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Case Studies On Transport Policy: Michael C.B. Cheng, James J. Wang

This document discusses using a logistics and transport data exchange platform to measure supply chain performance in an integrative way. It argues that globalization and technology have increased the complexity of supply chains and made traditional performance measurement inadequate. The document presents a case study showing how a data exchange platform could measure the performance of different parties along a supply chain in an integrated manner. It explains that such a platform could evaluate the activities of firms, infrastructure providers, and policymakers across the supply chain. The paper concludes that government support is needed to encourage participation in the platform and develop its performance measurement functions.

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0% found this document useful (0 votes)
169 views11 pages

Case Studies On Transport Policy: Michael C.B. Cheng, James J. Wang

This document discusses using a logistics and transport data exchange platform to measure supply chain performance in an integrative way. It argues that globalization and technology have increased the complexity of supply chains and made traditional performance measurement inadequate. The document presents a case study showing how a data exchange platform could measure the performance of different parties along a supply chain in an integrated manner. It explains that such a platform could evaluate the activities of firms, infrastructure providers, and policymakers across the supply chain. The paper concludes that government support is needed to encourage participation in the platform and develop its performance measurement functions.

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G Model

CSTP 99 No. of Pages 11

Case Studies on Transport Policy xxx (2015) xxx–xxx

Contents lists available at ScienceDirect

Case Studies on Transport Policy


journal homepage: www.elsevier.com/locate/cstp

An integrative approach in measuring hub-port supply chain


performance: Potential contributions of a logistics and transport data
exchange platform
Michael C.B. Cheng* , James J. Wang
Geography Department, University of Hong Kong, Hong Kong

A R T I C L E I N F O A B S T R A C T

Article history: The widespread globalization of production corporations in the late 20th century, as well as the
Received 4 September 2015 subsequent trade facilitation policies of state authorities, generates an imperative need to extend the
Received in revised form 7 February 2016 scope of supply chain management. Apart from the evaluation and monitoring of networked operations
Accepted 22 March 2016
in different parts of the world, the effectiveness of trade policy measures is also included. This paper
Available online xxx
examines the potential contributions of a logistics and transport data exchange platform in measuring
the performance of supply chain stakeholders of a hub port at different stages along the chain. A case
Keywords:
study demonstrates how the integrative characteristics of a logistics and transport data exchange
Supply chain
Performance measurement
platform can be exploited to measure performances of different parties along the supply chain of a firm.
Hub port More importantly, the authors explain how such a platform can be transformed into a system that
Case study evaluates the integrative supply chain activities of firm, the infrastructure, and the institutional
DTTN stakeholders. A series of new supply chain performance metrics, including specific monitor end-to-end
processes, can be captured by the proposed system. The paper concludes that in view of the significant
policy implications of a platform-based supply chain performance measurement (SCPM) system, state
intervention is critical to foster a high participation rate of the logistics and transport data exchange
platform and develop its SCPM functions.
ã 2016 World Conference on Transport Research Society. Published by Elsevier Ltd. All rights reserved.

1. Introduction networked operations located in different parts of the world


(Mentzer et al., 2001). Researchers have also discovered that apart
As a major force reinforced by advances in information and from managing business-level activities and factors, the embedded
communications technology (ICT), globalization has expanded the environment of a global value chain (GVC), such as infrastructure
breadth and depth of supply chains, and the complexity of the and institutional conditions, also affects chain performance
relationship between stakeholders (Mentzer et al., 2001). Howev- (Frederick and Gereffi, 2011).
er, the development of supply chain performance measurement In addition to the geographical extension fostered by globali-
(SCPM) lags behind in providing an effective mechanism to zation, SCM is transformed by advances in ICT, particularly the
monitor supply chain activities in the global context (Mann, 2012). burst of e-commerce in 2000s. Porter (2001) incorporated the
Enhancing SCPM has become imperative under the accelerated Internet into the value chain to illustrate the enhanced primary and
growth of globalization and ICT advancement in the 21st century. supporting activities in terms of improved speed, accelerated
The international element of supply chain management (SCM) information exchange, and wide geographical coverage. By
has been transformed significantly when U.S. manufacturers applying ICT in a logistics system (i.e. e-logistics), additional
started offshore outsourcing (Dicken, 2011). To manage the interactions are generated between logistics service providers,
widespread globalization of the market and production network shippers, consumers, and governments because of the options
of corporations in the late 20th century, supply chain models offered by e-commerce (Capineri and Leinbach, 2004). Thus
extend their scope to include the evaluation and study of Internet-based ICT facilitates real-time information sharing by
multiple users of the supply chain.
An essential phenomenon that dissects major studies in
* Corresponding author at: Department of Geography, the University of Hong
globalized and e-based SCM is the principle of integration (among
Kong, Pok Fu Lam, Hong Kong. supply chain stakeholders), both from the firm dimension or the
E-mail address: cbcheng@netvigator.com (M.C.B. Cheng). supply chain flow perspective (Porter, 2001) and the

http://dx.doi.org/10.1016/j.cstp.2016.03.001
2213-624X/ ã 2016 World Conference on Transport Research Society. Published by Elsevier Ltd. All rights reserved.

Please cite this article in press as: M.C.B. Cheng, J.J. Wang, An integrative approach in measuring hub-port supply chain performance: Potential
contributions of a logistics and transport data exchange platform, Case Stud. Transp. Policy (2016), http://dx.doi.org/10.1016/j.cstp.2016.03.001
G Model
CSTP 99 No. of Pages 11

