The Value of ITS on Supply Chain Operations

Licentiate thesis, 2010

The main purpose of this thesis is to identify the components of Intelligent Transportation System (ITS) for freight transportation. In addition, the purpose is to show in what way the ITS affects freight transportation functions and performance. The research is conducted through identification of the information types that are valuable for the actors of supply chains and the information types that freight ITS is using or supporting. Literature in the form of books, journal papers, conference papers, doctoral theses and licentiate theses on the value of information in supply chain, transportation information systems, ITS, smart goods, traceability and their correlated terms and concepts are reviewed to create a theoretical framework for the study. Empirical studies in the form of case studies are conducted to fulfill the purpose. Interviews, reviewed documents, archival records and direct and participant observations are used as sources of empirical data. The information that are used by different actors for supporting different functions in supply chains and the level of value of the information for the actors is determined as a finding of the thesis. Also the components of the ITS for freight transportation (freight ITS) are identified. The types of information that freight ITS uses or supports frequently for the transportation operations are studied and the transportation functions and performance dimensions improved by the freight ITS are recognized. In addition, effects of using the smart goods-- as an element of the freight ITS, on traceability of goods-- as a transportation function, is identified as a finding of the thesis. This thesis creates an overview regarding applications of ITS for the freight transportation operations. It could be used as a decision support tool for transportation companies for applying ITS based on the transportation information types, functions and performance dimensions they need to support. The findings can be useful for operations managers of the supply chains and governmental authorities to understand the effects of using smart goods to manage and control their supply chain information and material flow. This thesis adds to the literature written on the value of information in supply chains, ITS and smart goods. Furthermore, the thesis contributes to the field of RFID and product traceability especially in fresh food supply chains.