Various technologies in Logistic and Supply Chain Management | By Yerasani Sanjana

Date of session: 18 April 2021

Speaker: Ms. Yerasani Sinjana

 

We recently got to hear from Ms. Yerasani Sanjana as part of the valuable session organized by SME – IITJ. So, here we are sharing our understanding of the session.

 

Various technologies in Logistic and Supply Chain Management

Benefit:

1. To get accuracy  

To get accuracy in numbers.

Eg. In trucks which are transporting the goods, we can call and ask that where it has reached. So, we may not get the correct information. So, we can use this technology and update the database.

2. Cost - saving 

3. Increasing the speed of processing

4. Inventory Management 

1. BARCODE

It is easy to generate.

1D Barcodes – have sequence of parallel lines with spaces in between.

This technology was invented in 1952 in US super markets. The barcodes may have different information.

How barcodes can be used?

Information can be there about Country Code, Manufacturer’s name, Product details, Date of manufacture, Material Content.

Industries which use this technology: Retail, Pharmaceutical, Electronics.

 

Benefits:

1.   Inventory Management

Manual counting of the order details can be reduced by using the technology as to when to give the order and the order received, etc.

2.   Retrieval of goods

3.   Piching of Inspection

4.   Reducing paper work

5.   Reducing Processing Time and Human Errors

6.   Increases speed, accuracy and reliability

 

Used where:

1.   Procurement Operations

2.   Order Processing

3.   Production Operation

 

1.  Procurement Operation – We use this technology in the processes where we use Procurement operations.

Eg – When the manufacturer is procuring goods from the supplier.

When the retailer is procuring goods from the wholesaler.

 

2.   Order Processing –

Eg - In the assembly line, for how many products, the packaging has been done. While the products are moving from Machine A to Machine B, the technology is being used during the production of items.

3. Production Operation –

We can scan Barcode and get information on where goods are traveling. What is the inventory at the retailer? All details, we get by scanning the Barcode. 

2. RFID

Components of RFID:

1.   RFID tags – These are put on the products.

2.   RFID Readers – A scanner to scan these tags.

3.   Antennas – 1 or 2 antennas are placed.

4.  Software or Computer – A software system is used where reader will send information to store the data.

 

It first appeared in 1980s.

Used in tracking products.

 

How is it different from the Barcodes?

Even if the tag is not visible to readers, still it scans and gives the information.

RFID does a wireless exchange of information through RFID tags and readers.

 

How this impact the Logistics and the Supply Chain Management?

When an object is sent between these two types of antennas, different kinds of readers are there, they read it and give the information accordingly.

 

Advantage –

1.  Products purchasing in Retail stores: RFIDs are used in Retail stores in face wash, shampoo, moisturizer etc.

 

  How it impacts in Supply Chain Management?

-Helps manufacturer in the supply chain.

- Improves complex distribution system.

 

2.   Used in Indian Postal Services

3.   Used in Indian State Transport Agencies – Putting RFID tags on the whole containers. Helps in packaging and moving.

4.   Fast Tags – Put on the vehicles. Fast Tags are examples of RFIDs. When a vehicle crosses the toll, then RFID reader will scan accordingly what your purpose is.

 

Case Study of RFID Technology:

      1.   P&G –

What is the shortage of goods in stores?

What we are lacking or is less in inventory?

How many items are in store, this information is sent to the wholesaler to replenish the sales.

Eg – To help them cut their cost by 400 million in one year.

 

In India, the scenario is such that we are slowly moving towards these technologies in Retail stores.

 

2.   Ford Motors

This technology is used in the Assembly Line when there is lack of inventory.

 

 

Difference between RFID and Barcodes:

1. Electronic Data Interchange:     

Used for Business documents from 1PC to another PC. Sending them internally. Manually we send papers. Then we sent emails. EDI is different from emails. Emails can be written manually whereas EDI is prepared automatically sent. The dealer's system will interpret the message. No manual intervention. 

EDI has faster transactions. Real-time document transfer in the supply chain. 

Email is not structured. We can write anything. In EDI, it is structured so that other computer can understand. 

Customer creates an order -> Send Invoice -> Then supplier will manually update orders -> Mail invoice-> Then buyer will update

EDI - faster manufacturer.

2. Just in Time manufacturing technique is used.  It has a faster manufacturer. Here, huge elementary storage can be implemented. 

In Lean manufacturing, we use Just in time manufacturing. In Lean manufacturing, we don't produce goods in advance. 

3. Reduce transaction cost

4. Reduce order cycle time and inventory to improve the competitiveness. 

5. Improve the corporate trading relationships in the supply chain. 

With EDI :

Buyer's ERP <--Purchase Order --->  (EDI)  <--Invoice--> Supplier's ERP

Without EDI :

Buyer generates the EDI order -->Purchase order is printed and sent to the supplier --> Supplier receives order --> Supplier enters the order, delivery and invoice in their system --> Invoice is created     --> Invoice is printed and sent to the buyer --> Buyers enter the invoice in their system.

