Type: Analytical Essays
Sample donated: Connie Graves
Last updated: August 12, 2019
Table of contents 1.
Executive summary 2 2. Findings and analysis 3 2. 1 Key supply chain and logistical issues of MPA 3 2. 2Key supply chain strategies to reduce cost and increase quality and competitiveness 6 2. 3 Key sustainability issues and relevant strategies8 3. References 11 1.
Executive summary International trade is the lifeblood of the world’s busiest container port, which leads to international inbound and outbound cargo transport.The Maritime and Port Authority of Singapore (MPA) is on a mission to develop Singapore as a premier global hub port and international maritime centre, and as a centre of excellence for nder the Ministry of Transport, the Maritime and Port Authority of Singapore (MPA) takes charge of the development and growth of the Port of Singapore. This report is primarily about issues on MPA to help realize the strategic objectives in terms of Cargo transport.Section 2 is the main body of the report including some findings and analysis. Firstly, in the subsection 2. 1, it figures out the global supply chain and logistics strategy of MPA in both international inbound and outbound cargo transport to the Singapore port, which makes a brief analysis about global supply chain, and inbound and outbound logistics.Further, with a description of the current condition of MPA, it indicates three key foundational supply chain and logistical issues of MPA, which including world class physical logistics infrastructure of Singapore, global integrated logistics hub, and beneficial macro business environment such as stable political, economic and social conditions, strong legal system and business-friendly tax structure and proactive & pro-business government.
Meanwhile, it fgures out the necessary to reduce the uncertainty and risk in its global supply chain, which refers to various stakeholders and diverse odes.Secondly, in the subsection 2. 2, it figures out key supply chain strategies that can help MPA to reduce the cost and increase quality and competitiveness in its logistics network. Supply chain strategy is the process aimed to drive down operational costs and maximize efficiencies. Global supply chain is different from traditional domestic supply for its complicated worldwide interests and suppliers. Under the global supply chain, international cargo transport, and even international logistics suffers from intense competition and challenge.
Effective ways to reduce costs and increase uality and competitiveness primarily refers to professionalization of operational process, economies of scale in cargo transport business, using total quality management (TQM) tools in the supply chain, and standardization of process by implementation of relevant standard codes. Thirdly, in the subsection 2. 3, it discusses several key sustainability issues in Cargo transport for MPA and indicates the strategies that can potentially reduce the environmental impact of the global maritime cargo logistics for MPA.Responsible for responding to all maritime-related issues, MPA is committed to protecting the nvironment, so as to develop the city as a major shipping and petrochemical hub. Rational use of natural resources and energy, increase industry profits and expand the scale of the industry to achieve sustainable development of the industry. Discovery of core competitiveness, unity of innovative power and control, development of new dominant business, protection of natural environment and the development of social harmony are all an important supports for sustainable development. .
Findings and analysis 2. 1 Key supply chain and logistical issues of MPA Supply chain logistics refers to the flow of goods, whose key focuses including traffic transportation, warehousing and storage, inventory management, packaging and returns goods handling, and salvage and scrap disposal (Simon, Pietro & Mihalis, 2000; Daniel, Ritu & Vinita, 2004). In the globalization times, global production, transportation, and distribution activities are crucial parts of the supply chain (Anna, KaJsa & Ann, 2004; Michael & Glenn, 2001).In the global supply chain, inbound and outbound logistics are two main approaches of logistics dames & James, 2008). Inbound logistics refers to activities such as receiving, sourcing, storing, order placement and expediting, vendor supplier and transportation.
And outbound logistics refers to activities such as order transmission; order processing, order selection, order transportation, and customer delivery. Total cargo transport includes general cargo and bulk cargo, and general cargo contains containerized and conventional cargo, and bulk cargo refers to oil and non- oil bulk cargo (Figure 1).And shipping is the most efficient form of cargo transport. At present, the Maritime and Port Authority of Singapore (MPA) is trying to expand its port international logistics function by developing ancillary services, and take part in global supply chain division and cooperation actively. In recent years, Singapore positioning itself to become an entire “maritime cluster” of industries and services related to the shipping sector. Figure 1.Total cargo released by MPA To cover the wider maritime services sector which including terminal operators, regulatory bodies, logistics companies, shipping lines etc, the shipping industry of Singapore has established a broader range and greater number of financial incentives.
It is believed that there are three key foundational supply chain and logistical issues of MPA in both international inbound and outbound cargo transport to the Singapore port. 1) World Class Physical Logistics Infrastructure of Singapore.Having realized that shipping is a capital-intensive international business, and that a conducive business environment is vital to the operation of shipping companies, local government and relevant department took efforts to establish a suite of program that facilitate the growth of the company’s maritime businesses operating. In the global competitiveness report 2006-2007, Singapore ranks first in the item of “quality of port infrastructure” (World Economic Forum, 2006). In the World Bank Report on “Connecting to Compete”, Singapore also is the no.
in the logistics performance index by a score of 4. 19, which is over than Netherlands (4. 8), Germany (4. 10), Sweden (4. 08), Austria (4. 06), Japan (4. 02), Hong Kong (4. 00) and other main international ports (The World Bank, 2007).
