Logistics and Supply Chain Impact on Maritime Transportation - Research Proposal Example

The Impact of Logistics and Supply Chain in Maritime Transportation Outline for the research The research is aimed at understanding and evaluating the various positive and negative impacts of logistics and supply chain management in maritime transportation. The scenario of maritime transportation as an industry has evolved over time and has recently emerged as a very important way of transportation especially driven by the global connectivity and international trading activities. The methods and processes of supply chain management and logistics management have also changed dynamically in the past few years with new concepts and technicalities added in the dimensions of logistics and supply chain management. Logistics and supply chain has emerged from being a supporting service for businesses to a mainstream service for businesses across the globe. The maritime industry has also adopted new concepts of logistics and supply chain and has been benefitted by the use of the new concepts and methodologies of logistics. The modern day maritime transportation industry has become an avid user of logistics and supply chain and has been constantly transforming it to meet the emerging needs of the global business environment through the effective use of supply chain management and logistics activities. In this respect, many challenges and opportunities are created by logistics and supply chain in this mode of transportation. Also, there have been numerous positive benefits and some negative impacts of supply chain and logistics on maritime transportation as an important industry. Research objectives The main objective of the research is to find out the positive and negative impacts of the logistics and supply chain in the maritime transportation sector. The secondary objectives of the research works are to understand how the maritime transportation industry is affected by the evolution of the logistics and supply chain management in the industry and how the use of new concepts and technologies in this industry has led to the creation of new opportunities as well as challenges for the maritime transportation industry. Therefore the specific research questions which are aimed to be answered through this research are: What are the positive and negative impacts of logistics and supply chain management on the maritime industry? How far has the maritime industry been able to achieve increased efficiency with the implementation of suitable logistics and supply chain practices? What are the challenges and opportunities created by the use of logistics and supply chain practices in the maritime industry? What are the future benefits and threats associated with logistics and supply chain in this industry? Literature review Maritime transportation sector is an important emerging sector with respect to the global trading practices. The role of logistics and supply chain in the maritime transportation industry is significant. The key role of supply chain and logistics in the maritime transportation sector is to assist the sector in its consumption, production and distribution processes. Christopher (2010) has established that an integrated logistics system is considered to have added much value to the functioning of the maritime transportation segment (Christopher 144). The supply chain ensures that the goods are produced and delivered in the market in proper quantities without any defects and at efficient competitive prices. According to Song and Panayids (2012), the adoption of efficient logistics functions enhances the competitiveness and capabilities of the maritime transportation sector (Song and Panayids 512-514). The integration of the logistics processes into the operations department of business in the maritime transportation sector helps to improve the functionality and efficiency of the businesses. A suitable logistics and supply chain department in the businesses in maritime transportation sector is useful for making the business completive on a global scale by supporting the global operations of the business. According to the work of Dicken (2011), the maritime transportation sector uses a number of ships and marine carriers so as to speed up the movement of goods as well as streamline the cross border movement of goods (Dicken 121). An integrated logistics and supply chain method with the combination of different ways of maritime transportation used from one point of the supply chain to the other point is important because a number of carriers are associated with the aim of creating an efficient and high performing business system in the maritime transportation sector. Levinson (2008) has proposed that integrated logistics and transportation sector encompasses more than one interface point wherein more than one carrier is used to organize a streamlined transportation process (Levinson 442). The advancements in logistics and supply chain in the maritime transportation industry have improved the physical operations by making it easy to control the movement of goods in the industry. The environment includes simple documentation processes, lesser liabilities, efficient handling, effective control and superior management. All this ensures the provision of services in the maritime transportation industry to be predicative, reliable and efficient in meeting the needs of the customers for this industry. A secured supply chain and logistics ensures that the basic activities involved in maritime transportation which are inventory, storage, movement of goods, material handling, order processing and final order delivery are fulfilled properly so as to create more value for the customers. According to Mangan, Lalwani and Butcher (2011) since the supply chain management of the maritime transportation industry involves the operations done across geographical and international boundaries, it is important to ensure that integrity, reliability and security is maintained in all stages of the supply chain (Mangan, Lalwani and Butcher 230). The use of latest supply chain and logistics technologies ensures that least pilferage and destruction of the goods in transportation is done. This decreases the chances of loss of revenues and profits for the maritime transportation businesses. Edwards and Goodrich (2012) have argued that this improves the reliability and goodwill of the maritime transportation companies in the industry (Edwards and Goodrich 12). The logistics and supply chain systems used in the maritime industry ensures that strict requirements needed in the service levels with respect to security of the cargo, lead time, reliability, frequency and risks of damage. Other issues faced by maritime logistics are the complexities of the legal procedures and the challenges like the increasing number of small consignments. According to the work of Ballou (2004), the logistics systems adopted by the maritime transportation businesses helps in improving the security as well as the efficiency of the supply chain systems used in the maritime transportation industry (Ballou 40-44). It also enables a smooth flow of goods services and information from the port for origin to the ultimate destination for the goods, services and information which creates value for the end consumers in a cumulative manner. A supply chain management is not considered efficient if one part of the chain operates efficiently and another part does not. Carsten (2007) indicated in his work that the overall consistency of operations of the supply chain also increases the overall efficiency of the maritime transportation business (Carsten 207-208). One major impact of the supply chain