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Logistics Information
       System
          Togar M. Simatupang
     Masyarakat Logistik Indonesia
  (the Indonesian Society of Logistics)
                   Presentasi pada SEMASSI 2011
       Seminar Nasional Supply Chain dan Sistem Informasi
“Integrated Logistics and Information System for Developing Supply
            Chain Management in Logistics Industries”
      Politeknik Pos Indonesia, Bandung, 12 Nopember 2011
Introduction
•   The shift in the economy from the industrial era to the information age has
    profound implications for the management of the modern enterprise.
•   Issues of ASEAN Connectivity in physical, people, and institutional connections.
•   Supply Chain Management is a relatively new discipline within the firm and
    originally dealt with the transportation and storage of goods, an advanced supply
    chain program coordinates activities across management functions.
•   In addition to transportation and distribution, other areas influenced by logistics
    include customer service and quality management, inventory management,
    location, strategic planning, procurement, and logistics information systems.
•   The intent of this presentation is to introduce the participants to the important
    concepts of Logistics Information Systems.
•   In addition, a special attention is given to how information technologies will
    transform the business landscape on logistics and supply chains.




                                                                                          2
Questions
• What if Logistics united with Information
  Systems?
  – A theoretical framework is developed to specify
    the relationships between L and IS for logistics
    innovation.
• What are the challenges posed by Logistics
  Information Systems?
  – LSI as a subject and a logistics education


                                                       3
Future Trends




                4
Future Trends:
the evolution of supply-chain integration




  Source: http://gabbai.com/management/purchasing-and-supply
                                                               5
Approach
• What is Logistics?
• What is Information Systems?
• What is Logistics Information Systems =
  Uniting L and IS?




                                            6
Logistics
• Logistik – proses perencanaan, pelaksanaan, dan
  pengendalian aliran yang efisien dan efektif dari
  barang atau jasa dan informasi terkait mulai dari
  titik asal sampai titik penggunaan untuk
  memenuhi keperluan pelanggan (Reference:
  Council of Logistics Management)
• Ciri-ciri Logistik:
       – Aliran: barang dan informasi (energi, orang, uang, dll.)
       – Unsur: gudang, transportasi, dan persediaan
       – Inti: menambah kegunaan waktu dan tempat
Sumber: http://www.logisticsworld.com/logistics.htm
                                                                7
Logistics Discipline
• Logistics is the field of study to focus on the
  design, control, and implementation of the
  efficient flow and storage of goods and services
  and other related information from the point of
  origin to the point of final consumption with an
  aim to satisfy the requirements of its existing and
  prospective customers.
• The management of Logistics involves the
  integration of information, transportation,
  inventory, warehousing, material handling, and
  packaging, and often security.

                                                        8
A Supply Chain = A Network of Logistics




Source: http://what-when-how.com/information-science-and-technology/security-and-reliability-   9
of-rfid-technology-in-supply-chain-management-information-science/
What are the three types of flow in
          supply chain?




                                      10
The fresh food supply chain




Source: http://www.careersinsupplychain.org/what-is-scm/flows.asp
                                                                    11
Logistics Management
•   Understand the role of logistics in an enterprise.
•   Define customer service.
•   Describe electronic and other logistics information systems.
•   Explain inventory management.
•   Explain materials management with special reference to Japanese
    systems.
•   Define supply chain management.
•   Explain the methods of transport.
•   Illustrate the calculation of transport cost.
•   Illustrate the types and costs of warehousing.
•   Explain electronic aids in materials handling cost and price determination
    of purchases.
•   Explain how logistics can be organized.
•   Explain methods for improving logistics performance.


                                                                                 12
Integrated Logistics




Source: http://www.lbbinternational.com/supply_chain_design.php   13
Example of Integrated Logistics




                                                                   14
Source: http://www.to-be.co.jp/english/eBusiness/logis_solu.html
Information Systems Discipline
• Information Systems is an applied discipline that
  studies the processes of the creation, operation,
  and social contexts and consequences of systems
  that manipulate information.
• The creation and operation of such systems
  requires the sub-processes of systems analysis,
  design, development and management which are
  bracketed at the beginning by social context and
  at completion by social consequences.

