Cargo Service Dynamics and Service-Oriented Architecture in East Asian Airports

This chapter examines the effects of primary production and key economic factors on the cargo traffic in the East Asian airports between 1999 and 2005. Through econometric and cluster analyses, results in this chapter found a dramatic increase in the relative importance of physical capital to human capital. More specifically, adequate provisions and utilizations of physical facilities in landside operations appear to be more significant driving forces for an airport’s cargo traffic performances compared to those of airside operations. In spite of the greater importance that the East Asia airport industry has attached to cost-effective operations in the recent years, airports may no longer be able to rely on size for a sustainable competitive edge with the reductions in the returns to scale. Meanwhile, there is still a close direct association between a nation’s economic development and the volume of cargo traffic at its airport.

Lifecycle Management of SLAs for Service Enterprises

Service level agreement (SLA) is becoming an increasingly sought-after topic in recent years, as complex logistics and service chains span across geographical boundaries in the lights of globalization and new technological developments. This chapter introduces the reader to the state of the art lifecycle management of SLA for service enterprises, which covers stages of terms optimization, contract drafting and compliance tracking. In particular, the author identified deficiencies in the area of term optimization and outlines several R&D tracks that would lead to the development of industry-strength SLA optimization capabilities. An initial version of a SLA optimization toolset coded-named SLA-OASIS is reported, in the context of a telecom service, to illustrate such a concept. In addition, some out-of-box toolsets for drafting SLA contracts and tracking SLA compliance are also reviewed.

Prediction Reliability of Container Terminal Simulation Models

In this chapter attention is focused on the container terminal optimization problem, given that today most international cargo is transported through seaports and on containerized vessels. In this context, in order to manage a container terminal it is sometimes necessary to develop a Decision Support System (DSS). This chapter investigated the prediction reliability of container terminal simulation models (DSS), through a before and after analysis, taking advantage of some significant investment made by the Salerno Container Terminal (Italy) between 2003 and 2008. In particular, disaggregate and an aggregate simulation models implemented in 2003 were validated with a large set of data acquired in 2008 after some structural and functional terminal modifications. Through this analysis it was possible to study both the mathematical details required for model application and the field of application (prediction reliability) of the different simulation approaches implemented.

New Profession Development

Adding engineering discipline to defining and managing the operation of business processes has become a truism although results of practical application have been mixed. This chapter argues that an obstacle to business process (re)engineering is the lack of a business process engineer role with an associated professional education, tools, and community. The main argument derives from an analysis of the domain structure for system design and comparison with existing practices in manufacturing engineering. We observe that: (1) At present there does not exist a profession of business process engineers. Their role in a firm is filled, on an ad-hoc basis, by business line personnel, information technology analysts or architects, and/or management consultants; (2) There is an increasingly critical need to master the subject of business process engineering for an individual firm as well as the general U.S. industry; (3) Other professionals, while having their own specialized skills valuable to a firm, do not necessarily have the optimal skill set for business process engineering. We therefore conclude that there is an urgent need for a professional business process engineer. We discuss the skills required of this profession and briefly describe a first course offered at a university on this subject. We propose that academic institutions should seriously consider such a new program today.

Logistics Services in the 21st Century

Due the cross-functional character of logistics tasks and the cross-organizational structure of most logistics chains, the logistics service industry is strongly affected by business dynamics. Since the 1950s, this industry has experienced a variety of changes; While logistics was traditionally concerned with the fulfilment of functions like transportation and warehousing, modern logistics service offerings also encompass services like network design and carbon footprint assessment. But not just the scope of logistics services has changed. Additionally logistics business models developed from 1PL to 4PL, indicating a shift from the provision of execution tasks to tactical tasks and from fragmented logistics solutions to integrative logistics solutions for complete logistics chains. As a consequence, logistics service providers at the beginning of the 21st century have many options to configure their service offerings. But which options exist to comply with the requirements in a modern competition being fought supply chain versus supply chain rather than firm versus firm? After analyzing the dynamics in the logistics service industry and the importance of logistics for an effective and efficient supply chain management, this chapter will focus on options how logistics service providers can construct single logistics services (service architecture), their logistics service program (service program architecture) and their appearance on the market (service provider architecture) in order to fulfil their role within today’s supply chains and to improve supply chain performance.

