Tuesday, May 5, 2020

ICT in Logistics Management-Free-Samples for Students-Myassignment

Question: Discuss about the ICT in Logistics Management. Answer: Distribution and Logistics Management Logistics management is a component of the supply chain management that meets demands from consumers by ensuring efficient planning and control in the movement of goods, services, and information from the point of production to the respective destinations (Nilsson, 2006). This process is important for companies because its aids in the reduction of costs related to movement of goods and services and it ensures that customer service is greatly enhanced. The management of logistics commences with the accumulation of raw materials from the respective suppliers to the delivery of products to the customers. Logistics managers adhere to the needs of their consumers as well as the standards that have been set up for the entire industry by following a provided process strategy, and implementing it according to the set plans. Logistics management requires that all the activities take place in time. Failure of this could lead to customer dissatisfaction. Incidentally, delayed deliveries may lead to loss of buyers. Moreover, there is need for the products to be transported properly to avoid damages. If there is poor logistics management, expenses may increase leading to losses being incurred. To resolve these problems, it is paramount that organizations implement logistic management practices that will save time, minimize costs, and ultimately increase customer satisfaction. This is possible by the use of information and communication technology in logistics management (Sai, 2016). The information and communication technologies can be applied in transportation of products, warehousing activities, the management of inventory, and in customer services. It makes the processes more efficient, saves time, and increases the customers levels of satisfaction. In the supply chain and logistics, different information and communication technologies has been seen to play a great role. The different technologies used are listed below. There is the use of Automatic Identification Technology (Auto ID). This is a technology that enables data to be entered directly into a computer without using a keyboard. It makes use of devices that are microprocessor controlled and logic controllers that are programmable (Majekodunmi, 2014). Technologies that employ Auto ID include; Radio Frequency Identification (RFID), voice recognition and bar coding. This technology is mainly used in tracking goods to ensure timely dispatch to the customers (Jones, Chung, 2016). Auto ID aids in providing accuracy in matters of package locations, saving time and costs, and it provides efficient data analysis and storage (Zeibig, 2006). Radio frequency identification aids in identification of the location of the products and aids in the capturing of data. RFID systems are very important especially in hostile environments where other technologies such as bar codes may be unable to survive. They communicate the data in regards to the inventory through the use of radio waves wirelessly from the objects that have been tagged to the reader. There are various components that make up the RFID system. These include; radio frequency tags (RFTs) which are made of an antenna and a chip that is a semiconductor, a single or multiple read or write devices that are referred to as readers, the readers also have an antenna, the host computer system, and an application software (Ahsan, 2011). RFIDs have been used by different suppliers from India to export their merchandise to retailers such as Walmart. These suppliers, by using the RFIDs are able to gain visibility in the movement of their products in the supply chain. This makes them more competitive. They also assist the manufacturers to manage their inventory better (Saleem, 2012). Bar coding technology is in the form of parallel lines that have different thickness, that are arranged in a sequence, containing spaces between them (Sellinger, 2012). The bars are information that has been presented in a coded form and is read using a scanner. The first time bar codes were used was in an American supermarket in 1952 (Reynolds, n.d.). The bar code contains information about; name of the manufacturer, manufacture date, details about the product, and country code. Different industries that make use of bar codes include; electronics, retail, pharmaceutical, automobiles, and consumer goods. Bar coding therefore aids during distribution to track goods in transit to consumers (Hutton, Ding, Wellman, 2017). Proctor and Gamble Company initially used bar coding technology to track the movement of goods as they were being shipped to retail outlets from their factories (Hunt, Puglia, and Puglia, 2007). However, they were not able to be proactive in preventing shortages in their stores. Hence, they shifted to the use of RFID to track their products. As a result, because they were able to track even individual products, they were able to stock their stores on demand and avoid shortages. Consequently, they predicted that this move would aid in reducing their expenses by $400 million annually ("Technology Trends in Logistics and Supply Chain Management", 2017). Another company that has made use of RFID technology is Ford Motor Company. Initially, the workers in the assembly line had to call and order for parts replenishments when they ran out and then waited for long periods of time to receive them. The company, in a bid to solve this problem, put RFID tags on every parts bin. This has in turn helped because workers in the warehouses are aware when the parts are running low and they automatically deliver those parts to the workers in the assembly lines ("Technology Trends in Logistics and Supply Chain Management", 2017). This has aided in saving time and increasing the income earned by the company. The voice interactive system is used mainly in warehousing operations. This technology enables the workers to pass on information to the central computer without making use of a keyboard. It is very efficient because it enables the operators to keep on working as they are communicating data to