Technology in scm

11

Technology in logistics and supply chain management : A scenario scan

P.P. SenguptaFellow, Institute of Engineers (India), Former Chief General Manager (MM) ,Coal India Ltd.

22

Topics of discussion

Overview of supply chain Technology in SCM’s internal functions Technology in supply chain integration,

visibility and collaboration Technology in transportation and logistics Technology in Warehousing , material

handling and shipping Technology of future for SCM and logistics

33

What is a supply chain ?

The activity that manages the flow of information, money, and material across the extended enterprise, from supplier through the functional silos of the firm to customer

.

4

The Supply Chain

Supply chain is the series of players and activities that take part in the movement of materials, goods, services, money and information from suppliers supplier to the customers customer.

“Chain” is a simplification of the complex web of suppliers, sub-assemblers, manufacturers, warehouse operators, distributors, retailers , logistics providers, bankers, insurance companies, freight forwarders, transporters etc who are the primary actors in managing the physical flows “from womb to tomb.”

5

What is logistics ?

Logistics is that part of the supply chain process that plans, implements, and controls the efficient, effective flow and storage of goods and related information from the point of origin to the point of use in order to meet customers' requirements

6

Technology in SCM’s internal functions

ERP e-procurement and e-tendering Reverse auction Collaborative Planning Forecasting and

Replenishment (CPRF) Vendor Managed Inventory (VMI)

7

Collaborative Planning Forecasting and Replenishment (CPRF)

CPFR is a business practice that combines the intelligence of multiple trading partners in the planning and fulfillment of customer demand.

The consumer is the ultimate focus of all efforts Buyers” (retailers) and “sellers” (manufacturers) collaborate at

every level Joint forecasting and order planning reduces surprises in the

supply chain The timing and quantity of physical flows is synchronized across

all parties Promotions no longer serve as disturbances in the supply chain Exception management is systemized

8

Vendor Managed Inventory

Vendor Managed Inventory simply means the vendor (the Manufacturer) manages the inventory of the distributor. The manufacturer receives electronic messages, usually via EDI, from the distributor. These messages tell the manufacturer various bits of information such as what the distributor has sold and what they have currently in inventory. The manufacturer reviews this information and decides when it is appropriate to generate a Purchase Order.

9

Vendor Managed Inventory

Under a Vendor Managed Inventory setup, the Manufacturer would setup the Distributors inventory plan.

The Manufacturer would then monitor the Distributors inventory levels, keeping track of the sales and the current inventory level.

Once the Manufacturer believed the Distributors inventory levels were too low, the Manufacturer would generate the Purchase Order and deliver the product to the Distributor. Vendor Managed Inventory gives the control over the inventory to the Manufacturer.

10

Technology in Supply Chain integration, visibility and collaboration

SRM EDI Software Agents Analytics software Comprehensive connectivity – from wireless LAN

technologies, cellular networks, 4G Voice and GPS communication integrated into rugged

Computers Speech recognition Digital imaging Social Media

11

Supplier relationship management

Supplier Relationship Management (SRM) is the discipline of working collaboratively with suppliers in order to maximise the value derived from those supplier relationships.

Primarily, SRM tools have been developed to reduce the total cost of ownership (TCO) for procured goods, while creating competitive advantage for an organisation through deeper relationships with its suppliers.

12

Electronic Data Interchange

EDI is the computer to computer exchange, between two companies, of standard business documents in electronic format.

There are two key elements in basic EDI. First, electronic documents replace paper based ones.

Second, the exchange of documents takes place in a standardised format. (EDIFACT / XML)

13

Software agents

Software agent is a self-contained program capable of controlling its own decision making and acting, based on its perception of its environment, in pursuit of one or more objectives.

“Gopher” agents, which execute straightforward tasks based on pre-specified rules and assumptions (eg inform me when the inventory deviates by 10% from its mean position or tell me when I need to reorder stock items).

