Implementation of Technology in Logistics Management

Logistics is the lifeblood of any Military Organization. The term “logistics” was
first used within the military field, logistics being understood as a branch of the
art of war, which was in charge of moving and bringing supplies to the troops.
This concept developed because of the need of supplies for the military forces
during a war. The development of the military logistics, as it is known today,
coincides with the development of the organized military forces, that several
nations have used in past. Logistics defines all the material and assistance
conditions necessary for the good development of an organization.

The remarkable challenges which Indian Coast Guard faces during management
of logistics are as follows:-
 Finalyzing Contracts with suppliers so as to purchase all kinds of materials
which are required on a day to day basis in ships and shore
establishments.
 Transport, storage and preserving the supplies onboard so as to prevent
wastage.
 Organizing, planning and executing transport so as to deliver the goods to
the ships at harbours in a timely manner.
 Establishment of hospitals equipped with medicines at remote ports.

The major challenge to the Indian Coast Guard is to balance near-term readiness
and force modernization in an environment of increased missions and fewer
resources. To face those challenges, we need more than technology. We need to
train our young officers, build quality leadership, ensure materiel readiness,
establish vital installations and cater to the emergent needs of our soldiers.

These changes are vital for a young and dynamic force like us. The first and
foremost focus should be on exploiting improvements in communications and
business practices to provide better unity of command and reduced logistics
footprint. Many a times the delay in paper work leads to lag in communication
between the demanding unit and the supply unit. This communication gap has to
be eliminated by use of technology and digital media to ensure efficient flow of
the supplies to the units.

Secondly we have to develop distribution technologies that facilitate rapid

throughput and follow-on sustainment as our organization builds it’s future. As
ships under command of an unit remains in close vicinity, supply of necessary
goods should be channelized. Instead of individual units placing separate
demands, essential goods are to be supplied on a monthly basis to all the units.
This will not only reduce the manpower being utilized for transportation of goods
from supply units but will also reduce the cost of transportation and delay in case
of unavailability of items.

Performing these functions requires communications and interactions not only

within and between command layers and theatres, but also between Indian
Coast Guard and Indian Navy. Knowledge gives leaders necessary awareness.
Precise, realtime knowledge of the disposition of their assets allows commanders
to maneuver assets at the earliest.

At the organisational level, an integrated software for logistics management has

to be deviced. The software should be able to integrate all the functions and
processes of existing systems to generate data, integrate databases, and fuse
information from external sources. It will not only cease the loopholes in
distribution of goods in current scenario but will also boost timely supply and
provide a mean to track the suppy orders.

In logistics many new technologies are used in private firms while in government
organizations adoption process is very slow. However due to increase of
privatization in government sector, the competitive pressure is building up and
the only option to face the competition in to go in for technology enabled
operations. The latest technologies being used in logistics and supply chain
management are segregated into
 Automatic Identification Technology
 Communication Technology
 Information Technology

Automatic Identification Technology Automatic Identification (Auto ID) is

the term used to describe the direct entry of data or information in the computer
system, programmable logic controllers or any microprocessor-controlled device
without operating a keyboard. These technologies include Bar Coding, Radio
Frequency Identification (RFID) and Voice Recognition. Auto ID can be used for
tracking the containers, packages, cartons or a truck carrying the goods on time
bound dispatches to the customers. The benefits of Auto ID include accuracy,
cost saving, speed and convenience of data storage and processing of
information. The significant Automatic Identification technologies in use are –

Bar coding – 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. Historically bar
codes was first used in a supermarkets in USA in 1952.The information printed in
bar code include, country code, manufacturer name, product details, date of
manufacture, material content etc.These details are required at user end for
inventory management. The bar codes are used in diverse industries such as
retail, pharmaceutical, consumer goods, electronics, automobiles etc.

The bar coding offers the following advantages.

 Ease in identification of inventory items during storage, retrival, pickup,
inspection and dispatch.
 Reduce paper work and processing time leading
 Reduce human error
 Increases logistics system productivity through speed, accuracy and
reliability.

