SERVICES-INFORMATION

UNIT 5

Information Functionality
Logistics can be referred to as an enterprise planning network used for the purpose of information, material management, capital flows. In the words of a layman, it can be described as delivering at the right time, for the right price and in the right condition. In the modern day competitive business scenario, it includes complex information which is important to the control and communication systems of the organization. No matter the size and the area of operations of an organization, logistics information plays an important role in the achievement of the goals of the organization.
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Information Functionality
Timely and accurate flow of information is critical for an organization for mainly 3 reasons: 1. A customer expects to be provided information on order status, availability of product, delivery schedule, invoices. This he perceives as total customer service
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Information Functionality
2. Accurate and timely information greatly reduces inventory by minimizing demand uncertainty. 3. Resources can be utilized to maximum advantage when information is readily available.

Information Functionality
Information integrates logistics activities on 4 levels of functionality: 1. Transaction 2. Management control 3. Decision analysis 4. Strategic planning systems

Information Functionality
Transaction includes: Order entry Inventory assignment Order selection Shipping Pricing and invoicing Customer response service
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Information Functionality
In the transaction system emphasis in on information efficiency. Processes, are therefore well defined. A well structured flow of information enables order status information to be available to customers whenever they so desire.

Information Functionality
Management Control: It is an evaluative, tactical, intermediate focus that evaluates past performance and identifies alternatives in the areas of: Customer service measurement Productivity management Quality measurement Exception reporting
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Information Functionality
Some management control measures can be well defined but some measures such as customer service is less specific. LIS (Logistics Information System) must be proactive and capable of predicting the future.

Information Functionality
Decision Analysis: The focus here is on decisions regarding: Vehicle routing and scheduling Inventory levels and management Network facility/Location planning Most LIS application packages have a number of analytical tools to help in the analysis. The analysis is tactical and evaluative.
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Information Functionality
Since the emphasis is on effectiveness rather than on efficiency the LIS needs to be relatively unstructured and flexible with a wide range of options.

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Information Functionality
Strategic Planning: Development of Capabilities Scanning for opportunities Customer service analysis The above become points to consider when planning a strategy, which is a long term focus. The LIS must reflect on data collection that can be converted into a wide range of business planning and decision making

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Information Functionality
Information flow was used to improve transaction efficiency. In todays business environment competition is aggressive. Hence, LIS applications must focus on providing major savings in all aspects of management control, decision analysis and strategic planning components.
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Principles Of Logistical Information

Logistics is the field of study to focus on the design, control and implementation of the efficient flow and storage of goods and services and other related information from the point of origin to the point of consumption with an aim to satisfy the requirements of its existing and potential customers.
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Principles Of Logistical Information

The management of logistics involves the integration of information, transportation, inventory, warehousing, material handling, packaging and very often security. Information Systems is an applied discipline that studies the processes of the creation and operation and consequences of systems that manipulate information.
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Principles Of Logistical Information

Information Systems gathers, categorizes, stores and spreads information that is needed for the organization to both grow and prosper. LIS (Logistics Information Systems) is a new discipline that unifies logistics and information systems.

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Principles Of Logistical Information

A few principles to be followed while designing or evaluating LIS applications are: 1. Availability 2. Accuracy 3. Timeliness 4. Exception based LIS 5. Flexibility 6. Appropriate Format
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Principles Of Logistical Information

Availability: Logistics information (order and inventory status for example) must be available at all times. Customers can be responded to readily if information is made available, accessible to all staff regularly and consistently across the organization and must be regularly updated. This also helps in making and improving management decisions.
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Principles Of Logistical Information

Accuracy: LIS reports must match actual physical counts or status. Information should be accurately reflect current status and periodic activity for critical measures. Accuracy must be 99% or more. Accurate information reduces uncertainty and costs. This in turn leads to better inventory control.
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Principles Of Logistical Information

Timeliness: Besides receiving accurate information it is critical to receive it on time. Timely information helps in taking quick and appropriate action by management to resolve issues. Timely information will help rectify errors, minimize loss, enhances customer service capability.
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Principles Of Logistical Information

