Port Logistics Information Systems

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SouthStar Management Institute, Da Nang, Vietnam.

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POWERPOINT PRESENTATION must request
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Dr. Luis Alfaro

Director of Ports, Logistics and SCM
DUY TAN UNIVERSITY
The SouthStar Management Institute (SMi)
254 Nguyen Van Linh St., Danang, Vietnam
T: (+84) 236.365.0403 (Ext. 606) - (+84) 236.382.7111
E: [email protected] │ [email protected]
W: http://smi.edu.vn/
LOGISTICS INFORMATION SYSTEMS

CHAPTER 1:

INTRODUCTION
INTRODUCTION TO PORT LOGISTICS
INFORMATION SYSTEMS
Chapter Outline INTRODUCTION
01

02 QUESTIONS

03 FUTURE TRENDS

04 APPROACH
Chapter Outline LOGISTICS DISCIPLINE:
01 SCM NETWORKING

02 RFID AND SCM

03 LOGISTICS
MANAGEMENT

04 INFORMATION SYSTEMS
DISCIPLINE
 INTRODUCTION

❑ The shift in the economy from the industrial era to the information age
has profound implications for the management of the modern enterprise

❑ Issues of ASEAN Connectivity in physical, people, and institutional

connections

❑ Supply Chain Management is a relatively new discipline within the firm

and originally dealt with the transportation and storage of goods, an
advanced supply chain program coordinates activities across
management functions
 INTRODUCTION

❑ In addition to transportation and distribution, other areas influenced by

logistics include customer service and quality management, inventory
management, location, strategic planning, procurement, and logistics
information systems

❑ The intent of this presentation is to introduce the participants to the

important concepts of Logistics Information Systems

❑ In addition, a special attention is given to how information technologies

will transform the business landscape on logistics and supply chains
 QUESTIONS

1. What if Logistics united with Information Systems?

A theoretical framework is developed to specify the

relationships between L and IS for logistics innovation

2. What are the challenges posed by Logistics

Information Systems?

LIS as a subject and a logistics education

 FUTURE TRENDS

1. What if Logistics united with Information Systems?

A theoretical framework is developed to specify the

relationships between L and IS for logistics innovation

2. What are the challenges posed by Logistics

Information Systems?

LSI as a subject and a logistics education

FUTURE TRENDS

Figure 1: The Evolution of Supply Chain Integration

FUTURE TRENDS:
The Evolution of Supply Chain Integration

Figure 2: The Evolution of Supply Chain Integration

 FUTURE TRENDS:
The Evolution of Supply Chain Integration
Figure 1 and 2

The evolution of supply-chain integration, leading to increased

benefits – Anderson (2000)

Using the Internet to connect the systems of supply-chain

partners will become the medium through which the essential
processes of managing and synchronizing supply chains are
carried out.
 FUTURE TRENDS:
The Evolution of Supply Chain Integration
Figure 1 and 2

As it does so, it will change the nature of supply-chain

businesses completely. Anderson (2000) states, “A company
that misses this distinction [integration versus synchronization]
is in grave danger. It may find itself celebrating the squeezing
of supplier margins at auction or the reduction in inbound
inventory by sharing forecasts while its competitor builds a
tightly linked alliance that shuts it out of the channel to the
market completely.
 APPROACH

What is Logistics?

What is Information Systems?

What is Logistics Information Systems = Uniting L and IS?

 LOGISTICS DISCIPLINE

❑ Logistics is the field of study to focus on the design, control,

and implementation of the efficient flow and storage of
goods and services and other related information from the
point of origin to the point of final consumption with an aim
to satisfy the requirements of its existing and prospective
customers

❑ The management of Logistics involves the integration of

information, transportation, inventory, warehousing, material
handling, and packaging, and often security.
 A SUPPLY CHAIN = A NETWORK OF LOGISTICS

❑ Logistics is the field of study to focus on the design, control,

and implementation of the efficient flow and storage of
goods and services and other related information from the
point of origin to the point of final consumption with an aim
to satisfy the requirements of its existing and prospective
customers