Impact of Bar code technology on operations of logistics and supply

chain management

Procurement operation – The parts and components brought from suppliers

are assigned bar codes, which contain information on item name, batch number,
date of manufacture, order no, serial no etc. The information in bar code helps in
identifying and tracking the component. In the warehouse, when the goods enter
through a conveyor, they are further scanned by the hand held scanner or
scanner fixed alongside the conveyor. The information decoded by the scanner is
immediately logged in the central computer which helps real time update of
inventory records.
Processing – During the order processing the bar code will help in keeping
identification of items based on their date of entry into the warehouse or store.
This will ease material storage, retrival and dispatch in FIFO (First in First out)
inventory management system.
Production operation – During the production process the identification of in-
process and finished items become easier due to bar coding. The various bathes
at different stages of production can be easily tracked.
Distribution operation – During distribution, barcode helps in identifying and
tracking the transit of finished goods to the customers.
 Radio Frequency Identification (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 non
contact reading and are effective in manufacturing and other hostile 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.
An RFID system is compromised of the following components as
mentioned below
One or more tags called Radio Frequency Tags (RFTs), which includes a
semiconductor chip and antenna.
One or more read/write devices also called readers.
Two or more antennas one on the tag and one on the reader.
Application software and the host computer system.

RFTs The reader is connected to the central computer. Radio Frequency Tags
(RFTs) are a piece of silicon chip to store data in the microcircuit. The RFTs are
programmable with erasable memory. Data is stored in coded form and
communicated to the reader through waves. The basic principle of tag is that
antenna emits the radio signals. RFTs are very useful to accompany truck
shipments. The tag will contain information on consignor, consignee, inventory
items, quantity and value, what time the item travelled certain zone; even the
temperature etc. The reader receives the tag signal with its antenna, decodes it
and transfers the data to the host computer system. RFTs can be attached to
virtually anything-from a semi tractor, to a pallet, containers etc. RFTs will avoid
paperwork and can be helpful in quick clearance at octroi and custom posts. In
the warehouse, the barcodes can be applied to the individual inventory items
while RFTs can be applied to pallets, containers etc. These will allow the staff to
directly communicate to the warehouse computer.

RFID has significant impact on logistics and supply chain of many

sectors
 RFID helps Indian exporters to global retailers like WAL-MART get better
and more visibility into movement of their goods within the supply chain
and thus become more competitive.
 Improve the ability of manufacturers to better manage the inventory
levels.
 Improve the complex distribution system for the Defense operation.
 Improve the complex tracking and distribution operations of the Indian
Postal services.
 Improve the tracking, logistics and planning operations of Indian Railways,
state public transport agencies
 Implement automatic toll collection on vast network of highways.

COMMUNICATION TECHNOLOGY
The communication, either oral or written has a very crucial role in the success
of logistics management. The following are the few emerging communications
technologies, which are enablers to superior service leading to competitiveness
through the speed and accuracy in communication.

Electronic Data Interchange (EDI) - EDI technology is used for transfer of

business documents from one computer to other computer. With EDI the
business documents such as invoices, cheques, and challans are sent
electronically from one unit to another. In fact EDI is a drive towards paperless
document transfer or transactions. The difference between the email message
and EDI message is that, E-mail is composed and interpreted manually, while
EDI message is composed using one software and interpreted by other software.
E-mail data is not structured while EDI data or message is structured.EDI
message has legal standing in the court of law.

The benefits of using EDI technology in logistics and supply chain

management involves
 Faster transactions- real time document transfer in the supply chain.
 Just-in-Time manufacturing technique can be adopted.
 Reduction in transaction cost due to paperless operations
 Reduction in order cycle time and inventory that will help to improve the
competitiveness of the customers.
 Improve the corporate trading relationships between parties in the supply
chain and creating barriers for competitors.

Very Small Aperture Terminal (VSAT) - The satellite communication

channels are playing a crucial role in real time data collection and its exchange,
which is vital for customer service. To trace and track the goods carrier, a dish
antenna is fixed on the ship. This allows the communication between demanding
unit, consignor and supply unit. The real – time interaction helps in having the
up-to-date information on the location of truck and the delivery position.