Exception based LIS: Information must highlight exceptions i.e. highlight problems and opportunities. This assists management to focus efforts on situations that require attention. Service improves and costs reduced. Exception based reports are great management tools since a large number of customers, products, vendors and service companies are being handled.
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Principles Of Logistical Information

Flexibility: A LIS must have the flexibility to meet the needs of both system users and customers. Customization would be greatly beneficial to specific customers. A customized report helps customer analyze and make necessary changes and keep track of costs and efficiency.
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Principles Of Logistical Information

Appropriate format: The format of the LIS report should be in a format that is easily understood by users/customers. Contain the right information. It could be a single screen or multiple screens. Graphic representation makes it easier to understand.
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Information Architecture
Class assignment

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The Role Of Information Technology In Logistics

Strong IT capabilities are an essential building block for any effective freight and logistics company. Logistics companies want unified, seamless global operationsable to move anything anywhere and flexible enough to support customers who differentiate their product offerings via specialized I need it tomorrow service. They need intelligent systems smart enough to know where every box is and to select the most efficient next step in the supply chain. Robust information technology is at the center of all operations.
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The Role Of Information Technology In Logistics

The field of logistics had to introduce innovative concepts, including modern enabling technologies, in order to cope with today's business environment Just-inTime (JIT), Quick-Response(QR), Efficient Customer Response (ECR) and enabling technologies such as Electronic Data Interchange (EDI), Global Positioning System (GPS) or Electronic Fund Transfer (EFT).

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The Role Of Information Technology In Logistics

The Just-in-time (JIT) concept focuses on the elimination of waste throughout the logistic and manufacturing system. This is done by delivering materials and components to the next stage of manufacturing just before they are to be processed and only in the quantity that will be used.
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The Role Of Information Technology In Logistics

The ECR concept, the main purpose relies on the increasing of efficiency and effectiveness of the entire chain by integrating marketing and logistics decisions and on the optimization of the co-ordination of the different links throughout the chain. The ultimate goal is, in fact, the maximization of customer satisfaction.
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The Role Of Information Technology In Logistics

The Quick-response system stresses on the need for coordination. Therefore sharing information to create transparency is encouraged.

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The Role Of Information Technology In Logistics

In logistics planning, the place of Information technology is become central. Planning and scheduling activities are enhanced and enlarged by the settlement of an appropriate IT structure. Capacity to communicate has been also drastically extended by the integration of IT systems in managing information flow, in terms of speed, quantity and reliability.
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The Role Of Information Technology In Logistics

Today's new technologies enables real time transfer of information, data file, programs, or other digital documents so that communication between distant places can be realized in real time. The highway achieves better performance than traditional informative methods.

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The Role Of Information Technology In Logistics

Information technology plays also a critical role. It permits origin, location and flow of products to be easily traced and/or tracked, so that consumer possesses complete and accurate product information.

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The Role Of Information Technology In Logistics

It is of crucial importance that organizations keep working on developing more reliable products. Also, regular verifications of the installations, control and frequent renewal of the elements will contribute to prevent eventual failure. Moreover, emphasizing secondary systems (back-up systems) may also be a solution to minimize risk of logistics failure.
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The Role Of Information Technology In Logistics

Finally, as IT associates people, creates links, and modifies drastically the way of doing business and particularly the way of doing logistics, IT installation should be thought afresh strategically, taking into account the context of application (use, function, frequency, implementation)
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The Role Of Information Technology In Logistics

IT applications can be classified from the point of view of functionality: 1.Data capture, display and organization: Record inventory, production, resource availability using automated techniques. Data may be displayed in graphic form or in a format that is easily understood by the employees.
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The Role Of Information Technology In Logistics

2. Communication: Data needs to be made available across the organization, and especially to management to enable them to make decisions. Dispatch advices about shipments, tracking of shipments, reporting stock availability are some relevant communication that needs to be transmitted regularly to within the organization and to customers.
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The Role Of Information Technology In Logistics

3. Processing: IT applications help in processing data required for making strategic decisions. Data can be analyzed for different product requirements, quantity, network destinations.

