TEAM 2

How information technology progressed through the years in logistics

 Grupo: 3II

Alumnos
Grupo: 3II
Ximena Elizabeth Ortiz Pérez 2094848
Dania Saraí García Rangel 2094880
Fernanda García Tijerina 2043935
Carlos Emilio González de la Garza 2043101
Erika Vasquez Andrade 2095381
Benefits:
Greater knowledge and visibility across the
supply chain.
Greater awareness of customer demand via
point-of-sale data.
Better coordination of manufacturing,
marketing, and distribution through
enterprise resource planning (ERP) systems.
Critical to maintaining competitiveness.
Reduce their costs and times and improve
customer satisfaction.
 Big Data
The collection of large amounts of near
real-time data collected through a variety
from sources such as sensors,
smartphones, RF tags, and business-to-
business data exchanges.

The opportunity will be to use this data in

logistics to detect changes in demand
and then use logistics activities to
respond effectively and efficiently to
these changes.
 Data VS Information
“Data are simply facts—recorded measures of
certain phenomena—whereas information is a
body of facts in a format suitable for decision
making.”

We can make right decisions if we have the right information.

 Information management systems
GENERAL TYPES

System type Logistics examples

Office automation system: provides effective ways to Spreadsheet applications to calculate

process personal and organizational business data, to optimal order quantities, facility location,
perform calculations, and to create documents. transport cost minimization, among others.

Communication system: helps people work together by Virtual meetings via computer technology
interacting and sharing information in many di erent forms Voice-based order picking

Transaction processing system (TPS): collects and stores Electronic data interchange Automatic
information about transactions; controls some aspects of identification technologies such as bar
transactions codes Point-of-sale systems
 System type Logistics examples

Management information system (MIS) and executive

information system (EIS): converts TPS data into information
for monitoring performance and managing an organization; Logistics information system
provides executives information in a readily accessible
format.

Simulation Application-specific software

Decision support system (DSS): helps people make decisions
such as warehouse management systems
by providing information, models, or analysis tools
Data mining

Enterprise system: creates and maintains consistent data

Logistics modules of enterprise resource
processing methods and an integrated database across
planning systems
multiple business functions
 Office automation
SYSTEM

Office automation systems provide effective ways to

process personal and organizational business data,
to perform calculations, and to create documents.
Logisticians use optimization models to make those
processes essier; for example, with spreadsheet
software that makes complex judgments and
decisions about key logistics issues at strategic,
tactical, operational, and collaborative levels.
Furthermore, the use of spreadsheets provides a
method for logisticians to conduct a variety of “what-
if ” analyses in support of their logistics.
 Comunication
Systems
Communication systems help various
stakeholders—employees, suppliers,
customers—work together by interacting
and sharing information in many different
forms.
 Its
Importance
The importance of well-defined and well-executed
communication systems was highlighted by the
events of September 11, 2001, especially for
companies that use or provide airfreight services

Fax machines, personal computers, electronic

mail, cellular phones, tablets and smart phones,
among others, were considered workplace
“luxuries” in the 90s.

Today, by contrast, many of these technologies

are essential for enabling the contemporary
logistician to perform in the workplace.
Electronic Data
Interchange

Measuring stick for Wireless

logistics information
technology in the Communication
1990s.
Emerged as the
measuring stick
during the first
decade of the
twenty-first century
 Global positioning
systems (GPS)
Network of satellites that transmits signals
that pinpoint the exact location of an object.

It is valuable to the transportation component

of logistics because of high fuel costs and the
relentless pressure to improve efficiency and
productivity.

Transportation companies that have

implemented global positioning systems have
reported an increase in worker productivity,
reduced operating costs, and improved
customer relations.
 Tablets Hardware and
software
Tablets, such as Apple’s iPad, are also
becoming important contributors to logistics
decision making. Advances in hardware and software have
resulted in dramatic cost reductions for
Markley Enterprises, third-party apps to
wireless communication, and one implication
enhance the productivity of its warehouse
is that the technology is no longer limited to
workers, improve pick accuracy, and
those companies with the deepest financial
eliminate paperwork.
resources.
Cleveland-based Arhaus Furniture, iPads in
its delivery trucks, which has led to savings
in paperwork costs, increased truck
utilization, and improved customer service.
Transaction Processing
Systems (TPS)
Collects and stores information about
transactions and may also control some aspects
of transactions. The primary objective of a TPS is
the efficient processing of transactions, and to
this end, organizations can choose to do batch or
real-time processing.
Batch Processing Data
Data are collected and stored for processing
at a later time, with the later time perhaps
being based on schedule or volume
considerations.

Real-time Processing
Data
Transactions are processed as they are
received.
 Example of a logistics-related TPS

Electronic data interchange (EDI)

Computer-to-computer transmission of
business data in a structured format.

Facilitates the integration of, and

coordination between, supply chain
participants.
Common uses
Invoicing
Submission of purchase orders
Pricing
Advanced shipment notices
Electronic funds transfer
Bill payment.
 Example of a logistics-related TPS

Electronic data interchange (EDI)

Benefits
Reductions in document preparation and
processing time
Information float
Shipping errors
Returned goods
Order cycle times
Ordering costs.
 Example of a logistics-related TPS

Automatic identification
technologies
Include
Optical character recognition (which can It is an essential component in point-of-
read letters, words, and numbers) sale (POS) systems
Machine vision (which can scan, inspect, Provide data to guide and enhance
and interpret what it views) managerial decision making.
Voice-data entry (which can record and
interpret a human voice)
Radiofrequency identification (which can
be used where there is no line of sight
between scanner and label)
Magnetic strips.
 Another automatic identification technology

Radio-frequency identification
(RFID)
Involves the use of radio frequency to identify objects that have been implanted with
an RFID tag.