2 M.C.B. Cheng, J.J. Wang / Case Studies on Transport Policy xxx (2015) xxx–xxx

environmental dimension of infrastructures and institutions scorecard or SCOR model) was developed by Kaplan and Norton
(Gereffi and Fernandez-Stark, 2011). Porter (2001) expected that (1996) not only measuring the financial performance of compa-
the Internet would enable the integration of the whole set of the nies, but also analyzing an organization and its supply chains
value chain, namely, suppliers, channels, and customers (i.e. from four perspectives, namely, learning and growth, business
stakeholders at firm level). By contrast, Gereffi and Fernandez- process, customer, and financial performance. In line with such
Stark (2011) explained the role of local economic and social approach, Gunasekaran et al. (2001) developed the multiple-level
conditions and institutions in upgrading GVC (e.g. infrastructure framework for SCPM metrics, which are classified into strategic,
and institution). According to Wang and Cheng (2010), a supply tactical, and operational, such that the results of measurement
chain is a multi-hierarchy structure of stakeholders associated would be addressed by the appropriate management level. Third,
with the tier of business (i.e. firm), gateway (i.e. infrastructure), Shepherd and Gunter (2006) developed a multiple-level model
and institution. Cross-hierarchy supply chain integration refers to and a process-based SCPM that targets five tasks, namely, plan,
the interplay between the parties of firm, the infrastructure, and source, make, deliver, and satisfy customer. This method enables
the institution hierarchies, which could enhance the competitive the mapping and analysis of complex supply chain. Fourth, the
strength of the supply chain concerned (Wang and Cheng, 2015). systems thinking or end-to-end approach argues that a single
Examples of such services include advanced customs clearance or measurement system should be adopted to cover the entire
the integrative information platforms of state agencies, ports, and supply chain (Holmberg, 2000; Cuthbertson and Piotrowicz,
carriers. This cross-hierarchy perspective can also be applied in the 2011). Such approach aligns with the inter-firm collaboration and
analysis of SCPM, which this paper aims to accomplish. control strategy of collaborative planning, forecasting and
This paper attempts to accomplish two purposes. First, we replenishment (CPFR), a supply chain system that has been
investigate how ICT, particularly e-logistics platform, can contrib- widely adopted by the industrial and retail sector (Danese, 2007).
ute to SCPM in monitoring activities under the integrated The last three approaches adopt the integrative principle and
environment. Second, we explain the means in which such consider the close relationship of stakeholders in a globalized and
platform can be transformed into a system that evaluates Internet-enabled supply chain. The scope of SCPM studies has
interrelated supply chain activities of firm, infrastructure, and been expanded from an intra-firm to inter-firm perspective, but
institutional stakeholders through a series of integrative perfor- the relationship between firms and the supply chain environment
mance metrics. (infrastructure and institution) remains passive or given.
This paper is structured as follows. In the next section, we “You cannot manage what you cannot measure (Sink and Tuttle,
review the development of SCPM. In the succeeding section, we 1989).” Thus, as an essential tool in monitoring the degree of
describe the methodology in detail, followed by a case study success of supply chain strategies (Grosvold et al., 2014), SCPM
analysis of the contributions of a logistics and transport data plays an important role in capturing activities under the trans-
exchange platform in SCPM. Based on such findings, we explain formed environment of integrated relationship. Development in
the means in which this platform-based SCPM may be trans- the measurement of firm-level performance leads to positive
formed to expand its monitoring functions across firms, progress in reframing measurement mechanism and metrics from
infrastructure, and institution stakeholders of a supply chain. firm to process orientation and, to a certain extent, chain
In the last section, we discuss the results and limitations of this orientation (Schaltegger and Burritt, 2014), but not for cross-
project, and further research opportunities of related study. hierarchy SCPM.

2.2. Infrastructure-level SCPM


2. Current measurement of supply chain performance
Given the concentration of logistics activities in ports and
To align with the research purpose, a hierarchical approach-
airports, the importance of such facilities in the infrastructure
division of the supply chain into firm, infrastructure, and
network of supply chains has been increasing (Bichou and Gray,
institution level (Wang and Cheng, 2010), is adopted in reviewing
2004). The conditions of these facilities should be reasonable
related literature on SCPM. As advocated by several researchers
representations of this sector. Therefore, we focus on research
(Gunasekaran et al., 2001), the purpose of SCPM is to develop
related to the performance measurement of ports or airports.
effective performance measures and metrics that are capable of
Although not explored as intensively as firm-level SCPM,
testing and revealing the viability of strategies, which can lead to
researchers in this area tend to transform their approaches from
improvement and realization of goals. Thus, SCPM is expected to
discrete firm-based metrics to a process-oriented approach
generate management improvement. This purpose statement
(Bichou, 2006). Bichou (2006) proposed that port performance
explains the overwhelming concentration of studies in firm-level
measurement should be integrated with logistics, including
SCPM (as discussed in the succeeding section) because the
traders affiliated with terminals. However, scant empirical
business sector considers the conditions of the supply chain
examples are outlined to examine the feasibility of this concept.
environment as given (Holmberg, 2000).
Other scholars (Langen et al., 2007) discovered that majority of
ports commonly measure output and resource utilization
2.1. Firm-level SCPM performances, whereas the use of integrative performance
metrics in the logistics and manufacturing sector are rare among
Given the relevance and significance of SCPM (Gunasekaran the major ports of ocean trade (e.g. value-added of ports are only
et al., 2001), a rich collection of studies related to firm-level captured by Belgian and Dutch ports). Similarly, studies on airport
performance measurements has been accomplished. The ap- performance measurement have focused on productive efficien-
proach of SCPM transforms from single-firm to inter-firm cy, such as the application of data envelopment analysis (DEA) to
perspective is in line with the network relationship that Gadde reveal the most efficient airports (Barros and Dieke, 2008). A
and Snehota (2000) argue as the key for superior supply chain typical illustration is the performance measures adopted by Hong
performance. We observe four foci of research related to the Kong Air Cargo Terminals Limited (HACTL) to monitor services for
present study. First, as a management tool to improve a business, users. For example, in 2014, the company achieved 100%
SCPM should be consistent with the strategies of a firm fulfillment in cargo release (HACTL website) and met the
(Holmberg, 2000). Second, a balanced approach (i.e. balanced performance standard within 30 minutes after document

Please cite this article in press as: M.C.B. Cheng, J.J. Wang, An integrative approach in measuring hub-port supply chain performance: Potential
contributions of a logistics and transport data exchange platform, Case Stud. Transp. Policy (2016), http://dx.doi.org/10.1016/j.cstp.2016.03.001
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CSTP 99 No. of Pages 11

