IT for Transportation Slide Notes

1. CH 7 –
INFORMATION MANAGEMENT
AND TECHNOLOGY

2. CONTENT
CH7 - Information Management & Technology
6.1 Intelligent Transport System
6.2 Area of Application

3. What is Intelligence Transport
System?
CH7 - Information Management & Technology
An Intelligent Transportation System (ITS) is….
➢ An advanced application which aims to provide innovative
services relating to different modes of transport and traffic
management and enable users to be better informed and
make safer, more coordinated, and “smarter” use of
transport networks.

4. Introduction
CH7 - Information Management & Technology
❑ IT use in supply chain explodes in ’90s
▪ IT use enables reduction of assets
▪ IT use enables better management of
a) Information flows
b) Product flows
c) Cash flows
❑ Chapter examines IT from perspectives of shipper, carrier, and receiver.
❑ Purpose
▪ Collect, organize, and portray meaningful data to decision makers
▪ Serve multiple organizational levels
▪ Facilitate integrated decision making within firms and across
supply chain.
❑ Core components
▪ Common databases, hardware, software
▪ Enterprise Resource Planning (ERP) Systems.

5. Transaction Phase
in Transportation
CH7 - Information Management & Technology
(Info needed to plan carrier
movement)
• Shipper needs purchase
order, forecasts, POS data,
equipment availability,
possible pick-up times
➢ Input to carrier
selection decisions
• Carrier needs Bill of Lading
info., preferred pick-up and
delivery times.
• Receiver need advance
shipment notice, scheduled
delivery times.
Pre-Transaction Phase
• All parties need shipment
status info
➢ Carriers typically
provide on exception
basis.
• Shipper and receiver needs
depend upon terms of sale
➢ Proof of delivery and
carrier performance
➢ Freight Bill
➢ Claims, if necessary
• Carrier needs payment info,
claims info
Transaction Phase
Post-Transaction
Phase

6. CH7 - Information Management & Technology
Transaction Phase
in Transportation (Cont.)

7. CH7 - Information Management & Technology
The Importance of Bill of Lading (BOL)
❑ Prime sources were paper documents
❑ Bill of Lading (BOL)
▪ Initiates shipment, typically generated by Carrier
▪ FIVE (5) legal purposes:-
✓ Receipt for goods
✓ Description of shipment
✓ Defines terms of contract between carrier & shipper.
▪ Minimum information required:-
✓ Origin/Destination of shipment
✓ Carrier designation
✓ Special operating instructions
▪ THREE (3) types of Bill of Lading:-
1) Original BL
2) Sea waybill / Express BL
3) Telex
✓ Evidence of tittle to goods
✓ Operating document
✓ Shipment description
✓ Billing instructions

8. CH6- Information Management & Technology : Mdm. Hidayah
EXAMPLE OF BOL
Original Master BL Original House BL MBL Seawaybill

9. CH7 - Information Management & Technology
IT Area of Application in Transportation
❑ A leading and constant concern of logistics and transport managers
❑ Area of application:-
▪ Top application: Connecting to supply chain
▪ Drivers:-
• Information can substitute for assets, services.
➢ Ex: Satellites, inventory visibility, safety stocks
• Cost of IT continues to fall and capabilities rise.
➢ Hardware, Software, networking communication and
data exchange capabilities
• Supply chain partners demand more info
➢ Ex: Collaborative Planning, Forecasting and
Replenishment (CPFR) requires sharing/ collaborating on
demand forecasts
• Managing information flows well is critical to meeting
customer demands and to efficient operations and profitability
➢ Info flow necessary for managing relationships and
product and cash flows.

10. CH7 - Information Management & Technology
IT Area of Application
in Transportation (Cont.)

11. CH6- Information Management & Technology : Mdm. Hidayah
IT Area of Application in
Transportation (Cont.)
➢ The Basics
1) Electronic Data Interchange (EDI)
❑ Definition: The application-to-application exchange of standard
format business transactions
▪ One of oldest IT forms, now nearly a standard requirement.
❑ Advantages:
▪ Eliminates human intervention and errors
▪ Reduce transaction costs by reducing labor costs
▪ Improves customer service – auto. Exception alerts

12. CH7 - Information Management & Technology
IT Area of Application in
Transportation (Cont.)
➢ The Basics
2) Automatic ID – Bar Coding
❑ Pattern of darks bars and spaces that when coupled with other IT
provides info on product movement throughout supply chain.
❑ Requires standard formats od bars/space patterns
▪ Code 39 and Code 128 are most popular formats.

