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Ho Chi Minh city University of TransportFaculty of Transport Economics Logistics Science Division *** Compiled by M.Sc Nguyen Huynh Luu Phuong Internal Use only Logistics Information Sys

Ho Chi Minh city University of Transport

Faculty of Transport Economics

Logistics Science Division

***

Compiled by M.Sc Nguyen Huynh Luu Phuong

(Internal Use only)

Logistics Information System

1

* Agenda:

Chapter 1: Logistics Information System Overview

Chapter 2: Techniques and technologies for LIS

Chapter 1: Logistics Information System

Overview

1.1 Some words about Logistics:

implementing, controlling the efficient & effective flow of

goods, services and related information from the point of origin

to the point of consumption for the purpose of conforming to

❑ Information is a collection of data organized in such a way that they have

additional value beyond the data themselves

❑ Process is a set of logically related tasks performed to achieve a defined

outcome

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Monthly Sales Report for West RegionSales Rep: Charles Mann Emp No 79154 Item Qty Sold Price

TM Shoes 1200 $100

1200 100

West Charles Mann

79154 TM Shoes

❑ Information should be viewed as processed data which has been placed in a

context that gives it value for specific end users

1.2.1 Data v.s Information:

❑ Data structure:

1.2.1 Data v.s Information:

❑ Knowledge is an understanding of a set of rules that are followed to convert

data into information and how that information can be made useful to support a

specific task

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Monthly Sales Report

for West Region

Sales Rep: Charles Mann

toward a common goal

by accepting inputs andproducing outputs in anorganized

Signals

1.2.2 System:

❑ Efficiency

Measure of what is produced divided by what is consumed

❑ Effectiveness

Extent to which system attains its goals

❑ System performance standard

Specific objective of the system

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1.2.2 System:

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1.2.3 What is Information System?

❑ An information system is a set of interrelated components that collect (or

retrieve), process, and distribute information to support decision making and

control in an organization

1.2.3 What is Information System?

❑ Components of IS:

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1.3 Logistics Information System:

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Design and implementation

of the efficient flow and

storage of goods

Design, development, installation, and application

of information system

A new discipline? That unifies Logistics and Information System

+

Logistics Information System

1.3 Logistics Information System:

Once we’ve already built a LIS, we’ll be able to:

❑ ReduceOrder Processing time

❑ Facilitatereceiving and shipping order process

❑ Maketransport more efficient

❑ Queryinformation immediately

❑ Trackflow of goods

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1.3 Logistics Information System:

❖ Information technology will affect the growth and development of Logistics

❖ Computers are used to support Logistics Activities

❖ Decision support system, artificial intelligence and expert system are being used

to support decision making in logistics

1.3 Logistics Information System:

1.3.2 Customer Order Cycle:

1 Customer

places order

5 Order shipped to customer

6 Order delivered to customer

1.3.3 How do customer orders enter the firm’s order

processing function?

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Traditional Order Placement

1.3.3 How do customer orders enter the firm’s order

maintenance

Consistency Accuracy

High investment cost, low operating cost

Characteristics of various order processing systems

Chapter 2: Techniques & Technologies for LIS

2.1 Electronic Data Interchange (EDI):

2.1.1 EDI Overview:

Electronic Data Interchange is the transfer of business data between computer

applications using a mutually agreed standard to describe the data contained in the

2.1.1 EDI Overview:

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2.1.1 EDI Overview:

❑ Benefits of EDI:

✓ Reduction of data entry errors

✓ Quick updates of information

✓ Cost saving & Increased efficiency

✓ Increased communications between supplier and consumer

✓ Improvements in business process

✓ Information in electronic forms is easily shared over the organization

…

2.1.2 EDI Components:

❑ Communication: Transportation of the EDI file over a network can be done in

many ways Any network and any protocol can be used as long as it fits the

needs Two types of communication are discussed here:

✓ Internet (AS1, AS2, FTP, etc.)

✓ Value-added network (VAN)

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2.1.2 EDI Components:

❑ EDI format: The most commonly used message standard are:

▪ ANSI ASC X12 – US standard

▪ EDIFACT – recommended by United Nation

▪ UNTDI – UK retail standard

Common X12 standard EDI documents include:

204 Motor Carrier Load Tender

210 Motor Carrier Freight Details and Invoice

214 Transportation Carrier Shipment Status Message

810 Invoice

820 Payment Remittance Advice

824 Application Advice

830 Planning Schedule/Material Release

832 Price Sales Catalog

846 Inventory Inquiry/Advice

850 Purchase Order

852 Product Sales Activity Data

855 Purchase Order Acknowledgment

2.1.2 EDI Components:

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Common X12 standard EDI documents include (cont.):

856 Advance Ship Notice

860 Purchase Order Change

861 Receiving Advice

864 Text Message

865 Purchase Order Change Acknowledgment

869 Order Status Inquiry

2.1.3 EDI Implementation:

❑ Cost considerations:

The most important thing to consider is the bottom line - how much your

system will cost to implement and maintain versus how much increase in revenue

you will generate with your system

If you do a large amount of EDI transactions on a daily basis with many of

your customers, then you will want to invest in a system that has a high level of

automation Otherwise, you will be able to use an online service

Yeah, I can do it.

