LIT B Sung 19.4

FD1: FREIGHT LOGISTICS OPERATION
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MODULE: LOGISTICS INFORMATION TECHNOLOGIES
MODULE CONTENTS
Chapter 1 Basic Understanding of Computer And Its Environment And
Information Systems
Chapter 2 Overview of Information Technology
Chapter 3 Core Technologies in Logistics: EDI, RFID, GPS
Chapter 4 E-commerce and Cloud Sourcing
Chapter 5 Warehouse Management System - WMS
Chapter 6 Transport Management System - TMS
Chapter 7 Enterprise Resource Planning - ERP
Chapter 8 ASEAN Single Window - ASW

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CHAPTER 1. BASIC UNDERSTANDING OF COMPUTER AND ITS ENVIRONMENT AND
INFORMATION SYSTEMS
Learning Objective:
❖ The student should understand all basic concepts in respect to the hardware, software and operating
systems.
❖ The student should have knowledge about the different types of information processes in the business
environment.
❖ The student should further be aware of the different roles assumed by computing personnel, and that
ethics of usage is an important element for both computer staff and users.
Content:
• Understanding of Hardware, Software
• Different types of Operation systems
• Basic Principles of Information Processing in the Business environment
• Tasks of Computing Personnel
• Understanding of Information Systems
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INFORMATION SYSTEMS
1.1 Understanding of Hardware and Software
A typical personal computer consists of the following main components:

• A case or chassis in desktop or tower shape
• Motherboard or system board, including Central processing unit (CPU), Random Access Memory
(RAM), Basic Input-Output System (BIOS), and Buses
• Power supply
• Storage controllers that control hard disk, floppy disk, CD-ROM and other drives
• And others such as video display controllers, removable media writers
Applications software is a set of the programmes that enable users to perform specific information
processing activities.
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INFORMATION SYSTEMS
1.2 Basic hardware components of a computer system
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INFORMATION SYSTEMS
1.2 Major Categories of Computers

• Mainframe: Mainframes are powerful computers used for large-scale data processing;
• Minicomputer: Minicomputers offer an intermediate stage between the power of mainframe
systems and the relatively low cost of microcomputer systems.
• Microcomputer: Microcomputers are considered less powerful than minicomputers and
mainframes, but are more flexible and relatively inexpensive to purchase; PC
• Legacy system: A system which has been superseded by new technologies or business
practices.
• Client/server: The client/server architecture consists of client computers such as PCs sharing
resources such as a database stored on a more powerful server computer;
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INFORMATION SYSTEMS
1.3. Type of Microcomputer

• Workstation: A powerful terminal or personal computer system, usually used in specialized
applications, such as computer-aided design (CAD);
• Desktop computer: Intended for office use to support the day-to-day activities of an
organization's employees.
• Notebook: A small portable computer, which is approximately the size of an A4 sheet of
E
Portable
Computer paper. Laptop
BY0D)
(not
• Tablet /Smartphone: A portable computing device normally equipped with a touch screen
and/or a stylus.
• Portable computer: A self-contained computer with integrated power supply, keyboard,
pointing device and visual display unit to facilitate carrying.
• Apple Macintosh: A family of personal computers produced by Apple Computers.
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INFORMATION SYSTEMS
1.4. Categories of Computer Software
SOFTWARE
SYSTEM SOFTWARE APPLICATIONS

SOFTWARE
General Application
Operating Ultility Development
purpose specific
Systems Programs Programs
software software
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INFORMATION SYSTEMS
1.5. Software
• A series of detailed instructions that control the operation of a computer system.
• Software exists as programs that are developed by computer programmers.
Systems
software Applications
software
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INFORMATION SYSTEMS
1.6. System vs Application Software
• Operating system (OS): Software that interacts with the hardware of the computer in
order to manage and direct the computer’s resources.
• Utility programs: Utility programs provide a range of tools that support the operation and
management of a computer system.
• Development programs: Allow users to develop their own software in order to carry out
processing tasks;
• Applications software can be defined as a set of programs that enable users to perform
specific information-processing activities.
• Applications software can be divided into two broad categories: general-purpose and
application-specific;
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INFORMATION SYSTEMS
1.7 Tasks of computing personel