Perceived Risk Management

Purpose – To contribute to the theoretical work on service-perceived risk management of knowledge-based services (i.e. intangible and heterogeneous) and experience-based services and to suggest a framework that helps to formalize these risks and the value associated with their management, by arguing that this risk management relies on a sequence of risks (Threat, Event, Ignorance and Damage, called the TEID model) and on 3 categories of control measures (preventative, detective and protective). Design / methodology / approach – A case study research using the guidelines developed by Eisenhardt (1989) in the context of travel agency industry about how to deliver added value by selling the expertise that helps to reduce customer-perceived risks. Risk management and control process constructs were compared in order to confirm the relevance of this approach. Findings – Customers feel that travel services which are bought encompass a lot of uncertainties and annoyances (risks) about what they will be experiencing. At present customers are not willing to pay for advice that they regard as free. In order to charge and deliver more added-value, knowledge-based service providers have to make their role more tangible, aiming at reducing and managing risks. By categorizing customer-perceived risks, and by integrating control measures and assurances into their offer, providers can design new and valuable services. Service value-chains involve various providers (implicitly or otherwise) who may engender annoyance and damages as risks are a sequence of events. For their effective management risks have to be considered from the customer’s point of view as this is the only way to apply an integrated approach. Originality / value – This chapter holds the potential to contribute to extending an understanding and management capacity of customer-perceived risks of knowledge-based services. It brings into play a new framework and new risk management process. It also helps with formalizing and making tangible customer added-value.

Supplier Relationship Management in Health Care

The structural transformation of modern societies (e.g. aging of population, mobility) as well as continuously increasing market dynamics (e.g. mergers, technological advancement) induce health care organizations, more than ever, to reduce their costs while enhancing service delivery at the same time. In other industrial sectors this was achieved by optimizing cooperation, coordination, and communication particularly with regard to the supplier base. However, as the pressure to innovate will increase extensively in the next years, similar developments are becoming relevant for the health care supply chain, too. In this chapter we therefore adapt the current findings on supplier relationship management (SRM) to the health care context. We analyze theoretical foundations of SRM and explore one particular area of application in health care, namely the ordering of pharmaceuticals by hospitals. On the basis of a case study we develop a future scenario for drugs supply management and discuss potential performance and quality improvements.

Analyzing Requirements and Approaches for Sourcing Software Based Services

Increasingly, software is no longer developed as a single system, but rather as a smart combination of so-called software services. Each of these provides an independent, specific and relatively small piece of functionality, which is typically accessible through the Internet from internal or external service providers. To the best of our knowledge, there are no standards or models that describe the sourcing process of these software based services (SBS). We identify the sourcing requirements for SBS and associate the key characteristics of SBS (with the sourcing requirements introduced). Furthermore, we investigate the sourcing of SBS with the related works in the field of classical procurement, business process outsourcing, and information systems sourcing. Based on the analysis, we conclude that the direct adoption of these approaches for SBS is not feasible and new approaches are required for sourcing SBS.

Information and Communication Technology in Logistics as a Comparative Advantage

In a time, when the economic crisis is filling the news, it may seem hard to even think about improvements in terms of research and development, since there are lacking funds even for the reproduction. However, the last economic revolution was born in a crisis. Therefore it is sensible to look at the current situation as an opportunity for the next economic revolution,. bringing the economy a new cycle of development. The potentials for growth with the globalization have been mainly exploited so far, bringing considerable negative consequences into our lives and our environment that have triggered anti-globalist and ecological movements around the world. Now it’s time to think how to make things better and more humane. The main goal of this chapter is to lay the foundation for an advanced-research technological platform for logistics applications networks.

Managing Customer-Centric Information

Despite a long history of business-orientated information and communication technology (ICT) deployment, contemporary organizations continue to struggle with customer-centric implementation of new technologies that are profitable and contribute to sustainable service business success. This chapter reviews the difficulties inherent in using ICTs to manage customer-related information, and identifies the particular challenges for customer-centric deployment of ICTs. It provides a model of different levels of customer centric information use in organizations which helps understand how companies can become more customer centric in their information use. It reviews implications for future research in this emerging area and concludes that the challenges of ICT deployment and use must be addressed with an uncompromising focus on customer value as the central principle of both ICT design and deployment, and of information management in service organizations.