Integration of Information Flow for Greening Supply Chain Management

Inhaltsverzeichnis

1. Frontmatter

2. Application of Information Flow Standards in the Supply Chain

   1. Frontmatter

   2. Using the Standards of Electronic Communication on the Example of Solutions Applied in Creating Logistics Single Window at the Ports of Portugal

      Waldemar Osmólski, Marina A. Zhuravskaya

      Abstract

      The following chapter discusses the practical application of the latest technological solutions for the exchange of electronic data between the entities of the logistic ecosystem. One of the most important features taken into account in the construction of system connections is the component architecture, which in this case is based on the SOA (Service Oriented Architecture) model, and the standard of information exchange based on the eDelivery and eFreight models. All these solutions were used in the construction of LSW (Logistics Single Window) in the seaport of Lisbon and were the basis for its application in other ports of Portugal. An extremely important feature is, above all, the interoperability of the issue, which is based on the possibility of easy connection with European port systems and using transoceanic connections based on the solutions used in Brazilian ports. Such a modern approach to communication solutions puts Portuguese ports in a leading position in comparison with other European ports, thus setting the direction for their further development.

   3. Reference Model of Information Flow in Business Relations with 4PL Operator

      Adam Kolinski, Agata Horzela, Marta Cudzilo, Roman Domanski

      Abstract

      Nowadays, apart from the physical availability of goods in a given link in the logistics chain, great importance is attached to the possession of up-to-date information about the quantity, structure of assortment, or location of goods flowing through the supply chain, which a given link is not (first of all) or was already the owner of. Goods movement monitoring enables a wide range of information from the logistics chain to be obtained and used to deliver faster and at the same time at a lower cost—more effectively reconcile the ubiquitous compromise in logistics between customer service level and its cost. The aim of this chapter is to present studies on the problems and needs of information integration in business relations between the 4PL Operator and the contractors. The chapter uses both secondary sources—analysis of the literature of the subject, as well as primary sources—various analyses of business practice. The authors developed and implemented their own multi-stage methodology of studies covering procurement companies, distribution companies, 4PL operators and their customers. The studies were conducted in years 2017–2018 on a sample of 76 companies from the TSL sector (targeted selection) operating on the Polish market. The study perspective includes a cross-confrontation of positions of both parties to the information flow in the logistics chain: opinions of suppliers and distributors regarding the functioning of 4PL operators and the opinions of 4PL operators regarding the functioning of their customers—suppliers and distributors. The reference model of information flow between a business entity and a 4PL operator proposed in this chapter may constitute a standardized method of monitoring of communication in business practice of companies, providing a basis for further analyses and evaluations of the improvement of the efficiency of logistics processes in procurement and distribution chains.

   4. Improving the Efficiency of Planning and Execution of Deliveries with the Use of a Location Register Based on GLN Identifiers

      Marta Cudzilo, Roksolana Voronina

      Abstract

      The efficiency of logistics processes largely depends on the effective and efficient flow of information in the supply chains. In the case of planning and implementation of distribution, the key information is the information about the operating conditions of the locations from/to which deliveries are made. In this chapter, the author presents the concept of functioning of the location register based on GLN identifiers. The register is a global, open and standardised database in which each location marked with the GLN identifier is described by a number of parameters and attributes characterising its physical features and the conditions for the implementation of logistic operations in a given location. The author describes the impact of using a location register based on GLN identifiers on the effectiveness of planning and execution of deliveries, presenting the results of the pilot implementation of the register in the form of a case study of a large logistics operator. The presented results of changes in the examined distribution process efficiency indicators recorded in the examined case confirm the benefits of using the location register. The last part of the chapter outlines further directions of development of the location register based on GLN identifiers and stresses the material importance of developing a functional and business model for the analysed solution. The model developed should take into account the diversity of roles and the links between actors in the supply chains affecting the conditions for the construction and use of the register.

