Selected Logistics Cluster Research Projects

The Action Plan shall comprise of a comprehensive overview of Hong Kong’s modern logistics development in the past decades and a detailed SWOT analysis of Hong Kong’s position as an international logistics hub. The Action Plan shall also include recommendations on the future development of the industry with reference to the views from the logistics trade to be collected during the industry consultations, which encompassed the identified six strategic areas focusing on both infrastructure upgrading (including improving the use and supply of logistics land), as well as software enhancement (like manpower development and training).

Link to the Action Plan: https://www.tlb.gov.hk/doc/Action%20Plan%20on%20Modern%20Logistics%20Development_e.pdf

The study results were used as reference for the Government of the Hong Kong Special Administrative Region in developing necessary policies, processes, facilities and plans to serve the projected demand.

The project has won the “Smart Mobility Grand Award” in the Hong Kong ICT Awards 2019. It shows that the Centre’s innovative artificial intelligence technology and IoT management system are well recognised by the industry.

AS2 is a cloud-based service-oriented system which utilises and integrates a multitude of existing disparate data sources such as corporate systems and IoT networks. Its first phase focuses on monitoring and improving the efficiency of baggage delivery from arrival flights. Through a deep-minded map service compatible with ArcGIS and Google map, it actively delivers a view of the overall real-time situation on the apron to those using it, such as apron service operators, airlines and other airfield service teams. From this, their work can be coordinated so that the key performance indicator targets are reached and the performance of baggage delivery is improved.

A multi-dimensional dashboard service is available to manage aircraft turnaround. It provides strengthened operational visibility supported by analytics on-demand, fused data from flight arrival estimates, and the readiness of equipment, as revealed by IoT. Users are kept informed of the current status and are alerted to incidents or potential problems. The analytics services provided by AS2 are both real-time and predictive. It can present a real-time performance of resources allocation of a specific location. It can also predict the changes in a specific operational area. For example, when there is chance for delay in baggage delivery, the operator can take that into consideration in determining the next best action. The combination of the two ensures that the appropriate actions and remedies can be taken quickly in normal and unexpected situations.

Data collection will be designed to eventually enable real-time data analytics provided by cloud-based services and to provide underlining reference in the study of (1) customer behaviors, both descriptive and predictive, (2) streamlining operational efficiency with both walk-ins and online virtual orders, and (3) improving supply chain efficiency.

We believe that firms can develop benefits and competitive advantages from isomorphic IT innovations with the right beacons (processes and driving force). In this study we argue that firms can indeed become heterogeneous under institutional pressure following the right processes and making the right decisions and call this concept Heteromorphism.

We posit that IT innovations under institutional pressure can create a critical mass, where firms end up with only assets and resources. Mere assets and resources do not necessarily benefit firms, as the capability to make good use of the assets and resources is critical. We argue that firms can learn to make good use of these assets and resources once they get hands on experience with the technology in the development of capabilities that are unique. Such unique capabilities can make a firm distinctive from other firms and be leveraged to bring competitive advantages. This view is supported by recent IT innovations, effective bandwagon with high degree of confidence, that mindless adoptions are common and yet sustained competitive advantages can be subsequently created.

This study utilizes two theories with rather competing results to discuss Heteromorphism, namely institutional theory and the resource based view. We depart from the traditional institutional theory by investigating why institutional pressure does not necessarily lead to isomorphic IT innovations. Instead we study how firms can derive unique capabilities under institutional pressure through a learning process. We will first develop and theorize the Heteromorphism concept through in-depth case studies. Subsequently, a large scale confirmatory study will be designed and conducted to ensure the generalizability of Hetermorphism.

Existing e-service serves each client individually, although at any one time, there could be more than one client accessing instances of the same service. A complex e-service can now be composed by stitching together different e-services choreographed to accomplish a complicated task. A holistic view of e-service however, must take hold with a conceptualization of e-service with not limited to one, but more parties participating and/or interacting among themselves to complete the functional realization of the service. Party e-service conceptualization is proposed to highlight the collaborative nature of e-business, and at current articulation, e-service, does not address interactivity nature of multi-party business processes. Concept of party eservice considers the nature of the provider, service targets, service availability, client relationship and client interaction.

This study employs the design science approach to first establish the design theory for party e-services as 1st party and 2nd party as current practices, and 3rd party to complete the necessitated services online. The design theory will be presented as a set of principles which are grounded on existing body of knowledge in e-service and new requirements for facilitating collaborative e-business. We follow up with an architectural consideration, based on the conceptual principles, creating a design artifact as a model reference for technological innovation specification. Finally, we validate the artifact using an example of logistics shipment planning through an e-service platform only as a 3rd party e-service and not any other party e-service. Such e-service enables modern shipment planning that demands a forwarding agent not only to work closely with designated or any online shippers, logistics service providers and consignees to formulate a desirable shipment plan, but also to achieve real-time shipment monitoring, and in-process corrective actions for deviations of the shipping process.

To reach the objective, an innovative information infrastructure is to be designed to facilitate on-target visibility by plug-and-sync of parties of a RFID-enabled supply chain.

The infrastructure is designed based on the practice of the key players of a complete garment brand name supply chain (i.e. from supply accessories, manufacturing, distribution, to retailing) under IDS Group. The RFID adoption strategy and supply chain process re-engineering are developed based on a careful in-depth analysis of current practice using Supply-Chain Operations Reference-model (SCOR). Intellectual property is expected in the infrastructure design, the plug-and-sync design and implementation, and the SCOR-based RFID adoption framework and practice.

Firstly, analysis on the cargo flows and trade flows within Greater China, as well as between Greater China and overseas will be conducted. In-depth study on the nature of impacts of direct links on trade flows and cargo flows will also be investigated.

Secondly, expert knowledge on the impact of cargo flows, due to the introduction of Direct Link, from industry experts in China, Taiwan and Hong Kong will be collected and analyzed. Opinions on operational difficulties and services needed for the transition period will also be collected. Other than the development of the policy, other issues such as customs matters, documentations, logistics facilities and supports, supply chain network/hub effects that may influence the cargo flows and trade flows within Greater China will also be studied.

Lastly, selected case studies will be conducted to further understand the operations, in which the companies could have taken advantage of the policy. The characteristics of their business models, before and after the implementation of the policy, will be studied. Challenges and potential business opportunities will be investigated.

Our study helps to assist logistics industry to sustain in the drastic changes of direct links or take advantage of impending changes by repositioning their strengths and creating new service productions for the shippers.