Chapter 5: Logistics Information Systems pp Data. Communications. Tools. E-Commerce & Logistics.

Data Required Collect data on: –Customers (location, orders, etc.). –Products (transportation and storage characteristics). –Transportation options. –Warehouse/Inventory options. –Service. Data sources: –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: –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 Planning51% Transportation Management43% Order Management38% Warehouse Management37% Demand Planning & Forecasting36% »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