(2) Global integrated Logistics Hub. There are lots of establishments and business in the international maritime supply chain. Major Shippers and Logistics Players have Regional HQs and Offices in Singapore.
In Singapore, there are more than 9000 maritime establishments and businesses, which significantly encourage the maritime supply chain to be vibrant. Hereinto, 21 of the orld’s Top 25 third party logistics companies operate their businesses in Singapore.Meanwhile, the Authority supports the diverse business needs of maritime enterprises through our financial, manpower development and R schemes. In to the Singapore port recorded to 31. 6 million, which reflects the important role of Singapore port to be the premier global hub port and international maritime centre. The supply chain of Singapore maritime transport is equipped with high capabilities and technologies.
(3) Beneficial macro business environment such as stable political, economic and social conditions; strong legal system and business-friendly ax structure; proactive & pro-business government.To make the MPA’S objectives goal of promote Singapore as a leading international maritime centre, a proactive approach to regulation and fiscal policies is carried out. For example, through constantly reviewing and updating the tax regime, incentives and other regulations, the government wishes to encourage the maritime industry. In addition, Singapore signs more than 50 double taxation agreements (DTAs) with other countries, which makes the ports of Singapore to be one of the most tax-friendly environs in which to conduct business.However, owing to the large-scaled international supply chain system referring to various stakeholders and various nodes of transportation and storage, it is necessary to control the uncertainty and risk as far as possible to improve the service level further, which is a challenge. competitiveness Supply chain strategy is the process of evaluating the cost-benefit trade-offs of operational activities, which refers to diverse operations aimed to drive down operational costs and maximize efficiencies (Lin et al.
, 2005).Compared to traditional domestic supply chain, global supply chain always refers to complicated orldwide interests and suppliers, rather than simply a local or national orientation (Nagurney, Cruz & Matsypura, 2003). In the logistics network, supply chain partners usually include suppliers, distributors, and customers, which play a crucial role in different supply chains (Liu & Lazaros, 2013). Port is the basic industry in Singapore’s national economy, as well as an important node of the global supply chain network.Under the global supply chain, container terminal is viewed as an important node of the international logistics, and suffers from intense competition and challenge. Under the globalization economy situation, Singapore has faced intense competition from ports in Malaysia, Hongkong and many other important international ports, specifically the port of TanJung Pelepas in Johor.
That is to say, fierce global competition exists among different supply chains. Supply chain strategies aim to reduce operation costs and improve service quality and competitiveness.Taking on the roles of Port Authority, Port Regulator, Port Planner, IMC Champion, and National Maritime Representative, MPA plays a crucial role in determining operation of the supply chain. Accurately, operational cost, service or product quality and competitiveness are always connected closely. Effective ways to reduce costs and increase quality and competitiveness primarily include professionalization of operational process, economies of scale in cargo transport business, using total quality management (TQM) tools in the supply chain, and standardization of process by implementation of relevant standard codes.
Of course, it is never limited to these. increase quality and competiveness in its logistics network (Alexander, 2011; Nicolas, 2004). MPA is responsible for development and growth of the port of Singapore, hich includes terminal operators such as PSA Corporation and Jurong Port Pte Ltd. It also takes charge of port and marine services (such as information, guidelines and procedures referred to the port and its operation) and vessel traffic, etc.On one hand, managed in businesses related to logistics and freight industry, the organization takes efforts to professionalize its business process and relevant technologies to enhance trade. Professionalization of operational activities helps to improve productivity and efficiency, which in some extent reduce cost and improve uality. On the other hand, a mature and scaled logistics industry is the crucial factor of reduce cost of logistics networks, and even the whole societal supply chain (Atul & Vijaya, 2000; Jiro & Sumiko, 2002; Kenneth,1999).
Economies of scale indicate that expanding the scale of production leads to increasing of economic benefit (Michael, 1991; Rumy, 1997). Owing to that MPA have the size for economies of scale in managing cargo transport, building infrastructure, as well as protecting the environment, the comprehensive unit cost is reduced. What’s more, economies of cale and declining transport costs contribute to leading new trade patterns. Seating at the heart of the supply chain, no wonder that economies of scale are beneficial for MPA.Total quality management in supply chain. Total quality management (TQM) is a kind of advanced quality management philosophy, technological methods and modes, which significantly guides for the development direction of quality management in the future (Lawler, Mohrman, & Ledford, 1992).
The improvement of quality always go with the business process, and quality improvement is the essence of total quality management. Use of total quality management is also an effective way to reduce cost, improve productivity and efficiency (Richard, David & Neal, 2000).For example, in bunker cargo transport supply chain, there is a quality management system based on specified requirements referred to SS. 524.