VSAT 

There are a lot of many processes between buyer and supplier. 

Hub Stations (main) at the head office where main transactions will happen ---> Communicate with satellites --> Real Time Data interchange --> used in Banking as well as in Logistics. 

The satellites communicate between Pico terminals and hub stations. 

We can track where goods are travelling. These are centralised networks. 

GPS 

Have handsets or laptops and ask for locations. 

Mobile will send a GPS signal (send query) --> to the GPS satellites --> to the server --> information will be sent to the Base Station

We can find out where the particular truck is moving or the position of the vehicle that is moving. 

Segments: 

1. User Segment

2. Space Segment: Sending signals

3. Control Segment: Having antennas  

GIS 

There is database where all the data is stored. What are the different types of data that is required. 

Physically, we can see where the truck is moving. Helps to trace and track the vehicles. 

Different Communication technologies that we are using:

1. Web-Based Tracking: To find out the location where the article is. 

Let us suppose that we are sending a packet from Jodhpur to Delhi 

Jodhpur ---> Delhi 

On its way, the packet reaches at Jaipur Hub and then further moves to the Delhi Hub. 

So, the status reports of these consignments can be directly seen by the clients.

 

2. Automated Guided Vehicle System: Used in warehouses where they require to move goods. 

Now they are using the newer versions of AGV and they are using the videos if an obstacle is in the path to go to the Processing unit. 

AGVs and Robots - Materials can be shifted at different locations in warehouses. 

Example: Amazon uses the AGV technology for handle goods processing.

Source: https://www.acelli.it/en/agv-automated-guided-vehicles

Information exchange between supply chain management. 

ERPs used to send information between different parties. 

Eg- Supply chain (in Dell), where laptops are selling to customers. They get orders directly from Customer -> send order to Retailers--> then in a better way they could forecast customer requirements.

ERP - Whoever wants to be part of it, whether it is the purchasing unit, manufacturing unit, finance, analysis of inventories. All are connected to ERP. 

In India, Ramco Systems Pvt. Ltd. - they developed ERP to suit Indian business environment. 

How many units of particular order are required -> for particular retailers or orders. 

Finance - Analyse other person's inventory. How to choose best suppliers as per their detailed information. 

Advantage - 

1. Quicker response to customer requirement

2. Reduction in inventory costs

3. Improvement in service levels - internal and external

4. Improvement in inventory turnover rate

5. Reduction in logistics cost

Impact –

1.  Procurement  - Manufacturers procure the order through e-procurement. E – auctions are there. Strategic relationships are maintained to get good orders.

2.  Planning – Based on historic data, all information is stored about where goods are stored about when Product A goes in Machine A and when Product B goes in Machine B.

3.   Web Based collaboration – Maintains promotional plans.

4.   Scheduling – When to do promotional plans?

When to stop the Production?

When seasonal items are to be produced?

Eg – Winter wear – Plan 3-4 months before so that when requirement comes, then you can do the transportation after 4 months.

5.    Managing Inventory – It provides the transparency of the inventory.

Eg – How much goods are lacking at the Retailer’s end?

-                               How we see the Inventory Management?

-                               How many goods need to be stored?

 

Logistics and Warehouse Management –

1.  Complains or feedbacks that we get from the customers, all can be seen, both by the Manufacturers and Retailers.

2.    All the Customer complains and feedbacks about the innovative ideas, can be seen here.

-      

When moving from manufacturer to distributor, all information is stored. When the product reaches from Distributor to Warehouse, one more block is added. Further, when the product reaches from warehouse to customer, one more block is added. Further when the product reaches at the customer level, we can see the transparency of information.

 

On being asked about the career opportunities in Logistics and Supply Chain Management, the speaker said that any newer technologies in this industry, like Drone Delivery etc. provide us with good career opportunities. So, having their good knowledge would be beneficial.

On being asked that how hard it is for the industries to adopt newer technologies in the workflow, the speaker said that many industries are moving towards Lean Manufacturing or Logistic system. The technology is increasing on manufacturing or logistic system. Adopting newer technologies depends upon many factors which are taken into consideration.

 

On being asked to the speaker about the impact of Blockchain /IoT in logistics, as an audience question, the speaker responded that Blockchain can be used in Logistics where we store information about each of the supply chain entity.

For example, a product goes from Manufacturer to Customer, using Blockchain, all information will be stored, during the process.

The speaker concluded with the session explaining to us that using the right technology at the right place is very important provided we need to keep in mind what is our budget.