Despite the benefits of operations visibility and the technologies that are available today to facilitate it, this research found that there is a disconnect between the visibility that terminal operators believe they provide and the visibility that shippers feel they receive.
Stakeholders across the supply chain are investing in technologies to improve operational efficiency. But the research found that many systems that improve visibility in each node in the supply chain rarely work effectively with others. This leads to an underutilisation of the functionalities of these technologies, gaps in communication between today’s key supply chain technology systems, a high level of data silos and ultimately, decision-making based on incomplete information. This article explores these drivers and consequences in more detail.
Poor system interoperability
System interoperability refers to the ability of different systems, technologies, or applications to communicate and exchange data with one another. Terminals, shippers, and other supply chain players often use Port Community Systems (PCS), Maritime Single Window (MSW), and Trade Single Window (TSW) systems to collect and exchange information internally. However, these systems often lack interoperability and standardisation. This prevents the systems from exchanging data in real-time, making it inaccessible to stakeholders and blocking them from gaining a unified view of supply chain operations.
One of the reasons for this interoperability is due to inconsistent data formats and a lack of standardisation. Systems on either the terminal or customer side use various data standards and
protocols, which makes it difficult to aggregate data. A chartering manager who was previously working in another industry told Thetius that the lack of effort towards standardisation in maritime is concerning. It leaves data completely open to interpretation and means that people spend enormous amounts of time they don’t have trying to understand it.
Fenix Marine Services’ R&D director of terminal development, John Alvarez, told Thetius that he believes some vendors are resistant to providing or sharing data because they want to control the flow of information through their own systems. The lack of standardised protocols or tenders makes it difficult for terminal operators to enforce consistency and accountability with vendors.
He explained that having a standard or common protocol would allow terminal operators to better manage the flow of information and force vendors to comply with more structured requirements.
One port operator Thetius spoke with agreed that poor system interoperability is a major barrier for terminal operational visibility today. “There is significant potential in the data available, but interoperability prevents it from being leveraged for better decision making. A wealth of valuable information exists but it sits unused, often confined to paper, spreadsheets, or forgotten in inboxes,” he explained. Stakeholders end up implementing multiple solutions to try and exchange information with their partners, but the systems still lack interoperability, making this a costly and redundant exercise.
The next article in this series of twelve will discuss these drivers and consequences in more detail.
For further insight into the areas highlighted in this article, download our thought leadership report, The Great Divide, created in partnership with Kaleris.
