IMPACT OF INFORMATION IMPACT OF INFORMATION TECHNOLOGY ON TECHNOLOGY ON

LOGISTICSLOGISTICS

LOGISTICSLOGISTICSDEFINITIONDEFINITION

““Logistics is the process of Logistics is the process of strategically managing the strategically managing the acquisition ,movement and storage acquisition ,movement and storage of material ,parts and finished of material ,parts and finished inventory and the related information inventory and the related information flow through an organization and its flow through an organization and its marketing channels to fulfill orders marketing channels to fulfill orders most cost effectively”most cost effectively”

-“council of -“council of logistics management” ,USA. logistics management” ,USA.

MARKET LOGISTICSMARKET LOGISTICS

Market logistics involves planning the Market logistics involves planning the infrastructure to meet demand ,then infrastructure to meet demand ,then implementing and controlling the implementing and controlling the physical flows of material and final physical flows of material and final goods from points of origin to points goods from points of origin to points of use, to meet customer of use, to meet customer requirement at a profit. requirement at a profit.

Supply chain managementSupply chain management(SCM)(SCM)

Involves procuring the right inputs; Involves procuring the right inputs; converting them efficiently into converting them efficiently into finished product; and dispatching finished product; and dispatching them to the final destination.them to the final destination.

STEPS OF MARKETING STEPS OF MARKETING LOGISTICS PLANNING LOGISTICS PLANNING

Deciding on the company’s value Deciding on the company’s value proposition to its customers.proposition to its customers.

Deciding on the best channel design and Deciding on the best channel design and network strategy for reaching the network strategy for reaching the customer.customer.

Developing operational excellence in sales Developing operational excellence in sales forecasting, warehouse management, forecasting, warehouse management, transportation management, and transportation management, and materials management.materials management.

Implementing the solution with the best Implementing the solution with the best information system, equipment, policies, information system, equipment, policies, and procedure.and procedure.

Market logistics task calls for Market logistics task calls for Integrated logistics systemIntegrated logistics system

Material management Material management Material flow system Material flow system Physical distributionPhysical distribution

Impact of internet on logisticsImpact of internet on logistics

Integrated logistics system is assisted by Information Integrated logistics system is assisted by Information technology.technology.

Information system play a critical role in managing market Information system play a critical role in managing market logistics ,especially computers, point-of –sale, terminals, logistics ,especially computers, point-of –sale, terminals, uniform production bar codes ,electronic data interchange uniform production bar codes ,electronic data interchange and electronic funds transfer. and electronic funds transfer.

These developments have shortened the order-cycle time, These developments have shortened the order-cycle time, reduced clerical labor, reduced the error rate in document, reduced clerical labor, reduced the error rate in document, and provided improved control of operation. They have and provided improved control of operation. They have enabled companies to make promises such as ”the product enabled companies to make promises such as ”the product will be at dock 25at 10:00 a.m. tomorrow”. and control this will be at dock 25at 10:00 a.m. tomorrow”. and control this promise through information.promise through information.

PORT COMMUNITY SYSTEMPORT COMMUNITY SYSTEM

A Port Community System is an A Port Community System is an electronic platform which connects electronic platform which connects the multiple systems operated by a the multiple systems operated by a variety of organisations that make up variety of organisations that make up a seaport, airport or inland port a seaport, airport or inland port community. It is shared in the sense community. It is shared in the sense that it is set up, organised and used that it is set up, organised and used by firms in the same sector – in this by firms in the same sector – in this case, a port community. case, a port community.

Market-logistics objectivesMarket-logistics objectives

““Getting the right goods to the right places Getting the right goods to the right places at the right time for the least cost”.at the right time for the least cost”.

For example;For example; The traffic manager favors rail shipment The traffic manager favors rail shipment

over air shipment because rail costs less. over air shipment because rail costs less. However, because the railroads are However, because the railroads are slower, rail shipment ties up working slower, rail shipment ties up working capital longer, delays customer payment, capital longer, delays customer payment, and might cause customers to buy from and might cause customers to buy from competitors who offer faster service.competitors who offer faster service.

PCSPCS

A Port Community SystemA Port Community System

• • Is a neutral and open electronic Is a neutral and open electronic platform enabling intelligent and platform enabling intelligent and secure exchange of information secure exchange of information between public and private between public and private stakeholders in order to improve the stakeholders in order to improve the efficiency and competitive position of efficiency and competitive position of the sea and airports’ communities.the sea and airports’ communities.

PCSPCS

Optimises, manages and automates Optimises, manages and automates smooth port and logistics processes smooth port and logistics processes through a single submission of data through a single submission of data and by connecting transport and and by connecting transport and logistics chains.logistics chains.