the system. They are therefore able to perform various tasks in the warehouse such as inspection of goods, picking up and packing the products while still interacting with the system. As such the workers are able to feed data to the system such as the item IDs while forklifting the products and driving the products away. The central computer, on the other hand, will update the data in real time. It is therefore very efficient in that it saves time while increasing productivity and reducing errors (Newsom, 2013). Communication technology is extremely vital in the achievement of success in logistics management. It enables organization to become highly competitive by increased accuracy and speed in the process of communication. Electronic data interchange (EDI) is a communication technology that assists to move data and information between computers. It can be used in the electronic movement of documents that are used in business processes such as cheques, invoices, and challans (Choe, 2008). This is a significant technology because it aids in elimination of errors that can be brought about by the use of physical documents or loss of the documents. This technology is superior to the use of emails in passing information because the EDI message is created by the use of one software and another software is used in the interpretation while emails are composed manually and the interpretation is also manual. This technology is significant in the supply and logistics management because; it ensures that transactions are faster and enables documents to be transferred in the supply chain in real time. By use of this technology a company can achieve just in time inventory management. Because the transactions that occur are paperless, transaction costs are considerably reduced. It also reduces the time taken in the order cycle. Finally, it improves the relationships that exist between different corporate parties thus reducing competition levels. Therefore, this is a technology that aids in the management of inventory. Another technology that is used in logistics is called Very Small Aperture Terminal (VAST). Today, the use of satellite channels of communication has become very significant in providing data in real time. There is an antenna that is fixed on the vehicle to enable the carrier of the goods to be tracked. Consequently, the consigner, driver, and consignee are able to communicate (Raghav, Vaithianathan, Murali, 2015). Because this communication occurs in real time, all the stakeholders are able to have an update of where the goods carrier is located and the location for the delivery. Walmart makes use of this technology to ensure control in the movement of inventory. This technology aids both in the transportation process and leads to improved customer service. Another transportation technology is the use of Geographical Positioning Systems (GPS). This system aids in the process of tracing the movement of inventory. It provides higher levels of accuracy when put in use in the developed countries where with the assistance of Geo Stationary Satellites, a truck can be traced in terms of longitude and latitude to the accuracy of one meter. As soon as this location is identified feedback can be sent back to the consigner and the consignee using different means. Geographic Information Systems (GIS) is another communication technology that aids in providing the exact location of the consignment in any location on earth as long as it is stored in geography related databases. When integrated with GPS, GIS can track the inventory to a specific street in any given town. Web based Tracking is another technology that aids in tracking inventory. It aids in improvement of customer services because it allows clients to access the status reports about their consignments. This report can be downloaded by the clients through internet connection. The data provided by this technology enables the company to plan schedules for dispatch as well to follow up with their clients on matters regarding payments. This is an important technology because it brings trust between the customers and the companies and ensures that the customers receive their consignments in good time. This technology has been highly used by Indian companies such a Blue Dart and Fed-Ex. Another communications technology that is used in warehouses is the Automated Guided Vehicle System (AGVS). This is a system that incorporates the use of optical and magnetic systems of guidance. An operator is not required when using this system. There is an energized wire that is laid on the floor of the warehouse that guides the equipment carrying inventory. The wire is used to direct the magnetic system. In the recent past, there have been Automated Guided Vehicle Systems that work without the need for the energized wire and they therefore do not follow one fixed route alone. These systems can be able to carry out all the activities of handling inventory in the warehouse without the need for human control. They can also be used together with robots. In such instances they are able to pick the exact requirements provided in an order by a customer (Jaiganesh, Kumar Girijadevi, 2010). Another technology used in warehouses is the use of Information Directed System (IDS). This system makes use of a centralized computer that controls the equipment that handles inventory (Gattiker, 2006). The equipment and the computer make use of radio frequency to communicate. An operator feeds the movements that need to be undertaken to the computer, which in turn passes the tasks to the different equipment. This technology increases the productivity in the warehouse because the system can perform different jobs that involve the handling of inventory using just one equipment. These jobs include; loading different vehicles and picking orders. An information technology that is used in supply chain and logistics management is the use of Enterprise Resource Planning. This is an integrated software that aids to bring a difference in the working of employees and it encompasses all the operations in the business (Babu Bezawada, 2012). It requires enough time to plan before using it because it is very expensive and complex. The enterprise