UNIVERSITY OF NAIROBI

SCHOOL OF BUSINESS
COURSE CODE : DPS 306
COURSE UNIT: LOGISTICS AND TRANSPORTATION
MANAGEMENT
GROUP 8
TOPIC: TECHNOLOGY IN LOGISTICS MANAGEMENT
Name Admission

Sheila Otieno D33/47530/2017

Walter Mugunda D33/134869/2019

Mohamud Arab D33/134993/2019

Michelle Wangui D33/135025/2019

Benjamin Mabeya D33/46712/2017

INTRODUCTION TO TECHNOLOGY IN
LOGISTICTICS MANAGEMENT
Logistics management consists of the process of planning,
implementing and controlling the efficient flow of row-materials, work-
in-progress and finished goods and related information from point of
origin to point of consumption, with a view to providing satisfaction to
the customer (Morash &Lynch 2012).
Logistics management activities are inbound and outbound,
transportation management, fleet management, warehousing, material
handling, order fulfilment, logistics network design, inventory
management, supply and demand planning, and management of third-
party logistics services provider
 CONT’
• Technology is a mean to enhance business competitiveness and performance
Technology/Information technology involves studying, designing, creation,
utilization support including managing of computer-Based information
system(CBIS), in particular application of software and hardware in logistics
management.
• Technology and Information technology systems enable firms to work more
efficiently and to maximize productivity and are one of the tools popularly used
by organizations to improve faster communication, electronic storage and
protection of records.
• Firms in the logistics industry should use technology to enhance efficiency in
operations, manage transit time, manage customers and suppliers relationships,
be responsive and enhance communication (Fugate,Mentzer & Stank,, 2010).
Objectives of Technology in logistics Management.

• Increase Efficiency for both inbound and outbound logistics

• Rapid response
• Minimum inventory
• Reduced transportation and logistics cost
• Quality improvement
The relationship between Technology/information
technology and Logistics Management.
Grover et al (2002) argue that integration is fundamental component of
technology that can be used to enhance collaboration and sharing of
ideas to boost efficiency in logistics management. IT creates a platform
for innovation through devising more flexible and dynamic systems to
meet customer needs and to provide value adding goods and service.
Stock and Lambert (2001) explain the Logistics Management an example
of IT that helps companies to improve efficiency and ensure no-time
delivery.
Logistics information System (IS) help organizations to track information
flow within the organization by providing reports on inventory
management and to establish the amount to place.
 Cont.’
Lucas and Introna (2014) maintain that logistics highly depends on the
effectiveness of the top management within the supply chain. Logistics
managers have a responsibility of purchasing goods and ensuring that
these goods are transported to their right destination. To deliver this role,
logistics managers highly depend on advance Information System (IS) to
manage and track items from the manufacturer to the final consumer.
Due to increased volumes and complexity that business face Information
System and other technologies allows a smooth flow of products within
the organization. IT continually comes up with innovation to address the
ever-changing customer needs like finding the right routes for shipments.
 Technologies in Logistics Management.
ELECTRONIC DATA INTERCHANGE (EDI) technology.
EDI is an automated communication devise that allows exchange of
information through electronic means. EDI has improved
communication in particular monitoring logistics ( Lich & Moch 2009)
These technologies are anticipated to have a similar data formatting
and transmission protocols. This kind of technology is used by firms to
integrate logistics functions.
The advantage of this approach is that players within supply chains
can overcome problems through increased information sharing of
actual demand and supply of information.
 CONT”