In addition, there is a mechanism of Key Performance Indicators (KPI), which aimed to encourage bunker suppliers to maintain a high standard of bunkering services in port including indicators of craft operations records, bunker supply records and customer feedback records, so as to improve service level to customers. Taking on the roles of Port Authority, Port Regulator, Port Planner, IMC Champion, and National Maritime Representative, MPA optimizes the supply chain comprehensively.Distribution route optimization is the best example. Standardization of process. In Singapore, there are many standards which are sets of specifications and guidelines aimed to ensure that products, services, and processes are what they supposed to be. And standards are widely used as tools to promote trade, enhance safety and health, improve productivity, reduce cost, as well as protect the environment and transfer and create technology (Robert & Juliana, 2010; Maya, 2007; Yolanda & Jesus, 2008).For example, the Singapore Standard Code of Practice for Bunkering – SS 600, is a standard specification covering the process of standard code refers to the various stakeholders such as ship owners, operators, charterers, bunker suppliers, bunker tanker operators and surveyors, whom operate in the supply chain.
With the implementation of SS 600, the rate of bunkering dispute is minimized. And the Singapore Standard for Quality Management for Bunker Supply Chain is by far the first national standard concerning quality management for the bunkering industry.In addition, research and development (R&D) is a crucial part of MPA’S strategy to encourage its maritime businesses. 2.
3 Key sustainability issues and relevant strategies The sustainable development of an industry means that the industry obtains long- term development (Abdelkader, 2010). In order to maintain its vitality, the industry has to insist on innovation constantly. And the industry has to achieve internal optimization resources, at the same time, adapt to the external environment changes (RaJul & Roma, 2012; Serafy, 1997).Rational use of natural resources and energy, ncrease industry profits and expand the scale of the industry to achieve sustainable development of the industry. In order to achieve the human survival and continued development, it is necessary to ensure that the harmony and unity of the whole society and the natural world. Both the growth of material and the sustain use of natural resources is important.
Obviously, it is necessary to achieve the sustainable economic development of the human society. In this case, a continued development of the industry ensures sustainable economic development.If the industry want to achieve profit continually, it is necessary to chieve sustainable development of the industry. For MPA, in order to let the cargo transport to achieve sustainable development need to let the enterprises in the industry to achieve sustainable development. And it needs to pay attention to the key factors as following: (1) The core competitiveness is an important support for sustainable development (Clark, 1995). For MPA, if it wants the cargo transport in the country to achieve sustainable development, it must help to discover and develop the core competitiveness in the cargo transport industry.The core competitiveness of nterprises is a unique ability. It means that they are better than the competitors in the design, development, production, management, marketing, service and other one or two or several links.
Of course, it is not easily imitate and beyond. In the nature, the core competitiveness of enterprises is a unique ability to outperform competitors. It is expressed as the capacity for continuous innovation, a unique corporate culture, continuous learning ability and strong practical ability. The company who has strong core competitiveness is not easy to lose the competition.And it cannot easily be liminated by society.
(2) The unity of the innovative power and control guarantee the sustainable development effectively. Innovative means that the company integrates some elements and achieves additional value in the face of the pressure of market competition and market opportunities (Parris & Kates, 2003). Reaching an optimum state is the purpose of innovative. Control means that the company makes the relevant factors affecting the production and development in the desired state in the national legal regulations, social ethics, moral and cultural norms.Along with the riving force of sustainable development of enterprises. The companies who have higher innovative enterprises and only be possible in the constant innovation activities can achieve the goal of sustainable development (Haas, Levy & Parson, 1992). But the innovation activities of enterprises must be under the effective control.
Otherwise, some short-term behaviors of the company will affect the smooth progress of the long-term implementation of the strategy and sustainable development. Only when innovative power and control achieve unity, an enterprise can achieve the goal of sustainable development. ) Developing new dominant business constantly play an important role for sustainable development. Every business has its own dominant business scope. Within this range, the companies continue to expand the production scale, improve profitability and meet the needs of production and development (Corinne, 2012).
But at different times, the change of environment and conditions will make industry average profitability different. The changes will have an impact on the leading enterprise business leading to the lower level of profitability. So it will affect the production and development.
Under the uidance of the concept of sustainable development, the company should foresee the adverse situations that may occur early. According to the timing conditions and actively explore new leading business. It will be useful to ensure the steady increase of the company’s overall level of profitability and the continuous development of enterprises. (4) The improvement of the natural environment and the development of social harmony are important parts of sustainable development. Sustainable development of enterprises, the improvement of the natural environment and the development of society rely on each other (Arrow, 1995).Only in times of favorable natural environment the company can achieve long-term development. In a heavily polluted, depletion of natural resources Environment, companies have lost the basis of survival and development.
The relationship between corporate sustainability and social development follow the principal. Only through full attention to social benefits, the brands of the company will be improved and the intangible assets will be added. If MPA want the cargo industry to achieve sustainable development, it needs to consider the impact of the international environment.None can grasp and control he change of International Environmental. MPA need to take the appropriate strategy to deal with the changes in the international environment. In the face of a variety of complex factors in the world, MPA can adopt some measures: First, the logistics management should be flat. So the company can adjust their behavior timely.
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