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Chapter 5: Logistics Information Systems

Chapter 5: Logistics Information Systems. pp. 122-131 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.

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Chapter 5: Logistics Information Systems

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  1. Chapter 5: Logistics Information Systems pp. 122-131 • Data. • Communications. • Tools. • E-Commerce & Logistics.

  2. 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.

  3. 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).

  4. 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.

  5. 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.

  6. 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).

  7. 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.

  8. Future Investments • Percent of companies investing in each area: • Supply Chain Planning 51% • Transportation Management 43% • Order Management 38% • Warehouse Management 37% • Demand Planning & Forecasting 36% • Source: AMR Research 2002

  9. 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.

  10. 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).

  11. 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

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