M.C.B. Cheng, J.J. Wang / Case Studies on Transport Policy xxx (2015) xxx–xxx 3

submission. This metric reflects the efficiency of a standalone trade supply chain users, this system may suit the requirements.
general process of the operator. However, the actual performance Therefore, the Digital Trade and Transportation Network (DTTN)
of cargo collection operations related to various sectors, such as is selected for the case study because it has the most
perishable, express, or general cargo that may be served comprehensive logistics and transport data exchange platform
differently, is not indicated. Thus, users cannot track the duration in Hong Kong (Wong et al., 2010), which has been in operation for
of individual tasks of cargo collection. nearly a decade since 2006. The initial purpose of this case study
is to prove that a series of supply chain performance metrics can
2.3. Institution-level SCPM be compiled by connecting documents processed by a logistics
and transport data exchange platform with specific data
In view of the policy implication of this research, only state- manipulation. Despite certain constraints described in Sec-
related institutional players with a role in SCPM are examined, tion 4.2.1, such platform can perform SCPM function using its
other actors such as financial institutions will not be discussed. existing data structure.
The approaches of institutional and infrastructure SCPM are To solicit support from DTTN, we met with their management
greatly similar in terms of discreteness and operator orientation to explain the research purpose, the data to be collected, and the
(Mann, 2012). However, unlike infrastructure operators, state analytical methods. We targeted a client of DTTN. This client is a
agencies or related international organizations tend to apply sourcing arm of a large-scale European fashion producer with
perception-based surveys to measure user opinions on concerned vendors and forwarders located in different locations in Asia. The
institutional services (e.g. Logistics Performance Indicators of the geographical coverage of this firm closely matches the globalized
World Bank). Logistics performance analysis of different states context of SCM. Due to the current limitation of DTTN this
can also be conducted based on a similar type of survey results, sourcing firm only adopts the document transmission function of
such as the Global Competitiveness Report generated by the the system. However, in the discussion with the company’s
World Economic Forum (Wang and Cheng, 2015). Apart from the management, they are positive to the idea of expanding the SCPM
nature of research data that limits the accuracy of such logistics role of DTTN. Under constrained information availability and
performance reports, their discreteness (Global Competitiveness focused analysis on critical processes, four types of trade data
Report is produced annually and Logistics Performance Indicators were extracted from DTTN, namely, purchase order, packing list,
are surveyed every two years) also fails to provide a continuous shipment booking, and goods receipt.1 A full-year dataset
performance monitoring system of the concerned states. More- comprising hundreds of records was collected to ensure that
over, transaction-based performance measurement for supply the seasonal pattern of activities, if any, was captured. After
chain-related institution service in actual operations is rare. The collecting the dataset with the required lead time approximations
Canada Border Services Agency (CBSA) has stipulated certain from DTTN, follow-up meetings were conducted to validate the
service standards in this aspect, such as the conduct of a marine data. The performance metrics were compiled accordingly. The
container examination within 24 hours (CBSA website). However, findings of the research were shared with the management of
CBSA has not provided information on the actual performance of DTTN to ensure accurate interpretation of data analysis and to
this service metric. scrutinize the logic of the proposed SCPM. To address the
Accordingly, a knowledge gap in SCPM is identified. A limitation of a single-firm case study, we examined the
monitoring system that can reveal cross-hierarchy interrelated integrative function of a trade-related data exchange platform
supply chain activities, both by sector and general performance, from multiple dimensions (operation, tactical, and strategic) to
based on transaction data and continuous evaluation does not ensure a comprehensive coverage of relevant issues. No
exist. Such shortfall in the current SCPM has become imperative infrastructure and institution stakeholder is currently using
since public-private partnership trade facilitation is prioritized DTTN. Thus, the performance metrics derived from this case are
under regional free trade agreements (e.g. ASEAN Free Trade Area) confined to the parties of the firm’s supply chain, namely, the
and international trade and economic regimes (e.g. APEC, WCO). vendors and forwarders.
For example, in 2007, under the SAFE framework of the World After achieving the initial purpose of the case study, we then
Customs Organization (WCO) (World Customs Organization, 2007) attempt to examine the integrative ability of DTTN in processing
the Authorized Economic Operator (AEO) program was introduced logistics and transportation data of other hierarchical parties in
and later also launched in EU countries in 2008. AEO aims to the supply chain. A set of trade and logistics documents (see
identify reliable traders and provide concerned entities with trade Section 5.1) processed by the container terminal (infrastructure
facilitation measures. In view of the cross-hierarchy (firm and hierarchy) and government departments of Hong Kong (institu-
institution) collaborative nature of such schemes, concerned tion hierarchy) were reviewed for compatibility by the operation
nations or states must monitor their effectiveness through an staff of DTTN. As expected, DTTN confirmed that such papers can
integrative SCPM system and make improvements if necessary be handled technically by the platform. After validating the
(Moise, 2003; OECD, 2005). integrative function of DTTN, we proceed to the final purpose of
this case study, which is to develop the data structure of a
platform-based SCPM system and the new performance metrics
3. Methodology
that can capture the interrelated activities of the hierarchical
parties of different supply chain. To ensure the feasibility of the
A qualitative research method, particularly a case study, is
proposed SCPM mechanism, we also verify the technical validity
adopted because of the exploratory nature of this paper in
of the data structure with DTTN experts. In a follow-up interview
investigating the shortfall of current SCPM in monitoring cross-
with 3 corporate members of the Hong Kong Sea Transport and
hierarchy supply chain activities and in potentially filling the
Logistics Association (members are mainly small and medium
loophole by an ICT mechanism (Yin, 2003). However, becoming
sized LSP), initial response of the executives towards a platform-
the right candidate for such requires an ICT mechanism that is
based SCPM is favourable.
open, compatible, and capable of supporting the activities of
supply chain parties of different hierarchies (firm, infrastructure,
and institution). Given the flexible structure of a logistics and
transport data exchange platform that is designed for multiple- 1
Receipt issued by the forwarder to confirm receipt of consignment.

Please cite this article in press as: M.C.B. Cheng, J.J. Wang, An integrative approach in measuring hub-port supply chain performance: Potential
contributions of a logistics and transport data exchange platform, Case Stud. Transp. Policy (2016), http://dx.doi.org/10.1016/j.cstp.2016.03.001
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CSTP 99 No. of Pages 11

4 M.C.B. Cheng, J.J. Wang / Case Studies on Transport Policy xxx (2015) xxx–xxx

Table 1
Example of major supply chain stakeholders and key documents supported by DTTN.

Firm-level Infrastructure-level Institution-level


Stakeholders Buyer
Documents 1 Purchase order
2 Shipping order

Stakeholders Laboratory test company


Documents 3 Inspection request
4 Inspection certificate
Stakeholders Supplier
Documents 5 Packing list
6 Commercial invoice
Stakeholders Forwarder Terminal
Documents 7 Shipping order confirmation
8 Goods receipt 14 Reception check list
9 House bill of lading
Stakeholders Carrier
Documents 10 Manifest
11 Bill of lading
12 Cargo arrival notice
Stakeholders Trucker Customs authority
Documents 13 Delivery order 15 Detention notice

Source: Authors’ elaboration based on data from DTTN.

