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Chapter 5: Logistics Information Systems
pp. 122-131
• Data.
• Communications.
• Tools.
• E-Commerce & Logistics.
Data Required
• Collect data on:
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Customers (location, orders, etc.).
Products (transportation and storage characteristics).
Transportation options.
Warehouse/Inventory options.
Service.
• Data sources:
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Company records.
Customers.
Published information.
Competition.
Different Data for Different Decisions
• Strategic planning requires aggregated data,
forecasts, and management input.
• Tactical planning requires more detailed data.
• Operations requires transaction based data
(orders).
ERP Systems
• ERP (Enterprise Resource Planning) systems or
legacy systems:
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Backbone of information system.
Maintains current and historical data.
Provides transaction processing.
ERP provides integrated corporate-wide system.
• Add-on software for logistics decisions: APS
(Advanced Planning and Scheduling):
– Warehouse & transportation management.
– Network design.
– Vehicle dispatching.
Communications
• EDI - Electronic Data Interchange.
– Intercompany computer-to-computer data exchange.
• Internet.
– XML, World Wide Web, Wireless.
• Radio Frequency (RF) exchange.
– Real-time two-way communication in facilities.
– RFID communicates contents of container, pallet, etc.
• Bar coding & scanning.
• Satellite communications.
– For transportation carriers & retailers.
Software “Solutions”
• Demand Planning & Forecasting.
– To forecast demand, plan replenishment and manage
inventory.
– Link to Production, Warehousing, Inventory,
Transportation, etc.
– Major effects on inventory costs and fill rate.
• Supply Chain Planning.
– To design network, locate facilities, allocate products
to facilities, determine transportation links, etc.
– Long-range strategic planning.
– Major effects on transportation and inventory (and
production).
Software “Solutions”
• Transportation Management.
– For load planning, routing and scheduling,
dispatching, driver management, international
freight, etc.
– Major effect is to reduce transportation costs.
• Warehouse Management.
– To control movement and storage of materials in a
warehouse.
– Includes inbound shipments, outbound shipments,
storage, yard management, etc.
– Major effects on inventory costs, fill rate.
Future Investments
• Percent of companies investing in each area:
• Supply Chain Planning
51%
• Transportation Management
43%
• Order Management
38%
• Warehouse Management
37%
• Demand Planning & Forecasting
36%
» Source: AMR Research 2002
Tools & Concepts
• VMI - Vendor Managed Inventory.
– Allows vendor to manage inventory at retailer.
• GPS - Global Positioning System.
– Gives real-time location of vehicles.
• Tracking and tracing.
• DSS - Decision Support Systems.
– Optimization software.
– APS: Advanced Planning and Scheduling.
• CPFR (Collaborative Planning, Forecasting and
Replenishment).
– Coordinates planning and information sharing in consumer
goods industry.
E-Commerce & Logistics
• E-Commerce impacts location, inventory &
transportation.
• Customers can deal directly with
manufacturers.
• Business-to-Consumer E-Commerce.
– May require home delivery to consumer vs.
consumer pick-up at retailer.
– Emphasis on small shipments delivered to homes.
– High service level complicates deliveries (books vs.
groceries).
Transportation Exchanges
• Links shippers and carriers electronically.
• Can be public or private.
• Spot market for excess transport capacity and
available loads.
• Examples:
– getloaded.com
– freightquote.com
– freightmarket.com