assessment of supply chain performance improvements through technology implementation ... 5 3... ·...

Assessment of Supply Chain Performance Improvements through

Technology Implementation

I-NUF METRANS

Mario Monsreal, Ph.D.

Juan Carlos Villa

Texas A&M Transportation Institute October 19th, 2017

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Agenda

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• Overview

• Approach

• Literature Review

• KPIs and ICT selection and matching

• Case studies

• Conclusions

• Next steps

Overview

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Objective

• To assesses how technology implementation can improve supply chain performance at the regional level.

Scope

• Regional level

• Public sector perspective

• Focus on information and communication technology (ICT), and

• Ground transportation

Approach

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Three Tasks:

Task 1. Conduct a literature review on SCM Perspectives, KPIs and ICTs that are used in supply chain performance measurement

Task 2. Select, develop and match most adequate KPIs and ICTs for regional supply chain performance measurement.

Task 3. Conduct two case studies to evaluate the selected KPIs and ICT

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Task 1. Literature review on SC Management, KPIs and ICTs

Task 1. Literature review

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Feature Private-sector SCM Public-sector SCM

Goal Profit making from customer Quality service delivery to

citizens

View of SCM Procurement is viewed as an

element of SCM

SCM is viewed as a

procurement tool

Sources of

Revenue

Sales of goods and services Taxes and fees

Governance Guided by board of directors and

business plans

Legislative bodies, laws and

regulations

Skills Have highly skilled actors Have less skilled actors

Receptiveness Emphasis on innovation and

entrepreneurship

Emphasis on accountability

and transparency

Private Vs. Public Supply Chain Management Perspectives


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Feature Private-sector SCM Public-sector SCM

Organizational structures Firms of many sizes with

room for new entrants

Highly complex system of

organization

Competencies Very high Low

Confidentiality Very high Low

Degree of collaborations Very high Low

Degree of integration Very high Low

Strategic partnership High level Low

Degree of implementation High Low

Technological application High application Low application

Private Vs. Public Supply Chain Management Perspectives


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Outcomes:

KPIs

Supply Chain Operations Reference Model (SCOR) and Logistics Performance Index (LPI) as a framework.

Criteria:

• Descriptive Value

• Technical Appropriateness

• Data Availability and Cost


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Outcomes:

ICTs

ICTs were classified under three categories based on the technology function :

1. Data collection

2. Data transmission

3. Data processing

ICTs were selected based on the IoT concept

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Task 2. Select, develop and match most adequate KPIs and ICTs

Task 2. KPIs and ICTs selection and matching

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Selected KPIs and their relation to public sector

KPI Relation to public-sector decision points

Time Measures

Lead Time

Depends on order processing time and product transportation

time, which in turn depend on communication and

transportation infrastructure.

Idle Time

Depends on the general conditions of infrastructure some freight

inspection processes and regulations on the use of infrastructure.

Transit Time

Depends on the general conditions of infrastructure and

regulations on the use of such infrastructure.

Clearance Time Depends on the general conditions of infrastructure, regulations,

and inspection processes.


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Cost Measures

Inbound Costs Depend on tariffs, regulations, and on lead, idle, transit, and

clearance times.

Outbound Costs Depend on tariffs, regulations, and on lead, idle, transit, and

clearance times.

Transportation

Costs

Depend on regulations and on idle, transit, and clearance times.

Reliability Measures

On-Time Final

Performance

Depends on suppliers’ lead-time, and on idle, transit, and

clearance times, which in turn are influenced by infrastructure

conditions.

Transit or Travel

Time Reliability

Depends on the general conditions of infrastructure and

regulations on the use of such infrastructure.


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Effectiveness Measures

Load Factor Function of infrastructure conditions and assets, regulations.

Throughput Depends on infrastructure capacity and facilities use regulations.

Service Measures

Order Fill Rate Depends on infrastructure and facilities use regulations.

Perfect Order

Metric

Formed by time, reliability, and fill rate components; it depends on

infrastructure, facilities use, and regulations.

Trip Measures

Market Distance Depends on trade routes, international transportation

agreements, and domestic market development.

Supply Base

Distance

Function of trade routes, international trade agreements and

development of domestic suppliers.


