Logistics information system of Classification and methods

The logistics is, first of all, a management of financial, material and resource flows. The person holding a position of the logistician first of all is obliged to be the good manager and the strategist. Besides, to be able to find alternative options of work, to think over the most effective actions, to expect non-staff situations and possible unplanned expenses.

The sphere of cargo delivery at all not a template as can seem at first sight. Each separate case of transportation and transportation of goods or service should have own solution and the individual action plan.

The main objective of most transport companies – to deliver a freight strictly in the stipulated time (the widespread concept "just in time"). If to classify this task, we receive several not so global tasks:

• right choice of the vehicle
• planning of transport process and its approval of working and warehouse conditions
• determination of optimal delivery routes

Classification

The logistic structure of any company is broken into certain areas which, are interconnected among themselves. Perhaps some of links are also unnecessary the companies. However the more the firm, the is more than links to its logistic structure. Let's call some, the most important of them:

• Logistics in the field of deliveries
• Production logistics
• Sales logistics
• Transport logistics
• Management of a logistics chain

Methods

Each of areas differs in specifics inherent in it and requires own approach in management.

• S&OP   the Schedule system of sales and operating activities is (Sales & Operation Planning)
• FP&S   the Schedule system of technology processes and creation of schedules is (Factory planning & Scheduling)
• SRM  (Supplier Relationship Management)  is the Vendor relationship management system
• CRM  (Customer Relationship Management)  is the Customer relationship management system
• TMS  (Transportation Management System)  is the Management system for transport
• WMS (Warehouse Management System)  is the Warehouse management system

When choosing the logistic software it is not just about functionality or about presumably most resembling software supplier. Perspective information systems have big flexibility, ample opportunities of integration and allow to increase profitability due to effective management of resources.

The logistics is an important structure member of costs. Having exhausted the potential of optimization of the internal logistics (intralogistics) for last years, many enterprises come to the decision to look for additional opportunities by implementation of the new information technologies (IT) in processes of logistics. But there is a question: by what criteria it is necessary to be guided when choosing logistic IT systems that they conformed to modern requirements of complex logistics and quickly changing business processes? The high cost of marketing researches, complexity of comparison of products and the huge market of suppliers do not allow many interested enterprises to answer this question. Let's consider essential acceptance criterions of the solution.

1. Intralogistics trends

The one who wants that its investments conformed to requirements of tomorrow should have an idea of the existing trends of development of the situation and its driving forces. In the research "Future of Intralogistics 2020+" of Research society on intralogistics, the hoisting-and-transport equipment and logistics systems (IFL) three global trends which can have significant effect on the future of intralogistics were revealed:

• globalization,
• increase in efficiency of use of resources,
• development and implementation of innovations.

These three trends serve as a starting point of the choice as suitable and, first of all, a perspective IT system: it should stimulate the innovation activity of the enterprise and promote development of business processes or, at least, give them support. It should provide optimal, economic use of the available resources. Also system integration – through borders and continents is important for the global enterprises. In other words, capability to integration, flexibility and efficiency are at the moment defining when choosing modern logistic software.

2. Standard software with properties of an individual system

Considering the expenditure budget and terms of implementation, the individual systems ceased to conform to requirements of time long ago. Software for intralogistics, as well as logistic processes, remains the individual solution, however it is under construction on the basis of the standard products having modular structure. Within the opportunities modules of this standard system are combined according to user requirements and due to parametrization and scaling are configured on specific processes.

So for example, the software of the class Premium to which also IT systems of PSI Logistics (PSI) company belong allows to perform besides integration, display and management of the special processes which are beyond widespread conventional processes. The company developed for this purpose the special automated procedure of tests and special project management with use, so-called, flexible modeling. Reduction of terms of accomplishment and expenses on developmental works, high flexibility and quality of systems became result. Besides, there was an opportunity to expand functionality of the developed software even after completion of design.