resource planning software can be adapted to suit a given business. Ramco Systems in India is one company that has adapted ERP to suit the business environment in which it operates. This software enables an organization to respond to customers quickly, reduces costs related to inventory and logistics, and leads to improved service provision by the company both internally to its employees and externally to other stakeholders such as customers and suppliers. Other companies that have incorporated the use of ERP include; Colgate and Nestle. These companies have been able to save costs related to inventory. Another information technology tool used in logistics management is the use of Distribution Requirement Planning (DRP). This technology incorporates sophisticated planning methods and takes note of the characteristics of the distribution system with emphasis on the different distribution stages in the process ("Distribution Requirement Planning (DRP)", 2014). The requirement for the inventory of finished goods is determined by the distribution requirement planning systems. The demands for consumers in different markets are put into consideration and the different distribution centers. This system aids in the consolidation of the different shipments to various places that are in different geographical locations. This in turn aids in the reduction of costs associated with the distribution of products. The use of this system helps companies to reduce the levels of inventory in their warehouses and minimize distribution costs. A technology that is very important in inventory management is the Automated Inventory Tracking System (AITS). This is an information technology tool that provides information on the levels of inventory in real time (Sople, 2007). It is used in feeder, retail stores, and major warehouses. The data regarding the levels of inventory remaining are conveyed to the suppliers directly once the level of stock in the major warehouses are checked. This is for the purpose of replenishments before the stock runs out to prevent delays and losses being incurred. The process of replenishment by the supplier takes different times based on the rate at which the particular product is selling in the retail stores, the amount of inventory already in transit, and the amount of safety stock. This tool is vital because it aids in the optimization of stock in the supply chain. Walmart uses the Automated Inventory Tracking Systems throughout their supply chain to control their inventory. Another technology that is being used the transportation of inventory is the drone. This technology has not yet began being used that much but it is continually growing. Drones have a great potential for growth. This is because they can be much faster that vehicles. They have an ability to access densely populated areas without having to pass through the congested urban roads. Moreover, they can save costs because their operating budgets are much lower than when using other means of transport. Advanced machine learning and analytics is another very important technology in this day and age. Today, there is so much data that is in existence. Companies are gaining a great competitive edge by making use of this data. They are analyzing this data and identifying patterns that exist then they are using this information to make business decisions. Currently, computers have been programmed to produce certain reports and dashboards that are already pre-determined. However, there are other consumer trends and market insights that need to be uncovered. This is where machine learning comes in and it is able to identify these patterns. When combined with supply chain management, this technology will aid in converting the existing data into actionable intelligence for the businesses. The company can therefore be able to improve product demand through accurate forecasting, create a chain of supply for the orders coming in, and be able to predict patterns, trends and performance. Clearly, technological advances are being used to increase profit margins as well as improve the logistics operations. The ability to share information in real time has become vital in the achievement of efficiency. One of the biggest issues that logistics managers have is information distribution. This happens because there are many levels in the logistics process that have their own platforms for sharing the information instead of this information being shared all through. The different levels in the supply chain include; distribution, procurement, and manufacturing. It is therefore paramount that the supply chain adopts a policy of integration. Today, many companies are looking to integrate all their internal operations from management of inventory, warehousing, transportation and all other components of the supply chain. Incidentally, there is a technology known as SaaS that enables companies to integrate their different operations. In turn, they enjoy better management of their inventory, faster shipping, and reduced costs associated with warehousing activities. This report has shown the ways in which technology is used in logistics management in the process of distribution, inventory management, warehousing and in customer services. All the technological applications have been seen to reduce costs incurred, save on time, increase the levels of productivity, and increase the levels of customer satisfaction. Companies should analyze the different information and communication technologies that are in existence in order to incorporate them into their companies based on their different logistic activities. This will increase the companies competitiveness and improve their efficiency levels References Ahsan, K. (2011).RFID Components, Applications and System Integration with Healthcare Perspective. Babu, Bezawada . (2012). Enterprise Resource Planning.SSRN Electronic Journal. Choe (2008). The effects of EDI usage on production performance through the changes of management control systems.Production Planning and Control, 570-580. Distribution Requirement Planning (DRP). (2014).Encyclopedia of Production And Manufacturing Management, 166. Gattiker, U. 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