Critical Analysis of Train Derailments in Canada through Process Safety Techniques and Insights into Enhanced Safety Management Systems

Canada’s rail transportation network is a critical part of Canada’s integrated supply chain which connects industries, consumers, and resource sectors to ports on the Atlantic and Pacific coasts. One transportation activity that is essential to most industries, especially oil and manufacturing, is the rail transport of dangerous goods (DG). Although rail transportation of DG is beneficial to Canada’s economy, not paying attention to the safe transportation of these types of goods can have irreparable effects on the economy, human lives, and the environment. Recent rail accidents, such as Lake Wabamun in 2005 and Lac-Mégantic in 2013, have shown that there is still room to increase the safety of transportation of DG by rail through improving railways’ safety management systems (SMS). As a result, investigations to increase the safety of rail transportation of DG have been started. This work is part of these initiatives focusing on enhancing railways’ SMS, particularly DG main-track train derailments. The current study applied detailed root cause analysis (RCA), the bow tie analysis (BTA), and incident databases to identify the main causes and consequences of these types of accidents (2007–2017). Then, the relationship between these factors and gaps in SMS elements were identified and the frequency of each factor was investigated. The results showed that the main gaps are related to process and equipment integrity, incident investigation, and company standards, codes, and regulations. Furthermore, some useful recommendations are presented to improve the management of each SMS element and reduce these gaps.

Cost-based transfer pricing with the existence of a direct channel in an integrated supply chain

Purpose This study aims to analytically explore the economic role of transfer pricing in a vertically integrated supply chain with a direct channel, specifically when it uses cost-based transfer prices, as is frequently observed in management practices. We compare two representative transfer pricing methods: full-cost and variable-cost pricing. Although many firms open a direct channel, which affects the optimal decision on transfer prices, prior literature has not considered this case. Design/methodology/approach We demonstrate the results using a non-cooperative game theoretical approach. Findings The results show that full-cost pricing is more profitable than variable-cost pricing when the fixed cost allocation to the marketing division is low, contrary to the established position in prior studies, from which I select their benchmark case. Moreover, we obtain a counterintuitive result, whereby, the firm-wide profit of a vertically integrated supply chain increases with fixed cost allocation. Originality/value This study considers the direct channel and internal transfer pricing in a vertically integrated supply chain, while prior research only considers one or the other. This model suggests an optimal choice of cost-based transfer pricing in managerial decisions. In addition, the authors demonstrate the positive effect of increasing fixed cost allocation, which prior management studies do not show. The findings of this study have implications for managerial practice by providing insights into supply chain design and showing that firms should consider the competition between channels when making decisions about transfer pricing methods.

Development of integrated supply chain system in manufacturing industry

This paper presents the model of integrated halal supply chain in food manufacturing industries. There is global increase in the demand for halal products by Islamic countries as well as by non-Islamic countries. Halal food consumers are presently more alert and concern about the integrity of Halal status. Furthermore, they also curious about all the activities involved along the supply chain whether the products that they purchased were truly halal from the beginning to the end. The need of halal supply chain is crucial in ensuring that the concept of halal is not only applicable for the food itself but also for the whole supply chain starting from the farm to the customer. This project attempts to develop an integrated halal supply chain system that can be used by food manufacturers that are developing halal products for better productivity and quality. The identified supply chain components are human resources, process, environment, accreditations, logistics and traceability.

Logistics and increasing the competitiveness of the company

Introduction. In today's rapidly changing external environment, a stable profitability and a high level of competitiveness of national enterprises' products is only possible if an effective logistics cost management mechanism is formed, which ensures the optimal value of these costs in production conditions. Researched scientific and practical issues of competitiveness, as well as logistics, A.A. Mazaraki, І.М. Semenenko, Р.А. Fatkhutdinov, I.N. Gerchickova, B.А. Anikin, J. Schumpeter, D.J. Bauersox, D.J. Christopher, M.R. Linders, D. Waters, J.B. Haywood, et.al. The purpose of the paper is to reveal the importance of logistics in improving the competitiveness of the enterprise, analysis of its logistics potential, development of recommendations for the use of logistics tools in the practice of the enterprise. Results. This concept forms the basis of an enterprise's economic strategy: the logistics process is used as a tool in the competition. In today's environment, one of the main problems of domestic enterprises is the lack of logistics strategies designed for integrated supply chain management in order to optimise their resources. Unfortunately, there remains a lack of capacity to implement logistics approaches in their operations and to develop a logistics strategy in line with their own logistics potential. The importance of strategic planning in logistics is due to the possibility of developing strategic development programmes for companies, aimed at the optimal organisation of flow processes and increasing their competitiveness. Introduction of logistic approaches into the practice of PJSC “Odeskabel” and development of logistic strategy according to the own logistic potential can significantly reduce expenses of the enterprise and increase its competitiveness. Conclusion. The importance of strategic planning in logistics is due to the possibility of developing strategic development programmes for companies, aimed at the optimal organisation of flow processes and increasing their competitiveness. Introduction of logistic approaches into the practice of PJSC “Odeskabel” and development of logistic strategy according to the own logistic potential can significantly reduce expenses of the enterprise and increase its competitiveness. The results of the authors' researches and achievements of the leading scientists have allowed recommending a number of directions of reducing the logistic costs of PJSC “Odeskabel” in order to increase its competitiveness.

Vertically Integrated Supply Chain of Batteries, Electric Vehicles, and Charging Infrastructure: A Review of Three Milestone Projects from Theory of Constraints Perspective

This research utilizes case study methodology based on longitudinal interviews over a decade coupled with secondary data sources to juxtapose Tesla with two high-profile past mega-projects in the electric transportation industry, EV-1 and Better Place. The theory of constraints serves as a lens to identify production and market bottlenecks for the dissemination of electric vehicles. The valuable lessons learned from EV1 failure and Better Place bankruptcy paved the way for Tesla’s operations strategy to build gigafactories which bears a resemblance to Ford T mass production last century. Specifically, EV1 relied on external suppliers to develop batteries, while Better Place was dependent on a single manufacturer to build cars uniquely compatible with its charging infrastructure, whereas Tesla established a closed-loop, green, vertically integrated supply chain consisting of batteries, electric cars and charging infrastructure to meet its customers evolving needs. The analysis unveils several limitations of the Tesla business model which can impede its worldwide expansion, such as utility grid overload and a shortage of raw material, which Tesla strives to address by innovating advanced batteries and further extending its vertically integrated supply chain to the mining industry. The study concludes by sketching fruitful possible avenues for future research.