❖Role of the users ❖Ethics of Computing personel
➢ Input data ➢ Access to information system
➢ Process data ➢ Automatically track staff works
➢ Utilize data ➢ Observe employess’s operation
➢ More responsibilites from programmers
➢ Trust – most crucial requirement for a
❖Role of the System Administrator programmer.
➢ More important
➢ New system development ❖Ethics of Users
➢ Maintain system ➢ Obey the laws that pertain to computers
➢ Customer support ➢ Make sure confidential information
➢ Use the information provided by computer
➢ Update applications appropriately.
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INFORMATION SYSTEMS
1.8 Basic of Information Systems
• An information system (IS) is a set of interrelated elements that:
• Collect (input), Manipulate (process), Store, Disseminate (output) data and information
• Provide a corrective reaction (feedback mechanism) to meet an objective
• Input: activity of gathering and capturing raw data

• Processing: converting data into useful outputs
• Output: production of useful information: Usually in the form of documents and reports
• Feedback: information from the system: Used to make changes to input or processing activities
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INFORMATION SYSTEMS
1.9 Components of Information Systems Hệ thống thông tin

• A computer-based information system (CBIS): is an IS that performs some
or all of its tasks using computer technology
• CBIS Components
• Hardware
• Software
• Database
• Network
• Procedures
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INFORMATION SYSTEMS
1.10 Components of Information Systems

• A computer-based information system (CBIS): is an IS that performs some or all
of its tasks using computer technology
• CBIS Components
• Hardware
• Software
• Database
• Network
• Procedures
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INFORMATION SYSTEMS
1.11 Levels of managerial decision making

• Most organizations have three general decision-making levels: operational,
managerial, and executive.
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INFORMATION SYSTEMS
1.12 Type of Decision
• Structured decisions: Decisions that are repetitive and routine and have a definite
procedure for handling them.
• Semi-structured decisions: Decisions in which only part of the problem has a clear-
cut answer provided by an accepted procedure.
• Unstructured decisions: Nonroutine decisions in which the decision maker must
provide judgment, evaluation, and insights to solve problem.
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INFORMATION SYSTEMS
1.12 Information Systems for Manages

• Information technology enhances business
processes by:
• Increasing efficiency of existing
processes
• Automating steps that were
manual
• Enabling entirely new processes
• Change flow of information
• Replace sequential steps with parallel
steps
• Eliminate delays in decision making
• Support new business models
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INFORMATION SYSTEMS
1.13 TPS: Transaction Processing Systems

• Serve operational managers and
staff
• Perform and record daily routine
transactions necessary to conduct
business
• Examples: sales order entry,
payroll, shipping
• Allow managers to monitor status of
operations and relations with
external environment
• Serve predefined, structured goals
and decision making
A TPS for payroll processing captures employee payment transaction
data (such as a time card). System outputs include online and hard-
copy reports for management and employee paychecks.
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INFORMATION SYSTEMS
1.14 MIS: Management Information Systems

– Serve middle management
– Provide reports on firm’s
current performance, based on
data from TPS
– Provide answers to routine
questions with predefined
procedure for answering them
– Typically have little analytic
capability In the system illustrated by this diagram, three TPS supply summarized
transaction data to the MIS reporting system at the end of the time period.
Managers gain access to the organizational data through the MIS, which
provides them with the appropriate reports.
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INFORMATION SYSTEMS
1.15 DSS: Decision Support Systems

• Serve middle management and above
• Support nonroutine decision making
• Example: What is the impact on
production schedule if December
sales doubled?
• May use external information as well
TPS / MIS data
• Model driven DSS: Voyage-estimating
systems
• Data driven DSS: Intrawest’s
marketing analysis systems This DSS operates on a powerful PC. It is used daily by managers who must
develop bids on shipping contracts.
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INFORMATION SYSTEMS
1.16 ESS: Executive Support Systems
• Support Executive (senior management)
• Address nonroutine decisions
• Requiring judgment, evaluation, and
insight
• Incorporate data about external events
(e.g., new tax laws or competitors) as well
as summarized information from internal
MIS and DSS
• Example: Digital dashboard with real-time
view of firm’s financial performance:
working capital, accounts receivable,
A digital dashboard delivers comprehensive and accurate information for
accounts payable, cash flow, and decision making, often using a single screen. The graphical overview of key
inventory performance indicators helps managers quickly spot areas that need attention.
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INFORMATION SYSTEMS
1.18 Business intelligence

• Business intelligence
• Data and software tools for
organizing and analyzing data
• Used to help managers and users
make improved decisions
• Business intelligence systems
• Management information systems
• Decision support systems
• Executive support systems
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INFORMATION SYSTEMS
1.17. Logistics Information Systems
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INFORMATION SYSTEMS
1.18. Supply Chain Information System
Odoo.com
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supply chain
B2B
B2C
supplier > Manufacturer Distributor

