IMPACT OF INFORMATION

TECHNOLOGY ON
LOGISTICS

LOGISTICS
DEFINITION
Logistics is the process of strategically
managing the acquisition ,movement
and storage of material ,parts and
finished inventory and the related
information flow through an
organization and its marketing
channels to fulfill orders most cost
effectively
-council of
logistics management ,USA.

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

Supply chain management

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

STEPS OF MARKETING
LOGISTICS PLANNING

Deciding on the companys value

proposition to its customers.
Deciding on the best channel design and
network strategy for reaching the
customer.
Developing operational excellence in sales
forecasting, warehouse management,
transportation management, and materials
management.
Implementing the solution with the best
information system, equipment, policies,
and procedure.

Market logistics task calls for

Integrated logistics system
Material management
Material flow system
Physical distribution

Impact of internet on logistics

Integrated logistics system is assisted by Information
technology.
Information system play a critical role in managing market
logistics ,especially computers, point-of sale, terminals,
uniform production bar codes ,electronic data interchange
and electronic funds transfer.
These developments have shortened the order-cycle time,
reduced clerical labor, reduced the error rate in document,
and provided improved control of operation. They have
enabled companies to make promises such as the product
will be at dock 25at 10:00 a.m. tomorrow. and control this
promise through information.

PORT COMMUNITY SYSTEM

A Port Community System is an

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

Market-logistics objectives
Getting the right goods to the right places
at the right time for the least cost.
For example;

The traffic manager favors rail shipment

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

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

PCS

Optimises, manages and automates

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

PCS

A PCS provides for the electronic

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

PCS

A PCS is therefore pivotal in the

Single Window concept and will
reduce duplication of data input
through efficient electronic exchange
of information

Why choose to have a Port

Community System? The Reason
To reduce inefficiencies in port
business processes To facilitate the
smooth flow of electronic data

PORT 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 transitrelated regulatory requirements. If
information is electronic then
individual data elements should only
be submitted once."

PORT SINGLE WINDOW

ASYCUDA

ASYCUDA refers to the Automated

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

The ASYCUDA Customs management

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

It takes into account the

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

Automation is the core of Customs

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

Automating the declarations forms,

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

Market Logistics Decisions

Four major decisions must be made with
regard to market logistics.
1.
How should order be handled? (Order
processing);
2.
Where should stock be located?
(warehousing);
3.
How much stock should be held?
(inventory);
4.
How should goods be shipped?
(transportation).

Organizational Lessons
1.

2.

3.

Companies should appoint a senior vice president of

logistics to be the single point of contact for all logistical
elements. This executive should be accountable for
logistical performance on both cost customer cost and
customer-satisfaction criteria.
The senior vice president of logistics should hold periodic
meeting with sales and operations people to review
inventory operating costs, and customers services and
satisfaction, as well as to consider market conditions and
whether changes should be made in production
schedules.
New software and system are the key to achieving
competitively superior logistics performance in the future.

Conclusion
Market logistics strategies must be derived
from business strategies, rather than
solely from cost considerations. The
logistics system must be information
intensive and establish electronic links
among all the significant parties .
Finally ,the company should set its logistics
goals to match or exceed competitors
services standard and should involve
members of all relevant teams in the
planning process.