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The Role Of Information Technology In Logistics

An LIS contains five modules order entry, order processing, transportation and shipping, distribution operations and inventory management. IT helps design and implement data and solutions required for an efficient logistics operations.

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The Role Of Information Technology In Logistics

IT in logistics : Enables the move from centralized to decentralized management without loss of data. Improves speedy and timely delivery, reliability, saves cost and ensures secure transfer. Connectivity, information sharing and integration within an organization and amongst customers.

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The Role Of Information Technology In Logistics

Some specific technologies that have been used in logistics are: 1. EDI or Electronic Data Interchange 2. Bar coding and scanning 3. RFID or Radio Frequency Identification 4. Satellite communications 5. Expert systems
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Electronic Data Interchange (EDI)

Electronic Data Interchange (EDI) is the structured transmission of data between organizations by electronic means. It is used to transfer electronic documents or business data from one computer system to another computer system, i.e. from one trading partner to another trading partner without human intervention.
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Electronic Data Interchange (EDI)

EDI can be formally defined as the transfer of structured data, by agreed message standards, from one computer system to another without human intervention. It is more than mere e-mail; for instance, organizations might replace bills of lading and even cheques with appropriate EDI messages.
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Electronic Data Interchange (EDI)

EDI documents generally contain the same information that would normally be found in a paper document used for the same organizational function. For example an EDI 940 ship-fromwarehouse order is used by a manufacturer to tell a warehouse to ship product to a retailer. It typically has a ship to address, bill to address, a list of product numbers and quantities.

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Electronic Data Interchange (EDI)

Another example is the set of messages between sellers and buyers, such as request for quotation (RFQ), bid in response to RFQ, purchase order, purchase order acknowledgment, shipping notice, receiving advice, invoice, and payment advice.

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Electronic Data Interchange (EDI)

Some major sets of EDI standards: The UN-recommended UN/EDIFACT is the only international standard and is predominant outside of North America. The US standard ANSI ASC X12(X12) is predominant in North America. The TRADACOMS standard developed by the ANA (Article Numbering Association now known as GS1) is predominant in the UK retail industry. The ODETTE standard used within the European automotive industry.
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Electronic Data Interchange (EDI)

EDI formats usually contain the name of the firms and all relevant data in a structured format. EDI is fast, error-free, reliable. Documents such as purchase orders, dispatch advices can be sent through EDI. Accuracy improves. Cheaper.(no paper/reduced labor cost and telecommunication costs) Improves customer responses.
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Radio Frequency Identification (RFID)

Radio frequency identification (RFID) is a generic term that is used to describe a system that transmits the identity (in the form of a unique serial number) of an object or person wirelessly, using radio waves. Unlike ubiquitous UPC bar-code technology, RFID technology does not require contact or line of sight for communication. RFID data can be read through the human body, clothing and non-metallic materials.
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Radio Frequency Identification (RFID)

A basic RFID system consists of three components: An antenna or coil A transceiver (with decoder) A transponder (RF tag) electronically programmed with unique information

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Radio Frequency Identification (RFID)

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Radio Frequency Identification (RFID)

The antenna emits radio signals to activate the tag and to read and write data to it. The reader emits radio waves in ranges of anywhere from one inch to 100 feet or more, depending upon its power output and the radio frequency used. When an RFID tag passes through the electromagnetic zone, it detects the reader's activation signal. The reader decodes the data encoded in the tag's integrated circuit (silicon chip) and the data is passed to the host computer for processing.
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Radio Frequency Identification (RFID)

The purpose of an RFID system is to enable data to be transmitted by a portable device, called a tag, which is read by an RFID reader and processed according to the needs of a particular application. The data transmitted by the tag may provide identification or location information, or specifics about the product tagged, such as price, color, date of purchase, etc.

