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Ho Chi Minh city University of Transport Faculty of Transport Economics Logistics Science Division *** Logistics Information System Compiled by M.Sc Nguyen Huynh Luu Phuong (Internal Use only) * Agenda: Chapter 1: Logistics Information System Overview Chapter 2: Techniques and technologies for LIS Chapter 1: Logistics Information System Overview 1.1 Some words about Logistics: ❑ What is Logistics? ❑ What does Logistics involve in? Chapter 1: Logistics Information System Overview 1.1 Some words about Logistics: ❑ Logistics management is the process of planning, implementing, controlling the efficient & effective flow of goods, services and related information from the point of origin to the point of consumption for the purpose of conforming to customer requirements 1.2 Information System: 1.2.1 Data v.s Information: Monthly Sales Report for West Region Sales Rep: Charles Mann Emp No 79154 Item Qty Sold Price TM Shoes 1200 $100 1.2.1 Data v.s Information: ❑ Data are raw facts representing events occurring in organizations or the physical environment ❑ Forms of Data: 1.2.1 Data v.s Information: ❑ Types of Data: Hard???? Soft???? 1.2.1 Data v.s Information: ❑ Information is a collection of data organized in such a way that they have additional value beyond the data themselves ❑ Process is a set of logically related tasks performed to achieve a defined outcome 1200 West 79154 100 Charles Mann TM Shoes Monthly Sales Report for West Region Sales Rep: Charles Mann Emp No 79154 Item Qty Sold Price TM Shoes 1200 $100 ❑ Information should be viewed as processed data which has been placed in a context that gives it value for specific end users 1.2.1 Data v.s Information: ❑ Data structure: 1.2.1 Data v.s Information: ❑ Knowledge is an understanding of a set of rules that are followed to convert data into information and how that information can be made useful to support a specific task Monthly Sales Report for West Region Sales Rep: Charles Mann Emp No 79154 Item Qty Sold Price TM Shoes 1200 $100 KG shoes 10000 $250 10 1.2.2 Attributes of Information Quality: 11 1.2.2 System: ❑ System is a group of interrelated components Feedback Signals Control Signals Feedback Signals Control by Management Control Signals working together toward a common goal by accepting inputs and producing outputs in an Input of Raw Materials Manufacturing Process Output of Finished Products organized transformation process 12 1.2.2 System: ❑ Efficiency Measure of what is produced divided by what is consumed ❑ Effectiveness Extent to which system attains its goals ❑ System performance standard Specific objective of the system 13 1.2.2 System: 14 1.2.3 What is Information System? ❑ An information system is a set of interrelated components that collect (or retrieve), process, and distribute information to support decision making and control in an organization 15 1.2.3 What is Information System? ❑ Components of IS: 16 1.3 Logistics Information System: Information System Logistics Design and implementation of the efficient flow and storage of goods + Design, development, installation, and application of information system A new discipline? That unifies Logistics and Information System Logistics Information System 17 1.3 Logistics Information System: Once we’ve already built a LIS, we’ll be able to: ❑ Reduce Order Processing time ❑ Facilitate receiving and shipping order process ❑ Make transport more efficient ❑ Query information immediately ❑ Track flow of goods 18 1.3 Logistics Information System: ❖ Information technology will affect the growth and development of Logistics ❖ Computers are used to support Logistics Activities ❖ Decision support system, artificial intelligence and expert system are being used to support decision making in logistics 19 1.3 Logistics Information System: 1.3.1 Functions: ❑ Data bases ❑ Planning ❑ Coordination ❑ Communication ❑ Control 20 1.3 Logistics Information System: 1.3.2 Customer Order Cycle: Customer places order Order delivered to customer Order shipped to customer Order received by supplier Order processed Order picked and packed 21 1.3.3 How customer orders enter the firm’s order processing function? Traditional Order Placement 22 1.3.3 How customer orders enter the firm’s order processing function? Computer network Modern Order Placement 23 1.3.4 Comparison of order processing systems: Level Type of system Speed Cost to implement/ maintenance Consistency Accuracy Manual Slow Low Poor Low Phone Intermediate Intermediate Good Intermediate Direct electronic Rapid linkage High investment Excellent cost, low operating cost High Characteristics of various order processing systems 24 Chapter 2: Techniques & Technologies for LIS 2.1 Electronic Data Interchange (EDI): 2.1.1 EDI Overview: Electronic Data Interchange is the transfer of business data between computer applications using a mutually agreed standard to describe the data contained in the message 25 2.1.1 EDI Overview: 26 2.1.1 EDI Overview: EDI v.s 27 2.1.1 EDI Overview: 28 2.1.1 EDI Overview: ❑ Benefits of EDI: ✓ Reduction of data entry errors ✓ Quick updates of information ✓ Cost saving & Increased efficiency ✓ Increased communications between supplier and consumer ✓ Improvements in business process ✓ Information in electronic forms is easily shared over the organization 29 2.1.2 EDI Components: ❑ Hardware & Software solution: + IBM EDI Solution ProEDI PassportXchange OpenEC Trade Link Software Covalentworks Cloud EDI Solution … 30 10 2.3 Enterprise Resource Planning (ERP): 2.3.1 Problems you may encounter: What will you if you are assigned to make some purchases? 73 2.3 Enterprise Resource Planning (ERP): 2.3.1 ERP Definition: ▪ ERP is a fully integrated business management system covering functional areas of an enterprise like Production, Finance, Accounting and Human Resource… ▪ It organizes and integrates operation processes and information flow to make optimum use of resources such as men, material, money and machine 1 74 2.3.2 ERP Main Components: 75 25 2.3.3 ERP Characteristics: ▪ Flexibility: ➢ An ERP system should be flexible to respond to the changing needs of an enterprise (customization) ➢ The client server technology enables ERP to be changed once and all components will be affected 76 2.3.3 ERP Characteristics: ▪ Modular & Open: ➢ Attachment or detachment module can’t make system shutdown ➢ Accept third party add-ons 77 2.3.3 ERP Characteristics: ▪ Comprehensive: ➢ It should be able to support variety of organizational functions and must be suitable for a wide range of business organizations 78 26 2.3.3 ERP Characteristics: ▪ Beyond the company: ➢ It should not be confined to the organizational boundaries, rather support the on-line connectivity to the other business entities of the organization 79 2.3.3 ERP Characteristics: ▪ Best business practices: ➢ It must have a collection of the best business processes applicable worldwide 80 2.3.4 Why company undertakes ERP: Integrate customer order information Standardize and speed up manufacturing process Integrate financial information Reduce inventory Standardize HR information 81 27 2.3.5 Benefits of ERP: ❑ Reduction in paper documents ❑ Improvement in timeliness of information ❑ Greater accuracy of information ❑ Improvement in cost control ❑ Faster response to customers, business operations, market conditions ❑ Better monitoring and quicker resolution of queries ❑ Achievement in competitive advantage ❑ Improvement in supply-demand linkage with remote locations and branches in different countries ❑ Unique customer database usable by all applications 82 28 2.3.6 ERP Implementation: These are key decisions that need to be made when considering an enterprise integration effort ERP or not? Factors should be considered: - Technology - Process improvements - Productivity improvements - Strategic consideration OR 87 29 2.3.6 ERP Implementation: Follow software’s processes or Customize? OR 88 2.3.6 ERP Implementation: In-house or Outsource? OR 89 2.3.6 ERP Implementation: “Big Bang” or Phased Implementation? OR 90 30 2.3.7 ERP Implementation Methodology: Several steps are involved in the implementation of a typical ERP Package These are: Identifying the needs for implementing an ERP Package Evaluating the “As is” situation of the business Deciding the “would be” situation for the business Reengineering the business process to achieve the desired results in the existing processes Evaluating the various available ERP packages to assess suitability Finalizing the most suitable ERP package for implementation Installing the required hardware and networks for the selected ERP package Finalizing the implementation consultants who will assist in implementation Implementing the ERP package 91 2.3.8 Some ERP software solution providers: 92 2.4 Global Positioning System (GPS): 2.4.1 GPS Definition: ▪ The Global Positioning System (GPS) is a utility that provides users with positioning, navigation, and timing services 93 31 2.4.1 GPS Definition: ▪ There are navigation satellite systems (may be available more in the future): Galileo GPS Beidou Glonass 94 2.4.2 GPS Components: 95 2.4.3 How it works (GPS): 96 32 2.4.4 GPS Accuracy: Sorry, wrong target 97 2.4.5 GPS Applications: ❑ Agriculture: 98 2.4.5 GPS Applications: ❑ Driver GPS Navigation: At the crossroad, make a Uturn, go straight ahead 100m, turn right and … go to the hell Sorry, I make a mistake.!!! 