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Selected Information and Communication Technologies


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KPI Data Collection Data Transmission Data Processing

Time Measure

Lead Time (Days)

RFID, Optical Codes, Inductive Technologies,

WSN

Bluetooth, RTLS, WSN, GPRS, GSM, M2M

CTM, TMS

Idle Time Video Vehicle Detection,

WSN GPS, RTLS, GPRS, GSM CTM, TMS

Transit or Travel Time

RFID, Optical Codes, Video Vehicle Detection,

WSN

Bluetooth, RTLS, GPS, GPRS, GSM, WSN

TMS, CTM, APS

Clearance Time

RFID, Codes, Video Vehicle Detection,

Inductive Technologies, Weigh-in-Motion, WSN

Bluetooth, RTLS, WSN, GPRS, GSM

TMS, CTM

KPIs-ICTs matching


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Cost Measures

Inbound Cost

NA M2M CTM, APS, TMS, ERP,

WMS

Outbound Cost Transportation

Cost Reliability Measures

On-Time Final Performance

RFID, Optical Codes, Video Vehicle

Detection, WSN, Inductive Technologies

M2M, GPS, RTLS, GPRS ERP, APS, CTM, TMS

Transit or Travel Time Reliability


Detection, WSN

Bluetooth, RTLS, GPS, GPRS, GSM, WSN

TMS, CTM, APS

KPIs-ICTs matching

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Effectiveness Measures

Load Factor


Detection, WSN, WIM, Inductive

Technologies

Bluetooth, RFID, WSN, RTLS, M2M

TMS, WMS, APS

Throughput


Detection, Weigh-in-Motion, WSN

Bluetooth, GSM, GPS, WSN, RTLS, M2M, GPRS

CTM, APS, TMS, ERP

Task 2. KPIs and ICTs selection and matching KPIs-ICTs matching

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Service Measures

Order Fill Rate

RFID, Optical Codes, Weigh-in-Motion


WMS, ERP, APS

Perfect Order

RFID, Codes, Video Vehicle Detection, WSN

GSM, Bluetooth, RFID, GPS, WSN, RTLS, M2M,

GPRS

CTM, APS, WMS, TMS, ERP

Distance Measures

Market Distance

RFID, Codes, Video Vehicle Detection

GPS, RTLS, M2M, GPRS, GSM

TMS, CTM

Supply and Base Distance

RFID, Codes, Video Vehicle Detection, WSN

GPS, RTLS, M2M, GPRS, GSM

TMS, CTM

Task 2. KPIs and ICTs selection and matching KPIs-ICTs matching

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Task 3. Case studies

Purpose:

To evaluate the use of KPIs and ICTs and their integration in real-world scenarios.

Specific Cases:

1. Land Border Port of Entry (Laredo, TX)

2. Maritime Port of Entry (Port of Houston, TX)

Approach:

Look at the gap between current KPIs and ICTs and “desired/needed” for SC performance measurement.

General Outcomes:

• Current KPIs and ICTs—already implemented and measured.

• Proposed KPIs—not yet being measured, but that the port has the required technology in place to calculate them.

• Recommended KPIs— with regional supply chain scope that the port could provide information to measure.

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Mexico U.S.

1 MexicanYard:

Shipment is picked up by trucker and

heads to Mexican Customs

Inspection

Mexican Customs

Inspection:

US Federal Compound

CBP Primary Inspection:DOT-FMCSAUSDA, other

federal agencies

2 3State Safety

Facility: Border Safety

Inspection Facility

4 5U.S. Yard:

The shipment is dropped off at the U.S. yard once crossing

the proper inspections

Transit or Transit Time / Transit or Transit Time Reliability

Clearance Time

Idle Time

Laredo POE with Current and Proposed KPIs


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Laredo implemented technologies


Technology at the

Land POE

Type of

Technology Application at the Port Benefits of Applied Technology

RFID Data

Collection

1. ID for trucks that pay

annual fees

2. ID for shipments in the

FAST program

3. Measure transit time and

wait time

RFID technology has helped expedite

the border crossing process by sharing

data electronically and identifying trucks

that are enrolled in FAST program. It

also measures travel time systematically.

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Port of Houston with Current and Proposed KPIs


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Port of Houston implemented technologies


Technology

at the Port

Type of

Technology Application at the Port Benefits of Applied Technology

OCR Tags (2D

Optical Tags)

Data

Collection

OCR 2D optical tags placed on

the back of trucks coming

through the Port. Cameras read

the registration information

during the first process of entry

into the Port.

Trucks no longer have to wait and

fill out registration information at

the gate. This technology has

reduced idle time (at the gate) by

48%.

