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Potential Value Adding capacity to logistics by utilising Geographical Information Systems Presented by Lorraine Hall Logistics Research Fellow Monash University, Melbourne, Australia Themes and Trends Geographical information systems (GIS) management information technology logistics strategic planning innovative uses in planning,modeling & reporting GIS: Defined “a computerised system for the collection, storage, manipulation (analysis), and output of information that is spatially referenced”. – (Obermeyer & Pinto, 1994) GIS: Background Use spatial referencing as organising framework can be used to display data on maps as a picture were first developed to replace conventional maps in large planning depts 1960’s onwards today can utilise increased capacities in standard desktop PCs Strategic Planning & GIS Planning is not a static event strategic planning is a continuous activity which aims to anticipate change GIS provides the means to ‘visualise’ internal & external whereabouts of key info customers, suppliers, markets etc. distribution networks, product flows can then be overlaid What if’s can also be modeled Logistics & IT: Rate of Change “not sufficient that managers become computer literate, they must now become ‘information literate’ having just mastered the art of how to get data - most still have to learn how to use data” – (Drucker, 1997) Logistics: Information Needs Focuses on the ‘time’ & ‘place’ utility GIS provides means to - interrogate, project or interpret ‘time’ and ‘place’ data now easily accessible due to PC access has lead to increased usage of once elitist tools Data a key corporate asset Companies now recognise data as a major asset - even a competitive weapon IT strategies will frequently include datawarehousing / data mining “Hallmark is better able to meet the stores’ needs by providing the right products at the right time…….” – (Marshall, 1997) Data-warehousing as an enabler to GIS Data warehousing can enable the use of data in GIS - common data to all seamlessly accessing data across functional boundaries “..up to 90% of all data held by business, is spatial data, which can be unlocked by GIS” – (Grimshaw, 1994) GIS as a synergistic information source Capable of harnessing multi-disciplinary data can turn into synergistic information facilitates collective decision making visual presentations using a common presentation tool and system parallels to MRPII, in that it forces the holistic review of data and full cooperation by default GIS already in use Many current logistics systems include GIS already - very few recognised may not be accessible to the user as such but have potential to be early recognition of GIS can avoid unnecessary duplication throughout entire organisation digitising, geocoding and field data collection are expensive ‘one-off’ costs GIS data requirements Spatial data required throughout organisations is fundamentally similar Data characteristics and customer management can lead to improved planning & decision making with GIS Opportunities for GIS in application in logistics Real-time opportunities - GPS, quicker responses improved enlightened decisions as with use of Internet; GIS presents unforeseen applications some actual & potential applications in logistics follow:- Example of Pictorial Reporting: Stage 1 Establish Pareto Zones Example of Pictorial Reporting: Stage 2 Allocating Pallet Areas Example of Pictorial Reporting: Stage 3 Thematically mapped data using pareto colour codes AVL / GPS Tracking of Vehicles A picture paints a thousand words Human beings mostly share common interpretation of a visual projection or picture less subjectivity than when reviewing lines of text or numbers - hence our use of graphs GIS using maps goes one stage further Globalisation - language barriers can be minimised by using graphics Current Logistic Trends Increasing time pressures on the supply chain GIS has the capacity to coordinate internal and external data “It is only outside the business where there are resultant opportunities and threats” (Drucker, 1997) the drive ‘to automate’ is now changing ‘to informate’, the organisation Conclusions GIS presents many possibilities with its capacity to model geographical data Natural foundation tool – temporal and spatial matches with time and place utility of logistics – cross-functional capacity provides opportunities to work collaboratively Early recognition of tools as GIS is vital Innovative use can empower logisticians Thank your for listening The End