Source: http://sydney.edu.au/engineering/it/~jonpat/Information_Systems/IS_propaganda/IS_mission_statement.html   15
Information and Supply Chain
                  Management
• What is the role of Information Systems and
  Information Technology in supply chains?
• Information technology (IT) is an important
  enabler of effective supply chain management
  (Simchi-Levi et al., 2008):
  – IT has potential to enhance the capabilities of a firm
    for sustained innovation of its business processes.
• The purpose of Information Systems (IS) is to
  gather, categorize, store and spread all
  information that is needed to make the
  organization both grow and prosper.

  Note: Enabler is to make possible, or easy, sanction, to make one able to do something.   16
Logistics and Information Systems

          Logistics           Information Systems
            Design and              Design, development,
      implementation of the           installment, and
        efficient flow and
                              +         application of
        storage of goods            information systems



                     A New Discipline?
                       Unified ogistics and
                      Information Systems


       Logistics Information Systems

                                                           17
Logistics Information Systems
• Logistics is the field of study to focus on the
  design and implementation of the efficient flow
  and storage of goods from the point of origin to
  consumption.
• Information System is the field of study to deal
  with problems against the design, development,
  implementation, application of information
  system.
• Logistics Information Systems (LIS) is a new
  discipline that unifies Logistics and Information
  Systems.

                                                      18
Key Building Blocks of LIS
• Logistics Information Portal: Transactional and
  Analytical LIS
• Logistics Computing and Simulation
• Decision Support System
• Database and Data Mining
• E-Logistics and E-Commerce
• Logistics Process Management
• IT and Software: CRM, ERP, CRM, ERP, RFID, TMS, and
  WMS.
• LIS Applications: port, retail, energy, humanitarian,
  agriculture, military, trade, manufacturing

                                                          19
Analytical and Transactional LIS




                                   20
SAP Logistics Information System




                                   21
Manifestation of LIS:
       A New Competence as a course
• LIS is designed to provide professionals working
  within the logistics and operations management
  area with the skills to manage the flow of
  materials and information within and between
  organizations and their business environment.
• It incorporates both practical and theoretical
  aspects of logistics information systems to assist
  managers in increasing business efficiency.


                                                       22
Skills Development
• Interpersonal skills: Promoting active discussion and exchange of ideas in
  class will help participants develop strong skills in this area
• Communication skills: Having a point and being able to get it across in a
  way that is clear, crisp and concise by promoting students’ in class
  presentations.
• Ability to be a continuous learner and trainer of others: Knowing how to
  learn on an ongoing basis, how and where to gather the right information
  (library and online search).
• Global Awareness: Developing knowledge of some LIS used around the
  world.
• Quantitative skills: Understanding how to use information systems in SCM.
• Ability to manage information technology tools: Using software, internet,
  attached files, Power Point, E - mail, etc.
• Ethical Awareness: Understanding ethical responsibilities in using Logistics
  software


                                                                            23
Manifestation of LIS:
                A Logistics Education
• Georgia Southern University (Information Systems,
  Logistics Information Systems)
   – The LIS emphasis focuses on the use of information
     technology as a critical enabler of the supply chain
     networks that businesses use to acquire, produce, and
     deliver goods and services all over the world.
   – Students pursuing this emphasis will be prepared to help
     companies design information systems that integrate
     business processes across the supply chain.
   – Potential employers include large retail distribution
     centers, wholesalers, logistics firms (e.g. UPS, FedEx, DHL),
     railroads, trucking and shipping companies, and a host of
     other companies who are partners in supply chains.


                                                                 24
Research Areas of LIS
• DSS (Decision Support System), Wide-area-information sharing system, SIS
  (Strategic Information System)
• Analysis of LIS by the examples of Geographical Information System (GIS)
• Organizational control of human activity and organizational learning in LIS
• Project Management Methodology for LIS development
• Analysis, design, evaluation for user oriented LIS: System analysis, design,
  and evaluation at the viewpoint of LIS
• Qualitative Research in LIS
• Qualitative failure analysis of LIS projects at the viewpoint of each
  stakeholder
• Value model of LIS
• Logistics optimization based on LIS
• LIS for SMEs
                                                                            25
Geographic Information System




Source: http://nj2k98.hubpages.com/hub/The-Endless-Possiblities-With-Geographic-Information-Systems   26
Konsep Jaringan Multi Moda




Source: http://ekonomitransportasi.blogspot.com/   27
Hitachi Transport System




                           28
Concluding Remarks
• Integrating Logistics and Information Systems results in
  “Logistics Information Systems” that can be manifested in:
   – a new course and
   – a branch of logistics education.
• As a course, LIS is designed to provide professionals
  working within the logistics and operations management
  area with the skills to manage the flow of materials and
  information within and between organizations and their
  business environment.
• As a branch of logistics education, LIS focuses on the use of
  information technology as a critical enabler of the supply
  chain networks that businesses use to acquire, produce,
  and deliver goods and services all over the world.