❑ The management of Logistics involves the integration of

information, transportation, inventory, warehousing, material
handling, and packaging, and often security.
A SUPPLY CHAIN = A NETWORK OF LOGISTICS

Figure 3: Future Supply Chain Model

 A SUPPLY CHAIN = A NETWORK OF LOGISTICS

Tag reads at the gate;

1. Passive tag labeling 7.
manifest for shipment

Carrier track
2. Passive tag labeling 8. ship/airplane, provides
visibility

Tag reads when

3. Active tag labeling 9.
discharged or reloaded

Tag reads when truck Tag reads at discharge

4. 10.
departs and at truck departure

Automatic capture of Tag reads and content

5. 11.
transaction reconfiguration

Active tag with manifest Breaking pallets into

6. 12.
data labeling individual items

Table 1: Future Supply Chain Model

 RFID AND SUPPLY CHAIN MANAGEMENT:
Security and Reliability

RFID (Radio Frequency Identification) technology can be

expressed in the most universal manner as wireless
identification technology, which does not need the line-of-sight
to be read or written. It offers enhancement of identification
technologies like barcode technology. Optical barcode
technology was developed in 1948 by Silver and Woodland at
Drexel Institute of Technology and first commercially used in
1966 (Adams, 2002).
 RFID AND SUPPLY CHAIN MANAGEMENT:
Security and Reliability

Barcode technology stores data in the widths and spacings of

printed parallel lines, or in patterns of dots, concentric circles,
and hidden within images. The most extended is UPC code
which was invented in 1973 and since then became everyday
part of our life.

Other commonly used types of barcodes are Code 128, Code

93 (Groover, 1980) and DataMatrix 2D barcode. At this time,
mostly the barcodes are keeping inventory and shipments
moving.
 RFID AND SUPPLY CHAIN MANAGEMENT:
Security and Reliability

RFID and barcode technology complement each other because

both of them are beneficial in different situations and can be
used together in many applications.

RFID technology has several advantages for managing and

collecting object’s data or tracking it as it moves through the
supply chain (SC). Two of them are related to the increased
abilities of security and reliability of the identification systems.
These two properties of identification technologies are equally
important for their use in supply chain management (SCM).
 RFID AND SUPPLY CHAIN MANAGEMENT:
Security and Reliability

RFID and barcode technology complement each other because

both of them are beneficial in different situations and can be
used together in many applications.

RFID technology has several advantages for managing and

collecting object’s data or tracking it as it moves through the
supply chain (SC). Two of them are related to the increased
abilities of security and reliability of the identification systems.
These two properties of identification technologies are equally
important for their use in supply chain management (SCM).
 RFID AND SUPPLY CHAIN MANAGEMENT:
Security and Reliability

When talking about reliability of automatic identification

technology, an attention might be focused on the ability of
readers to identify codes from tags at the first time. The potential
interferences of barcodes make optical barriers such as objects
placed between barcode and reader or dirt. Also, they are
unreadable under extreme atmospheric conditions such as
steam or when vertical damage occurs. Barcode readers are
sensitive to dirt, dust, or other foreign object obstructing the
lens. But 2D barcodes can be read even if part of the tag is
destroyed.
 RFID AND SUPPLY CHAIN MANAGEMENT:
Security and Reliability

When talking about reliability of automatic identification

technology, an attention might be focused on the ability of
readers to identify codes from tags at the first time. The potential
interferences of barcodes make optical barriers such as objects
placed between barcode and reader or dirt. Also, they are
unreadable under extreme atmospheric conditions such as
steam or when vertical damage occurs. Barcode readers are
sensitive to dirt, dust, or other foreign object obstructing the
lens. But 2D barcodes can be read even if part of the tag is
destroyed.
 RFID AND SUPPLY CHAIN MANAGEMENT:
Security and Reliability

Passive RFID tags can interference with environments or fields

and various materials such as liquids and metals that affect
transmission of radio frequency. Active tags are less susceptible
to interference. Despite this, they can be read under extremer
weather conditions than barcodes. It is not clear whether tags,
that could not be read, can be entered manually as barcodes.
Reliability seems to be solved these days by knowing RFID
physics (Schlosser, 2004). But there is no universal solution for
implementation of RFID at all.
 RFID AND SUPPLY CHAIN MANAGEMENT:
Security and Reliability

