LOGISTICS AND SUPPLY CHAIN

INFORMATION SYSTEMS

Logistics Profile:
Applebees
Restaurant ordering practice has progressed from phone to fax
to Internet.
Information systems (IS) help Applebees to monitor prenegotiated prices and rebates, and to better manage inventory
tracking.
Internet-enabled information systems have great potential to
improve the efficiency and effectiveness of supply chain
activity.

Logistics and Supply Chain Information

Systems: Introduction
Many firms view effective management of logistics
and supply chain activities as:
Prerequisites to overall cost efficiency, and
Keys to ensuring their ability to competitively price
their products and services.

Effective information management

also can
help ensure that a firm
meets the logistics
needs of its
customers.

Contemporary Issues in
Information Systems
Results from Annual Computer Sciences
Corporation Study on Information Systems
Management suggest that highest priorities are on
customers, productivity, and performance.
It is clear that Internet and E-commerce issues are both
recognizable and critical.

Contemporary Issues in
Information Systems
Quality of Information: Three major issues
1. Availability of Information
Managers may be uncertain of needs.
Supplied data not consistent with needs.

2. Accuracy of Information
Three strikes and youre out policy.
Accounting practices must accommodate logistics
needs.
3. Effectiveness of Communication

Architecture and Objectives of

Information Systems
Information System Building Process
Three key types of IS people needed:
Architect to design process
Systems programmer to assemble hardware and
software
Data manager to build data warehouse

Architecture and Objectives of

Information Systems
Positioning Information in Logistics
Logistics Information Systems include
coordination flows and operational flows
These two flows should:
freely interchange data
integrate coordination activities into operational
activities
be flexible, not linear.

Figure 12-2
Logistics Information Flow

Figure 12-3
Examples of Information Flows

Major Drivers of the Connected Economy17:

Customer-Centric Value Web Model
Customer-Centric Value Web Model
Customers of all types are expecting more from
their suppliers, at faster speeds, and with
increasing reliability.
Traditional linear supply chains are being
replaced by new, consumer-centric approaches
as seen in the next slide.

Technology Impacts on Supply Chain

Disintermediation and Evolving Technological
Changes
Technology Impacts on Supply Chain
Disintermediation
Evolving Technological Changes
Stand alone businesses and traditional firms extending goods
and services through web sites to more complex intelligent
marketplaces.

Technology Impacts on Supply Chain

Disintermediation

(a) Simplified Supply Chain

(b) Supply Chain with Disintermediation

Chronicle of Internet
Milestones

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.

Major Drivers of the Connected Economy:

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.

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 of business data in
a structured, machine- processable format.

Contemporary Logistics
Information Technologies
RF technology
Uses radio frequency to transmit computer outputs, possibly
from an expert system to human operated devices, such as, a
forklift.
Optimizes quality, efficiency, and accuracy.

Onboard computers and satellite tracking

Uses systems such as GPS to track and communicate with
mobile and/or remote vehicles.

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.
Examined on the next slide.

Logistics Information Systems

Logistics Information Systems:

Planning System
Provides decision support for logistics managers
Logistics functional databases
Comprehensive relational database that contains the type
of information needed to make effective decisions.
Greatest use in the transportation, inventory, and
product areas with warehousing and customer areas
showing less progress.