Improving Tokyo-to-Seoul Intermodal Links
Ideally, freight and product in transit along supply chains will move seamlessly from origin to destination no matter which proportion of modes (transport vehicle) are used or through which nodes (storage or processing location) that freight or product passes through. Obviously, the ability to maintain seamless movement breaks down due to several variables--distance, geography, freight and product complexity, amongst many others.
How firms managing supply chains adapt to the above variables depends on the quality of their supply chain architectures. As mentioned here many times before, these architectures can essentially be reduced to five: physical, financial, informational, relational and innovational. Usually, these architectures develop sequentially in the order above towards the point where a supply chain attains high performance, although this is not necessarily a given. The innovational architecture is important for the purpose of maintaining high performance through the resilience achieved in the face of continually evolving external and internal operational environments. The innovational architecture ensures that the other architectures are continuously reviewed for improvement and iterative or transformative adaptation.
With this framework, we can better approach available information on the development of a particular supply chain. Today, I want to focus on an article out of Logistics Japan on 9/18 that highlights changes in Tokyo-Seoul supply chain links, initiated by JR Freight. This article is titled "Cooperation with Korean Rail Public Corporation: Linking Tokyo to Seoul in 4 Days, Cheaper and Faster" and written by a Mr. Takagi. Rather than translate the entire article, this time I will highlight those areas that illustrate improvements in the architectures mentioned above.
Physical Architecture:
"In general, the Tokyo-Seoul link will be a continuous rail-sea-rail link...
"This will be the first case in which JR Freight 12-foot containers will be utilized by a rail company overseas, starting from January 2007...
"The idea is to utilize the modal combination of rail and sea to provide a cheaper small lot, door-to-door service between Japan and Korea...
"The primary nodes in transit will be at Fukuoka on the Japan side and Pusan on the Korea side, linked by sea freighters between those two cities...
"JR Freight containers will be joined in threes and placed on 40-foot flat truck platforms for sea shipment and connections on the Korea side...
Financial Architecture:
"The two companies will seek ways to jointly implement the management of charging fees and fee collection...
Informational Architecture:
"The handling and transmission of customs procedures and information will be outsourced by JR Freight to Nittsu on the Japan side, while also strengthening sales links...
Relational Architecture:
In addition to the relationship established above with Nittsu, the obvious joint-management established with Korea Rail is the overall, governing architecture: "While both companies hold joint-meetings with lead managers, the service details will be further developed. Negotiations will also be held with shipping companies."
The article also mentions that JR Freight will set-up a similar system with COSCO in China, linking Tokyo with Shanghai. In this case, the operations would begin in March 2007. The innovational architecture in this case, I think, would go back to how JR Freight is trying to think outside the box and review the reach of its services outside Japan. The below document illustrates the Tokyo-Seoul link visually:
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