Security of RFID technology in supply chain

management can be seen from many aspects: health (radiation
of devices), personnel or vehicle access control and tracking,
inventory location, privacy issues, third-person attacks, software
and hardware protection, encryption and tracking origin of goods
(very important for food safety).
 RFID AND SUPPLY CHAIN MANAGEMENT:
Security and Reliability

Data security of RFID technology depends on the class and

generation of RFID tag. From the health aspect, there are no
concerns about the risks. One can never be sure, but this is
scientifically proved. For example frequencies 13.56 MHz, 915
MHz and 2.45 GHz have been used for many years without any
known problems if levels are below 1 watt or 4 watt at frequency
13.56 MHz (Wyld, 2005).
RFID AND SUPPLY CHAIN MANAGEMENT:
Security and Reliability

Table 2. Levels of RFID in Supply Chain Application

RFID AND SUPPLY CHAIN MANAGEMENT:
Security and Reliability

Table 3. Levels of RFID in Supply Chain Application

 RFID AND SUPPLY CHAIN MANAGEMENT:
Key Terms

Automatic identification (auto-ID): A broad term

encompassing technologies used to help machines identify
objects. A host of technologies fall under the automatic
identification umbrella, including barcodes, biometrics, smart
cards, voice recognition and RFID

EAS (electronic article surveillance): Loss-prevention

technology using passive RFID surveillance. This surveillance
uses simple electronic tags that can be turned on or off. When
an item is purchased at a store or checked out
 RFID AND SUPPLY CHAIN MANAGEMENT:
Key Terms

EPC (electronic product code): A unique number, stored in

the chip on an RFID tag, that identifies an item in the supply
chain allowing for tracking of that item (EPC number). Also it is
a protocol for data communication and data storage (EPC
protocol)

Interrogation Zone: The area where RFID tag can be powered

up and read, often between an array of antennas.
 RFID AND SUPPLY CHAIN MANAGEMENT:
Key Terms

Middleware: Software for processing the streams of tag or

sensor data from one or more readers and filters, aggregate
and counts tag data. This process reduces amount of data
before sending them to enterprise application

Transponder: It receives and transmits radio signals at a

prescribed frequency range. After receiving the signal a
transponder will at the same time broadcast the signal at a
different frequency
 RFID AND SUPPLY CHAIN MANAGEMENT:
Key Terms

Reader (also called an interrogator): A device that

communicates with RFID tags. The reader has one or more
antennas, which emit radio waves and receive signals back
from the tag. Readers may have a digital display to relay
information to the operator and may transmit data on to an
organization’s computer network infrastructure. Readers can be
either fixed or portable, and today they are beginning to be
integrated into other electronic devices, such as PDA (personal
digital assistant) and cell phones, and even into objects such as
pens
 RFID AND SUPPLY CHAIN MANAGEMENT:
Key Terms

UPC (universal product code): The barcode standard used in

North America and administered by the Uniform Code Council
(UCC)
THREE TYPES OF FLOW IN SUPPLY CHAIN

Figure 4. Types of Flow in Supply Chain

THREE TYPES OF FLOW IN SUPPLY CHAIN:
The Fresh Food Supply Chain

Figure 5. The Fresh Food Supply Chain

 LOGISTICS MANAGEMENT

❑ Understand the role of logistics in an enterprise

❑ Define customer service
❑ Describe electronic and other logistics information systems
❑ Explain inventory management
❑ Explain materials management with special reference to
Japanese systems
❑ Define supply chain management
❑ Explain the methods of transport
 LOGISTICS MANAGEMENT

❑ Illustrate the calculation of transport cost

❑ Illustrate the types and costs of warehousing
❑ Explain electronic aids in materials handling cost and price
determination of purchases
❑ Explain how logistics can be organized
❑ Explain methods for improving logistics performance
LOGISTICS MANAGEMENT:
Integrated Logistics

