ICT`S IN LOGISTICS SYSTEMS

ICT`S IN LOGISTICS SYSTEMS

1. In entry or supply logistics, there are, among others, the following ICTs:

   • Electronic Data Interchange (EDI):
     • Electronic data interchange is defined by the Spanish telephone company as "the transmission electronic standard trade documents between computers, so that the information can be be processed without the need for manual intervention". Also transnational IBM uses the following definition: "is the transfer of information between companies using electronic messages with standardized contents, which were previously established between the parties". The exchange of information between companies, automated and standardized through EDI, contributes to improving the provisioning and supply chain management (SCM) in general, since it reduces shipping times, reception of documents and costs, and improves commercial relations between the parties involved.
   • E-Procurement:
     • E-procurement is a tool that automates and optimizes the purchasing process, through software and the Internet, and thus contributes to improving the relationship between buyer and seller sharing agile and continuous information. The use of catalogs to carry out orders, the automation of purchase order approvals, and the use of controls to comply with the provisioning policies established for buyers and suppliers, are some of the solutions developed by the e-procurement.
   • Vendor Managed Inventory (VMI) / Continuos Replenishment Program (CRP):
     • The VMI and CRP constitute a provisioning system based on the exchange of information through the Internet or EDI, in such a way that the provider itself can manage the stock levels of the company to which it sells, thus generating orders. The VMI is specified when the supplier controls the customer's inventories and replenishes the quantities required for guarantee the production process. The CRP is a part of the VMI, dedicated to managing information to ensure that replenishment is continuous.

2. In internal logistics we have the use of the following ICT:

   • Enterprise Resource Planning (ERP):
     • The ERP is a resource planning tool for the company, through software designed to manage the functions of the organization in an integrated manner. SAP, which is the world's leading ERP provider, defined as an enterprise software architecture that facilitates and integrates information between the functions of manufacturing, logistics, finance and human resources. ERPs use a single database whose use facilitates the communication and exchange of information between the departments of the company, thus avoiding the redundancy of the information available.
   • Warehouse Management System (WMS):
     • The WMS is an information subsystem that helps manage the flow of products and the handling of facilities in the logistics network. It also controls the operations that feed raw material and components to the production process, in addition to meeting customer orders. East subsystem offers the advantages of having real-time knowledge of the use of the system's resources. warehouse; the reduction of costs due to the optimization of operations; an improvement in the quality of service, for traceability and exact compliance with the specifications of the merchandise; and allows control suitable from stock.
   • The barcode:
     • It is a tool that allows to quickly capture the information related to the identification numbers of each trade item, as well as the logistics units and locations at any point in the value network. High efficiency is achieved when all the actors involved in the supply chain unify the product code. Thus improve information management. The benefits of this are: more inventory control fast and reliable; better planning of transportation, production and sales; a better product identification; better management of storage and picking processes.
   • Radio Frequency Identification (RFID):
     • This is a generic term to refer to all technologies that use radio waves to automatically identify products Special labels or tags that emit signals are used radio to reading devices responsible for collecting the signals. Among the advantages of using RFID we have: greater data storage capacity (memory) compared to the bar code; the variability of the information contained in the tags, being the reusable labels while the barcodes not; the tags can be read simultaneously, while the reading of the code of bars is done one by one; eye contact between the reader and the tag is not necessary; are made in real-time updates of the stock and the locations of the merchandise; and reduces to practically zero the number of errors.
   • Pick up to Light y Pick up to Voice:
     • These are picking systems that do not require the use of paper. are based on networks lights and voice systems, respectively. Thus, the basic component of Pick up to Light is a series of light indicators that guide the operator both to determine picking locations, such as quantities to be picked. Once the operation, the operator presses a confirmation button and the stock is updated in time real. In the case of Picking up to Voice, the operator wears a receiver and a headset where you can receive, transmit and send short messages about the operation of picking in process.

3. The ICTs most used in outbound logistics are:

   • Transportation Management System (TMS):
     • The TMS presents a series of alternative modes of transportation, freight costs, expected delivery times, load etc. This makes it possible to optimize transportation resources by matching their lowest cost with the service standards required by the client. According to the Advisory Group, the advantages of TMS are: it facilitates provision of transport services; improves the planning and optimization of transportation activities; allows cargo tracking and tracing; allows the consolidation (unification) of loads, when there are several orders of small size each, which enables the reduction of transportation costs and improves the process efficiency; enables cargo traceability, which facilitates the attention of claims and customer requests.
   • Consumer Relationship Management (CRM):
     • CRM, also known as Customer Relationship Management, is a strategy that allows companies to identify, attract and retain their customers. It covers the processes marketing, sales and customer service. Among its advantages are the ease of administration information related to customers and increasing their satisfaction; cost reduction and improvement in productivity due to the automation of activities.
   • Efficient Consumer Response (ECR):
     • Called Efficient Consumer Response, the ECR is a strategic model in which they work customers and suppliers together to deliver the greatest added value to the final consumer. According to European Union, the ECR is the joint work of companies to satisfy the wishes of consumers correctly, quickly and at low cost. Its operation is based on the use of barcode and EDI, which makes it possible to identify and track products, improve traceability and speed up the exchange of information between the client-supplier.
   • Global Position System (GPS):
     • The global positioning system is a satellite system that allows, using the navigation, determine the location of an object with high accuracy. Through the application of GPS can be performed in real time at various points in the supply chain, as well as the monitoring of loads and transport vehicles. A great advantage is the cost reduction due to the better control over the transport fleet and increased security due to traceability to products.