This article examines the theoretical and practical implications of artificial intelligence (AI) integration in supply chain management (SCM). AI has developed dramatically in recent years, embodied by the newest generation of large language models (LLM) that exhibit human-like capabilities in various domains. However, SCM as a discipline seems unprepared for this potential revolution, as existing perspectives do not capture the potential for disruption offered by AI tools. Moreover, AI integration in SCM is not only a technical but also a social process, influenced by human sensemaking and interpretation of AI systems. This article offers a novel theoretical lens called the AI Integration (AII) framework, which considers two key dimensions: the level of AI integration across the supply chain and the role of AI in decision-making. It also incorporates human meaning-making as an overlaying factor that shapes AI integration and disruption dynamics. The article demonstrates that different ways of integrating AI will lead to different kinds of disruptions, both in theory and practice. It also discusses the implications of AI integration for SCM theorizing and practice, highlighting the need for cross-disciplinary collaboration and sociotechnical perspectives.
In this study, we investigate the barriers and enablers companies face when they seek to establish a fully decarbonized supply chain from the ground up. While recent research on sustainable supply chain management has advanced our understanding of how existing supply chains can become more sustainable, there is less research on fully decarbonized supply chains that are designed carbon neutral to produce carbon neutral products. This research aims to expand that frontier by investigating the case of the emerging supply chain delivering fossil-neutral e- methanol to the shipping industry.
This chapter argues that state-owned Chinese integrated maritime logistics enterprises are about to change the power balance vis-à-vis the hitherto dominant, privately owned enterprises based in Europe. This shift, which has been actively supported as part of China’s ambitious Belt and Road Initiative, will directly affect the European Union’s common transport and competition policy. Within the larger Belt and Road Initiative, the Maritime Silk Road project can be seen as the umbrella concept for the comprehensive management of the entire supply chain between China and Europe. We discuss possible policy implications for both China and the European Union when it comes to managing the subtle balance between geopolitical considerations and efficient operations of trade and transport controlled by a few dominant actors. As part of our theoretical framework, we use two extensions of the classical obsolescing bargaining model: the one-tier bargaining model and a bargaining model of reciprocation. By combining the two models, we aspire to explain the changing nature of bargaining relations between, on the one hand, the Chinese government and its state-owned enterprises and, on the other, the private-owned European companies as a function of the goals, resources and constraints of the involved parties.
This paper describes the challenges of the maritime supply chain compared to land transport and discusses the new digital initiatives to simplify the processes and enable a better plan for the entire supply chain. First, the background is outlined with an example of the extensive admin processes in maritime transport compared to road transport, followed by a case example presenting the processes of a booking. The case study concludes that the lack of integration is costly in terms of both admin resources, as well as lost capacity on some ships and missing capacity on others. Finally, the evolution of new digital initiatives are discussed, both in general and in terms of competing “alliances” as seen in the airline industry. The paper concludes that the information exchange in the maritime industry has moved drastically in the last 3 years and that one initiative, TradeLens, seems to have gained a position as maritime standard despite a problematic start with many competing initiatives.
Ship recycling refers to the process of dismantling vessels with the purpose of extracting and recovering materials for reuse, particularly the steel. The aim of this paper is to map the supply chain of ship recycling. This exploratory and qualitative research provides a glimpse on how regulations influence the supply chain management through inter-organizational arrangements. It considers the trade-offs and combinations of financial and sustainable values that, in many ways, determine these inter-organizational arrangements. Preliminary findings show that there are conflicts of interest with the ship recycling stakeholders. Although compliance of regulations should foster better transparency in the supply chain, these regulations have not yet fully embraced social aspects, such as the fact that domestic demand and supply for steel, as well as many jobs, are dependent on this industry. On the contrary, the initiatives to regulate ship recycling might induce negative effects. This paper suggests that transaction costs analysis and the principal agency theory are two complementary theories for analyzing inter-organizational relationships in the supply chain of ship recycling.
Having the right spare part at the right time to the right place for ship maintenance to the minimal possible costs is an exigent management problem that maritime shipping companies face. This is especially challenging in bulk shipping where routes are not fixed, but subsequent port calls depend on spot market dynamics. Thus, spare parts allocation ahead in time is limited, but possible if failures rates of ship components and their timing can be foreseen, so that spare parts can be allocated to hedge against the risk of long waiting times and thus ship downtimes. Thus, monitoring the condition of components key to the ships performance is essential to the task. This can enable companies to significantly reduce operational costs of their fleet leading to a competitive advantage in a highly volatile market regarding demand and demand-driven freight rates.
