Assignment Task
Important
Critical analysis and original thought is necessary when completing this assignment. Ensure you reference ALL sources of information and CLEARLY IDENTIFY and quote materials used in your assignment, in accordance with appropriate procedures for PLAGARISM specified by the University.
Background
In the global trade context, a large percentage of costs is experienced with inland logistics and transportation activities which also have significant impacts on environment. To be more competitive and sustainable, supply chain operations are increasingly integrated with sea ports. This has transformed the role of sea ports from handling and transhipment hubs into key supply chain integrators and logistics service providers. As the enabler of this transformation, port-centric logistics (PCL) approaches have been widely adopted. “Port-centric logistics refers to freight transportation and distribution activities that are directly related to port terminals” [2]. Through value added services and integrated logistics chains, the PCL strategy can contribute to enhancing sustainable supply chain performance.
Liverpool City Region Freeport (LCRF) is an initiative of the city of Liverpool to set up Customs and Tax Zones with special tariffs and tax benefits in a geographic local area where the Port of Liverpool is the primary customs site connecting multimodal transport and logistics services as well as manufacturing capabilities. The LCRF naturally facilitates formation of a logistics cluster in which businesses collaboratively offer logistics services. With the concentrated economic and logistics resources, which facilitate collaboration and networking in this logistics cluster at LCRF, the PCL strategy is expected to be more efficiently implemented with the support and synergy in LCFR. The PCL is therefore expected to provide more value added and efficient logistics and transport services at and around Port of Liverpool in the city region to contribute to the sustainability performance improvement.
However, the PCL approaches implemented in the region may also create problems to the logistics and supply chain operations. How to best implement the PCL strategy with location related decisions in different business context is a critical question to sustainable inland logistics and supply chain management [3]. With the case above, to answer this question would involve the analysis of the whole hinterland logistics chain and supply chain operations, connecting the Port of Liverpool to inland markets.