13. CH7 - Information Management & Technology
IT Area of Application in
Transportation (Cont.)
➢ The Basics
3) Track and Trace
❑ Provides in-transit shipment visibility
❑ Great enhanced by satellite technology
coupled with EDI and radio frequency
(RF) technology
▪ Carrier can monitor vehicle
positions, better manage vehicle
utilization, and be more customer
responsive.
❑ Classification of shipper by track/trace
capability
▪ Lagging edge
▪ Mainstream
▪ Leading edge

14. CH7 - Information Management & Technology
IT Area of Application in
Transportation (Cont.)
➢ Emerging
1) Electronic Product Code (EPC) tags
❑ Bar code info: Static and requires readers to
capture.
❑ EPC or “Smart” tags
▪ Info can be updated, carrying more info
than bar codes and transmit info via RF
technology.
❑ Wal-Mart requirements for RFID

15. CH7 - Information Management & Technology
IT Area of Application in
Transportation (Cont.)
➢ Emerging
2) The Internet
❑ Principal current uses
▪ Information resources: Ex; Track and Trace
▪ Communication purposes
➢ Share demand, production forecasts
➢ CPFR, Collaborative Transportation
Management (CTM)
❑ Many future applications
▪ Sales interface
▪ Customer service utility
▪ Load-matching services
❑ Trends in e-business capabilities to support
transport

16. CH7- Information Management & Technology
EXAMPLE OF TRANSPORT
COMPANY WEBSITE

17. CH7- Information Management & Technology
IT Area of Application in
Transportation (Cont.)
➢ The Future
1) Internet-Intelligent application
❑ Heuristics designed to reduce degree of
manual interaction
▪ Ex; Event management/Smart
Logistics
2) Transparent EDI
▪ Reducing EDI cost via more flexible
standards
3) Data Warehousing
▪ Aggregation of a firm’s functional
databases into relational
databases

18. CH6- Information Management & Technology : Mdm. Hidayah
IT Area of Application in Transportation (Cont.)
❖ To detect congestion and notice accidents
❖ Transmit signal from cameras to specific limited set of monitors
➢ Traffic CCTV
❖ Can be used at car park: Inform the available car parking space
❖ Used on roadways to give travelers info on specific event
❖ Ex; Sign – Warn of traffic congestion, accidents, incidents, roadworks zones,
speed limits
➢ Variable Message Sign
❖ Comprise a transducer for detecting acoustic waves at the location
❖ Audio output – A processor for determining a probable occurrence or
impending occurrence of a vehicular incident
❖ For monitoring location to detect and report a vehicular incident.
➢ Accident Monitoring
System

19. CH6- Information Management & Technology : Mdm. Hidayah
IT Area of Application in Transportation (Cont.)
❖ Long Lasting compared to bulb
❖ Can be used 100,000 – 1,000,000 hours
❖ Produced more light per watt useful in energy saving device
❖ Lower maintenance cost
❖ Increased visibility
➢ LED Traffic Light
❖ To estimate traffic jam condition ahead of a vehicle.
❖ Once vehicle arrives at the tail end of traffic jam, information is transmitted to
an information center
❖ Information center collect information related to plural traffic jams from on-
vehicle information
❖ Information center transmits the estimated tail end information to vehicle
approaching traffic jams.
❖ Driver need to determine whether a traffic jam should be avoided or not
➢ Traffic Jam Sensor

20. CH7 - Information Management & Technology
LOGISTICS MANAGEMENT SYSTEM

21. CH7 - Information Management & Technology
BENEFIT OF THE IT APPLICATION
Category Benefits
Applications for
transportation management
• Transportation management applications allow finding the most
efficient way for goods movement in term of time and cost
• Transportation management systems allow programing shipping ang
optimizing routes, as well as supporting terminals operation
management
• It is possible to use the information generated by the system in order to
make real-time analysis of transporters performance
• These systems generate financial, environmental and fuel consumption
benefits associated with cost reduction and routes optimization, which
become evident in shorter total travel distances.
Applications for supply chain
execution
• One of the most important benefits is the generation of greater
information visibility and sharing across the supply chain.
• Applications for supply chain execution increase productivity, flexibility
and the ability to exchange information throughout the organization
• This kind of application increases competitiveness of companies,
improves resources coordination and carries out execution process for
order management, advanced planning, coordination, optimization and
real-time adjustments in more efficient way

22. CH7 - Information Management & Technology
BENEFIT OF THE IT APPLICATION
Category Benefits
Applications for Field Force
Automation
• Their benefits are increased operation efficiency, reduced handling
times, reduced delays, reduction in waiting times, reduction of manual
efforts and stationery, resources optimization, better handling and
transmission of information, increased connectivity, increased flexibility,
and increase interaction among areas.
Fleet and Freight
Management Applications
• The benefits are improved internal operations, reduced use of paper,
reduced waiting times, optimization in the use of available resources,
minimization of costs and sources for materials input operations, faster
response time to unexpected events, and better response to customer’s
requests.

23. CH7- Information Management & Technology