INFORMATION AND COMMUNICATION TECHNOLOGIES

Impact of Information and Communication Technologies (ICT) on Shipping Management and Operations

Impact of Information and Communication Technologies (ICT) on Shipping Management and Operations

Introduction

In today's Supply Chain Management (SCM) practices, a successful strategy depends more and more on the performance of Third Party Logistics service providers (3PLs). Accordingly, logistics providers play a key integrative function linking the distinct supply chain elements by the management of information flows connected with the whole delivery process of goods (Turban, 2010, pp: 22).

In such scenario, Information and Communication Technology (ICT)1 is evolving one of the major drivers of alterations in the 3PL industry, impersonating new strategic challenges to shipping management and their operations. ICT developments are more and more influencing the transport and logistics service market and give rise to new organizational forms for these services. For example, the volume of electronic communication along the supply chain is very fast growing simultaneously withthe electronic exchanges of transport documentation invoices, order instructions and payments. This has conceived an increasing require to support customers supply chains requirements through an effective use of ICT (Turban, 2010, pp: 33).

The use of ICT in the 3PL industry can lead to substantial cost savings. Suchtechnologies are adept to advance business processes and interconnections with other trading partners operating in the supply chain. These systems permit the information exchange in genuine time improving the ability of planning transport and logistics activities and the level of customer service. The result is that the competitive advantage of 3PLs increasingly depends on the ability to create value for customers through ICT, since many value supplementing activities are directly or indirectly dependent on ICT applications.

Nevertheless, recent industry developments have assisted to widen the gap between large and small 3PLs. The use of ICT appears irregularly distributed amidst large and small logistics providers. In this situation the scenario that might arise is assessed by small group of leading providers which dominate the market and manage the relationships with customers and control transportation-warehousing network and information flows, while individual links are provided by a large number of small providers (Rainer, 2011, pp: 111).

From the research point of view, while the dissemination of ICT in large logistics providers has been largely enquired, there is still a lack of research in the field of small and medium dimensions in shipping management and its operations. The recent literature is nearly entirely devoted to consider ICT impacts on large companies, while there are limited empirical investigations aspiring to analyze and explain the gap in the adoption of ICT by small 3PLs (Rainer, 2011, pp: 118).

Discussion and Analysis

2. Current and future trends of ICT dissemination in Logistics and SCM

ICT are very fast becoming one of the main drivers of change, posing new strategic challenges. International literature has been reviewed to analyze current and future trends in logistics and SCM that are connected to dissemination of ICT. The review permits to distinguish the impact of ICT on the general supply chain from the effects of new technologies on the international 3PL industry ...