2.2 Radio Frequency Identification (RFID):

2.2.1 RFID definition:

Radio frequency identification (RFID) is a generic term that is used to describe a

system that transmits the identity of an object or person wirelessly, using radio

waves

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Why do we use RFID instead of Barcode???

2.2.2 Elements of an RFID System:

RFID systems fundamentally consist of two main elements:

• RFID tag (transponder)

• RFID reader/writer

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2.2.2 Elements of an RFID System:

2.2.2.1 RFID tag (Transponder):

❑ RIFD tag construction formats:

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Disk or Coins

2.2.2 Elements of an RFID System:

2.2.2.1 RFID tag (Transponder):

❑ RIFD tag construction formats:

2.2.2 Elements of an RFID System:

2.2.2.1 RFID tag (Transponder):

❑ RIFD tag construction formats:

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Smart label

2.2.2 Elements of an RFID System:

2.2.2.1 RFID tag (Transponder):

❑ Frequency, Ranging, Memory capacity:

- RFID systems are operated at widely differing frequencies, ranging from 135kHz

long wave to 5.8GHz in the micro wave range

- The achievable range of the system varies from a few milimetres to above 15m

• Close coupling system (up to 1 cm)

• Inductive radio system (up to 1 m)

• Long range system (above 1 m)

- Memory capacity varies from 256 Bytes to 64 KBytes

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2.2.2 Elements of an RFID System:

2.2.2.1 RFID tag (Transponder):

❑ Active and Passive Transponder:

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2.2.2 Elements of an RFID System:

2.2.2.2 RFID reader/writer:

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RFID reading/writing software (base software)

2.2.2 Elements of an RFID System:

❑ EPC RFID Classes:

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2.2.3 Near field communication (NFC):

▪ The tags you see or create include contacts, URLs, map locations, text and much

more

▪ NFC is a short-range wireless technology that allows

communication between NFC enabled objects over a

distance of less than 20cm

▪ NFC is based on Radio Frequency Identification (RFID)

standards

▪ NFC Specifications:

2.2.3 Near field communication (NFC):

• Active mode

• Passive mode

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2.2.3 Near field communication (NFC):

NFC provides a range of benefits to consumers and businesses, much depends upon

the installation of NFC, but the main benefits are:

▪ Intuitive– NFC interactions require no more than a simple touch

▪ Versatile – NFC is ideally suited to the broadest range of industries,

environments, and uses

▪ Open and standards-based- The underlying layers of NFC technology follow

universally implemented standards

▪ Technology-enabling - NFC facilitates fast and simple setup of wireless

technologies, such as Bluetooth, Wi-Fi, etc

▪ Inherently secure- NFC transmissions are short range

▪ Interoperable– NFC works with existing contactless card technologies

▪ Security-ready- NFC has built-in capabilities to support secure applications

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2.2.4 Selection criteria for RFID systems:

❑ Operating frequency:

➢ High frequency systems have a significantly higher range than low frequency

systems Better reading speed rate

➢ Absorbtion rate: Low frequency is better then high frequency

➢ Electromagnetic interference fields: High requency is better

❑ Range: The required range of an application is dependent upon several factors:

➢ The positional accuracy of the transponder for security reason (reader and

transponder);

➢ The minimum distance between several transponders in practical operation The

distance between the transponders must be such that only one transponder is ever

within the interrogation zone of the reader at a time;

➢ The speed of the transponder in the interrogation zone of the reader

❑ Security requirement: micro processor should be used

2.2.3 RFID applications:

2.2.3.9 Waste Disposal:

The more garbage you

throw away, the more

you pay

2.3 Enterprise Resource Planning (ERP):

2.3.1 Problems you may encounter:

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What will you do if you are

assigned to make some

purchases?