>Retailer -
Consumer
3
22C
I producer ( whole saler
push-based, pull-based
RM
products
-
services
FG Customer
suppliers P. O
1
(EDI)
Receiving
so
Inbound
-
Beligere Outbound
>MP FA AR SM
Logistics
dream
SC
Car1)
Ong
Logistics
are
Notes: RM:raw materials
FG: finished goods
po: purchases order
So: Sales Order (phien ban

hang
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INFORMATION SYSTEMS
1.19. Modern Organizations
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INFORMATION SYSTEMS
1.20. Overall Business Processes
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INFORMATION SYSTEMS
1.21. Overall Business Processes- Order Fulfillment
Fulfilling a customer order involves a complex set of steps that requires the close
coordination of the sales, accounting, and manufacturing functions.
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INFORMATION SYSTEMS
1.22. Enterprise Systems Support for Business Processes
Enterprise systems feature a set of integrated software modules and

a central database that enables data to be shared by many different
business processes and functional areas throughout the enterprise
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INFORMATION SYSTEMS
1.23. The Extended Enterprise
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INFORMATION SYSTEMS
1.24. Value Chain
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INFORMATION SYSTEMS
1.25. The Future Internet-driven Supply Chain

The future Internet-
driven supply chain
operates like a digital
logistics nervous system.
It provides
multidirectional
communication among
firms, networks of firms,
and e-marketplaces so
that entire networks of
supply chain partners can
immediately adjust
inventories, orders, and
capacities.
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CHAPTER 2 - OVERVIEW OF INFORMATION TECHNOLOGY
CONTENTS
2.1 Key Role of Information

Technology in Logistics.
2.2 Goals of Information Technology

in Logistics.
2.3 Information Technology

Infrastructure.
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2.1 KEY ROLE OF INFORMATION TECHNOLOGY IN LOGISTICS
Information Technology is an enabler and a competitive tool for Logistics

and Supply Chain Management:
▪ Process and Operational Abilities.
▪ Provide Supply Chain Visibility.
▪ Time & Cost Saving.
▪ Decision making guidelines.
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***Key components of Supply Chain Technology.
Source: Martin Verwijmeren 35

2.2 GOALS OF INFORMATION TECHNOLOGY IN LOGISTICS

▪ Collect information on each product from the starting point (procurement) to the ending point
(distribution).
▪ Provide complete visibility for all parties involved
▪ Access any data in the system from a single-point-of-contact.
▪ Analyze, plan activities and make trade-offs based on information from the entire supply chain.
2.3 INFORMATION TECHNOLOGY INFRASTRUCTURES
▪ Interface Device: PC, Internet devices, bar-code scanner, RFID Tag
▪ Communications: Means to connect interface devices such as LAN, Intranet, Internet
▪ Databases: Place to store and archive data in an organized manner
▪ System Architecture: how various components like interface devices, communications, data bases are
configured.
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System Architecture
Data Warehouse Personal Computers
LAN / WAN
Internet Server
MiniComputers
Printer File Server

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Inter-Organizational Information System (IOIS)

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CHAPTER 3 - CORE INFORMATION TECHNOLOGIES IN LOGISTICS
CONTENTS
3.1 Electronic Data Interchange
3.2 Value-Added Network
3.3 Barcode
3.4 Radio Frequency Identification Devices (RFID)
3.5 Global Positioning System (GPS)
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3.1 ELECTRONIC DATA INTERCHANGE (EDI)
EDI Definition
• EDI - Electronic Data Interchange – the computer to computer exchange of information
between companies, using an industry standard format.
• Standardization is performed by the UTC (Uniform Transport Code) Foundation.
Types of Documents Exchanged by EDI

• Purchase order
• Invoice
• Delivery advices: Pre-alert; ASN
• Payment instructions
• Other documents between Business Partners
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How Does EDI Work?

Two basic methods for transfer
• Send the data directly from one computer to the other
• Send the data to a third party that consolidates and/or converts at proper location (VAN)
Direct
Transmission
EDI Transmission process Or
Sender Receiver
Business EDI EDI Business

Application Translation THIRD Translation Application
System System PARTY System System
A B NETWORK D E
C
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EDI format document
EDI Format Document
EDI connectivity
EDI Connectivity
Source: Introduction to Electronic Data Interchange (EDI) by CHAN, Siu-cheung Charles
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Benefits of Using EDI
▪ Quick access to information ▪ Improved tracing and

▪ Better customer service expediting
▪ Reduced paperwork ▪ Cost efficiency
▪ Competitive advantage
▪ Better communications ▪ Improved billing

