A Framework for Optimising Cross-border Logistics Processes in an Industry 4.0 Environment

Goods and services flow frequently across national and state borders as global supply networks connect suppliers and customers dispersed around the world. In order to make goods available to consumers at the lowest possible prices, these networks strive for smooth and even flows across the border. The trade generated by the flow of goods and services creates employment, generates tax revenue and attracts foreign investments resulting in economic growth and prosperity for the nations and populations concerned. However, the critical performance criteria of speed, efficiency and responsiveness of supply networks are often challenged at the border by regulatory obstacles, inadequate infrastructure, slow adoption of technology and the lack of coordination among the multitude of stakeholders involved.

Containerised maritime CBL systems comprise infrastructure such as ports and logistics hubs, technologies such as container handling systems, regulatory regimes such as customs and border protection, as well as the humans operating each of these sub-systems. As such, CBL systems can be broadly viewed as socio-technical systems. At the micro level, the CBL literature focuses on optimisations for individual stakeholders, adoption of novel technologies and optimal utilisation of capital-intensive assets without due consideration for implications on other stakeholders. At the macro level, expensive infrastructure investments and information solutions such as National Single Windows proposed without delving into the nuances of the architecture and implementation of such systems. This leaves a research gap at the meso level that connect the macro and micro perspectives to arrive at an integrated solution. Furthermore, attempts to investigate CBL systems have been hampered by the lack of granular empirical data, the focus on selected segments and the lack of well-suited tools and methodologies for analysis and improvement. As such, this study aims to come up with a framework for analysis and improvement of CBL operations which will also guide the adoption of appropriate technologies.

This study identifies process-based analysis which forms the core of most of operations improvement approaches as the most appropriate for analysing and improving CBL operations. The study reveals the ability of process maps to capture different dimensions of operations for structured analysis and improvement of operations. Control, functional, informational and organisational dimensions have been discussed in extant business process management literature as process dimensions. However, this study stipulates that temporal, interactional and spatial dimensions are also required to complete the set and to comprehensively represent CBL operations. Analysis revealed that none of the existing modelling formalisms could capture these seven dimensions in a unified view. As such, the study sought to extend Role Activity Diagrams (RAD), with addendums to capture CBL processes comprehensively.