                                                               29
Thank You




            30

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Integrated Logistics and Information Systems for Developing Supply Chain Management

  • 1. Logistics Information System Togar M. Simatupang Masyarakat Logistik Indonesia (the Indonesian Society of Logistics) Presentasi pada SEMASSI 2011 Seminar Nasional Supply Chain dan Sistem Informasi “Integrated Logistics and Information System for Developing Supply Chain Management in Logistics Industries” Politeknik Pos Indonesia, Bandung, 12 Nopember 2011
  • 2. Introduction • The shift in the economy from the industrial era to the information age has profound implications for the management of the modern enterprise. • Issues of ASEAN Connectivity in physical, people, and institutional connections. • Supply Chain Management is a relatively new discipline within the firm and originally dealt with the transportation and storage of goods, an advanced supply chain program coordinates activities across management functions. • In addition to transportation and distribution, other areas influenced by logistics include customer service and quality management, inventory management, location, strategic planning, procurement, and logistics information systems. • The intent of this presentation is to introduce the participants to the important concepts of Logistics Information Systems. • In addition, a special attention is given to how information technologies will transform the business landscape on logistics and supply chains. 2
  • 3. Questions • What if Logistics united with Information Systems? – A theoretical framework is developed to specify the relationships between L and IS for logistics innovation. • What are the challenges posed by Logistics Information Systems? – LSI as a subject and a logistics education 3
  • 5. Future Trends: the evolution of supply-chain integration Source: http://gabbai.com/management/purchasing-and-supply 5
  • 6. Approach • What is Logistics? • What is Information Systems? • What is Logistics Information Systems = Uniting L and IS? 6
  • 7. Logistics • Logistik – proses perencanaan, pelaksanaan, dan pengendalian aliran yang efisien dan efektif dari barang atau jasa dan informasi terkait mulai dari titik asal sampai titik penggunaan untuk memenuhi keperluan pelanggan (Reference: Council of Logistics Management) • Ciri-ciri Logistik: – Aliran: barang dan informasi (energi, orang, uang, dll.) – Unsur: gudang, transportasi, dan persediaan – Inti: menambah kegunaan waktu dan tempat Sumber: http://www.logisticsworld.com/logistics.htm 7
  • 8. Logistics Discipline • Logistics is the field of study to focus on the design, control, and implementation of the efficient flow and storage of goods and services and other related information from the point of origin to the point of final consumption with an aim to satisfy the requirements of its existing and prospective customers. • The management of Logistics involves the integration of information, transportation, inventory, warehousing, material handling, and packaging, and often security. 8
  • 9. A Supply Chain = A Network of Logistics Source: http://what-when-how.com/information-science-and-technology/security-and-reliability- 9 of-rfid-technology-in-supply-chain-management-information-science/
  • 10. What are the three types of flow in supply chain? 10
  • 11. The fresh food supply chain Source: http://www.careersinsupplychain.org/what-is-scm/flows.asp 11
  • 12. Logistics Management • Understand the role of logistics in an enterprise. • Define customer service. • Describe electronic and other logistics information systems. • Explain inventory management. • Explain materials management with special reference to Japanese systems. • Define supply chain management. • Explain the methods of transport. • Illustrate the calculation of transport cost. • Illustrate the types and costs of warehousing. • Explain electronic aids in materials handling cost and price determination of purchases. • Explain how logistics can be organized. • Explain methods for improving logistics performance. 12
  • 14. Example of Integrated Logistics 14 Source: http://www.to-be.co.jp/english/eBusiness/logis_solu.html
  • 15. Information Systems Discipline • Information Systems is an applied discipline that studies the processes of the creation, operation, and social contexts and consequences of systems that manipulate information. • The creation and operation of such systems requires the sub-processes of systems analysis, design, development and management which are bracketed at the beginning by social context and at completion by social consequences. Source: http://sydney.edu.au/engineering/it/~jonpat/Information_Systems/IS_propaganda/IS_mission_statement.html 15