4. Integrated structure of logistics and transport data exchange participate in DTTN. The platform’s development with the
platforms and potential contribution to SCPM institutions is also unpromising under the impartial policy of
the Hong Kong SAR Government. The administration offers no
4.1. Background of logistics and transport data exchange platforms incentive to encourage trade-related state authorities, such as the
Customs and Excise Department and the Trade and Industry
As one of the trade facilitation measures promoted by major Department, to join DTTN. Thus, the development of DTTN has
international organizations such as WTO and APEC (ESCWA, 2011), been difficult from its inception, except for the limited success in
the single window2 has gained increasing popularity in the trade incorporating few medium-sized producers and forwarders to the
regime. To catch up with other trade competitors, several countries platform. However, the firm’s efforts to attract major infrastructure
established their own information platforms. These platforms and institution parties are in vain. In line with the government’s
support single-window operation, such as NACCS of Japan and declining policy focus on logistics development, DTTN was later on
TradeXchange of Singapore. A strong collaborative effort is hived off from the government in 2009.
necessary to drive operators of different segments of the trade
regime to link and conduct their businesses through a single 4.2.2. Structure and characteristics of DTTN
window (Wong et al., 2010). To overcome this problem, most As a community-focused information platform, DTTN empha-
information platforms are established by either the government sizes neutrality, non-exclusivity, and non-competition with other
(Japan) or an agency with a strong support from the state existing private sectors over the provision of value-added services.
(Singapore). Under this constraint, the platform does not provide any data
analytical service for participants, which on the contrary is an
4.2. Case study of DTTN essential service element of e-logistics providers to compete in the
market (Wong et al., 2010).
4.2.1. Background of DTTN DTTN provides B2B e-commerce services to parties of the
DTTN was established on a commercial basis in 2006 and supply chain who are based in Hong Kong; the design structure of
funded by the government. Unlike other states, the Hong Kong SAR these services is linked with almost all types of entities of the trade
Government has adopted an impartial policy and has been and logistics community, and the company handles over 80
reluctant in fostering the acceptance of DTTN as a common commonly used documents (DTTN, 2015). We use a hypothetical
logistics and transport data exchange platform. Similar to other case to illustrate the integrative nature of DTTN and the key
port cities, Hong Kong infrastructure operators, particularly documents that can be traced along the chain. We assume that a
container terminals, are powerful players of the supply chain. A company under a single master purchase order (PO) is sourcing
system known as Oneport has been developed by the collective child fashions from the Mainland of China. Subsequently, these
efforts of terminal operators. This system plays an important role products are imported to Hong Kong for quality inspection before
in processing container collection/delivery activities at terminals. they are redistributed to buyers in various countries in EU. Table 1
Oneport strengthens the influence of terminal companies (all are summarizes the major stakeholders and key documents involved
commercial enterprises) on associated supply chain parties, such under the three hierarchies of the supply chain supported by DTTN.
as carriers, forwarders, truckers, and barge operators. Unless a Although majority of the documents are related to firm trans-
significant commercial gain or policy intervention is evident, the actions, the efficiency of infrastructure (e.g. terminal) and
terminals are not willing to share such influential power with other institution (e.g. customs authority) can affect the overall perfor-
ICT firms. Hence, supply chain infrastructure stakeholders refuse to mance of the chain. For instance, a delay by the Hong Kong
authority in customs formalities can affect the order fulfillment of
a company with overseas buyers.
2
A single window aims to provide a platform and a process for a paperless Logistics and transport data exchange are the main purposes of
(electronic) exchange of trade information between participants in the trade DTTN. Hence, the platform does not track and trace these
process, which is largely accomplished by a single electronic lodgement (ESCWA, documents neither does it conduct performance monitoring of
2011).

Please cite this article in press as: M.C.B. Cheng, J.J. Wang, An integrative approach in measuring hub-port supply chain performance: Potential
contributions of a logistics and transport data exchange platform, Case Stud. Transp. Policy (2016), http://dx.doi.org/10.1016/j.cstp.2016.03.001
G Model
CSTP 99 No. of Pages 11

M.C.B. Cheng, J.J. Wang / Case Studies on Transport Policy xxx (2015) xxx–xxx 5

Table 2 4.2.5. Types of data extracted and performance measures compiled


Trade and logistics processes covered by DTTN, NACCS (Japan), and TradeXchange
The performance measures analyzed in this research are
(Singapore).
compiled by the authors based on data from DTTN. DTTN does
Trade and logistics process DTTN NACCS TradeXchange not have metrics for the selected case company. The value of such
Purchasing and import/export performance measures for the sourcing firm has yet to be explored
Forwarder and carrier transportation in future projects. However, the initial response from the
Terminal X
management is positive.
License and permit
Customs declaration and clearance
Among other metrics that include costs, lead time is a good
indicator of supply chain operation efficiency (Sillanpaa, 2015).
Source: Authors’ elaboration Therefore, we measure lead time in PO and SO processing to reflect
the efficiency of the suppliers and forwarders who support the
related tasks. However, as presented in Table 1, this data exchange sourcing firm. The structure of the captured data and compiled
platform carries a certain degree of integrative power that may be lead time is presented in Table 3. The measured metrics are based
exploited for the development of SCPM. The key issue is what on the PO numbers, which can be traced from the issuance of the
benefits would be derived and the feasibility of tracking the supply PO to the final process of goods receipt (GR). The issuing date of PO
chain tasks within a single hierarchy or even cross hierarchies? and packing list (PL) and the SO and GR are used to calculate lead
time. Although the derived lead-time metrics only covered a small
4.2.3. DTTN and trade and transport data platforms of other countries section of the PO or the shipment fulfillment process (see Table 1:
Before proceeding to an in-depth analysis of DTTN, a Documents 1 and 5, 2 and 8), the result of the analysis is highly
comparative analysis is conducted to evaluate the similarity of useful (as discussed in next section). Given that the issue date of a
its system functions with the trade and transport data exchange document may not be the actual day of action, the lead time
platforms of other countries. This condition may affect the general derived may not accurately reflect the events that occurred in
application of the case findings. actual operation. This concern is acknowledged and must be
Table 2 compares the major trade and logistics processes improved in the administration of the SCPM system in the future.
covered by DTTN, NACCS (Japan), and TradeXchange (Singapore).
These platforms cover most processes of firm-level and institution- 4.2.6. Analysis of SCPM
level supply chains. However, TradeXchange focuses on transpor- We apply a multiple-dimension analysis method (supplier,
tation and permit procedures. Supply chain integration within a forwarder, and location perspective) to examine the results of
hierarchy, and cross hierarchies to a certain extent, is a common performance measurement. In this manner, the integrative
characteristic of trade-data exchange platforms, although the function of a logistics and transport data exchange platform is
breadth of linkage may not be identical. For example currently comprehensively explored.
TradeXchange has no infrastructure-related process, yet the open
system design of PORTNET@ of Port Singapore Authority would 4.2.6.1. Exception performance report of operators. In the exception
facilitate connection with other supply chain actors. Hence, the performance reports (see Tables 4 and 5), the under-performers or
integrative function of DTTN is a general phenomenon prevailing in over-performers are captured for possible follow-up action by
trade-data platforms of advanced economies in Asia. management. Assuming a normal distribution of the collected
data, the demarcation of average lead time plus or minus one
4.2.4. Business nature of the selected user company and application of standard deviation (1SD) should screen out an extremely small
DTTN number of exceptional cases.
Through DTTN management, a firm is selected in the case study The exception performance reports focus on the performance of
for in-depth analysis. The company is a sourcing arm of a large- individual suppliers and forwarders. The metrics can serve as
scale European fashion manufacturer with suppliers scattered operation control measures by which management can base their
around Asia. This sourcing firm exercises a system of key actions for exceptional performers (long lead-time) with reference
performance indicators (KPI) for its vendors and forwarders to to the daily reports from DTTN. Medium-term tactical manage-
ensure the provision of efficient services. ment decisions can also be made, such as adjustment of the
Although this company has a close relationship with DTTN, it sourcing mix or volume for concerned suppliers.
does not use the full services of the platform. In general, the
processing of the purchasing order (PO) and handling of forwarder 4.2.6.2. By-location PO and SO processing efficiency index. The PO
shipping order (SO) is conducted by DTTN. Therefore, we also focus (see Table 6) and SO (see Table 7) processing efficiency indexes
our case study on these two processes. reveal the relative performance of the suppliers or forwarders at
each loading port compared with the best performer. This

