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Constructing a logistics tracking system for preventing smuggling risk of transit containers

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  • Tsai, Ming-Chih

Abstract

This study aims to justify a systematic decision process for constructing a desirable logistics tracking system, based on information integrity risk associated. It consists of four interrelated executions of analyzing risk, assessing risk, prioritizing mitigations, and selecting mitigations. Failure Mode Effect Analysis, risk triangle, and cost-effect indicators are organized to provide a system solution, calibrated using focus group meeting and group decision process. In the empirical study, Automatic Vehicle Location system was initiated to track the container movements in a Taiwanese marine port. But the justification recommends adding four effective risk measures to finalize the system. The justified logistics tracking system is concluded to be more effective than the current manual escort in smuggling prevention, i.e. information risk reduced by 62%. Besides, direct cost saving of the carriers is secured, together with the considerable macro benefits derived from fastened physical flow and improved trade security, to increase the project feasibility.

Suggested Citation

  • Tsai, Ming-Chih, 2006. "Constructing a logistics tracking system for preventing smuggling risk of transit containers," Transportation Research Part A: Policy and Practice, Elsevier, vol. 40(6), pages 526-536, July.
    • Handle: RePEc:eee:transa:v:40:y:2006:i:6:p:526-536
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    References listed on IDEAS

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    1. Lennart Sjöberg & Jana Fromm, 2001. "Information Technology Risks as Seen by the Public," Risk Analysis, John Wiley & Sons, vol. 21(3), pages 427-442, June.
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    4. Daugherty, Patricia J. & Richey, R. Glenn & Genchev, Stefan E. & Chen, Haozhe, 2005. "Reverse logistics: superior performance through focused resource commitments to information technology," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 41(2), pages 77-92, March.
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    1. Cheng, Yung-Hsiang & Tsai, Yi-Ling, 2009. "Factors influencing shippers to use multiple country consolidation services in international distribution centers," International Journal of Production Economics, Elsevier, vol. 122(1), pages 78-88, November.

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