▪ Increased productivity ▪ Reduce Bullwhip Effect
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3.2 VALUE-ADDED NETWORK (VAN)
VAN Definition: A value-added network (VAN) is a hosted service offering that acts as an
intermediary between business partners sharing standards based or proprietary data via shared
business processes.
Benefits of Van
• Minimize investment in wide-area communications
• Clearing house to send and/or receive data
• Data transmission can be stored by the VAN and delivered on demand
• Data can be achieved and delivered a second time if necessary without retransmission from
the sender
• Data transmission is secure
• Messages for tracking transmission success
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3.3 BARCODE
Barcode Definition: is an optical, machine readable, representation of data; the data

usually describes something about the object that carries the barcode. Instead of
typing the data, user can use a barcode scanner to input the codes to PC/ mobile
device to retrieve some information.
Types of Barcode:
1D barcode: 2D barcode: Readable vertically & horizontally
Stacked barcode
Matrix barcode 45
Barcode Applications:
BARCODE STANDARD USES

Uniform Product Code (UPC) Retail stores for sales checkout; inventory, etc.
Code 39 (Code 3 of 9) Identification, inventory, and tracking shipments
A superset of the UPC that allows extra digits for

European Article Number (EAN)
country identification
Japanese Article Number (JAN) Similar to the EAN, used in Japan
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Barcode
Applications
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Structure EAN – 13:

EAN-13 : 13 numbers ( From 0 to 9), have 4 group:
▪ Group1: 2-3 the first numbers is National code
▪ Group 2: 4-5 numbers is enterprise code
▪ Group 3: 5 numbers is product code
▪ Group 4 : the last number is check code
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Types of Barcoding Reader:
Wire Barcode Reader Wireless Barcode Reader Radio Frequency

(Wedge Scanner) (Wireless Scanner) Device (RF Device)
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3.4 RADIO FREQUENCY IDENTIFICATION (RFID)
RFID Definition: Radio Frequency Identification (RFID) refers to technologies that use
wireless communication between an object (or tag) and interrogating device (or reader) to
automatically track and identify such objects
RFID Application:
• Trace and Track transportation route of the product
• Identify the material
• Military
• Scientific Research (identify animal)
• Other
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Components of RFID:
❖RFID tag is divided into 3 categories:
▪Active tag
▪Semi-active /semi-passive tag
▪Passive tag (Class 1 Gen 2 ISO)
❖RFID tag has also been known as:
▪Read-only tag
▪Write-once-read-many tag
▪Read-write tag
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RFID Reader:
NEAR FIELD FAR FIELD
52
Benefits of RFID:
▪ RFID Supports Read/write Operation (Real time update)

▪ RFID is not limited to contact operation (Readable in wet, dirty condition)
▪ RFID Tags Can Be Hidden
▪ RFID Tags are very Secure
▪ RFID tags are Read at a Faster Speed
❖ Performance Affected by Frequency:

▪ High frequency (HF): 3 MHz - 30 MHz
▪ Ultra high frequency (UHF): 300 MHz – 3 GHz
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3.5 GLOBAL POSITIONING SYSTEM (GPS)
GPS Definition:
GPS/Galileo: a space-based satellite navigation
system that provides location and time
information in all weather conditions, anywhere
on or near the earth.
GPS Applications:
• Astronomy
• Automated Vehicle
• Fleet Tracking
• Location tracking
• Mining
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Components of GPS:
Server
GPS Satellite SMS
GPRS TCP / IP
Vehicle with Cellular Network Internet

Tracking System
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CHAPTER 4 - E-COMMERCE & CLOUD SOURCING
CONTENTS
4.1 Ecommerce Concept
4.2 Cloud Sourcing Concept
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4.1 COMMERCE (E-COMMERCE) CONCEPT
E-Commerce Definition:
• E-commerce: the replacement of
physical processes with electronic ones
• New models for collaboration with
customers and suppliers
• Apply to the interaction between
different companies as well as to the
interaction of individuals with
companies
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Development History of E-Commerce:
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CHAPTER 3 -4 -E-COMMERCE
CHAPTER E-COMMERCE & CLOUDSOURCING
& CLOUD SOURCING
4.1 COMMERCE (E-COMMERCE) CONCEPT

Components of E-Commerce:
Commercial perspectives Technical perspectives

▪ Website ▪ Database
▪ Merchant account ▪ Dynamic HTML
▪ Software ▪ Document object model
▪ Server ▪ Security
▪ Shopping cart ▪ Payment processing
▪ Security
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Benefits of E-Commerce:
FOR BUYER FOR SELLER