Figure 6. Integrated Logistics

LOGISTICS MANAGEMENT:
Example of Integrated Logistics

Figure 7. Example of Integrated Logistics

 INFORMATION SYSTEMS DISCIPLINE

❑ Information Systems is an applied discipline that studies the

processes of the creation, operation, and social contexts and
consequences of systems that manipulate information

❑ The creation and operation of such systems requires the

sub-processes of systems analysis, design, development
and management which are bracketed at the beginning by
social context and at completion by social consequences
 INFORMATION AND SCM
❑ What is the role of Information Systems and Information
Technology in supply chains?

❑ Information technology (IT) is an important enabler of

effective supply chain management (Simchi-Levi et al., 2008)
– IT has potential to enhance the capabilities of a firm for
sustained innovation of its business processes

❑ The purpose of Information Systems (IS) is to gather,

categorize, store and spread all information that is needed to
make the organization both grow and prosper
 LOGISTICS AND INFORMATION SYSTEMS
❑ What is the role of Information Systems and Information
Technology in supply chains?

❑ Information technology (IT) is an important enabler of

effective supply chain management (Simchi-Levi et al., 2008)
– IT has potential to enhance the capabilities of a firm for
sustained innovation of its business processes

❑ The purpose of Information Systems (IS) is to gather,

categorize, store and spread all information that is needed to
make the organization both grow and prosper
LOGISTICS AND INFORMATION SYSTEMS

Figure 8. Framework of Logistics Information Systems

 LOGISTICS INFORMATION SYSTEMS (LIS)

❑ Logistics is the field of study to focus on the design and

implementation of the efficient flow and storage of goods
from the point of origin to consumption

❑ Information System is the field of study to deal with problems

against the design, development, implementation, application
of information system

❑ Logistics Information Systems (LIS) is a new discipline that

unifies Logistics and Information Systems
 KEY BUILDING BLOCKS OF LIS

❑ Logistics Information Portal: Transactional and Analytical LIS

❑ Logistics Computing and Simulation
❑ Decision Support System
❑ Database and Data Mining
❑ E-Logistics and E-Commerce
❑ Logistics Process Management
❑ IT and Software: CRM, ERP, CRM, ERP, RFID, TMS, and
WMS
❑ LIS Applications: port, retail, energy, humanitarian,
agriculture, military, trade, manufacturing
ANALYTICAL AND TRANSACTIONAL LIS

Figure 9. Framework of Analytical and Transactional LIS

ANALYTICAL AND TRANSACTIONAL LIS

Figure 10. SAP Logistics Information System

ANALYTICAL AND TRANSACTIONAL LIS:
Hitachi Transport System

Figure 11. Hitachi Transport System

 MANIFESTATION OF LIS:
A New Competence as a Course

❑ LIS is designed to provide professionals working within the

logistics and operations management area with the skills to
manage the flow of materials and information within and
between organizations and their business environment

❑ It incorporates both practical and theoretical aspects of

logistics information systems to assist managers in
increasing business efficiency
 MANIFESTATION OF LIS:
Skills Development

❑ Interpersonal skills: Promoting active discussion and

exchange of ideas in class will help participants develop
strong skills in this area
❑ Communication skills: Having a point and being able to get it
across in a way that is clear, crisp and concise by promoting
students’ in class presentations
❑ Ability to be a continuous learner and trainer of others:
Knowing how to learn on an ongoing basis, how and where
to gather the right information (library and online search).
 MANIFESTATION OF LIS:
Skills Development

❑ Global Awareness: Developing knowledge of some LIS used

around the world
❑ Quantitative skills: Understanding how to use information
systems in SCM
❑ Ability to manage information technology tools: Using
software, internet, attached files, Power Point, E - mail, etc.
❑ Ethical Awareness: Understanding ethical responsibilities in
using Logistics software
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DR. LUIS ALFARO
DIRECTOR OF PORTS, LOGISTICS AND SCM
SOUTHSTAR MANAGEMENT INSTITUTE, DA NANG, VIETNAM
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