Table 3
Structure of the data captured and compiled lead time (PO vs. PL and SO vs. GR).

PO Supplier Forwarder Origin country Loading port SO/SI date Goods receipt date Lead time/days PO date PL date Lead time/days
123 SUPP03 FW1 CN CN-SHA 31/07/2013 05/08/2013 5 31/01/2013 14/08/2013 195
456 SUPP04 FW1 CN HK-HKG 29/01/2013 30/01/2013 1 24/01/2013 01/02/2013 8
654 SUPP05 FW1 CN CN-SHA 07/06/2013 07/06/2013 0 30/01/2013 24/06/2013 145
234 SUPP06 FW1 CN HK-HKG 20/08/2013 21/08/2013 1 07/05/2013 21/08/2013 106
112 SUPP07 FW1 CN HK-HKG 25/10/2013 26/10/2013 1 27/06/2013 25/10/2013 120
678 SUPP08 FW2 CN CN-SHA 11/09/2013 17/09/2013 6 05/06/2013 27/09/2013 114
344 SUPP09 FW1 CN CN-SHA 17/06/2013 26/06/2013 9 19/04/2013 28/06/2013 70
665 SUPP010 FW1 CN CN-TAO 25/09/2013 26/09/2013 1 07/08/2013 27/09/2013 51
934 SUPP011 FW3 TH TH-BKK 30/10/2013 07/11/2013 8 07/09/2013 06/11/2013 60
980 SUPP012 FW4 VN VN-SGN 25/10/2013 26/10/2013 1 20/08/2013 28/10/2013 69

Note: see Appendix A for the full name of the loading ports.Source: DTTN.

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Table 4
Exceptional performance (+/ 1SD*) analysis on lead time from confirmed PO to PL (Shanghai).

Origin country Loading port Supplier PO (Q1-4) Avg. lead time PO vs PL Avg. lead time per supplier Monthly Avg. lead time
PO vs PL PO vs PL (beyond +/ 1SD)

CN CN-SHA SUPP55 2013 Q3 80


CN CN-SHA SUPP55 2013 Q4 62.4 82.9
CN CN-SHA SUPP59 2012 Q4 32.8 32.8
CN CN-SHA SUPP59 2013 Q1 73
CN CN-SHA SUPP59 2013 Q2 94.7
CN CN-SHA SUPP59 2013 Q3 78.1 69.65
CN CN-SHA SUPP62 2012 Q4 62.1
CN CN-SHA SUPP62 2013 Q1 74.6
CN CN-SHA SUPP62 2013 Q2 82.9
CN CN-SHA SUPP62 2013 Q3 77.1 74.175
CN CN-SHA SUPP64 2012 Q4 73.9
CN CN-SHA SUPP64 2013 Q1 69.9
CN CN-SHA SUPP64 2013 Q2 125.2 125.2
CN CN-SHA SUPP64 2013 Q3 115.7 96.175 115.7
CN CN-SHA SUPP83 2013 Q1 150 150
CN CN-SHA SUPP83 2013 Q4 76 132.85
CN CN-SHA SUPP85 2013 Q1 60.6
CN CN-SHA SUPP85 2013 Q2 127 127
CN CN-SHA SUPP85 2013 Q3 78.5
CN CN-SHA SUPP85 2013 Q4 25.4 72.875 25.4
Average lead time per loading port/origin country PO vs PL 80.05

Note: *SD is 29.25.Source: Authors’ elaboration based on data from DTTN.

Table 5
Ocean shipment exceptional performance (+/ 1SD*) analysis on lead time from SO to GR (Hong Kong).

Origin country Loading port Forwarder SO/SI date (YYYYMM) Lead time/days Booking vs Goods receipt Monthly Avg. lead time
Booking vs Goods receipt (beyond  1SD)

CN HK-HKG FW1 2013.01 1.50


CN HK-HKG FW1 2013.01 5.60 5.60
CN HK-HKG FW1 2013.02 2.50
CN HK-HKG FW1 2013.03 2.20
CN HK-HKG FW1 2013.04 1.50
CN HK-HKG FW1 2013.06 1.40
CN HK-HKG FW1 2013.07 1.50
CN HK-HKG FW1 2013.08 2.40
CN HK-HKG FW1 2013.09 2.40
CN HK-HKG FW1 2013.01 3.60 3.60
CN HK-HKG FW1 2013.11 2.30
CN HK-HKG FW1 2013.12 1.60
CN HK-HKG FW2 2012.12 2.00
CN HK-HKG FW2 2013.01 4.70 4.70
CN HK-HKG FW2 2013.02 7.00 7.00
HK HK-HKG FW2 2013.06 3.00
HK HK-HKG FW2 2013.01 3.00
Monthly average lead time Booking vs Goods receipt 2.20

Note: *SD is 1.659.Source: Authors’ elaboration based on data from DTTN.