Geographical positioning System (GPS) – The GPS is more accurate system

used in developed countries wherein a vehicle could be traced accurately with
the help of Geo Stationary Satellites to the accuracy of one meter in terms of
latitude and longitude. Once the position of the vehicle is known, it can be
transmitted to consigner or consignee through the transmission network i.e.
mobile phones or internet.
Geographical Information System (GIS) – GIS are the software tools for
visualization of special location of any entity on earth which is stored in
databases relating to geography .This could be in terms of physical maps of the
surface of earth, layout of inner surface of earth or a layout of streets or
roads.GIS in integration with GPS is used in logistical operation for tracking and
tracing of the consignment location to the extent of road or street in particular
city.

Web Based Tracking – Logistics service providers operating in India are

extending the services of web-based tracking of consignments to their clients.
AFL, Fed-Ex, Blue Dart and others are providing the status report of the
consignment to their units. The units can download this report by connecting
through the Internet. This information helps in planning the dispatch schedule
and also making follow up with units for payment.

Information Directed System (IDS) - In this a centralized computer controls

the material handling equipment. The communication between the equipment
and the computer is through radio frequency. The required movement are fed
into computer and it assigns the jobs to the individual equipments considering its
maximum loading capacity and handling speed. IDS can perform variety of
complex material handling jobs such as multiple order picking or multiple vehicle
loading by the same material handling equipment leading to enhancement in
warehouse productivity and flexibility in handling variety of jobs

Information Technology (IT) – IT consists of hardware and software that

captures analyses and provide information wherever it is needed. Since the
supply chain management is defined as network of organizations, these
organizations cannot form a network unless they are connected through IT
resulting into transparency in the supply chain and aligning the supply chain
activities towards customer.

Distribution Requirement planning (DRP)- It is a sophisticated planning

approach that takes into consideration multiple distribution stages and the
characteristics of the distribution system. The finished goods inventory
requirement is determined by DRP considering the customer demand at multiple
distribution centers located in different markets.DRP helps in consolidating the
shipments to multiple locations spread over the vast geographical area, and thus
help in reducing freight cost. DRP improves inventory visibility in the supply chain
resulting into reduction in inventory level and warehouse space requirement.
Automated Inventory tracking system (AITS) - The AITS is an IT tool that
gives real time status of the inventory levels of all the items at retail stores,
feeder and mother warehouses. For replenishment of items sold, information is
conveyed directly to the supplier after the item inventory level is checked at
feeder and mother warehouses. The supplier initiates the action to replenish the
inventory item depending on the item take-off rate at retail stores, its safety
stock, inventory in transit etc thereby optimizing the inventory in the supply
chain.

Planning –In the initial period before the advent of IT, production and
distribution planning was done based on historical data. There was not much
linkage with planning and production changed with varying demand. However
with the advent of IT planning approach include collaborative planning,
forecasting and replenishment (CPRF). It involves long term commitment to
information sharing for collaborative planning purposes like joint business
planning and financial planning.
Web-based collaboration- The web-based collaboration application enables to
share and collaborate with supply chain partners on forecasts, replenishment and
promotions plans to deliver the highest level of customer service and profitability.

Scheduling –In the initial period the scheduling was done to improve asset
utilization and reduce manufacturing costs. However with the advent of IT strong
linkage is established between supply chain partners and customers. As such
scheduling is done to serve the units at the right time.

Inventory management –In the initial period every department tried to

minimize the inventory by transferring it to the next level of the supply chain.
Thus the total inventory cost in the supply chain was high as there was no
transparency of the inventory held in the supply chain. However with the advent
of IT techniques such as collaborative replenishment and vendor
managed inventory were followed where manufacturer takes the responsibility
to replenish the distributor inventory, resulting in inventory control and access to
demand information.