WIM Scales Data

Collection

Trucks are weighed to make

sure they are within the legal

weight limit when entering and

leaving the Port.

Truck weights can be measured

accurately and quickly. Weight

data is collected and stored

automatically.

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Technology at

the Port

Type of

Technology Application at the Port

Benefits of Applied

Technology

Lynx

Application

Data

Processing

Provides real-time

information on pick-up and

drop-off processes (dock

availability and scheduling).

Container availability,

equipment history, or vessel

schedule is available through

the website and the mobile

app.

Improved coordination and

idle time by increasing

communication, decreasing

wait time for pickup or

delivery, decreased

congestion, easier access to

accurate information, and a

reduction of cell phone

usage at the terminals.


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Technology at

the Port

Type of

Technology Application at the Port

Benefits of Applied

Technology

JD’s ERP

System

Data

Processing

JD Edward’s EnterpriseOne

9.2 ERP system has an

internal website used

across the organization,

from HR, Procurement,

scheduling, etc.

Improvements through

streamlining various

business processes and

enhanced overall system

security.

Terminal

Operating

System (TOS)

Data

Processing

The Navis 4 is the TOS

currently used by the Port.

This system manages gates,

vessels, ship yards, and

billing.

Minimize truck turn-

around time and increase

vessel productivity.


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Estimated Benefits of implemented technologies at the Port


Technology Supply Chain Impact Percentage of Impact

Terminal Operating

System (TOS)

Terminal Productivity Improves up to 20%

Transit or Travel Time Improves up to 35%

Optical Character

Recognition (OCR)

Idle Time Reduced in Houston by

48%

Inventory Distribution Cost Reduces by up to 30%

Transit or Travel Times Reduces by up to 40%

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KPI Relation to POE Specific

Variables

Data Collection Systems

Data Transmission

Data Processing

Recommended KPIs for the Laredo POE

Throughput Number of trucks processed at the POE

Truck Volume (empty, loaded, FAST)

Inductive Loop Detectors, Laser vehicle detection devices

WSN, M2M CTM

Recommended KPIs for the Port of Houston

On-Time Final Performance

Punctuality of the container final deliverable time to truckers. Important KPI to improve port efficiency and reliability.

Target Time, Time of Arrival

RFID, Optical Codes, Video Vehicle Detection, WSN, Inductive Technologies

M2M, GPS, RTLS, GPRS

ERP, APS, CTM, TMS

Recommended KPIS for Regional SCP Measurement


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KPI Relation to POE Specific

Variables

Data Collection Systems

Data Transmission

Data Processing

Recommended KPIs for the Port of Houston

Load Factor

Determine vacant space in containers and provide that information to shippers supply managers.

Volume, Capacity

RFID, Optical Codes, Video Vehicle Detection, WSN, WIM, Inductive Technologies


TMS, WMS, APS

Perfect Order

Information on travel times and on-time final performance KPIs. Identify where/when/how containers are being delivered at destination.

Time, Distance, Cost, Volume

RFID, Optical Codes, Video Vehicle Detection, WSN

GSM, Bluetooth, RFID, GPS, WSN, RTLS, M2M, GPRS

CTM, APS, WMS, TMS, ERP

Recommended KPIS for Regional SCP Measurement


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Conclusions and Next Steps

Conclusions • Public sector agencies and private sector industries have different

goals and metrics. However, they could benefit from sharing information to improve overall supply chain performance and regional competitiveness.

• IoT could prove to be a valuable asset in regional supply chain management, as a seamless ICT integrating platform throughout different levels of a regional supply chain and between different supply chains.

• KPI-ICT pairing is the technical core of supply chain performance measurement. It links the needed information for decision making with available and suitable tools to provide required information.

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Conclusions • Underutilized implemented technologies for supply chain

performance measurement. Mainly due to:

• Technology implementation is often performed for reasons other than supply chain performance assessment. Ample room for improvement.

• Lack of understanding by public-sector decision makers of the importance of supply chain performance, measurement methods and available tools.

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Next Steps

• Develop a general system to measure regional supply chain performance that could then be applied to different geographic regions.

• Overcome the lack of understanding of the IoT concept through…

• …Specific demonstration of the IoT concept and its impacts on supply chain performance via simulation.

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QUESTIONS Contact:

Mario Monsreal Ph.D.

[email protected]

Juan Carlos Villa [email protected]

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mailto:[email protected]







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