   5. Supply Chain Digital Collaboration

      Martyna Zdziarska, Nataliia Marhita

      Abstract

      Digital integration of a supply chain is the result of changing the essence of existing relationships between enterprises from a transactional concept to a collaborative concept. The essence of it is based on mutual trust and implementation of a “win–win” strategy, which leads to the creation of a logistics partnership. Logistics partnerships between the participants of the integrated supply chain give an effective chance opposing competition and creating premises to meet the needs of customers. What is more, information sharing and coordination between buyers and vendors have been considered as useful strategies to improve supply chain performance (Huang 2003). The purpose of the article is to introduce the new collaboration paradigm called Physical Internet and its need of innovative IT solutions development that will support digital integration. Author presents the research results of European projects—MODULUSHCA and CLOUD that become a testing ground for the new tools in order to be evaluated and confronted with the real business environment and end user expectations.

   6. Perspectives of Blockchain Technology for Sustainable Supply Chains

      Helga Pavlić Skender, Petra Adelajda Zaninović

      Abstract

      Academic and business interest in blockchain and its potential benefits for businesses has risen considerably since 2016. Blockchain is considered as a distributed ledger technology that records transactions between parties in a protected and permanent way and enables transferring data and assets easily without relying on a third-party intermediary. Current supply chains are mostly linear and heavily complex networks with various stakeholders which often causes low transparency, data silos and unstandardized processes. The aim of this paper is first, to analyze the overall perspectives of blockchain technology and second, to investigate the potentials of blockchain to enable sustainable supply chains which would eliminate many shortcomings in current supply chains. This paper analyses three cases which exploited the potentials of blockchain technology with the aim of promoting sustainable sourcing from origin to consumers. The analysis compares three different cases of global supply chains, with a focus on corporate sustainability in agriculture, and manufactured goods. The results of our analysis show that blockchain has the potential to boost the supply chain sustainability, however the blockchain can’t guarantee that all supply chain stakeholders provide accurate, uniform and verifiable data. This paper provides a conceptual framework to better understand the benefits and challenges of the blockchain technology. Both academics and practitioners in companies might find this framework useful, as it outlines important lines of research in the field.

   7. Challenges in Future Data Interchange in Transport and Logistics Sector

      Tomasz Debicki, Carlos Guzman

      Abstract

      Data integration in today’s supply chain becomes more and more challenging for companies. In the age when technology is not so much obstacle for integration the few others appeared, related to: different systems in use, organization’s aspects, standards in use, growing number of players in global supply chains and continues business changes. These article shows how data integration has been changing through years from one hand adopting new technologies and from the other adapting to business requirements. Thanks a wide spectrum of researches, surveys, consultation with IT managers responsible in their organization for data integration and EDI on-boarding projects. Authors were able to conclude on some of near future data integration aspects as well as to assess what solutions would have to be compromised and which bring true values for companies and trading partners. The professional experience of authors brings the true value to the article because it is based on real daily examples of data integration in global supply chains, also an experience in research projects for e-administration and idea of building blocks for partner integrations shows even more ways of where the future of data integration is heading to.

3. Information Systems and Technological Solutions Integrating Information Flows in the Supply Chain

   1. Frontmatter

   2. Logistics and Supply Chain Intelligence

      Alexander Haas

      Abstract

      Seizing digital challenges of contemporary logistics and supply chain management (LSCM) like globalization, ubiquitous data usage and availability or sustainability, a holistic perspective on the integration of Big Data and Business Intelligence (BI) techniques is still at the beginning. With the help of different model types like procedure and reference models, a holistic view using a meta model is created to present a new management approach in LSCM blending data and information aspects with traditional logistics and SCM approaches. Results of an international study executed in Bulgaria, Slovenia and Germany fortify the new management approach and deliver useful insights on practical application. Contributions to literature and research are made through a newly constructed management approach in LSCM and the opening of a new research direction.

