communication and control in logistics dlmppt by vikas

8/7/2019 Communication and Control in Logistics DLMppt by Vikas

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Amity Business School


COMMUNICATION ANDCONTROL IN LOGISTICS

Presentation By:Vikas Dubey (44)

Vivek Maurya (32)Ashish Tiwari (35)Sunny varma (45)Rohit Gulati (53)


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What is Supply Chain ? It is a system of suppliers, Manufacturers, Distributors,retailers, and customers where material flow Supplier to

Customer and Information flow in both the directions.


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Role Of Communication:a) Order Statusb) Product availability

c) Delivery Scheduled) Invoicee) Customer Inquiryf) Replenishments.

Paper based information FlowIncreases operating cost and decreases customer satisfaction

Non paper information flowElectronic data interchangePersonal ComputersBar coding and ScanningArtificial Intelligence/expert systemRadio frequency


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Plant Warehouse

Final Assembly (Manufacturing)

Sub-assembly A Sub assembly B Sub assembly C

Part A Part B Part B Part CPart C Part D

Role of Control :


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Applications of New Information Technologies:

Improved Information Technology helps ini. Increasing speedii. Capacityiii. Decline in Costiv. Improved Competitiveness

a) Electronic Data Interchangeb) Personal Computersc) Communicationsd) Bar coding and Scanning.

e) Artificial intelligence


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Electronic DataInterchange

EDI is the computer-to-computer interchange of strictlyformatted messages that represent documents otherthan monetary instruments. EDI implies a sequence ofmessages between two parties, either of whom mayserve as originator or recipient.

Messages from buyer to seller request for

quotation (RFQ)purchase orderreceiving advicepayment advice


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Radio Frequency

Historically, logistics activities had a distinct communications disadvantagesince they involved movement in either a transport or a material-handling vehicle.

Application of radio frequency (RF), satellite communications has overcomethese problems.

Radio frequency is used within relatively small areas, such as distributioncentres to facilitate two way information exchange.

Satellite technology allows communication across a wide geographic area suchas a region or even the world.

Satellite communication provides a fast & high-volume channel for information-movement around the globe.

Example: Schneider National, a nationwide truckload carrier, usescommunication dishes on the top of its trucks to allow communication betweendrivers & dispatchers.


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Bar Coding & Scanning

Information collection & exchange are critical for logisticsinformation management & control. Typically applicationsinclude tracking receipts at the warehouse & sales at thegrocery store.

Bar coding and electronic scanning are identificationtechnologies that facilitate logistics information collection &exchange. Bar coding refers to the placement of consumerreadable codes on items, cartoons, containers.

UPC (Universal Product Code) is used extensively in the

consumer goods industry for retail checkouts, other channelmembers desire more detailed information.


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ARTIFICIAL INTELLIGENCE/EXPERTSYSTEMS

Artificial intellegence (AI) and expert system are anotherinformation-based technology contributing to logisticsmanagement. AI is an umbrella term describing a group oftechnology aimed that making computer imitate humanreasoning AI is concert with symbolic reasoning rather thannumeric processing. AI includes technologies such as expertsystem natural language translator,neural network

Speech recognition and 3D vision.


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INFERENCE ENGINECONTROL STRATEGIES

QESTION SEQENCER

KNOWLEDGE BASEFACTS

HEURISTIC RULES

USER INTERFACEAdvice & explanation

Facts & data

USEr

BASIC STRUCTURE OF AN EXPERT SYSTEM


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Principle of Logistic Communication1)AVAILABILTY

Rapid availability of information is extremely necessary to respondto customers and improve management decisions.Customers frequently need quick access to inventory and orderstatus information regardless of managerial, customer, or product

order location.Many times it warrants the need for decentralized logisticsoperations so that information system is capable of beingaccessed and information updated from anywhere in the countryor even the world.Information availability reduces substantially the operating andplanning uncertainty.


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2)ACCURACY

Logistics information must accurately reflect both currentstatus and periodic activity for customer orders andinventory levels.

Accuracy is the degree to which LIS reports match actualphysical counts or status.

In case of low consistency between physical andinformation system inventory levels, buffer stock becomesnecessary to accommodate the uncertainty.

Increased information accuracy reduces inventoryrequirements.


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3)TIMELINESS

Timeliness refers to the delay between the occurrence of an activity

and the recognition of that activity in the information system.

Logistics information must be timely to provide quick managementfeedback.

Timely information reduces uncertainty and identifies problems, thusreducing inventory requirements and increases decision accuracy.

When a continuous physical product flow may exist such as work inprocess to finished goods, information system providing inventorystatus may be updated on an hourly, shift, or daily basis.

Real time or immediate updates are timelier but result in increasedrecord-keeping efforts .


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4)FLEXIBILITY

LIS must be able to provide data tailored to meet therequirements of a specific customer.

For example, some customers may want invoicesaggregated across certain geographic boundaries or

divisions or retailer.


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5)APPROPRIATE FORMATLogistics reports and screens must contain rightinformation in the right structure and sequence.For example, LIS showing a distribution centreinventory status with one product and one distribution

centre listed per screen.a) This format will require customer service executive

check inventory status at each distribution centrewhen attempting to locate inventory to satisfy aspecific customer order.

b) This implies that if there are five distribution centers, areview and comparison of five computer screens is

required.


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(c) Appropriate format would provide a single screen with inventorystatus for all five-distribution centers.

(d) The combined screen makes it much easier for a customer serviceexecutive to identify the best source for the product.

(e) This can be considered as an appropriate format as one singlescreen or report contains and effectively presents all relevantinformation for a decision maker.

An effective format should integrate past and future informationregarding on hand inventory, demand forecast, and plannedreceipts for each single term at a distribution.


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Conclusion

The above discussion reviews information technologiesthat are influencing logistics performance.

Technical capabilities are increasing so fast that expertiseis required to remain knowledgeable.

It is necessary to integrate logistics requirement with

current information technology capabilities to maintain acompetitive edge in todays business environment.


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Case Study: UPS

Largest distribution company in 1992.The company provides manufacturers,

wholesalers, retailers & service companieswith a wide verity of ground base and airpackages, document service offerings and

value added services also.


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Problem identification

Company did not rely on Informationtechnology to drive its distribution business.

Lack of communication network.Lack of innovative tech for tracing andbilling.


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Understanding the current processCompanys objective is to overhauling

technology and transforming the functional,operation into the proficient user of moderntechnology.

Highly accurate vision of future market andcustomer requirement.


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SolutionBar coding and scanningDigital pen based tecno, to collect delivery

information

National wireless communication network.


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communication and control in logistics dlmppt by vikas

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