Logistics and technology: a double success

As a logistics professional, ‘ve been following very closely the evolution of the use of technology and information systems as essential elements in the management of logistics processes

The search for the optimization of information flows, can be observed in the definition of the Council of Logistics Management Logistic, which defines it as “the process of planning, implementing and controlling the efficient, the flow and storage of goods, services and information related, the point of origin to point of consumption in order to meet customer requirements. “

We realized that with the increase of competitiveness and business complexity, organizations need to invest more in improving logistics processes, aiming at higher levels of customer service and the search for the appropriate business operating costs. In this sense, the use of technology and information systems have a key role to manage to overcome these and other logistical challenges.

We also observed that consumers are increasingly demanding (rightly) and wish to be informed about promotions, news, and after consummation of the purchase, hope to have full visibility of the cycle of your order (input delivery).

Therefore, we believe that, to meet this new scenario, it is necessary that the logistician be aware of the possibilities that technology and information systems can provide for improved management of logistics processes in your organization.

Currently we already have several tools that facilitate the management of information along the supply chain. Seek to mention some of them, namely:

• Barcode – There is a global standardization for reading barcode that has a decisive role in the automation of logistic processes. By reading the bar code you can capture information quickly and reliably, greatly easing the operational process.

• EDI – Electronic Data Interchange (Electronic Data Interchange) – Its major objective expedite the process of communication, through the automatic transmission of information between the various links in the production chain.

• ERP – Enterprise Resource Planning (Integrated Management Systems) – Information systems that seek to integrate all activities of the business (finance, marketing, production, human resources, purchasing, logistics), these areas providing data in a centralized database, besides allowing the integration of a possibility to ensure uniformity of information used for all areas.

• GPS – Global Positioning System (Global Positioning System) – Allows monitoring through the use of communication between a receiver (GPS) satellites and pointing the location of the receiver. Currently it is widely used in monitoring and vehicle tracking.

• RFID – Radio Frequency Identification (radio frequency identification) – Automatic data capture, through the interaction between smart tags, transmitters, antennas and decoders, allow take a reading without contact with the barcode. This brings great operational advantages such as, for example, having an intelligent tag within the packaging of a product and can perform the reading of this label without having to unpack the same.

• RTLS – Real Time Location System (real-time location) – Uses Wi – Fi network, which enables the location and management of objects and people. The location is possible through the use of small tags which have powerful batteries with a wireless device. The tags are based on RFID, which can be placed on products, equipment, badges of employees etc…

• TMS – Transportation Management System (Management Systems Transport) – Aims to manage the processes of transport (fares, operation, monitoring deliveries, service to others and aware) and has been widely used by transport companies to better manage of the whole process (collection delivery).

• VMI – Vendor Managed Inventory (stock by the supplier administrator) – Through agreements previously established between buyers and sellers on sales planning and desired amount of stock of a product, suppliers receive information (via EDI) on stock levels permitting so a replacement process agility.

• WMS – Warehouse Management System (warehouse management systems) enables the integration of information from the time the item master, location of the product in the warehouse, control inputs and outputs, control and capacity utilization of labor, management and optimization of warehouse space (occupancy).

As we can see in this short list, it can certainly be supplemented, we have a number of tools available that, if used properly, can provide numerous benefits for logistics management. However, we must not forget that the tool is only a means and not an end, so I would like to conclude this short article noting that before thinking about which technology or system to choose, we must carefully evaluate the real needs of their process by selecting the most appropriate solution for the same., avoiding the temptation to follow only the technological fads.

We should also bear in mind that the goal should be to provide information and not the use of technology. In this regard, I recommend that in the process of selecting the technology to be adopted will always be remembered that the objectives of information technology are:

• Ensure the quality and integrity of information;
• Provide visibility of processes (internal and external environment);
• Enable support the operation and support decision making;
• Enable productivity gains (rationalization, automation…)

And do not forget that the people involved need to be engaged in the project and trained in the use of technology chosen because of them depend on the success of this new moment of now.

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