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Radio Frequency Identification (RFID)

There are two kinds of tags: Passive tags have fine electrical current induced in the antenna by the incoming radio frequency signal which provides enough power for the tag to power up Active tags have their own internal power source that generates the outgoing signal and are typically more reliable than passive tags.
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Radio Frequency Identification (RFID)

RFID tags are replacing bar code tags. RFID allows accurate knowledge of inventory by eliminating discrepancy between inventory record and physical inventory. It can also reduce errors. There is also a reduction in labor cost. Simplifies business processes.
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Radio Frequency Identification (RFID)

Manufacturing RFID has been used in manufacturing plants for more than a decade. It's used to track parts and work in process and to reduce defects, increase out put and manage the production of different versions of the same product. Supply Chain Management RFID technology has been used in closed loop supply chains or to automate parts of the supply chain within a company's control for years. Companies are increasingly turning to RFID to track shipments among supply chain partners.
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Radio Frequency Identification (RFID)

Retailing : Retailers such as Best Buy, Metro, Target, Tesco and WalMart are in the forefront of RFID adoption. These retailers are currently focused on improving supply chain efficiency and making sure product is on the shelf when customers want to buy it. Payment Systems : RFID is all the rage in the supply chain world, but the technology is also catching on as a convenient payment mechanism. One of the most popular uses of RFID today is to pay for road tolls without stopping. These active systems have caught on in many countries, and quick service restaurants are experimenting with using the same active RFID tags to 55 pay for meals at drive-through windows.

Radio Frequency Identification (RFID)

Security and Access Control : RFID has long been used as an electronic key to control who has access to office buildings or areas within office buildings. The advantage of RFID is it is convenient (an employee can hold up a badge to unlock a door, rather than looking for a key or swiping a magnetic stripe card) and because there is no contact between the card and reader, there is less wear and tear, and therefore less maintenance.
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Satellite Communication
Satellite communication greatly enhances logistics performance through real time communication. Improves services with fewer resources. It is a two way communication system between company headquarters and vehicles and stores.

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Satellite Communication
The Global Positioning System (GPS) is a space-based satellite navigation system that provides location and time information in all weather, anywhere on or near the Earth, where there is an unobstructed line of sight to four or more GPS satellites. It is maintained by the United States government and is freely accessible by anyone with a GPS receiver.
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Satellite Communication
State of the art technology is important, but we cannot lose sight of the most important person in the wheel, the driver hauling the load. The most effective way to bring the driver into the loop is investing in mobile satellite communication. With this new technology drivers are able to manage their time more effectively by not having to call in every hour while waiting for a load. Also, drivers can accurately view the details of the order. These factors lead to a higher level of service.

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Satellite Communication
Feature Benefit Business Value

Operations Management
Efficient Loading and Dispatch Increase Fleet Utilization Increased Fleet Capacity

Two-way Satellite Communication

Quick Response and Direction

Client Satisfaction, More Contracts

Logistics Annotations

Greater Load Status Knowledge

Quicker Asset Turnaround

Driver Management
Detect Unauthorized Use Improved Driver Behavior Reduced Risk and Fuel Savings

Theft Deterrent and Detection

More Vehicle Recoveries

Lower Fleet Costs 60

Expert Systems
Expert Systems are artificial intelligence systems which can provide expert information to decision-makers when a human expert is not available. Basically, an expert system works in a way to replace a human. An expert system is a computer program that contains stored knowledge and solves problems in a specific field. For example, A farmer could use an expert system to find out what sort of soil is best for his farm.
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Expert Systems
There are expert systems that can diagnose human illnesses, make financial forecasts, and schedule routes for delivery vehicles. Some expert systems are designed to take the place of human experts, while others are designed to aid them. To design an expert system, one needs a knowledge engineer, an individual who studies how human experts make decisions and translates the rules into terms that a computer can understand.
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Expert Systems
An expert system captures and stores logistics knowledge. This can be modified, updated. Expert systems consist of 3 components..knowledge base, inference engine and user interface. Knowledge base contains information, inference engines searches the knowledge base to identify rules that are relevant to a particular decision and the user interface facilitates the interaction between decision maker and the expert system (interprets the responses).
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Expert Systems
Expert systems improve logistics productivity and quality. In todays business environment it provides a competitive edge to the organization.

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