Electronic Data Interchange seeks to minimize cost and competitive

gain of the organization.
Note: The limitation of this approach is that it’s quite expensive to
install the EDI system. It requires high amount of capita/ investment
and trained employees to manage it.
The diagram below shows how the EDI system integrates all the tasks
from the customer making a request up to when the request is
fulfilled under one system. EDI system enables the Logistics
personnel to monitor the order and till its delivered.
Cont.’
Cont.’ Robotics Technology
Cont.’
Robotics
 Robots, unlike automate machinery, are designed to perform several
jobs at once, making their application in the logistics virtually endless.
This is particularly true of e-commerce operations, which requires a
heightened level of speed and efficiency to meet growth of online
sales. E.g. Amazon set the bar in 2012 when it purchased a monopoly
of Kiva robots, the robots which fulfill ‘one-click’ orders in less than 15
minutes a task that typically takes humans 60-75 minutes to complete
this reduced the company’s operating expenses by about 20 percent.
Cont.’
Drones and Autonomous Trucks
Drones have many promising applications for the logistics industry, most
notably in their predicted ability to coordinate new forms of express
consumer delivery (Mattew 2014).
Drones have the potential applications for the logistics industry, most
notably in their predicted to deliver products, both to dense and congested
areas.
Autonomous truck is a self-driving truck, require no human driver. They rely
on sensors, radars and cameras feed in the computer which in turn controls
the vehicle using skills learned through a massive amount of training and
simulation ( James m. Anderson 2014).
Cont.’
 Mobile Apps (social media) & Internet of things
The growth of new technologies and the internet of Things (IOT) promote
logistics service providers and shippers to increase adoption of mobile
apps. These types of apps exists for inventory management, barcode
scanning, fleet management, shipment tracking, order management,
customer service and more (Christian Wurst, Lucas Graf 2012).
Logistics businesses can pull information and capabilities via an app to
manage capacity and satisfy demand. Freight sharing apps are one of the
prime app grouping that brings significant boost to logistics management.
Cont.’
Transport Management Systems (TMS)
TMS is specialized software for planning, executing and optimizing
the shipment of goods. TMS is a hub of all logistics communication
and processes, including route scheduling and optimization, freight
auditing and payment processing, carrier management and more
(Thorsten Blecker 2006).
TMS application have shifted from the terminal-based installs to
cloud-based platforms, reducing postponements in implementation,
removing bottlenecks from downtime and refining cybersecurity
simultaneously.
Cont.’
Cont.’
Warehouse Management system (WMS)
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.
WMS offers visibility into business, entire inventory and manages
supply chain fulfillment operations from the distribution center to the
store shelf.
The diagram below shows how WMS is a centralized system where you
can manage different warehouse management tasks through a user-
friendly interface.
Cont.’
 CONT’
Enterprise Resource Planning ( ERP)
ERP system is a data base where firms exploit systems of interrelated
application to manage organizational functions, people and services.
ERP provides an integrated overview of the core business functions on
real-time basis with the help of databases maintained with a database.
This aids the organization in monitoring resources and production
capacity of the business (Lich & Moch, 2009)
ERP is an essential organizational tool because it integrates various
systems in the organization and facilitates accuracy of transactions and
production (Patterson 2013)
Technologies in logistics Management
CONT’

 ERP system manages connections to outside stakeholders while

allowing efficient and effective flow of information within the
organization. This enhances sharing of information and decision
making as a result of increased access to information and reduction of
costs.
Technologies in logistics Management
Cont’
E- Procurement
Sambamurthy &Grover (2011) defines e-procurement as utilization of internet
sources to operate transactions involving requisitioning, authoring orders,
receiving and payment of services and product.
E-procurement focuses on local business administrators ( business-to-
business)network system by which firms can easily connect with their supplies in
order to procure goods and services at a cheaper cost.
E-procurement system integrates all levels of the organization and allows an
increase in the spend visibility and control, this enables the finance officers to
match their purchases with purchase orders, receipt and job tickets. It helps to
manage tenders with the help of a website. This leads to increased accessibility to
tenders ( Sanders et al 2013).
Technologies in logistics Management
Cont’
Global Positioning System (GPS)
It is a mobile vehicle tracking system modular in design having two
parts a mobile vehicle unit and fixed base station, the mobile vehicle
unit attached to the vehicle will have a GPS module through which the
vehicle’s position will be monitored via satellite and GSM technology
will be used to transmit that information to the base station.
 The fixed base station will have a GSM module and a web serve.
 The base station allows the client to view his vehicle on a geographic
map.
 CONT’

