Page 135 - DMGT523_LOGISTICS_AND_SUPPLY_CHAIN_MANAGEMENT

Logistics and Supply Chain Management

Notes for users, but necessarily replace former paper-based information collection and exchange
processes that were error-prone and time-consuming. In fact, increased domestic and international
competition is driving shippers, carriers, warehouses, wholesalers, and retailers to develop and
utilize Auto ED capability to compete in today’s marketplace.
Auto ID allows supply chain members to quickly track and communicate movement details
with a low probability of error, so it is fast becoming a fundamental service requirement for
freight tracking by carriers. Both consumers and B2B customers expect to be able to track the
progress of their shipment using the Web-based system offered by carriers such as United Parcel
Service and FedEx.

Bar coding is the placement of computer readable codes on items, cartons, containers, pallets,
and even rail cars. Most consumers are aware of the Universal Product Code (UPC) that is
present on virtually all consumer products. UPC bar codes, used first in 1972, assign a unique 12-
digit number to each manufacturer and product. Standardized bar codes reduce errors when
receiving, handling, or shipping product.

Example: A bar code distinguishes package size and flavour. European Article Numbering
(EAN) is the European and United Nations standard for bar coding of items. It is likely that the
UPC and EAN systems will become more harmonized due to pressures of global trade.

6.5.8 Enterprise Resource Planning (ERP)

Enterprise Resource Planning (ERP) and enterprise execution systems are the major software
components of logistics information systems. ERP provides the database and the transaction
capability to initiate, track, monitor, and report on customer and replenishment orders. ERP
systems provide firms with information consistency, economies of scale, and integration. ERP
system design includes the central database and application modules to facilitate supply chain,
financial and human resource management. Supply chain system design includes components
for planning/coordination, operations, and inventory deployment. The planning/coordination
component manages firm and supply chain resources including production, storage, and
transportation resources. The operations component controls transaction processing to initiate,
manage, fulfil, and ship both customer and replenishment orders. Inventory deployment manages
firm and increasingly supply chain inventory resources.
Enterprise execution systems provide the interface between the ERP and the day-to-day operations
with the customer, transportation, and the warehouse. Customer relationship management
systems offer insight regarding the firm’s activity level and performance with key customers.
Transportation management systems initiate shipments and record movements to monitor the
firm’s transportation performance and cost. Warehouse management systems initiate warehouse
activities, control material handling equipment, monitor labour performance, and report
warehouse performance levels and cost.

Task Will there be any enrolment data changes (e.g., provider IDs, data elements
changing)? When will these changes take place?

Self Assessment

Fill in the blanks:
9. …………………… allows communication across a wide geographic area such as a region
or even the world.

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