However, shipping companies seem far away from applying such methods due to various challenges ranging from data gathering and cultivating an understanding of data quality needs, adaptation to move from preventive towards predictive and condition-based monitoring, and the introduction and application of decision support tools for sourcing, spare parts allocation, and inventory management.
In this paper, we investigate the current state of the art of maintenance and related spare parts logistics management for maritime shipping and discuss the application of methods to the bulk carriage market. We add practical knowledge from case companies and discuss how challenges can be overcome in providing guidelines for companies.
This article analyses contractual governance practices within the value chains of large companies based in the USA and Europe between 2012 and 2017 with focus on human and labour rights. In line with the existing scholarship, we find that the use of contractual governance for safeguarding human and labour rights is best practice among large American and European businesses. The results show that value chain contractual governance should be studied in an interdisciplinary environment taking both legal and non-legal aspects into consideration. Moreover, we detect a general positive impact of the business and human rights regulatory wave of 2010–2011 on sustainable contractual governance practices.
Most regulatory tools for low-carbon transition are jurisdiction-specific, respecting the principle of national sovereignty. Although possibly locally successful, they typically capture only scope 1 and scope 2 emissions. Value chains-related (scope 3) emissions remain largely unregulated. This is problematic, as global value chains are commonly organized across multiple jurisdictions with different climate policy ambitions. Products are often produced at different location than where they are consumed, and production-related emissions are transferred with the products. These emissions embedded in imported products amount to large volumes (e.g. in the EU estimated to about 30% of member state’s national emissions). This chapter gathers the scientific evidence on upstream scope 3 emissions and discusses the available regulatory toolbox for reducing those. Both private and public regulatory tools are represented as well as soft and hard regulatory tools, and modifications between those categories. The interactions between the various types of regulation are discussed with the aim to identify possible synergies and conflicts. The chapter takes the EU as its starting point and draws in examples from other jurisdictions where relevant.
What Is the Issue?
Sustaining long-term growth requires marine suppliers to define their pricing strategies in a holistic fashion. However, pricing is an under-managed activity in many companies. Especially when moving towards servitization, services or integrated solutions are frequently underpriced or promised at performance levels that cannot be delivered profitably.
Why Is It Important?
Pricing is one of the most important elements for all business and everything in the business works to justify the input value for a price and turn it into a profit. It therefore has a dramatic but frequently underappreciated effort on achieving profitability and keeping business thriving.
What Can Be Done?
The marine supplies industry needs radical change in pricing by thinking about customer’s needs and aligning the incentives between suppliers and customers for long-term relationship. Value-based pricing is the way forward. An intensive discussion has been made with regard to the key challenges of applying value-based pricing in the marine supplies industry. Understanding these challenges is crucial for a move towards value-based pricing and will shed light on how to tackle these challenges.
This white paper shows how small and medium sized companies (SME) involved in supply chains affiliated to the maritime industry and port industrial areas are challenged by the diffusion of technologies and managerial principles associated with Industry 4.0 with a special focus on blockchain technology. Blockchain technology creates potential for added value through transparency and auditability of data flows that arise through system decentralization, where intermediary parties such as a central authority will not store data or verify transactions. Instead of conventional workflows, the technology brings new approaches to collaboration by combining multiple parties with equality of data ownership. In doing so, blockchain technology challenges conventional rules of data ownership.
While attention on blockchain technology has been increasing, most blockchain projects are still under development. However, the technology gained ground in areas such as healthcare, governance, and supply chain management. This white paper focuses on the potentials and challenges of blockchain technology in maritime related supply chains.
Based on a discussion of industry preparedness for Industry 4.0, a taxonomy of blockchain adoption is presented. The taxonomy is based on two dimensions including: (1) the digital complexity of internal activities and (2) the degree of value chain integration between actors in the supply chain. The dimensions encompass four archetypes of behavior on blockchain adoption that are applied in the following analysis.
The potential for blockchain technology is increasingly evident in supply chain logistics and manufacturing that is often located in industrial areas such as ports. By studying blockchain potentials in Danish maritime SMEs, the findings reflect the currently limited insight into blockchain technology from the point of view of business actors. As shown in the study of three Danish supply chains, containers, seafood and recirculated plastics, there are low-hanging potentials to be realized through changes to the current technologies and systems in application.