Measurement challenges of supply chain performance in complex shipping environments

Abstract

Purpose Logistics service performance measurement (PM) is a fundamental activity pertaining to the achievement of logistics goals and the improvement of services. The choice of logistics PM criteria depends on stakeholder goals and expectations, including logistics service providers, customers and government and regulatory institutions. PM is especially challenging in areas where high values are at stake, several actors are involved and uncertainty about cause-and-effect relations is high. This paper aims to examine the measurement of performance in offshore oil and gas logistics, which has unique characteristics such as a supply chain (SC) exposed to a harsh environment, the presence of several independent carriers and a highly specialised and costly set of vessels involved in long-distance transport legs. Design/methodology/approach The study is designed as a multiple case study of two Norwegian shipping companies and two international oil and gas companies. Data were collected from several parts of the offshore service SC in several Arctic oil and gas fields. Findings This paper sheds light on the performance of the SC and presents key performance indicators for logistics operations. It concludes that the measurement of SC performance must be context-specific and emphasis needs to be placed on the degree of uncertainty and inter-dependency related to the SC in question. Originality/value The study suggests a list of context-specific key performance indicators for offshore logistics with a special emphasis on the peculiarities of a harsh operational environment.

Green Supply Chain Management, Environmental Degradation, and Energy: Evidence from Asian Countries

“…Mariano et al [42] integrated logistics performance index (LPI) and carbon dioxide emission index, constructed a low-carbon logistics performance index, and ranked 104 countries to determine the countries with the best performance in low-carbon logistics. Panayides et al [43] investigated the performance measurement of offshore oil and gas logistics and put forward a series of key performance indicators of offshore logistics aiming at specific environment, with special emphasis on the particularity of harsh operating environment. In addition, Tse et al [44] also pointed out that artificial intelligence technology has gained great attention in improving the flexibility of supply chain management and logistics operation and can enable the logistics industry to achieve high-level service performance.…”

Supply chain performance for a traditional shipbuilding industry in Indonesia

“…The literature discusses general shipbuilding industry performance is sparse. Panayides et al (2018) presented key performance indicators (KPIs) for offshore logistics with a special emphasis on a harsh operational environment. Sanderson and Cox (2008) found that the design and build process used in the shipbuilding industry introduces radical unpredictability into the demand for functional components of naval vessels.…”

Benchmarking of Singapore maritime cluster: the role of cluster facilitators

“…This interest could be observed with the recent developments in the topic of ranking cities and locations within the maritime cluster context (Verhetsel and Sel, 2009; Jacobs et al , 2011; Zhang and Lam, 2013a, b). The rankings use diverse set of indicators, with benchmarking reports produced by research organisations, economic consulting organisations, maritime industry organisation and major global consulting organisations (Mudambi, 2008; Narula, 2002; Panayides et al , 2018). These international studies and publications of ranking maritime locations have garnered widespread international business (IB) media coverage, reflecting the interest of business communities on this subject, as multi-national enterprises (MNEs) continue to search and source for locations that will contribute to their own competence creation through their subsidiaries (Meyer et al , 2011, Mudambi and Swift, 2012; Narula, 2002) and hence build competitive advantage by integrating the knowledge attained at its subsidiaries with its international operations (Andersson et al , 2014).…”