TECHNOLOGY & OPERATIONS MANAGEMENT
VALUE OF INFORMATION
IN PORT LOGISTICS
ROB ZUIDWIJK
RZUIDWIJK@RSM.NL
SmartPort
1
ERASMUS SMART PORT: PORT PROFESSORS
Academic Agenda
Operational Excellence in Ports and
Networks
Drivers for Green Port Related
Operations
Governance for a Sustainable Port
Rob Zuidwijk
Academic
Director
Ports as Nodes in Global Supply
Chains
Visibility for a Connected Port
generate
Research
Hein Klemann
Professor in
Social and
Economic
History,
Erasmus School
of History,
Culture and
Communication
knowledge
Education
Valorization
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apply
AGENDA
• Introduction
• Quality and Value of Information:
Container Transport
• Inter-Organizational Systems:
Port Community Systems
• Conclusions
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REFLECTION
QUALITY AND VALUE OF INFORMATION
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QUALITY 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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BELIEVABILITY
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?
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TIMELINESS
DISCUSSION
FORECASTING
• It has been agreed earlier that a
• Expected Time of Arrival (ETA) of a
shipment needs to arrive at 12 PM;
sea vessel at the Port of
Destination should “converge” to
• It actually arrives at 13 PM;
the Actual Time of Arrival (ATA) as
• What is the value of advance
time progresses;
information?
• What is the benefit of fast
convergence?
ETA
ATA
time
ATA
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BENEFITS OF BETTER FORECASTS
Early arrival
Cost of re-planning or in-transit
inventory cost
Late arrival
Cost of re-planning and in-transit
inventory cost
Alignment of arrival distribution
and planning time window creates
opportunity to reduce expected
costs.
Benefit
Opportunity of alignment
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VALUE 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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REFLECTION
INTER-ORGANIZATIONAL SYSTEMS
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IOS = INTER ORGANIZATIONAL SYSTEMS
PORT COMMUNITY SYSTEM
Information sharing between
organizations in a port cluster
SUPPLY CHAIN MANAGEMENT SYSTEM
Information sharing between
organizations in a supply chain
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PORTS IN GLOBAL NETWORKS
Wholesaler
Receiver
Inland
Pre-carriage
Port of Origin
Community
Sea
Terminal
Producer/Shipper
Sea
Terminal
Suppliers
Port Authority
Customs
Port Authority
Customs
Wholesaler
Receiver
Retailers
Consigners/Consignees
Global
Supply
Chain
Wholesaler
Receiver
Retailers
Shipping Line
Producer/Shipper
Suppliers
Port of Destination Inland
Post-carriage
Community
Retailers
Suppliers
Producer/Shipper
Logistic Service Providers
Transshipment and Storage
Forwarders and Agents
Authorities
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PORTS IN GLOBAL NETWORKS
Wholesaler
Receiver
Inland
Pre-carriage
Port of Origin
Community
Port of Destination Inland
Post-carriage
Community
Sea
Terminal
Producer/Shipper
Sea
Terminal
Suppliers
Port Authority
Customs
Port Authority
Customs
Wholesaler
Receiver
Port Community
Consigners/Consignees
Retailers
Suppliers
Producer/Shipper
Retailers
Shipping Line
Wholesaler
Receiver
Retailers
Suppliers
Producer/Shipper
Logistic Service Providers
Transshipment and Storage
Forwarders and Agents
Authorities
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TWO 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 SYSTEM
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PORT COMMUNITY SERVICES
Rail planning
The 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?
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PRICING OF SERVICES ON A PLATFORM
•
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
User
1
User
2
User
3
Service
1
Service
2
Service
3
price/fee Platform
value
data/infrastructure
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CONCLUSIONS
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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DISCUSSION
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