99 33 2.4.5 GPS Applications: ❑ Military tracking application: Fire at Will!!! 100 2.4.5 GPS Applications: ❑ Precise time preference: 101 2.4.5 GPS Applications: ❑ Mobile satellite communication: Black hawk call Eagle, you copy? We are under attack 102 34 2.4.5 GPS Applications: ❑ Emergency and Locational Based service: Where are you, darling? I’m… I’m at work… Hurry up! I can’t wait longer 103 2.5 Bar Code: 2.5.1 Barcode overview: ▪ A barcode is an optical machine-readable representation of data relating to the object to which it is attached ▪ There are main types of barcode used in many fields nowadays: ✓ 1D barcode ✓ 2D barcode 104 2.5.2 1D Barcode: • 1D Barcode was mentioned in “Goods in transport” subject This slide is just for a short review Quiz What is the function of barcode??? 105 35 2.5.3 2D Barcode: • 1D Barcode has some disadvantages To find the solution to this problem, 2D Barcode was invented 106 2.5.3 2D Barcode: • As with 1D codes there are lots of variations of 2D codes including QR Code, Color Code, EZcode, Aztec code, Bullseye, MaxiCode, 3-DI, Shot Code and SemaCode… 107 2.5.3 2D Barcode: • A typical 2D Barcode format: ASCII code for w: 119 (decimal) 108 36 2.5.3 2D Barcode: • Storage capacity: The amount of data that can be stored in the QR Code symbol depends on the data type, version, and error correction level The maximum storage capacities, for instance, occur for 40-L symbols Numeric only Max 7,089 characters (0, 1, 2, 3, 4, 5, 6, 7, 8, 9) Alphanumeric Max 4,296 characters (0–9, A–Z [upper-case only], space, $, %, *, +, -, , /, :) Binary/byte Max 2,953 characters (8-bit bytes) (23624 bits) Kanji/Kana Max 1,817 characters 109 2.5.3 2D Barcode: • Error correction: use the Reed–Solomon error correction algorithm with four error correction levels They are: Level L (Low) 7% of codewords can be restored Level M (Medium) 15% of codewords can be restored Level Q (Quartile) 25% of codewords can be restored Level H (High) 30% of codewords can be restored 110 2.6 Applications: • Let’s read this comic strip One day, A furniture trade show turns up by Mr.NHLP being held at large convention center He decides to escape from QL school time and goes to expo He bypasses the manual ticketing line easily by his tablet with NFC technology while other people are tired of queuing for ticket 111 37 2.6 Applications: Entering the room, he doesn’t know which place he should visit first He goes to instruction map and takes his tablet near the tag barcode Instantly, he receives a e-map on his tablet He enters the keyword that he’s interested in and it shows him the places with red dots he should visit 112 2.6 Applications: He sees some new chairs and he is considering buying it By scanning hanging tag barcode, he download e-brochure about that chair immediately onto his tablet 113 2.6 Applications: After much heart-searching, he decides to choose a luxury chair with unbelievable price – 40 million VND He sees a tag barcode below the chair image That sign tells “Order now” By scanning this tag, he is able to quickly place his order with an easy way 114 38 2.6 Applications: He goes home with a satisfied smile on his face He is right to escape from school time, It’s worth doing it (Don’t tell this story to anyone otherwise he’ll be fired) 115 39 ... ▪ NFC Specifications: ✓ Data transfer rate: 224 kbps ✓ Operating frequency: 13.56 Mhz ✓ Operating time: Less than 0.2 seconds ✓ Operating range: Under 20 cm 57 19 2.2.3 Near field communication... Change Acknowledgment 869 Order Status Inquiry 870 Order Status 753 Request for Routing Instructions 754 Routing Instructions 990 Load Tender Response 997 Functional Acknowledgment 37 2.1.2 EDI... works with existing contactless card technologies ▪ Security-ready - NFC has built-in capabilities to support secure applications 59 2.2.4 Selection criteria for RFID systems: ❑ Operating frequency: