Fast Corridors: innovative customs processes and technology to increase supply chain competitiveness. The case of IKEA Italy

Customs play a crucial role in facilitating and speeding up the international flow of goods, especially in logistic nodes such as seaports or dry ports. Burdensome customs procedures can significantly affect the competitiveness of supply chains by increasing times and costs. This paper describes the...

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Main Authors: Claudia Caballini, Milena Benzi
Format: Article
Language:English
Published: Elsevier 2023-09-01
Series:Transportation Research Interdisciplinary Perspectives
Subjects:
Online Access:http://www.sciencedirect.com/science/article/pii/S2590198223001562
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author Claudia Caballini
Milena Benzi
author_facet Claudia Caballini
Milena Benzi
author_sort Claudia Caballini
collection DOAJ
description Customs play a crucial role in facilitating and speeding up the international flow of goods, especially in logistic nodes such as seaports or dry ports. Burdensome customs procedures can significantly affect the competitiveness of supply chains by increasing times and costs. This paper describes the features and benefits of the so called “Fast Corridor”, an innovative customs process and technological procedure introduced in Italy in 2015. Compared to standard import processes, the Fast Corridor streamlines the flow of import containers from ports to their inland destinations, thanks to a transparent, more economical, secure and IT-integrated procedure, making supply chains more competitive. The Fast Corridor is based on the concept of the virtual long quay, according to which the hinterland becomes an extension of the port areas. Once unloaded from ships, goods are virtually considered to be in the inland node of final destination. Route assurance from port to the destination is provided by geofencing technology, a location-based service that uses truck-mounted GPS to trigger pre-programmed actions. IKEA was the first to adopt this new procedure. Company benefits amounted to −30% in terms of customs costs per TEU, and up to −35% in terms of port-inland node transit time and dwell time for all containers, including those not using the Fast Corridor. Based on the successful implementation by IKEA, other Italian Fast Corridors were activated. This paper provides a deeper understanding of new business models and technologies in freight transport and can outline useful best practices for practitioners in the field.
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spelling doaj.art-611ca137b2d04f80bd4b163a6f6771272023-09-24T05:16:50ZengElsevierTransportation Research Interdisciplinary Perspectives2590-19822023-09-0121100909Fast Corridors: innovative customs processes and technology to increase supply chain competitiveness. The case of IKEA ItalyClaudia Caballini0Milena Benzi1Politecnico di Torino, Department of Environmental Engineering, Land and Infrastructures (DIATI), Engineering, Transport Systems, Corso Duca degli Abruzzi 24, 10129 Torino, Italy; Corresponding author.Former Customs Manager at IKEA Italia Distribution Ltd, (From 2020: Sales and Customs Product Manager Center Med Area at A.P. Moller - Maersk), ItalyCustoms play a crucial role in facilitating and speeding up the international flow of goods, especially in logistic nodes such as seaports or dry ports. Burdensome customs procedures can significantly affect the competitiveness of supply chains by increasing times and costs. This paper describes the features and benefits of the so called “Fast Corridor”, an innovative customs process and technological procedure introduced in Italy in 2015. Compared to standard import processes, the Fast Corridor streamlines the flow of import containers from ports to their inland destinations, thanks to a transparent, more economical, secure and IT-integrated procedure, making supply chains more competitive. The Fast Corridor is based on the concept of the virtual long quay, according to which the hinterland becomes an extension of the port areas. Once unloaded from ships, goods are virtually considered to be in the inland node of final destination. Route assurance from port to the destination is provided by geofencing technology, a location-based service that uses truck-mounted GPS to trigger pre-programmed actions. IKEA was the first to adopt this new procedure. Company benefits amounted to −30% in terms of customs costs per TEU, and up to −35% in terms of port-inland node transit time and dwell time for all containers, including those not using the Fast Corridor. Based on the successful implementation by IKEA, other Italian Fast Corridors were activated. This paper provides a deeper understanding of new business models and technologies in freight transport and can outline useful best practices for practitioners in the field.http://www.sciencedirect.com/science/article/pii/S2590198223001562Fast CorridorsRoad and rail transportCustoms proceduresProcess and technological innovationCost and time KPIsPort congestion
spellingShingle Claudia Caballini
Milena Benzi
Fast Corridors: innovative customs processes and technology to increase supply chain competitiveness. The case of IKEA Italy
Transportation Research Interdisciplinary Perspectives
Fast Corridors
Road and rail transport
Customs procedures
Process and technological innovation
Cost and time KPIs
Port congestion
title Fast Corridors: innovative customs processes and technology to increase supply chain competitiveness. The case of IKEA Italy
title_full Fast Corridors: innovative customs processes and technology to increase supply chain competitiveness. The case of IKEA Italy
title_fullStr Fast Corridors: innovative customs processes and technology to increase supply chain competitiveness. The case of IKEA Italy
title_full_unstemmed Fast Corridors: innovative customs processes and technology to increase supply chain competitiveness. The case of IKEA Italy
title_short Fast Corridors: innovative customs processes and technology to increase supply chain competitiveness. The case of IKEA Italy
title_sort fast corridors innovative customs processes and technology to increase supply chain competitiveness the case of ikea italy
topic Fast Corridors
Road and rail transport
Customs procedures
Process and technological innovation
Cost and time KPIs
Port congestion
url http://www.sciencedirect.com/science/article/pii/S2590198223001562
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