Three Components Benefits

A scanning antenna Dramatic reductions (between 20 percent
An RFID tag (chip) that conveys the relevant and 50 percent) in inventory stockouts.
data Reduced the time needed to count
And a transceiver that interprets the data. inventory by 80 percent.
Improved the accuracy of inventory counts
As an RFID tag passes within the scanning at one clothing retailer.
antenna’s range, the tag’s data are picked up
by the scanning antenna and interpreted by the
transceiver.
 Management Information Systems (MIS)

AND EJECUTIVE INFORMATION SYSTEMS (EIS)

These systems convert TPS data into information for Accurate information may also reflect the effectiveness
monitoring performance and managing an organization, and efficiency of a company's logistics information
with the objective of providing managers and executives system. An LIS must be concerned with the nature and
with the information they really need. quality of the relevant data.

A logistics information system (LIS) can be defined as

"the people, equipment, and procedures to gather,
sort, analyze, evaluate, and distribute needed, timely,
and accurate information to logistics decision
makers.

As shown in this figure, an LIS

begins with a logistics manager
requesting information and ends
with the manager receiving
regular and customized reports.
 Decision Support Systems
PROVIDE INFORMATION, MODELS AND ANALYSIS TOOLS

Application-specific software Warehouse management systemms (WMS)

Developed to help deal with specific logistics software packagesthat provide oversight of the
processes or activities. storage and flow of the materials within a
company’s operations. Activities controlled by a
On-demand software WMS include inventory management, product
Cloud computing is a software where users access receiving, determine storage locations, order
on a peruse basis instead of software they own or selection process and order shipping
license for installation.
Simulation
Tansportation management systems (TMS)
models a real-world system with mathemathical
software package that automates the process of
equations to representrelations between system’s
building orders, tendering loads, tracking shipmens,
components. It enables the firm to test the
autdits, and payments. The info provide helps
feasibility of proposed changes at relatively little
companies get their freight to where and when is
expense.
needed in a more efficient manner.
 Decision Support Systems
PROVIDE INFORMATION, MODELS AND ANALYSIS TOOLS

Data Mining Machine Learning

The application of mathemathical tools to large
Leverages algorithms that can “learn” from data.
bodies of data in order to extract correlations
These algoriths use data to build and constantly
and rules.
update their prediction models for activities
Utilizes sophisticated quantitive techniques to such as forecasting.
find “hidden” patterns in large columes of data;
these patterns allow the improvement of Can use web page information such as visits,
decision-making and enhance organization’s time on site, and social media activity to
competitive advantage. improve logistic activities. It can also be used as
an early warning system for potential machine
Efficient data mining depend on data downtime and support logistics decision
warehouses, a central repository for all the makingfrom both supply and demand side.
relevant data.
Enterprise Systems ENTERPRISE RESOURCE PLANNING

Create and maintain consistent data processing

methods and an integrated database across
multiple business functions.

The ERP systems let a company to automate and

integrate the majority of its business processes,
share common data and practices across the
enterprise, and produce and access information
in a real-time environment.

Is atractive for lowering costs, as well as

increasing productivity and customer
satisfaction.
Enterprise Resource Planning
Today’s ERP systems provide ERP-related problems
opportunities for all functional areas often result in higher level
within a firm to access and analyze a returns associated with
common database. incorrect orders and missed
shipments cause an
Unfortunaly ERP systems involve a great inversion, unecessary spend for
since the vast amounts of data necessary for ERP expeditc transportation.
systems may necessitate new or upgraded computer
hardware along with employee training, data
conversion integrating and testing a new system,
maintenance costs, and consultant fees. Time required
for its implementation are from two to four times
longer than the period specified by its promotor.
 The Internet's
Influence on Logistics
Although the Internet may appear to be a ubiquitous technology
today, the reality is that only about 49 percent of the world's
population currently uses the Internet. Just as the Internet's usage
continues to expand during the twenty-first century, so does its
influence on the logistics discipline. This section will discuss four
specific influences-online retailing, cloud computing, electronic
procurement, the Internet of things—of the Internet on the logistics
discipline.
 Online
Online retailing requires an order management
system capable of handling high volumes of
orders, and it's also essential that the

Retailing information management system be capable of

correctly transmitting each order so that it can
be filled in a timely fashion.
Online retailing is the buying and selling
of goods and services over the Internet
examples include Amazon, Walmart,
Temu, Netflix. Two other key logistical considerations for
online retailing involve transportation and
returned orders.
 Cloud Advantages
Collaborative Forecasting (make predictions)
Inventory Optimization

Computing Small Information Technologies staff

Drawbacks
Delivery of computing services: on-demand
Customer can struggle to keep up with
software and software as a service.
upgrades.
Limited Customization
Security Issues: Data Protection.
 Electronic
Procurement
Uses the internet to make it easier, faster
and less expensive for an organization to
purchase goods and services.

Benefits
Transactional Benefits:
transactional efficiency.
Drawbacks
Compliance Benefits:
Security of Information
procurement policies.
Impersonal
Management Information
Benefits: customer and
supplier satisaction levels.
Price Benefits: invoices.
 Internet of Things
Sensors and data-communication technology that is built into physical
objects enabling them to be tracked and controlled over the Internet.

Extends over all logistic technologies such as warehousing,

transportation and last-mile delivery.
Information
Technology
Challenges
Concerns on a macro and micro level:

Information Technologies is a tool, not a

panacea solution for organizational
problems.
Security concerns.
Employee resistance to technology.
Technology addiction.
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Thank you!