Logistics management – In the initial period logistics was more manual

intensive and there was no visibility of the movement of goods. However due to
the advent of IT and technologies like RFID and GPS complete visibility in
movement of goods is assured resulting into efficient logistic and warehouse
management.
Customer service – In the initial period customer service was only reactive.
The complaints or information was difficult to reach the concerned department
and was time consuming process. However with the advent of IT, customer
service is more proactive as it reaches the demand unit through internet and
takes continuous feedback from them.

Best Practices - Methodologies and applications used in an organization that

elevate a commercial
Enterprise above the competition is referred to as "organizational best practices."
Best practices enable organizations to deliver world-class standards of
performance to their Consumer units. These best practices and standards of
performance have generated much interest within the defense logistics
community, which is constantly being asked to do more with less. The
emergence of organizational best practices took place because of downsizing and
a hunger for profitability, or doing more with less, so it stands to reason that
there could be a great deal of benefit to defense forces by implementation of
these best practices. Leveraging of organizational best business practices is a
popular topic in the literature and presentations concerning the Coast Guard and
other defense forces of the future, the RML, and the Objective Force. RML, as a
precursor and roadmap to the Objective Force, could be accelerated greatly by
investigating and embracing many commercial logistics best practices. Integrated
supply chain management, industry's changing view of logistics, electronic
commerce, automated identification technology, direct vendor delivery, load
optimization, outsourcing, and smart simple design are all examples of
commercial best practices that could be very useful in helping the Indian Coast
Guard to achieve self sufficiency in logistics management. With implementation
of modern technologies, sustainability is designed into future systems with
enormous improvements in reliability, availability, and maintainability; a single
command, control, communication, computers/information and technology
architecture provides logistics information at all levels; centralized contracting
information is always available; and,
embedded diagnostics/prognostics and Automatic Identification Technology (AIT)
helps in avoiding loop holes faced during manual operations.

Implementation of technology to manage the supply chain must integrate many

different processes, including supply and demand planning, transportation and
distribution management, and advanced planning and scheduling (for asset
management or manufacturing operations). This approach can result in inventory
reductions, increased on-time deliveries, reduced total product cycle (make-to-
sell) time, increased revenues, and better customer service. All of this adds up to
significant savings and an important gain in competitive advantage. Applying
tailored, integrated, logistics process management software suites when
implementing supply chain management techniques is creating a growing
revolution in organization-wide logistics management. This holistic approach is
revolutionizing organization-wide logistics management. Many organizations are
promoting their logistics chiefs to executive vice presidents and senior vice
presidents for logistics. Senior logisticians are being included as members of
executive committees. This trend illustrates the institutionalization of the value of
logistics to the bottom line. Likewise, using logistics metrics in our organization
suite for planning and policy decision-making also is increasing. Electronic
technologies and applications have expanded to affect many aspects of logistics.
Many organizations have used electronic commerce to increase productivity as
they enhance business transactions, data and information exchanges, business
process reengineering, organizational changes, and process automation. With
increased ability to handle tremendous volumes of transactions and the ability to
amass, analyze, and control large quantities of specialized data, organizations
have improved efficiency and accuracy and reduced costs while providing faster,
more reliable, more convenient services. These capabilities and the concomitant
benefits will be further enabled by rapidly developing intelligent agent
technologies that greatly enhance information filtering, search, retrieval, and off-
line delivery. Electronic commerce and the sharing of information among entities
and organizations facilitate vendor-managed inventories (VMI), paperless
contracting, collaborative forecasting, and workflow management.

Outsourcing non-core competencies is a recognized best practice. The reasons

for outsourcing logistics functions include lower costs, a streamlined labor force,
access to top personnel, and cutting-edge technologies. According to the
Outsourcing Institutions, 85 percent of companies now outsource work they used
to do in-house. The key reasons to outsource a function are cost and
performance. Third-party logistics providers can leverage their core
competencies to improve organizational performance. They provide significant
economies of scale through their specialization. By partnering with world-class
providers of logistics defense organizations dramatically improves service,
profitability, and response times. The key to some of the best practices found in
world-class organizations is an integrated information system with total, real-
time asset and activity visibility. The technology and expertise currently exists to
leverage best business practices into commercial operations. Industry has found
that, to have successful implementation of these best practices, which would
have system-wide impact and/or result in extensive change, it must also have
top leadership's commitment, support, and involvement. The logistics system
cannot be successfully supported with the resources and infrastructure that are
currently projected. We need best-in class logistics practices. The coast guard
must partner with nationally recognized logistics providers when appropriate and
become a self sufficient force itself by leveraging the best organizations has to
offer. The challenge is to determine where and when to pursue each of these
industry-proven strategies.