2.3 Enterprise Resource Planning (ERP):

2.3.1 ERP Definition:

▪ ERP is a fully integrated business management system covering functional areas

of an enterprise like Production, Finance, Accounting and Human Resource…

▪ It organizes and integrates operation processes and information flow to make

optimum use of resources such as men, material, money and machine

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2.3.2 ERP Main Components:

➢ The client server technology enables ERP to be changed once and all

components will be affected

2.3.3 ERP Characteristics:

▪ Modular & Open:

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➢ Attachment or detachment module

can’t make system shutdown

➢ Accept third party add-ons

2.3.3 ERP Characteristics:

▪ Comprehensive:

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➢ It should be able to support variety of

organizational functions and must be suitable

for a wide range of business organizations

2.3.3 ERP Characteristics:

▪ Beyond the company:

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➢ It should not be confined to the organizational

boundaries, rather support the on-line connectivity

to the other business entities of the organization.

2.3.3 ERP Characteristics:

▪ Best business practices:

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➢ It must have a collection of the best

business processes applicable worldwide

2.3.4 Why company undertakes ERP:

Integrate customer order information Standardize and speed up

manufacturing process

2.3.5 Benefits of ERP:

❑ Reduction in paper documents

❑ Improvement in timeliness of information

❑ Greater accuracy of information

❑ Improvement in cost control

❑ Faster response to customers, business operations, market conditions

❑ Better monitoring and quicker resolution of queries

❑ Achievement in competitive advantage

❑ Improvement in supply-demand linkage with remote locations and branches in

different countries

❑ Unique customer database usable by all applications

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2.3.7 ERP Implementation Methodology:

Several steps are involved in the implementation of a typical ERP Package These

are:

1 Identifying the needs for implementing an ERP Package.

2 Evaluating the “As is” situation of the business.

3 Deciding the “would be” situation for the business.

4 Reengineering the business process to achieve the desired results in the

existing processes

5 Evaluating the various available ERP packages to assess suitability.

6 Finalizing the most suitable ERP package for implementation.

7 Installing the required hardware and networks for the selected ERP package.

8 Finalizing the implementation consultants who will assist in implementation.

9 Implementing the ERP package.

▪ The Global Positioning System (GPS) is a utility that provides users with

positioning, navigation, and timing services

2.4.4 GPS Accuracy:

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Sorry, wrong target

U-to the hell Sorry, I make a mistake.!!!

I’m… I’m at work…

Hurry up! I can’t wait longer

2.5 Bar Code:

2.5.1 Barcode overview:

▪ A barcode is an optical machine-readable representation of data relating to the

object to which it is attached

▪ There are 2 main types of barcode used in many fields nowadays:

2.5.3 2D Barcode:

• 1D Barcode has some disadvantages To find the solution to this problem, 2D

Barcode was invented

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2.5.3 2D Barcode:

• As with 1D codes there are lots of variations of 2D codes including QR Code,

Color Code, EZcode, Aztec code, Bullseye, MaxiCode, 3-DI, Shot Code and

2.5.3 2D Barcode:

• Storage capacity: The amount of data that can be stored in the QR Code symbol

depends on the data type, version, and error correction level The maximum

storage capacities, for instance, occur for 40-L symbols

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Numeric only Max 7,089 characters (0, 1, 2, 3, 4, 5, 6, 7, 8, 9)

Alphanumeric Max 4,296 characters (0–9, A–Z [upper-case only], space, $, %, *, +, -, ,

/, :)

Binary/byte Max 2,953 characters (8-bit bytes) (23624 bits)

Kanji/Kana Max 1,817 characters

2.5.3 2D Barcode:

• Error correction: use the Reed–Solomon error correction algorithm with four

error correction levels They are:

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Level L (Low) 7% of codewords can be restored

Level M (Medium) 15% of codewords can be restored

Level Q (Quartile) 25% of codewords can be restored

Level H (High) 30% of codewords can be restored

2.6 Applications:

• Let’s read this comic strip

2.6 Applications:

Entering the room, he doesn’t know which place he should visit first He goes to

instruction map and takes his tablet near the tag barcode Instantly, he receives a

e-map on his tablet He enters the keyword that he’s interested in and it shows him

2.6 Applications:

He sees some new chairs and he is considering buying it By scanning hanging tag

barcode, he download e-brochure about that chair immediately onto his tablet

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2.6 Applications:

After much heart-searching, he decides to choose a luxury chair with unbelievable

price – 40 million VND He sees a tag barcode below the chair image That sign tells

“Order now” By scanning this tag, he is able to quickly place his order with an easy

2.6 Applications:

He goes home with a satisfied smile on his face He is right to escape from school

time, It’s worth doing it (Don’t tell this story to anyone otherwise he’ll be fired)

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