aggregated information provides the management with improve the arrangement of export gateways for inland suppliers,
knowledge of the service gaps of providers from different thereby avoiding peak season clash at certain ports. An example is
geographical locations. These indexes can accurately reflect the the relatively long lead time for the fourth quarter of 2013 in Hong
performance of suppliers or forwarders clustered around a loading Kong. The management should compare lead times to determine
port if additional related processes are captured. For example, if the whether other gateways, such as Chi Wan (i.e. the gateway port at
logistics-data exchange platform also handles a value-added Western Shenzhen, China), should be arranged as an alternate for
activity (e.g. re-labeling) request to forwarders and the job Hong Kong during an identified peak period.
completion advice of this activity, then an extra efficiency index
can be compiled to monitor this process. Hence, a broad 4.2.7. Current constraints and key finding of DTTN to perform SCPM
performance measurement of the forwarder group can be applied. function
Through the case of DTTN, we illustrate how an integrative
4.2.6.3. Seasonal pattern analysis by location. Fig. 1 illustrates the logistics and transport data exchange platform may serve as a
monthly patterns of variation in SO lead time for Hong Kong, SCPM system. However, under the current constraint of firm-level
Shanghai, and Xiamen. We assume that the number of captured participants of DTTN (i.e. vendors, producers, and forwarders), the
forwarder records is sufficiently large. The aggregated lead time process and metrics examined remain confined to the firm-level
values for the three loading ports should reasonably represent the supply chain. Moreover, the discrete nature of the data, that is,
monthly pattern of shipping activities at these locations. This collected PO versus PL and SO versus GR, limits the scope of
analysis can be a strategic planning tool for the management to

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Table 6
Analysis of lead time from confirmed PO to PL rank by loading port (2012-Q4 to 2013-Q4).

1 2 3 4 5
Origin Loading Avg. lead time per loading port/origin Gap between best performer & PO Processing efficiency index- (item 4/Leadtime of best
country port country PO vs PL other ports performer) + 1
TH TH-BKK 42.92 0.00 1.00
CN CN-SHE 48.00 5.08 1.12
SH CN-SHA 50.00 7.08 1.17
ID ID-CGK 53.32 10.40 1.24
ID ID-JKT 53.32 10.40 1.24
ID ID-TPP 53.32 10.40 1.24
VN VN-SGN 53.48 10.56 1.25
CN CN-FOC 55.33 12.42 1.29
CN CN-SZX 58.97 16.05 1.37
CN CN-CAN 64.14 21.22 1.49
CN CN-XMN 68.49 25.57 1.60
CN CN-DLC 69.40 26.48 1.62
CN CN-TAO 70.63 27.71 1.65
CN CN-HUA 70.95 28.03 1.65
CN CN-YTN 71.53 28.62 1.67
CN HK-HKG 75.46 32.54 1.76
HK HK-HKG 77.25 34.33 1.80

Source: Authors’ elaboration based on data from DTTN.

Table 7
Analysis on ocean shipment lead time (day) from shipping order/shipping instruction to goods receipt rank by loading port (2012-Q4 to 2013-Q4).

1 2 3 4 5
Origin Loading Monthly Avg. lead time Booking vs Goods Gap between best performer & SO Processing efficiency index- (item 4/Leadtime of best
country port receipt other ports performer) + 1
MO HK-HKG 1.00 0.00 1.00
CN CN-DLC 1.10 0.10 1.10
VN VN-SGN 1.93 0.93 1.93
CN CN-TSN 2.11 1.11 2.11
CN HK-HKG 2.20 1.20 2.20
CN CN-XMN 2.51 1.51 2.51
CN CN-YTN 2.97 1.97 2.97
HK HK-HKG 3.10 2.10 3.10
ID ID-TPP 4.00 3.00 4.00
CN CN-SZX 4.20 3.20 4.20
CN CN-FOC 6.37 5.37 6.37
CN CN-SHA 7.80 6.80 7.80

Source: Authors’ elaboration based on data from DTTN.

14

12
Monthly average lead-time (days)

10

8 Hong Kong
Shanghai
6 Xiamen

0
2012.12 2013.01 2013.02 2013.03 2013.04 2013.05 2013.06 2013.07 2013.08 2013.09 2013.10 2013.11 2013.12
Shipping order/instruction date (YYYY .MM)

Fig. 1. Analysis of seasonal patterns of lead time from SO to GR by loading port (Hong Kong, Shanghai, and Xiamen).
Source: Authors’ elaboration based on data from DTTN.

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activities that can be assessed by the SCPM function of this case customs and trade authorities of the government, their compati-
study. bility with the DTTN platform is also guaranteed because
The initial purpose of this case study is to prove that by Tradelink (i.e. the parent company of DTTN) is a major player
connecting documents processed by a logistics and transport data in this field.
exchange platform, in this case the PO number, a series of supply Despite the inference that DTTN could process documents of
chain performance metrics can be compiled despite their limited the Hong Kong container terminals and trade-related institu-
scope. After achieving this objective, we demonstrate that the tions, we still conducted a review of several key documents
integrative method applied in the case study can be extended to with a DTTN expert to confirm their interchangeability. These
connect documents of other supply chain hierarchies (infrastruc- documents are essential for the compilation of new perfor-
ture and institution) and derive new performance metrics as mance metrics under the proposed platform-based SCPM
required. If infrastructure and institution operators participate in system, which can capture cross-hierarchy interrelated supply
this case study, actual data can be obtained for analysis. This chain activities. These activities include appointment booking
situation is unlikely to occur because of the conflicting interest of and container receipts processed by terminals, cargo manifest,
terminals and the impartial policy of the government (see and customs notice of detention or release handled by the
Section 4.2.1). However, by resorting to technical analysis, logical Customs and Excise Department. As expected, the DTTN expert
inference, and expert advice, we ascertain that the proposed confirms the compatibility of such documents with the
platform-based SCPM can actually integrate data of other supply platform. In the document review process we also understand
chain hierarchical stakeholders and generate new performance that a modified data structure should be in place to connect the
metrics. concerned documents and derive the approximate lead time
accordingly.
5. Transformation of logistics and transport data exchange
platform to perform integrative SCPM function 5.2. Data structure of an integrative platform-based SCPM system