3. Architecture

The flexibility of software should be put already in foundation architecture. The aspect focused (service-oriented) architecture (SOA) represents a modern basis for this purpose. In it the fact that concepts and the systems of modern complex logistics cover more and more new, more difficult processes is considered, and the software, in turn, constantly expands a range of the functionality. The PSI Logistics company improved this modern approach on the basis of SOA, having created service - the focused architecture based on Java (SOJA). Thanks to SOJA diverse IT infrastructures purchase capability to integration and the loudspeaker. Architecture of SOJA ensure the coordinated work of diverse IT systems and use of single solutions in the field of monitoring in the form of different, specific to the industry and/or functions of the software products connected with each other similar to network with a bus architecture. It allows the different systems to work with a row and jointly with each other and simplifies solution of the problem of interfaces.

4. Interfaces

Distinctive feature of projects of intralogistics is that numerous components (from racks, the hoisting-and-transport equipment and rack pilers to management systems and managing computers), producers and subcontractors should work in coordination. Besides, development of interfaces for operational and economic IT systems often is required.

If processes are beyond the separate enterprise, still requirements of information exchange in more complex networks with heterogeneous system landscapes are added to it. In the future as a result of an interdepartmental categorization there will be an opportunity as usual to connect the equipment to certain interfaces, to expand or (when changing technology) to upgrade it in separate parts, like building block systems. SOJA is perspective foundation architecture for implementation of this purpose.

5. Total costs on IT

It agrees carried out by researches, at investments into a warehouse management system of the 6-unit amounts of euro, only 15% of total costs (TCO – Total Cost of Ownership) are the share of initial investments. Considering equipment costs and networks, auxiliary and operating costs and cost of services initial investments are equated almost to 40% of the total project costs of IT solutions. About 60% of costs leave on further providing lifecycle.

Therefore, initial investments should be aimed not just at finding the most profitable software supplier. First of all it is necessary to consider such aspects as operation models, contractual providing a guarantee of readiness and additional opportunities thanks to which the software can not only support modern business processes, but also it is easy to be integrated into future entrepreneurial and/or technology development.

6. Trends and technologies

Modern logistic IT systems offer not only multifunction opportunities. Distinguishers of perspective IT systems are their flexibility and capability to integration. Flexibility – in terms of usefulness of these systems in the changing, dynamic business processes. Integration is meant as integration into modern IT infrastructures, integration of the processes which are beyond one enterprise, and modern technologies (for example, RFID). All this becomes possible, thanks to developing, capable to updating and the common software configured on individual requirements.

7. User interface

The user interface is an important element of performance improvement and perception of a system by users. The slogan "the more brightly, the better", remained in the past. The most important are other aspects. Demographic changes mean emergence of bigger number of the users speaking a foreign language. The shortage of specialists requires big flexibility in models and structures of working time. Fast change of work locations does necessary development of the intuitive, easily mastered interfaces for work with a system. For performance improvement each user should have an opportunity to organize the workplace according to the tasks.

All this proves high requirements to the concept of the operator interface in modern logistic software. The logistics is characterized by information and mobility. With respect thereto more and more functions of IT systems in logistics will be used mobile. They will be beyond a far classical management system for pilers and paperless commissioning. IPhones and IPad of Apple company can be examples.

8. Networks between the enterprises

At the same time the enterprises will be exposed to more and more strong pressure from the global competition, price increase and the growing quality requirements and to service in new economic space. Transport chains will need to be arranged under the changing conditions. It means serious effects for logistic software. For example, in terms of perspective functionality centralized systems, modeling of costs for transportations and an opportunity to plan, to vary by modeling and to optimum organize chains of value creation and network worldwide will become strategic instruments of the global competition.

You See Also

• TMS Transportation Managament System
• Monitoring of transport and navigation (market of Russia)
• In more detail about trends of development of a class of the TMS systems
• Management systems for motor transport service (FMS)
• Management system of a MRO of vehicles and arms
• Container Terminal Management - Control of the container terminal
• Logistics information system
• Security system and control of motor transport

• Freight air transportation (market of Russia)
• Cargo transportation (market of Russia)
• Cargo transportation automobile (market of Russia)
• Cargo transportation by the inland water transport (market of Russia)
• Cargo transportation by the marine transport (market of Russia)
• Railway cargo transportation (market of Russia)
• Passenger air transportation