INTRODUCTION TO LOGISTICS

AND SUPPLY CHAIN MANAGEMENT

LOGISTICS MANAGEMENT &
MULTIMODAL TRANSPORT
Lecturer: MSc. Nguyen Truong Vinh Phu
Email: [email protected]
Mobile: 0964.180.988
 Chapter 6: E-commerce and E-logistics
Chapter 5: Modes of Transport
Chapter 4: Distribution Channel Management
Chapter 3: Information Technology in Logistics & SCM
Chapter 2: Overview of Logistics
Chapter 1: Overview of Supply Chain Management
Chapter 3: Information Technology in Logistics & SCM
1. Information System (IS) vs
Information Technology (IT)
2. Roles of IT in Logistics &
Supply Chain Management
3. IT in Logistics & Supply Chain
Management
4. Typical Modern Technologies in
SCM
Warehouse Operation in 1970s Alibaba Warehouse
1. Information Systems and Information Technology

Information System (IS)

Information System, as name suggests, is study and use of system to process data from input to generate
information that is essential and useful for managing operations. It helps in analyzing independent
processes and enables organized work activities. It is considered key factor to provide correct knowledge for
decision-making within an organization.( software system)

Information Technology (IT)

Information Technology, as name suggests, is basically study and use of system to establish faster
communication, maintain electronic storage and provide protection to business’s records or company
records. It simply prefers to anything related to computing technology like software, hardware, networking,
etc.( basical technique)
Information Systems vs Information Technology
Information Technology (IT) Information System (IS)

It is a sub system of Information system. It is a software used to organize and analyze data.

Its main purpose is to help people perform their work Its main purpose is to turn raw data into useful
properly and effectively and achieve their objective information that in turn will provide useful information
within organization or business. for making decision within organization or business.

It mainly focuses on improving productivity and It mainly focuses on providing support to operations,
efficiency using technology. management, and decision-making.

It is generally composed of three components i.e., It is generally composed of four components i.e.,
hardware, software. Networks and data. task, people, structure, and technology.

It helps people to utilize and make sense of that It works as a bridge between technology and people.
system.
Information Systems vs Information Technology
Information Technology (IT) Information System (IS)

It designs, implement, maintain and support It simply incorporates technology, people and
information or data within information system. processes involved with information.

It includes rolling out new software updates, It includes how people and processes can support or
troubleshooting problems of user’s technology, hinder performance of their organization, managing
replacing outdated hardware, etc., to meet computer networks and applications within modern
operational demands. business environments.

It helps in implementing communication, build and It helps in storing operational data, communication
grow commerce and business sector, improve records, documents, and revision histories.
reputation of business, etc.
2. Roles of IT in Logistics & SCM
Functions of a Logistics Information System
Roles of IT in Logistics & SCM

1. Integrated and coordinated supply chain

A supply chain can only work efficiently when it is properly integrated and well-coordinated. It performs this
crucial task by bringing in multiple technologies and combining them to optimize the supply chain. These
technologies make data collection possible and much easier and more accurate. In turn, this allows precise
and detailed data analysis leading to sound business decisions

2. Increased productivity
Smooth flow of information, new technologies and effective communication increase the productivity of all
entities in the supply chain. It is like a trigger for product movement. Instead of going back and forth, it
provides the link that passes the needed information continuously.
Roles of IT in Logistics & SCM
3. Cost reduction
IT permits optimum utilization of resources and assets, old data is used trends, and technology is used to
analyze it for improving performance. Resources are used optimally. They result in cost reduction. In a
supply of it becomes more prominent because it motivates all parties to use their resources in the most cost-
effective manner. When it is used as it should dramatic fall in expenses.

4. Product improvement
It consists of tools and applications which can be used to gain early where consumers always want
something new. The product will either have to will go out of demand. To stay in business, you must in
introduce product innovation sooner rather than later. The kind and extent of product validated with the help
of it.
Functional roles of IT in SCM

1. Transaction execution
When information flows efficiently between the participants of the supply chain, the number of transactions
between them is reduced. IT increases the efficiency of repetitive data exchanges. This data is usually
appropriate for delivery verification, order processing, billing and dispatch advice.