To discharge the primary function of a logistics and transport The use of PO number as a common field is not adequate to
data exchange platform (e.g. DTTN), which is to facilitate exchange integrate the extra documents that will be added by the terminals
of trade and logistics documents between different parties of a and institutions. A revised data structure is presented in Table 8,
global supply chain, a certain degree of integrative capability must which indicates the fields that can be applied to connect a PO with
be incorporated into the system. This characteristic of DTTN is different types of documents related to the terminals and customs
critical for the transformation of a platform into an integrative authority. Setting up an accurate and updated database is essential.
SCPM mechanism. Such database maps the relationships among the documents
connected to an individual PO. Specific integrative performance
5.1. Types of documents to be processed by an integrative platform- metrics can only be compiled based on such data relationship.
based SCPM system A critical basic rule must be observed by the proposed platform-
based SCPM system. Only transactions that comply with the data
According to the document format specifications of DTTN, the structure in Table 8 should be captured to calculate the
platform adopts standards for XML canonical document structures performance metrics. In this manner, the SCPM can maintain
as the format for the transformation between the sender and the integrative nature of its output figures. Thus, discrete
recipient. The platform also supports the use of international transaction data, such as cargo manifests not traceable to any
document standards (e.g. UN/EDIFACT, ANSI X.12, IATA CargoIMP) original PO, are not to be counted by the platform-based SCPM
and end-user specific formats (e.g. XML, MS Excel, CSV) by both the mechanism.
senders and recipients (DTTN website). Thus, the technical design Two additional enhancements of the data structure are
of the system ensures the highest degree of compatibility of necessary to expand the scope of the performance metrics that
different types of document to be exchanged by users of various will be captured by the integrative platform-based SCPM system.
supply chain sectors. First, Harmonized System code (H.S. code) should be added to the
Apart from the technical aspect, the integrative capability of PO so that an analysis by sector performance can be conducted.
DTTN is investigated from the governance perspective of the firm. Second, a clear set of system codes to be applied by the platform,
The management of DTTN indicates that to ensure exchangeabil- such as the AEO status of a producer or forwarder, must be
ity of files, staffs of container terminals have been consulted established. These codes should be adopted to delineate the special
before the platform confirm to adopt XML canonical document status of certain users (e.g. AEO or participants of pre-arrival
structure. With regard to the trade documents required by

Table 8
Data structure that indicates the connecting field (connector) between PO and documents of terminals and customs authority.

Terminal appointment Terminal container receipt Cargo manifest Customs notice of release Customs notice of detention
Buyer PO Connector- booking no. Connector- booking no. Connector- BOL* no. Connector- BOL* no. Connector- BOL* no.
OVH 123 69859 69859 11258600 11258600 11258600
BPH 456 39981 39981 36548120 36548120 36548120
BPH 654 12421 12421 96598589 96598589 96598589
BPH 234 36586 36586 33879856 33879856 33879856
HVK 112 12022 12022 21056985 21056985 21056985
WIW 678 98568 98568 68794588 68794588 68794588
OVH 344 47741 47741 38879610 38879610 38879610

Note: *Bill of lading.Source: Authors’ own elaboration.

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Fig. 2. Four processes of outbound containerized ocean transport captured by Trade Logistics Performance Indicator (General).
Source: Authors’ elaboration.

customs declaration scheme) and facilitate inter-group compari- customs clearance between users and non-users of the target
son of performance metrics. scheme will reflect the effectiveness of such program. Thus, the
performance metrics of an integrative platform-based SCPM
5.3. Performance metrics of an integrative platform-based SCPM system can moderately broaden the scope of measurement for
system firms and operators of individual supply chain hierarchies.

With the revised data structure, a platform-based SCPM system 5.3.2. Integrative (cross-hierarchy) performance metrics
can capture data of trade and logistics firms, infrastructure The proposed integrative platform-based SCPM for a hub port
companies (e.g. terminals), and institutions (e.g. Customs and initially consists of four core segments of a supply chain, namely,
Excise Department), which will generate a set of new supply chain PO fulfillment (i.e. vendor performance), SO processing (i.e.
performance metrics. In this section, we focus our analysis on the forwarder performance), laden container collection/delivery (i.e.
performance metrics of the proposed system that cannot be terminals performance), and customs clearance (i.e. institution
obtained under the current SCPM mechanisms of supply chain performance). Although a broad-based average lead time can be
players. These metrics are categorized into single-tier and compiled for the overall supply chain evaluation, we only propose
integrative (cross-hierarchy) SCPM. to capture the last three segments which are related to logistics.
This approach is also in line with the import and export lead time
5.3.1. Single-tier performance metrics figures captured by the Logistics Performance Index Report (World
For single-tier performance metrics, which capture activities of Bank, 2014). Hence, a trade logistics performance indicator
stakeholders belonging to a same supply chain hierarchy, the most (general), that is, TLPI (General),3 by sea and air mode for Hong
significant benefit of an integrative platform-based SCPM is the Kong can be constructed and updated by the proposed platform-
comparison between an individual firm’s performance and the based SCPM. This platform-based SCPM is not a reflection of all the
industry’s best practice or average standard. By adopting the H.S. trade-related logistics activities performed in Hong Kong because
code the best practice and average standard in processing PO, and not every added-value activities are supported by documents,
SO can be obtained for different sectors (e.g. garment or office regardless whether or not they are performed through data
equipment). The PO and SO processing efficiency indexes, as exchanges through DTTN. However, the new performance metrics
described in Section 4.2.6.2, can then be modified to compare a can serve as a basic tool for comparing the supply chain efficiency
firm’s performance with the industry’s best practice or average of hub ports on a transactional and continuous basis.
standard (instead of own company’s best performer). These by- The focus of such measurement shifts from a single tier (e.g. the
sector comparative analyses can be conducted on a continuous terminal) to interrelated logistics and administrative activities
basis (e.g. monthly or quarterly). Similarly, the formula of associated with shipments (Fig. 2). The TLPI (General) should be
processing efficiency index should be applied to the handling of reported with a breakdown of segments. For example, the
container collection/delivery and terminal receipts. The average outbound TLPI (General) by containerized ocean transport for July
performance (in lead time) of an individual terminal can be 20XX is 15 days (overall 100%): 3 days (SO processing 20%) + 3
compared with the achievement of the best performing terminal of days (containerized shipment preparation 20%) + 5 days (termi-
the container port. In this manner, the efficiency gap between nal handling 33%) + 4 days (customs clearance 27%). Such
different operators will be revealed, which may lead to improve- breakdown can reveal the development trend of the four
ment. Applying the same principle, the by-sector processing concerned components of a supply chain. Analysis of long-term
variance in customs clearance can also be evaluated, particularly trend of this indicator would provide benchmarks to measure the
the lead time from submission of cargo manifest to issuance of performance of terminal operators and customs authority. The TLPI
customs release notice. However, such analysis may not reflect the (General) with adequate data support and proper implementation
efficiency of customs operation. Rather, it merely indicates the risk may supplement as a port city measurement of the Logistics
factors of different types of shipment.
Moreover, institutional operators can conduct performance
analysis on the effectiveness of express formalities by applying the 3
In the context of the proposed platform-based SCPM, TLPI (General) can be
coding system of special user status (e.g. pre-arrival customs defined as the consolidated number derived from a summation of the average lead
time for SO processing by forwarders, container collection/delivery handling by
declaration). A significant variance in the processing lead time of
terminals, and customs clearance by state authority.