→ Reduction in buyer’s sorting → Have a global presence
out time. → Improve competitiveness and quality of service
→ Better decisions → Monitor customers’ preferences electronically
→ Less time is spent in → Reduce costs and add alternative purchasing options
resolving invoice and order due to removal of intermediary and traditional
discrepancies. retailer
→ Increased opportunities for → Allows the creation of virtual companies that
buying alternative products. distribute only through the web
→ The playing field is leveled for small companies
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4 Levels of E-Commerce:
Level Quality Cost
1 One-way communication Email, FTP, Browsing
Database access Inquiries, forms, purchases,

2
tracking
Data exchange
3 EDI, clearing house
Sharing processes CPFR, business communities,

4
VCI
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Features of E-Commerce:
▪ Purchasing order management

▪ Sales order Management
▪ Warehousing System
▪ Transportation System
▪ Integrated system
▪ Tracking system
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4.2 CLOUD SOURCING CONCEPT

Cloud sourcing Definition is the similar trend to outsourcing where an organization
outsources some or all of its business processes to a third-party vendor, except that in
outsourcing, the company deploys, hosts and executes a complete or vertical IT solution onto
a public or private cloud provider.
The fundamental, practical building blocks of Cloud Sourcing:
▪ SaaS: Software as a Service
▪ PaaS: Platform as a Service
▪ IaaS : Infrastructure as a Service
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Software as a Service (SaaS): where computer applications are accessed over the Internet
rather than being installed on a local computing device or in a local data center
For example: Google Docs, Zoho Creator, Pixlr
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Platform as a Service (PaaS): a software environment used to develop and run applications.
For example: Microsoft Word is an application that runs on the Microsoft Windows platform
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Infrastructure as a Service (IAAS): where a cloud supplier provides online infrastructure for data storage or
application running.
For example: whilst the Microsoft Word application runs on the Microsoft Windows platform, in turn the
Microsoft Windows platform runs on the infrastructure of an IBM-compatible PC.
IAAS Categories:
a customer rents a a customer rents a customer rents on a customer rents

number of physical dedicated physical demand a mix of dedicated virtual servers on
servers servers on demand physical servers and virtual demand
servers
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Advantages of Cloud Sourcing:
Accessibility Cost saving Scalability Task centric

Allows access Allows access Allows your Provide what
anywhere and anywhere and application to user want to
any internet- any internet- grow as your achieve
accessed-tools accessed-tools enterprise grows
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CHAPTER 5 - WAREHOUSE MANAGEMENT SYSTEM (WMS)
CONTENTS
5.1 WMS Definition

5.2 WMS Structure
5.3 WMS Functionalities
5.4 WMS Benefits
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CHAPTER
CHAPTER 5 -4WAREHOUSE
- WAREHOUSE MANAGEMENT
MANAGEMENT SYSTEM
SYSTEM (WMS)(WMS)
5.1 WMS DIFINITION
A WMS consists of software

and processes that allow
organizations to control and
administer warehouse
operations from the time goods
or materials enter a warehouse
until they move out.
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Warehousing Process Flow:
Inbound Internal Processing Outbound
▪ Purchases ▪ Pick ▪ Assembly ▪ Customer

▪ Mfg / Assembly ▪ Pack ▪ Storage Shipments
▪ Transfers ▪ Inspection ▪ Move ▪ Vendor Returns
▪ Outside Processing ▪ Count ▪ Replenish ▪ Transfers
▪ Outside
Processing
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5.2 WMS STRUCTURE
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5.3 WMS FUNCTIONALITIES
◼ Control inventory level ◼ Replenish and consolidate

different materials
◼ Control storage points
◼ Assign and Monitor the
◼ Monitor quality (on/off hold)
operation productivity
◼ Monitor turnover rate
◼ Reverse Logistics
◼ Monitor batch
◼ Provide report in real time
◼ Perform Cycle Count
◼ Support
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WMS Integrates Into Warehouse Processes

Label
Assemble
RMAs Purchases Receive Inspect Cross Dock Replen-
Putaway ish
Transfers
RF Support Tailorable
Cost Rules &
Workflow Move
Global Visibility Process
RTVs Orders Directed WIP
Transfers Ship Pack Pick
Issues
Count
Transfer
Seamless
Integration
Planning Purchasing Manufacturing Fulfillment
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Receiving Instruction Create ASN Appointment Print ASN
RECEIVING PROCESS Truck arrival Unloading Count Carton Putaway
Confirm Receiving Billing
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Shipping Instruction Create G/O Orders Print Picking list

