Role of technology in logistics

Project submitted by:

Ranjeet. Ramaswamy. Iyer

T.Y.B.M.S- B div.

Technology

•It is the usage of and knowledge of tools, techniques, crafts etc.

•Derived from the Greek word technologia.

• ‘Techne’ means art, skill or craft and ‘logia’ means study of something.

•It is a means to enhance business means & competitiveness.

Role of technology•It plays a major role in operational

effectiveness & efficiency of various functional areas.

•I.T has become a great boon for information processing & analysis.

•Adoption process in India is a bit slower as compared to other countries.

•But liberalisation has built a competitive pressure on Indian companies.

Latest technologies in the logistics

• Latest technology in the logistics are in the areas of:

1. Automatic identification

2. Communication

3. Material handling

4. Information Technology

1. Automatic Identification Technology

•Direct entry of data or information into computer without operating a keyboard.

•Includes bar coding, RFID, data-communication, magnetic strip & voice recognition.

•It can be used for tracking rail cars, a carton moving on a conveyor belt etc.

1.1. Bar Coding

• Used for identification, handling, retrieval & storage of goods.

• Individual inventory items, cartons etc are affixed with barcodes.

• They are a sequence of parallel lines of different thickness & with spaces in between.

•These barcodes can be read by a barcode scanner attached to an online computer.

•Barcode helps it showing an inventory’s identity during storage, retrieval & dispatch.

•They are also used by accounts departments for preparation of bills.

•These bars have items have information in a codified form which can be decodified with the help of a scanner.

Advantages of bar coding

•Facilitates easy identification of items during storage, packing, dispatch & transit.

•Reduce paper work & time consumed for process.

• Increase the productivity of warehouse.

•Facilitate system automation.

1.2. Radio Frequency Identification

• It is automated identification & data capture technology.

• It is one of the most preferred forms these days.

• It helps in communication between objects & systems.

• It consists of 2 main elements- a tag & a reader that communicate through radio transmission.

•The tag contains a small chip & an antenna and can be placed on any object.

• Information stored on the tag can be transmitted to an RAD reader over a distance of few meters.

• Information stored may be product type, product item, manufacturer, date expiry etc.

•RFID is been used in passports.

•The first RFID passport was used in Malaysia in 1998.

Advantages of RFID

•Proper inventory control & distribution.

•Improved information flow.

•Labor cost reduction.

•Speed & accuracy.

•Reduced administrative errors.

Bar coding v/s RFID

Bar coding RFID

Individual reading Simultaneous reading

High labor costs Automated: low labor costs

Limited information memory Large information memory

Easy to replicate for criminals Difficult to replicate

2. Communication technology

•Communication has a very crucial role in business success.

•Latest technology in communication has ensured that there is speed & accuracy in customer service.

•These technology has enabled superior customer service leading to competitiveness.

2.1. Global Positioning System

• It is a space-based global navigation system that provides reliable location of objects.

• In logistics, GPS can be used for tracking the locations of trucks carrying goods.

• Once the position of vehicle is known, it can be transmitted through other

centers.

• Transmission network will be a mobile phone or internet.

• GPS system has a voice-over facility for driver to speak & hear instructions.

• A GPS receiver needs to be mounted on the truck.

• It also has LCD supported by a keyboard to transmit & receive text massages.

• GPS is mostly used in developed countries.

• In India, its used at very limited place.

• This system costs about ` 25,000 per truck.

•GPS is also used for tracking the direction of vehicles, duration of halt, to check over-speeding etc.

•In India, BMTC uses GPS technology.

•BMTC could recover their lost bus stolen by thieves the very next day using GPS technology.

•Information collected from the GPS would be in latitudes & longitudes.

Advantages of GPS

•Greater saving of time.

•Greater security.

•Increased productivity.

•Reduction in cost.

2.2. E- Tracking• It involves truck drivers calling their offices

at regular intervals in a day to notify his position.

•This becomes costly if information is to be conveyed to both consigner & consignee.

• It costs about ` 7000 per vehicle per month.

•For PDS tracking, collector of Tiruchirapalli gifted mobile phones to employees on 14th August 2010.

3. Automated Material Handling

•Automation for loading, unloading, storing of goods in warehouses.

•It will reduce the intensity of labor in these activities.

•Automation will be more useful where handling of hazardous material takes place.

3.1. AGVS•It stands for Automated Guided Vehicle

System.

•This system makes use of magnetic or optical guidance system.

•It is a mobile robot that follows markers or wires in the floor.

•These robots can be programmed by built-in micro-processors for performing various tasks in warehouses.

•AGVS can perform its functions without any human involvement.

•In multi-storey warehouses, the ASRS are in use because of greater importance to automated unit load handling.

3.2. Information Directed System

•This system keeps all equipments in the warehouse under the control of a centralised computer.

•The required movements are fed into a computer for analysis.

•The computer assigns the jobs to individual equipments.

•The communication is through radio-frequency.

•These systems can do a variety of complex material-handling jobs by same equipment.

•This system ensures flexibility in handling a variety of jobs.

•This is recently developed, so it is still in the testing stage.

4. Information Technology

•Using I.T, it is easier to implement programs.

•One of the recent I.T tool is the ERP i.e. Enterprise Resource Planning.

•I.T tools are being used by LSPs in an increasing rate similar to other sectors.

4.1. ERP

• It stands for Enterprise Resource Planning.

• It is a way to integrate the data & processes of an organization into one single system.

• Its purpose is to facilitate flow of information between all business functions inside the boundaries of the organisation.

•ERP is very expensive, large & complex.

•ERP finds its use in SCM as SCM focuses on optimizing movement of goods through the logistic system of the enterprise.

•Indian company Ramco Systems have developed ERP to suit the Indian business environment.

Advantages of ERP

•Quicker response to customer requirement.

•Reduction in inventory costs.

•Improvement in service levels.

•Reduction in logistical cost.

Bibliography

•Information & pictures taken from various websites through Google.

•Book referred: Logistics Management by V.V. Sople (2nd edition)

Thank You