
LogisticsandInformation Systems
Logistics and Information Systems

Logistics Information FlowCoordinationactivitiesStrategicCapacityLogisticsManufacturingProcurementplanplanplanplanplanInventorymanagementOperationalactivitiesOrderOrderDistributionTransportationProcurementmanagementoperationsand shippingprocessing2
Logistics Information Flow 2

Examplesof InformationFlowsPurchasing order informationShipperConsigneeForecast/POSdataAdvance ship noticeFlowofgoodsLogisticschannelValidPOAdvancedimmediatePickupnotificationPickup informationAccept/RejectCarrler(s)Bill ofAssignedladingroutingShipmentShipmentstatusstatusInvoicelFreightdetailsFreightinvoiceRemittanceadviceRemittanceadvice
Examples of Information Flows 3

Logistics Information Systems.Definition An interacting structure of people, equipment,and procedures that together make relevantinformation available to the logistics managerfor the purposes of planning, implementation,and control
Logistics Information Systems Definition ◦ An interacting structure of people, equipment, and procedures that together make relevant information available to the logistics manager for the purposes of planning, implementation, and control. 4

Technology Impacts on SupplyChainDisintermediationWholesalers/ManufacturersRetailersSuppliersCustomersDistributors+Flowsofproducts(a) Simplified Supply ChainFlowsoffunds+FlowsofinformationWhdlesalersSuppliersManufacturersRetlersCustomersDisthb&tors+Flowsofproducts(b) Supply Chain with DisintermediationFlowsoffunds+Flowsofinformation5
Technology Impacts on Supply Chain Disintermediation . 5 (a) Simplified Supply Chain (b) Supply Chain with Disintermediation

Chronicle of Internet MilestonesIntelligentmarketplaces(aggregationofcommunities)aCommunities(buy. sell aggregate)Exchange(buy and sell)Website(homepage)1996Time20046
Chronicle of Internet Milestones . 6

Major Drivers of the Connected Economy:Customer-CentricValueWebModelExchanges Allows supply chain participants to buy andsell needed goods and services. Limited coordination or collaborationTrading Communities Hubs of suppliers, customers, manufacturers,distributors, and wholesalers broughttogether in an Internet interchange platform
Major Drivers of the Connected Economy: Customer-Centric Value Web Model ◦ Exchanges Allows supply chain participants to buy and sell needed goods and services. Limited coordination or collaboration ◦ Trading Communities Hubs of suppliers, customers, manufacturers, distributors, and wholesalers brought together in an Internet interchange platform. 7

MajorDriversoftheConnectedEconomyl7Customer-CentricValueWebModelIntelligent Marketplaces - Four elementso Tools - Network optimizing software toolsused. Technology - Equipment is available to allparticipants. Integration - Greater collaboration andseamless integration of supply chain processes.Flexibility - Trades, transactions, andsolutions will include operational flexibilitycomponents.8
Major Drivers of the Connected Economy17: Customer-Centric Value Web Model Intelligent Marketplaces – Four elements ◦ Tools - Network optimizing software tools used. ◦ Technology - Equipment is available to all participants. ◦ Integration - Greater collaboration and seamless integration of supply chain processes. ◦ Flexibility - Trades, transactions, and solutions will include operational flexibility components. 8

ContemporaryLogisticsInformationTechnologiesBar codingo Most commonly used automatic identificationtechnologyConsistency of this technology importantfactor in efficiency and effectiveness.RFID - The technology of tomorrowElectronic Data Interchange (EDI) - B2Bcomputer-to-computer exchange ofbusiness data in a structured,machine-readable format
Contemporary Logistics Information Technologies Bar coding ◦ Most commonly used automatic identification technology ◦ Consistency of this technology important factor in efficiency and effectiveness. RFID – The technology of tomorrow Electronic Data Interchange (EDI) - B2B, computer-to-computer exchange of business data in a structured, machinereadable format. 9

EDlversusTraditional Methods0000D口OBuyer'sSeller'sOrdercomputercomputerentryQ.0Q0EDIflowPurchasing口口口口Buyer'sSeller'spurchasingorderentryPurchasingapplicationapplication10
EDI versus Traditional Methods . 10