Swipe cards
Swipe card is similar to credit card in physical nature.
Driver is required to swipe card at pre-determined specified kiosks.
On swiping a slips gets generated which the driver is supposed to
retain as proof of reporting.
The data is made available on a web site which can be accessed by
registered users.
 CONT’
Bar Codes
Bar code gives information of batch number, date and time of
manufacture, source and similar other details.
Bar code scanners are used for reading bar codes.
The scanners scan the bard codes, decode the information and transmit
the same to a computer.
Handheld scanners can be used when picking materials for deliveries to
upgrade records.
Oldest packed first out inventory management can/will be managed
through this.
Cont.’
 Cont.’
Radio Frequency Identification systems (RFID)
• Morash & Lynch (2012) states that RFID is a mode of identification where an
item identification is taken in which the reading and recoding of data is done
using modern technology.
• It has three part technology, comprising a reader, a Trans receiver with a
decoder, and a transponder. The reader emits a radio signal, that activate the
tag and reads and writes data to it.
• As products are shipped, received or stored, the information encoded on a bar
code like tag cab be read and received by the reader which is attached to a
computer as seen in the next slide diagram . RFID us an electronic product code
(EPC) which is unique number that identifies a specific item in the supply chain.
Cont.’
 Role of Technology in Logistics services
Technology has had a transforming role for logistics services in all aspects whether
tracking, visibility or processing.
1. Consumer demand- The rise of the internet has escalated the demands of
patrons and changed the way the entire supply chain worked earlier. From a
prior concept of receiving products at the right place and right time, customers
have shifted to demanding services anytime and at any place. Technology makes
it possible to cater to these surging orders by cutting down latency and delays.
2. Access to cloud software- Previously inaccessible and high expensive software is
now easily accessible by all sizes of enterprise. This has made it possible to make
use of management systems for warehouse, transport, ERPS etc. for effective
communication. This unperturbed data exchange has lead to automated order
picking, shipping and fulfilment.
Cont.’
3. Real-Time Data- Todays population is information driven. Real-time
tracking and location access is enabling the logistics service to become
more transparent. Real-time data also helps in efficiency managing the
supply chain by cutting down on wasteful activities and assists in sticking
to the schedule.
4. Transportation- Self-driven and high load trucks of forklifts have
reduced the human effort and time involved in the movement of cargo to
exceptional scales. Cargo handling by using robots expedites not only the
process but also ensures safe handling of shipments. Technology
advancement is the reason behind the use of specialized transportation
machinery in the warehouse.
Benefits of Technology in Logistics
Management.
• It provides a platform for organization to develop competitiveness in
specialized areas within the logistic infrastructure. However, it is
worthwhile to note that success is based on the way the organization
exploit technology to enhance efficiency in execution of tasks and
increasing accuracy in its operations
• Technology plays a fundamental role in achieving improved efficiency in
managing logistics in the logistics management ,modern technologies
are used in developed nations however in developing countries like
Kenya and others implementation takes long. Implementation of
technology is seen as the way to remain relevant in the market.
Cont.’
• Information saves the firm costs of labour while improving quality and
accuracy. Information technology minimizes labour time utilized on
manual entry for instance when planning to procure and deliver goods and
services. This helps in reducing costs while decreasing errors and
improving the overall customer service.
• Technology allows firms to easily store and access important information,
this assist in creating a record of positioning such as vehicle information.
• Information technology is used by managers as a tool to minimize
inventory and ensure information flow for the purpose of strategic
planning. Managing logistics is concerned with flow of product and
information within stakeholders in supply chain network.
Cont’

• Elimination of some human warehouse operations that reduces cost.

• Improved efficiency and reliability of logistics systems.
• Reduction in order cycle.
• Real- time interaction such that customers and trucking companies
can instantly locate the position of the delivery.
 Challenges of implementing Technology
systems in Logistics Management
• The major challenge include lack of adequate funds to invest in modern
technologies. Firms in the developing economies lack sufficient funds to
invest in modern technologies this prevent them from enjoying the benefits
of IT systems (Lucas 2014)
• The other challenge that hinder implementation of technology and IT is lack
of adequate and skilled personnel to design, program, install, configure and
maintain information technology ( Sanders 2013).
• Lack of training and support programs is also a major challenge that
prevents implementation of Technology. Organizations in the developing
countries have shortage of skills and training which attribute to inadequate
expertise, resistance and inadequate technical support ( Patterson 2013).
Cont.’

• Lack of top management support. This might make it difficult to

implement technology systems in the organization. The top executives
should plan and organize the process of implementing technologies
by setting-up a task force and proving them with the necessary
resources and facilities to facilitate the process of implementation
( Stockdill 2013).
 REFERENCES
Lucas, D. & Introna, (2014). The impact of information technology on logistics, International Journal of
Physical Distribution & Logistics Management, 21
(1)5, 32 - 37
Morash, B. & Lynch, L. (2012). Transport and logistics management, Journal of Operations management, 2(3),
10-12
Atieno, E. O. (2014). Information and communications technology and supply chain performance among
logistics firms in Nairobi, Kenya, Unpublished MBA
Project, University of Nairobi.
Bowersox, J., & Cooper, M. B. (2009). Supply chain logistics management, New York: McGraw-Hill/Irwin.
Council of Supply Chain Management Professionals (2007). Supply chain management and logistics
management definitions, Available at www.csmp.
Org/ Website/ About CSCMP/definitions.asp