DIO Allocation & Appointment
Picking Loading
OUTBOUND PROCESS IN WMS
Confirm Shipped Billing

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CHAPTER
CHAPTER 5 -4WAREHOUSE
- WAREHOUSE MANAGEMENT
MANAGEMENT SYSTEM
SYSTEM (WMS)(WMS)
CYCLE COUNT PROCESS IN WMS

Set Counting ❖ Base on inventory and
rule to generate
counting plan operation to set rule.
❖ Auto-generate discrepancy and
❖ Auto-generate counting plan.
Release counting plan counting report.
❖ Auto-adjust inventory based on
counting result.
Create counting plan ❖ Calculate the accuracy rate as
warehouse KPI
❖ Support temporary
counting.
❖ Support multiple
persons counting.
❖ Support multiple
Storage Area
times counting.
count carton
Generate &
Confirm counting Generate counting
confirm
Submit counting result result report
discrepancy report
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DASHBOARD
IN WMS
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5.4 WMS BENEFITS
Support Lower
Cost of Single global instance, mobile applications, built-in integration, barcode
Ownership and RF capabilities
Increase Optimized space and warehouse utilization, improved worker

Warehouse productivity, flexible process flows, monitoring and mgmt capabilities
Efficiency
Integrate WMS
Throughout the Out-of-the-box integration, full logistics support for all SCM flows
Enterprise
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CHAPTER 6 - TRANSPORT MANAGEMENT SYSTEM (TMS)
CONTENTS
6.1 TMS Definition

6.2 TMS Structure
6.3 TMS Functionalities
6.4 TMS Benefits
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6.1 TMS DIFINITION

TMS is a software application designed to manage and optimize inbound and / or outbound transportation
operations.
TMS usually "sits" between an ERP or Order Management System (OMS) and Warehouse Management
System (WMS)
6.2 TMS STRUCTURE
TMS STRUCTURE
▪ Shipment planning
▪ Order management
▪ Shipment execution
▪ Location management
▪ Shipment tender & review
▪ Equipment management
▪ Reporting (TMG & Finance)
▪ Carrier management
▪ Billing & invoicing
▪ Rates management
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6.3 TMS FUNCTIONALITIES

SHIPMENT PLANNING
Ideal Routes based on the operation research

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LOADING OPTIMIZATION
83
HAPTER 65 --TRANSPORT
CHAPTER TRANSPORT MANAGEMENT
MANAGEMENT SYSTEM
SYSTEM (TMS)
(TMS)
DASHBOARD FOR PERFORMANCE VISIBILITY
84
Business Units Transport Management Group

Units (TMG) Carriers
Orders from Business Units /
Invoicing payment (AP)
Customers
Billing (AR) Carrier rates (via negotiation)
Customers
TMS INTEGRATION CAPABILITY
Generate Transport Manifest

Milestone & POD updates
Multiple Drop-off & pickup Destination

Origin
(customer locations, Cross-docks)
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6.4 TMS BENEFITS
• Cost Reduction due to effective shipment

consolidation, best routing, transportation
planning
• Customer Service Enhancement on-going
transportation update / monitoring, real
time reports
• Inventory Reductions better inventory
plan with the accurate transportation
information
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CHAPTER 7 -ENTERPRISE RESOURCING PLANNING (ERP)
CONTENTS
7.1 ERP Development History
7.2 ERP Definition
7.3 ERP Components
7.4 ERP Modules
7.5 ERP Establishment
7.6 ERP Benefits and Challenges
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7.1 ERP DEVELOPMENT HISTORY
2000s:
Extended
1990s: ERP (ERP II)
Enterprise
1980s: Resource
CHAPTER 4 - WAREHOUSE MANAGEMENTPlanning
Manufacturing SYSTEM (WMS)
1970s: Resources (ERP)
Material Planning
1960s: Requirements (MRP II) ERP II:
Inventory Planning
Control (MRP) • Web–based software
Packages • Transaction processing
• Collaboration initiatives (SCM, CRM)
among business partner organizations
through the use of various e-business
technologies
88
7.2 ERP DIFINITION
E-Enterprise
R-Resource
P-Planning
A key ingredient of most ERP systems is the use of a unified database to store data for
various system modules.
89
7.3 ERP COMPONENTS
90
7.4 ERP MODULES
91
7.4 ERP MODULES

