Page 133 - DMGT523_LOGISTICS_AND_SUPPLY_CHAIN_MANAGEMENT

Logistics and Supply Chain Management

Notes providers that do not have transaction volumes to justify EDI. XML is facilitating communication
by breaking down many information technology barriers that have constrained EDI adoption.
A basic XML message consists of three components: the actual information being transmitted,
data tags, and a DTD (Document Type Definition) or schema. The data tag is a key feature as it
defines the data being transmitted.

Example: In a shipment XML, the tag for address would be “address” and might appear
<address>123 Main St.</address>.
The tags tell computers what the data between the brackets are and where the data should go in
a database or Web page. The use of common terms and the lack of sequencing requirements
make XML transactions much easier to use than EDI. The XML DTD or schema tells the computer
what document format to refer to when decoding a message. A DTD is essentially a template
that maps out a standard form, its tags, and their relation to a database.

Example: There would be separate schema for customer orders, advanced shipping
notifications, or transportation documentation.

In situations characterized by low volume, XML is superior to EDI for three reasons. First, it is
not expensive to install. It is easy to design an application and requires much less time to
implement. Second, XML is easy to maintain because it can be easily converted to HTML
(HyperText Markup Language), the language of Web browsers. This makes it much easier to
modify and share data between applications. Finally, XML is more flexible, allowing for broad
applications and quick definition and extension of standards. One of the major challenges for the
growth of XML is the definition of industry standards. Launched in 1998, Rosettanet, a consortium
of over 60 companies, has begun developing common definitions for business practices and
products as well as standards for using XML to transmit information through the supply chain.
Such a common vocabulary is necessary to enable supply chain participants to communicate
with each other and have the confidence that the information exchange is secure.

6.5.4 Satellite Technology

Satellite technology allows communication across a wide geographic area such as a region or
even the world. The technology is similar to microwave dishes used for home television in
areas outside the reach of cable. Satellite communication provides a fast and high-volume
channel for information movement around the globe. Schneider National, a nationwide truckload
carrier, uses communication dishes mounted on its trucks to enable two-way communication
between drivers and their dispatchers. Such real time interaction provides up-to-date information
regarding location and delivery information and allows dispatchers to redirect trucks based on
need or congestion. Retail chains also use satellite communication to quickly transmit sales
information back to headquarters. Walmart uses daily sales figures to drive store replenishment
and to provide input to marketing regarding local sales patterns.

6.5.5 Radio Frequency Exchange

Radio Frequency Data Communication (RFDC) technology is used within relatively small areas,
such as distribution centres, to facilitate two-way information exchange. A major application is
real time communication with mobile operators such as forklift drivers and order selectors.
RFDC allows drivers to have instructions and priorities updated on a real time basis rather than
using a hard copy of instructions printed hours earlier. Real time instructions to guide work
flow offer increased flexibility and responsiveness and have the potential to improve service
using fewer resources.

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