14

Software agents

“Predictive” agents, which volunteer information or services to a user, without being explicitly asked, whenever it is deemed appropriate (eg an agent may monitor discussion groups on the internet and return inputs that it believes to be of interest to the user

A freight agent may inform its user that a transport firm is offering large discounts on delivery from China

15

Ultrabroadband Communication (4G)

Mobile ultra-broadband Internet access, for example to laptops with USB wireless modems, to smart phones, and to other mobile devices.

Conceivable applications include amended mobile web access, IP telephony, high-definition mobile TV, video conferencing and 3D television.

16

Ultrabroadband Communication (4G)

The Mobile WiMAX standard and Long term evolution (LTE) standard

Based on the Google Android operating system

Will be used extensively in handheld devices, smartphones and tablets.

17

Speech recognition

Speech recognition for hands-free data entry – is also undergoing a new wave of innovation and adoption. Speech recognition reduces the need for users to look at a computer display.

Speech synthesis/recognition capability can now be easily embedded into numerous legacy software packages, including warehouse management, picking and putaway, inventory, inspection, quality control and other applications.

18

Speech recognition

Terminal emulation (TE)-based speech recognition technology eliminates the need for a separate speech server and a proprietary interface between the speech system and the application software. TE enables speech synthesis to reduce the need to look at the display, and speech recognition to function as a true input technology,.

19

Speech recognition

20

Digital Imaging

Transportation and distribution companies are using digital cameras integrated into the mobile devices or handhelds so their drivers can capture proof of delivery, store stamped invoices, and record conditions that prevent delivery or proof of service.

Capturing shelf displays and monitoring documentation by inspectors, collecting evidence for accident reports, and recording damage and usage conditions for warranty claims.

21

Digital Imaging Devices

22

Social Networks and SCM

Many companies already use social media as a way of interacting with their customers and keeping abreast of new trends.

Real-time integration already allows companies to coordinate with the entire logistics network.

Internal reports can be processed with dramatic precision, and external players can communicate any potential problems before they happen.

23

Technology in transportation and logistics

Voice and GPS communication integrated into rugged computers

Vehicle dispatching systems Tracking software Portable printing 2D bar codes Real Time location Systems (RTLS)

24

GPS devices

25

Portable printers

Provides signed delivery receipts, purchase orders, work orders and inspection reports.

Using mobile printers and computers together lets sales, service and delivery personnel give customers the documentation they desire, while creating an electronic record that frees the enterprise from having to process paperwork.

26

Portable printers

27

2-D barcodes

Two-dimensional bar codes have long been a proven and popular technology for operations where it is desirable to present a lot of information in a limited space.

Intermec’s EX25 auto-focus scan engine is the first bar code reader that can read linear and 2D bar codes alike from 50 feet away and as close as six inches.

28

2-D barcode Reader

A 2D (two-dimensional) barcode is a graphical image that stores information both horizontally and vertically. 2D codes can store up to 7,089 characters, significantly greater storage than is possible with the 20-character capacity of a uni dimensional barcode.

29

Real Time location Systems (RTLS)

Real Time Locating System (RTLS) technology automatically tracks the real-time location of moveable objects, such as equipment, and people in indoor environments.

Near field communication (NFC) is a standards-based, short-range (a few centimeters) wireless connectivity technology.

Ultra-wideband (UWB) RTLS is still a niche within the RTLS field. This is a specialized market requiring custom transponders and readers.

30


RTLS improves the quality of the visibility data critical for management to make informed decisions.

Ultrasound Identification is a real-time locating system (RTLS) or indoor positioning system (IPS) technology used to automatically determine and identify the location of objects with room accuracy.

31


32

Technology in Warehousing , storage and shipping

WMS Rfid Automated Storage and Retrieval (AS/RS) Automated Guided Vehicles (AGV) Automated Identification (Auto ID) applications

33

Warehouse Management Systems (WMS)

Warehouse management systems (WMS) are best described as the advanced technology and operating processes that optimize all warehousing functions. These functions typically begin with receipts from suppliers and end with shipments to customers, and include all inventory movements and information flows in between.