SALES & DISTRIBUTION
92
PRODUCTION
PLANNING
93
PRODUCTION
PLANNING
94
PRODUCTION
PLANNING
95
MATERIAL
MANAGEMENT CHAPTER 4 - WAREHOUSE MANAGEMENT SYSTEM (WMS)
96
MATERIAL
97
MATERIAL
98
FINANCIAL CHAPTER 4 - WAREHOUSE MANAGEMENT SYSTEM (WMS)

ACCOUNTING
99
FINANCIAL
ACCOUNTING
Assets Management
100
FINANCIAL
ACCOUNTING
Cash Management
101
COST
CONTROLLING
102
COST
CONTROLLING
Cost Centre CHAPTER 4 - WAREHOUSE MANAGEMENT SYSTEM (WMS)
103
COST
CONTROLLING
Production Costing CHAPTER 4 - WAREHOUSE MANAGEMENT SYSTEM (WMS)
104
HUMAN CHAPTER 4 - WAREHOUSE MANAGEMENT SYSTEM (WMS)

RESOURCE
105
7.5 ERP ESTABLISHMENT ▪ Hardware addition/upgrade

▪ Old master/transaction data migration
▪ Parallel run with Integration &
connectivity check
▪ Implementation
▪ Maintenance
▪ Software vendor selection
▪ Detailed study by the vendor
▪ Scope & platform finalization
▪ Freezing the commercials
▪ Development
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7.5 ERP ESTABLISHMENT
SAP (ERP) Example

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7.6 ERP BENEFITS AND CHALLENGE

ERP Benefits:
• Integrate financial information
• Integrate customer order information
• Standardize and speed up operations processes
• Reduce inventory
• Standardize Human Resources information
• Eliminate duplicate tasks ERP Challenge:
CHAPTER 4 - WAREHOUSE •MANAGEMENT
High cost. SYSTEM (WMS)
• Forced change of processes
• Very complex software
• Lack of trained people
• Flexibility of software system upgrades
• Implementation timelines
• Availability of internal technical knowledge and resources
• Education and training
• Implementation strategy and execution
• Resistance to change
108
CHAPTER 8 - ASEAN/NATIONAL SINGLE WINDOW
CONTENTS
8.1 Concept of ASEAN-National Single Window
8.2 Purpose of ASEAN-National Single Window
8.3 Vietnam Customs Window

CHAPTER
CHAPTER
4 - WAREHOUSE
7 - ASEAN/NATIONAL
MANAGEMENT
SINGLESYSTEM
WINDOW(WMS)
CHAPTER 6 - ENTERPRISE RESOURCING PLANNING (ERP)
109
8.1 CONCEPT OF ASEAN-NATIONAL SINGLE WINDOW
CHAPTER
CHAPTER
4 - WAREHOUSE
7 - ASEAN/NATIONAL
MANAGEMENT
SINGLESYSTEM
WINDOW(WMS)
110
National Single Window Definition

In ASEAN a “National Single Window” is defined as a SYSTEM (in many cases, it will be
equipped with some physical server systems and associated mechanical facilities) that
enables:
▪ a single submission of data and information
▪ a single and synchronous
CHAPTER 4 processing
CHAPTER- WAREHOUSE ofMANAGEMENT
data and
7 - ASEAN/NATIONAL information
SINGLESYSTEM
WINDOW(WMS)
▪ a single decision making for customs release and clearance
111
ASEAN Political
ASEAN Socio-Cultural
Security Community
Community (ASCC)
(APSC)
CHAPTER
CHAPTER
4 - WAREHOUSE
ASEAN 7 - ASEAN/NATIONAL
MANAGEMENT
SINGLESYSTEM
WINDOW(WMS)
CHAPTER 6 - Economic
ENTERPRISE RESOURCING PLANNING (ERP)
Community AEC Blueprint
(AEC)
NSW
NSW
112
8.2 PURPOSE OF ASEAN-NATIONAL SINGLE WINDOW
• Standardize trade and customs processes,

procedures and related information flows
• Expedite the customs clearance
• Reduce transaction time and costs
• Enhance trade efficiency and4 competitiveness
CHAPTER
CHAPTER- WAREHOUSE
7 - ASEAN/NATIONAL
MANAGEMENT
SINGLESYSTEM
WINDOW(WMS)
• Enhance export competitiveness
• Facilitate the integration of ASEAN into a single
market for goods, services and investments and a
single production base
113
Model of AseanCHAPTER
– CHAPTER
4 - WAREHOUSE
7 - ASEAN/NATIONAL
MANAGEMENT
SINGLESYSTEM
WINDOW(WMS)
National Single CHAPTER 6 - ENTERPRISE RESOURCING PLANNING (ERP)
Window
114
8.3 PURPOSE OF ASEAN-NATIONAL SINGLE WINDOW
Model of Asean – CHAPTER