Maintaining a viable logistics infrastructure between operations is also vital.

Today's logisticians throughout the defense forces are currently perform
numerous essential tasks every day, efficiently and with little fanfare. The ability
to project a sustainable force on a few hours notice is possible only through their
constant effort. In the same way, institutions need to maintain and pass on a
corporate memory and corporate culture to remain great. Defense logistics does
this well at all levels and in all components. However, the toll of the recent series
of draw downs has had its effect. In future sizing decisions, the viability of
institutions to continue operations and grow leaders must be considered. To do
less is mortgaging our national future. Creating an adequate logistics footprint
involves more than structural change. It also involves the development and
refinement of concepts, ideas, and materiel. The defense Training and Doctrine
Command is using a series of war games to bring together senior defense policy
makers to participate in scenario-driven exercises and discuss critical strategic
and operational issues that will shape the Coast Guard. Product improvements
and block materiel replacements will change the way the Coast Guard develops,
tests, acquires, and maintains equipment. There will be increased reliance on
split-based operations to reduce the logistics footprint in the theater of
operations. The number and type of weapon systems needed by sea going units
in the organization to hold and dominate terrain will change, and so will the
operational and tactical logistics requirements. Resupply, maintenance, and other
combat service support functions will be accomplished in completely different
ways or in the relative safety of a rear-area of remote location where Indian
Coast Guard operates. It is this relocation of functions that offers the greatest
potential for reducing the logistics footprint in the theater of operations. Indian
Coast Guard acquisition programs must emulate smart simple design or similar
initiatives to improve manufacture, assembly, and serviceability. Weapon
systems or major end items that have fewer parts and thus are easier to repair
and maintain will require lower levels of inventory and fewer maintenance
personnel to support them. Use of this methodology for Coast Guard weapon
systems could reduce logistics demands and contribute to an adequate logistics
footprint.

Other potential contributors to a responsive and efficient logistics footprint

include robotics, unmanned vehicles, intelligent agents, diagnostics and
prognostics, real-time communications, and fuel and energy efficiencies.
Advanced robotics technologies will replace people in missions such as
reconnaissance, material movement, and transport.

SUMMARY AND CONCLUSIONS

“Technology” is vehicle to enhance supply chain competitiveness and
performance by enhancing the overall effectiveness and efficiency of logistics
system. Hence choosing the right technology for various logistics activities or
sub-processes is very crucial to any organization to gain competitive advantage
in today’s competitive market.

The Indian Coast Guard need to transform is like that of many other
organizations undergoing dramatic change. The Indian Coast Guard is facing
many of the same challenges. World-class companies must transform their
support structures if they expect to continue to dominate their logistics sectors.
To sustain their competitive edge, these commercial industries have re-
engineered their processes, contracted out services and products when such
outsourcing provided better performance at a lower cost, incorporated emerging
technologies, and overcame institutional resistance when many wanted to
maintain the “status quo.” The Coast Guard must revolutionize its logistics
program and provide support on time, in the right place and in the right quantity.
It must become predictive, anticipatory, and responsive. Our logistics system
must be able to anticipate problems before they occur. Technology can enable
accurate predictability. Through the implementation of state-of-the-art
information systems, the coast guard can monitor consumption of expendables
supplies (such as fuel, repair parts, ammunition, rations) on a daily basis at the
national level as well as at the unit level. Fully exploited, these systems can also
automatically deliver supplies at the level required, consistent with available
resources on a competing priority basis.