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Chapter 12 Management of Business Logistics, 7th Ed. 1

Contemporary Logistics

Information Technologies Bar coding

Most commonly used automatic

identification technology Consistency of this technology important

factor in efficiency and effectiveness.

Electronic Data Interchange (EDI)

B2B, computer-to-computer exchange ofbusiness data in a structured, machine-processable format. (Figure 12-8)

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Chapter 12 Management of Business Logistics, 7th Ed. 2

Figure 12-8

EDI versus Traditional Methods

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Chapter 12 Management of Business Logistics, 7th Ed. 3

Contemporary Logistics

Information Technologies Extensible Markup Language (XML)

Method of packing information for movement

on the Internet. May replace EDI in the future.

Data management

Handheld input devices and optical scanning

popular in data management. CD-ROMs are another data management tool

seeing increasing use.

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Chapter 12 Management of Business Logistics, 7th Ed. 4

Contemporary Logistics

Information Technologies Imaging

Both photographic and facsimile processes

are being used to image documents. Artificial intelligence/expert systems

Attempts to transfer human intelligence to

a machine. Expert systems replicate best practices of

humans to a computer-based system.

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Chapter 12 Management of Business Logistics, 7th Ed. 5

Contemporary Logistics

Information Technologies RF technology

Uses radio frequency to transmit computer

outputs, possibly from an expert system tohuman operated devices, such as, a forklift.

Optimizes quality, efficiency, and accuracy.

Onboard computers and satellite tracking

Uses systems such as GPS to track andcommunicate with mobile and/or remotevehicles.

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Chapter 12 Management of Business Logistics, 7th Ed. 6

Logistics Information Systems Definition

An interacting structure of people,

equipment, and procedures that togethermake relevant information available to thelogistics manager for the purposes ofplanning, implementation, and control.23

Examine Figure 12-9 on the next slide.

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Chapter 12 Management of Business Logistics, 7th Ed. 7

Figure 12-9

Logistics Information Systems

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Chapter 12 Management of Business Logistics, 7th Ed. 8

Logistics Information Systems:

Planning System Illustrated in Figure 12-10

Provides decision support for logistics managers

Logistics functional databases --- Table 12- 4 Comprehensive relational database that

contains the type of information needed tomake effective decisions.

Greatest use in the transportation, inventory,and product areas with warehousing andcustomer areas showing less progress.

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Chapter 12 Management of Business Logistics, 7th Ed. 9

Figure 12-10 Supply Chain Functional

Scope: Planning and Execution

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Chapter 12 Management of Business Logistics, 7th Ed. 10

Table 12-4

Trends in Logistics Data Computerization

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Chapter 12 Management of Business Logistics, 7th Ed. 11

Logistics Information Systems Types of modeling approaches --- Table 12-5

Optimization

Searches for best solution

Simulation

Replicates the logistics network

Heuristic Used for broader, non-optimum solutions

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Chapter 12 Management of Business Logistics, 7th Ed. 12

Table 12-5

Logistics Decisions

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Chapter 12 Management of Business Logistics, 7th Ed. 13

Logistics Information Systems:

Execution System

Examine Figure 12-11

Responsible for short-term, day-to-dayfunctioning of the logistics system.

Include technologies that help managewarehousing, transportation, internationaltrade, and inventory.

Many recent advances in technology and theseadvances will most likely continue to evolveand impact logistics management in thefuture.

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Chapter 12 Management of Business Logistics, 7th Ed. 14

Figure 12-11 Direct Materials

Purchasing Moves Online

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Chapter 12 Management of Business Logistics, 7th Ed. 15

Logistics Information Systems:

Research and Intelligence System Environmental scanning

Undirected viewing General exposure to information

Conditioned viewing Directed exposure to information

Informal search Limited and unstructured effort to find

information Formal search

Deliberate effort to find information relatingto a specific issue

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Chapter 12 Management of Business Logistics, 7th Ed. 16

Logistics Information Systems:Knowledge Management

To maximize the results of an environmentalscan, the logistics manager needs to consult:

Logistics area employees Channel partners

Internal audit or external consultant

Other internal logistics initiatives It is increasingly popular to dedicate a web

site to hold information from the scan.

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Chapter 12 Management of Business Logistics, 7th Ed. 17

Logistics Information Systems:Reports and Outputs System

Many logistics managers do not believe thatreports communicate effectively.

Communication occurs only if the messagekeys into the receivers values and respondsdirectly to the needs of the recipient.

Types of reports

Planning reports Operating reports

Control reports

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Chapter 12 Management of Business Logistics, 7th Ed. 18

Adapting to NewInformation Technologies

Relevant issues in the search for new technologies

Firms must have a scientific and intuitiveknowledge of customer and supplier

information requirements. Lack of coordination and integration among key

logistics and supply chain processes.

See that logistics organizational strategies move

from a functional to a process orientation. Early implementation efforts may suffer due to

poor data or the non-availability or non-sharingof future data.

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Chapter 12 Management of Business Logistics, 7th Ed. 19

Adapting to New InformationTechnologies

Relevant issues in the search fornew technologies

The organization must have the financialresources needed to assure a smooth, fullimplementation, and the people willing to acceptand use new technologies.

Firms must create opportunities for interaction and

team efforts among logistics managers and thoseothers most knowledgeable about informationtechnologies.

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Chapter 12 Management of Business Logistics, 7th Ed. 20

Figure 12-12Critical Emerging Technologies

1.19

1.32

1.54

2.10

2.67

3.68

Modeling/Simulation

Knowledge

Management

Automatic

Transaction System

Groupware

Internet/WWW

E-commerce

Level of Criticality

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Chapter 12:Summary and Review Questions

Students should review their knowledge of thechapter by checking out the Summary and Study

Questions for Chapter 12.

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End of Chapter 12 Slides

Logistics and Supply ChainInformation Systems