Applications of IT

in Logistics and Supply

chain
for better delivery

Submitted by:
Sarthak Chand
38B
MBA(IB) 2015-17

While trends such as Big Data and IoT have already been adopted in the Logistics and
Supply chain, emerging trends such as Crowd-sourced logistics will disrupt the sector
The
The rising
rising digital
digital trends
trends in
in Logistics
Logistics &
&
Transportation
help
in
increasing
Transportation help in increasing
reliability,
reliability, visibility
visibility and
and productivity,
productivity,
while
while reducing
reducing labour
labour costs
costs across
across the
the
supply
supply chain
chain

Disruptive
Disruptive trends
trends such
such as
as crowdsourced
crowdsourced
logistics,
logistics, enables
enables real-time
real-time tracking
tracking
and
and improvements
improvements in
in utilization
utilization levels
levels

Big
Big Data
Data turns
turns large-scale
large-scale data
data
volumes
volumes into
into aa unique
unique asset
asset capable
capable
of
of boosting
boosting efficiency
efficiency in
in areas
areas of
of the
the
business
business including
including predictive
predictive network,
network,
capacity
planning,
route
optimization
capacity planning, route optimization
etc.
etc.

Crowdsourcing
Crowdsourcing platforms
platforms could
could allow
allow
newer
newer entities
entities from
from outside
outside the
the
industry
industry to
to grab
grab aa share
share of
of the
the market
market
from
from existing
existing players
players

The rising digital trends in Logistics & Transportation help in increasing reliability, visibility
and productivity, while reducing labour costs across the supply chain
Digital Trends in Logistics & Transportation (1/2)

Trend
Trend

3D Printing

Autonomous
Logistics

RFID /
Wireless
Sensors

Big Data

Description
Description

Impact
Impact

3D printing (3DP) represents an

opportunity to radically alter supply
chains by postponing production to the
latest point possible in the supply
chain, in order to meet individualized
demand
Autonomous logistics utilizes
innovations such as cellular transport
systems, self-steering vehicles, and
unmanned aerial vehicles (UAVs) It
offer new transport and warehousing
solutions, enhancing the efficiency of
established assets and providing
in remote
infrastructure
RFID and otheralternatives
wireless sensors
are
areas
used by organizations to provide

Carriers align their

driver and asset
movement patterns
with customers'
It can increase
freight demographics
reliability,
and
demands
operational
productivity and
elimination of human
errors
High potential of
network expansion
and
Moreenhancement
visibility in
with
less
transportation and
transportation
cost
logistics operations
and
time
Streamlines data
capture procedures
and increase
accuracy in planning
Reduces labor costs
with automated
Carriers
align their
processes
driver and asset
movement patterns
with customers'
freight demographics
and demands

autonomously more visibility in supply

chain . Allows organizations to read,
write and re-write from a significant
distance to flexible, low-cost tags that
offer greater data capacity, durability
in harsh environments and the security
of being difficult to replicate
Big Data turns large-scale data volumes
into a unique asset capable of boosting
efficiency in areas of the business
including predictive network, capacity
planning, route optimization etc.

Companie
Companie
ss

Disruptive trends such as crowd-sourced logistics, enables real-time tracking and improvements in
utilization levels
Digital Trends in Logistics & Transportation (2/2)
Trend
Trend

Description
Description

Real-Time
(MobileSynchronized)
Route
Optimization

These solutions enable real-time

communication between a routing
application and the drivers/vehicles to
track their activities and locations, and,
when necessary, to reroute them in
transit
These solutions
apply demand"on the fly"
sensing/forecasting techniques
specifically aligned with transportation
networks, hierarchies and planning
constraints. Offer robust,
transportation-specific allocation
methodologies that can translate
customer, location and product demand
into
In logistics,
crowdsourcing
reduce
lane- and
mode-specificcan
shipping
the
environmental
footprint
by
helping
demand projections
industry players make more efficient
use of available capacity and thus
lower total driven miles.
Crowdsourcing platforms could allow
newer entities from outside the
EDI
aims to
to grab
speed
theof the market
industry
a up
share
synchronization
of
systems,
reduce
from existing players
manual workload, cut down on errors,
interpret and track digital signatures,
and finally improve service levels.
Eliminates a driver/dispatcher from
having to manually key information into
the dispatch operational and billing
system

Transportatio
n
Forecasting
Solutions

Crowdsourced
Logistics

Electronic
Data
Integration
(EDI) and
Digital
Signatures

Impact
Impact
Reduces costs and
improves service in
dynamic
environments
Less-mature users
should start with
traditional routing
that are mature
Carriers align their
driver and asset
movement patterns
with customers'
freight demographics
and demands
Would offer better
rates, convenience
and real-time
tracking
It could also allow
smaller trucking
companies to
improve their
Provides
quick
utilization levels
updates, visibility and
traceability
Improved quality of
work as lesser errors
occur due to low
usage of manual work

Companie
Companie
ss

Companies are using big data analytics for predictive maintenance, RFID for tracking
vehicular traffic and IoT for streamlining logistics
Leading Practice Examples

Big Data & Analytics

Benefit

Lafarge has around 10,000 assets which operate in

a hot and dirty environment, so in order to perform
preventive maintenance on this equipment, they
need to have best practices
Lafarge uses IBM Analytics solutions to take a
predictive maintenance approach to manage costs

Benefit
Today, when a
customer calls needing
concrete, Cemex
dispatchers can
immediately verify
which truck is closest
to the construction
location and have it
there within a very
short time
RFID

Lafarge is moving
closer to its goal of
reducing corrective
maintenance to 5%
using big data and
analytics

Internet of Things
It took too long for trucks to deliver perishable
concrete across the Mexican border to construction
sites in the U.S. when a customer called Cemex with
an order
The company equipped its concrete trucks with
connected sensors and began sending them into the
areas where customers would most likely need them
based on research and realistic forecasting
regarding the status of projects
Benefit

Cimko decided to adopt a passive RFID system

with the consultation of Meyer RFID to manage
the flow of truck traffic through the Narli facility
The passive RFID system uses tags that require an
external source to provoke signal transmission
Trucks entering the Narli facility now receive a
Gen 2 EPC RFID tag operating at 866 MHz
composed of a packaged ID card

Improved the site's

capacity by 15% - 20%
and the weighing and
loading process is now
up to ten times faster
than before
The trucks carrying
the critical material for

Thank You!!