain in FSCs is still missing. To bridge this knowledge gap, we present the findings from a systematic review and bibliometric analysis of sixty-one (61) journal articles and synthesize existing research. The main benefits of blockchain technology in FCSs are improved food traceability, enhanced collaboration, operational efficiencies and streamlined food trading processes. Potential challenges include technical, organizational and regulatory issues. We discuss the theoretical and practical implications of our research and present several ideas for future research. Full article

In order to make clear the positioning of the port logistics competitiveness of Qingdao Port among the major coastal ports in China, recognize the development level and shortcomings of its own port, and promote the enhancement of its own port logistics competitiveness, this paper uses the factor analysis method and fuzzy equivalence relationship clustering method to select 17 evaluation indicators from the two dimensions at the port hardware level and software level, respectively. Based on the relevant index data of nine major coastal ports in China including Qingdao Port from 2019, this paper makes a comparative analysis on the competitiveness of Qingdao Port in major coastal port groups in China. The results reflect the differences in the competitiveness of port logistics, and find the weaknesses of Qingdao Port in the strength of the port logistics industry, port transport conditions, etc., so as to improve and enhance the competitiveness of port logistics, such as increasing the proportion of port fixed investment, and speeding up the adjustment of transport structure. Full article

As e-waste exponentially increases on a global scale, some legislation and plans to implement reverse logistics have arisen in some countries. While reverse logistics is already well consolidated in developed countries, it is still in a state of infancy in developing countries. In this article, we propose a theoretical model to assess reverse logistics, based on a multicriteria decision aid perspective. This was done while considering a context in which the implementation of the reverse logistics of e-waste is at the beginning. To show the main characteristics of the literature and obtain the model’s inputs, we conducted a systematic literature review to help us understand the main criteria and methods used for this purpose. Then, we illustrated the use of the proposed model with a numerical example. This paper contributes to the current body of research, and aims to assist practitioners within the field of reverse logistics by systematizing the knowledge related to this issue, and offering a model that can guide the decision-making. This model differentiates from others already published because it uses the probabilistic composition of preferences (PCP) method, which does not require the assignment of weights. The model can also be used while considering the preferences of several decision-makers, therefore covering several points of view and providing a more holistic view of the decision problem. Full article

The purpose of the present research is to examine and compare product and logistics competencies in supplier selection decisions, which can serve as a crucial building block for competitive differentiation, in the context of the unique private label (PL) supply chain. This study also hypothesizes about the impact of product and logistics competence on the retailer’s financial performance. Lastly, the moderating role of the product type in the proposed research model is explored. Partial least squares path modelling is used to analyze the dataset drawn from major South Korean retailers, due to the exploratory nature of the research and the use of both reflective and formative construct measurement items. Overall, the results of this study demonstrate that relationships between the desire for a particular strategic intent and performance are more complex than previous studies have implied. The findings of this research offer possible explanations on an important but understudied aspect of PL success: why not all PLs (even of the same retailer) are thriving even in a rapidly growing PL industry. We further elicit strategic recommendations for retailers in selecting PL suppliers and for PL manufacturers to differentiate themselves and achieve a superior performance. Full article

The COVID-19 pandemic is causing risks and disruptions in most supply chains. As supply chain managers are responding to these risks, several theories may inform those efforts. In this paper, we explore across seven companies in different industries, supply chain positions and countries, how lessons from total costs of ownership, supplier segmentation and supply chain change management theory may apply to efforts to respond to COVID-19 supply chain risks and disruptions. The findings indicate that the pandemic forces companies to consider total costs more holistically, beyond the purchase price, and that collaboration with suppliers and developing new sources of supply is of growing importance to reduce risk in the supply chain. However, the change involved in responding to risks will take time, and for many companies, the hardest work is still ahead. Our findings also paint a more nuanced and complex picture than offered in the popular press; the focus on nearshoring does not necessarily mean leaving China and the switch in total costs of ownership may only be partial and temporal. Limitations of the theories considered are identified and resulting suggestions for managers and further research are developed. Full article