34

Warehouse Management Systems (WMS)

Receiving reports, pick tickets, move tickets, packing lists, etc., which are typically maintained as hard copies, can all be maintained electronically by WMS.

WMS provides GUIs wherein most of the time the operator has to just scans the barcodes. Default navigation of cursor on the screen mimics the standard business rule.

Thus WMS eases the operator's task and makes the data input process fast, increasing the overall efficiency of the operator.

36

How Wireless WMS Solutions Work

Wireless warehouse solutions work by linking warehouse workers to the backend application server where warehouse activities are being recorded via a wireless handheld device. The device tells employees where to go to pick up, put away, count, or move product

37


When items are received to be put away, the staff members scan a bar code on the box. The bar code when scanned reveals information about the box’s contents. Items from the box are scanned and results are compared so discrepancies are immediate obvious. The software then directs warehouse staff to put away items into a suitable location.

38


The Basic Design of AS/Rs in warehousing A “high-rise” storage rack which can be up to 120 feet high is being used in the AS/Rs in order to maximize the utilization of the warehouse cubic space. Each storage location has their unique bar-code or chip to storage the information of the storage location. While the carriers reach the dock of the warehouse, the goods is being loaded or unloaded by “battery-powered driverless vehicles” to or from the conveyer belts. .

39


40

Radio frequency identifiers

RFID are small electronic devices that consist of a small chip and an antenna. The chip typically is capable of carrying 2,000 bytes of data or less.

The RFID device serves the same purpose as a bar code or a magnetic strip on the back of a credit card or ATM card

It provides a unique identifier for that object. And, just as a bar code or magnetic strip must be scanned to get the information, the RFID device must be scanned to retrieve the identifying information.

41


RFID device does not need to be positioned precisely relative to the scanner.

RFID devices will work within a few feet (up to 20 feet for high-frequency devices) of the scanner. For example, you could just put all of your groceries or purchases in a bag, and set the bag on the scanner. It would be able to query all of the RFID devices and total your purchase immediately.

42


The information on tags is read when they pass by an RFID reader, and that movement is captured and managed by the system. Thus one can link the physical world to the digital world without any human interaction

43

Automated Storage and Retrieval (AS/RS)

Automated retrieval systems are fully automated robotic systems controlled by computers that enable all the operations which are unloading goods from carrier, sorting, put-away, storage, order-picking, staging and loading of goods automatically.

The basic AS/Rs system is normally built up by four main components which are: Storage rack, input and output systems,

44


45


46

Automated Guided Vehicles (AGV)

An automatic guided vehicle (AGV), also known as a self guided vehicle, is an unmanned, computer-controlled mobile transport unit that is powered by a battery or an electric motor.

AGVs are programmed to drive to specific points and perform designated functions. They are becoming increasingly popular worldwide in applications that call for repetitive actions over a distance.

47


Common procedures include load transferring, pallet loading/unloading and tugging/towing. Different models, which include forked, tug/tow, small chassis and large chassis/unit load, have various load capacities and design characteristics.

They come in varying sizes and shapes, according to their specific uses and load requirements.

48


49


50


51


52

Technology for future SCM

Future SCM s will be :–Interconnected–Intelligent–Instrumented

53

Future SCM : Interconnected

Agile, on demand network of suppliers, contract manufacturers, service providers and other (financial and regulatory) constituents

Outsourcing non-differentiating functions to share risks across the global network

Variable cost structures that fluctuate with market demand

Shared decision making with partners at source (local, regional, global strategies)

Integrated, networked asset utilization and management

54

Future SCM : Intelligent

Network and distribution strategy analysis and modeling with event simulations

Scenario-based operational analysis Simulation models and analyzers to evaluate

flexibility factors – service levels, Costs, time, quality – with inventory

synchronization

55

Future SCM : Instrumented

Sensor-based solutions to reduce inventory costs with increased visibility

Production and distribution process detectors to monitor and control energy usage and waste

Physical transportation, distribution and facility asset management, controlled and monitored

Technology in scm

Business

Transcript of Technology in scm