   3. The Impact of Communication Platforms and Information Exchange Technologies on the Integration of the Intermodal Supply Chain

      Johannes Betz, Ewa Jaskolska, Marcin Foltynski, Tomasz Debicki

      Abstract

      Information and communication technologies (ICT) are a very important element of modern supply chains, they facilitate access to information, allow for more efficient processing of information and, consequently, for making more accurate decisions. This chapter is focuses on the available ICT solutions which support intermodal transport operations, such as communication platforms and information exchange technologies. The authors presented current applied technologies, connection types, message standards, as well as future trends and their impact on intermodal supply chains, based on the results of international research work carried out in cooperation between HAFEN HAMBURG and the Institute of Logistics and Warehousing in the NSB Core—North Sea Baltic Connector of Regions project.

   4. IT Solutions Supporting Information Exchange in Intermodal Transport

      Bartosz Guszczak, Roberto Mencarelli

      Abstract

      The dynamic growth of trade in goods in Polish ports recorded in recent years, as well as the growing requirements of exporters and importers concerning efficiency, time and reduction of cargo handling costs and coordination of logistic port processes, create a number of requirements for fast and modern information circulation and safe transmission of documents. This chapter focuses on the complexity of information exchange in port operations. Digitalisation of processes for a more efficient exchange of information can be a solution. The digitisation challenge here is to develop and implement the Port Community System as an integrated maritime economy customer service platform, involving all stakeholders in port and border processes.

   5. Determining the Digitalization Degree of Information Flow in the Context of Industry 4.0 Using the Value Added Heat Map

      Dagmar Piotr Tomanek, Christine Hufnagl, Jürgen Schröder

      Abstract

      Supply chain management concentrates mainly on the material flow. The information flow plays a lesser role in terms of value creation. Digitalization in the context of Industry 4.0 promises a higher efficiency in logistics and manufacturing. To move away from a paper-based to a digital production planning and control is also a step forward to a green production system. At the same time a highly focused Industry 4.0 approach can cause plenty of media disruptions in a process. Disruptions in the information transfer leads to a reduction of the value creation. In the course of digitalization the ingratiation of the information flow and the material flow became a key factor. An integration of the information flow requires, as a first step, an analysis of the value of an information. The Value Added Heat Map (VAHM) is a modelling tool that categorizes and visualize the information flow depending on the digitalization degree. The implementation to processes in manufacturing showed that the VAHM method can contribute to a better transparency of the often not fully documented internal information flows. The Value Added Heap Map uncovers media breaks via colour transitions and helps to improve the supply chain within the context of Industry 4.0 by identifying and eliminating possible sources of wastage. The Value Added Heat Map is an innovative method that can contributes to an integration of the information flow in supply chain management processes.

   6. Green Supply Chain Management in Retailing Based on Internet of Things

      Jelena Končar, Sonja Vučenović, Radenko Marić

      Abstract

      Retail sector is about to face changes in the functioning of supply chains. The biggest challenge for retail management is how to achieve sustainable (green) supply chains and at the same time be efficient and profitable in the market. Production and distribution are already adapting to the trends of reducing energy consumption and thus affecting the environment. The key to success is the rationalization of operations, the reduction of costs and, on this basis, the provision of a more efficient supply chain, which enables competitiveness in the market. Such a retail supply chain requires information monitoring, flow, consolidation and management that implies the implementation of the Internet of Things. The aim of this chapter is to analyse the justified introduction of the Internet of Things to the retail sector. An empirical study was conducted covering two strata. The first stratum consisted of 30 managers of retail chains from the Western Balkans region. It was tested whether the introduction of the Internet of Things contributed to the improvement of indicators such as customer information, profitability, rationalization of costs, more efficient storage and logistics activities, packaging and waste disposal, product returns and customer safety and health. The second stratum covered 150 customers who were tested about the significance of these indicators for their perception of eco-quality (green quality). On the basis of the obtained results, regression models are defined which show the significance of each of the analysed indicators. The results of the research can serve as a guide to the management of retail chains on which indicators they should develop and optimize through the Internet of Things. The limitations of the existing research and suggestions for future research are outlined in the paper.