PCSPCS

A PCS provides for the electronic A PCS provides for the electronic exchange of information between all exchange of information between all port and logistics sectors and is port and logistics sectors and is acknowledged as the most advanced acknowledged as the most advanced method for the exchange of method for the exchange of information within a single or information within a single or national port community national port community infrastructure. infrastructure.

PCSPCS

A PCS is therefore pivotal in the A PCS is therefore pivotal in the Single Window concept and will Single Window concept and will reduce duplication of data input reduce duplication of data input through efficient electronic exchange through efficient electronic exchange of informationof information

Why choose to have a Port Why choose to have a Port Community System? The Reason • Community System? The Reason • To reduce inefficiencies in port To reduce inefficiencies in port business processes • To facilitate the business processes • To facilitate the smooth flow of electronic datasmooth flow of electronic data

PORT SINGLE WINDOWPORT SINGLE WINDOW

"A facility that allows parties involved in trade and transport to lodge standardized information and documents with a single entry point to fulfil all import, export, and transit-related regulatory requirements. If information is electronic then individual data elements should only be submitted once."

PORT SINGLE WINDOWPORT SINGLE WINDOW

ASYCUDAASYCUDA

ASYCUDA refers to the Automated ASYCUDA refers to the Automated System for Customs Data (ASYCUDA) System for Customs Data (ASYCUDA) software that was designed by the software that was designed by the United Nations Conference for Trade United Nations Conference for Trade and Development (UNCTAD) for and Development (UNCTAD) for automation of Customs processes. automation of Customs processes.

The ASYCUDA Customs management The ASYCUDA Customs management system covers most foreign trade system covers most foreign trade procedures. The system handles procedures. The system handles manifests and Customs declarations, manifests and Customs declarations, accounting procedures, and transit accounting procedures, and transit and suspense procedures. and suspense procedures.

It takes into account the international It takes into account the international codes and standards developed by codes and standards developed by the International Organization for the International Organization for Standardization (ISO), the World Standardization (ISO), the World Customs Organization (WCO) and the Customs Organization (WCO) and the United Nations. It can also be United Nations. It can also be configured to suit the national configured to suit the national characteristics of individual Customs characteristics of individual Customs departments.departments.

Automation is the core of Customs Automation is the core of Customs reform and trade facilitation. It not reform and trade facilitation. It not only expedites processing of only expedites processing of Customs documents, but it also Customs documents, but it also reduces physical interaction between reduces physical interaction between officers and traders. This, in turn, officers and traders. This, in turn, reduces opportunity for corruption. reduces opportunity for corruption.

Automating the declarations forms, Automating the declarations forms, process and payment with ASYCUDA process and payment with ASYCUDA saves traders a considerable amount saves traders a considerable amount of time in the import and export of time in the import and export process.process.

Market Logistics DecisionsMarket Logistics Decisions

Four major decisions must be made with Four major decisions must be made with regard to market logistics.regard to market logistics.

1.1. How should order be handled? (Order How should order be handled? (Order processing);processing);

2.2. Where should stock be located? Where should stock be located? (warehousing);(warehousing);

3.3. How much stock should be held? How much stock should be held? (inventory);(inventory);

4.4. How should goods be shipped? How should goods be shipped? (transportation).(transportation).

Organizational LessonsOrganizational Lessons

1.1. Companies should appoint a senior vice president of Companies should appoint a senior vice president of logistics to be the single point of contact for all logistical logistics to be the single point of contact for all logistical elements. This executive should be accountable for elements. This executive should be accountable for logistical performance on both cost customer cost and logistical performance on both cost customer cost and customer-satisfaction criteria.customer-satisfaction criteria.

2.2. The senior vice president of logistics should hold periodic The senior vice president of logistics should hold periodic meeting with sales and operations people to review meeting with sales and operations people to review inventory operating costs, and customers services and inventory operating costs, and customers services and satisfaction, as well as to consider market conditions and satisfaction, as well as to consider market conditions and whether changes should be made in production whether changes should be made in production schedules.schedules.

3.3. New software and system are the key to achieving New software and system are the key to achieving competitively superior logistics performance in the future.competitively superior logistics performance in the future.

Conclusion Conclusion

Market logistics strategies must be derived Market logistics strategies must be derived from business strategies, rather than from business strategies, rather than solely from cost considerations. The solely from cost considerations. The logistics system must be information –logistics system must be information –intensive and establish electronic links intensive and establish electronic links among all the significant parties .among all the significant parties .

Finally ,the company should set its logistics Finally ,the company should set its logistics goals to match or exceed competitors’ goals to match or exceed competitors’ services standard and should involve services standard and should involve members of all relevant teams in the members of all relevant teams in the planning process. planning process.