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Performance Index Report of the World Bank, and resolves the performance metrics that can be derived from the proposed
problem of aggregation of such index. integrative SCPM system, which covers both single-tier and cross-
Apart from the general supply chain monitoring role, the TLPI hierarchy activities, effectively fill the identified gap (Section 2.3)
(General) can be modified to measure chain reliability. By of the current SCPM system. The platform-based SCPM system can
calculating the coefficient of variation of the lead time derived benefit almost all supply chain stakeholders and significantly affect
for the TLPI (i.e. overall figure) and its three components, the trade and logistics policy makers, including international eco-
variation of service performance can be examined. To ensure nomic organizations (e.g. World Bank). We understand from the
consistency, the TLPI (Reliability) should also be reported with the initial response of small and medium sized LSP that they are in
breakdowns. For example, the overall inbound TLPI (Reliability) by favour of our proposed SCPM system, although the current system
containerized ocean transport for May 20XX is 0.19, with 0.21 for set up cost (approximately HK$50,000 or US$6,494-1 US$ to 7.7HK
SO processing, 0.19 for containerized shipment preparation, $) is still a concern. Thus the resistance is expected from the large
0.18 for terminal handling, and 0.15 for customs clearance. In this scale LSP or terminal operators (Section 4.2.1).
manner, the dispersion of the performance of an individual For Hong Kong and other countries that operate logistics and
segment can also be evaluated. transport data exchange platforms on pure commercial basis, a
By-sector comparative analysis is also an essential performance possible approach for state intervention is to establish a trade and
metric that should be conducted to reveal cross-hierarchy supply logistics development committee that will review the efficiency of
chain activities. The processing efficiency index explained in the industry from the supply chain perspective. Performance
Section 4.2.6.2 can be extended to integrate the lead time of PO measurement (i.e. the role of DTTN for Hong Kong) should then be
fulfillment, SO processing, laden container collection/delivery, and incorporated within the framework of the review, which may
customs clearance. Hence, by categorizing transaction data with H. hopefully enhance or revitalize the function of SCPM. Alternatively
S. code, the efficiency index will compare the overall chain the state authority may enforce sourcing terms that favour vendors
performance (from vendors to customs authority) of an individual or LSP using the integrative SCPM system.
firm with the best practice and average standard of the related The state administration may also transform logistics and
industry. Through an integrative platform-based SCPM, firms can transport data exchange platform into a SCPM system by adopting
monitor activities of the terminals and institutions related to their a series of statistics collection exercises. By setting TLPI (General)
PO or SO, which is a benefit not achievable by conventional SCPM and TLPI (Reliability) as two key statistics for the efficiency
systems. evaluation of trade-related supply chains, the state administration
should contract a consultant to design alternative methods to
6. Results and discussion collect data and update such figures. Through this approach, a
proposal to utilize the logistics and transport data exchange
Management factors rather than technical condition critically platforms for related data collection may be suggested for
affect the transformation of a logistics and transport data exchange consideration.
platform into an integrative SCPM system. As illustrated by the Based on the findings of the case study and expert advice, a
case of DTTN, only moderate technical inputs are required to logistics and transport data exchange platform can be transformed
extract and compile the supply chain performance metrics based technologically and become an integrative SCPM system. Adopting
on lead time. In a competitive market economy, key supply chain Internet-based ICT and state policy measures to enhance efficiency
infrastructure operators, such as container terminal companies, of cross-border trade administration is not new in supply chain
require cost savings, quality improvement, or market opportunity studies, for example cloud single window (Pugliatti, 2011) and E-
to conduct their services through a common information platform. government service-orientated architecture (Bukhsh and Wei-
A transparent and integrated cross-hierarchy SCPM system may gand, 2012). This research tackles the same problems from the
exert additional pressure on supply chain infrastructure operators control perspective by similar tools, expanding the scope from
because their managers may need to handle extra external forces state to cross-sector orientation. Similarities of trade and transport
(mainly from users) on their service performance. This condition data exchange platforms of advanced economies (Section 4.2.3),
partially explains the persistent difficulty of DTTN as a commercial and other endeavors to integrate trade administrative processes
entity in attracting major supply chain infrastructure operators to indicated that broad-based information sharing, which this
be on board. research advocate, is one of the key options to enhance supply
Nevertheless, a cross-hierarchy SCPM from a policy perspective, chain efficiency. Nevertheless, a properly organized research
whether transformed from a logistics and transport data exchange involving infrastructure and institution operators (with actual
platform or purposely built, can facilitate decision makers to data) remains useful in understanding key issues, particularly
monitor the efficiency of different supply chain stakeholders and administration problems, that may affect the operations of a
the entire supply chain at large. For example, the efficiency of Hong platform-based SCPM system.
Kong container port as a whole or related individual process, such
as the customs clearance process, can be revealed by the proposed 7. Conclusions
SCPM. Two additional benefits should be considered. First, if the
integrated SCPM is designed and operated properly, it can become The 21st century, which is also known as the digital era, is
an automated system providing continuous monitoring service marked by firms and nations being surrounded by all types of
with minimum human intervention. Second, the investment information. The ability to convert information into useful
involved in enhancing a trade-data exchange platform is moderate. intelligence may affect the success or failure in competition
Therefore, the state policy action to foster the establishment of (Guthrie and Austin, 1996; Hassan, 2008). SCM is facing a similar
SCPM is justified, and the decision of the Hong Kong SAR situation.
Government to withdraw support for DTTN is shortsighted. In this paper, we examined the shortfalls of the current SCPM
It is important to reiterate the flexibility of the enhanced SCPM system in monitoring the performance of stakeholders in a
which only reveals the industrial trend of service performance, e.g. globalized environment. SCPM lags behind in measuring the supply
by sector PO & SO processing efficiency indexes, leaving the chain performance of stakeholders from the cross-hierarchy
discretion to individual enterprises to decide whether or not to perspective. The capability of a logistics and transport data exchange
disclose their own company performance. The supply chain platform to function as a SCPM mechanism is illustrated through a

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contributions of a logistics and transport data exchange platform, Case Stud. Transp. Policy (2016), http://dx.doi.org/10.1016/j.cstp.2016.03.001
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Please cite this article in press as: M.C.B. Cheng, J.J. Wang, An integrative approach in measuring hub-port supply chain performance: Potential
contributions of a logistics and transport data exchange platform, Case Stud. Transp. Policy (2016), http://dx.doi.org/10.1016/j.cstp.2016.03.001

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