   7. Role of IoT Solutions in Reducing CO2 Emission and Road Safety in Car Rental and Car Sharing Market

      Michał Adamczak, Rebeka Kovacic-Lukman, Adrianna Toboła, Maciej Tórz, Piotr Cyplik

      Abstract

      It is required by increased traffic on European roads to undertake actions not only to reduce CO₂ emission but also to enhance traffic safety. A driver’s driving style is an important aspect that influences CO₂ emission and driving safety. Considerable challenges are to train drivers on a massive scale and convince them to change their driving style. Nevertheless, the authors notice two favourable circumstances that are a popularity increase in a short-term car sharing and the Internet of Things technology development. It would be possible to educate drivers on a massive scale with no additional costs included due to systems that analyse the drivers’ driving style in the short-term car rental service performance. This analysis would be based on telematics data and its processing and transfer to the drivers as hints oriented to eco driving and safe driving. The authors suggest that such solutions would significantly influence the driver’s driving style improvement. In the authors’ view, cars use more fuel (and thereby, emit more CO₂) than declared by their producers in the short-term car rental service performance. At the same time, the drivers cause more damage than the mean of the entire Polish market. The chapter aims at verifying 3 research hypotheses. One of them regards fuel consumption (and CO₂ emission) and two of them regard drivers’ safety in the short-term car rental service performance. The research was conducted in July 2018 based on a sample of 699 cars that were part of the fleet of an international car rental company operates on Polish market and specialises in short-term car rental services. The conducted research results made it possible to state that car consume much more fuel (and thereby emit more CO₂ to the atmosphere) than declared by their producers. This is referred to the short-term car rental service performance. The drivers, who use this service, cause traffic damage more frequently than the average for all cars in Poland and the damage results are larger than the mean (measured by the average damage value).

   8. Integrating Life Cycle Thinking, Ecolabels and Ecodesign Principles into Supply Chain Management

      Matevž Obrecht

      Abstract

      Population growth, increasing global production and consumption all cause increasing material, water, energy and land use and cause harmful impacts for the environment as well as for human health. Due to limited and scarce resources on planet Earth, environmental depletion, harmful emissions and climate changes our society is pushed one hand as well pulled on the other by increasing environmental awareness, available green technologies and developed concepts of environmental protection towards more environmentally sound future, necessary to enable further existence of human rase in its present extent. Environmentally sound economy such as circular economy, ecodesign and sustainable development will become not just a part of comparative advantage in achieving differentiation strategy but also a possible potential answer to forecasted socio-economic challenges in the forthcoming decades. Because companies are more and more connected and related to their supply chain partners, activities related with environmental improvements must also be focused on supply chain perspective and not just on one company representing just a small part of much broader supply chain or supply network. This chapter is therefore related on investigating green supply chain management, integrating life cycle thinking, eco-design principles and environmental labelling into supply chain management.

4. Modelling and Simulation of Logistics Processes as a Decision-Making Tool

   1. Frontmatter

   2. Value of ICT Integration Model of e-Booking System and Intelligent Truck Traffic Management System in the Sea Port of TEN-T Corridor

      Boguslaw Sliwczynski

      Abstract

      Systematic growth of cargo flow in the TEN-T corridor passing through the all Sea Ports served both by the existing terminals and those planned in the Port’s development strategy. The forecast growth rate of turnover in the Port results from the strategy adopted by the Port Authority to increase competitiveness and attractiveness of the Port as a business partner, in response to the implementation of the strategy of economic development of Europe, the strategy of development of the New Silk Belt and Route China-Europe and the dynamic development of European import/export. Currently, traffic in the European Sea Ports (e.g. Rotterdam, Hamburg, Antwerp, Dover, Felixstowe, Aalborg, Le Havre, Lisbon) periodically reaches the saturation level in the existing road network. This causes, periodically and in the perspective of the development of goods turnover, the reasons for this:

      • lorry queues before entering terminals and on access roads, creating traffic jams and blocking roads in the Port and City and the main access routes,
      • extension of unloading/loading time of ships,
      • reducing the efficiency and effectiveness of terminals’ work,
      • inefficient use of parking lots in the port, as well as in the period of traffic jams when there are no parking spaces for lorries in the port’s parking lots and its surroundings,
      • reduction of traffic safety and greater susceptibility to collisions with high or critical saturation of traffic in the road network and reduction of transport comfort for the society of the port agglomeration.