CHAPTER
4 - WAREHOUSE
7 - ASEAN/NATIONAL
MANAGEMENT
SINGLESYSTEM
WINDOW(WMS)
National Single
Window
115
VNACCS CONCEPT
• Name: VNACCS
• Start: Programmed to start in 2014
• Superintendent: General Department of Vietnam Customs
• Vietnam Customs is operating a system called “e-
Customs” as of 2012 that is a kind of Customs system.
CHAPTER
CHAPTER
4 - WAREHOUSE
7 - ASEAN/NATIONAL
MANAGEMENT
SINGLESYSTEM
WINDOW(WMS)
EXPECTED SERVICES OF VNACCS
• e-Import and e-Export Declarations
• e-Manifest
• e-Certificate of Origin
• e-Permit
• e-Payment (Import Duty)
• e-Office (various bureaucratic procedures)
116
CUSTOMS
Ministry of Customs
▪ Trade VINACCS
▪ Industry
▪ Transport NSW
▪ Public Health CHAPTER
CHAPTER
4 - WAREHOUSE
7 - ASEAN/NATIONAL
MANAGEMENT
SINGLESYSTEM
WINDOW (WMS)
CHAPTER 6 - ENTERPRISE RESOURCING PLANNING(VCIS) Data Base
(ERP)
▪ Justice
▪ Agriculture
▪ Defense
▪ Foreign Affairs
▪ Office of Gov, etc… Trade Related
ASW
Industry
etc
Portal
117

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FD1: FREIGHT LOGISTICS OPERATION

Chapter 2 Overview of Information Technology

Chapter 3 Core Technologies in Logistics: EDI, RFID, GPS

Chapter 4 E-commerce and Cloud Sourcing

Chapter 5 Warehouse Management System - WMS

Chapter 6 Transport Management System - TMS

Chapter 7 Enterprise Resource Planning - ERP

Chapter 8 ASEAN Single Window - ASW

A typical personal computer consists of the following main components:

1.2 Basic hardware components of a computer system

1.2 Major Categories of Computers

1.3. Type of Microcomputer

1.4. Categories of Computer Software

SYSTEM SOFTWARE APPLICATIONS

1.6. System vs Application Software

1.7 Tasks of computing personel

• Input: activity of gathering and capturing raw data

1.9 Components of Information Systems Hệ thống thông tin

1.10 Components of Information Systems

1.11 Levels of managerial decision making

1.12 Information Systems for Manages

1.13 TPS: Transaction Processing Systems

1.14 MIS: Management Information Systems

1.15 DSS: Decision Support Systems

1.18 Business intelligence

1.17. Logistics Information Systems

1.18. Supply Chain Information System

supplier > Manufacturer Distributor

Notes: RM:raw materials

FG: finished goods

po: purchases order

So: Sales Order (phien ban

1.21. Overall Business Processes- Order Fulfillment

1.22. Enterprise Systems Support for Business Processes

Enterprise systems feature a set of integrated software modules and

1.23. The Extended Enterprise

1.24. Value Chain

1.25. The Future Internet-driven Supply Chain

2.1 Key Role of Information

2.2 Goals of Information Technology

2.3 Information Technology

2.1 KEY ROLE OF INFORMATION TECHNOLOGY IN LOGISTICS

Information Technology is an enabler and a competitive tool for Logistics

▪ Process and Operational Abilities.

▪ Provide Supply Chain Visibility.

▪ Time & Cost Saving.

▪ Decision making guidelines.

***Key components of Supply Chain Technology.

Source: Martin Verwijmeren 35

2.2 GOALS OF INFORMATION TECHNOLOGY IN LOGISTICS

2.3 INFORMATION TECHNOLOGY INFRASTRUCTURES

▪ Interface Device: PC, Internet devices, bar-code scanner, RFID Tag

▪ Communications: Means to connect interface devices such as LAN, Intranet, Internet

▪ Databases: Place to store and archive data in an organized manner

Printer File Server

Inter-Organizational Information System (IOIS)

3.1 Electronic Data Interchange

3.2 Value-Added Network

3.4 Radio Frequency Identification Devices (RFID)

3.5 Global Positioning System (GPS)

3.1 ELECTRONIC DATA INTERCHANGE (EDI)

Types of Documents Exchanged by EDI

How Does EDI Work?