and logistics in the maritime transportation is the ease of operations with respect to transnational transportation of goods which facilitates global trading and helps the maritime transportation to become equipped to take up the global trading activities as an opportunity for the sector. Intended research methodology The research methodology used involves the collection of primary as well as secondary data relevant for the research. The research methodologies follow mainly qualitative approach with a fair degree of quantitative approach. The nature of the research is exploratory in which an in depth analysis is done to understand and analyse the quantitative as well as the qualitative data collected for the research work. The primary data collection is done through semi structured interviews and through the administration of a questionnaire specifically designed for the research. The questionnaire used in the research method is given in Appendix 1. The questionnaire consists of open needed as well as closed ended questions. The open ended questions are aimed at taking up an exploratory approach for the study with creating a scope for the respondents to present a wider and deeper view on the selected topic. The closed need questions are used for documenting the selective answers and to the point answers which are important for the research. A combination of open ended and closed ended questions in the research work help the researcher to analyse the topic from a macro as well as a micro perspective which is important for the consideration of all the possible dynamics of the research topic. The research questionnaire is administered on a selected sample size of 15 people because this size of the sample can adequately represent the population for the research. The sample is chosen from the maritime transportation industry. Of these 15 people, 4 people are selected from the senior management of companies operating in the maritime transportation sectors, 8 people are selected from various units of logistics and supply chain in the maritime transportation companies and 3 people are selected from the client companies of the maritime transportation businesses who deal with these services on a frequent basis. This sample is considered to be representative of the whole maritime transportation sector including the logistics and supply chain segments of the businesses. The secondary data is collected through various academic sources like academic, journal, published reports, articles, company reports as well as reports from authentic supply chain and logistics authorities and other bodies operating in the maritime transportation sector. The secondary data is collected from relevant books and other literary works presented by academicians and practitioners with regard to similar close area topics. The research follows a pattern of in depth analysis in which the secondary data is collect with the aim of considering the quantitative or measurable aspects of the research. The data collected are suitably analysed and studied to present findings and outcomes from the research. The collected data are analysed by the researcher using his personal judgment and observation power in order to answer the research questions adequately. The theoretical structure for the research The theoretical structure followed by the research is used to steer the research work in the right direction. A hypothesis is set in the reassert with an aim to justify the hypothesis or establish the hypothesis on the basis of the analysis and interpretation of relevant data. The hypothesis is a set statement that is assumed for moving the research in the proper direction to achieve or establish an ultimate objective. The research hypothesis or assumption set for this research is that there are many positive impacts of logistics and supply chain on the maritime transportation industry. These impacts are of more weightage as compared to the negative impacts of the use of supply chain and logistics in the maritime transportation sector. The research starts with the provision of a suitable background for the research followed by a reference made to similar studies and literary works done in the same field by other scholars and practitioners. This is followed by a suitable data collection employing proper research methodologies and setting up the hypothesis as well as interpreting and analysing the data to reach to an appropriate conclusion for the research. A provisional timetable for the research The timetable for the research work is prepared by the use of a Gantt chart. A Gantt chart is a commonly used tool to decide the time table of a project or a research. A Gantt chart is a type of bar chart that can be used to decide the course and planning of the various phases of a research work. The time table for the research under consideration is given below which has been devised for a period of 36 months. Month 1-3 4-6 7-9 10-12 12-14 14-16 17-19 20-23 24-29 30-36 Identification of research topic Formulation of the research objectives Referring to literary works Refining the research topic Setting up of hypothesis Selection of the research methodologies Administration of selected research methodologies Analysis and interpretation of the information Establishing learning an outcomes from the research Practical value of the research The research is expected to add value to the existing literary works and research papers prepared and presented by different scholars and logistics specialists. The research would be useful in the area of maritime transportation and the importance of logistics and supply chain management in the maritime transportation sector. Also, the research work opens up suitable prospects for continued study in the specific and related areas of the study. The attainment of the research objectives can be used as a valuable foundation for further researches and studies by logistics experts and experts of the maritime transportation industry. Works cited Ballou, Royd. Business Logistics/Supply Chain Management. New Jersey. Pearson Prentice Hall. 2004. Print. Carsten, Michelle. Global Legal Challenges. London: Government Printing Office. 2007. Print. Christopher, Manlow. Logistics and Supply Chain management: Creating Value-adding Networks. London: Prentice Hall. 2010. Print. Dicken, Blecker. Global Shift: mapping the changing contours of the world economy. 6th ed. London: Sage. 2011. Print. Edwards, Francis. & Doy Goodrich. Introduction to Transportation security. New York: CRC Press. 2012. Print. Levinson, Shearer. The box: how the shipping container made the world smaller and the world economy bigger. California: University Presses of California. 2008. Print. Mangan, James., Carlo Lalwani and Thomas Butcher. Global Logistics and Supply Chain management. 2nd Ed. New Jersey: John Wiley & Sons. 2011. Print. Song, Ducruet and Nottenbum Panayids. 2012. Maritime logistics: a complete guide to effective shipping and port management. London: Kogan Page. Appendix Appendix 1: Questionnaire 1. What do you think are the benefits of logistics and supply chain in the maritime transportation sector? 2. What are the negative impacts of logistics and supply chain in the maritime transportation sector? 3. What are the future challenges for logistics and supply chain in the maritime transportation sector? 4. What are the future opportunities for logistics and supply chain in the maritime transportation sector? 5. Do you think it is important to continually upgrade the logistics and supply chain system in this sector? Yes No Maybe 6. Do you think logistics and supply chain is impotent in the evolution of the maritime transportation industry? Yes No Maybe Read More