      The problems identified have a significant impact on the efficiency and duration (and delays) of cross-border road freight transport (road hauliers from all over Europe), in global maritime supply chains served by global shipping lines, as well as in international rail freight transport.

   3. Model Setting and Segregating the Reverse Logistics Process

      Slobodan Aćimović, Veljko M. Mijušković

      Abstract

      Reverse logistics can be identified as the key dimension of the green supply chain. The necessity to segregate the regular and reverse logistics flows is expressed through the differences in aspects such as product quality, transport organization, warehouse and inventory management, the general visibility of the entire process, but also by the differences in costs basis of these activities. That is why it is important to adequately set the model for the phases of the reverse logistics process, which is the subject of preoccupation within this chapter. Although there is no unified interpretation of the reverse logistics phases, that does not mean that different approaches to this issue can not be jointly analyzed, and a relatively precisely segregated model can not be established and set. Being driven by such logic, the following phases of the reverse logistics process have been analyzed in detail: returns initiation, collection of returned goods, consideration of different modes of treating the returned goods, decision-making concerning the treatment of the returned goods, client/supplier crediting and returns analysis with performance measurement. An extremely important moment within this process is connected to the consideration and decision- making concerning the treatment of the returned goods. The potential modes are the following: direct product reuse, product reuse after slight modification, using the recycled goods and waste management, when products can not be used any longer. The aim of this analysis is to indicate the complexity of the return logistics process, as well as the importance of the adequate model setting of its particular phases.

   4. Information Flow in the Context of the Green Concept, Industry 4.0, and Supply Chain Integration

      Brigita Gajšek, Marjan Sternad

      Abstract

      Supply Chain Integration describes how employees in a specific company along a supply chain and its trading partners work together to achieve common business objectives via integrated business processes and information sharing. In this way, material and information flows are established. Due to the competitiveness between supply chains and the trend to be more efficient and sustainable, we distinguish several phases of supply chain integration, from the oral negotiation and repetition of the same activities to automation and reduction in the number of activities. Recently, much attention has been paid to the concept of Industry 4.0, which is based on computerisation and connectivity. Digitalisation is recognised as a springboard for visibility, transparency, predictive capacity and adaptability or, in other words, for Industry 4.0, which inherently requires technological development. Information systems, as an example of technology, are an enabler for increased sustainability and greener supply chains. Currently, companies are at different stages of technology development, and the establishment of external integration depends on the digital development of each element of the supply chain. The current situation in companies reveals different degrees of maturity, both from the aspect of supply chain integration and from the aspect of Industry 4.0. In this paper, we reveal possible overlapping areas between different maturity phases of supply chain integration and the Industry 4.0 concept, as well as how different combinations of maturity levels characterise information flow.

   5. Digital Transport Management in Manufacturing Companies Based on Logistics 4.0 Concept

      Piotr Cyplik, Marcin Hajdul

      Abstract

      Manufacturing companies operating in turbulent environments require constant adaptation to changing conditions. Current expectations of customers are not only to buy product of acceptable quality, but also comprehensive logistics service. European Union research indicate that more than 40% of the total logistics costs are the costs of transport. Therefore, transport is susceptible to innovations and improvements. Authors proposed implementation of selected elements of logistics 4.0 concept for transport management as an integrator of supply chain. The article used proprietary methodologies for assessing the transport system, through which diagnosed root causes of problems of the traditional approach to transport management. Later in the research authors analysed the concept of logistics 4.0 in the context of the possibility of offset diagnosed root causes. As a result reference model for continuous improvement of the transport management system based on the concept of logistics 4.0 in a production company were created.