2. Collaboration and Coordination

IT renders the flow of information. This makes for easier planning, coordination and improved collaboration
between all participants. Demand forecasts make it possible to plan for the future, and order tracking makes
knowing the physical location of each order a reality. Neither of these activities is possible without it.
3. IT in Logistics & Supply chain management

• Electronic Commerce
• Electronic Data Interchange
• Bar Coding and Scanner
• RFID
• GPS Tracking (Track & Trace), IOT, Last mail Delivery Tracking on Mobility
Electronic Commerce

"Ecommerce" or "electronic commerce" is the

trading of goods and services on the internet.
Electronic commerce includes electronic data
interchange, e-mail, electronic fund transfers,
electronic publishing, image processing, electronic
bulletin boards, shared databases and
magnetic/optical data capture.
Electronic Data Interchange (EDI)

Electronic data interchange (EDI) is the exchange of

business data from one computer to another. It is usually
done in standard format so that all concerned parties can
use it according to their need without having to constantly
ask for it. EDI allows companies, across the industry, to
communicate with one another. Everyone who uses EDI
follows the same rules and methods. This makes for
efficient inventory management, better business
relationships, and improved customer service.
Bar Coding and Scanner

Bar coding is a sequence of parallel lines of

different thickness with spaces in between.
These bars are nothing but the items of
information in the codified form, which can be
read with the help of a scanner. The
information printed in bar code includes
country code, manufacturer name, product
details, date of manufacture, material content
etc. These details are required at user end for
inventory management.
Bar Coding and Scanner

Bar Coding and Scanner has reduced paperwork and

processing time. It has increased logistics system
productivity through speed, accuracy and reliability.
RFID

RFID is an Automatic Identification and Data

Capture (AIDC) technology. RFID first appeared in
tracking and access applications during 1980.
RFID-based systems allows for noncontact reading
and are effective in manufacturing and other
environment where bar codes could not survive.

These are used as an alternative to Barcodes to communicate the inventory data to the reader via radio
waves. RFID wirelessly exchanges information between a tagged object and a reader.
RFID has improved the ability of manufacturers to better manage the inventory levels. It has improved the
tracking, logistics and planning operations.
GPS Tracking (Track & Trace) & IOT
GPS is Global Positioning System

The benefits of GPS Tracking system includes below:

• Real time monitoring of the shipment
• Reduced fuel consumption
• Improved productivity
• Better Customer Service
IOT, Last Mile Tracking

The benefits of GPS Tracking system includes

below:
• Real time monitoring of the shipment
• Reduced fuel consumption
• Improved productivity
• Better Customer Service
IT Applications in Logistics & Supply chain management
Enterprise Resource Planning (ERP)
Materials requirement planning, which was earlier used to distribute
resources for a manufacturing operation, resulted in enterprise
resource planning (ERP), a system that links individual IT
applications into a single one. This results in the integration of the
data and the processes of the complete business. When all
operations are consolidated, information related to cash flow and
material flow starts making more sense.
ERP has now become the backbone of the supply chain and
provide an integrated view of an organization as a whole. Today,
ERP has also led to the automation of many functions so that there
is minimal human intervention.
Enterprise Resource Planning (ERP)
Supply Chain Management Systems

An ideal supply chain management systems will help in planning,

selecting manufacturing, logistics, and building the customer
relationship. To necessary assistance supply chain planning
(SCP) software and supply (SCE) software are used.
Customer Relationship Management

CRM or E-CRM uses IT to

assist an e-business in
managing its customer
need with the product
plans to increase sales.
Warehouse Management Systems (WMS)
A warehouse management system is software that helps
companies manage and control daily warehouse
operations, from the moment goods and materials enter a
distribution or fulfillment center until the moment they
leave.

• Receiving and put-away process

• Inventory management
• Order picking, packing, and fulfilment
• Shipping
• Labor management
• Yard and dock management
• Warehouse metrics and analytics
Transportation Management Systems (TMS)
A TMS helps the business select the
optimal mode of shipment and the best
carrier, based on cost, efficiency, and
distance, including optimizing multi-leg
carrier routes. A strong TMS can provide
visibility into every stage of the supply
chain, and together with global trade
management functionality, it can also
provide information on trade and tariffs,
and if there are any potential delays that
may happen because of customs and
other trade regulations.
Transportation Management Systems (TMS)
A TMS helps the business select the
optimal mode of shipment and the best
carrier, based on cost, efficiency, and
distance, including optimizing multi-leg
carrier routes. A strong TMS can provide
visibility into every stage of the supply
chain, and together with global trade
management functionality, it can also
provide information on trade and tariffs,
and if there are any potential delays that
may happen because of customs and
other trade regulations.
4. Typical Modern Technologies in SCM
Picking & Put away with Scanner
Barcode and RFID
Automated Warehouse