A Study On Spare Parts Management Of Container Terminal Based On Supply Chain Management

The inventory management of spare parts at container ports forms an important part of the port facilities management. Container ports need to consume a great number of spare parts of the highest safety standards, and yet the random and unpredictable nature of the demands for spare parts at container ports calls for management solutions taking into consideration the management of supply chain.Supply Chain Management (SCM) is a new management concept from the 1990s. It combines the management of supply chain with inventory management to address the management of spare parts inventory and to develop an operation model whereby the inventory is managed by supplier or joint inventory management is implemented. This ensures proper inventory make-up of spare parts and reduces the costs. From the academic perspective, the study of spare parts management combined with supply chain management represents improvement on the theory of spare parts management.This thesis first summarizes the rules and features of the demand for spare parts at ports by looking into the application of spare parts at a number of container ports in Xiamen in recent years. At the same time it categorizes the spare parts used at container ports into fast-flowing spare parts and slowly-flowing spare parts according to relevant concepts and provides management solutions for them respectively, taking into consideration the theory of supply chain management. In the case study, this thesis looks into the challenges that commonly exist in managing spare parts at the container ports in Xiamen and proposes solutions. In respect of fast-flowing spare parts (such as steel wire, lubricant) that are featured by fast consumption, large capital input and big volume, the thesis suggests the inventory be managed by suppliers. As to slowly-flowing spare parts (such as PLC and bearings) for which demands are unpredictable and supplies are short, it proposes joint management. In light of the fact that spare parts used at container ports are usually of the same nature and thus interchangeable, it also proposes cross-industry management jointly implemented with the participation of suppliers. The application of inventory management combined with supply chain management at Xiamen's container ports will address the challenges faced by spare part management at the port and optimize the inventory make-up of spare parts, whereby effectively reducing the inventory costs. It may also shed some light on the inventory management of spare parts of other industries.