   6. The Model for Risk Management and Mastering Them in Supply Chain

      Borut Jereb

      Abstract

      Every organization aims for successful and continued operations, therefore efficient supply chain management is essential as risks in supply chain represent one of the major issues in today’s businesses. In this chapter, on the one hand, a new risk management model is proposed in such a way that it takes into account different segments of the public and time-varying internal and external parameters from the observed system environment. On the other hand, a freely accessible catalog of risks in supply chains is described, which is based on the described new model. This model complies with the general risk management (ISO 31000) and supply chain security (ISO 28000) standards, while it also covers and includes recent findings from the risk management sphere of influence. The central concept of the model is an individual public exposed to individual risks. In the model, we determine what kind of a relationship a specific public has to some specific risk. Different publics have a different attitude to a specific risk—different publics have different exposures and different subjective uncertainties about a certain risk, even though objective uncertainty is the same for all public. In our model, we are assuming that risk is ultimately a characteristic of human beings and not of things or concepts as is the case with most of the existing risk management models. Human is not an object, but a self-aware subject with their own will, a power to do things and with his own exposure and risk acceptance. In addition, the model introduces functions which calculate new values of parameters and output on the basis of the given input and the accumulated history of the past processes’ life cycles. Later on, the model resolves if calculated tolerance levels for risks, impacts and process parameters are adequate for every determined segment of the public. Calculated results are based on the provided tolerance levels, while the parameters, functions and levels are assumed to be non-deterministic (i.e. parameters, functions and levels may change in time). Contemporarily to the model, a freely accessible experimental risk catalog was formed and published online based on practical research in authentic organizations. Here, risks that have been identified thus far are presented and described, while the catalog also enables joining and cooperation of the experts from the field into a community. Hence, the catalog is considered as an ever growing list of hypothetical risks that enables an insight into the model, its value and practice while it can also be used as a listing and/or starting point for establishing supply chain risk management in organizations.

   7. Modern Marketing and Logistics Approaches in the Implementation of E-Commerce

      Nataliia Mashchak, Oksana Dovhun

      Abstract

      E-commerce is a very broad topic that has interesting and contemporary components that require thorough study. It is indisputable that internet trade promotes the development of enterprises. Not to the same extent for everyone, but also, depending on the desire to respond quickly to market demands and develop approaches to managing sales through the Internet, marketing and logistics. Taking into account this, in the work the researches and publications of scientists on the preconditions, trends and perspectives of the use of effective marketing tools, logistic management mechanisms that can promote e-commerce development are researched. The authors systematized the main market changes that are projected for their comprehensive understanding by enterprises. Market players should monitor trends, take into account barriers and threats to satisfy all consumers. Today, the speed and quality of logistics, and in particular, the logistics of e-commerce, are becoming an important competitive advantage. The integrated logistic management approaches that promote optimization and efficiency of decisions of production, distribution and sales of enterprise goods, and ensuring the positive characteristics of supply chains are relevant. The study uses a systematic approach to study the basic laws and mechanisms of systems, the variety of internal and external relations. The research is carried out at the empirical level with the selection of facts that reflect the main trends of e-commerce development.

   8. Management Challenges of Smart Grids

      Noémi Piricz

      Abstract

      If we wish to integrate green energy into daily life we should sincerely discuss the management tasks of smart grids. Smart grids belong to hot topics in engineering journals but their management and other economic angles have received less attention. Dangers of cybercrime have increasing publicity meanwhile businesses consider the stable, reliable electric power supply to be self-evident. The modern electric power supply chains—more concretely the smart grids—show the near future. The technical and engineering parts of them seem to exist and there are more theories for their economic and financial operation, however, the integration of all these into one system may hide more unsolved problems. There is a lack of discussion of the consequences and management of the increased roles of end-users and the behaviour of them. Our critical review deals with the managing questions of smart grids based on the most cited relevant research papers. We also discuss the challenges of the management side of modern electric power supply chains, facing E-mobility and E-vehicles (G2V and V2G). In our view smart grids are not purely a technology, but a complex set of intertwined technologies, which requires drastic changes in both user behaviour and society. We see that papers dominantly use the scheme of entirely rational end-user behaviour which may cause unexpected difficulties in practice.