  • 16. Information and Supply Chain Management • What is the role of Information Systems and Information Technology in supply chains? • Information technology (IT) is an important enabler of effective supply chain management (Simchi-Levi et al., 2008): – IT has potential to enhance the capabilities of a firm for sustained innovation of its business processes. • The purpose of Information Systems (IS) is to gather, categorize, store and spread all information that is needed to make the organization both grow and prosper. Note: Enabler is to make possible, or easy, sanction, to make one able to do something. 16
  • 17. Logistics and Information Systems Logistics Information Systems Design and Design, development, implementation of the installment, and efficient flow and + application of storage of goods information systems A New Discipline? Unified ogistics and Information Systems Logistics Information Systems 17
  • 18. Logistics Information Systems • Logistics is the field of study to focus on the design and implementation of the efficient flow and storage of goods from the point of origin to consumption. • Information System is the field of study to deal with problems against the design, development, implementation, application of information system. • Logistics Information Systems (LIS) is a new discipline that unifies Logistics and Information Systems. 18
  • 19. Key Building Blocks of LIS • Logistics Information Portal: Transactional and Analytical LIS • Logistics Computing and Simulation • Decision Support System • Database and Data Mining • E-Logistics and E-Commerce • Logistics Process Management • IT and Software: CRM, ERP, CRM, ERP, RFID, TMS, and WMS. • LIS Applications: port, retail, energy, humanitarian, agriculture, military, trade, manufacturing 19
  • 22. Manifestation of LIS: A New Competence as a course • LIS is designed to provide professionals working within the logistics and operations management area with the skills to manage the flow of materials and information within and between organizations and their business environment. • It incorporates both practical and theoretical aspects of logistics information systems to assist managers in increasing business efficiency. 22
  • 23. Skills Development • Interpersonal skills: Promoting active discussion and exchange of ideas in class will help participants develop strong skills in this area • Communication skills: Having a point and being able to get it across in a way that is clear, crisp and concise by promoting students’ in class presentations. • Ability to be a continuous learner and trainer of others: Knowing how to learn on an ongoing basis, how and where to gather the right information (library and online search). • Global Awareness: Developing knowledge of some LIS used around the world. • Quantitative skills: Understanding how to use information systems in SCM. • Ability to manage information technology tools: Using software, internet, attached files, Power Point, E - mail, etc. • Ethical Awareness: Understanding ethical responsibilities in using Logistics software 23
  • 24. Manifestation of LIS: A Logistics Education • Georgia Southern University (Information Systems, Logistics Information Systems) – The LIS emphasis focuses on the use of information technology as a critical enabler of the supply chain networks that businesses use to acquire, produce, and deliver goods and services all over the world. – Students pursuing this emphasis will be prepared to help companies design information systems that integrate business processes across the supply chain. – Potential employers include large retail distribution centers, wholesalers, logistics firms (e.g. UPS, FedEx, DHL), railroads, trucking and shipping companies, and a host of other companies who are partners in supply chains. 24
  • 25. Research Areas of LIS • DSS (Decision Support System), Wide-area-information sharing system, SIS (Strategic Information System) • Analysis of LIS by the examples of Geographical Information System (GIS) • Organizational control of human activity and organizational learning in LIS • Project Management Methodology for LIS development • Analysis, design, evaluation for user oriented LIS: System analysis, design, and evaluation at the viewpoint of LIS • Qualitative Research in LIS • Qualitative failure analysis of LIS projects at the viewpoint of each stakeholder • Value model of LIS • Logistics optimization based on LIS • LIS for SMEs 25
  • 26. Geographic Information System Source: http://nj2k98.hubpages.com/hub/The-Endless-Possiblities-With-Geographic-Information-Systems 26
  • 27. Konsep Jaringan Multi Moda Source: http://ekonomitransportasi.blogspot.com/ 27
  • 29. Concluding Remarks • Integrating Logistics and Information Systems results in “Logistics Information Systems” that can be manifested in: – a new course and – a branch of logistics education. • As a course, LIS is designed to provide professionals working within the logistics and operations management area with the skills to manage the flow of materials and information within and between organizations and their business environment. • As a branch of logistics education, LIS focuses on the use of information technology as a critical enabler of the supply chain networks that businesses use to acquire, produce, and deliver goods and services all over the world. 29
  • 30. Thank You 30