Page 134 - DMGT523_LOGISTICS_AND_SUPPLY_CHAIN_MANAGEMENT

Unit 6: Information Technology Framework

Notes
Did u know? Logistics RFDC applications also include two-way communication of
warehouse selection cycle count verification and label printing.
Advanced RFDC capabilities in the form of two-way voice communication are finding their
way into logistics warehouse applications. Instead of requiring warehouse operations personnel
to interface with a mobile or handheld computer, voice RFDC prompts operators through tasks
with audible commands and waits for verbal responses or requests. United Parcel Service uses
speech-based RFDC to read zip codes from incoming packages and print routing tickets to guide
packages through their newer sortation facilities. The voice recognition systems are based on
keywords and voice patterns of each operator. The primary benefit of voice-based RFDC is
easier operator interface; since keyboard data entry is not required; two hands are available for
order picking.
Radio Frequency Identification (RFID) is a second form of radio frequency technology. RFID can
be used to identify a container or its contents as it moves through facilities or on transportation
equipment. RFID places a coded electronic chip in the container or box. As the container or box
moves through the supply chain, it can be scanned for an identifying code or even for the list of
contents. Retailers are beginning to use RFID to allow entire cartloads of merchandise to be
scanned simultaneously. The U.S. Department of Defense uses RFID to list the contents of pallets
so that they can be tracked as they are loaded on transportation equipment or move through
facilities.

6.5.6 Image Processing

Image processing applications rely upon facsimile (fax) and optical-scanning technology to
transmit and store freight bill information, as well as other supporting documents such as proof
of delivery receipts or bills of lading. The rationale for this new service is that timely shipment
information is almost as important to the customer as delivering the goods on time. As freight
is delivered to customers, support documentation is sent to image processing locations,
electronically scanned, and logged into the system.

Electronic images of the documents are then transmitted to a main data centre where they are
stored on optical laser disks. By the next day, customers can access the documents through
computer linkages or a phone call to their service representative. Customer requests for a hard
copy of a document can be filled within minutes by a facsimile transmission. Customer benefits
include more accurate billing, faster response from carrier personnel, and easy access to
documentation. The carrier also benefits because the system eliminates the need to file paper
documents, reduces the chance of loss, and provides improved credibility with customers.
Satellite technology, RF, and image processing require substantial capital investment prior to
obtaining any returns. Experience has shown, however, the primary benefit of these
communication technologies is not lower cost but improved customer service. Improved service
is provided in the form of more timely definition of tasks, quicker shipment tracing, and faster
transfer of sales and inventory information. There will be increased demand for these
communication technology applications as customers observe the competitive benefits of real
time information transfer.

6.5.7 Bar Coding and Scanning

Auto Identification (ID) systems such as bar coding and electronic scanning were developed to
facilitate logistics information collection and exchange. Typical applications include tracking
receipts at warehouses and retail sales. These ID systems require significant capital investment

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