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 n Geographical information systems (GIS) n management n information technology n logistics n strategic planning n innovative uses in planning,modeling & reporting

GIS: Defined n “a computerised system for the collection, storage, manipulation (analysis), and output of information that is spatially referenced”. –(Obermeyer & Pinto, 1994)

GIS: Background n Use spatial referencing as organising framework n can be used to display data on maps as a picture n were first developed to replace conventional maps in large planning depts 1960’s onwards n today can utilise increased capacities in standard desktop PCs

Strategic Planning & GIS n Planning is not a static event n strategic planning is a continuous activity which aims to anticipate change n GIS provides the means to ‘visualise’ n internal & external whereabouts of key info - customers, suppliers, markets etc. n distribution networks, product flows can then be overlaid n What if’s can also be modeled

Logistics & IT: Rate of Change n “not sufficient that managers become computer literate, n they must now become ‘information literate’ n having just mastered the art of how to get data - n most still have to learn how to use data” –(Drucker, 1997)

Logistics: Information Needs n Focuses on the ‘time’ & ‘place’ utility n GIS provides means to - interrogate, project or interpret ‘time’ and ‘place’ data n now easily accessible due to PC access n has lead to increased usage of once elitist tools

Data a key corporate asset n Companies now recognise data as a major asset - even a competitive weapon n IT strategies will frequently include data- warehousing / data mining n “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 n Data warehousing can enable the use of data in GIS - common data to all n seamlessly accessing data across functional boundaries n “..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 n Capable of harnessing multi-disciplinary data n can turn into synergistic information n facilitates collective decision making n visual presentations using a common presentation tool and system n parallels to MRPII, in that it forces the holistic review of data and full cooperation by default

GIS already in use n Many current logistics systems include GIS already - very few recognised n may not be accessible to the user as such - but have potential to be n early recognition of GIS can avoid unnecessary duplication throughout entire organisation n digitising, geocoding and field data collection are expensive ‘one-off’ costs

GIS data requirements n Spatial data required throughout organisations is fundamentally similar n Data characteristics and customer management can lead to improved planning & decision making with GIS

Opportunities for GIS in application in logistics n Real-time opportunities - GPS, quicker responses improved enlightened decisions n as with use of Internet; GIS presents unforeseen applications n 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 n Human beings mostly share common interpretation of a visual projection or picture n less subjectivity than when reviewing lines of text or numbers - hence our use of graphs - GIS using maps goes one stage further n Globalisation - language barriers can be minimised by using graphics

Current Logistic Trends n Increasing time pressures on the supply chain n GIS has the capacity to coordinate internal and external data n “It is only outside the business where there are resultant opportunities and threats” - (Drucker, 1997) n the drive ‘to automate’ is now changing ‘to informate’, the organisation

Conclusions n GIS presents many possibilities with its capacity to model geographical data n Natural foundation tool –temporal and spatial matches with time and place utility of logistics –cross-functional capacity provides opportunities to work collaboratively n Early recognition of tools as GIS is vital n Innovative use can empower logisticians

Thank your for listening The End