Efficiency of Port Operation Its Influence on Supply Chain Network Design

Abstract

Supply Chain Management is a very convoluted network that transports the material or product to the end users. The products are distributed through different channels. Ports integrate the supply chains with the consumption market and production market globally and regionally. Also port being an intermediary for supply chain network, the efficiency of port operation has a great influence on the movement of cargo. Port operational indices like average turnaround time of the vessel, average pre-berthing detention and average output per ship berth day have an impact on supply chain network design. The author makes an attempt to find out the most efficient port, among the major ports, based on the above indices, while keeping other indices as constant. The most efficient port may have a competitive advantage over other ports and could be a preferred port in the supply chain network.